Delaware General Assembly

House Economic Development/Banking/Insurance & Commerce 7/7/23

Committee Hearing takes place within twelve legislative days.

7/7/23

Spiegelman

Sen. Wilson
Reps. Michael Smith, Yearick

Reps. Lynn, D. Short

AN ACT TO AMEND TITLE 4 OF THE DELAWARE CODE RELATING TO THE DISTRIBUTION OF ALCOHOL.

This Act facilitates the interstate and intrastate shipping and delivery of alcoholic liquors. Section 2 of this Act does all of the following: (1) Authorizes the direct shipping of wine, beer, spirits, mead, or cider to consumers in this State if the alcoholic liquor is manufactured by a person licensed as a farm winery, microbrewery, or craft distillery in this State or by a person located in another state that would qualify as a farm winery, microbrewery, or craft distillery under the laws of this State. (2) Requires the direct shipper to be licensed by the Alcoholic Beverage Control Commissioner (“Commissioner”). (3) Establishes a yearly limit on the amount of wine, beer, spirits, mead, or cider that may be shipped directly to a consumer for the consumer’s personal use. (4) Requires the licensed direct shipper to provide notice that an individual who is 21 years of age or older must receive the shipment. Sections 1, 3, and 4 of this Act do all of the following: (1) Authorizes a liquor store, farm winery, brewery-pub, microbrewery, craft distillery, and wine auction (“a seller”) to sell alcoholic liquor for delivery by a delivery service. (2) Authorizes the delivery of alcoholic liquor from a seller in this State to a consumer in this State by a delivery service. (3) Requires a delivery service to be licensed by the Commissioner. (4) Requires a delivery service’s delivery drivers to meet certain requirements. (5) Requires a delivery service to ensure that before transferring possession of a shipment of alcoholic liquor that the delivery service’s delivery drivers verify the identity of the recipient of the shipment and that the recipient is at least 21 years of age. Section 5 of this Act adopts the Uniform Alcohol Direct-Shipping Compliance Act, which was approved by the Uniform Law Commission. The Uniform Law Commission “provides states with non-partisan, well-conceived and well-drafted legislation that brings clarity and stability to critical areas of state statutory law.” The Uniform Alcohol Direct-Shipping Compliance Act (“the Uniform Act”) enhances each state’s capability to detect and stop unlawful direct to consumer shipments of alcoholic beverages to the state’s residents. The Uniform Act incorporates the state’s existing law as to the industry participants and types of alcoholic beverages for which direct to consumer shipping is allowed and does not create any new or additional authorization to ship alcoholic beverages directly to a consumer. The Uniform Act provides state regulators with new tools to distinguish between direct to consumer shipments that originate from shippers licensed under the state’s existing law and direct to consumer shipments that do not, and aids state regulators in enforcing their existing laws governing direct to consumer shipments of any type of alcoholic beverage. The Uniform Act requires fulfillment providers, a person acting on behalf of a licensed direct shipper to ship wine, beer, spirits, mead, or cider to a consumer and arranges for transport of the wine, beer, spirits, mead, or cider by a carrier to the consumer, to be registered with the Commissioner and regulates fulfillment providers. Section 6 of this Act does all of the following: (1) Authorizes a carrier to transport wine, beer, spirits, mead, or cider from a licensed direct shipper or a registered fulfillment provider to a resident of this State. (2) Requires a carrier to be licensed by the Commissioner. (3) Requires a carrier to ensure that before transferring possession of a shipment of wine, beer, spirits, mead, or cider that the individual delivering the shipment for the carrier has verified the identity of the recipient of the shipment and that the recipient is at least 21 years of age. Sections 7 through 9 of this Act makes conforming amendments to Title 4 of the Delaware Code to permit the activities authorized by Sections 1 through 6 of this Act. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual. This Act requires a greater than majority vote for passage because § 11 of Article VIII of the Delaware Constitution requires the affirmative vote of three-fifths of the members elected to each house of the General Assembly to impose or levy a tax or license fee.

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Takes effect upon being signed into law

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