4-203.04. Direct shipment license; issuance; fee; requirements; penalties; cease and desist orders
A. 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.
B. 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 that 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.
C. 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.
D. 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.
E. 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.
F. 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.
G. A person who holds a direct shipment license shall deliver spirituous liquor ordered pursuant to subsection E of this section to a wholesaler that 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 that is licensed in this state.
H. 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:
(a) The person making the delivery is twenty-one years of age or older.
(b) The delivery occurs only during the hours that spirituous liquor may be lawfully served in this state.
(c) Deliveries are not made to persons who are obviously intoxicated or are otherwise disorderly.
(d) 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:
(a) The business name, address and license number of the retailer.
(b) The date and time of delivery.
(c) The address where the delivery occurred.
(d) The type, brand and amount of the spirituous liquor delivered.
(e) The printed name and signature of the person making the delivery.
(f) 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.
(g) 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.
I. 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 per violation against a person who knowingly violates a cease and desist order issued pursuant to this section.
J. 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. The winery ships not more than two cases of wine per winery to the purchaser in any calendar year.
K. Section 4-201 does not apply to licenses issued pursuant to this section.
L. Common carriers other than railroads as defined in section 40-201 that ship spirituous liquor in this state shall:
1. Keep records of spirituous liquor shipped to persons in this state, including the shipper's company and address, the recipient's name and address, the shipment and delivery dates and the weight of spirituous liquor shipped.
2. Remit the records on request of the department.Section: Previous 4-201 4-201.01 4-202 4-203 4-203.01 4-203.02 4-203.03 4-203.04 4-203.05 4-204 4-205 4-205.01 4-205.02 4-205.03 4-205.04 Next
Last modified: October 13, 2016