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

Legislation Document

SPONSOR:

Sen. Cruce & Rep. Bush

Sens. Hoffner, Walsh; Reps. Berry, Carson, Griffith, Harris, Heffernan, Snyder-Hall, Yearick

DELAWARE STATE SENATE

153rd GENERAL ASSEMBLY

SENATE BILL NO. 243

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

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all members elected to each house thereof concurring therein):

Section 1. Amend § 101, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and by redesignating accordingly:

§ 101. Definitions.

As used in this title, in addition to their usual meaning:

(9) “Cabaret” means an establishment where patrons are entertained by performers who dance, sing, play

instruments

instruments,

or perform other legal acts for entertainment,

but not to include a dinner theater, and

where such entertainment may be performed during or after service or dinner, and where a minor, as defined in § 708 of this title, is to be denied admission to or permission to remain on premises after

9:00 p.m.

11:00 p.m.

(official eastern time) unless accompanied by a parent or by a legal guardian.

“Cabaret” includes a dinner theater.

(14) “Concert hall”

shall mean

means

an indoor facility used to host live entertainment that is owned, leased, under easement, and/or operated by any person and that has capacity for at least

600

500

patrons for any single event. In order for a facility to be licensed as a concert hall, the facility

shall

must,

host a minimum of

250

200

live music events in any biennial licensing period. A facility meeting this definition may license the entire building, including patio, with the concert hall license.

(17) “Disorderly house” means house, or reputed house, of prostitution, ill-fame or assignation.

(22) “Gathering of persons” or “gathering” means a banquet, picnic, bazaar,

fair

fair,

or similar private gathering or similar public gathering

where food or drink are sold, served or dispensed by

that is all of the following

:

a. Organized and hosted by an Internal Revenue Service-recognized § 501(c)(3)

nonprofit

organizations

organization or a similar organization serving the public good,

such as churches, colleges and universities, volunteer fire companies, political

parties

parties,

or other similar nonprofit groups having a common civic, social,

educational

educational,

or religious

purpose,

purpose.

b. Where food or drink are sold, served, or dispensed

or where entrance tickets are sold or entrance fees are required by

those

the

nonprofit

organizations.

organization.

(25) “Importer”

(25)a. “Importer”, “distributor”, or “wholesaler”

means

the person

a person, whether the person is a resident of this State or not,

transporting

alcoholic liquors,

or ordering,

authorizing

authorizing,

or arranging the transportation or shipment of alcoholic

liquors

liquors,

into this

State, whether the person is a resident or citizen of this State or not, said

State, the

person being permitted to sell

said

the

alcoholic liquors only to those persons licensed to resell alcoholic

liquors; provided, however, that nothing

liquors.

b. Nothing

contained in this definition

shall

may

be construed as prohibiting an importer from selling

such

the

alcoholic liquors to

either

an active owner of that

business

importer

for that

person’s

owner’s

use and not for resale or to a full-time, bona fide employee of that

business

importer

for that

person’s

employee’s

use and not for

resale; and provided further, that nothing

resale.

c. Nothing

contained in this definition

shall

may

be construed as prohibiting an importer from selling beer in

“half-barrel” or “quarter-barrel”

“half-barrel”, “quarter barrel”, or “sixtel”

containers to the holders of a

personal license.

license to resell alcoholic liquors.

d.

The Commissioner may enact

such

rules regulating the sale of alcoholic liquor to active owners and employees of licensed importers as

it

the Commissioner

deems necessary.

(36) “Package store” or “store” means an establishment whose principal business is the sale of alcoholic liquors for consumption off the establishment’s premises. “Package store” or “store” does not include a grocery store, convenience store, drug store, hotel, restaurant, club, delicatessen, tobacco retailer, or cigar store.

(40) “Restaurant” means any establishment

which

that

is regularly used and kept open principally for the purpose of serving complete meals to persons for

consideration

consideration, with at least 60% of the establishment’s gross receipts resulting from the sale of food,

and

which has seating

at tables

for 12 or more persons

at tables

and suitable kitchen facilities connected

therewith

to the establishment

for cooking an assortment of foods

for complete meals

under the charge of a chef or cook.

