DelawareSB 243153rd General Assembly (2024–2026)Senate

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

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Bill Overview

Analyzed Economic Effects

17 provisions identified: 7 benefits, 5 costs, 5 mixed.

Craft alcohol businesses gain sales options

Delaware farm wineries, microbreweries, and craft distilleries can buy qualifying products from licensed Delaware importers or package stores. Those products must come from eligible licensed producers or manufacturers the Commissioner finds qualify under those producer-license rules. Customers must drink purchased products on-site; craft distilleries can also mix purchased alcohol into their own products for on-site sale. Craft distilleries can own or affiliate with suppliers or manufacturers inside or outside Delaware. The law removes the former 750,000-proof-gallon yearly limit on affiliated businesses' combined domestic sales, not the distillery's production cap.

New takeaway alcohol licenses favor stores

New applications for this off-premises alcohol license are limited to package-store owners, lessees, or managers recognized by the Commissioner. People in charge of restaurants, clubs, and taprooms cannot apply for off-premises licenses for those premises. Restaurant and club licenses issued before the act's effective date are exempt from that new-license bar. Those licenses, and taproom licenses issued before July 6, 1983, remain eligible for transfer with the Commissioner's approval.

Package stores face ownership limits

The Commissioner must refuse a package-store license when substantial evidence supports interests in 2 or more licenses by the applicant and specified associates. A spouse's interests and those of a child under 21 count toward the limit. Bona fide lenders, lending institutions, secured parties, lienholders, landlords, and lessors do not count as license-interest holders. Interests in more than 2 licenses acquired before April 1, 1992, remain grandfathered for continued use and renewal.

Arts businesses gain limited alcohol permission

Licensed businesses charging for painting, pottery, candle-making, or similar creative experiences can get a bottle-club license. The license allows alcohol consumption every day, including holidays, but not from 11:00 p.m. to 9:00 a.m. Owners or customers must provide enough food; packaged snacks such as chips and pretzels do not qualify. Implementation occurs by the earlier of six months after enactment or publication of final rules.

Event venues gain licenses with fees

Qualified applicants can get one special-event license to sell and serve alcohol for drinking at events on their licensed premises. The Delaware site must be owned or leased, cover no more than 3 acres, and meet zoning, health, and fire rules. Its secured alcohol area needs a fence or wall at least 30 inches high. Events need written local approval, enough food and restrooms, and notice 30 days ahead; approved temporary fixtures need notice 20 days ahead. The license costs $1,000 every two years for up to 12 events yearly, or $2,000 for more; applicants also pay an application-processing fee. Violations can bring suspension, denial of future applications for up to 2 years, or fines up to $10,000 per violation. Implementation occurs by the earlier of six months after enactment or publication of final rules.

Venue alcohol licenses gain new standards

Concert halls qualify with capacity for 500 patrons and 200 live music events per two-year license period, down from 600 and 250. Restaurants seeking alcohol privileges must get at least 60% of gross receipts from food and serve full meals for payment. They need table seating for at least 12 people and suitable cooking facilities staffed by a chef or cook. Dinner theaters now fall under Delaware's cabaret rules.

Kids can stay later at cabarets

Minors can enter or remain at cabarets without a parent until 11:00 p.m. official Eastern time, instead of 9:00 p.m. After 11:00 p.m., a parent or legal guardian must accompany them.

Nonprofit gatherings gain alcohol donation options

Qualifying gatherings include events hosted by recognized charitable nonprofits or similar public-good groups that serve food or drinks or charge entry. Gathering license holders can buy alcohol from package stores or importers. Package stores, Delaware manufacturers, and importers can donate alcohol only after the gathering license is granted. Applicants for two-year premises gathering licenses must give application notice. Repeat applicants previously licensed under the gathering rules are exempt from notice if they have no violations.

Licensed alcohol sellers can offer curbside

Businesses with qualifying off-premises alcohol licenses can offer curbside sales. A certified responsible alcohol server must complete and deliver each sale. Existing bans on sales to people under 21 or intoxicated people still apply.

Habitual-drinking sales bans and penalties end

The law ends the statutory process for banning alcohol sales to people identified as habitually drinking to excess. The specified people and local representatives can no longer start that process. It also removes the related offense for license holders who knowingly sold alcohol after receiving Commission notice. That offense carried a fine up to $100 and up to 30 days in jail for unpaid fines and costs.

Consumers get clearer alcohol information

Containers of infused drinks and batched cocktails must list every ingredient and the date made. Licensees must also follow the Commissioner's preparation and labeling rules. The Commissioner must publish license counts, licensee names and addresses, alcohol sales, and licenses granted or cancelled online yearly. Alcohol rules must focus mainly on public safety and consumers' interests without unduly restricting competition.

Alcohol wholesalers gain trade flexibility

Importers can sell beer in sixtel containers to licensed alcohol resellers, alongside half-barrel and quarter-barrel containers. To the extent federal law permits, the Commissioner cannot regulate credit deals between licensed wholesalers and package stores.

Retail alcohol tastings limited to stores

Only package-store license holders can get these spirits, wine, and beer tasting licenses. Tastings must happen in a separate area designated by the Commissioner where alcohol is not sold. Stores cannot charge customers for tastings.

Neighbors face stricter license hearing requirements

Under this hearing trigger, at least 10 qualifying residents or property owners must protest within 30 days after an alcohol-license application. At least 5 protesters must preregister to testify. Protesters must live or own property within 1 mile of the premises, including in an incorporated area within 1 mile.

Alcohol suppliers face fees and reporting

Supplier licenses cost $100 every two years for up to 200 cases imported yearly, or $1,000 for more than 200. Alcohol imports must go directly to a licensed Delaware warehouse operated, owned, or leased by a licensed Delaware importer. The alcohol must be unloaded and physically stored there. Covered manufacturers and distilleries must file verified price schedules annually by January 15, listing package details, contents, age, proof, wholesale prices, and discounts. A package store's exclusive brand is exempt if only that store sells it at retail in Delaware. Price changes alone do not require another filing between annual filings.

Event sellers face alcohol sourcing limits

Special-event licensees must buy all alcohol sold or served at events from licensed importers. After an event, an importer can buy back unopened bottles that can be resold. Importers must keep the purchase records the Commissioner requires. Licensees can hire concessionaires, but their agreements cannot share proceeds from alcohol sales.

Alcohol license fees fund overservice investigations

Covered alcohol licensees pay an extra $100 each year into the Overservice Investigation Fund. The fund pays investigator overtime or the hiring and equipping of additional agents. Agents investigate and prosecute licensees that serve intoxicated people. The law includes alternative phase-in schedules extending through August 15, 2026, and August 15, 2030.

Sponsors & Cosponsors

Sponsor

Daniel Cruce
Democratic • Senate

Cosponsors

Alonna Berry
Democratic • House
William Bush
Democratic • House
William J. Carson
Democratic • House
Krista Griffith
Democratic • House
Kerri Evelyn Harris
Democratic • House
Debra Heffernan
Democratic • House
Kyra L. Hoffner
Democratic • Senate
Claire Snyder-Hall
Democratic • House
John "Jack" Walsh
Democratic • Senate
Lyndon D. Yearick
Republican • House

Roll Call Votes

All Roll Calls

Yes: 57 • No: 0

House vote • 5/7/2026

Passed (3/5 required)

Yes: 37 • No: 0

Senate vote • 3/19/2026