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State Statutes Governing Direct Shipment of Alcoholic Beverages to Consumers: Precedents for Regulating Tobacco Retail Shipments

Lisa F. Kinney

University of Virginia

School of Law


An important issue in contemporary tobacco control is the regulation of the conditions under which it is permissible for internet retailers or mail-order companies to ship tobacco directly to consumers. Given the difficulty of policing Internet tobacco transactions and constitutional barriers to additional, state-imposed delivery requirements, the only practical way to effectively regulate online tobacco retailers is through legislation prohibiting both online tobacco sales and direct shipment of tobacco products to consumers. Statutes restricting direct shipment of alcoholic beverages provide a precedent for such legislation because most states either explicitly prohibit direct shipment to consumers or do so practically by requiring that all transactions for alcoholic beverages take place within the state’s licensed distribution system. Under a similar legislative scheme, shipment of tobacco products would be restricted to licensed wholesale or retail outlets, and consumers would only be permitted to purchase these products only in face-to-face transactions in licensed retail settings. Such legislation would be effective at a state level, as the New York statute banning direct shipment has demonstrated (Brown & Williamson Tobacco Corp. v. Pataki, 2003), or at a federal level, enforceable by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

To facilitate a better understanding of the range of mechanisms available for the regulation of online and mail-order tobacco purchases, the following pages review state statutes regulating shipments of alcoholic beverages. Of the states that ban alcohol shipment directly to consumers, most have enacted such prohibitions with respect to all alcoholic beverages, including wine, beer, and liquor. State statutes restricting direct shipment to consumers typically require that individuals importing alcoholic beverages from outside the state hold a commercial wholesaler’s or importer’s license.1 Under tiered distribution systems, manufacturers may sell alcoholic beverages to licensed wholesale distributors, who may sell to retailers, who, in turn, make the products available to consumers. By requiring that all direct shipments take place within this system,

1

Ark. Code Ann. § 3-7-106 (2005); Cal. Bus. & Prof. Code § 23661 et seq. (2005); Colo. Rev. Stat. § 12-47-901 (2004); Del. Code Ann. tit. 4, §§ 501, 526 (2005); Fla. Stat. Ann. § 561.545 (2005); Ga. Code Ann. § 3-3-32 (2004); Idaho Code §§ 23-102, 23-1055 (2005); 235 Ill. Comp. Stat. 5/6-29.1 (2005); Ind. Code Ann. § 7.1-5-11-1.5 (2004); Iowa Code § 123.22 (2004); Kan. Stat. Ann. §§ 41-104, 41-306 (2005); Ky. Rev. Stat. Ann. § 244.165 (2004); La. Rev. Stat. Ann § 26:359 (2005); Me. Rev. Stat. Ann. tit. 28, § 2077-B (2004); Md. Code Ann., art. 2B, § 16-506.1 (2004); Mass. Ann. Laws ch. 138, § 18 (2005); Mich. Comp. Laws Ann. § 436.1203 (2005); Minn. Stat. § 340A.3021 (2004); Miss. Code Ann. § 97-31-47 (2005); Mont. Code Ann. § 16-3-101 (2004); N.J. Stat. Ann. § 33:1-2 (2005); N.M. Stat. Ann §§ 60-7A-3, 60-7A-4 (2004); N.Y. Alco. Bev. Cont. Law § 102 (2005); N.C. Gen. Stat. §§ 18B-102, 18B-102.1, 18B-109 (2004); Ohio Rev. Code Ann. § 4301.19 (2005); Okla. Stat. Ann. tit. 37, § 505 (2004); Or. Rev. Stat. § 471.405 (2003); Pa. Stat. Ann tit. 47, § 4-491 (2004); R.I. Gen. Laws § 3-4-8 (2005); S.C. Code Ann. § 61-2-175 (2004); S.D. Codified Laws § 35-4-66 (2004); Tenn. Code Ann. § 57-3-402 (2004); Tex. Alco. Bev. Code Ann. § 107.07 (2004); Utah Code Ann. § 32A-12-504 (2005); Va. Code Ann. § 4.1-310 (2005); Wash. Rev. Code Ann. § 66.12.030 (2005); Wash. Admin. Code §§ 314-36-020, 314-68-050 (2005); W. Va. Code Ann. §§ 60-1-4, 60-1-5 (2005); Wis. Stat. §§ 125.30, 125.58 (2004); Wyo. Stat. Ann. § 12-2-204 (2004).



