Alaska DTC Update

The Alaska Title 4 Rewrite law (SB 9) 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 & Marijuana Control Office (AMCO) is scheduled to take effect on Jan. 1, 2024. Wine Institute had hoped wineries would be able to obtain the new Manufacturer Direct Shipment License (MDSL) and begin shipping on Jan. 1st; however, the state is in the process of developing new rules governing MDSLs which impacts wineries and other types of alcoholic beverage manufacturers becoming licensed prior to the program rules being finalized.

Key issues under consideration by AMCO as a part of this regulatory project include:

• Prohibiting sales and shipping products to individuals who have been ordered by the courts not to have access to alcohol.
• Allowing MDSLs to use online age verification systems that are approved by AMCO in lieu of obtaining and retaining copies of customer IDs;
• Creating a separate rules section for MDSLs from those operating under an Alaska package store shipping endorsement.

Wine Institute will continue to work with the AMCO leadership and board over the next few months to help ensure that the final regulations and processes established for MDSLs are as workable as possible. Members are advised to wait until we have resolution on the final rules before applying for the new license in order to avoid running afoul of the existing regulations.