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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 1723 By: Marti of the House
and
Rosino of the Senate
COMMITTEE SUBSTITUTE
An Act relating to alcoholic beverages; amending 37A
O.S. 2021, Section 2 -113, as amended by Section 1,
Chapter 42, O.S.L. 2023 (37A O.S. Supp. 2023, Section
2-113), which relates to catering licenses; providing
that a caterer may be issued a storage lice nse;
providing that upon issuance of a license to the on -
premises beer and wine applic ant, the mixed
beverage/caterer combination applicant, or the mixed
beverage applicant, any alcoho lic beverages on the
licensed storage premises may be transferred by the
caterer to the on-premises beer and wine licensee,
the mixed beverage/caterer combina tion licensee, or
the mixed beverage licensee ; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 37A O.S. 2021, Section 2-113, as
amended by Section 1, Chapte r 42, O.S.L. 2023 (37A O.S. Supp. 2023,
Section 2-113), is amended to read as follows:
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Section 2-113. A. 1. A caterer license may be issued to any
person for the purpose of sale, delivery o r distribution of
alcoholic beverages incidental to the sale or distribution of food
on a premises not licensed by the ABLE Commission. For purposes of
this section, “incidental to the sale or distribution of food” means
food sales constituting at least t hirty-five percent (35%) of the
caterer’s total combined annual sales. A caterer license shall not
be issued to a person whose main pu rpose is the sale of alcoholic
beverages.
2. A caterer license may only be issued to those persons that
prepare, sell and distribute food for consumption either on licensed
or unlicensed premises. In order to renew a caterer license, annual
food sales must constitute at least thirty-five percent (35%) of the
caterer’s total combined sales based on the most recent calendar
year. A caterer shall not be required to prepare, sell and
distribute food at every catered event as long as the caterer
satisfies the requirement set forth in this section.
3. Each caterer shall submit an annual sales report containing
revenue attributable to alcoholic beverages, food and all other
revenues attributable to the catering service. The annual sales
report must be submitte d thirty (30) days prior to expiration of the
caterer license on forms prescribed by the ABLE Commission. The
caterer license may not be renewed if the caterer fails to provide
complete or sufficient financial data.
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4. Each caterer shall submit a monthly event report containing
information on all events scheduled for the subsequent month. If an
event is scheduled after th e first day of the month for an event to
occur in the same month , then the caterer shall report that event
within twenty-four (24) hours of scheduling the event or within
twenty-four (24) hours prior to the event, whichever occurs first.
The monthly event report shall be submitted on the first day of each
month.
5. All reports shall be submitted electronically on forms
prescribed by the ABLE Commission. Provided, if the caterer does
not have access to the Internet, then monthly reports must be
submitted by facsimile to the ABLE Commission ’s office in Oklahoma
City, in which case the caterer must retain a copy of the facsimile
confirmation sheet for at least twelve (12) months.
6. Any caterer who fails to submit a monthly report shall have
the caterer license automatically suspended until such time that the
caterer has fully complied with all reporting requirements. Any
caterer whose annual food sales do not exceed thirty-five percent
(35%) of his or her total annual combined sales shall not have the
caterer’s license renewed.
B. The ABLE Commission shall promulgate rules governing the
application for and the issuance of caterer license s.
C. The restrictions and rule s which apply to the sale of mixed
beverages on the premises of a mixed beverage licensee also apply to
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the sale under the authority of a caterer license . Any act which if
done on the premises of a mixed beverage licensee w ould be a ground
for revocation or suspension of the mixed beverage license is a
ground for revocation or suspension of a caterer license.
D. If the premises where the event being cate red is held are
already operating pursuant to another type of license i ssued by the
ABLE Commission, the caterer and the other licensee shall both be
responsible for the actions of the caterer and shall both be subject
to penalties for violations by the ca terer of the Oklahoma Alcoholic
Beverage Control Act and any rules prom ulgated thereto.
E. A caterer licensee may not store alcoholic beverages unless
the licensee has a storage license issue d by the ABLE Commission. A
caterer licensee selling beer and c ider to consumers shall only
purchase such beer and cider from the dist ributor or wholesaler
within the county in which the licensee will be selling the beer and
cider to consumers.
F. A caterer may provide alcoholic beverage sales on the
premises of a person currently applying for an on-premises beer and
wine license, mixed beverage/caterer combination license, or mixed
beverage license, provided the following terms have been satisfied:
1. The caterer shall take reasonab le steps to ensure that the
on-premises beer and wine applicant, mixed beverage/caterer
combination applicant, or mixed beverage applic ant uses only
licensed employees to perform licensable activities while using the
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caterer’s license. The caterer shall use his or her best efforts to
attempt to have a licensed employee on-site supervising the sale of
such caterer’s alcoholic beverages at all times, but the caterer
shall not be disciplined for failing to have a licensed employe e on-
site. The caterer expressly acknowledges that he or she is liable
for all violations of the Oklahoma Alcoholic Beverage Control Act
and rules of the ABLE Commi ssion that are committed by the on-
premises beer and wine applicant, the mixed beverage/caterer
combination applicant, or the mixed beverage applicant and its
employees during this period;
2. The caterer and the on-premises beer and wine applicant, the
mixed beverage/caterer combination applicant, or the mixed beverage
applicant must submit to the ABLE Commission a written agreement
setting forth all the terms of the catering agreement at least
twenty-four (24) hours prior t o the commencement of the catere d
event; and
3. The caterer may not provide alcoho lic beverage sales on the
unlicensed premises of the on-premises beer and wine applicant,
mixed beverage/caterer combination applicant, or the mixed beverage
applicant for more than sixty (60) days, or aft er the applicant’s
license has been denied, whichever occurs first ;
4. The caterer may be issued a storage license to be used to
store any alcoholic beverages purchased pursuant to this subsection
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on the unlicensed premises of the applicant during the period of the
written agreement; and
5. Upon the issuance of a license to the on -premises beer and
wine applicant, the mixed beverage/caterer combination applicant, or
the mixed beverage appli cant, any alcoholic beverages on the
licensed storage premises may be transferred by t he caterer to the
on-premises beer and wine licensee, the mixed beverage/caterer
combination licensee, or the mixed beverage licensee con sistent with
the provisions of Section 2-155 of this title.
G. A caterer may provide alcoh olic beverage services for
temporary public events which have been licensed and approved by the
ABLE Commission.
H. A caterer may provide alcoholic beverage services for a
mixed beverage licensee which holds a live performing arts
presentation and is open to the public not more than one hundred
twenty (120) days per year.
SECTION 2. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof thi s act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED
SUBSTANCES, dated 02/29/2024 - DO PASS, As Amended and Coauthored.