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Ending the Tobacco Problem: A Blueprint for the Nation I State Statutes Governing Direct Shipment of Alcoholic Beverages to Consumers: Precedents for Regulating Tobacco Retail Shipments Lisa F. Kinney University of Virginia School of Law An important issue in contemporary tobacco control is the regulation of the conditions under which it is permissible for internet retailers or mail-order companies to ship tobacco directly to consumers. Given the difficulty of policing Internet tobacco transactions and constitutional barriers to additional, state-imposed delivery requirements, the only practical way to effectively regulate online tobacco retailers is through legislation prohibiting both online tobacco sales and direct shipment of tobacco products to consumers. Statutes restricting direct shipment of alcoholic beverages provide a precedent for such legislation because most states either explicitly prohibit direct shipment to consumers or do so practically by requiring that all transactions for alcoholic beverages take place within the state’s licensed distribution system. Under a similar legislative scheme, shipment of tobacco products would be restricted to licensed wholesale or retail outlets, and consumers would only be permitted to purchase these products only in face-to-face transactions in licensed retail settings. Such legislation would be effective at a state level, as the New York statute banning direct shipment has demonstrated (Brown & Williamson Tobacco Corp. v. Pataki, 2003), or at a federal level, enforceable by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. To facilitate a better understanding of the range of mechanisms available for the regulation of online and mail-order tobacco purchases, the following pages review state statutes regulating shipments of alcoholic beverages. Of the states that ban alcohol shipment directly to consumers, most have enacted such prohibitions with respect to all alcoholic beverages, including wine, beer, and liquor. State statutes restricting direct shipment to consumers typically require that individuals importing alcoholic beverages from outside the state hold a commercial wholesaler’s or importer’s license.1 Under tiered distribution systems, manufacturers may sell alcoholic beverages to licensed wholesale distributors, who may sell to retailers, who, in turn, make the products available to consumers. By requiring that all direct shipments take place within this system, 1 Ark. Code Ann. § 3-7-106 (2005); Cal. Bus. & Prof. Code § 23661 et seq. (2005); Colo. Rev. Stat. § 12-47-901 (2004); Del. Code Ann. tit. 4, §§ 501, 526 (2005); Fla. Stat. Ann. § 561.545 (2005); Ga. Code Ann. § 3-3-32 (2004); Idaho Code §§ 23-102, 23-1055 (2005); 235 Ill. Comp. Stat. 5/6-29.1 (2005); Ind. Code Ann. § 7.1-5-11-1.5 (2004); Iowa Code § 123.22 (2004); Kan. Stat. Ann. §§ 41-104, 41-306 (2005); Ky. Rev. Stat. Ann. § 244.165 (2004); La. Rev. Stat. Ann § 26:359 (2005); Me. Rev. Stat. Ann. tit. 28, § 2077-B (2004); Md. Code Ann., art. 2B, § 16-506.1 (2004); Mass. Ann. Laws ch. 138, § 18 (2005); Mich. Comp. Laws Ann. § 436.1203 (2005); Minn. Stat. § 340A.3021 (2004); Miss. Code Ann. § 97-31-47 (2005); Mont. Code Ann. § 16-3-101 (2004); N.J. Stat. Ann. § 33:1-2 (2005); N.M. Stat. Ann §§ 60-7A-3, 60-7A-4 (2004); N.Y. Alco. Bev. Cont. Law § 102 (2005); N.C. Gen. Stat. §§ 18B-102, 18B-102.1, 18B-109 (2004); Ohio Rev. Code Ann. § 4301.19 (2005); Okla. Stat. Ann. tit. 37, § 505 (2004); Or. Rev. Stat. § 471.405 (2003); Pa. Stat. Ann tit. 47, § 4-491 (2004); R.I. Gen. Laws § 3-4-8 (2005); S.C. Code Ann. § 61-2-175 (2004); S.D. Codified Laws § 35-4-66 (2004); Tenn. Code Ann. § 57-3-402 (2004); Tex. Alco. Bev. Code Ann. § 107.07 (2004); Utah Code Ann. § 32A-12-504 (2005); Va. Code Ann. § 4.1-310 (2005); Wash. Rev. Code Ann. § 66.12.030 (2005); Wash. Admin. Code §§ 314-36-020, 314-68-050 (2005); W. Va. Code Ann. §§ 60-1-4, 60-1-5 (2005); Wis. Stat. §§ 125.30, 125.58 (2004); Wyo. Stat. Ann. § 12-2-204 (2004).

