4-203.04

This page contains statute for two Arizona liquor licenses: the "Direct-to-consumer Wine Shipment (Series 17W), followed by the "Direct Shipment (Series 17) (no longer issued).

Statue for the "Direct-to-consumer Wine Shipment (Series 17W):

1. The director may issue a direct shipment license to any winery that holds a federal basic permit issued by the United States Alcohol and Tobacco Tax and Trade Bureau and a current license to produce wine issued by this state or any other state. A farm winery licensed pursuant to section 4-205.04 and a winery holding a producer's license or a limited producer's license issued by this state may also hold a direct shipment license.
2. A person shall apply for a direct shipment license on a form prescribed and provided by the director. The director may charge an application issuance fee to be used for administrative costs associated with the direct shipment license. An application for a direct shipment license shall include:
   1. The address of the premises where the applicant's principal place of business is located.
   2. The name, address and telephone number of an officer of the applicant or an individual who is authorized to represent the applicant before the director.
   3. A complete and full disclosure by the applicant and by any officer, director, administrator or controlling person of the applicant of any criminal convictions in any state or foreign jurisdiction within the five years immediately preceding the application.
   4. The applicant's farm winery license, producer's license or limited producer's license number or, for a winery that is not currently licensed by the state, a copy of the winery's federal basic permit issued by the United State Alcohol and Tobacco Tax and Trade Bureau and a copy of that winery's current license to produce wine that is issued by another state.
   5. The applicant's transaction privilege tax number issued by the Department of Revenue for the payment of transaction privilege taxes and luxury taxes on wine that is sold to purchasers in this state under the license.
3. The director may refuse to issue a direct shipment license for good cause. The director may not issue a direct shipment license to any person who:
   1. has had a direct shipment license or any other license to deal in spirituous liquor revoked in this state or any other state within one year preceding the application.
   2. Has been convicted of a felony in this state or any other state or has been convicted of an offense in another state that would be a felony if convicted in this state within five years immediately preceding the application.
4. A direct shipment license is valid for one year. Direct shipment licenses may not be transferred. A person that holds a direct shipment license may apply for a renewal before the expiration of the person's current license. The director may charge a license renewal fee to be used for administrative costs associated with the direct shipment license, auditing and enforcement.
5. After notice and a hearing pursuant to Title 41, Chapter 6, Article 10, the director may suspend, revoke or refuse to renew a direct shipment license for any violation of this Section or for good cause. Any act or omission of a person who makes a sale or delivery of wine for a licensee under Subsection F of this section is deemed to be an act or omission of the licensee for the purposes of section 4-210, subsection A, paragraph 9. In lieu of suspension, revocation or refusal to renew a license, the director may impose a civil penalty pursuant to section 4-210.01 against a licensee for each violation of this section. The licensee may appeal the finding or decision of the director to the Board. The Board may affirm, modify or reverse the finding or decision of the director.
6. Notwithstanding any other law, a licensee annually may sell and ship nine-liter cases of wine that is produced by the licensee directly to a purchaser in this state pursuant to all of the following:
7. 1. The licensee may sell and ship:
   2. 1. Until December 31, 2017, up to six nine-liter cases of wine.
      2. Beginning January 1, 2018 and until December 31, 2018, up to nine nine-liter cases of wine.
      3. Beginning January 2, 2019 and for each year thereafter, up to twelve nine-liter cases of wine.
   3. The wine may be ordered by any means, including telephone, mail, fax or the internet.
   4. The wine is for personal use only and not for resale.
