Alaska Governor Mike Dunleavy signed comprehensive alcohol reform legislation (SB 9) into law on June 16, 2022, which provides for limited, regulated, tax-paid wine shipping by wineries of all sizes in the United States that obtain a license from the Alaska Alcohol Beverage Control (ABC) board. This omnibus bill was the culmination of 10 years of work by a stakeholder group of more than 100 participants including Wine Institute. During the 2022 legislative session, amendments were included with the strong backing of the Alaskan public health community to drastically reduce the stakeholder agreed-upon annual DTC quantity limit from 12 cases to 3 cases annually and its unique 6-case single transaction limit to 1 case. Wine Institute was successful in amending the bill to revert back to a 12-case annual quantity limit plus allow the sale of 2 cases per single transaction. Under the new statute, wineries will have to obtain a manufacturer direct shipment license costing $200 biennially. It also includes safeguards to prevent wine shipping to minors and prohibits shipments to an address with a zip code in a dry local option area. The ABC is required to compile a list of zip codes for public inspection that are located within a local option area and notify the holder of a manufacturer direct shipment license of any change to the list. The new law becomes effective on Jan. 1, 2024. Wine Institute will continue to keep members informed on developments.
Alaska SB 9 – Requirements for DTC license (Sec. 04.09.370) effective January 1, 2024
- Creates a new manufacturer direct shipment license costing $200 biennially
- Copies of state license and TTB basic permit must be submitted with the application
- Prohibits shipments to an address with a zip code in a dry local option area
- The Alaska Alcohol Beverage Control (ABC) board shall compile a list of zip codes for public inspection that are located within a local option area and notify the holder of a manufacturer direct shipment license of any change to the list.
- The license holder cannot sell more than 18 liters of wine to a purchaser in one transaction or more than 108 liters of wine to a purchaser in a calendar year. (There is no production cap for wine.)
- Common Carriers must be approved by the ABC board.
- The license must verify that the person submitting the order is at least 21 years of using an age verification service or other method, and that the named recipient of the shipment, if not the same person as the person submitting the order, is at least 21. Label each package as containing alcohol and adult signature required upon delivery
- Provide written or electronic information to the person submitting the order on fetal alcohol syndrome and fetal alcohol effects resulting from a woman’s consumption of alcohol during pregnancy.
- Retain records for at least two years
- Applicants for a DTC license are exempt from background checks and fingerprint requirements.
- DTC shipments are subject to the state excise tax. Monthly reports and payments must be submitted to the Department of Revenue (DOR).
Beer & Distilled Spirits Volume Limits & Production Caps
- Only brewers that do not produce more 300,000 barrels annually are eligible for license
- Only distillers that do not produce more than 50,000 proof gallons in total of distilled spirits annually are eligible for license
- The license holder cannot sell more than 1.5 liters of distilled spirits to a purchaser in one transaction and more than 4.5 liters of distilled spirits to a purchaser in a calendar year.
- The license holder cannot sell more than 288 ounces of beer to a purchaser in one transaction and more than 288 ounces of beer to a purchaser in a calendar year.
Common Carrier Approval & Reporting
- A common carrier must apply to the ABC board for approval
- Verify that the person accepting the delivery is 21 or older and obtain their signature
- Board may require common reporting or request records for audit
- Unapproved common carrier transport or delivery of alcoholic beverages is a violation and subject to a fine of $500
- State to provide a list of approved zip codes