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Ending the Tobacco Problem: A Blueprint for the Nation states effectively prevent out-of-state manufacturers, wholesalers, and retailers from selling directly to state residents.2 Through either outright prohibitions against direct shipment or tiered distribution systems, states are able to closely regulate commerce in alcoholic beverages and limit opportunities for minors to purchase these products. States that permit direct shipment of alcohol to consumers employ approaches that vary widely. Alaska and Missouri are alone in imposing no restrictions on the direct shipment of alcoholic beverages to consumers.3 Connecticut, Nevada, North Dakota, and the District of Columbia permit the direct shipment of liquor and beer to consumers, but strictly limit the quantity of alcoholic beverages that may be imported across their borders.4 Arizona, Nebraska, and New Hampshire permit direct shipment to consumers provided that the out-of-state seller holds a direct shipment license or permit authorizing shipments to state residents.5 Texas and Wyoming allow importation from licensed direct shippers for wine, alone, while Virginia permits licensed direct shipment for both wine and beer.6 In contrast, a few other states require the in-state consumer to receive either the express permission of the state’s alcohol control board or a license authorizing importation from outside of the state. Hawaii permits residents to import up to 5 gallons of alcoholic beverages into the state provided they obtain a prior approval in the form of a single-shipment permit issued by the state’s alcohol control board. Ohio allows importation upon completion of an application to the state liquor control board, but limits direct shipment under these conditions to beer and wine.7 Montana permits importation by residents who hold connoisseur’s licenses, but also limits shipments to beer and wine.8 Vermont allows individuals to import liquor, beer, or wine into the state if they hold a permit issued by the liquor control board; otherwise, the state grants exclusive authority to import alcoholic beverages to the control board.9 Notwithstanding the restrictions described above, most states have created statutory exceptions to their direct shipment laws to allow for private importation of wine. The 2002 Department of Justice Appropriations Authorization Act requires that all states permit direct shipment of wine to state residents provided that: (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 an adult’s signature upon delivery, (4) the wine is for personal use only and not for resale, and (5) the purchaser could have carried the wine lawfully into the state (or the District of Columbia) to which the wine is shipped.10 A number of states—including Arizona, Georgia, Louisiana, Nebraska, Nevada, New Hampshire, North Carolina, North Dakota, Rhode Island, South Carolina, Texas, Wyoming, and the District of Columbia—permit additional limited direct shipment of wine from out-of-state sellers, even beyond the conditions imposed by the federal 2 Ala. Admin. Code r. § 20-X-8-.03 (2005); Del. Code Ann. tit. 4, §§ 501, 526 (2005); Pa. Stat. Ann tit. 47, § 4-491 (2004). 3 Alaska Alcoholic Beverage Control Board, Trade Practices, available at http://www.dps.state.ak.us/abc/trade.asp [last visited July 12, 2005]; Mo. Rev. Stat. § 311.010 et seq. (2005); State ex rel. Nixon v. Beer Nuts, Ltd., 29 S.W.3d 828, 838 (Mo. Ct. App. 2000); S.B. 102, 90th Gen. Assem. (Mo. 1998). 4 Conn. Gen. Stat. § 12-436 (2004); D.C. Code Ann. § 25-772 (2005); Nev. Rev. Stat. Ann. § 369.490 (2004); N.D. Cent. Code § 5-01-16 (2005). 5 Ariz. Rev. Stat. § 4-203.04 (2004); Neb. Rev. Stat. Ann. § 53-123.15 (2005); N.H. Rev. Stat. Ann. § 178:27 (2004). 6 S.B. 877, 2005 Leg. 79th Sess. (Tex. 2005); Va. Code Ann. § 4.1-112.1 (2005); Wyo. Stat. Ann. § 12-2-204 (2004). 7 Haw. Rev. Stat. Ann. § 281-33.1 (2004); Ohio Department of Commerce Division of Liquor Control, Direct Shipment of Beer & Wine to Ohio Residents, available at http://www.liquorcontrol.ohio.gov/1516pdf [last visited July 13, 2005]. 8 Mont. Code Ann. § 16-4-903 (2004). 9 Vt. Stat. Ann. tit. 7, § 63 (2004). 10 H.R. 2215, 107th Cong. (2002).

