SLS 18RS-296 ORIGINAL 2018 Regular Session SENATE BILL NO. 246 BY SENATOR MORRISH ALCOHOLIC BEVERAGES. Provides relative to the delivery of alcoholic beverages. (8/1/18) 1 AN ACT 2 To 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 a 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. 10 Be 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, 17 the retail dealer submits written notification to the commissioner of its intent Page 1 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 246 SLS 18RS-296 ORIGINAL 1 to provide alcoholic beverage delivery services along with a sworn affidavit 2 acknowledging that the retail dealer understands the provisions of this Section. 3 B. A retail dealer providing alcoholic beverage delivery services 4 pursuant to this Section shall: 5 (1) Deliver only alcoholic beverages purchased from a wholesale dealer 6 licensed pursuant to this Chapter. 7 (2) Deliver only alcoholic beverages intended for personal consumption 8 and delivered in a sealed container. The delivery of an "open alcoholic beverage 9 container" as defined in R.S. 32:300 is prohibited. 10 (3) Deliver only on the days and during the hours a retail dealer is 11 authorized to sell or serve alcoholic beverages. 12 (4) Deliver only in those areas where the sale of alcoholic beverages is 13 permitted. Delivery of alcoholic beverages in an area where the sale of alcoholic 14 beverages has been prohibited by a referendum vote is prohibited. 15 C.(1) A retail dealer may charge a reasonable delivery fee and may 16 receive orders and accept payment in person at the licensed premises, via 17 telephone, via the internet, or through a mobile application or similar 18 technology. 19 (2) At the time of delivery of alcoholic beverages, a retail dealer's 20 delivery agent shall verify the recipient's date of birth, that the recipient is 21 twenty-one years of age or older, and obtain the recipient's signature. A retail 22 dealer's delivery agent shall refuse delivery and return the alcoholic beverages 23 to the licensed premises if: 24 (a) The recipient does not produce a valid and current form of 25 identification as provided in R.S. 26:90(A)(1). 26 (b) The recipient is intoxicated. 27 (c) There is reason to doubt the authenticity or correctness of the 28 recipient's identification. 29 (d) The recipient refuses to sign for the receipt of the delivery. Page 2 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 246 SLS 18RS-296 ORIGINAL 1 D. A retail dealer shall keep a record of all deliveries of alcoholic 2 beverages and retain such records for two years from the date of the delivery. 3 The retail dealer shall make such records available to the commissioner of the 4 office of alcohol and tobacco control upon request for the purpose of 5 investigating and enforcing the provisions of this Title. The record of each 6 delivery shall include: 7 (1) The retail dealer's name, address, and permit number. 8 (2) The name of the person who placed the order and the date, time, and 9 method of the order. 10 (3) The name of the delivery agent and the date, time, and address of the 11 delivery. 12 (4) The type, brand, and quantity of each alcoholic beverage delivered. 13 (5) The name, date of birth, and signature of the person who received the 14 delivery. 15 E.(1) Notwithstanding any provision of law to the contrary, a retail 16 dealer providing alcoholic beverage delivery services may enter into a written 17 agreement with a third party for the use of an internet or mobile application or 18 similar technology platform to facilitate the sale of alcoholic beverages for 19 delivery to consumers for personal consumption within this state and the third 20 party may deliver alcoholic beverages to the customer on behalf of the retail 21 dealer if all of the following requirements are met: 22 (a) Prior to a third party taking any action on its behalf, a retail dealer 23 provides written notification to the commissioner of the office of alcohol and 24 tobacco control of its intent to utilize the services of a third party to facilitate 25 the sale of alcoholic beverages for delivery and the delivery of alcoholic 26 beverages. The notification shall include the legal name, registered trade name, 27 physical address, and mailing address of the third party. 28 (b) The third party is properly registered and authorized to conduct 29 business in Louisiana. Page 3 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 246 SLS 18RS-296 ORIGINAL 1 (c) The third party does not hold a Louisiana alcoholic beverage permit 2 of any class or type. 3 (d) The retail dealer's registered trade name is displayed on all websites, 4 mobile applications or similar technology, and advertisements associated with 5 the sale and delivery of a retail dealer's alcoholic beverage inventory. 6 (2) A retail dealer may pay a third party a fee for its services and a third 7 party may charge a reasonable delivery fee for orders delivered by the third 8 party. A third party may act as an agent of a retail dealer in the collection of 9 payments from the sale of alcoholic beverages, but the full amount of each order 10 must be handled in a manner that gives the retail dealer control over the 11 ultimate receipt of the payment from the consumer. 12 (3) A third party shall comply with the provisions of Subsections B and 13 C of this Section when delivering alcoholic beverages on behalf of a retail 14 dealer. 15 (a) A retail dealer shall be solely responsible for all unlawful deliveries 16 of alcoholic beverages and all violations of this Title resulting from the actions 17 of a third party taken on behalf of a retail dealer. 18 (b) The alcoholic beverages of all deliveries refused by a third party shall 19 be returned to the retail dealer. 20 (4) A retail dealer shall manage and control the sale of alcoholic 21 beverages. Such responsibilities shall include, but not be limited to: 22 (a) Determine the alcoholic beverages to be offered for sale through a 23 third party's internet or mobile application platform or similar technology. 24 (b) Determine the price at which alcoholic beverages are offered for sale 25 or sold through a third party's internet or mobile application platform or 26 similar technology. 27 (c) Accept or reject all orders placed for alcoholic beverages through a 28 third party's internet or mobile application platform or similar technology. 29 (d) Collect and remit all applicable state and local sales taxes. Page 4 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 246 SLS 18RS-296 ORIGINAL 1 * * * 2 §307. Delivery services of certain retail dealers; third-party agreements; 3 requirements; limitations 4 A. Notwithstanding any provision of law to the contrary, a retail dealer 5 possessing a valid permit issued pursuant to this Chapter may deliver alcoholic 6 beverages to customers within this state if prior to offering delivery services, the 7 retail dealer submits written notification to the commissioner of its intent to 8 provide alcoholic beverage delivery services along with a sworn affidavit 9 acknowledging that the retail dealer understands the provisions of this Section. 