§ 16-4-307 — Third-Party Delivery License -- Definitions

16-4-307 . (Effective January 1, 2026) Third-party delivery license -- definitions. (1) An off-premises retail licensee as provided for in 16-4-115 shall sell beer or table wine to the end consumer for personal use only and not for resale. A third-party delivery licensee may not sell beer or table wine to the end consumer. The off-premises retail licensee must have the exclusive authority to determine which beer or table wine is available for delivery and set the prices for these beverages.
(2) (a) The department may issue a third-party delivery license to a third-party delivery applicant if the following requirements are met:
(i) the third-party delivery applicant meets the requirements for an off-premises retail licensee under 16-4-401 to hold a license; and
(ii) the third-party delivery applicant submits an application and pays the initial license fee as provided in 16-4-501 .
(b) Third-party delivery licenses may be renewed annually by June 30 if:
(i) the third-party delivery licensee continues to meet the requirements for an off-premises retail licensee under 16-4-401 to hold a license; and
(ii) the third-party delivery licensee submits a renewal form and the annual renewal fee as provided in 16-4-501 .
(3) A third-party delivery licensee may only deliver or facilitate the delivery of beer or table wine through drivers who:
(a) are an employee or an independent contractor of the third-party delivery licensee;
(b) are at least 21 years of age;
(c) have a valid driver's license for delivery through a motor vehicle or a valid driver's license or a state-issued identification for delivery through bicycle or other means not a motor vehicle;
(d) have not been convicted of a felony, unless the driver's rights have been restored, or a driving under the influence offense in the past 7 years; and
(e) have completed a responsible server and sales training program or a delivery training program under Title 16, chapter 4, part 10, prior to their first alcohol delivery.
(4) Third-party delivery licensees are subject to the penalties provided in Title 16, chapter 4, part 10.
(5) Any beer or table wine sold by an off-premises retail licensee for delivery by or through a third-party delivery licensee must be removed from the off-premises retail licensee's licensed premises only during the hours in which the off-premises retail licensee is permitted to sell alcoholic beverages. The delivery must be completed within an hour after the time that the off-premises retail licensee is required to end sales of alcoholic beverages.
(6) Any beer or table wine unable to be delivered for any reason must be returned to the licensed premises of the off-premises retail licensee that sold the beer or table wine. The driver shall return the beer or table wine to the off-premises retail licensee prior to or at the end of the delivery route, unless the off-premises retail licensee is closed at the time of return, in which case the driver shall return the beer or table wine as soon as practicable. The third-party delivery licensee shall document and maintain a record of the delivery attempt. Drivers may not be compensated based on whether a delivery of beer or table wine results in a completed delivery transaction.
(7) The person to whom the delivery is made must be at least 21 years of age. The driver shall use an identification scanning software technology or an alternative approved by the department to verify the age of the recipient at the time of delivery.
(8) Deliveries may not be made to anyone who is apparently or obviously intoxicated.
(9) The outer packaging containing the beer or table wine being delivered must clearly indicate that the package contains an alcoholic beverage, unless one of the following conditions is met:
(a) the person delivering the order has personally retrieved and bagged or otherwise packaged the beer or table wine for delivery; or
(b) the driver is notified through electronic or other means that the delivery order contains alcohol and that the recipient must be 21 years of age or older.
(10) Beer or table wine intended for delivery by a motor vehicle must be transported in the rear of the motor vehicle and may not be within the immediate arm's length of the driver or within a separate cargo area.
(11) Beer or table wine intended for delivery by bicycle must be in a closed compartment or otherwise out of reach of the bicycle operator.
(12) A licensee under this section may not deliver or facilitate delivery of beer or table wine to the following locations:
(a) a business licensed to sell alcoholic beverages at retail, with the exception of delivery to individual guest rooms of a lodging facility that is also licensed to sell alcoholic beverages at retail;
(b) a location within the campus of an institution of higher education; or
(c) a property that does not have a permanent address that includes a street name and number.
(13) A licensee under this section that delivers or facilitates the delivery of beer or table wine shall maintain books and records reflecting the date, time, address, and recipient of the alcohol delivery for each delivery, the name and address of the person making the delivery, and the name and business address of the off-premises retail licensee selling the alcoholic beverage. Records must be maintained in either hard copy or electronic format for 3 years. Licensees shall make these books and records available to the department and its investigators on reasonable notice from the department.
(14) An off-premises retail licensee may utilize the services of a third-party delivery licensee by means of the telephone, the internet, a mobile application, or other electronic means to facilitate the ordering or delivery of beer or table wine from inventory located at the off-premises retail licensee's licensed premises.
(15) An off-premises retail licensee is not subject to violations of this section that arise out of the delivery of beer or table wine delivered by a third-party delivery licensee.
(16) A violation of this code by a third-party delivery licensee or its drivers subjects the third-party delivery licensee to penalties as provided in 16-4-406 .
(17) Nothing in this section may be construed to require a technology services company to obtain a third-party delivery license if the company does not employ or contract with delivery drivers and instead provides software or an application that connects consumers and off-premises retail licensees for the delivery of beer or table wine from the off-premises retail licensee.
(18) A third-party delivery license is not required for a common carrier lawfully transporting or shipping alcoholic beverages.
(19) The third-party delivery licensee shall maintain a general liability insurance policy in an amount of no less than $1 million for each occurrence with a $2 million aggregate.
(20) The department may adopt rules to implement this section.
(21) As used in this section, the following definitions apply:
(a) "Third-party delivery license" means a license issued by the department to a third-party delivery licensee for the delivery of beer or table wine.
(b) "Third-party delivery licensee" means a person who offers a service to deliver or facilitate the delivery of, but not to buy or sell, beer or table wine in original packaging from an off-premises retail licensee issued a license under 16-4-115 and enters into a written agreement with the off-premises retail licensee for the purpose of delivering beer or table wine sold by the off-premises retail licensee.

Legislative History

En. Sec. 1, Ch. 75, L. 2025.