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Ending the Tobacco Problem: A Blueprint for the Nation legislation.11 Other states—including California, Colorado, Hawaii, Idaho, Illinois, Iowa, Minnesota, Missouri, New Mexico, Oregon, Washington, West Virginia, and Wisconsin—all permit limited direct shipment from states that authorize reciprocal shipping privileges.12 In addition, a few states—including Delaware, Montana, Ohio, and Virginia—have also established statutory-limited direct shipment exceptions for beer.13 Many of the states that allow direct shipment exceptions for wine have followed the Wine Industry Model Direct Shipping Bill developed by the National Conference of State Legislatures.14 The Model Bill limits the quantity of shipments to two cases per month, requires that packages bear a label indicating that a signature of a person 21 years of age or older is necessary for delivery, and requires that sellers report all shipments to state authorities annually.15 Many states also require that recipients of alcoholic beverages present a valid form of identification so that common carriers may verify their age. For example, North Carolina, Texas, and Virginia all require that common carriers obtain proof of identification prior to delivery of direct shipments of alcoholic beverages to confirm that recipients are 21 years of age or older.16 A recent Supreme Court decision invalidated restrictions on the direct shipment of wine that distinguished between in-state and out-of-state retailers, but left intact legal justifications for nondiscriminatory direct shipment laws (Granholm v. Heald, 544 U.S. 460 [U.S. 2005]). While the Court rejected the states’ arguments that banning interstate shipments was necessary to curb underage drinking, the majority’s consideration of the facts indicated that the Court would permit narrow restrictions on beverages that are more popular with underage drinkers, such as beer, 11 Wine Institute, State Shipping Laws, avaliable at http://www.wineinstitute.org/shipwine/ [last visited July 13, 2005]. 12 Id. 13 Del. Code Ann. tit. 4, § 526 (2005); Mont. Code Ann. § 16-4-903 (2004); Ohio Department of Commerce Division of Liquor Control, Direct Shipment of Beer & Wine to Ohio Residents, available at http://www.liquorcontrol.ohio.gov/1516pdf [last visited July 13, 2005]; Va. Code Ann. §§ 4.1-112.1, 4.1-310 (2005). 14 Model Direct Shipping Bill, National Conference of State Legislatures Task Force on the Wine Industry, avaliable at http://www.freethegrapes.org/wineries.html#model [last visited July 12, 2005]. 15 Wine Institute, Answers to Frequently Asked Questions, avaliable at http://www.wineinstitute.org/shipwine/ [last visited July 13, 2005]; Model Direct Shipping Bill, National Conference of State Legislatures Task Force on the Wine Industry, avaliable at http://www.freethegrapes.org/wineries.html#model [last visited July 12, 2005]; Ariz. Rev. Stat. § 4-203.04 (2004); Cal. Bus. & Prof. Code § 23661.2 (2005); Colo. Rev. Stat. § 12-47-104 (2004); Conn. Gen. Stat. § 30-93a (2004); Del. Code Ann. tit. 4, § 526 (2005); Idaho Code § 23-1309A (2005); 235 Ill. Comp. Stat. 5/6-29 (2005); La. Rev. State. Ann § 26:359 (2005); Minn. Stat. § 340A.417 (2004); Mo. Rev. Stat. § 311.462 (2005); N.H. Rev. Stat. Ann. § 178:27 (2004); N.M. Stat. Ann § 60-7A-3 (2004); N.C. Gen. Stat. § 18B-1001.1 (2004); N.D. Cent. Code § 5-01-16 (2005); Or. Rev. Stat. § 471.229 (2003); R.I. Gen. Laws § 3-4-8 (2005); S.C. Code Ann. § 61-4-747 (2004); S.B. 877, 2005 Leg. 79th Sess. (Tx. 2005); Va. Code Ann. § 4.1-112.1 (2005); Wash. Rev. Code Ann. § 66.12.200 (2005); W. Va. Code Ann. § 60-8-6 (2005); Wyo. Stat. Ann. § 12-2-204 (2004). 16 N.C. Gen. Stat. § 18B-1001.1 (2004); S.B. 877, 2005 Leg. 79th Sess. (Tx. 2005); Va. Code Ann. § 4.1-112.1 (2005).

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Ending the Tobacco Problem: A Blueprint for the Nation wine coolers, and liquors. The Court also explicitly encouraged less restrictive measures to minimize the risk of direct shipment of alcohol to minors, recommending that states enact provisions such as those provided in the Model Direct Shipping Bill. The Court was clear, however, that states will bear the burden of proof to demonstrate the need for any difference in treatment between in-state and out-of-state producers.

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Ending the Tobacco Problem: A Blueprint for the Nation TABLE I-1 State Statutory and/or Regulatory Authority Direct Shipment Permitted (subject to restrictions) Direct Shipment to Non-licensed Individuals Prohibited Description of State Regulation Labeling and Delivery Requirements for Direct Shipments Exception for wine?a Shipment, Labeling, and Delivery Regulations for Direct Shipment of Wine Alabama Ala. Admin. Code r. § 20-X-8-.03 (2005); Ala. Code § 28-3A-9 (2005) X   Direct shipment permitted only with prior approval from the state Beverage Control Board; shipments must be delivered through tiered system and may only be consigned to the care of an ABC store Shipments must be consigned to the care of an ABC store No N/A Alaska Alaska Alcoholic Beverage Control Board, Trade Practices, available at http://www.dps.state.ak.us/abc/trade.asp [last visited July 12, 2005] X   Direct shipment permitted by the state, but subject to local bans on importation (some of which make it a felony to ship alcoholic beverages to their communities) N/A (but may be imposed at local level) No N/A