(41) “Retailer” means the person permitted to sell alcoholic liquors in a store in the State, not for consumption on the premises.

(43) “Special event venue” means an establishment that holds public or private gatherings of more than 250 persons, including festival, convention, rally, art festival, music event, or other similar open-air event, where food or drink are sold, served, or dispensed and which requires an entrance ticket or fee to attend.

(46) “Supplier” means an out-of-state manufacturer licensed by the federal government, or an entity licensed by the federal government as an importer, that acts as an agent of a manufacturer by facilitating sales between the manufacturer and a Delaware licensed importer.

Section 2. Amend § 304, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 304. Duties and powers of the Commissioner.

(a) The Commissioner, in accordance with the Delaware Administrative Procedures Act,

shall:

has the duty and power to do all of the following:

(1)

a.

Adopt and promulgate rules and regulations not inconsistent with this title or of any other law of

the

this

State, and all such rules and regulations

shall

have the force and effect of

law; provided, however, that no such

law.

b. A

rule or regulation

shall

may not

extend,

modify

modify,

or conflict with any law of this State or the reasonable implications

thereof; and provided further, however, that such

of a law.

c. The

rules and regulations, as established by the Commissioner,

shall

must

focus primarily on public safety and the best interests of the consumer and

shall

may not

unduly restrict competition within the alcoholic beverage

industry;

industry.

(2) Establish by rules and regulations an effective control of the business of manufacture, sale, dispensation,

distribution

distribution

, and importation of alcoholic liquors within and into

the

this

State, including the time,

place

place,

and manner in which alcoholic liquors

shall be

are

sold and dispensed, not inconsistent with this title or with any other law of this State. However,

such

the

rules and

regulations, as

regulations

established by the

Commissioner, shall

Commissioner may

not control or

regulate:

regulate any of the following:

a. Recreational equipment located on the business premises of any business selling alcoholic

beverages;

beverages.

b. Credit transactions between licensed wholesalers and licensed

retailers,

package stores,

to the extent permitted by federal

law;

law.

(3)

a.

Control the manufacture, possession,

sale

sale,

and delivery of alcoholic liquors in accordance with this title; and control the purchase, possession,

transportation

transportation,

and sale of alcoholic liquors by those licensed to manufacture or to

sell; provided, however, that the

sell.

b. The

Commissioner’s power to control the sale of alcoholic liquors

shall

may

not be exercised in such a manner as to prevent any holder of a

retail

package store

license for the sale of alcoholic liquors not for consumption on the premises where sold from giving a retail purchaser of a case or more of

spirits and/or wine

spirits, wine, or both

a discount not to exceed 10% of the total dollar

sale;

sale.

(4) Grant,

refuse

refuse,

or cancel licenses required by this title for the manufacture or sale of alcoholic liquor, or other licenses required by this title in regard thereto, and

to

transfer any license

granted;

granted.

(5)

a.

On petition signed by at least 10 individuals who are residents of the neighborhood, hear complaints

in regard to

regarding

the appointments of, or the conduct of business in, any establishment where alcoholic liquor is licensed to be sold.

Ten

b. The Commissioner’s office shall give 10

days’ notice of

such hearings,

a hearing by

sending the notice,

together with a recital of the complaint,

shall be sent

by

registered

first-class

mail

by the Commissioner’s office

to the address of the holder of the license for the

establishment and like notice shall be delivered

at the establishment by affixing the notice addressed to the holder of the license to the outside of an entrance door to the

establishment.

The hearings shall

c. A hearing must

be conducted by the Commissioner and

shall

must

be public.

The

For the purpose of a hearing, the

Commissioner

shall for the purpose of such hearings have

has the

power to issue subpoenas, compel the attendance of witnesses, administer oaths, take

testimony

testimony,

and compel the production of pertinent books, payrolls, accounts, papers,

records

records,

and documents.

In case any

d. Whenever a

person summoned to testify or to produce any such written or printed evidence

shall refuse,

refuses,

without reasonable cause, to be

examined or to

examined,

answer a legal and pertinent

question

question,

or

to

produce any such written or printed evidence, the Commissioner conducting the hearing may certify the fact of any

such

refusal to the Superior Court of the county in which

such

the

hearing is held and the court may proceed against the person

so refusing as

for a contempt and punish

such

the

person in the same manner as persons are punished for contempt of

court;

court.

