The latest iteration of a bill to allow wine shipments direct to consumers enters the General Assembly and clears its first legislative hurdle after thirty years of similar legislation never making it across the finish line.
State Rep. Mike Smith (R-Pike Creek) believes he has finally brought forward the "easiest" version of the bill to implement in the First State, arguing allowing cases of wine to be delivered to Delaware households is long overdue.
“We are the last state, only because I don't count Utah for many reasons, and you can I'm sure guess why, but Mississippi just passed a version of this bill this year. Every other state already has a version out there," Rep. Smith said during the bill's committee hearing.
He says while he doesn’t believe he can ever appease all stakeholders, he worked with distributors, the teamsters, unions and the Office of the Alcoholic Beverage Commissioner to reach what he feels is the best compromise.
The legislation would allow wine producers within Delaware or another state to obtain a license and ship wine directly to of age residents, as long as it is done through a common carrier.
The bill would limit the amount of shipped wine per household per year to three nine-liter cases and limits the total amount of wine that the direct shipper of wine can ship to Delaware consumers to 1,800 nine-liter cases annually.
It would also require carriers to receive training regarding how to deliver wine responsibly and obtain the signature of a person 21 years of age or older before delivery.
Although not stating an official stance, Lt. Mike Loiseau with the Delaware Division of Alcohol and Tobacco Enforcement raises concerns the bill would foster easier alcohol access for minors.
“This model shifts alcohol enforcement away from storefronts and onto websites, out-of-state businesses and third-party carriers, creating challenges for real-time oversight. Many online platforms rely on self-reported age, and residential deliveries are often made without proper ID checks," Lt. Loiseau said.
The National Association of Wine Retailers (NAWR) believes the bill doesn't go far enough in what it allows, arguing that retailers should be included in who is allowed to ship wine to residents.
“HB 187 is by far one of the worst, most exclusionary, and most anti-consumer wine shipping bills we have seen introduced in decades,” Tom Wark, executive director of NAWR, said in a statement. “Barring Delaware wine lovers from accessing hundreds of thousands of wines as a result of banning retailers from shipping along with wineries is a purely protectionist move that only helps the huge union interests and state wholesalers.”
But Rep. Smith says the state has to start somewhere.
"I tried to find a happy medium to that while working with all stakeholders, knowing that we're never going to make everybody happy. I think this at least gives us a baseline to start somewhere, share the impact, and then see if we ever do want to make changes moving forward as a legislative body, we'd be able to do that," he said.
The bill was ultimately released from committee with some bipartisan support, on the condition Rep. Smith introduces a substitute version implementing recommendations from the Alcoholic Beverage Commissioner, and heads to the House for consideration.