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Ending the Tobacco Problem: A Blueprint for the Nation Arizona Ariz. Rev. Stat. § 4-203.04 (2004) X   Direct shipment permitted only by out-of-state retailers holding a direct shipment license The licensed retailer may deliver the liquor directly to the consumer, but must ensure that (1) the person making the delivery is 21 or older, (2) the delivery occurs only during the hours that liquor may be lawfully served, (3) delivery is not made to a person who appears intoxicated, and (4) the person accepting the delivery is 21 years of age or older. The retailer must also make a record of the delivery, including the name, age, and signature of the person accepting the delivery, along with the type and serial number of the written identification presented by the person accepting delivery Yes— limited direct shipment Wine may be shipped from out of state as long as: (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 wine is for personal use only and not for resale,(4) the winery ships to a residential address, (5) the purchaser could have carried the wine lawfully into this state, and (6) the winery ships not more than two cases of wine to the purchaser per calendar year. Also, the shipping container must be marked to require an adult's signature on delivery and delivery confirmation Arkansas Ark. Code Ann. § 3-7-106 (2005); S.B. 762, 85th Gen. Assem., Reg. Sess. (Ark. 2005)   X Direct shipment prohibited to individuals who do not hold state-issued licenses N/A No N/A California Cal. Bus. & Prof. Code § 23661 et seq., 23661.2 (2005)   X Direct shipment prohibited to individuals who do not hold a state-issued importer's license N/A Yes— reciprocity Out-of-state parties may ship no more than two cases of wine per month to any adult resident in this state. Delivery is not considered a sale in the state. The shipping container must be clearly labeled to indicate that the package cannot be delivered to a mi

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Ending the Tobacco Problem: A Blueprint for the Nation               nor or to an intoxicated person Colorado Colo. Rev. Stat. §§ 12-47-104, 12-47-901 (2004)   X Direct shipment prohibited to individuals who do not hold a state-issued importer's license N/A Yes— reciprocity Out-of-state parties may ship no more than two cases of wine to any adult resident in the state. Delivery is not con sidered a sale in this state. Any order must be made in person at the licensed premises of the alcoholic beverage licensee from whom the product is purchased. Any person authorized to ship wine must obtain a wine shipment permit from the state licensing authority. The shipping container must be clearly labeled to indicate that that package cannot be delivered to a minor or intoxicated person Connecticut Conn. Gen. Stat. §§ 12-436, 30-77, 30-93a (2004) X   Direct shipment permitted; individuals may import into the state up to 5 gallons of alcoholic beverages within a 60-day period The contents of such package or carton must be clearly marked on the outside of such package or carton, and the delivery person must obtain the signature of an individual who is at least 21 years of age or legally authorized to receive such alcoholic liquor No N/A

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Ending the Tobacco Problem: A Blueprint for the Nation Delaware Del. Code Ann. tit. 4, §§ 501, 526 (2005)   X Direct shipment prohibited to individuals who do not hold a state-issued importer's or manufacturer's license; although the states permits residents to purchase wine or beer from manufacturers domiciled outside of the state, the beverages must be delivered to a state wholesaler who may deliver it to a retailer, who may, finally, deliver the wine or beer to the resident When the retail licensee delivers wine or beer to a resident that was originally purchased from an out-of-state wholesaler or retailer, the package must be prominently labeled as containing alcoholic beverages and must be received by a person 21 or older No N/A District of Columbia D.C. Code Ann. § 25-772 (2005) X   Limited direct shipment permitted; common carriers may transport up to one quart of alcoholic beverages to an individual per calendar month N/A No N/A Florida Fla. Stat. Ann. § 561.545 (2005)   X Direct shipment prohibited to individuals who do not hold a state-issued manufacturer's or wholesaler's license or an exporter's registration N/A Yes— limited direct shipment Florida residents visiting onsite at a winery may have up to one gallon of wine shipped back to the state

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Ending the Tobacco Problem: A Blueprint for the Nation Georgia Ga. Code Ann. § 3-3-32 (2004)   X Direct shipment prohibited to individuals who do not hold a state-issued manufacturer's, importer's, broker's, or wholesaler's license N/A Yes— limited direct shipment An out-of-state winery is permitted to ship wine directly to consumers in this state for personal use under the following circumstances: (1) the consumer must purchase the wine while physically present at the winery, (2) the winery must verify that the consumer purchasing the wine is 21, and (3) no winery shall ship in excess of five cases to any one consumer or any one address in this state in any calendar year Hawaii Haw. Rev. Stat. Ann. §§ 281-33.1, 281-33.5 (2004) X   Limited direct shipment permitted; unlicensed adults may apply to the liquor commission to receive a single shipment permit to receive up to 5 gallons of liquor from outside of the state for personal use N/A Yes— reciprocity Out-of-state parties may ship up three cases per year to a resident over 21 years of age. Delivery does not constitute a sale in the state. Shipment only by a licensed wine manufacturer wine from another state that affords holders of a license to manufacture wine under section 281-31 an equal reciprocal shipping privilege

