HLS 18RS-677 ORIGINAL 2018 Regular Session HOUSE BILL NO. 285 BY REPRESENTATIVE STEFANSKI ALCOHOLIC BEVERAGES: Provides relative to the delivery of alcoholic beverages 1 AN ACT 2To enact R.S. 26:153 and 307, relative to the delivery of alcoholic beverages of high and 3 low alcoholic content; to authorize the delivery of alcoholic beverages under certain 4 conditions by certain retail dealers; to provide for contractual agreements between 5 a retail dealer and third-party; to provide for the delivery of alcoholic beverages by 6 a third party; to provide for delivery restrictions; to provide for recordkeeping; to 7 provide for advertisements associated with the sale and delivery of alcoholic 8 beverages; to provide for fees; to provide for liability; to provide for applicability; 9 and to provide for related matters. 10Be it enacted by the Legislature of Louisiana: 11 Section 1. R.S. 26:153 and 307 are hereby enacted to read as follows: 12 §153. Delivery services of certain retail dealers; third-party agreements; 13 requirements; limitations 14 A. Notwithstanding any provision of law to the contrary, a retail dealer 15 possessing a valid permit issued pursuant to this Chapter may deliver alcoholic 16 beverages to customers within this state if, prior to offering delivery services, the 17 retail dealer submits written notification to the commissioner of its intent to provide 18 alcoholic beverage delivery services along with a sworn affidavit acknowledging that 19 the retail dealer understands the provisions of this Section. Page 1 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-677 ORIGINAL HB NO. 285 1 B. A retail dealer providing alcohol beverage delivery services pursuant to 2 this Section shall: 3 (1) Deliver only alcoholic beverages purchased from a wholesale dealer 4 licensed pursuant to this Chapter. 5 (2) Deliver only alcoholic beverages intended for personal consumption and 6 delivered in a sealed container. The delivery of an "open alcoholic beverage 7 container" as defined in R.S. 32:300 is prohibited. 8 (3) Deliver only on the days and during the hours a retail dealer is authorized 9 to sell or serve alcoholic beverages. 10 (4) Deliver only in those areas where the sale of alcoholic beverages is 11 permitted. Delivery of alcoholic beverages in an area where the sale of alcoholic 12 beverages has been prohibited by a referendum vote is prohibited. 13 C.(1) A retail dealer may charge a reasonable delivery fee and may receive 14 orders and accept payment in person at the licensed premises, via telephone, via the 15 internet, or through a mobile application or similar technology. 16 (2) At the time of delivery of alcoholic beverages, a retail dealer's delivery 17 agent shall verify the recipient's date of birth, that the recipient is twenty-one years 18 of age or older, and obtain the recipient's signature. A retail dealer's delivery agent 19 shall refuse delivery and return the alcoholic beverages to the licensed premises if: 20 (a) The recipient does not produce a valid and current form of identification 21 as provided in R.S. 26:90(A)(1). 22 (b) The recipient is intoxicated. 23 (c) There is reason to doubt the authenticity or correctness of the recipient's 24 identification. 25 (d) The recipient refuses to sign for the receipt of the delivery. 26 D. A retail dealer shall keep a record of all deliveries of alcoholic beverages 27 and retain such records for two years from the date of the delivery. The retail dealer 28 shall make such records available to the commissioner of the office of alcohol and Page 2 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-677 ORIGINAL HB NO. 285 1 tobacco control upon request for the purpose of investigating and enforcing the 2 provisions of this Title. The record of each delivery shall include: 3 (1) The retail dealer's name, address, and permit number. 4 (2) The name of the person who placed the order and the date, time, and 5 method of the order. 6 (3) The name of the delivery agent and the date, time, and address of the 7 delivery. 8 (4) The type, brand, and quantity of each alcoholic beverage delivered. 9 (5) The name, date of birth, and signature of the person who received the 10 delivery. 11 E.