Impact of Stay At Home Order on Alcoholic Beverage and Tobacco Retailers, Wholesalers, Manufacturers

By Taylor Porter Alcoholic Beverage Licensing and Related Enforcement Issues Practice Team

Please note this article and these rules are current as of March 26, 2020, and may be subject to change.

Stay At Home Order

On Sunday, March 22, Governor Edwards issued a statewide Stay At Home Order, effective Monday, March 23 at 5:00 p.m. to Monday, April 13, unless terminated sooner. The following is a summary of the directives that impact alcoholic beverage and tobacco retailers, wholesalers and manufacturers.

Section 1:  All state office buildings are closed to the public, effective immediately. However, essential state functions shall continue.[1]

Section 2: All gatherings of 10 people or more shall be postponed or cancelled. This does not apply to normal operations at locations like airports, medical facilities, office buildings, factories or manufacturing facilities or grocery stores. This provision may be extended beyond Monday, April 13, by further order.

Section 3: All individuals are directed to stay home unless performing an essential activity. An activity is essential if the purpose of the activity is one of the following:

• A. Obtaining food, medicine, and other similar goods necessary for the individual or a family member of the individual.

* * *

• B. Going to and from the individual’s workplace to perform a job function necessary to provide goods or services being sought in Subsections (A) and (B) or as otherwise deemed essential worker functions. The order refers to the CISA guidance on what constitutes essential workers.[2]

Section 4: The following are deemed nonessential businesses that shall be closed to the public:[3]

• Places of public amusement, including but not limited to, museums, arcades, fairs, carnivals, pool halls, theaters, concert and music halls, racetracks, etc.
• All personal care and grooming businesses, including but not limited to barber and beauty shops, nail salons, spas, massage and tattoo parlors.
• All malls, except for stores in a mall that have a direct outdoor entrance and exit and provide essential services and products as provided by the CISA guidelines.

Businesses closed to the public pursuant to this provision shall not be prohibited from conducting necessary activities such as payroll, cleaning services, maintenance or upkeep as necessary.

Section 5: Any business not covered by the CISA guidance referenced in Section 3 and not ordered to be closed in Section 4 shall reduce operations to continue with minimum contact with members of the public and essential employees. The 10-person limitation on gathering size applies to such business operations.

Stay At Home Order – Clarification re: Essential Services

In conjunction with the Stay At Home Order, the Governor’s office issued an illustrative list of business categories that have been deemed consistent with the CISA guidance on critical infrastructure. Notably, the following are listed:

• Hotels and motels, to the extent used for lodging and delivery or carry-out food services.
• Manufacturing companies, distributors, and supply chain companies producing and supplying essential products and services in and for industries such as food and beverage.[4]
• Businesses that sell, manufacture, or supply other Essential Businesses and Operations with the support or materials necessary to operate, including food and beverages.[5]

Stay At  Home Order – Clarification re: Tobacco/Vape Wholesalers and Retailers

As outlined in a notice published on March 24, the ATC has determined that the Governor’s Stay At Home Order requires closure of all tobacco retailers and vape shops that are not part of a grocery store, gas station/convenience store or pharmacy/drug store. Retailers may continue to offer online sales of vape or cigar products but must continue to restrict public access and to practice social distancing with employees. Delivery of cigarettes remains prohibited under Louisiana law.

Tobacco or vape wholesalers may continue to sell their products in bulk to retail customers. Wholesalers must restrict access to their permitted premises to the public and customers, and no more than two (2) customers are allowed inside the business at the same time. The ATC urges wholesalers to implement curbside pick-up of orders to avoid physical contact with customers.

State ATC

ATC State Office Closures and Operations

The state ATC will remain open during the Stay At Home Order, but only with essential employees. No in-person customer visitation will be allowed at any of the ATC offices during the Stay At Home Order.

New permit applications may be submitted by mail or by email to atc-business@atc.la.gov.

ATC requests that all permit holders complete renewal applications online or return via mail. All state permits due to expire in March are granted an extension to April 30. [6] Permit holders are still responsible for submitting renewal applications.

