INDUSTRY NOTICE
August 30, 2019
Guidance for Mixed Beverage Permittees on Delivering Alcohol to Consumers ( without a consumer delivery permit )
Beginning September 1, 2019, Texas law allows TABC Mixed Beverage Permittees (MBs), under certain circumstances, to deliver alcohol to their customers located off of the MB’s premises. This guidance provides basic information for conducting these deliveries legally.

Eligibility to Conduct Deliveries : Businesses that hold a Mixed Beverage Permit (MB) along with a Food & Beverage (FB) Certificate may deliver alcohol to their customers, subject to the restrictions below. [1] These businesses may use third parties acting as an agent of the MB, as well as independent contractors holding a Consumer Delivery Permit (CD), to make deliveries on their behalf. Any person making these deliveries must be at least 21 years old.

Restrictions on What May Be Delivered : Qualifying businesses may deliver any number of beers, ales, wines, and/or distilled spirits to their customers ONLY WHEN:
  • Accompanied by a food order that was prepared on the business’s premises;
  • The alcohol is delivered in the original container that was sealed by the manufacturer; and
  • All distilled spirits are delivered in a manufacturer-sealed container that is 375 milliliters or less.

Note: A business may NOT deliver beverages that it pre-mixes and seals itself.

Limits on Where Alcohol May Be Delivered : Deliveries may only be made to a location:
  • Where the sale of that type of alcohol is legal;
  • NOT licensed/permitted by TABC; and
  • Within the county where the business is located, or up to two miles beyond the city limits in which the business is located if that city crosses a county line.

Note: Alcohol may be delivered to a private residence. Alcohol may not be delivered to a customer that is waiting in a parking lot directly or indirectly controlled by the business. This new delivery law does not allow customers to take alcohol to-go from a restaurant.
 
Requirements for Completing the Delivery with the Customer : Recipients of the delivery must not be intoxicated and must present valid proof of their identity that confirms they are at least 21 years old. The delivery person must either acknowledge completion of the delivery on a software application or have the recipient sign a receipt (can be electronic) acknowledging delivery.

TABC’S STREAMLINED PROCESS FOR GETTING APPROVALS

To ensure all interested Mixed Beverage Permittees (MBs) may timely begin delivering alcoholic beverages under Texas’ new law, TABC has streamlined the process for MBs to acquire a Food & Beverage (FB) Certificate.

How to Quickly Get A Food & Beverage Certificate
  1. Check TABC’s Public Inquiry System to determine whether your restaurant already has its FB Certificate.
  2. If a restaurant does not have a FB Certificate, confirm the location’s eligibility:[2] The restaurant’s monthly alcohol sales cannot exceed 60% of the monthly total sales; and the restaurant must have permanent food service facilities for the preparation and service of multiple entrées.
  3. If an eligible restaurant does not currently hold a FB Certificate, it may complete a Location Packet for Reporting Changes for Retailers (L-LRC) for each permitted location. The restaurant must also provide a payment of $776 for each FB Certificate sought. Payments must be made via company check or cashier’s check.
  4. To submit the L-LRC form(s) and the payment(s) to TABC, mail both items along with a cover letter that lists all of the MB permit numbers for which a FB Certificate is sought to P.O. BOX 13127, Austin, Texas 78711.
  5. Upon TABC’s receipt of a completed form and payment, TABC will issue the restaurant a letter of authority via email authorizing alcohol delivery to customers after the agency confirms the restaurant’s eligibility for the FB Certificate.
  6. Restaurants must print their letter of authority and post it next to their existing MB permit.
  7. The FB Certificate expires at the same time the primary permit expires.
 
Note: By signing and submitting the L-LRC form, you are certifying to TABC that your restaurant is eligible to receive a FB Certificate. Your FB Certificate may be cancelled at any time if TABC finds that you do not meet the eligibility requirements. If your FB Certificate is cancelled for such reason, you are ineligible to apply for a new certificate until one calendar year has passed from the initial cancellation.

[1] See Code § 28.1001 for a full listing of all applicable restrictions.
[2] See Code § 28.18 and Rule § 33.5 for all applicable requirements.
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