(1) Notwithstanding any provision of law to the contrary, a retail dealer 12 providing alcoholic beverage delivery services may enter into a written agreement 13 with a third party for the use of an internet or mobile application or similar 14 technology platform to facilitate the sale of alcoholic beverages for delivery to 15 consumers for personal consumption within this state and the third party may deliver 16 alcoholic beverages to the customer on behalf of the retail dealer if all of the 17 following requirements are met: 18 (a) Prior to a third party taking any action on its behalf, a retail dealer 19 provides written notification to the commissioner of the office of alcohol and 20 tobacco control of its intent to utilize the services of a third party to facilitate the sale 21 of alcoholic beverages for delivery and the delivery of alcoholic beverages. The 22 notification shall include the legal name, registered trade name, physical address, and 23 mailing address of the third party. 24 (b) The third party is properly registered and authorized to conduct business 25 in Louisiana. 26 (c) The third party does not hold a Louisiana alcoholic beverage permit of 27 any class or type. Page 3 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-677 ORIGINAL HB NO. 285 1 (d) The retail dealer's registered trade name is displayed on all websites, 2 mobile applications or similar technology, and advertisements associated with the 3 sale and delivery of a retail dealer's alcoholic beverage inventory. 4 (2) A retail dealer may pay a third party a fee for its services and a third party 5 may charge a reasonable delivery fee for orders delivered by the third party. A third 6 party may act as an agent of a retail dealer in the collection of payments from the 7 sale of alcoholic beverages, but the full amount of each order must be handled in a 8 manner that gives the retail dealer control over the ultimate receipt of the payment 9 from the consumer. 10 (3) A third party shall comply with the provisions of Subsections B and C of 11 this Section when delivering alcoholic beverages on behalf of a retail dealer. 12 (a) A retail dealer shall be solely responsible for all unlawful deliveries of 13 alcoholic beverages and all violations of this Title resulting from the actions of a 14 third party taken on behalf of a retail dealer. 15 (b) The alcoholic beverages of all deliveries refused by a third party shall be 16 returned to the retail dealer. 17 (4) A retail dealer shall manage and control the sale of alcoholic beverages. 18 Such responsibilities shall include, but not be limited to: 19 (a) Determine the alcoholic beverages to be offered for sale through a third 20 party's internet or mobile application platform or similar technology. 21 (b) Determine the price at which alcoholic beverages are offered for sale or 22 sold through a third party's internet or mobile application platform or similar 23 technology. 24 (c) Accept or reject all orders placed for alcoholic beverages through a third 25 party's internet or mobile application platform or similar technology. 26 (d) Collect and remit all applicable state and local sales taxes. 27 * * * 28 §307. Delivery services of certain retail dealers; third-party agreements; 29 requirements; limitations Page 4 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-677 ORIGINAL HB NO. 285 1 A. Notwithstanding any provision of law to the contrary, retail dealer 2 possessing a valid permit issued pursuant to this Chapter may deliver alcoholic 3 beverages to customers within this state if prior to offering delivery services, the 4 retail dealer submits written notification to the commissioner of its intent to provide 5 alcoholic beverage delivery services along with a sworn affidavit acknowledging that 6 the retail dealer understands the provisions of this Section. 7 B. A retail dealer providing alcoholic beverage delivery services pursuant to 8 this Section shall: 9 (1) Deliver only alcoholic beverages purchased from a wholesale dealer 10 licensed pursuant to this Chapter. 11 (2) Deliver only alcoholic beverages intended for personal consumption and 12 delivered in a sealed container. The delivery of an "open alcoholic beverage 13 container" as defined in R.S. 32:300 is prohibited. 14 (3) Deliver only on the days and during the hours a retail dealer is authorized 15 to sell or serve alcoholic beverages. 16 (4) Deliver only in those areas where the sale of alcoholic beverages is 17 permitted. Delivery of alcoholic beverages in an area where the sale of alcoholic 18 beverages has been prohibited by a referendum vote is prohibited. 19 C.(1) A retail dealer may charge a reasonable delivery fee and may receive 20 orders and accept payment in person at the licensed premises, via telephone, via the 21 internet, or through a mobile application or similar technology. 