2020 Regular Session ENROLLED SENATE BILL NO. 178 BY SENATOR ALLAIN Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. 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), and to enact R.S. 26:241(26), relative to the delivery of 4 alcoholic beverages; to provide for third party delivery companies and platforms; to 5 provide for delivery agreements; to provide for requirements; to provide for 6 limitations; and to provide for related 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 and R.S. 26:241(26) is hereby 10 enacted to read as follows: 11 §241. Definitions 12 The following terms have the respective meanings ascribed to them except 13 in those instances where the context indicates a different meaning: 14 * * * 15 (26) "Third party platform" means a third party service that is licensed 16 to do business in the state of Louisiana that performs work with its own 17 employees or agents for which the platform is required to file an Internal 18 Revenue Service Form W-2 or 1099. 19 * * * 20 §271.2. Class A permit; definitions 21 The commissioner shall issue the following four types of Class A retail 22 permits for beverages of low alcoholic content: 23 * * * 24 (2) Class A-Restaurant: 25 * * * ACT No. 115 Page 1 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 178 ENROLLED 1 (b) Notwithstanding any provision of law to the contrary and subject to rules 2 promulgated by the commissioner, in addition to the authority to contract with a third 3 party delivery company or a third party platform as provided in R.S. 26:308, a 4 permit may be issued to a "restaurant establishment" enabling the delivery of 5 restaurant prepared food and alcohol malt beverages, sparkling wine, and still 6 wine, as defined in R.S. 26:2 and 241 with its own employees or agents for which 7 the retailer is required to file an Internal Revenue Service Form W-2 or 1099. 8 Notwithstanding the provisions of R.S. 26:271(A)(2), the permit fee for the permit 9 issued pursuant to this Subparagraph shall be two hundred fifty dollars. 10 * * * 11 §271.4. Package house-Class B permit 12 Notwithstanding any provisions of law to the contrary and subject to rules 13 promulgated by the commissioner, in addition to the authority to contract with a third 14 party delivery company or a third party platform as provided in R.S. 26:308, a 15 permit may be issued to a grocery store enabling the delivery of alcohol as defined 16 in R.S. 26:2(1) and 241(1)(a) with its own employees or agents for which the 17 retailer is required to file an Internal Revenue Service Form W-2 or 1099. 18 Notwithstanding the provisions of R.S. 26:271(A)(2), the permit fee for the permit 19 issued pursuant to this Section shall be two hundred fifty dollars. 20 * * * 21 §308. Alcoholic beverages delivery agreements; requirements; limitations 22 A. For purposes of this Section only, a third party delivery company shall be 23 defined as a third party delivery service that is licensed to do business in the state of 24 Louisiana, permitted with the office of alcohol and tobacco control, and uses their 25 own W-2 employees or agents for which the third party delivery company or the 26 third party platform is required to file an Internal Revenue Service Form W-2 27 or 1099 for delivery. For all other alcohol delivery provisions of this Chapter, third 28 party shall be the definition provided in R.S. 26:2 and 241. 29 B. Notwithstanding any provision of law to the contrary, a retail dealer 30 possessing a valid Class A-General retail permit as provided in R.S. 26:271.2, a Page 2 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 178 ENROLLED 1 Class "R" restaurant permit as provided in R.S. 26:272, or a package house-Class B, 2 as defined in R.S. 26:241, permit as provided in this Chapter may enter into a written 3 agreement with a third party delivery company or a third party platform for the 4 use of an internet or mobile application or similar technology platform to facilitate 5 the sale of alcoholic beverages for delivery to consumers for personal consumption 6 within this state and the third party delivery company or the third party platform 7 may deliver alcoholic beverages to the consumer. 8 C. An alcoholic beverage delivery agreement between a retail dealer and a 9 third party shall require all of the following: 10 (1) Only alcoholic beverages purchased from a wholesale dealer licensed 11 pursuant to this Chapter Title are offered for delivery. 12 (2)(a) Only alcoholic beverages of low alcoholic content, beer, sparkling 13 wine as defined in R.S. 26:2(1), and still wine as defined in R.S. 26:241(1)(a) are 14 offered for delivery from the licensed premises of a package house-Class B 15 permit holder. 16 (b) Only malt beverages, sparkling wine, and still wine, as defined in R.S. 17 26:2 and 241 are offered for delivery from the licensed premises of a restaurant 18 permit holder. 19 * * * 20 (8) No (a) For any parish having a population of less than one hundred 21 thousand according to the latest federal decennial census, no alcoholic beverages 22 shall be delivered more than ten twenty-five miles from the place of purchase. 23 (b) For any parish having a population of greater than one hundred 24 thousand according to the latest federal decennial census, no alcoholic beverages 25 shall be delivered more than ten miles from the place of purchase. 26 * * * 27 (11) Alcoholic beverages are delivered only by a person that meets all of the 28 following requirements: 29 * * * 30 (b) The person is an employee or agent for which the third party delivery Page 3 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 178 ENROLLED 1 company or the third party platform shall be required to file an Internal Revenue 2 Service Form W-2 or 1099. 3 * * * 4 D. A retail dealer shall enter into an alcoholic beverage delivery agreement 5 with a third party delivery company or a third party platform only when the third 6 party meets all of the following requirements: 7 (1) The third party delivery company or the third party platform is 8 properly registered and authorized to conduct business in Louisiana. 9 (2) The third party delivery company or the third party platform holds a 10 valid Louisiana alcoholic beverage permit issued pursuant to R.S. 26:271.2(1)(j). 11 (3) The third-party third party delivery service company or the third party 12 platform shall maintain a general liability insurance policy with a liquor liability 13 endorsement in an amount no less than one million dollars per occurrence for the 14 duration of the agreement with the retail dealer and shall provide proof of coverage 15 to the retail dealer. 16 (4) The third party delivery company or the third party platform is able 17 to monitor the routes of its employees or agents during alcoholic beverage 18 deliveries. 19 (5) The third party delivery company or the third party platform conducts 20 an interview a screening and a background check of all persons that will deliver 21 alcoholic beverages. 22 E. A retail dealer may pay a third party delivery company or a third party 23 platform a fee for its services and a third party may charge a reasonable delivery fee 24 for orders delivered by the third party delivery company or the third party 25 platform. A third party delivery company properly licensed pursuant to this 26 Section or its authorized agent may act as an agent of a retail dealer in the 27 collection of payments from the sale of alcoholic beverages, but the full amount of 28 each order must be handled in a manner that gives the retail dealer control over the 29 ultimate receipt of the payment from the consumer. A third party delivery 30 company or a third party platform properly licensed pursuant to this Section Page 4 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 178 ENROLLED 1 or its authorized agent may also act as an agent of a retail dealer for the 2 purposes of processing, assembling, packaging, and fulfilling alcoholic beverage 3 orders for delivery from the retailer's licensed premises. No additional permit 4 shall be required of a retail dealer who has contracted with a third party 5 delivery company properly licensed pursuant to this Section for the purpose of 6 processing, assembling, packaging, and fulfilling alcoholic beverage orders for 7 delivery from the retailer's licensed premises. 8 F.(1) The third party delivery company or the third party platform may 9 receive orders and accept payment via the internet or through a mobile application 10 or similar technology. 11 * * * 12 Section 2. This Act shall become effective upon signature by the governor or, if not 13 signed by the governor, upon expiration of the time for bills to become law without signature 14 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 15 vetoed by the governor and subsequently approved by the legislature, this Act shall become 16 effective on the day following such approval. PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 5 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.