10 B. A retail dealer providing alcoholic beverage delivery services 11 pursuant to this Section shall: 12 (1) Deliver only alcoholic beverages purchased from a wholesale dealer 13 licensed pursuant to this Chapter. 14 (2) Deliver only alcoholic beverages intended for personal consumption 15 and delivered in a sealed container. The delivery of an "open alcoholic beverage 16 container" as defined in R.S. 32:300 is prohibited. 17 (3) Deliver only on the days and during the hours a retail dealer is 18 authorized to sell or serve alcoholic beverages. 19 (4) Deliver only in those areas where the sale of alcoholic beverages is 20 permitted. Delivery of alcoholic beverages in an area where the sale of alcoholic 21 beverages has been prohibited by a referendum vote is prohibited. 22 C.(1) A retail dealer may charge a reasonable delivery fee and may 23 receive orders and accept payment in person at the licensed premises, via 24 telephone, via the internet, or through a mobile application or similar 25 technology. 26 (2) At the time of delivery of alcoholic beverages, a retail dealer's 27 delivery agent shall verify the recipient's date of birth, that the recipient is 28 twenty-one years of age or older, and obtain the recipient's signature. A retail 29 dealer's delivery agent shall refuse delivery and return the alcoholic beverages Page 5 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 246 SLS 18RS-296 ORIGINAL 1 to the licensed premises if: 2 (a) The recipient does not produce a valid and current form of 3 identification as provided in R.S. 26:90(A)(1). 4 (b) The recipient is intoxicated. 5 (c) There is reason to doubt the authenticity or correctness of the 6 recipient's identification. 7 (d) The recipient refuses to sign for the receipt of the delivery. 8 D. A retail dealer shall keep a record of all deliveries of alcoholic 9 beverages and retain such records for two years from the date of the delivery. 10 The retail dealer shall make such records available to the commissioner of the 11 office of alcohol and tobacco control upon request for the purpose of 12 investigating and enforcing the provisions of this Title. The record of each 13 delivery shall include: 14 (1) The retail dealer's name, address, and permit number. 15 (2) The name of the person who placed the order and the date, time, and 16 method of the order. 17 (3) The name of the delivery agent and the date, time, and address of the 18 delivery. 19 (4) The type, brand, and quantity of each alcoholic beverage delivered. 20 (5) The name, date of birth, and signature of the person who received the 21 delivery. 22 E.(1) Notwithstanding any provision of law to the contrary, a retail 23 dealer providing alcoholic beverage delivery services may enter into a written 24 agreement with a third party for the use of an internet or mobile application or 25 similar technology platform to facilitate the sale of alcoholic beverages for 26 delivery to consumers for personal consumption within this state and the third 27 party may deliver alcoholic beverages to the customer on behalf of the retail 28 dealer if all of the following requirements are met: 29 (a) Prior to a third party taking any action on its behalf, a retail dealer Page 6 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 246 SLS 18RS-296 ORIGINAL 1 provides written notification to the commissioner of the office of alcohol and 2 tobacco control of its intent to utilize the services of a third party to facilitate 3 the sale of alcoholic beverages for delivery and the delivery of alcoholic 4 beverages. The notification shall include the legal name, registered trade name, 5 physical address, and mailing address of the third party. 6 (b) The third party is properly registered and authorized to conduct 7 business in Louisiana. 8 (c) The third party does not hold a Louisiana alcoholic beverage permit 9 of any class or type. 10 (d) The retail dealer's registered trade name is displayed on all websites, 11 mobile applications or similar technology, and advertisements associated with 12 the sale and delivery of a retail dealer's alcoholic beverage inventory. 13 (2) A retail dealer may pay a third party a fee for its services and a third 14 party may charge a reasonable delivery fee for orders delivered by the third 15 party. A third party may act as an agent of a retail dealer in the collection of 16 payments from the sale of alcoholic beverages, but the full amount of each order 17 must be handled in a manner that gives the retail dealer control over the 18 ultimate receipt of the payment from the consumer. 19 (3) A third party shall comply with the provisions of Subsections B and 20 C of this Section when delivering alcoholic beverages on behalf of a retail 21 dealer. 22 (a) A retail dealer shall be solely responsible for all unlawful deliveries 23 of alcoholic beverages and all violations of this Title resulting from the actions 24 of a third party taken on behalf of a retail dealer. 25 (b) The alcoholic beverages of all deliveries refused by a third party shall 26 be returned to the retail dealer. 27 (4) A retail dealer shall manage and control the sale of alcoholic 28 beverages. Such responsibilities shall include, but not be limited to: 29 (a) Determine the alcoholic beverages to be offered for sale through a Page 7 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 246 SLS 18RS-296 ORIGINAL 1 third party's internet or mobile application platform or similar technology. 2 (b) Determine the price at which alcoholic beverages are offered for sale 3 or sold through a third party's internet or mobile application platform or 4 similar technology. 5 (c) Accept or reject all orders placed for alcoholic beverages through a 6 third party's internet or mobile application platform or similar technology. 7 (d) Collect and remit all applicable state and local sales taxes. The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Ashley E. Menou. DIGEST SB 246 Original 2018 Regular Session Morrish 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 beverage 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. Page 8 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 246 SLS 18RS-296 ORIGINAL (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. 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 which are struck through are deletions from existing law; words in boldface type and underscored are additions.