Issue Page: Alcohol Delivery

Alcohol Delivery by Restaurants

SB 1450 (Sen. Kelly Hancock - Rep. Chris Paddie)

TRA's Position

TRA supports amendments to the Texas Alcohol Beverage Code to allow the holder of a mixed beverage permit to deliver or have delivered by a third party, an alcoholic beverage from the permitted premises directly to the consumer.

Issue Overview

The rapid growth of delivery and digital ordering promises a bright future for restaurants and the alcohol industry. In the next five years, analysts predict that 25% of all restaurant sales – $200 billion out of the $800 billion industry – will occur through digital channels, with the majority of that being delivery.

There is a strong and growing consumer demand to have alcoholic beverages delivered with their meals. Many people enjoy margaritas with their fajitas, beer with barbeque or a Bordeaux with their steak, which is the one element missing from the current restaurant meal delivery experience.

Limited alcohol delivery is occurring in Texas from package stores, and beer and wine permittees either through third-party delivery apps, or by the retailers themselves. Texas law permits beer and wine to the leave the premises of a beer and wine permittee, but the same authority does not extend to a restaurant with a mixed beverage permit.

With customers increasingly craving convenience and hotels, grocery stores and package stores already permitted to allow alcohol to be taken or delivered off the premises, this legislation will level the playing field for restaurants.  This legislation allows a mixed beverage permittee to deliver or have delivered by a third party, an alcoholic beverage from the permitted premises directly to the consumer (where the sale of the beverage is legal), if:

1) the delivery of the alcoholic beverage is made as part of the delivery of food prepared at the permitted premises;

2) the alcoholic beverage is delivered in a single serving, sealed container; and,

3) the delivery is not made to:

a)  another permitted premises; or

b)  a location where the possession or consumption of alcohol is illegal.

The alcoholic beverage may only be delivered to a person who is 21 years of age or older and the person accepting the delivery must present valid proof of identity and age, and personally sign a receipt acknowledging the delivery. The alcoholic beverage may only be delivered to the person who purchased the beverage or a recipient designated in advance by the purchaser. 

This legislation does not interfere with the three-tier system or expand the service of alcohol to dry areas of the state. Mixed beverage permittees will still be required to purchase their alcohol through the same distribution channels that exist under current law. 

Bill's Intent

This legislation allows the holder of a mixed beverage permit to deliver or have delivered by a third party, an alcoholic beverage from the permitted premises directly to the consumer (where the sale of the beverage is legal), if:

the delivery of the alcoholic beverage is made as part of the delivery of food prepared at the permitted premises;

the alcoholic beverage is delivered in a sealed container; and

3)  the delivery is not made to:

a)  a premises that is permitted or licensed under this code; or

b)  a location where the possession or consumption of alcohol is prohibited by law.

Also, the alcoholic beverage may only be delivered to a person who is 21 years of age or older. The person accepting the delivery must present valid proof of identity and age and personally sign a receipt acknowledging the delivery. The alcoholic beverage may only be delivered to the person who purchased the beverage or a recipient designated in advance by the purchaser or a persona at the address who is 21 years of age or older.

This legislation does not interfere with the three-tier system or expand the service of alcohol to dry areas of the state. Mixed beverage permittees will still be required to purchase their alcohol through the same distribution channels that exist under current law. Furthermore, this bill will not allow alcohol to be delivered to those areas of the state that are not wet for alcohol.

 

Status

SB 1450 was filed on March 4, 2019 by Senator Kelly Hancock. It passed the Senate and the House, and was sent to the Governor May 21st (updated June 4, 2019).