(6) Determine and publish standards for the manner in which

the

a

dining room

or dining rooms

of a hotel,

restaurant

restaurant,

or club

shall

must

be equipped in order to be allowed to exercise the privilege of the sale of alcoholic liquors

therein;

in the dining room;

and examine the plans or premises proposed for use as a dining room and authorize their use in connection with a license to sell alcoholic liquors, but

such

the Commissioner’s

authorization

shall

does

not prevent

the requirement by

the Commissioner

of

from requiring

future alterations in accordance with published

standards;

standards.

(7)

a.

Compel the attendance of witnesses and the production of contracts, papers, books,

accounts

accounts,

and other documents.

b.

Subpoenas issued

shall

must

be signed by the

Commissioner and

Commissioner. Subpoenas

may be served by any sheriff, deputy sheriff,

constable

constable,

or any agent of the Division and return thereof made to the Commissioner.

c.

The Commissioner may enforce compliance with a subpoena issued

pursuant to

under

this subsection by filing a motion to compel in the Superior

Court, which shall have

Court that has

jurisdiction over the matter. The court may award costs and attorney fees if

it

the court

determines that noncompliance with a Commissioner subpoena was unjustified, intentional, or in bad faith.

(8)

Act, for

For

purposes of this

Title,

title, act

as the competent authority in connection with other matters pertinent

thereto;

thereto.

(9)

Make an annual report submitted to the Governor and members of the General Assembly

Annually publish license information on the Commissioner’s publicly available website

setting forth all matters of interest and all statistics concerning liquor regulation and control in

the

this

State,

including:

including all of the following:

a. The number of licenses of each variety issued within

the State;

this State.

b. The name and address of each person licensed to manufacture or to sell alcohol, spirits,

wine

wine,

and

beer;

beer.

c. The amount of alcohol, spirits,

wine

wine,

and beer sold within

the State;

this State.

d. The number of licenses of each kind granted and the number cancelled during the

year; and

year.

e.

Such other

Other

data

as may make

that makes

a complete report to the people of this

State;

State.

(10) Negotiate and, with the approval of the Governor, enter into reciprocal agreements with the duly authorized officials of other states of the United States relative to the manufacture, importation,

sale

sale,

and transportation of alcoholic liquors in the several

states;

states.

(11) Provide such special seals, labels and wrappers as deemed necessary for protection of the public against imitations, adulterations and frauds, and prescribe the proper use of the seals, labels and wrappers; and

(12)

(11)

Provide

such

warning signs as

may be

required by § 903(16) of this

title and

title,

distribute

such

the

warning

signs to license

holders

holders,

and promulgate regulations with respect to the posting of

said

the warning

signs. A nominal fee may be charged by the Commissioner to cover printing,

handling

handling,

and distribution costs.

(b) The Commissioner’s decision

shall be final and

is

conclusive unless, within 30 days after

the Commissioner’s office mails

notice

thereof has been mailed by the Commissioner’s office,

of the decision,

a party to

such

the

hearing files an appeal in the office of the Commissioner. Upon receipt of the appeal, the Commissioner shall cause the Chairperson of the Appeals Commission to be advised of the pending

appeal and the

appeal. The

Chairperson shall cause the

Appeals

Commission to be

convened

convened,

with at least 20

days

days’

notice to all parties. The appeal

shall

must

be heard by the Appeals Commission, who

shall,

shall review,

in accordance with the Administrative Procedures Act,

Title 29 of the Delaware Code, review

Chapter 101 of Title 29,

the matter on the record and affirm,

reverse

reverse,

or modify the

decision of the Commissioner.

Commissioner’s decision.

Section 3. Amend § 310, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 310. Deposit of receipts with

Division of Revenue.

the Office of the State Treasurer.