At this time, application fees should be mailed to Louisiana Office of Alcohol and Tobacco Control, 7979 Independence Boulevard, Suite 101, Baton Rouge, LA 70806. Online payment may be an option at a later date.

Applications are currently being considered in the following order of priority:

• Restaurant delivery permits
• Permits for essential businesses which are allowed to stay open
• Permits for nonessential/temporarily closed businesses. 

ATC is not issuing special event permits until further notice.

Restaurant Delivery and Take-out

Until April 16 (or later, if extended by the Commissioner), the ATC will allow Class AR (restaurant) permit holders to sell or offer for sale pre-packaged beer and/or wine through drive-thru or curbside pick-up. No additional permit application, fees or notification are required for Class AR permit holders to commence these sales.[7]

Businesses (Class AR or Class B permit holders) that intend to deliver off-site or direct to residential homes must hold a delivery permit. The ATC will prioritize the processing of all delivery permit applications filed by businesses seeking to provide delivery service during the Stay At Home Order.[8] The ATC is also offering businesses the option to request a temporary alcohol delivery permit that is valid for 35 days unless otherwise granted by the Commissioner. The application procedure is the same as the procedure for an annual alcohol delivery permit, but the fee is reduced from $250.00 to $100.00.

Business Closure Procedures and Requirements

• A business temporarily closing because of the virus does not have to notify the ATC.
• There is not a maximum time a business can be closed in order to be able to reopen once deemed safe to do so.
• A business that temporarily closes can keep its inventory on site as long as the inventory is stored securely.
• A business that temporarily closes does not need to notify its vendors.

ATC counsel also advised, generally, that the ATC would not be penalizing any business that is closed during the pandemic.

ATC Extends Liquor Credit 45 Days for Bars and Restaurants Who Have Ceased Operations

The ATC has issued notice that it will work with wine and spirit wholesalers to extend short term credit sales with bars (Class AG) and restaurants (Class AR) from 15 to 45 days, or until 4/30/20.

Generally, under La. R.S. 26:148, retailers are prohibited from purchasing wine or spirits from wholesalers for any consideration other than cash or on terms requiring payment not later than the 15th day following the date of the delivery.

To help bars and restaurants that have ceased operations per the Governor’s 3/16/20 Order, the ATC is granting an extension until 4/30/20 to make full payment to wine and spirit wholesalers. During this period, these retailers will not be deemed to be in default and will not be subject to cash only delivery orders.

However, if a business resumes operations by reordering products prior to 4/30/20, past due invoices shall be due upon delivery of products.

ATC Temporarily Allows Retailers to Use Credit Cards to Purchase Alcohol from Wholesalers

The ATC has issued notice that it will work with retailers and wholesalers to allow for credit card transactions.

Generally, under Louisiana law, the sale of alcoholic beverages from a wholesale dealer to a retailer “shall be made only for cash,” with cash sales being defined as consideration in the form of currency or coin, check, cashier’s check, certified check or bank money order.

On a temporary basis (no specific date(s) provided), the ATC will permit retailers to pay alcoholic beverage wholesalers through a credit card issued by a third party with the caveat that acceptance of such credit card payments by wholesalers in this instance is at their discretion.

Local Jurisdictions

The following is information received from major local jurisdictions in the state regarding the impact of the Stay At Home Order on local permitting.

Baton Rouge

The office of the East Baton Rouge Alcoholic Beverage Control (“EBR ABC”) staff will work to reasonably accommodate the EBR ABC’s alcohol permit holders and applicants within during this emergency.  Existing temporary permits will be extended until further notice.

Office Closures and Operations

As of March 23, the East Baton Rouge Parish ABC office is currently closed to the public and restricted to essential City-Parish personnel through April 6 or until further notice.  Applications and fees can be mailed to the physical address below where a staff member is going twice a week to check the mail or can email it to a staff member.  Fees should be in the form of money order or cashier’s check.

• EBR ABC: 9048 Airline Hwy, Baton Rouge, LA 70815

All City-Parish permitted public events have been suspended until further notice.

