DE HB405

Permits licensed alcoholic beverage manufacturers in Delaware (breweries, wineries, distilleries, meaderies) to ship products directly to other entities under common ownership and control without going through the traditional three-tier distribution system.

Requires both shipping and receiving licensees to apply for and obtain a permit from the Commissioner demonstrating they meet licensing requirements and are under common ownership.

Defines "common ownership and control" as entities that manufacture the same brands, share majority directors/officers, and are owned 51 percent or more by one person or qualifying related persons (including trusts for family members or individuals holding the same interests).

Allows permit holders to sell received products as if manufactured on their own premises, provided they are licensed to manufacture that type of alcohol.

Applies to in-state licensed manufacturers and out-of-state suppliers who meet Delaware licensing requirements, as determined by the Commissioner.