Okla. Stat. tit. 37A, § 37A-2-157: Winery self-distribution - Report to Commission on

sales - Notice of exceeding production limit – Fines.

A. Every winemaker or small farm winery electing to directly

sell its wines to retailers, mixed beverage licensees, beer and wine

licensees, and restaurants must obtain a winery self-distribution

license and pay the applicable license fee and shall register its

products and post its prices with the state in the same manner

required of the holder of a nonresident seller license.

B. Every winemaker or small farm winery electing to directly

sell its wines to retailers, mixed beverage licensees, beer and wine

licensees, and restaurants shall report all sales to retail package

stores, mixed beverage licensees, beer and wine licensees, and

restaurants in this state to the ABLE Commission and to the Oklahoma

Tax Commission at least monthly, or in accordance with such rules as

the ABLE Commission shall promulgate and shall pay to the Tax

Commission all excise and other taxes imposed by this state upon

such wine in the same manner required of the holder of a nonresident

seller license.

C. Any self-distributing winemaker within or without this state

who shall, in any calendar year, exceed the production volume limit

provided for in subsection B of Section 2-105 of this title, shall

immediately notify the ABLE Commission of such fact and shall

thereafter have the option to sell the wines they produce to every

licensed wholesale distributor who desires to purchase the same, on

the same price basis and without discrimination, and shall

thereafter be allowed to sell such beverages only to such licensed

wholesale distributors or cease to sell its products in this state.

D. All winemakers who conduct business in this state shall be

prohibited from creating, forming or participating in any kind of a

cooperative or pooled transportation or distribution arrangement.

E. Any licensed winemaker or winery that sells or distributes

its wine directly to a retailer, mixed beverage licensee, beer and

wine licensee or restaurant in this state after having exceeded the

production volume limit provided for in subsection B of Section 2-

105 of this title in any calendar year shall be subject to a fine of

Ten Thousand Dollars ($10,000.00). In addition, if the violation is

a second or subsequent violation, the winemaker or winery shall not

be allowed to transport wine to a retail package store or restaurant

for three (3) years from the date of the second or subsequent

violation.

F. If Section 2 of Article XXVIIIA of the Oklahoma Constitution

is ruled to be unconstitutional by a court of competent

jurisdiction, then any licensed winemaker or winery that then

continues to sell or distribute its wine directly to a retail

package store, mixed beverage licensee, beer and wine licensee or

restaurant in this state shall be subject to a fine of Ten Thousand

Dollars ($10,000.00) per violation.