The EBR ABC does not anticipate relaxing any requirements of ancillary documents such as state and local tax clearances as the relative departments have essential employees in place to maintain the normal course of work. The EBR ABC, however, will work with permit applicants and holders to adjust as needed.

Restaurant Delivery and Take-out

The East Baton Rouge Parish ABC office is following the state ATC with respect to approval of restaurants to sell alcohol with to-go/curbside pick-up orders, as well as the allowance of delivery (if permitted by the state).

Bossier Parish

Office Closures and Operations

The Bossier Parish courthouse is closed to the public but staff in the office of the Bossier Parish Police Jury (“BPPJ”) is in the office and working to take care of business as usual.  Should someone need to submit an application, they should call (318)965-2329 to obtain necessary information and documentation.  The application and fees should be mailed as follows.

• By U.S. mail to “Bossier Parish Police Jury, P.O. Box 70, Benton, LA 71006. 

Permit Renewals

Renewal notices typically go out no later than October 1, and renewal applications are returned through the mail.  At this time, BPPJ does not anticipate any change in that schedule.

The BPPJ does not anticipate relaxing any requirements of ancillary documents such as local and state sales tax clearances.  All documents normally required to accompany applications can currently still be obtained, barring a total shutdown of government.  Should that occur the BPPJ will make decisions as necessary to ensure the process runs as smoothly as possible.

Restaurant Delivery and Take-out

The BPPJ has not taken a formal position on this matter but the Parish will follow the state ATC with respect to take-out/delivery of wine & beer from restaurants with food orders as set forth in the Commissioner’s Notice until further notice.

Jefferson Parish

Office Closures and Operations

Jefferson Parish Sheriff’s Office (“JPSO”) is closed to the public, but is operational and can be reached by phone. Permit applications and tax returns can still be filed online or by mail. 

Permit Renewals and Tax Returns

There are no blanket extensions in Jefferson Parish.  If a taxpayer could not file & pay February 2020 sales tax on time, which was due on March 20, 2020, then they need to file a paper return, check and a letter explaining their circumstances.  We are taking those issues on a case by case basis. 

Business Operations

JPSO will not regulate or close any permits during this time. 

Lafayette

Office Closures and Operations

The Office of Alcohol & Noise Control (“ANC”) is currently closed. Applications and all documents should be emailed to either smdavis@lafayettela.gov or astiner@lafayettela.gov. Inquiries regarding fees owed should also be directed via email.

Original documents and payment can be mailed to Alcohol & Noise Control, ATTN: Sabrina/Azara, 220 W. Willow St. Building D, Lafayette, LA 70501, or they may be hand delivered at the time the permit is ready to be issued.

Permits can be issued during the office closure. This will be coordinated through Sabrina Davis or Azara Stiner.

Permit Renewals

ANC has not made a determination regarding extension of deadlines for local alcohol permit renewals in recognition of the various closures?

At this time, ANC does not anticipate the relaxation of any requirements related to the acceptance of an application or renewal, in recognition of the various closures.

Restaurant Delivery and Take-out

ANC will be following all orders issued regarding the sale of alcoholic beverages from the state ATC, including but not limited to, the orders governing restaurant delivery and take-out.

Temporary Closure Procedures and Requirements for Businesses

If a business closes (either by choice or as mandated by the Governor’s current Stay At Home Order):

• The business does not have to notify ANC. All alcoholic beverage permits will remain as an active permit until the expiration of their current permit.
• There is not a maximum time ANC will allow a business to be closed in order to continue operating under its existing license once the business is able to reopen. Again, all alcoholic beverage permits will remain as an active permit until the expiration of their current permit.
• ANC will allow a business to keep its inventory on site during the temporary closure as long as the inventory is secure.

New Orleans

Office Closures and Operations

As of March 19, all in-person visits to City Hall have been suspended. This suspension will not impact the public’s ability to apply for and receive permits and licenses.

ABO permit applications and supporting documents should be emailed to alcoholpermits@nola.gov.

Business license applications and supporting documents should be emailed to: businesslicenseinfo@nola.gov.

