SENATE FLOOR VERSION - SB1032 SFLR Page 1 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION February 27, 2023 SENATE BILL NO. 1032 By: Coleman of the Senate and McDugle of the House An Act relating to alcoholic beverages; amending 37A O.S. 2021, Section 2 -113, which relates to the caterer license; providing for the sale of alcoholic beverages to certain licensees ; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 37A O.S. 2021, Section 2-113, is amended to read as follows: Section 2-113. A. 1. A caterer license may be iss ued to any person for the purpose of sale, delivery or dist ribution 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 distribut ion of food” means food sales constituting at least thirty -five percent (35%) of the caterer’s total combined annual sales. A caterer license shall no t be issued to a person whose main pu rpose is the sale of alcoholic beverages. SENATE FLOOR VERSION - SB1032 SFLR Page 2 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. A caterer license may only be issued to those persons that prepare, sell and dist ribute 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 submi t 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 for ms prescribed by the ABLE Commission. The caterer license may not be renewed if the caterer fails to provide complete or sufficient financial data. 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 the firs t day of the month for an event to occur in the same month, then the caterer shall report th at 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 repor t shall be submitted on the first day of each month. SENATE FLOOR VERSION - SB1032 SFLR Page 3 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 5. All reports shall be submitted elec tronically 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 reta in 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 a utomatically suspended until such time that the caterer has fully complied with all reportin g 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 rules which apply to the sale of mixed beverages on the premises of a mixed beverage licensee also apply to 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 cater er license. D. If the premises where the event being catered is held are already operating pursuant to another type of license i ssued by the ABLE Commission, the caterer and the other licensee sha ll both be responsible for the actions of the caterer and s hall both be subject SENATE FLOOR VERSION - SB1032 SFLR Page 4 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 to penalties for violations by the caterer of the Oklahoma Alcoholic Beverage Control Act and any rules prom ulgated thereto. E. A caterer licensee may not store alcoholic beve rages unless the licensee has a storage license issued by t he ABLE Commission. A caterer licensee selling beer and cider to consumers shall only purchase such beer and cider from the dist ributor or wholesaler within the county in which the licensee will b e selling the beer and cider to consumers. F. A caterer may provide alcoholic beverage sales on the premises of a person currently applying for a 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 applicant uses only licensed employees to perform licensable activities while using the caterer’s license. The caterer s hall 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 employee on - site. The caterer expressly acknowledges that he or she is liable for all violations of th e Oklahoma Alcoholic Beverage Control Act and rules of the ABLE Commission that are committed by the on- SENATE FLOOR VERSION - SB1032 SFLR Page 5 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Com mission 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 catered 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 after the applicant ’s license has been denied, whichever occurs first. G. A caterer may provide alcoholic bev erage 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. This act shall become effect ive November 1, 2023. COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE February 27, 2023 - DO PASS