Carrier Fix Clears the Way for Oklahoma to Become the 45th State to Allow DTC Wine Shipments
May 8, 2018
By Jeff Carroll, Vice President of Product and Marketing
In the 2016 election, Oklahoma voters approved a ballot measure by a margin of 66% to 34% that would make Oklahoma the 45th state available to direct shipments of wine by wineries. Certain provisions of the ballot measure, however, put the October 1st, 2018 effective date in doubt as wineries and common carriers assessed the viability of the new law. With the passage of some “fix-it” bills, including Senate Bill 1537, which was passed and signed by the Governor on April 25th, those concerns are mitigated and Oklahoma looks set to open on October 1st as originally planned.
Oklahoma DTC Shipping Requirements
With the SB 1537 changes included, the final provisions of the new law will look pretty familiar to wineries that are shipping to other states. Wineries will be required to:
- Obtain a Direct Wine Shipper’s Permit from the Oklahoma ABLE Commission for $300. Wineries must show proof that they are licensed as a wine producer in their state in order to obtain the permit.
- Renew the Direct Wine Shipper’s Permit annually for $150.
- Ship less than 6 cases of wine per year to any Oklahoma consumer.
- Report to the ABLE Commission annually sales made in the previous year.
- Not ship wine that is intended for resale (personal use only).
- Require the consumer to verify, by electronic means or otherwise, that the consumer is at least 21 years of age.
- Require that the common carrier to obtain an adult signature at the time of delivery.
- Pay all taxes to the Oklahoma Tax Commission as if the sale were made at the location of the delivery.
Other provisions of the new law require that:
- Residents are prohibited more than 30 cases of wine per year across all Direct Wine Shippers.
- Common Carriers like FedEx and UPS must report to the ABLE Commission quarterly the for each package delivered the name and business address of the company that made the sale, the weight of the package, the tracking number, and the date of delivery.
Problematic Provisions Amended
The passage of SB 1537 was key to making Oklahoma’s new law workable for both wineries and common carriers. For common carriers, the ballot measure had required that “at all times while such alcoholic beverages are in transit have in the possession of the driver or operator of the transporting carrier or vehicle the invoice, bill of lading, manifest or other document describing such alcoholic beverages being transported”. For companies like FedEx and UPS, that requirement for each driver to keep invoices or bills of lading for each package was problematic. SB 1537 strikes that entire paragraph from the law. SB 1537 also strikes a problematic section dealing with escalating penalties and liability for the common carriers.
The ballot measure also included a prohibition on shipping wines that were “otherwise available in Oklahoma” as well as a requirement that each consumer obtained a permit prior to receiving direct shipments. Both requirements are removed in the final version of the law.
Even though the license application forms are not available yet, Compli customers can now submit a task request for obtaining an Oklahoma DTC license in eCompli. Submit your request now to get your space in line and be first to get your license when the forms become available! As always, if you have any questions, or if you’re not yet a Compli client but want to explore shipping to Oklahoma, please contact us.