Payments may now be made online through the One Stop App. Once an application is processed, the applicant (or contact listed on the application) will receive an email with a link to the One Stop App to submit payment. The business will need to have a registered account with the One Stop App. Payment can also be delivered to City Hall, but the One Stop Department is not accessible to visitors.

Permit Renewals

The deadline to file ABO permit renewal applications has been extended from April 1 to May 1.

Special event permits are not being issued at this time.

Restaurant Delivery and Take-out

The One Stop Department approves of the delivery and take-out sales allowed by the state, as long as there is no consumption of alcoholic beverages on the premises and no congregating on the premises. The city Zoning Department has likewise agreed that restaurants may sell packaged wine and beer with take-out orders.

Temporary Closure Procedures and Requirements for Businesses

Businesses do not have to notify One Stop (Safety and Permits Department) of temporary closure. One Stop has advised generally that it will follow state ATC procedures and requirements for temporary business closures. There are no specific guidelines for reopening. However, any non-conforming (i.e., closed) businesses that hold alcohol permits should take note that, while non-confirming use abandonment is tolled during the declared emergency, it resumes once the emergency is over.

The Bureau of Revenue does not require notification of temporary closure. There is not a maximum time Revenue will allow a business to be closed in order to continue operating under its existing license once the business is able to reopen. Businesses are allowed to operate as long as the occupational license is valid for the remainder of the year. For the months where there has been no activity, a “zero” sales tax return should be filed. For months before the Stay At Home Order, where taxes have already been collected from customers on retail sales, those tax returns should be filed. Payments can be submitted online.

Ouachita Parish

The office of the Ouachita Parish Police Jury (“OPPJ”) Business License staff will work to reasonably accommodate the OPPJ’s alcohol permit holders and applicants within during this emergency.

Office Closures and Operations

The OPPJ is expected to remain open.  In the event the office is closed completely, applications and fees may be submitted

• By U.S. mail to “Ouachita Parish Police Jury, P.O. Box 3007 Monroe, LA 71210.  Attn: Business Licenses”
• By FedEx to “Ouachita Parish Police Jury, 300 South Grand Street, Room 201 Monroe LA 71201.”

Permit Renewals

All alcohol permits issued by the OPPJ are on calendar year (Jan. 1 – Dec. 31) basis.  Renewal notices typically go out in October, and renewal applications are typically due before the second week of December.  At this time, OPPJ does not anticipate any change in that schedule.

The OPPJ does not anticipate relaxing the requirement that local and state sales tax clearances be filed with renewals.  If applications are received for any new permits during the ongoing emergency declaration, it is possible some accommodation might be made, such as allowing a conditional approval subject to the receipt of sales tax clearance certificates at some future date.  However, that issue has not yet been addressed.

Restaurant Delivery and Take-out

The OPPJ will follow the state ATC with respect to take-out/delivery of wine & beer from restaurants with food orders as set forth in the Commissioner’s Notice.

Shreveport

Office Closures and Operations

The Shreveport ABO Office (“ABO”) is currently closed to the public.  The ABO is not processing any applications until or after April 13, 2020.  Applicants may still mail permit requests to the ABO office but they will not be processed until the ABO returns to normal operations.  Should someone want to submit an application, the application and fees should be mailed as follows.

• By U.S. mail to “Shreveport Police Department, Attn: Office of Special Investigation, 1234 Texas Avenue, Shreveport, LA 71101.”

The application may also be emailed to James Cisco, and a new online payment option has been established.

Permit Renewals

The Shreveport ABO temporarily suspended ABO processing and will be extending deadlines for local alcohol permit renewals.  As of March 21, 2020, plans are to resume operations on April 13, 2020.  The ABO will work with businesses and ABO permit holders to allow for a suitable amount of time to renew permits after the ABO resumes full operation. 

The local Revenue Department approves applicants based on taxes and other revenue which may be outstanding. This Department does not anticipate relaxing any requirements of ancillary documents such as local and state sales tax clearances, as they anticipate being able to check compliance during this time.