All moneys received by the Commissioner

shall

must

be paid to

the Division of Revenue of the Department of Finance. A monthly report of all receipts of the Commissioner shall be made to the State Treasurer.

state bank accounts custodied with the Office of the State Treasurer. The Commissioner shall maintain a record of all receipts and make records available to the Department of Finance, Division of Accounting, upon request.

Section 4. Amend § 313, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 313.

Annual audit.

Audit.

The operation of the office of the Commissioner

shall annually

must

be examined and audited by the

State

Auditor of

Accounts.

Accounts, as often as the Auditor of Accounts considers necessary.

Section 5. Amend § 501, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 501. Supplier and representative licenses;

importer;

delivery and storage at in-state warehouse.

(a)

(1)

Before

any

a

person sells

any

alcoholic liquor intended for importation into this State,

such

the

person shall

procure

do all of the following:

a. Obtain

from the Commissioner a supplier’s license in the form

to be

prescribed by the

Commissioner and shall pay therefor

Commissioner.

b. Pay

a biennial

license

fee in the amount of $100 to be permitted to sell not more than 200 cases of alcoholic liquors for importation into

the

this

State during the calendar year or a biennial fee in the amount of $1,000 to be permitted to sell more than 200 cases of alcoholic liquors for importation into this State during the calendar year.

(2)

This subsection

shall

does

not apply to any

of the following:

a. A

person licensed under subsection (b) of this

section or to any

section.

b. A

person who

either

is licensed by the Commissioner and has a place of business in this State for the manufacture or sale of alcoholic

liquors or

liquors.

c. A person who

is an officer, director, or employee of a

person,

person who is

licensed by the

Commissioner, having

Commissioner and has

a place of business in this State for the manufacture or sale of alcoholic liquors.

(b)

(1)

Before

any

a

person

shall

may

do any business in this State in any manner whatsoever as a sales representative of a person who sells any alcoholic liquors intended for importation into this State,

such

the

person shall

first obtain

do all of the following:

a. Obtain

from the Commissioner a sales representative license in the form to be prescribed by the

Commissioner and shall pay

Commissioner.

b. Pay

a

$50

biennial

fee therefor in the amount of $50.

license fee.

(2)

Unless employed in any way by a person required to be licensed under subsection (a) of this

section above,

section,

this subsection

shall

does

not apply to any

person, who either is licensed

of the following:

a. A person who is licensed

by the Commissioner and

shall not apply to any person, who either is licensed by the Commissioner and

has a place of business in this State for the manufacture or sale of alcoholic

liquors or is

liquors.

b. A person who is

an officer,

director

director,

or employee of a

person,

person who is

licensed by the

Commissioner, having

Commissioner and has

a place of business in this State for the manufacture or sale of alcoholic liquors.

(c)

(1)

This section

shall

does

not apply to a daily importation into

the

this

State of a quantity of alcoholic liquor

which

that

does not exceed

that

the

amount

which

of alcoholic liquor

the United

states

States

government permits to be imported into the United States without payment of any duty thereon, provided such alcoholic liquor is imported

by

as follows:

a. By

a person permitted by the laws of this State to purchase and consume alcoholic

liquor and that such alcoholic liquor is imported solely

liquor.

b. Solely

for consumption by the person importing it or the person’s family or guests.

(2)

If such importation is by motor vehicle, the alcoholic liquor

shall

must

be transported in an area of the motor vehicle not immediately accessible to the driver or to any

passenger therein.

passenger in the motor vehicle.

(d) Persons licensed by the Commissioner as suppliers

pursuant to

under

this section

shall be

are

authorized only to sell,

ship

ship,

or deliver alcoholic liquors to licensed Delaware importers or manufacturers, and persons licensed by the Commissioner as sales representatives

pursuant to

under

this section

shall be

are

authorized only to solicit orders, on behalf of licensed Delaware importers or manufacturers, from persons licensed by the Commissioner to sell alcoholic liquors.

(e) The Commissioner may promulgate

such

rules and regulations

as it

the Commissioner

deems necessary for the enforcement or furtherance of the objectives of this

section and it may

section. The Commissioner may

provide by such rules or regulations that the applicant for a supplier’s license may pay a fee for each calendar year or pay the increased fee during any calendar year without the filing of an additional application.

