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Prepared by Dawn Romero Watson.
Arnold HB No. 1036
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
ALCOHOLIC BEVERAGES: Provides for the donation of alcoholic beverages to
certain organizations
DIGEST
Abstract: Authorizes the donation of alcoholic beverages for certain events and charitable
organizations and provides for the issuance of temporary permits.
Present law requires alcoholic beverages of high alcoholic content that are given away for
advertising or any other purpose to be taxed.
Proposed law authorizes any person or dealer to donate alcoholic beverages to a licensed
Type A special event or an unlicensed civic, religious, or charitable organization subject to
the payment of any applicable excise taxes.
Present law authorizes the commissioner to issue by regulation temporary permits for a
duration of three consecutive days only and no more than 12 such permits issued to any one
person within a single calendar year to serve alcoholic beverages at fairs, festivals, civic and
fraternal and religious events, Mardi Gras events, and nonprofit functions, and requires fees
for the permits to be provided by regulation.
Proposed law retains present law and creates three types of temporary alcoholic beverage
retail permits.
Proposed law requires Type A permits to be issued only to nonprofit organizations with tax
exempt status under Sections 501(c)(3), 501(c)(6), and 501(c)(8) of the Internal Revenue
Code (IRC), where no transactions exist, whether directly or indirectly, between the licensed
tax exempt organizations and any disqualified person as defined under the IRC, and requires
the applicants to submit all documentation as required in the regulations promulgated in
accordance with the Administrative Procedure Act or upon the request of the commissioner.
Proposed law requires Type B permits to be issued only to nonprofit organizations which are
able to provide written proof of their nonprofit status, but are unable to show written proof
of their tax exempt status under Sections 501(c)(3) and 501(c)(8) of the IRC, and requires
the applicants to submit all documentation as required in the regulations promulgated in
accordance with the Administrative Procedure Act or upon the request of the commissioner.
Proposed law requires Type C permits to be issued to persons holding events where alcoholic
beverages are sold or supplied as part of a general admission or other type fee, but who do
not meet the requirements for Type A or Type B temporary permits, and requires the
applicants to submit all documentation as required in the regulations promulgated in
accordance with the Administrative Procedure Act or upon the request of the commissioner.
Proposed law amends the definition of "vendor" to provide that it does not include any holder
of a Type A or Type B temporary alcoholic beverage permit issued pursuant to proposed law.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 26:352, 793(A)(1), and 932(4) and (10))
Summary of Amendments Adopted by House Page 2 of 2
Prepared by Dawn Romero Watson.
Committee Amendments Proposed by House Committee on Judiciary to the original bill.
1. Authorized nonprofit organizations with tax exempt status under the U.S. Internal
Revenue Code 501(c)(6) to be issued Type A and Type B permits.
2. Excluded holders of Type A and Type B temporary alcoholic beverage permits
from the definition of "vendor".
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Judiciary B to the
reengrossed bill
1. Eliminates nonprofit organizations unable to show proof of tax exempt status
under U.S. Internal Revenue Code 501(c)(6) from eligibility for Type B permits.