Oklahoma Attorney General Mike Hunter issued an opinion Tuesday that could affect who can obtain licenses to sell alcohol in the state.
The residency requirements for obtaining a Retail Spirits License, or a Wine and Spirits Wholesaler’s License in Oklahoma, are likely to be found in violation of the Commerce Clause in the U.S. Constitution, the opinion states.
Oklahoma currently has a five-year residency requirement for those seeking to obtain a license to sell wine and spirits at the retail or wholesale level. In other words, a liquor store owner has to prove he or she has been a resident for five years prior to applying for the retail license.
Similarly, wholesalers must also have five years in-state before obtaining a wholesale license. Wholesalers are responsible for selling products in bulk to retail locations.
Tennessee had a similar requirement of two years residency for some liquor licenses. That rule was challenged and the U.S. Supreme Court deemed it unconstitutional earlier this year.
Residency requirements are common in this industry across the country, and Oklahoma’s five-year requirement is actually half what it used to be.
The five-year residency rule was implemented as part of State Question 792, which took effect in 2018. Before that, the state required 10 years residency to obtain these licenses.