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Ending the Tobacco Problem: A Blueprint for the Nation Idaho Idaho Code §§ 23-102, 23-1055, 23-1309A (2005)   X Direct shipment prohibited; the state liquor dispensary has the exclusive authority to import and sell liquor, and it is unlawful for any beer brewer located outside the state to sell beer in the state except to licensed dealers and wholesalers N/A Yes— reciprocity Out-of-state parties may ship not more than two cases of wine per month for personal use from another state without payment of state tax, fees, or charges if shipped from a reciprocity state. The shipping container must be labeled to indicate that it contains alcoholic beverages and cannot be delivered to a person who is not at least 21 years of age. The delivery person must have the recipient sign for receipt of wine shipments, not deliver to a minor or one that is visibly intoxicated, and must retain the signature for one year Illinois 235 Ill. Comp. Stat. 5/6-29, 5/6-29.1 (2005)   X Direct shipment prohibited to individuals who do not hold a state-issued license N/A Yes— reciprocity Out-of-state wineries may ship not more than two cases of wine per year to an adult resident. No broker shall solicit consumers to engage in interstate reciprocal wine shipments. The shipping container of any wine sent into or out of the state shall be clearly labeled to indicate that the package cannot be delivered to a person under the age of 21 years Indiana Ind. Code Ann. § 7.1-5-11-1.5 (2004)   X Direct shipment prohibited to individuals who do not hold a state-issued wholesaler's permit; statute specifically N/A No N/A

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Ending the Tobacco Problem: A Blueprint for the Nation         prohibits the ordering and selling of alcohol over a computer network       Iowa Iowa Code §§ 123.22, 123.187 (2004)   X Direct shipment prohibited; the state liquor division holds the exclusive authority to import all forms of alcoholic liquor into the state N/A Yes— reciprocity Out-of-state parties may ship not more than two cases per month for personal use to a person 21 years of age or older. Such wine shall not be resold Kansas Kan. Stat. Ann. §§ 41-104, 41-306 (2005)   X Direct shipment prohibited to individuals who do not hold a state-issued license N/A No N/A Kentucky Ky. Rev. Stat. Ann. § 244.165 (2004)   X Direct shipment prohibited to individuals who do not hold a state-issued wholesaler's or distributor's license N/A Yes— limited direct shipment A Kentucky resident visiting another state or country may purchase and ship alcoholic beverages to his or her residence, business, or mailing address in Kentucky

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Ending the Tobacco Problem: A Blueprint for the Nation Nebraska Neb. Rev. Stat. Ann. § 53-123.15 (2005) X   Direct shipment to consumers permitted only if the seller holds a permit issued by the commission (of the state into which the beverage is shipped) N/A No N/A Nevada Nev. Rev. Stat. Ann. § 369.490 (2004) X Limited direct shipment permitted; a state resident may import one gallon or less of alcoholic beverage per month or 12 cases of wine per year for personal use N/A No N/A New Hampshire N.H. Rev. Stat. Ann. § 178:27 (2004) X Direct shipment to consumers permitted only if the seller holds a permit issued by the commission (of the state into which the beverage is shipped); the state limits shipment of 60 containers of not more than one liter each of liquor and wine per address per calendar year Packages must be marked "Alcoholic Beverages, adult signature (over 21 years of age) required." All shipments shall be made by a licensed carrier and such carriers are required to obtain an adult signature No N/A New Jersey N.J. Stat. Ann. § 33:1-2 (2005)   X Direct shipment prohibited from out-of-state retailer to an in-state consumer N/A No N/A

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Ending the Tobacco Problem: A Blueprint for the Nation New Mexico N.M. Stat. Ann §§ 60-7A-3, 60-7A-4 (2004)   X Direct shipment prohibited to individuals who do not hold a state-issued wholesaler's or manufacturer's license N/A Yes—reciprocity Out-of-state parties may ship no more than two cases for personal use per month to an individual not a minor. Delivery does not constitute a sale in this state and nothing in the Liquor Control Act limits or applies to such shipments. The shipping container of any wine sent into or out of this state under this subsection shall be labeled clearly to indicate that the package cannot be delivered to a minor or to an intoxicated person New York N.Y. Alco. Bev. Cont. Law § 102 (2005)   X Direct shipment prohibited to individuals who do not hold a state-issued license to traffic in alcoholic beverages N/A No N/A North Carolina N.C. Gen. Stat. §§ 18B-102, 18B-102.1, 18B-109, 18B-1001.1 (2004)   X Direct shipment prohibited from out-of-state retailer or wholesaler to individuals who do not hold a state-issued wholesaler's license N/A Yes—limited direct shipment Holders of Wine Shippers Permits are authorized to ship not more than two cases of wine per month to any one individual purchaser for personal use. All shipments must be made through an approved common carrier. Each common carrier must (1) require the recipient to demonstrate that s/he is at least 21 years of age by providing appropriate identification, (2) require the recipient to sign an electronic or paper form acknowledging receipt,