   5. Before shipping the wine, the licensee shall verify the age of the purchaser who is placing the order by obtaining a copy of the purchaser's valid photo identification as prescribed in section 4-241, Subsection K demonstrating that the person is at lease twenty-one years of age or by using an age verification service.
   6. The wine may be shipped to a residential or business address but not to a premises licensed pursuant to this Title.
   7. All containers of wine shipped pursuant to this subsection shall be conspicuously labeled with the words "Contains Alcohol, Signature of Person Age 21 or Older Required for Delivery".
   8. The licensee may not sell or ship wine to a purchaser pursuant to this Subsection unless the purchaser could have carried the wine lawfully into or within this state.
   9. The delivery must be made by a person who is at least twenty-one years of age.
   10. The delivery must be made only during the hours of lawful service of spirituous liquor to a person who is at least twenty-one years of age.
   11. The delivery must be made only after inspection of the valid photo identification as prescribed in section 4-241, subsection K of the person accepting delivery that demonstrates that the person is at least twenty-one years of age.
   12. Payment for the price of the wine must be collected by the licensee not later than at the time of delivery.
8. A licensee shall:
9. 1. Not later than January 31 of each year, file a report regarding the wine shipped to purchasers in this state during the preceding calendar year that includes the information required in paragraph 2 of this subsection.
   2. Complete a record of each shipment at the time of shipment. The licensee shall ensure that the report provides the following information:
   3. 1. The name of the licensee making the shipment.
      2. The address of the licensee making the shipment.
      3. The license number.
      4. The date of shipment.
      5. The address at which delivery is to be made.
      6. The amount shipped.
   4. On request, allow the director or the Department of Revenue to perform an audit of the records of wine shipped to purchasers in this state. The director may request the licensee submit records to demonstrate compliance with this section. The licensee shall maintain records of each shipment of wine made to purchasers in this state for two years.
   5. Be deemed to have consented to the jurisdiction of the department, any other agency of this state, the course of this state and all related laws, rules or regulations.
   6. Pay the Department of Revenue all transaction privilege taxes and luxury taxes on sales of wine under the direct shipment license to purchasers in this state. For transaction privilege tax and luxury tax purposes, all wine sold pursuant to this section shall be deemed to be sold in this state.
   7. Ship not more than the total number of nine-liter cases of wine authorized under subsection F, paragraph 1 of this section to any purchaser in this state in any calendar year for personal use.
10. A person who knowingly sells and ships wine directly to a purchaser in this state shall be deemed to have consented to the jurisdiction of the department, any other agency of this state, the course of this state and all related laws, rules or regulations. A person who knowingly sells and ships wine directly to a purchaser in this state is guilty of a Class 2 misdemeanor if either:
11. 1. The person does not possess a current direct shipment license.
    2. The person does not possess a current farm winery license for a winery that produces twenty thousand gallons or less of wine in the previous calendar year.
12. Section 4-201 does not apply to licenses issued pursuant to this section.
13. Common carriers, other than railroads as defined in section 40-201, that transport wine into and within this state shall:
14. 1. Keep records of wine shipped to purchasers in this state, including the direct shipment licensee's name and address, the recipient's name and address, the shipment and delivery dates and the weight of wine shipped.
    2. Remit the records kept pursuant to paragraph 1 of this subsection on request of the department.
15. Farm winery licensees under section 4-205.04 that produced twenty thousand gallons of wine or less in the preceding calendar year may ship wine directly to purchasers in this state pursuant to section 4-205.04 and are exempt from the requirements of this section, including the case limitations prescribed in the subsection F of this section.
16. The director shall begin issuing direct shipment licenses pursant to this section not later than January 1, 2017.

Effective August 6, 2016, the "Direct Shipment (Series 17) liquor license" was no longer offered and the language struck from Title 4. For the remaining "Direct Shipment (Series 17) liquor license" that will expire/cease to exist prior to September 2019, this reference remains:

Statue for the "Direct Shipment (Series 17) liquor license (a license which is no longer issued in the state of Arizona):

1. All direct shipment licenses, except direct shipment licenses held by wineries, that are in effect on the effective date of this act shall remain in effect if those licenses are timely renewed. A person that holds a direct shipment license on the effective date of this act and that delivers spirituous liquor other than wine shall continue to make such sales and deliveries in accordance with the version of section 4-203.04, Arizona Revised Statues, that was in existence the day before the effective date of this act.
2. The legislature intends for the continued application of the rules adopted by the department of liquor licenses and control that relate to the delivery of alcohol and that were adopted to prevent the sale and delivery of alcohol to minors. Nothing in this act is intended to affect the continued applicability of rules adopted by the department under section 4-203.04, Arizona Revised Statutes, as repealed by this act, regarding the record of delivery of spirituous liquor by farm wineries or retailers having off-sale privileges.

1. The director may issue a direct shipment license to a person who is engaged in business as a distiller, vintner, brewer, rectifier, blender or other producer of spirituous liquor if the person is licensed in the state where the person's principal place of business is located and the director determines that the person is capable and reliable and is qualified to hold a direct shipment license.
2. A person shall apply for a direct shipment license on a form prescribed by the director. The director may charge an application fee. In addition to other matters required by the director, an application for a direct shipment license shall include:
   1. The address of the premises where the applicant's principal place of business is located and a copy of the applicant's spirituous liquor license in that state.
   2. The name, address and telephone number of an officer of the applicant who is authorized to represent the applicant before the director.
   3. A complete and full disclosure by the applicant and by any officer, director, administrator or controlling person of the applicant of any criminal convictions in any state or foreign jurisdiction within the five years immediately preceding the application.
   4. The names and addresses of the wholesalers licensed in this state through which the applicant will ship spirituous liquor into or within this state.
   5. The number of individual orders of spirituous liquor, if any, that the applicant shipped to wholesalers in this state during the previous three years and the names and addresses of each wholesaler who received the shipments.
   6. A statement that the applicant acknowledges that shipments by the applicant of spirituous liquor into or within this state contrary to this section will result in the immediate suspension of the applicant's direct shipment license.
3. The director may refuse to issue a direct shipment license for good cause. After a hearing, the director may suspend or revoke a direct shipment license for good cause. The director shall not issue a direct shipment license to any person who:
   1. Has had a direct shipment license or any license to deal in spirituous liquor revoked in this state or any other state within one year preceding the application.
   2. Has been convicted of a felony in this state or any other state or has been convicted of an offense in another state that would be a felony if convicted in this state within five years preceding the application.
4. A direct shipment license is valid for three years. Direct shipment licenses may not be renewed or transferred. A person who holds a direct shipment license may apply for a new license not more than ninety days before expiration of the person's current license.
5. A resident of this state who is twenty-one years of age or older may place an order in person, by telephone, mail or catalog or on the internet for spirituous liquor for the person's own personal use with a person who holds a direct shipment license.
6. A person who holds a direct shipment license shall ensure that shipments of spirituous liquor pursuant to this section are made in conformance with all applicable provisions of this title and rules adopted pursuant to this title. A direct shipment licensee who violates this title or rules adopted pursuant to this title is subject to a civil or criminal penalty and suspension or revocation of the person's license.
7. A person who holds a direct shipment license shall deliver spirituous liquor ordered pursuant to subsection E of this section to a wholesaler who is licensed in this state. The wholesaler shall pay all luxury taxes imposed on the shipment pursuant to title 42, chapter 3 to the department of revenue and shall deliver the liquor to a retailer with off-sale privileges who is licensed in this state.
8. The licensed retailer shall deliver the spirituous liquor or shall arrange for the delivery of the spirituous liquor to the person who placed the order and shall collect and pay to the department of revenue all transaction privilege taxes imposed pursuant to title 42, chapter 5. The retailer shall:
   1. Ensure that:
      1. The person making the delivery is twenty-one years of age or older.
      2. The delivery occurs only during the hours that spirituous liquor may be lawfully served in this state.
      3. Deliveries are not made to persons who are obviously intoxicated or are otherwise disorderly.
      4. The person accepting the delivery is twenty-one years of age or older and exhibits an acceptable written instrument of identification pursuant to section 4-241.
   2. Make a record of the delivery at the time of delivery on a form approved by the director of the department of liquor licenses and control. The record shall be retained by the retailer for at least two years and shall include the following information:
      1. The business name, address and license number of the retailer.
      2. The date and time of delivery.
      3. The address where the delivery occurred.
      4. The type, brand and amount of the spirituous liquor delivered.
      5. The printed name and signature of the person making the delivery.
      6. The printed name and signature of the person accepting the delivery, along with the type and serial number of the written identification the person accepting delivery presented.
      7. The age of the person accepting delivery.
   3. Refuse to complete a delivery if the retailer believes that the delivery would violate any applicable provision of this title.
9. If the director has reasonable cause to believe that a person who is licensed pursuant to this section is acting in violation of this section, the director may serve a cease and desist order requiring the person to cease and desist the violation. The director may impose a civil penalty of not more than one hundred fifty thousand dollars against a person who knowingly violates a cease and desist order issued pursuant to this section.
10. Notwithstanding any other law, a person may ship wine as long as all of the following apply:
    1. The wine was purchased while the purchaser was physically present at the winery.
    2. The purchaser of the wine provided the winery verification of legal age to purchase alcohol.
    3. The shipping container in which the wine is shipped is marked to require the signature on delivery of an adult who is of legal age to purchase alcohol and delivery confirmation.
    4. The wine is for personal use only and not for resale.
    5. The winery ships to a residential or business address other than a premises licensed pursuant to this title.
    6. The purchaser could have carried the wine lawfully into or within this state
    7. .
    8. The winery ships not more than two cases of wine per winery to the purchaser in any calendar year.
11. Section 4-201 does not apply to licenses issued pursuant to this section.