Oklahoma’s new liquor laws will require time for permitting, awareness of changes
Q: What do Oklahoma’s alcohol modernization laws mean for citizens and businesses?
A: In 2016 Oklahoma voters approved State Question 792, which amended the Oklahoma Constitution to allow for the sale of wine and full-strength beer in grocery stores, refrigerated beer and other items in liquor stores, and a variety of other changes affecting the regulatory structure of alcohol. The Oklahoma Legislature responded by passing new statutes and the primary regulatory agency overhauled its rules to implement the constitutional amendment. The new laws go into effect on Oct. 1.
Q: What exactly does the new law change and what stays the same?
A: The constitutional amendment, statutes and agency rules change much of the alcohol regulatory structure in Oklahoma. Previously, the Alcoholic Beverage Laws Enforcement (ABLE) Commission regulated full-strength beer, spirits, and wine while the Oklahoma Tax Commission regulated 3.2 percent beer as a food item. When the new laws go into effect, ABLE will regulate all alcohol, which requires many businesses to become familiar with a new agency and its rules. Consumers benefit from these changes because they soon will be able to buy high-strength beer and wine at grocery stores, convenience stores, and pharmacies, and refrigerated beer and wine from liquor stores. Unfortunately, some local beers — those exceeding 8.99 percent alcohol — and most Port wines will be available only in liquor stores. There’s still some uncertainty about specifics, however, because the Oklahoma Legislature has introduced additional bills that would amend the statutes if passed.
Q: What do Oklahoma businesses involved in the production or sale of alcohol need to be aware of from a legal perspective?
A: Grocery stores, convenience stores and pharmacies that currently sell 3.2 percent beer will be required to obtain a permit through ABLE to continue selling beer after the law is in effect. This change, however, allows them to sell full-strength beer and wine. Businesses that intend to continue selling beer this fall need to start planning for the changes now because the permitting process can take some time. To mitigate delays, ABLE created an interim license that allows applicants to buy and stock full-strength beer and wine before the new law goes into effect. Any business selling alcohol also needs to be aware of other requirements including restrictions on the days alcohol can be delivered and sold, payment terms for alcohol and required employee training.
Q: With all these changes in the law, will consumers finally be able to buy a corkscrew, bottle-opener and ice at the liquor store?
A: Yes! The constitutional amendment permits liquor stores to sell items that can be sold at a grocery store or convenience store, but the sale of these items can’t comprise more than 20 percent of the stores monthly sales. Many of the prior restrictions continue in the new laws, for example, prohibitions on licensing felons, quantity restrictions and a permit required for direct shipments of alcohol to your home, a required permit to brew beer for personal use at home, and a permit is still required for most charitable and special events. The numerous legislative bills that have been filed — 24 at present — will refine the modernization laws and hopefully resolve some of the current ambiguity. It’s difficult to say with certainty until the end of legislative session in May exactly how the new laws will affect Oklahomans. This changing regulatory landscape undoubtedly presents challenges, but also offers many opportunities for Oklahoma brewers, vineyards, distributors and small-business owners.