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Ending the Tobacco Problem: A Blueprint for the Nation               and (3) refuse delivery when the proposed recipient appears to be under the age of 21 years and refuses to present valid identification North Dakota N.D. Cent. Code § 5-01-16 (2005) X   Limited direct shipment permitted; individuals may import 9 liters or less of liquor, or 288 fluid ounces or less of beer, per month for personal use from a person holding a valid manufacturer's or retailer's license issued by the state of its domicile Every package shipped directly to an individual in this state must be labeled with conspicuous words "SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY." A shipper shall obtain the signature of an individual 21 years of age or older before delivering any alcoholic beverages shipped directly to an individual in this state No N/A Ohio Ohio Rev. Code Ann. § 4301.19 (2005); Ohio Department of Commerce Division of Liquor Control, Direct Shipment of Beer & Wine to Ohio Residents, available at http://www.liquorcontrol.ohio.gov/15 X   Limited direct shipment permitted; state liquor dispensary has the exclusive right to sell liquor in the state; however, Ohio residents may import beer or wine, provided that they fill out a “personal consent” form requiring that (1) the beer or wine is for personal use and not for resale, (2) the resident is N/A No N/A

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Ending the Tobacco Problem: A Blueprint for the Nation   [last visited July 13, 2005]     21 years of age or older, (3) the laws of the United States allow the shipment of the beer or wine into the United States, (4) all taxes due the State of Ohio shall be paid prior to the importation, or within 30 days of the receipt, of beer or wine       Oklahoma Okla. Stat. Ann. tit. 37, § 505 (2004)   X Direct shipment prohibited by manufacturers, wholesalers, and retailers located outside of the state N/A No N/A Oregon Or. Rev. Stat. §§ 471.229, 471.405 (2003)   X Direct shipment prohibited; state liquor control commission holds the exclusive right to procure alcoholic beverages in the state N/A Yes—reciprocity Out-of-state parties may ship not more than two cases of wine per month to individuals 21 years of age or older for personal use. Receipt of a shipment does not constitute a sale in the state. Out-of-state wine or cider suppliers must obtain a license from the Oregon Liquor Control Commission before selling or soliciting sales of wine or cider in Oregon. The shipping container of any wine or cider sent into or out of this state under this section must be clearly labeled to indicate that the container contains alcoholic beverages and cannot be delivered to a person who is not at least 21 years of

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Ending the Tobacco Problem: A Blueprint for the Nation               age or to a person who is visibly intoxicated Pennsylvania Pa. Stat. Ann tit. 47, § 4-491 (2004)   X Direct shipment prohibited; all commerce in alcoholic beverages must occur within the state-run system N/A Yes—limited direct shipment Internet ordering and direct shipments of out-of-state wine are permitted, provided that (1) the wine must be purchased from a licensed Direct Wine Shipper, (2) only wines which are not available in Pennsylvania wine & spirits stores may be purchased through this mechanism, (3) consumers may not purchase more than 9 liters per month from a single Direct Wine Shipper, (4) the Direct Wine Shipper will have a shipping charge and must add a handling fee, and that state’s liquor and sales taxes, and (5) the wine will be shipped to a Pennsylvania Wine and Spirits Store for the consumer to pick up Rhode Island R.I. Gen. Laws § 3-4-8 (2005)   X Direct shipment prohibited to individuals who do not hold a state-issued wholesaler's license N/A Yes—limited direct shipment Individuals may place an order for intoxicating beverages personally at the manufacturer's premises, for shipment to an address in Rhode Island for personal use. Shipments must display the language: “Contains Alcohol, Adult Signature (over 21) Required for Delivery”

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Ending the Tobacco Problem: A Blueprint for the Nation South Carolina S.C. Code Ann. §§ 61-2-175, 61-4-747 (2004)   X Direct shipment prohibited to individuals who do not hold a state-issued wholesaler's, manufacturer's, or producer's license N/A Yes—limited direct shipment Holders of wine shipper's licenses may sell and ship not more than 24 bottles of wine per month to any person in South Carolina to whom alcoholic beverages may be lawfully sold. Any shipment must be labeled conspicuously with the words “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY” South Dakota S.D. Codified Laws §§ 35-12A-1, 35-4-66 (2004)   X Direct shipment prohibited to any individual not licensed by the state to traffic in alcoholic beverages N/A Yes—reciprocity Any person who is at least 21 years of age may purchase wine from another state if the wine is not in distribution in this state and the wine comes from a winery that is located in a state that affords South Dakota wineries an equal reciprocal shipping privilege or a winery located in South Dakota. The person must place an order with a licensee, who may order the wine through a wholesaler who shall, in turn, ship the wine to the licensee Tennessee Tenn. Code Ann. § 57-3-402 (2004)   X Direct shipment prohibited to individuals who do not hold a state-issued manufacturer's or wholesaler's license N/A No N/A

