Req. No. 10622 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 60th Legislature (2025) HOUSE BILL 1367 By: Hays AS INTRODUCED An Act relating to alcoholic beverages; providing an Alcoholic Beverages Laws Enforcement Commission (ABLE) licensed establishments are not liable for the actions of an employee in most instances ; defining ABLE licensed establishment; providing procedure for when an ABLE licensed establishment receives an administrative notice of violation for the actions of an employee; providing when an ABL E licensed establishment is liable for actions of an employee; providing when certain repeat actions of an employee can be attributable to an ABLE licensed establishment; providing required proof to attribute liability for the repeat actions of an employee to an ABLE licensed establishment; providing time period for repeat actions by employee to have occurred for liability to be attributed to the ABLE licensed establishment; providing actions by an ABLE licensed establishment that creates a rebuttable presu mption that the ABLE licensed establishment has indirectly encouraged a violation of the law; defining term; providing burden of proof for hearings; providing that ABLE Commission may use other means of proof for establishing that an ABLE licensed establis hment has indirectly encouraged a violation of the law by an employee than what is provided in this act; providing for codification; and providing an effective date . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: Req. No. 10622 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statut es as Section 6-130 of Title 37A, unless there is created a duplication in numbering, reads as follows: A. An establishment with a license issued Oklahoma Alcoholic Beverage Law Enforcement Commission (ABLE ) shall not be liable for actions by an employee of the ABLE licensed establishment , unless the actions of the employee are directly attributable to the ABLE licensed establishment . For the purposes of this section an ABLE licensed establishment shall mean a holder of ABLE issued license or permit, which shall not include an ABLE employee license. An ABLE licensed establishment that receives an administrative notice of a violation by the ABLE Commission for an action of an emp loyee may provide to the ABLE Commission, not later than ten (10) days after receipt of an administrative notice of violation, an affidavit indicating that the ABLE licensed establishment was not attributable to the actions of the employee. At a hearing in which the ABLE licensed establishment claims the employee's actions were not attributable to the ABLE licensed establishment , the ABLE licensed establishment may be required to present additional evidence to support such claim. B. If an employee perform s any of the following actions at a time when the employee does not possess a currently valid ABLE employee license, then the action of the employee does not meet the Req. No. 10622 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 requirements of this act and therefore shall be attributable to the ABLE licensed establi shment: 1. The employee sells, furnishes or gives an alcoholic beverage to: a. a person who is insane or mentally deficient , b. a minor, or c. an intoxicated person. 2. The employee allows consumption of an alcoholic beverage by: a. a person who is insan e or mentally deficient , b. a minor, or c. an intoxicated person. C. Proof by the ABLE Commission that an employee , who holds valid ABLE employee license, performed an action described in paragraphs 1 or 2 of subsection B of this act on three (3) or more occasions within a twelve (12) month period shall create a rebuttable presumption that ABLE licensed establishment is attributable to the actions of the employee by indirectly encouraging a violation of the law within the meaning of this act. The rebuttable presumption is created regardless of whether the employee performing the action described in paragraph 1 or 2 of subsection B of this act on a second or subsequent occasion is the same person. D. For purposes of satisfying the condition precedent set forth in subsection C of this act, proof shall be demonstrated by: Req. No. 10622 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Producing final orders issued by the ABLE commission or district court finding that the ABLE licensed establishment violated this act on two (2) past occasions; and 2. Establishing a prima facie case that an employee of the ABLE licensed establishment violated this act on a third or subsequent occasion. E. For purposes of subsection D of this act, all incidents offered to satisfy the conditio n precedent set forth in subsection C of this act shall be for the same type of offense and shall have occurred within a twelve (12) month period as calculated from the dates the incidents occurred. F. There is a rebuttable presumption that a n ABLE licensed establishment has indirectly encouraged a violation of the law within the meaning of this act if the ABLE Commission presents sufficient proof that a n ABLE licensed establishment fails to meet any of the following: 1. The ABLE licensed establishment requires each employee to present a seller serv er training certificate within fourteen (14) days of their initial employment date. 2. The ABLE licensed establishment requires each employee to maintain a currently valid ABLE employee license. 3. The ABLE licensed establishment adopts written policies and procedures that are designed to prevent, and that affirm a strong commitment by the ABLE licensed establishment to prohibit: Req. No. 10622 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 a. the sale, service, dispensation or delivery of an alcoholic beverage to: (1) a person who is insane or mentally deficient , (2) a minor, or (3) an intoxicated person; and b. the consumption of an alcohol ic beverage by: (1) a person who is insane or mentally deficient , (2) a minor, or (3) an intoxicated person. 4. The ABLE licensed establishment ensures that all employees have read and understood the ABLE licensed establishment's policies and procedures described in paragraph 3 of this subsection. 5. The ABLE licensed establishment maintains records for at least one (1) year after the date employment was terminated that show that each employee read and understood the license or permit holder's current policies and procedures described in paragraph 3 of this subsection. G. For purposes of this act, "employee" includes all persons paid by an ABLE licensed establishment to sell, se rve, dispense, or deliver alcoholic beverages or to immediately manage, direct, supervise or control the sale or service of alcoholic beverages. H. At a hearing in which the ABLE licensed establishment asserts the affirmative defense established under this act, the ABLE Commission may present evidence to establish a rebuttable Req. No. 10622 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 presumption under this act. If the evidence is sufficient to establish a prima facie case, the burden of persuasion in the proceeding shifts to the ABLE licensed establishment to show that it has not indirectly encouraged a violation of the law within the meaning of this act. I. The rebuttable presumptions authorized in this act are not the exclusive means by whic h the ABLE Commission may establish that an ABLE licensed establishmen t has indirectly encouraged a violation of the law within the meaning of act. SECTION 2. This act shall become effective November 1, 2025. 60-1-10622 JL 01/14/25