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

Plain English Breakdown

Checked against official source text during the last sync.

Changes to Delaware Microbrewery Ownership Rules

This law changes the rules for how many breweries and brewpubs a single business owner in Delaware may run.

What This Bill Does

• Allows one business owner to hold up to three total licenses instead of just two types.
• Permits owners to choose between running two microbreweries and one brewpub or one microbrewery and two brewpubs.
• Keeps the maximum number of locations at three for any single owner under this rule.
• Allows a business to operate only one establishment if they prefer not to expand.

Who It Names or Affects

• Business owners who hold microbrewery licenses in Delaware
• Owners of brewpubs that are part of the same company as a microbrewery

Terms To Know

Microbrewery

A business that makes beer and sells it for people to take home.

Brewpub

A microbrewery that also has a restaurant where customers can eat and drink on site.

Limits and Unknowns

• The law does not state the exact date it becomes effective in this text.
• The rules only apply to businesses owned or controlled by the same person, not separate companies.

Official Summary Text

AN ACT TO AMEND TITLE 4 OF THE DELAWARE CODE RELATING TO MICROBREWERIES.
Currently, the microbrewery statute permits a business to own 1 microbrewery and up to 2 brewpubs (a microbrewery that also has a restaurant as part of its business). This legislation would permit a microbrewery to choose to operate either 2 brewpubs or 1 additional microbrewery and 1 brewpub, under common ownership. The total number of licenses the business could hold remains 3, but it allows the business to choose 2 microbreweries and 1 brewpub, or 1 microbrewery and 2 brewpubs. A microbrewery can also choose to operate just one establishment.

Current Bill Text

Legislation Document

SPONSOR:

Rep. Heffernan & Rep. Bush & Sen. Cruce

Rep. Yearick; Sens. Buckson, Huxtable, Lockman, Pinkney, Sokola, Townsend

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 170

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

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 512C, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 512C. Microbreweries; license; alternating premises.

(h) Notwithstanding § 546 of this title, a microbrewery may sell a product that the microbrewery manufactures for off-premises consumption at a licensee licensed under this section and

either

at up to 2 brewery-pubs licensed under § 512B of this title

or 1 additional microbrewery licensed under this section and 1 brewery-pub licensed under § 512B of this title

that are all owned or controlled by the same person.

SYNOPSIS

Currently, the microbrewery statute permits a business to own 1 microbrewery and up to 2 brewpubs (a microbrewery that also has a restaurant as part of its business). This legislation would permit a microbrewery to choose to operate either 2 brewpubs or 1 additional microbrewery and 1 brewpub, under common ownership. The total number of licenses the business could hold remains 3, but it allows the business to choose 2 microbreweries and 1 brewpub, or 1 microbrewery and 2 brewpubs. A microbrewery can also choose to operate just one establishment.