The Oklahoma Senate on Tuesday approved legislation requiring holders of special event licenses to carry liability insurance. The measure, Senate Bill 2178, advanced despite concerns raised by some lawmakers regarding fairness and potential impacts on businesses.
Under the bill, licensees would need to maintain general liability insurance, including liquor liability coverage, of $1 million per occurrence and $2 million in aggregate. A special event license allows the holder to sell and distribute alcohol for on-premises consumption at up to four events per year.
In addition, the legislation would require licensed employees serving alcohol at special events to verify that the event has been properly licensed.
Sen. Brent Howard, R-Altus, authored the bill and cited a past incident involving a wedding where an individual left the event, resulting in an accident that led to fatalities. He noted that lawmakers previously attempted to implement required training for individuals involved in special events, but that effort was unsuccessful.
During the discussion, some senators raised concerns about the scope and fairness of the requirement. Sen. Shane Jett, R-Shawnee, said the measure could place responsibility on businesses for individual decisions about alcohol consumption and the actions taken afterward. He questioned whether it was appropriate for the government to require businesses, including small companies and wedding venues, to absorb the added cost.
Similarly, Sen. Dusty Deevers, R-Elgin, questioned whether a uniform insurance mandate could limit participation by small businesses and nonprofit organizations. He raised concerns about whether the requirement could create barriers for certain entities seeking to host or participate in special events.
Howard defended the measure, stating that its intent is to provide compensation to individuals harmed in such incidents. He described liability insurance as a standard cost of doing business and referenced his own experience carrying coverage for his law practice, which he said costs about $2,200 for $2 million in protection.
Howard also emphasized the importance of ensuring that those affected by incidents have access to coverage rather than being left without financial recourse.
The Senate passed the bill by a vote of 32-12. The measure now moves to the Oklahoma House for further consideration.
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