STATE OF OKLAHOMA

2nd Session of the 52nd Legislature (2010)

HOUSE BILL 2348	By:	Schwartz

AS INTRODUCED

An Act relating to intoxicating liquors; amending 37 O.S. 2001, Sections 505 and 554, which relate to manufacturing alcoholic beverages; expanding certain exceptions to include beer; and declaring an emergency.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     37 O.S. 2001, Section 505, is amended to read as follows:
Section 505.  A.  No person shall manufacture, rectify, sell, possess, store, import into or export from this state, transport, or deliver any alcoholic beverage except as specifically provided in the Oklahoma Alcoholic Beverage Control Act.  Provided, that nothing herein shall prevent the possession and transportation of alcoholic beverages for the personal use of the possessor, his family and guests, so long as the Oklahoma excise tax has been paid thereon, except for beer.  Provided, that nothing herein shall prevent the making of beer, cider or of wine, not to exceed two hundred (200) gallons in any one (1) year pursuant to a license first obtained from the Alcoholic Beverage Laws Enforcement Commission, by simple fermentation and without distillation, if made solely for the use of the maker, his family and guests.
B.  1.  Any duly licensed physician or dentist may possess and use alcoholic beverages in the strict practice of his profession and any hospital or other institution caring for sick and diseased persons may possess and use alcoholic beverages for the treatment of bona fide patients of such hospital or institution.  Any drugstore employing a licensed pharmacist may possess and use alcoholic beverages in the preparation of prescriptions of duly licensed physicians.
2.  The possession, transportation and dispensation of wine by any authorized representative of any church for the conducting of a bona fide rite or religious ceremony conducted by such church shall not be prohibited by the Oklahoma Alcoholic Beverage Control Act; nor shall said act prevent the sale, shipping or delivery of sacramental wine by any person holding a sacramental wine supplier license issued pursuant to the Oklahoma Alcoholic Beverage Control Act to any religious corporation or society of this state holding a valid exemption from taxation issued pursuant to Section 501(a) of the Internal Revenue Code, 1954, and listed as an exempt organization in Section 501(c)(3) of the Internal Revenue Code, 1954, of the United States, as amended.
3.  Provided further, that nothing in the Oklahoma Alcoholic Beverage Control Act shall prevent the possession, transportation and sale of alcoholic beverages, including beer as defined by Section 506 of this title and beer containing not more than three and two-tenths percent (3.2%) of alcohol by weight, within military reservations and in accordance with the laws, rules and regulations governing such military reservations, provided that the Oklahoma excise tax has been paid on spirits and wines.
C.  1.  Except as otherwise authorized by law, it is unlawful for any manufacturer, wholesaler or retailer of alcoholic beverages, located and doing business from outside this state, to make retail sales of alcoholic beverages to purchasers located in this state or to ship alcoholic beverages sold at retail to persons located in this state.  Any person who engages in the sale or shipping of alcoholic beverages in violation of the provisions of this subsection on or after the effective date of Section 20.1 of Title 21 of the Oklahoma Statutes, upon conviction, shall be guilty of a Schedule G felony if the sale or delivery is made to a person under twenty-one (21) years of age or misdemeanor if the sale or delivery is made to a person twenty-one (21) years of age or older.  Any person who engages in the sale or shipping of alcoholic beverages in violation of the provisions of this subsection before the effective date of Section 20.1 of Title 21 of the Oklahoma Statutes shall be guilty of a felony punishable by imprisonment for not more than five (5) years, if the sale or delivery is made to a person under twenty-one (21) years of age, or a misdemeanor, if the sale or delivery is made to a person twenty-one (21) years of age or older.
2.  The fine for a violation of this subsection shall be not more than Five Thousand Dollars ($5,000.00).
3.  In addition, if such person holds a license issued by the Oklahoma Alcoholic Beverage Laws Enforcement Commission, the license shall be revoked pursuant to Section 528 of this title.
SECTION 2.     AMENDATORY     37 O.S. 2001, Section 554, is amended to read as follows:
Section 554.  A.  The excise tax levied by Section 553 of this title shall not apply to:
1.  Alcohol used exclusively for industrial purposes by the holder of an industrial license;
2.  Alcohol lawfully withdrawn and used free of tax under a tax‑free permit issued by the United States government;
3.  Alcoholic beverages used exclusively by licensed physicians and dentists in the bona fide practice of their professions or by licensed pharmacists in compounding prescriptions;
4.  Beer, cider and wine made for personal use, as provided in Section 505 of this title;
5.  Wine used exclusively for sacramental purposes in bona fide religious ceremonies; and
6.  Alcoholic beverages, not exceeding one (1) liter, imported into this state by the possessor for his own personal use.
B.  As a condition precedent to the allowance of any exemption authorized by subsection A of this section:
1.  Where a license or permit is required by the Oklahoma Alcoholic Beverage Control Act, for such use, the person claiming any such exemption must have obtained from the Alcoholic Beverage Laws Enforcement Commission the license or permit authorizing such exempt use; and
2.  There must be furnished such proof of the exclusive use for such exempt purposes as the Oklahoma Tax Commission may require.
SECTION 3.  It being immediately necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, by reason whereof this resolution shall take effect and be in full force from and after its passage and approval.

52-2-8670	CJB	12/22/09