Oliver v. Oklahoma Alcoholic Beverage Control Board

1961 OK 9, 359 P.2d 183, 1961 Okla. LEXIS 299
CourtSupreme Court of Oklahoma
DecidedJanuary 24, 1961
Docket39076
StatusPublished
Cited by25 cases

This text of 1961 OK 9 (Oliver v. Oklahoma Alcoholic Beverage Control Board) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oliver v. Oklahoma Alcoholic Beverage Control Board, 1961 OK 9, 359 P.2d 183, 1961 Okla. LEXIS 299 (Okla. 1961).

Opinion

WILLIAMS, Chief Justice.

This is an original proceeding upon an application for a writ of prohibition to prevent enforcement of a regulation promulgated by the Oklahoma Alcoholic Beverage Control Board, hereinafter referred to as “The Board”, such regulation fixing the minimum markup of retailer’s prices on alcoholic beverages sold within the city of Tulsa, Oklahoma.

On March 7, 1960, The Board’s director made the following report to The Board:

“Director’s Report to The Oklahoma Alcoholic Beverage Control Board of Hearing On Retail Dealers’ Petition.
“Gentlemen :
“Pursuant to a petition filed with The Board on the 13th day of January, 1960, I caused Notice of a Public Hearing to be given in the City of Tulsa, Tulsa County, Oklahoma, by publication in the Tulsa Daily Legal News, a legal newspaper published and of general circulation in said City, for a period of ten (10) days prior to February 18, 1960, all as required by Rule No. 11 adopted by The Board, at which hearing on February 18, 1960, numerous witnesses gave testimony under oath, a full, true, and correct transcript of such testimony being hereto attached and made a part hereof.
“After having heard the testimony, studied the transcript thereof and the exhibits introduced, I make the following finding of fact:
“ T. That there exists in the City of Tulsa, Oklahoma, at this time an unstable, chaotic, abnormal and unusual situation insofar as the sale at retail of alcoholic 'beverages is con- , cerned.
“ ‘2. That bargain prices ranging to below actual cost, loss leader sales, and similar sales promotion schemes exist in many stores to such an extent that the purpose of the Oklahoma *185 Alcoholic Beverage Control Act to foster temperance, to protect the Tiealth and welfare of the people of this State, to discourage any increase in the consumption of alcoholic liquors, .and to encourage obedience and re•spect to the law are thereby defeated.
“ ‘3. That these extremely low ■prices are available not only to law ■abiding citizens hut to bootleggers, and •are thus enabling bootleggers to compete with, and in many instances ■undersell, licensed retail dealers who •use a national average retail markup in the City of Tulsa and in nearby ■cities and towns, and, at the same time, ■make substantially the same percentage of profit per bottle as the licensed ■retailer.’ ”
******
"Recommendation
“I therefore, recommend to the ■Oklahoma Alcoholic Beverage Control Board that the retail price of all alcoholic beverages in the City of Tulsa, ■Oklahoma, be stabilized by prohibiting any and all retailers from selling by the bottle or in case lot, at a markup of less than fifteen (15%) percent above cost of any and all types of alcoholic beverages sold by any such dealer from and after this date and to remain in effect for a period of ninety (90) days.
"By taking this action, it is my opinion that The Board would thereby help take the bootlegger out of competition with our licensed retail stores; that such action would foster temperance, encourage respect and obedience to the law and prevent undue increase in the sale and consumption of all alcoholic beverages.
“Dated this 7th day of March, 1960.
“/s/ Roy P. Parham,
“Roy P. Parham, Director.”

On March 21, 1960, at a special called meeting of the Oklahoma Alcoholic Beverage Control Board held at Bartlesville, Oklahoma, the following action was taken:

“The Board adopted the recommendations of the Director, Roy P. Parham, and approved a 15% markup for the City of Tulsa effective Monday, March 28, 1960, to be in full force and effect for a 90 day period in accordance with the recommendation (Sec. 26, Art. 3).”

Petitioners and the Intervenors, holders of retail licenses and owners of retail liquor stores, in Tulsa, Oklahoma, have applied to this court for a writ of prohibition against The Board to prevent the enforcement of such regulation by The Board.

The amendment to The Oklahoma Constitution adopted April 7, 1959, Art. 27, provides in part as follows:

“There is hereby created The Oklahoma Alcoholic Beverage Control Board, * * *.
“The Board shall have such power and authority to enforce said rules and regulations as may be prescribed by the Legislature.”
⅜ * * * 5j< *
“Section 3. The Legislature shall enact laws providing for the strict regulation, control, licensing, and taxation of the manufacture, sale, distribution, possession, and transportation of alcoholic beverage, consistent with the provisions of this Amendment. * * * »

It is unnecessary at this time to determine exactly the power vested in The Board by this amendment except to note that the greatest extent of such constitutional authority is to put into effect and operation the acts of the Legislature regulating alcoholic beverages; it implies the exercise of executive or police power. This amendment to the Constitution vests no power in The Board except to administer and effect such laws as may be adopted by the Legislature.

Although the Legislature cannot decrease The Board’s constitutional powers, it may increase such authority and delegate additional powers to such board. See 73 *186 C.J.S. Public Administrative Bodies and Procedure § 34.

In vitalizing the above constitutional amendment, the Legislature enacted the “Oklahoma Alcoholic Beverage Control Act”, Sess.Laws 1959, Pgs. 141-172, 399, 37 O.S.1959 Supp. §§ 501 to 567, the pertinent provisions of which are as follows:

“Section 3 (37 O.S.1959 Supp. § 503):
“This Act shall be deemed an exercise of the police power of the State of Oklahoma for the protection of the welfare, health, peace, temperance and safety of the people of the State, and all the provisions hereof shall be construed for the accomplishment of that purpose. * * * ”

Section 14 (37 O.S.Supp.1959 § 514):

“The Board shall have the following powers and duties:

“1. To supervise, inspect, and regulate every phase of the business of * * * selling, * * * all alcoholic beverages which shall be necessary and proper to carry out the purpose of this Act;
“2. To promulgate rules and regulations, in the manner herein provided, to carry out the purposes of this Act;
“13. To exercise all other powers and duties conferred by this Act, and all powers incidental, convenient or necessary to enable it to administer or carry out the provisions of this Act.”

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Bluebook (online)
1961 OK 9, 359 P.2d 183, 1961 Okla. LEXIS 299, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oliver-v-oklahoma-alcoholic-beverage-control-board-okla-1961.