The face-to-face requirement for retail sales of alcohol beverages and remote orders for the sale of alcohol beverages to be delivered or picked up on retail licensed premises. (FE)

Also under current law, a retail license authorizes only face-to-face sales of alcohol beverages to consumers at the licensed premises. After the sale is made on the licensed premises, if the alcohol beverages are sold for off-premises consumption, the retailer may deliver the alcohol beverages to a location designated by the consumer. The sale to the consumer on the licensed premises is governed by certain requirements, including that the purchaser be of legal drinking age, that the sale be made only during certain hours, and that the licensed premises be supervised by a person holding an operator's (bartender's) license. The licensed premises on which the sale occurs must be particularly described in the retail license issued by the municipality, and each applicant for a retail license must identify in the application the premises where alcohol beverages will be sold.

Delivery This bill allows a Class “A,” “Class A,” Class “B,” or “Class B” licensed retailer to process and fill an online or telephone order for the sale and delivery of alcohol beverages (remote delivery order) if all of the following apply: 1) the products ordered are delivered to the customer by the retailer, by a delivery service under common ownership with the retailer, or by a delivery service that is independent of the retailer and derives less than 50 percent of its annual revenues associated with food and beverage delivery from the delivery of alcohol beverages (third-party delivery service); 2) the retailer, delivery service under common ownership with the retailer, or third-party delivery service making delivery holds an alcohol delivery permit issued by DOR (discussed further below); 3) the products delivered are sold in original, unopened packages or containers, except that a “Class B” licensed retailer may deliver or have delivered intoxicating liquor sold in tamper-evident, licensee-sealed containers (commonly known as cocktails-to-go); 4) full payment for the order is made at the time the order is placed, although a delivery tip is permitted;

5) at the time the order is placed, the customer asserts that the customer is at least 21 years of age and not intoxicated; 6) delivery is completed during hours in which the retailer is allowed to make sales for off-premises consumption; and 7) at the time of delivery and prior to transferring possession of the alcohol beverages to the customer, the individual making delivery examines the customer's identification, verifies visually and by using electronic scanning technology that the customer is at least 21 years of age, and creates a record of this age verification. Age verification records must be retained by the retailer that sold the alcohol beverages for three years. An individual may not deliver alcohol beverages to a customer unless the individual is at least 21 years of age and has successfully completed a responsible beverage server training course or comparable course. Alcohol beverages may not be delivered to a person who is less than 21 years of age or visibly intoxicated. If alcohol beverages are delivered by a third-party delivery service or a delivery service under common ownership with the retailer to an underage person, the delivery service is liable for the violation, and the retailer is not liable if the customer asserted when placing the order that he or she is at least age 21 and not intoxicated.

The bill also prohibits a retailer from 1) entering into an agreement with a producer or wholesaler restricting availability of, or giving availability preferences for, alcohol beverage products offered for sale and delivery by means of remote delivery orders; and 2) charging different prices for these products in comparison with the prices of the same products sold in a face-to-face transaction on the licensed premises, although a retailer may charge an additional fee for delivery.

The bill creates an alcohol delivery permit issued by DOR to retailers, delivery services under common ownership with retailers, and third-party delivery services.

The permit authorizes the permittee to deliver alcohol beverages in connection with remote delivery orders. A permit is valid for one year and has an annual fee of $150 for a retailer and $300 for a third-party delivery service or delivery service under common ownership with a retailer.

Pickup This bill provides that, if a Class “A,” “Class A,” Class “B," or “Class B” licensed retailer receives a remote pickup order for alcohol beverages that the customer will pick up at a parking space that is part of the retailer's licensed premises, the sale of alcohol beverages occurs at the time the customer takes possession of the alcohol beverages at the parking space, regardless of when the customer makes payment.

The bill defines “remote pickup order” as an order for the sale of alcohol beverages in original unopened packages or containers, to be picked up at the retailer's premises, that is placed by telephone or Internet by a customer who asserts at the time of placing the order that he or she is at least 21 years of age. A Class “B” or “Class B” licensee may sell alcohol beverages by remote pickup order only for consumption off the licensed premises, and the customer may take possession of the alcohol beverages only during hours in which the licensee is allowed to make sales for off-premises consumption. The bill also specifies that licensed premises identified in the retail license may include parking spaces associated with a structure described as licensed premises, even if the parking spaces are not contiguous with the remainder of the licensed premises. The bill also prohibits municipalities from adopting ordinances that impose additional restrictions on alcohol beverage sales made by these retailers pursuant to remote pickup orders.