SLS 19RS-251 ORIGINAL
2019 Regular Session
SENATE BILL NO. 140
BY SENATOR CARTER
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
ALCOHOLIC BEVERAGES. Provides relative to alcohol delivery and allows the use of
a third party marketer. (gov sig)
1 AN ACT
2 To enact R.S. 26:2(27), (28), and (29), 153, 241 (25), (26), and (27) and 307, relative to the
3 Alcoholic Beverage Control Law; to provide for the delivery of alcoholic beverages;
4 to provide for requirements, restrictions and limitations; to provide for the marketing
5 of alcoholic beverages through electronic means; to provide for electronic order
6 processing; and to provide for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 26:2(27), (28), and (29), 153, 241(25), (26), and (27) and 307 are
9 hereby enacted to read as follows:
10 §2. Definitions
11 For purposes of this Chapter, the following terms have the respective
12 meanings ascribed to them in this Section, unless a different meaning clearly appears
13 from the context:
14 * * *
15 (27) "Electronic means" means internet-enabled technology and digital
16 media including but not limited to websites and consumer applications
17 accessible though smart phones and other mobile devices.
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1 (28) "Employee" means a person for whom a dealer is required to file an
2 Internal Revenue Service Form W-2. "Employee" shall not include any person
3 for which the dealer is not required to file such form.
4 (29) "Third party marketer" means an independent technology company
5 that operates a website or consumer application on which independent liquor
6 retailers market their products. The third party company shall not deal, handle,
7 sell, offer for sale, or possess for sale alcoholic beverages or process payments
8 for the sale of alcoholic beverages.
9 * * *
10 §153. Delivery of Alcoholic Beverages; certain retailers; third party marketers;
11 requirements; limitations
12 A. For purposes of this Section, the term "liquor retailer" or "permitee"
13 shall only include:
14 (1) Liquor retailers that meet the definition of "Package House-Class B"
15 provided in R.S. 26:2(16) and possess a Class B Retail Liquor Permit.
16 (2) Other liquor retailers that possess a permit that allow the sale of
17 alcoholic beverages for off-premise consumption.
18 B. Notwithstanding any law to the contrary, upon approval by the
19 commissioner, a liquor retailer may deliver, either on its licensed premises or
20 at a residential or commercial address designated by the consumer, alcohol
21 products lawfully sold to and purchased by the consumer. To deliver products,
22 as authorized by this Section, all of the following shall apply:
23 (1) The liquor retailer meets the definition of "Package House-Class B"
24 provided in R.S. 26:2(16) and possesses a Class B Retail Liquor Permit or the
25 liquor retailer possesses a permit that allows the retailer to sell alcoholic
26 beverages for off-premise consumption.
27 (2) The liquor retailer or its employee processes all payments initiated
28 by a consumer that is transacting the purchase with the liquor retailer.
29 (3) The liquor retailer or its employee assembles, packages, and fulfills
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1 each order at the permitted premises where the order is processed using
2 inventory located at that premises that was purchased from a permitted
3 wholesale dealer.
4 (4) The deliveries to consumers are made only by the liquor retailer or
5 its employee and only to consumers at a residential or commercial address in
6 this state.
7 (5) The alcoholic beverages delivered are for personal consumption, not
8 intended for resale, and are in a manufactured sealed container. The delivery
9 of an "open alcoholic beverage container" as defined in R.S. 32:300 is
10 prohibited.
11 (6) The delivery is in a geographic area where the sale of alcoholic
12 beverages is lawful and in the parish where the liquor retailer's permitted
13 establishment is located. Deliveries shall be prohibited in any geographic area
14 where the sale of alcohol is prohibited by the local governing authority.
15 (7) The delivery is not to an address on a campus of any state college,
16 university, or technical college or institution, or an independent college or
17 university, or any elementary or secondary school.
18 (8) The delivery takes place during the hours that the authorized liquor
19 retailer's permitted establishment is open to the public.
20 (9) At the time of delivery, the liquor retailer or its employee verifies that
21 the recipient of the alcoholic beverage or beverages is not visibly intoxicated.
22 (10) At the time of delivery, the liquor retailer or employee verifies the
23 identity and age of the person accepting delivery of the order by validating a
24 state issued photo identification of the person or through use of a real-time age
25 verification system authorized by the commissioner. Additionally, a signature
26 of the person receiving the delivery acknowledging receipt of the delivery and
27 verifying their age shall be obtained.
28 (11) The liquor retailer keeps a record of all deliveries of alcoholic
29 beverages and retains the records for a time period of two years from the date
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1 of the delivery.
2 C.(1) The record of each delivery as required by Paragraph (B)(11) of
3 this Section shall include:
4 (a) The liquor retailer's name, address, and permit number.
5 (b) The name of the person who placed the order and the date, time, and
6 method of the order.
7 (c) The name of the employee making the delivery and the date, time,
8 and address of the delivery.
9 (d) The type, brand, and quantity of each alcoholic beverage delivered.
10 (e) The name, date of birth, and signature of the person that received the
11 delivery.
12 (2) The liquor retailer shall make the records available to the
13 commissioner of the office of alcohol and tobacco control upon request for the
14 purpose of investigating and enforcing the provisions of this Title.
15 D.(1) Notwithstanding any law, rule, or regulation to the contrary, a
16 liquor retailer may use electronic means to market the alcohol products it is
17 licensed to sell and to receive and process purchase orders placed by a consumer
18 of legal drinking age.
19 (2) Orders processed may be delivered to the consumer on the licensed
20 premises or at a residential or commercial address designated by the consumer
21 in accordance with Subsection B of this Section.
22 E. A liquor retailer may market, receive, and process orders for alcohol
23 products using electronic means owned, operated, and maintained by a third
24 party marketer provided that:
25 (1) The permittee maintains ultimate control and responsibility over the
26 sales transaction and transfer of physical possession of the alcoholic beverages.
27 (2) The permittee retains the sole discretion to determine whether to
28 accept and complete an order or reject it, and the permittee or its employee
29 reviews and accepts or rejects each order.
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1 (3) The permittee retains the independence to determine which alcoholic
2 beverages are made available through electronic means and which alcoholic
3 beverages are made available for delivery to the consumer, and what will be the
4 price of each product.
5 (4) The purchase transaction takes place between the consumer and the
6 permittee and the permittee appears as the retailer.
7 (5) Any credit or debit card information provided by a consumer to the
8 third party for the purpose of transacting a purchase with a permittee is
9 automatically directed to the permittee such that the permittee appears as the
10 retailer at the time of purchase and on the receipt.
11 (6) The permittee, or its employee, processes the order at the premises
12 that accepts the order with all payments initiated by a consumer that is
13 transacting a purchase with the permittee.
14 (7) The alcoholic beverages are in the possession of the permittee prior
15 to the permittee's processing of payment of such products.
16 (8) The permittee, or its employee, assembles, packages, and fulfills each
17 order at the premises that accepted the order.
18 (9) Deliveries to consumers are made by the permittee, or by its
19 employee.
20 (10) At the time of delivery, the permittee, or its employee, verifies the
21 identity and age of the person accepting delivery of the order by validating a
22 state issued photo identification of the person or through use of a real-time age
23 verification system authorized by the commissioner. Additionally, a signature
24 of the person receiving the delivery acknowledging receipt of the delivery and
25 verifying their age shall be obtained.
26 F. The relationship between the permittee and third party marketer shall
27 be that of an independent contractor and neither party shall be deemed the
28 employee, agent, or joint venturer of the other party under any circumstances
29 or for any purposes.
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1 G. The commissioner may promulgate rules in accordance with the
2 Administrative Procedure Act related to the requirements and qualifications for
3 delivery of alcohol products by liquor retailers as provided by this Section.
4 H. If any provision of this Section or its application to any person or
5 circumstance is determined by a court to be invalid or unconstitutional, the
6 remaining provisions shall be construed in accordance with the intent of the
7 legislature to further limit rather than expand commerce in alcoholic beverages
8 and to enhance strict regulatory control over taxation, distribution, and sale of
9 alcoholic beverages through the three-tier regulatory system imposed by the
10 Alcoholic Beverage Control Law upon all alcoholic beverages.
11 * * *
12 §241. Definitions
13 The following terms have the respective meanings ascribed to them except
14 in those instances where the context indicates a different meaning:
15 * * *
16 (25) "Electronic means" means internet-enabled technology and digital
17 media including but not limited to websites and consumer applications
18 accessible though smart phones and other mobile devices.
19 (26) "Employee" means a person for whom a dealer is required to file an
20 Internal Revenue Service Form W-2. "Employee" shall not include any person
21 for which the dealer is not required to file such form.
22 (27) "Third party marketer" means an independent technology company
23 that operates a website or consumer application on which independent liquor
24 retailers market their products. The third party company shall not deal, handle,
25 sell, offer for sale, or possess for sale alcoholic beverages or process payments
26 for the sale of alcoholic beverages.
27 * * *
28 §307. Delivery of Alcoholic Beverages; certain retailers; third party marketers;
29 requirements; limitations
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SLS 19RS-251 ORIGINAL
1 A. For purposes of this Section, the term "liquor retailer" or
2 "permittee" shall only include:
3 (1) Liquor retailers that meet the definition of "Package House-Class B"
4 provided in R.S. 26:2(13) and possess a Class B Retail Liquor Permit.
5 (2) Other liquor retailers that possess a permit that allows the sale of
6 alcoholic beverages for off-premise consumption.
7 B. Notwithstanding any law to the contrary, upon approval by the
8 commissioner, a liquor retailer may deliver, either on its licensed premises or
9 at a residential or commercial address designated by the consumer, alcohol
10 products lawfully sold to and purchased by the consumer. In the delivery of the
11 products, all of the following shall apply:
12 (1) The liquor retailer meets the definition of "Package House-Class B"
13 provided in R.S. 26:2(13) and possesses a Class B Retail Liquor Permit or the
14 liquor retailer possesses a permit that allows the retailer to sell alcoholic
15 beverages for off-premise consumption.
16 (2) The liquor retailer or its employee processes all payments initiated
17 by a consumer that is transacting the purchase with the liquor retailer.
18 (3) The liquor retailer or its employee assembles, packages, and fulfills
19 each order at the permitted premises where the order is processed using
20 inventory located at that premises that was purchased from a permitted
21 wholesale dealer.
22 (4) The deliveries to consumers are made only by the liquor retailer or
23 its employee and only to consumers at a residential or commercial address in
24 this state.
25 (5) The alcoholic beverages delivered are for personal consumption, not
26 intended for resale, and are in a manufactured sealed container. The delivery
27 of an "open alcoholic beverage container" as defined in R.S. 32:300 is
28 prohibited.
29 (6) The delivery is in a geographic area where the sale of alcoholic
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1 beverages is lawful and in the parish where the liquor retailer's permitted
2 establishment is located. Deliveries shall be prohibited in any geographic area
3 where the sale of alcohol is prohibited by the local governing authority.
4 (7) The delivery is not to an address on a campus of any state college,
5 university, or technical college or institution, or an independent college or
6 university, or any elementary or secondary school.
7 (8) The delivery takes place during the hours that the authorized liquor
8 retailer's permitted establishment is open to the public.
9 (9) At the time of delivery, the liquor retailer or its employee verifies that
10 the recipient of the alcoholic beverage or beverages is not visibly intoxicated.
11 (10) At the time of delivery, the liquor retailer or employee verifies the
12 identity and age of the person accepting delivery of the order by validating a
13 state issued photo identification of the person or through use of a real-time age
14 verification system authorized by the commissioner. Additionally, a signature
15 of the person receiving the delivery acknowledging receipt of the delivery and
16 verifying their age shall be obtained.
17 (11) The liquor retailer keeps a record of all deliveries of alcoholic
18 beverages and retains the records for a time period of two years from the date
19 of the delivery.
20 C.(1) The record of each delivery as required by Paragraph (B)(11) of
21 this Section shall include:
22 (a) The liquor retailer's name, address, and permit number.
23 (b) The name of the person who placed the order and the date, time, and
24 method of the order.
25 (c) The name of the employee making the delivery and the date, time,
26 and address of the delivery.
27 (d) The type, brand, and quantity of each alcoholic beverage delivered.
28 (e) The name, date of birth, and signature of the person that received the
29 delivery.
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1 (2) The liquor retailer shall make the records available to the
2 commissioner of the office of alcohol and tobacco control upon request for the
3 purpose of investigating and enforcing the provisions of this Title.
4 D. (1) Notwithstanding any law, rule, or regulation to the contrary, a
5 liquor retailer may use electronic means to market the alcohol products it is
6 licensed to sell and to receive and process purchase orders placed by a consumer
7 of legal drinking age.
8 (2) Orders processed may be delivered to the consumer on the licensed
9 premises or at a residential or commercial address designated by the consumer
10 in accordance with Subsection B of this Section.
11 E. A liquor retailer may market, receive, and process orders for alcohol
12 products using electronic means owned, operated, and maintained by a third
13 party marketer provided that:
14 (1) The permittee maintains ultimate control and responsibility over the
15 sales transaction and transfer of physical possession of the alcoholic beverages.
16 (2) The permittee retains the sole discretion to determine whether to
17 accept and complete an order or reject it, and the permittee or its employee
18 reviews and accepts or rejects each order.
19 (3) The permittee retains the independence to determine which alcoholic
20 beverages are made available through electronic means and which alcoholic
21 beverages are made available for delivery to the consumer, and what will be the
22 price of each product.
23 (4) The purchase transaction takes place between the consumer and the
24 permittee and the permittee appears as the retailer.
25 (5) Any credit or debit card information provided by a consumer to the
26 third party for the purpose of transacting a purchase with a permittee is
27 automatically directed to the permittee such that the permittee appears as the
28 retailer at the time of purchase and on the receipt.
29 (6) The permittee, or its employee, processes the order at the premises
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1 that accepts the order with all payments initiated by a consumer that is
2 transacting a purchase with the permittee.
3 (7) The alcoholic beverages are in the possession of the permittee prior
4 to the permittee's processing of payment of such products.
5 (8) The permittee, or its employee, assembles, packages, and fulfills each
6 order at the premises that accepted the order.
7 (9) Deliveries to consumers are made by the permittee, or by its
8 employee.
9 (10) At the time of delivery, the permittee, or its employee, verifies the
10 identity and age of the person accepting delivery of the order by validating a
11 state issued photo identification of the person or through use of a real-time age
12 verification system authorized by the commissioner. Additionally, a signature
13 of the person receiving the delivery acknowledging receipt of the delivery and
14 verifying their age shall be obtained.
15 F. The relationship between the permittee and third party marketer shall
16 be that of an independent contractor and neither party shall be deemed the
17 employee, agent, or joint venturer of the other party under any circumstances
18 or for any purposes.
19 G. The commissioner may promulgate rules in accordance with the
20 Administrative Procedure Act related to the requirements and qualifications for
21 the delivery of alcohol products by liquor retailers as provided by this Section.
22 H. If any provision of this Section or its application to any person or
23 circumstance is determined by a court to be invalid or unconstitutional, the
24 remaining provisions shall be construed in accordance with the intent of the
25 legislature to further limit rather than expand commerce in alcoholic beverages
26 and to enhance strict regulatory control over taxation, distribution, and sale of
27 alcoholic beverages through the three-tier regulatory system imposed by the
28 Alcoholic Beverage Control Law upon all alcoholic beverages.
29 Section 2. The Louisiana State Law Institute is hereby authorized and directed to
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1 arrange in alphabetical order and renumber the definitions provided in R.S. 26:2 and 241.
2 Section 3. This Act shall become effective upon signature by the governor or, if not
3 signed by the governor, upon expiration of the time for bills to become law without signature
4 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
5 vetoed by the governor and subsequently approved by the legislature, this Act shall become
6 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Yoursheka D. George.
DIGEST
SB 140 Original 2019 Regular Session Carter
Proposed law authorizes the delivery of alcoholic beverages to consumers by businesses with
a Class B Retail Liquor Permit (package houses) or a permit that allows the sale of alcoholic
beverages for off-premise consumption. Applies to alcohol beverages of high and low
alcohol content.
Proposed law provides that for purposes of proposed law, the term "liquor retailer" only
includes:
(1)Liquor retailers who possesses a Class B Retail Liquor Permit, do business in a place
consisting of no less than 500 square feet of public habitable area, and sell alcoholic
beverages in factory sealed containers for transportation and consumption off the
premises, and where no person is allowed to tamper with or otherwise disrupt the
manufacturer's seal on the alcoholic products while on the licensed premises.
(2)Liquor retailers who possess a permit that allows the sale of alcoholic beverages for
off-premise consumption.
Proposed law provides that, notwithstanding any law to the contrary, upon approval by the
commissioner, a liquor retailer may deliver, either on its licensed premises or at a residential
or commercial address designated by the consumer, alcohol products lawfully sold to and
purchased by the consumer. Provides that in the delivery of the products, all of the following
apply:
(1)The liquor retailer possesses a Class B Retail Liquor Permit or the liquor retailer
possesses a permit that allows the retailer to sell alcoholic beverages for off-premise
consumption.
(2)The liquor retailer or its employee processes all payments initiated by a consumer
that is transacting the purchase with the liquor retailer.
(3)The liquor retailer or its employee assembles, packages, and fulfills each order at the
permitted premises where the order is processed using inventory located at that
premises that was purchased from a permitted wholesale dealer.
(4)The deliveries to consumers are made only by the liquor retailer or its employee and
only to consumers at a residential or commercial address in this state.
(5)The alcoholic beverages delivered are for personal consumption, not intended for
resale, and are in a manufactured sealed container. The delivery of an "open
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alcoholic beverage container" is prohibited.
(6)The delivery is in a geographic area where the sale of alcoholic beverages is lawful
and in the parish where the liquor retailer's permitted establishment is located.