Restaurant Delivery and Take-out

Shreveport will follow the state ATC with respect to take-out/delivery of wine & beer from restaurants with food orders as set forth in the Commissioner’s Notice until further notice. No city permits are required for the relaxed delivery options.

Slidell

Office Closures and Operations

The City of Slidell governmental offices are currently closed to the public. Correspondence and payment related to alcohol applications should be submitted

• By U.S. mail to “City of Slidell, Department of Finance, P.O. Box 828, Slidell, LA 70459” or
• To a drop box located in the parking lot behind the mayor’s office located at 2055 2nd Street, Slidell, LA 70458

Permit Renewals

At this time, the City of Slidell, Department of Finance, does not anticipate any change in the regular renewal schedule.

The Department of Finance also does not anticipate relaxing the requirement of any ancillary documents to be filed with applications or renewals, absent any changes in state law.

Restaurant Delivery and Take-out

The City of Slidell has not definitively spoken on this issue but is expected to follow the state ATC with respect to take-out/delivery of wine & beer from restaurants with food orders as set forth in the Commissioner’s Notice.

Temporary Closure Procedures and Requirements for Businesses

The City of Slidell will only require notice of a permanent business closure. The City of Slidell will allow a business to keep its inventory on site during temporary closure, as long as the inventory is secure. There is not a maximum time the City of Slidell will allow a business to be closed in order to continue operating under its existing license once the business is able to reopen.

St. Tammany Parish

Office Closures and Operations

Applications can be submitted in email to permits@stpgov.org but originals must follow in the mail stating Attn: Alcohol Permit Renewal.

Fees must be paid with a check and submitted with the permit renewal application.

Permit Renewals

At this time, St. Tammany Parish does not anticipate any extension of deadlines for local alcohol permit renewals in recognition of the various closures.

At this time, St. Tammany Parish does not anticipate the relaxation of any requirements related to the acceptance of an application or renewal applications, in recognition of the various closures.

Restaurant Delivery and Take-out

St Tammany Parish typically follows state guidance but reserves the right to act in its own best interests.

FOOTNOTES

[1] See below for more information on ATC office closures and operations under this Order, as well as local jurisdiction office closures and operations.
[2] The CISA memorandum can be found here. Notably, workers/employees of the following are listed as essential:

• Groceries, pharmacies and other retail that sells food and beverage products
• Restaurant carry-out and quick serve food operations
• Retail fuel centers such as gas stations and truck stops

See below for more information regarding ATC permitting procedures for alcoholic beverage sales and service with restaurant delivery and take-out.

[3] This list is in addition to the businesses that were already ordered to close on March 16:

• Casinos, video poker establishments, movie theaters, bars, bowling alleys, fitness centers and gyms
• Restaurants, cafes and coffee shops (limited to take-out, drive-thru and delivery service)
• Hotel restaurants (limited to service to registered hotel guests via room service)

[4] The Order does not make a distinction between alcoholic and non-alcoholic beverages.  We have spoken with legal counsel at the Louisiana ATC, and she confirmed that alcohol manufacturers and distributors do not have to stop business.  They should not, however, be open to the public, so to the extent they have a tasting room, normally offer on-premises consumption, or offer packaged sales for off-premise consumption, this should cease.
[5] See Footnote 4.
[6] This includes permits issued to businesses in Allen, Beauregard, Calcasieu, Cameron, Jefferson Davis, Vermilion and Vernon parishes
[7] There are no permits in Louisiana that would otherwise allow drive-thru or curbside pickup of alcoholic beverages (except for drive-thru daiquiri shops and grocery pick-up). So, if and when this temporary dispensation ends, there will be no mechanism for valid drive-thru or curbside pick-up of alcoholic beverage sales from restaurants.
[8] Only W-2 employees of the permit holder may make alcohol delivery in Louisiana.

The Taylor Porter Alcoholic Beverage Licensing and Related Enforcement Issues Practice Group continues to monitor the legal developments pertaining to COVID-19. Please let us know how we can help you in any way to answer your questions about your operations may be impacted.

Practice Attorneys

Richard B. Easterling
Kathryn C. Goodson
Erin Sayes Kenny
Michael S. Walsh