(f) No

(f)(1) A

person may

not

import

into this State any

alcoholic liquor

into this State,

unless

it

the alcoholic liquor

is delivered directly to a licensed warehouse

or warehouses

in

Delaware

this State

owned,

leased

leased,

or operated by a licensed Delaware importer and is unloaded and physically stored in

said warehouse or warehouses.

the warehouse

(2) An importer licensed as a supplier by the Commissioner must deliver alcoholic liquors directly to a licensed

warehouse

in this State owned, leased, or operated by a licensed Delaware importer and unload and physically store the alcoholic liquors in the warehouse.

Section 6. Amend § 508, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 508. Filing of price schedules required.

(a) All manufacturers and distilleries offering

for sale in the State

alcoholic liquors

other than beer or wine,

for sale in this State

shall

annually

file

by January 15 of each year or within 30 days of the first time they become licensed in the State to sell such alcoholic liquors,

a verified schedule, in writing,

in the number of copies and

on the form required by the

Commissioner, which

Commissioner. A verified

schedule

shall

must

contain

all of

the following information as to each item

they

the manufacturers and distilleries

are offering for sale at that time, in

the

this

State, by brand or trade name:

(1) The capacity of each package

thereof so

of an item

offered for

sale;

sale.

(2) The nature of the contents

thereof;

of an item.

(3) The age and proof

thereof

of an item

where stated on the container

label;

label.

(4) The number of bottles

thereof

of an item

contained in a case of

such items;

the item.

(5) The

individual

bottle and case price to the Delaware wholesaler or importer,

which prices in each such instance shall be individual

for each item and not in combination with any other

item; and

item.

(6) The discount given for quantity or time of payment, if any.

Any such

(b) A verified

schedule need not contain

any such

information as to any brand

which

that

is owned exclusively by a

retailer

package store

and sold at retail in

Delaware

this State

exclusively by

such a retailer.

the package store.

(b) Such

(c) A

schedule of prices or price of

an

individual item need not be filed at any time other than provided for in subsection (a) of this section and need not be updated any time a manufacturer or distillery changes such prices between

such

required filing times.

Section 7. Amend § 512A, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 512A. Farm wineries.

(b) A farm winery licensee

shall also be authorized to

may

store and sell wine, mead, and cider on the premises by the bottle or by the glass for consumption on or off the premises where sold. A farm winery licensee

shall be permitted to

may

purchase and store product from a Delaware licensed importer or

retailer

package store,

licensed under § 516 of this title, and sell

said

the

product to its retail customers for consumption on the premises where

sold

sold,

so long as the product is manufactured by an entity that holds a Delaware license

pursuant to

under

§ 512A, § 512B,

§ 512C

§512C,

or § 512E of this title or the manufacturer, as determined by the Commissioner, would qualify for a license under

said

1 or more of these

sections if

it

the manufacturer

were physically located in

the

this

State.

(j) A farm winery licensee

shall be prohibited from owning or operating

may not own, operate,

or

being

be

affiliated with any importer or

retailer of alcoholic liquor either

package store,

within or without this State.

Notwithstanding the foregoing, it shall be permissible for

But

a farm winery

to

may

apply to the Commissioner for a license, under § 512(g)(1) of this title, for use of a portion of the farm winery premises as a

caterer,

caterer

or

to

apply to the Commissioner for a license, under this title generally, for use of a portion of the farm winery premises as a restaurant.

Section 8. 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.

(c) Notwithstanding any provision of this title to the contrary, a microbrewery license allows the licensee to do all of the following:

(5) To purchase and store product from a Delaware licensed importer or

retailer

package store

licensed under § 516 of this title, and sell the product to its retail customers for consumption on the premises where

sold

sold,

so long as the product is manufactured by an entity that holds a Delaware license under § 512A, § 512B, § 512C, or § 512E of this title or the manufacturer, as determined by the Commissioner, would qualify for a license under 1 or more of these sections if the manufacturer were physically located in

the

this

State.

Section 9. Amend § 512E, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 512E. Craft distillery.

