                                 CODE OF VIRGINIA

DIRECT SHIPMENT OF WINE AND BEER; SHIPPER&#8217;S LICENSE (§ 4.1-209.1)

A. Holders of wine and beer shipper&#8217;s licenses issued pursuant to
subdivision F 1 of &#xA7; 4.1-206.3 may sell and ship not more than two cases of
wine per month nor more than two cases of beer per month to any person in
Virginia to whom alcoholic beverages may be lawfully sold. All such sales and
shipments shall be for personal consumption only and not for resale. A case of
wine shall mean any combination of packages containing not more than nine liters
of wine. A case of beer shall mean any combination of packages containing not
more than 288 ounces of beer. Any winery or farm winery located within or
outside the Commonwealth may apply to the Board for issuance of a wine and beer
shipper&#8217;s license that shall authorize the shipment of brands of wine and
farm wine identified in such application. Any brewery located within or outside
the Commonwealth may apply to the Board for issuance of a wine and beer
shipper&#8217;s license that shall authorize the shipment of brands of beer
identified in such application. Any person located within or outside the
Commonwealth who is authorized to sell wine or beer at retail in their state of
domicile and who is not a winery, farm winery, or brewery may nevertheless apply
for a wine and beer shipper&#8217;s license if such person satisfies the
requirements of this section. Any brewery, winery, or farm winery that applies
for a shipper&#8217;s license or authorizes any other person, other than a
retail off-premises licensee, to apply for a license to ship such
brewery&#8217;s, winery&#8217;s or farm winery&#8217;s brands of wine or beer
shall notify any wholesale licensees that have been authorized to distribute
such brands that an application has been filed for a shipper&#8217;s license.
The notice shall be in writing and in a form prescribed by the Board. The Board
may adopt such regulations as it reasonably deems necessary to implement the
provisions of this section, including regulations that permit the holder of a
shipper&#8217;s license to amend the same by, among other things, adding or
deleting any brands of wine, farm wine, or beer identified in such
shipper&#8217;s license.

B. Any applicant for a wine and beer shipper&#8217;s license that does not own
or have the right to control the distribution of the brands of wine, farm wine,
or beer identified in such person&#8217;s application may be issued a
shipper&#8217;s license for wine and beer, if the applicant has obtained and
filed with its application for a shipper&#8217;s license, and with any
subsequent application for renewal thereof, the written consent of either (i)
the winery, farm winery, or brewery whose brands of wine, farm wine, or beer are
identified therein or (ii) any wholesale distributor authorized to distribute
the wine or beer produced by the winery, farm winery or brewery. Any winery,
farm winery, or brewery, or its wholesale distributor, that has provided written
authorization to a shipper licensed pursuant to this section to sell and ship
its brand or brands of wine, farm wine, or beer shall not be restricted by any
provision of this section from withdrawing such authorization at any time. If
such authorization is withdrawn, the winery, farm winery, or brewery shall
promptly notify such shipper licensee and the Board in writing of its decision
to withdraw from such shipper licensee the authority to sell and ship any of its
brands, whereupon such shipper licensee shall promptly file with the Board an
amendment to its license eliminating any such withdrawn brand or brands from the
shipper&#8217;s license.

C. The direct shipment of beer and wine by holders of licenses issued pursuant
to subdivision F 1 of &#xA7; 4.1-206.3 shall be by approved common carrier only.
The Board shall develop regulations pursuant to which common carriers may apply
for approval to provide common carriage of wine or beer, shipped by holders of
licenses issued pursuant to subdivision F 1 of &#xA7; 4.1-206.3. Such
regulations shall include provisions that require (i) the recipient to
demonstrate, upon delivery, that he is at least 21 years of age; (ii) the
recipient to sign an electronic or paper form or other acknowledgement of
receipt as approved by the Board; and (iii) the Board-approved common carrier to
submit to the Board such information as the Board may prescribe. The
Board-approved common carrier shall refuse delivery when the proposed recipient
appears to be under the age of 21 years and refuses to present valid
identification. All licensees shipping wine or beer pursuant to this section
shall affix a conspicuous notice in 16-point type or larger to the outside of
each package of wine or beer shipped within or into the Commonwealth, in a
conspicuous location stating: &#8220;CONTAINS ALCOHOLIC BEVERAGES; SIGNATURE OF
PERSON AGED 21 YEARS OR OLDER REQUIRED FOR DELIVERY.&#8221; Any delivery of
alcoholic beverages to a minor by a common carrier shall constitute a violation
by the common carrier. The common carrier and the shipper licensee shall be
liable only for their independent acts.