22 (2) At the time of delivery of alcoholic beverages, a retail dealer's delivery 23 agent shall verify the recipient's date of birth, that the recipient is twenty-one years 24 of age or older, and obtain the recipient's signature. A retail dealer's delivery agent 25 shall refuse delivery and return the alcoholic beverages to the licensed premises if: 26 (a) The recipient does not produce a valid and current form of identification 27 as provided in R.S. 26:90(A)(1). 28 (b) The recipient is intoxicated. Page 5 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-677 ORIGINAL HB NO. 285 1 (c) There is reason to doubt the authenticity or correctness of the recipient's 2 identification. 3 (d) The recipient refuses to sign for the receipt of the delivery. 4 D. A retail dealer shall keep a record of all deliveries of alcoholic beverages 5 and retain such records for two years from the date of the delivery. The retail dealer 6 shall make such records available to the commissioner of the office of alcohol and 7 tobacco control upon request for the purpose of investigating and enforcing the 8 provisions of this Title. The record of each delivery shall include: 9 (1) The retail dealer's name, address, and permit number. 10 (2) The name of the person who placed the order and the date, time, and 11 method of the order. 12 (3) The name of the delivery agent and the date, time, and address of the 13 delivery. 14 (4) The type, brand, and quantity of each alcoholic beverage delivered. 15 (5) The name, date of birth, and signature of the person who received the 16 delivery. 17 E.(1) Notwithstanding any provision of law to the contrary, a retail dealer 18 providing alcoholic beverage delivery services may enter into a written agreement 19 with a third party for the use of an internet or mobile application or similar 20 technology platform to facilitate the sale of alcoholic beverages for delivery to 21 consumers for personal consumption within this state and the third party may deliver 22 alcoholic beverages to the customer on behalf of the retail dealer if all of the 23 following requirements are met: 24 (a) Prior to a third party taking any action on its behalf, a retail dealer 25 provides written notification to the commissioner of the office of alcohol and 26 tobacco control of its intent to utilize the services of a third party to facilitate the sale 27 of alcoholic beverages for delivery and the delivery of alcoholic beverages. The 28 notification shall include the legal name, registered trade name, physical address, and 29 mailing address of the third party. Page 6 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-677 ORIGINAL HB NO. 285 1 (b) The third party is properly registered and authorized to conduct business 2 in Louisiana. 3 (c) The third party does not hold a Louisiana alcoholic beverage permit of 4 any class or type. 5 (d) The retail dealer's registered trade name is displayed on all websites, 6 mobile applications or similar technology, and advertisements associated with the 7 sale and delivery of a retail dealer's alcoholic beverage inventory. 8 (2) A retail dealer may pay a third party a fee for its services and a third party 9 may charge a reasonable delivery fee for orders delivered by the third party. A third 10 party may act as an agent of a retail dealer in the collection of payments from the 11 sale of alcoholic beverages, but the full amount of each order must be handled in a 12 manner that gives the retail dealer control over the ultimate receipt of the payment 13 from the consumer. 14 (3) A third party shall comply with the provisions of Subsections B and C of 15 this Section when delivering alcoholic beverages on behalf of a retail dealer. 16 (a) A retail dealer shall be solely responsible for all unlawful deliveries of 17 alcoholic beverages and all violations of this Title resulting from the actions of a 18 third party taken on behalf of a retail dealer. 19 (b) The alcoholic beverages of all deliveries refused by a third party shall be 20 returned to the retail dealer. 21 (4) A retail dealer shall manage and control the sale of alcoholic beverages. 22 Such responsibilities shall include, but not be limited to: 23 (a) Determine the alcoholic beverages to be offered for sale through a third 24 party's internet or mobile application platform or similar technology. 25 (b) Determine the price at which alcoholic beverages are offered for sale or 26 sold through a third party's internet or mobile application platform or similar 27 technology. 28 (c) Accept or reject all orders placed for alcoholic beverages through a third 29 party's internet or mobile application platform or similar technology. Page 7 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-677 ORIGINAL HB NO. 285 1 (d) Collect and remit all applicable state and local sales taxes. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HB 285 Original 2018 Regular Session Stefanski Abstract: Permits the sale and delivery of alcoholic beverages beyond the licensed premises, outlines the requirements and criteria retail dealers must follow in order to deliver alcoholic beverages, and authorizes the use of a third-party facilitator for the delivery of alcoholic beverages. Proposed law provides that retail dealers of beverages of low and high alcoholic content may provide delivery services by submitting to the commissioner of the office of alcohol and tobacco control ("the commissioner") a written notification of the dealer's intent to provide alcohol delivery services and a sworn affidavit acknowledging an understanding of the relevant provisions of law. Proposed law provides the following restrictions on a retail dealer's alcohol delivery services: (1)Only alcohol purchased from a wholesaler licensed in Louisiana may be offered for delivery. (2)Only alcoholic beverages intended for personal consumption and in a sealed container may be delivered. (3)Deliveries can only be made on days and during the hours a retail dealer is authorized to serve or sell alcoholic beverages. (4)Deliveries cannot be made in an area where the sale of alcoholic beverages has been prohibited by a referendum vote. Proposed law allows a retail dealer to charge a reasonable fee for delivery and to accept orders at the licensed premises, via telephone, online, or through a mobile application. Proposed law requires the recipient of all alcoholic beverages deliveries to be 21 years old or older and to sign for the alcoholic beverage delivery. Proposed law requires a retail dealer's delivery agent to refuse delivery and return the alcoholic beverages to the licensed premises if: (1)The recipient does not produce valid identification verifying he is 21 years old or older. (2)The recipient is intoxicated. (3)There is reason to doubt the authenticity of the recipient's identification. (4)The recipient refuses to sign for the delivery. Proposed law requires the retail dealer to keep a record of each delivery of alcoholic beverages for at least two years from the date of delivery. Further, the retail dealer must make the records available to the commissioner upon request. Page 8 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 18RS-677 ORIGINAL HB NO. 285 Proposed law allows a retail dealer to enter into a written agreement with a third party for the sale of alcoholic beverages through the internet or mobile application platform and the delivery of alcoholic beverages by submitting written notification to the commissioner of its intent to utilize the services of a third party. Proposed law places the following restrictions on the third party entities a retail dealer may contract with: (1)The third party must be registered and authorized to do business in this state. (2)The third party cannot hold a Louisiana alcoholic beverage permit of any class or type. (3)The third party display the retail dealer's registered trade name on all websites, mobile applications, and advertisements associated with the sale and delivery of the alcoholic beverages. Proposed law allows a retail dealer to pay the third party a fee for its services and further allows the third party to charge a reasonable delivery fee. Proposed law requires the full amount of each order of alcoholic beverages to ultimately be in the complete control of a retail dealer, but allows a third-party to collect payment from the sale of alcoholic beverages as an agent of a retail dealer. Proposed law provides that all deliveries made by a third party are subject to the same restrictions as deliveries made by a retail dealer. Proposed law provides that a retail dealer is responsible for all unlawful deliveries of alcoholic beverages and all violations caused by a third party while the third party is acting on behalf of the retail dealer. Proposed law requires a retail dealer to: (1)Determine what alcoholic beverages will be offered for sale through a third party. (2)Determine the price of all alcoholic beverages offered for sale through a third party. (3)Accept or reject all orders for alcoholic beverages placed through a third party's internet or mobile application platform. (4)Collect and remit all applicable taxes. Effective August 1, 2018. (Adds R.S. 26:153 and 307) Page 9 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions.