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2020 Regular Session
SENATE BILL NO. 178
BY SENATOR ALLAIN
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
ALCOHOLIC BEVERAGES. Provides relative to the delivery of alcoholic beverages.
(gov sig)
1 AN ACT
2 To amend and reenact R.S. 26:271.2(2)(b), 271.4, and 308(A), (B), (C)(1), (2), (8) and
3 (11)(b), (D), (E), and (F)(1), relative to the delivery of alcoholic beverages; to
4 provide for third party delivery companies; to provide for delivery agreements; to
5 provide for requirements; to provide for limitations; and to provide for related
6 matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 26:271.2(2)(b), 271.4, and 308(A), (B), (C)(1), (2), (8) and (11)(b),
9 (D), (E), and (F)(1) are hereby amended and reenacted to read as follows:
10 §271.2. Class A permit; definitions
11 The commissioner shall issue the following four types of Class A retail
12 permits for beverages of low alcoholic content:
13 * * *
14 (2) Class A-Restaurant:
15 * * *
16 (b) Notwithstanding any provision of law to the contrary and subject to rules
17 promulgated by the commissioner, in addition to the authority to contract with a third
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1 party delivery company as provided in R.S. 26:308, a permit may be issued to a
2 "restaurant establishment" enabling the delivery of restaurant prepared food and
3 alcohol as defined in R.S. 26:2(1) and 241(1)(a) with its own employees or agents
4 for which the retailer is required to file an Internal Revenue Service Form W-2
5 or 1099. Notwithstanding the provisions of R.S. 26:271(A)(2), the permit fee for the
6 permit issued pursuant to this Subparagraph shall be two hundred fifty dollars.
7 * * *
8 §271.4. Package house-Class B permit
9 Notwithstanding any provisions of law to the contrary and subject to rules
10 promulgated by the commissioner, in addition to the authority to contract with a third
11 party delivery company as provided in R.S. 26:308, a permit may be issued to a
12 grocery store enabling the delivery of alcohol as defined in R.S. 26:2(1) and
13 241(1)(a) with its own employees or agents for which the retailer is required to
14 file an Internal Revenue Service Form W-2 or 1099. Notwithstanding the
15 provisions of R.S. 26:271(A)(2), the permit fee for the permit issued pursuant to this
16 Section shall be two hundred fifty dollars.
17 * * *
18 §308. Alcoholic beverages delivery agreements; requirements; limitations
19 A. For purposes of this Section only, a third party delivery company shall be
20 defined as a third party delivery service that is licensed to do business in the state of
21 Louisiana, permitted with the office of alcohol and tobacco control, and uses their
22 own W-2 employees or agents for which the third party delivery company is
23 required to file an Internal Revenue Service Form W-2 or 1099 for delivery. For
24 all other alcohol delivery provisions of this Chapter, third party shall be the
25 definition provided in R.S. 26:2 and 241.
26 B. Notwithstanding any provision of law to the contrary, a retail dealer
27 possessing a valid Class A-General retail permit as provided in R.S. 26:271.2, a
28 Class "R" restaurant permit as provided in R.S. 26:272, or a package house-Class B,
29 as defined in R.S. 26:241, permit as provided in this Chapter may enter into a written
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1 agreement with a third party delivery company for the use of an internet or mobile
2 application or similar technology platform to facilitate the sale of alcoholic
3 beverages for delivery to consumers for personal consumption within this state and
4 the third party delivery company may deliver alcoholic beverages to the consumer.
5 C. An alcoholic beverage delivery agreement between a retail dealer and a
6 third party shall require all of the following:
7 (1) Only alcoholic beverages purchased from a wholesale dealer licensed
8 pursuant to this Chapter Title are offered for delivery.
9 (2) Only alcoholic beverages of low alcoholic content, beer, sparkling wine
10 as defined in R.S. 26:2(1), and still wine as defined in R.S. 26:241(1)(a) are offered
11 for delivery.
12 * * *
13 (8) No alcoholic beverages shall be delivered more than ten twenty-five
14 miles from the place of purchase.
15 * * *
16 (11) Alcoholic beverages are delivered only by a person that meets all of the
17 following requirements:
18 * * *
19 (b) The person is an employee or agent for which the third party delivery
20 company shall be required to file an Internal Revenue Service Form W-2 or 1099.
21 * * *
22 D. A retail dealer shall enter into an alcoholic beverage delivery agreement
23 with a third party delivery company only when the third party meets all of the
24 following requirements:
25 (1) The third party delivery company is properly registered and authorized
26 to conduct business in Louisiana.
27 (2) The third party delivery company holds a valid Louisiana alcoholic
28 beverage permit issued pursuant to R.S. 26:271.2(1)(j).
29 (3) The third-party delivery service company shall maintain a general
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1 liability insurance policy with a liquor liability endorsement in an amount no less
2 than one million dollars per occurrence for the duration of the agreement with the
3 retail dealer and shall provide proof of coverage to the retail dealer.
4 (4) The third party delivery company is able to monitor the routes of its
5 employees or agents during alcoholic beverage deliveries.
6 (5) The third party delivery company conducts an interview and a
7 background check of all persons that will deliver alcoholic beverages.
8 E. A retail dealer may pay a third party delivery company a fee for its
9 services and a third party may charge a reasonable delivery fee for orders delivered
10 by the third party delivery company. A third party delivery company properly
11 licensed pursuant to this Section or its authorized agent may act as an agent of
12 a retail dealer in the collection of payments from the sale of alcoholic beverages, but
13 the full amount of each order must be handled in a manner that gives the retail dealer
14 control over the ultimate receipt of the payment from the consumer. A third party
15 delivery company properly licensed pursuant to this Section or its authorized
16 agent may also act as an agent of a retail dealer for the purposes of processing,
17 assembling, packaging, and fulfilling alcoholic beverage orders for delivery
18 from the retailer's licensed premises. No additional permit shall be required of
19 a retail dealer who has contracted with a third party delivery company properly
20 licensed pursuant to this Section for the purpose of processing, assembling,
21 packaging, and fulfilling alcoholic beverage orders for delivery from the
22 retailer's licensed premises.
23 F.(1) The third party delivery company may receive orders and accept
24 payment via the internet or through a mobile application or similar technology.
25 * * *
26 Section 2. This Act shall become effective upon signature by the governor or, if not
27 signed by the governor, upon expiration of the time for bills to become law without signature
28 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
29 vetoed by the governor and subsequently approved by the legislature, this Act shall become
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1 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 Alan Miller.
DIGEST
SB 178 Original 2020 Regular Session Allain
Present law adds additional ATC-issued permits for the delivery of low alcohol content
beverages by restaurants, grocery stores, holders of a package house-Class B permit, and
third parties, and sets the amount of the fees for such permits.
Proposed law removes the limitation on delivery to only low alcohol content beverages.
Present law defines a third party delivery company as a third party delivery service that is
licensed to do business in the state of La., permitted with ATC, and uses their own W-2
employees for delivery.
Proposed law retains present law but also provides that a third party delivery company may
also utilize the service of agents that receive an IRS Form 1099 as proof of compensation
for their services. Persons that receive an IRS Form 1099 are considered independent
contractors and not employees.
Present law prohibits alcoholic beverages from being delivered more than 10 miles from the
place of purchase.
Proposed law expands the delivery area from 10 miles to 25 miles from the place of
purchase.
Proposed law provides that a third party delivery company or its authorized agent may also
act as an agent of a retail dealer for the purposes of processing, assembling, packaging, and
fulfilling alcoholic beverage orders for delivery from the retailer's licensed premises with
no additional permit required of a retail dealer who has contracted with a third party delivery
company for the purpose of processing, assembling, packaging, and fulfilling alcoholic
beverage orders for delivery from the retailer's licensed premises.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 26:271.2(2)(b), 271.4, and 308(A), (B), (C)(1), (2), (8) and (11)(b), (D), (E),
and (F)(1))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.