OK
Oklahoma House Bill HB1723

Oklahoma 2024 Regular Session

Oklahoma House Bill HB1723 Compare Versions

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334 BILL NO. 1723 By: Marti and Pittman of the
435 House
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637 and
738
839 Rosino of the Senate
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1345 An Act relating to alcoholic beverages; amending 37A
1446 O.S. 2021, Section 2 -113, as amended by Section 1,
1547 Chapter 42, O.S.L. 2023 (37A O.S. Supp. 2023, Section
1648 2-113), which relates to catering licenses; providing
1749 that a caterer may be issued a storage license;
1850 providing that upon issuance of a license to the on -
1951 premises beer and wine applicant, the mixed
2052 beverage/caterer combination applicant, or the mixed
2153 beverage applicant, any alcoholic beverages on the
2254 licensed storage premises may be transferred by the
2355 caterer to the on-premises beer and wine licensee,
2456 the mixed beverage/caterer combination licensee, or
2557 the mixed beverage licensee; and declaring an
2658 emergency.
2759
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29-SUBJECT: Alcoholic beverages
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3163 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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3364 SECTION 1. AMENDATORY 37A O.S. 2021, Section 2 -113, as
3465 amended by Section 1, Chapter 42, O.S.L. 2023 (37A O.S. Supp. 2023,
3566 Section 2-113), is amended to read as follows:
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3767 Section 2-113. A. 1. A caterer license may be issued to any
3868 person for the purpose of sale, delivery or distribution of
3969 alcoholic beverages incidental to the sale or distribution of food
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4097 on a premises not licens ed by the ABLE Commission. For purposes of
4198 this section, “incidental to the sale or distribution of food” means
4299 food sales constituting at least thirty -five percent (35%) of the
43100 caterer’s total combined annual sales. A caterer license shall not
44101 be issued to a person whose main purpose is the sale of alcoholic
45102 beverages.
46- ENR. H. B. NO. 1723 Page 2
47103 2. A caterer license may only be issued to those persons that
48104 prepare, sell and distribute food for consumption either on licensed
49105 or unlicensed premises. In order to renew a caterer lic ense, annual
50106 food sales must constitute at least thirty-five percent (35%) of the
51107 caterer’s total combined sales based on the most recent calendar
52108 year. A caterer shall not be required to prepare, sell and
53109 distribute food at every catered event as long as the caterer
54110 satisfies the requirement set forth in this section.
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56111 3. Each caterer shall submit an annual sales report containing
57112 revenue attributable to alcoholic beverages, food and all other
58113 revenues attributable to the catering service. The annual sal es
59114 report must be submitted thirty (30) day s prior to expiration of the
60115 caterer license on forms prescribed by the ABLE Commission. The
61116 caterer license may not be renewed if the caterer fails to provide
62117 complete or sufficient financial data.
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64118 4. Each caterer shall submit a monthly event report containing
65119 information on all events scheduled for the subsequent month. If an
66120 event is scheduled after the first day of the month for an event to
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67148 occur in the same month, then the caterer shall report that event
68149 within twenty-four (24) hours of scheduling t he event or within
69150 twenty-four (24) hours prior to the event, whichever occurs first.
70151 The monthly event report shall be submitted on the first day of each
71152 month.
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73153 5. All reports shall be submitted electronically on forms
74154 prescribed by the ABLE Commission. Provided, if the caterer does
75155 not have access to the Internet, then monthly reports must be
76156 submitted by facsimile to the ABLE Commission’s office in Oklahoma
77157 City, in which case the caterer must retain a copy o f the facsimile
78158 confirmation sheet for at l east twelve (12) months.
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80159 6. Any caterer who fails to submit a monthly report shall have
81160 the caterer license automatically suspended until such time that the
82161 caterer has fully complied with all reporting requireme nts. Any
83162 caterer whose annual food sales do not exceed thirty -five percent
84163 (35%) of his or her total annual combined sales shall not have the
85164 caterer’s license renewed.
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87165 B. The ABLE Commission shall promulgate rules governing the
88166 application for and the i ssuance of caterer licenses.
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90167 C. The restrictions and rules which apply to the sale of mixed
91-beverages on the premises of a mixed beverage licensee also apply to ENR. H. B. NO. 1723 Page 3
168+beverages on the premises of a mixed beverage licensee also apply to
92169 the sale under the authority of a caterer license. Any act which if
93170 done on the premises of a mixed beverage licensee would be a ground
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94198 for revocation or suspension of the mixed beverage license is a
95199 ground for revocation or suspension of a caterer license.
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97200 D. If the premises where the event being catered is held are
98201 already operating pursuant to another type of license issued by the
