La. Admin. Code tit. 55 § VII-807

Current through Register Vol. 50, No. 11, November 20, 2024

Section VII-807 - Third Party Alcohol Delivery Service Permit

A. Third party alcohol delivery service companies desiring to deliver alcohol to consumers in connection with a delivery agreement with a retail dealer possessing valid class AR or B retail permits shall first apply for and obtain a class T third party alcohol delivery permit pursuant to this particular regulation (§807) and they shall adhere to the following requirements in addition to the general requirements otherwise enumerated in this chapter:

B. The commissioner of Alcohol and Tobacco shall collect an initial and annual fee for third party alcohol delivery service permits in the amount of $1,500 and same shall expire and be renewable annually from date of first issuance.

C. Third party company or platform may enter into an alcoholic beverage service delivery agreements with retail dealers possessing valid class AR or B retail permits with the Office of Alcohol and Tobacco Control that provide for the use by the retailer of an internet or mobile application or similar technology platform to facilitate the sale of alcoholic beverages for delivery to consumers for personal consumption and the third party alcohol delivery service permittee may deliver the alcoholic beverages so facilitated to the consumer.

D. Only malt beverages, sparkling wine, and still wine, as defined in R.S. 26:2 and 241 may be offered for delivery by third party delivery companies from the licensed premises of a restaurant Class AR permit holder. Alcoholic beverages as defined by R.S. 26:2(1) and 26:241(1)(a) may be offered for delivery by a third party delivery permittee from the licensed premises of package house-class B permit holder. No alcoholic beverages shall be offered for curbside pickup unless otherwise authorized under the law or a separate rule or guidance. All delivery orders containing alcoholic beverage shall also contain food.

E. No alcohol shall be delivered more than 10 miles from the place of purchased for any parish having a population greater than 100,000 according to the latest federal decennial census. Additionally, no alcohol shall be delivered more than 25 miles from the place of purchase for any parish having a population of less than 100,000 according to the latest federal decennial census.

F. No alcohol shall be purchased or sold by the third party delivery service. The third party delivery service is prohibited from charging a markup price for alcohol sales, however third party delivery service may charge a reasonable delivery fee. All transactions must be completed by the retail dealer.

G. Third party company or platform shall be licensed to do business in the state of Louisiana, use their own employees or agents for which the third party delivery company or the third party platform is required to file an Internal Revenue Service Form W-2 or 1099 for delivery, be able to monitor the routes of their employees during deliveries, and conduct screenings and background checks of all employees that will deliver alcoholic beverages.

H. Third party company or platform shall maintain a general liability insurance policy with a liquor liability endorsement in an amount no less than $1,000,000 per occurrence for the duration of every agreement maintained with a retail dealer and they shall provide proof of coverage to every retail dealer with whom they have an agreement and notice to the retail dealer and the commissioner of the Office of Alcohol and Tobacco Control if the coverage lapses or is cancelled.

I. The retail dealer shall manage and control the sale of alcoholic beverages and shall accept or reject all orders placed for alcoholic beverages through the third party delivery service permittees internet or mobile application or similar technology, collect and remit all applicable state and local taxes, determine the alcoholic beverages offered for sale through the third party delivery service permittees internet or mobile application or similar technology, and determine the price at which alcoholic beverages are offered for sale or sold through the third party delivery service permittees internet or mobile application or similar technology.

1. Any credit or debit card information provided by a consumer to the third party permittee for the purpose of transacting a purchase with a retail permittee shall automatically be directed to the retail permittee to ensure that the retail permittee is:

a. the retail dealer at the time of purchase;

b. is shown on the receipt; and

c. receives the payment from the consumer.

2. A retailer may enter into a contract with a third party for a fixed fee for services, but the fee shall not be based on a percentage of the total receipt as required in R.S. 26:308(E).

J. The third party alcohol delivery service permittee may not markup the price of alcoholic beverages and may not sell or resell alcoholic beverages. The third party delivery company or platform may charge retailer dealers a reasonable delivery fee for the orders delivered by the third party and may act as an agent for the retail dealer in the collection of payments from the sale of alcoholic beverages, but the full amount of each order must be handled in a manner that gives the retail dealer control over the ultimate receipt of the payment from the consumer.

1. At the time of delivery, alcoholic beverages shall be priced at the same or equal price as if offered for sale by the retailer directly from its licensed location.

2. Alcoholic beverages prices advertised higher than those offered directly by retailers and/or receipts of alcohol beverages for sale listing prices higher than that offered directly by retailers through third party companies or platforms shall be deemed an impermissible mark-up.

3. The retailer is responsible for ensuring that the price of the alcoholic beverage product on the third party application is the same as the price the product is advertised and sold at retail by retail dealer. A contract with a third party shall not dictate the price the retailer sets for the alcoholic beverage product. The retailer and the third party shall comply with the requirements of R.S. 26:150, R.S. 26:153 (C)(3) and R.S. 26:308(C)(12)(b).

4. If the retailer gives good faith notice to the third party of a price discrepancy between the beverage product on the third party application and the product as advertised and sold at retail by retail dealer, the third party is responsible for correcting the error on the third party application within a reasonable time. Good faith compliance with statutory regulation is required as a condition of continued good standing and approval of a class D-T third party alcohol delivery permit.

5. The third party delivery company must notify the retailer in writing that the retailer is prohibited from profit sharing with the third party and is prohibited from paying a percentage of the total receipts for alcoholic beverages as a requirement of any contract with the third party. The retailer and the third party shall comply with the requirements of R.S. 51:411, R.S. 51:1402, and R.S. 51:1405.

K. The third party alcohol delivery service permittee may receive orders and accept payment via the internet or through a mobile application or similar technology.

L. At the time of delivery of alcoholic beverages, the third party alcohol delivery service permittee shall obtain the recipients signature and verify the age of the recipient through the use of an electronic age verification device or combination of devices that shall be approved by the Commissioner of Alcohol and Tobacco Control. Such devices shall be capable of all of the following:

1. Verifying proof of age through technology of a magnetic card reader or an alternative technology capable of verifying proof of age;

2. Reading a valid state-issued drivers license, a valid state-issued identification card, a valid military identification card, or a valid passport;

3. Storing the recipients name, age, date of birth, the expiration date of the identification, and the date and time that the identification was scanned;

M. A third party alcohol delivery service permittee who delivers alcoholic beverages, but fails to comply with the provisions of section I immediately above §801(L) and any other applicable rules contained in this chapter, shall be vicariously liable for damages incurred as a result of the failure to comply.

N. Third party alcohol delivery service permittees must maintain and provide the commissioner of Alcohol and Tobacco Control with a list of retailers they have entered into agreements with within 60 days of receiving their permit and at each renewal. An up-to-date version of the retailer list shall be made available upon demand by the commissioner and her agents and assigns.

La. Admin. Code tit. 55, § VII-807

Promulgated by the Department of Revenue, Office of Alcohol and Tobacco Control, LR 4783 (1/1/2021), Amended LR 4873 (1/1/2022).

AUTHORITY NOTE: Promulgated in accordance with R.S. 26:307 and R.S. 26:308.