AZ HB2688

Amends Arizona law to allow distilleries and craft distillers to obtain direct shipment licenses, which were previously limited to wineries and farm wineries.

Permits direct shipment licensees to sell and ship up to four nine-liter cases of distilled spirits per calendar year directly to purchasers in Arizona, compared to twelve nine-liter cases for wine.

Extends direct shipment privileges to importers of wine and distilled spirits who hold current federal basic permits and state licenses, allowing them to ship directly to consumers.

Requires all direct shipment licensees to verify purchaser age, label containers conspicuously with alcohol warnings, conduct delivery only during lawful service hours to those age 21 or older, and file annual shipment reports.

Applies the same restrictions and requirements to distilled spirits as existing wine direct shipment provisions, including transaction privilege tax payment obligations and enforcement by the Department of Liquor and Cannabis Regulation.