(c) Notwithstanding any provision of this title to the contrary, a craft distillery license

shall allow the licensee:

allows the licensee to do all of the following:

(1)

To manufacture

Manufacture,

on the licensed

premises

premises,

and sell not more than 750,000 proof gallons of distilled spirits in

any

a

calendar

year;

year.

(2)

To manufacture

Manufacture

spirits, on the licensed premises, for persons other than the licensee who are licensed under this title or for persons outside this

State;

State.

(3)

To sell, deliver

Sell, deliver,

and ship such spirits in labeled barrels,

bottles

bottles,

or other closed containers to persons licensed under

the provisions of

this title to import spirits; and

to

sell and ship spirits to persons outside of

the

this

State in accordance with this

title;

title.

(4)

To store

Store

and sell spirits on the premises by the bottle or by the glass for consumption on or off the premises where sold; and to purchase alcoholic beverages from licensed Delaware importers or

retailers

package stores

to add to product manufactured by the craft distillery to sell to patrons for

on premises

on-premises

consumption only. The amount of spirits sold for off-premises consumption

shall

must

be limited to a maximum of 1 case

(i.e., not more than 12-750 ml

(12 750-milliliter

bottles) per day to each retail customer for consumption off the

premises;

premises.

(5)

To purchase

Purchase

and store product from a Delaware licensed importer or

retailer

package store

licensed under § 516 of this title, and sell

said

the

product to its retail customers for consumption on the premises where

sold

sold,

so long as the product is manufactured by an entity that holds a Delaware license

pursuant to

under

§ 512A, § 512B,

§ 512C

§ 512C,

or § 512E of this title or the manufacturer, as determined by the Commissioner, would qualify for a license under

said

1 or more of these

sections if

it

the manufacturer

were physically located in

the State; and

this State.

(6)

To sell,

Sell,

on the licensed premises, food items, souvenirs, spirit-related

supplies

supplies,

and educational material as approved by the Commissioner.

(m) The provisions of § 506 of this title to the contrary notwithstanding, the holder of a craft distillery license

shall be permitted to

may

have an interest in, be affiliated with, or own another supplier or manufacturer, whether located inside or outside

the State, provided that the total domestic sales of all affiliated suppliers or manufacturers shall not exceed 750,000 proof gallons in any calendar year.

this State.

Section 10. Amend Subchapter II, Chapter 5, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 512H. Special event license.

(a)(1) Subject to the provisions, restrictions, and prohibitions of this title, the Commissioner may grant a special event license to a qualified applicant, upon the applicant paying the application process fee set forth in § 554 of this title and submitting all documentation required by the Commissioner. Subject to rules and regulations established by the Commissioner, a special event license permits a licensee to sell and serve alcoholic liquors on the licensed premises at each special event the licensee hosts on the licensed premises for consumption on the licensed premises.

(2) A qualified applicant may not be granted more than 1 special event license.

(b)(1) The licensee may have an office outside this State, but the licensed premises where the special event will take place and where alcoholic liquors will be sold, served, dispensed, or consumed must be located in this State.

(2) In addition to the requirements of paragraph (b)(1) of this section, the licensed premises must meet all of the following requirements:

a. The licensed premises must be owned or leased by the licensee.

b. The licensed premises must not be more than 3 acres in size.

c. The licensed premises must be sufficiently designated, enclosed, secured, and maintained.

d. The licensed premises must contain fencing or a wall not less than 30 inches high that, at a minimum, encloses the area where alcoholic beverages will be sold, served, dispensed, and consumed.

e. The licensed premises must be maintained in compliance with all applicable zoning, health, and fire safety requirements.

(3) If a licensee fails to comply with paragraph (b)(2) of this section, the licensee’s special event license is suspended, under § 561 of this title, until the licensee complies with paragraph (b)(2) of this section.

(c) At least 30 days before the date of a special event, a licensee must report the special event to the Commissioner for the Commissioner’s review and approval. For each special event, all of the following conditions apply:

(1) Sufficient restrooms or enclosed portable toilets must be provided within the licensed premises during the special event.