D. For purposes of &#xA7;&#xA7; 4.1-234 and 4.1-236 and Chapter 6 (&#xA7;
58.1-600 et seq.) of Title 58.1, each shipment of wine or beer by a wine and
beer shipper licensee shall constitute a sale in Virginia. The licensee shall
collect the taxes due to the Commonwealth and remit any excise taxes monthly to
the Authority and any sales taxes to the Department of Taxation.

E. Notwithstanding the provisions of &#xA7; 4.1-203, the holder of a wine and
beer shipper license may solicit and receive applications for subscription to a
wine-of-the-month or beer-of-the-month club at in-state or out-of-state
locations for which a license for on-premises consumption has been issued, other
than the place where the licensee carries on the business for which the license
is granted. For the purposes of this subsection, &#8220;wine-of-the-month
club&#8221; or &#8220;beer-of-the-month club&#8221; shall mean an agreement
between an in-state or out-of-state holder of a wine and beer shipper license
and a consumer in Virginia to whom alcoholic beverages may be lawfully sold that
the shipper will sell and ship to the consumer and the consumer will purchase a
lawful amount of wine or beer each month for an agreed term of months.

F. Notwithstanding the provisions of &#xA7; 4.1-203, a wine and beer shipper
licensee may ship wine or beer as authorized by this section through the use of
the services of an approved fulfillment warehouse. For the purposes of this
section, a &#8220;fulfillment warehouse&#8221; means a business operating a
warehouse and providing storage, packaging, and shipping services to wineries or
breweries. The Board shall develop regulations pursuant to which fulfillment
warehouses may apply for approval to provide storage, packaging, and shipping
services to holders of licenses issued pursuant to this section. Such
regulations shall include provisions that require (i) the fulfillment warehouse
to demonstrate that it is appropriately licensed for the services to be provided
by the state in which its place of business is located, (ii) the Board-approved
fulfillment warehouse to maintain such records and to submit to the Board such
information as the Board may prescribe, and (iii) the fulfillment warehouse and
each wine and beer shipper licensed under subdivision F 1 of &#xA7; 4.1-206.3 to
whom services are provided to enter into a contract designating the fulfillment
warehouse as the agent of the shipper for purposes of complying with the
provisions of this section.

G. Notwithstanding the provisions of &#xA7; 4.1-203, a wine and beer shipper
licensee may sell wine or beer as authorized by this section through the use of
the services of an approved marketing portal. For the purposes of this section,
a &#8220;marketing portal&#8221; means a business organized as an agricultural
cooperative association under the laws of a state, soliciting and receiving
orders for wine or beer and accepting and processing payment of such orders as
the agent of a licensed wine and beer shipper. The Board shall develop
regulations pursuant to which marketing portals may apply for approval to
provide marketing services to holders of licenses issued pursuant to subdivision
F 1 of &#xA7; 4.1-206.3. Such regulations shall include provisions that require
(i) the marketing portal to demonstrate that it is appropriately organized as an
agricultural cooperative association and licensed for the services to be
provided by the state in which its place of business is located, (ii) the
Board-approved marketing portal to maintain such records and to submit to the
Board such information as the Board may prescribe, and (iii) the marketing
portal and each wine and beer shipper licensed under this section to whom
services are provided to enter into a contract designating the marketing portal
as the agent of the shipper for purposes of complying with the provisions of
this section.

HISTORY: 2007, cc. 99, 799; 2009, c. 292; 2010, cc. 317, 561; 2015, cc. 38, 730;
2020, cc. 1113, 1114.