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Ending the Tobacco Problem: A Blueprint for the Nation Texas Tex. Alco. Bev. Code Ann. § 107.07 (2004); S.B. 877, 2005 Leg. 79th Sess. (Tex. 2005)   X Direct shipment prohibited to state residents from persons located outside of the state N/A Yes—limited direct shipment All in-state and out-of-state wineries are able to sell and ship their product directly to adult Texas consumers located anywhere in the state, provided they hold a permit to do so. Wine shipped by the holder of a winery permit may not be delivered to any person other than (1) the person who purchased the wine, (2) a recipient designated in advance by such purchaser, or (3) a person at the delivery address who is age 21 or over. Wine may be delivered only to a person who is age 21 or over after the person accepting the package (1) presents proof of identity and age and (2) personally signs a receipt acknowledging delivery of the package Utah Utah Code Ann. § 32A-12-504 (2005)   X Direct shipment prohibited; alcoholic beverages may not be shipped into the state or from one point to another within the state N/A No N/A Vermont Vt. Stat. Ann. tit. 7, § 63 (2004) X   Limited direct shipment permitted; individuals may import liquor, beer, or wine into the state if they hold a permit issued by the liquor control board; otherwise, the liquor control board N/A No N/A

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Ending the Tobacco Problem: A Blueprint for the Nation         holds the exclusive authority to import and transport liquors into the state       Virginia Va. Code Ann. §§ 4.1-112.1, 4.1-310 (2005) X   Limited direct shipment permitted; the state liquor control board holds the exclusive authority to import alcoholic beverages into the state; however, holders of wine shippers' licenses and beer shippers' licenses issued by the commonwealth may sell and ship not more than two cases of wine per month or more than two cases of beer per month to any person in Virginia to whom alcoholic beverages may be lawfully sold for personal use The recipient must demonstrate that he is at least 21 and must sign an acknowledgement of receipt. The Board-approved common carrier shall refuse delivery when the recipient appears to be under 21 and refuses to present valid identification. All shipments must include a notice in 16-point type or larger on the outside of each package in a conspicuous location stating: "CONTAINS ALCOHOLIC BEVERAGES; SIGNATURE OF PERSON AGED 21 YEARS OR OLDER REQUIRED FOR DELIVERY" No N/A Washington Wash. Rev. Code Ann. §§ 66.12.030, 66.12.200 (2005); Wash. Admin. Code § §314-36-020, 314-68-050 (2005)   X Direct shipment prohibited; no liquor may be imported into the state unless it is consigned to the state liquor control board or to a license-holder and delivered to an authorized public warehouse N/A Yes—reciprocity Out-of-state parties may ship not more than two cases of wine of their own manufacture per year from wineries in states affording the same reciprocal privilege. Out-of-state wineries must obtain a private wine shipper's license from the Washington State Liquor Control Board. The shipping container of any wine sent into or out of this state under this law shall be clearly labeled to indicate

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Ending the Tobacco Problem: A Blueprint for the Nation               that the package cannot be delivered to a person under 21 years of age or to an intoxicated person West Virginia W. Va. Code Ann. §§ 60-1-4, 60-1-5, 60-8-6 (2005)   X Direct shipment prohibited; state-run alcoholic beverage control agency holds the exclusive right to sell alcoholic beverages within the state N/A Yes—reciprocity Out-of-state parties may ship not more than two cases per month for personal use from an out-of state winery or retailer in states affording the same reciprocal privileges. Delivery does not constitute sale in the state. No adult resident or duly licensed retailer or distributor may advertise the availability of wines by shipment to residents of this state. The shipping container of any wine sent into or out of this state under this subsection shall be clearly labeled to indicate that the package cannot be delivered to any person under the age of 21 or to an intoxicated person

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Ending the Tobacco Problem: A Blueprint for the Nation Wisconsin Wis. Stat. §§ 125.30, 125.58 (2004)   X Direct shipment prohibited to individuals who do not hold a state-issued permit N/A Yes—reciprocity with reporting requirement A winery located outside of this state may ship wine into this state provided that (1) the winery is located in a state that has a reciprocal agreement with this state, (2) the winery holds a valid business tax registration certificate, (3) the winery submits a copy of its current license from the state from which it will ship wine into this state, and (4) the winery submits a detailed report to the department about the shipments Wyoming Wyo. Stat. Ann. § 12-2-204 (2004)   X Direct shipment of liquor and malt beverages prohibited to state residents from persons located outside of the state N/A Yes—limited direct shipment Any person currently licensed in its state of domicile as an alcoholic liquor or malt beverage manufacturer, importer, wholesaler, or retailer who obtains an out-of-state shipper's license by from the state of Wyoming may ship no more than a total of 18 liters of manufactured wine directly to any household in this state in any 12-month period for personal use. The recipient must be at least 21, and out-of-state shippers must ensure that all containers of wine shipped pursuant to this section are conspicuously labeled with the words: "CONTAINS ALCOHOLIC BEVERAGES. ADULT (OVER 21) SIGNATURE REQUIRED FOR

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Ending the Tobacco Problem: A Blueprint for the Nation               DELIVERY" a Where states have created exceptions for both wine and beer, they have been classified as permitting direct shipment, subject to limitations.