99202 ABLE Commission, the caterer and the other licensee shall both be
100203 responsible for the actions of the caterer and shall both be subject
101204 to penalties for violations by the caterer of the Oklahoma Alcoholic
102205 Beverage Control Act and any rules promulgated thereto.
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104206 E. A caterer licensee may not store alcoholic beverages unless
105207 the licensee has a storage license issued by the ABLE Commission. A
106208 caterer licensee selling beer and cider to consumers shall only
107209 purchase such beer and cider from the distributor or wholes aler
108210 within the county in which the licensee will be selling the beer and
109211 cider to consumers.
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111212 F. A caterer may provide alcoholic beverage sales on the
112213 premises of a person currently applying for an on -premises beer and
113214 wine license, mixed beverage/caterer combination license, or mixed
114215 beverage license, provided the following terms have been satisfied:
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116216 1. The caterer shall take reasonable steps to ensure that the
117217 on-premises beer and wine applicant, mixed beverage /caterer
118218 combination applicant, or mixed be verage applicant uses only
119219 licensed employees to perform licensable activities while using the
120220 caterer’s license. The caterer shall use his or her best efforts to
121221 attempt to have a licensed employee on -site supervising the sale of
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122249 such caterer’s alcoholic beverages at all times, but the caterer
123250 shall not be disciplined for failing to have a licensed employee on -
124251 site. The caterer expressly acknowledges that he or she is liable
125252 for all violations of the Oklahoma Al coholic Beverage Control Act
126253 and rules of the ABLE Commission that are committed by the on -
127254 premises beer and wine applicant, the mixed beverage/caterer
128255 combination applicant, or the mixed beverage applicant and its
129256 employees during this period;
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131257 2. The caterer and the on-premises beer and wine applicant, the
132258 mixed beverage/caterer combination applicant, or the mixed beverage
133259 applicant must submit to the ABLE Commission a written agreement
134260 setting forth all the terms of the catering agreement at least
135261 twenty-four (24) hours prior to the commencement of the catered
136-event; and ENR. H. B. NO. 1723 Page 4
262+event; and
137263 3. The caterer may not provide alcoholic beverage sales on the
138264 unlicensed premises of the on -premises beer and wine applicant,
139265 mixed beverage/caterer combination applicant, or the mixed beverage
140266 applicant for more than sixty (60) days, or after the applicant’s
141267 license has been denied, whichever occurs first ;
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143268 4. The caterer may be issued a storage license to be used to
144269 store any alcoholic beverages purchased pursuant to this subsection
145270 on the unlicensed premises of the applicant d uring the period of the
146271 written agreement; and
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148299 5. Upon the issuance of a license to the on -premises beer and
149300 wine applicant, the mixed beverage/caterer combination applicant, or
150301 the mixed beverage applicant, any alcoholic beverages on the
151302 licensed storage premises may be transferred by the caterer to the
152303 on-premises beer and wine licensee, the mixed beverage/caterer
153304 combination licensee, or the mixed beverage licensee consistent with
154305 the provisions of Section 2-155 of this title.
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156306 G. A caterer may provide alcoholic beverage services for
157307 temporary public events which have been licensed and approved by the
158308 ABLE Commission.
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160309 H. A caterer may provide alcoholic beverage services for a
161310 mixed beverage licensee which holds a live performing arts
162311 presentation and is open to the public not more than one hundred
163312 twenty (120) days per year.
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165313 SECTION 2. It being immediately necessary for the preservation
166314 of the public peace, health or safety, an emergency is hereby
167315 declared to exist, by reason whereof this act shall take effect and
168316 be in full force from and after its passage and approval.
169- ENR. H. B. NO. 1723 Page 5
170-Passed the House of Representativ es the 12th day of March, 2024.
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175- Presiding Officer of the House
176- of Representatives
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180-Passed the Senate the 25th day of April, 2024.
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185- Presiding Officer of the Senate
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188-OFFICE OF THE GOVERNOR
189-Received by the Office of the Governor this _________ ___________
190-day of ___________________, 20_______, at _______ o'clock _______ M.
191-By: _________________________________
192-Approved by the Governor of the State of Oklahoma this _____ ____
193-day of ___________________, 20_______, at _______ o'clock _______ M.
194-
195-
196- _________________________________
197- Governor of the State of Oklahoma
198-
199-OFFICE OF THE SECRETARY OF STATE
200-Received by the Office of the Secretary of State this __________
201-day of ___________________, 20_______, at _______ o'clock _______ M.
202-By: _________________________________
203-
317+COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE
318+March 25, 2024 - DO PASS