Deliveries are prohibited in any geographic area where the sale of alcohol is
prohibited by the local governing authority.
(7)The delivery is not to an address on a campus of any state college, university, or
technical college or institution, or an independent college or university, or any
elementary or secondary school.
(8)The delivery takes place during the hours that the authorized liquor retailer's
permitted establishment is open to the public.
(9)At the time of delivery, the liquor retailer or its employee verifies that the recipient
of the alcoholic beverages is not visibly intoxicated.
(10)At the time of delivery, the liquor retailer or employee verifies the identity and age
of the person accepting delivery of the order by validating a state issued photo
identification of the person or through use of a real-time age verification system
authorized by the commissioner to the office of alcohol and tobacco control. Also,
a signature of the person receiving the delivery acknowledging receipt of the delivery
and verifying their age is obtained.
(11)The liquor retailer keeps a record of all deliveries of alcoholic beverages and retains
the records for a time period of two years from the date of the delivery.
Proposed law provides that the liquor retailer's delivery records shall include:
(1)The liquor retailer's name, address, and permit number.
(2)The name of the person who placed the order and the date, time, and method of the
order.
(3)The name of the employee making the delivery and the date, time, and address of the
delivery.
(4)The type, brand, and quantity of each alcoholic beverage delivered.
(5)The name, date of birth, and signature of the person that received the delivery.
Proposed law requires that the liquor retailer make the records available to the commissioner
of the office of alcohol and tobacco control upon request for the purpose of investigating and
enforcing the provisions of the law.
Proposed law provides that notwithstanding any law, rule, or regulation to the contrary, a
liquor retailer may use electronic means to market the alcohol products it is licensed to sell
and to receive and process purchase orders placed by a consumer of legal drinking age.
Provides that orders processed may be delivered to the consumer on the licensed premises
or at a residential or commercial address designated by the consumer in accordance with
proposed law.
Proposed law provides that a liquor retailer may market, receive, and process orders for
alcohol products using electronic means owned, operated, and maintained by a third party
marketer if:
(1)The permitee maintains ultimate control and responsibility over the sales transaction
and transfer of physical possession of the alcoholic beverages.
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(2)The permittee retains the sole discretion to determine whether to accept and
complete an order or reject it, and the permittee or its employee reviews and accepts
or rejects each order.
(3)The permittee retains the independence to determine which alcoholic beverages are
made available through electronic means and which alcoholic beverages are made
available for delivery to the consumer, and what will be the price of each product.
(4)The purchase transaction takes place between the consumer and the permittee and
the permittee appears as the retailer.
(5)Any credit or debit card information provided by a consumer to the third party for
the purpose of transacting a purchase with a permittee is automatically directed to
the permittee such that the permittee appears as the retailer at the time of purchase
and on the receipt.
(6)The permittee, or its employee, processes the order at the premises that accepts the
order with all payments initiated by a consumer that is transacting a purchase with
the permittee.
(7)The alcoholic beverages are in the possession of the permittee prior to the permittee's
processing of payment of such products.
(8)The permittee, or its employee, assembles, packages, and fulfills each order at the
premises that accepted the order.
(9)Deliveries to consumers are made by the permittee, or by its employee.
(10)At the time of delivery, the permittee, or its employee, verifies the identity and age
of the person accepting delivery of the order by validating a state issued photo
identification of the person or through use of a real-time age verification system
authorized by the commissioner. Additionally, a signature of the person receiving the
delivery acknowledging receipt of the delivery and verifying their age shall be
obtained.
Proposed law provides that the relationship between the permittee and third party marketer
shall be that of an independent contractor and neither party shall be deemed the employee,
agent, or joint venturer of the other party under any circumstances or for any purposes.
Proposed law authorizes the commissioner of the office of alcohol and tobacco control to
promulgate rules in accordance with the APA related to the requirements and qualifications
for the delivery of alcohol products by liquor retailers as provided by proposed law.
Proposed law provides that if any provision of proposed law or its application to any person
or circumstance is determined by a court to be invalid or unconstitutional, the remaining
provisions shall be construed in accordance with the intent of the legislature to further limit
rather than expand commerce in alcoholic beverages and to enhance strict regulatory control
over taxation, distribution, and sale of alcoholic beverages through the three-tier regulatory
system imposed by the Alcoholic Beverage Control Law upon all beverage alcohol.
Authorizes and directs the Louisiana State Law Institute to arrange in alphabetical order and
renumber the definitions in the law.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 26:2(27), (28), and (29), 153, 241(25), (26), and (27) and 307)
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