(2)a. Sufficient food must be available to consumers for consumption on the licensed premises during all hours that the licensee is selling and serving alcoholic liquors. Items like bags of chips and pretzels are insufficient.

b. The food may be prepared on the licensed premises, provided by a food truck or a caterer, or consist of prepackaged items, such as sandwiches, burgers, and hot dogs of sufficient quantity in relation to the alcoholic liquors being sold and served.

(3) Tents, mobile units, and other temporary fixtures located on the licensed premises must be approved by the appropriate political subdivision and reported to the Commissioner at least 20 days before the special event.

(4) The appropriate political subdivision responsible for regulating the licensed premises must have provided written approval for the special event.

(d) A licensee must purchase all alcoholic liquors sold and served at a special event from importers licensed under § 501 of this title. Notwithstanding any provision of this title to the contrary, an importer may buy back any unopened and resalable bottles of alcoholic liquors at the end of a special event. An importer shall keep all records, as required by the Commissioner, necessary to document the purchase of products under this subsection.

(e)(1) Notwithstanding any provisions of this title to the contrary, whenever the Commissioner finds that a licensee fails to meet any of the requirements of this section or that the licensee misrepresented information in its application, the Commissioner may do 1 or more of the following:

a. Suspend the licensee’s special event license.

b. Deny any future applications for a special event license for a period of up to 2 years after the Commissioner finds that a failure or misrepresentation has occurred.

c. Impose a fine of up to $10,000 per violation.

(2) Before any new special event license may be issued, all penalties imposed by the Commissioner under this subsection must be resolved.

(f) Licensees are subject to the restrictions on the hours of sale of alcoholic liquors set forth in § 709(c) of this title, to the prohibitions of overservice, and the prohibition of sales to minors set forth in § 708 of this title.

(g) A licensee is permitted to enter into a concessionaire agreement, but a concessionaire agreement may not permit the sharing of proceeds from alcohol sales.

Section 11. Amend § 514, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§

514. Gathering licenses; consumption on premises.

(a) If alcoholic liquors are to be sold during a gathering of persons, the manager or person in charge of

such

the

gathering,

gathering of persons,

or the owner,

tenant

tenant,

or person in charge of the premises in which the gathering

of persons

is being held, must obtain 1 of the types of gathering licenses provided for in this section.

Either of said

Both types of gathering

licenses

shall

permit consumption of

alcohol

alcoholic liquors

on the premises where sold and

shall

permit sale of

alcohol

alcoholic liquors

for consumption off the premises where sold by way of a raffle or auction, live or silent, so long as the amount of

alcohol

alcoholic liquors

sold for consumption off of the premises where sold does not exceed 10 gallons (or 38 liters) in a single day.

(b)

There shall be

The

2 types of gathering licenses

which

that

may be granted

hereunder:

under this section are as follows:

(1) Gathering License — Group. — The manager or person in charge of a gathering of persons at which alcoholic liquors are to be sold shall apply for a group type gathering

license, which license,

license that,

if granted,

shall be

is

valid only for the

time, and

time and

at the

location,

location

specified in the

application therefor.

license application.

A group gathering license

shall

is

not

be

required if the

said

gathering

of persons

is being held on premises

which

that

are validly licensed under a biennial premises gathering license issued

pursuant to

under

paragraph (2) of this subsection.

(2) Gathering License — Biennial Premises. — The owner,

tenant

tenant,

or person in charge of the premises, other than a residence, on which gatherings of persons are held, may apply for a biennial premises type gathering

license, which license shall be

license that is

valid for the entire 2 years for gatherings of persons at the location specified in the

application therefor.

license application.

(c) A holder of a gathering license may purchase alcoholic liquors for sale at a gathering of persons from either

retailers

package stores,

or importers and

such retailers

the package stores,

and importers

shall be permitted to

may

make deliveries to persons holding

a

gathering

licenses.

license.

A holder of a gathering license granted

pursuant to

under

this section

shall be

is

exempt from paying the application process fee as provided in

subsection (x) of § 554

§ 554(x)

of this title.

(d) For purposes of this section only, the price paid for alcoholic liquors to be sold at a gathering of persons licensed under this section

shall

must

be a price agreed upon between the

said

licensee and the

retailer

package store, in-state manufacturer,

or importer from whom

said

the

alcoholic liquors are purchased.

It is permissible for a retailer

A package store, in-state manufacturer,

or importer

to

may

donate some or all of the

alcoholic

liquor to the gathering licensee so long as a license has been granted for the gathering

of persons

by the Commissioner prior to the donation.

(e) Any person holding a biennial premises gathering license granted

hereunder

under this section

must report each gathering of persons to be held

in

on

its

facilities

premises

to the

Commissioner, which

Commissioner. The

report may be made in person, in writing, or by

telephone and the

telephone. The

report must be received by the Commissioner not later than

12:00

noon

of

on

the day

on which

the gathering

of persons

is to be

held, unless it

held. But if the gathering of persons

is to be held on a day

on which

the

Commissioner shall be

Commissioner’s office is

closed,

in which case it

the gathering of persons

must be

so

reported on the last day on which the Commissioner is open immediately preceding

such gathering.

the gathering of persons.

(f)

Any

A

person holding a gathering license of either type granted

hereunder

under this section

who has purchased alcoholic liquors for sale at a gathering of persons may return any unopened bottles

so purchased

to the licensee from whom they were purchased and shall receive

therefor

the amount paid for each

said

bottle, so long as

such return is made

the bottles are returned

within 30 days of the date of the gathering

of persons

for which

they

the bottles

were purchased. A biennial premises type gathering licensee

shall

is

not

be

required to return bottles it has purchased for sale during

such gathering,

the gathering of persons,

but may store

them

the bottles

in a suitable storage facility for sale at a future gathering of persons to be held

within its facilities.

on the licensee’s premises.

(g) All holders of gathering licenses

hereunder shall be

under this section are

subject to the restrictions on the hours of sale of alcoholic liquors set forth in § 709(c) of this title and to the prohibitions of sales to minors set forth in § 708 of this title.

(h) It

shall

is

not

be

necessary to obtain a license to dispense alcoholic liquors at a gathering of persons if no alcoholic liquors are to be sold at that gathering of persons. Importers may sell and deliver beer directly to persons for dispensing at a gathering of persons and not for resale.

(i) An applicant for a biennial premises type gathering license, as defined in § 554 of this title, must give notice of the application as required by § 524 of this title, but an applicant who has previously been granted a license under this section and has no violations is not required to give notice.

Section 12. Amend § 515A, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 515A. Licenses for bottle clubs.

(c) The Commissioner may

only

grant a bottle club license

only

to the following:

(1) A person doing business in an establishment meeting the standards of a restaurant. The license permits the establishment to operate as a bottle club on every day of the week and on holidays, except between the hours of 2:00 a.m. and 9:00 a.m. during which time alcoholic liquors may not be consumed on the premises of the establishment.

(2) A person renting premises to customers for holding weddings or other social gatherings where there is adequate food, as determined by the Commissioner, provided by the customer or a caterer. The license permits the establishment to operate as a bottle club on every day of the week and on holidays, except between the hours of 2:00 a.m. and 9:00 a.m. during which time alcoholic liquors may not be consumed on the premises of the establishment. If a bottle club licensed under this paragraph (c)(2) has a function that utilizes

an

a licensed

off-site caterer, all alcohol must be provided by the

licensed

off-site caterer.

(3) A person doing business in a licensed establishment where persons pay a fee to participate in a creative arts experience, including painting, pottery-making, candle-making, and other similar activities, and where sufficient food is provided by the establishment’s owner or by the customer while alcoholic liquors are being consumed. Prepackaged chips, pretzels, and other similar food items are not sufficient food. The license permits the establishment to operate as a bottle club on every day of the week and on holidays, except between the hours of 11:00 p.m. and 9:00 a.m., during which time alcoholic liquors may not be consumed on the premises of the establishment.

Section 13. Amend § 516, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 516. Consumption off

the

premises of

a package store,

hotel, restaurant, club,

store

or taproom.

(a) (1)

a.

Any person in charge of a

hotel, restaurant, club or

package

store

(other than a grocery, delicatessen or cigar store),

whether owner,

lessee

lessee,

or manager, and recognized as such by the Commissioner, may apply to the Commissioner for a license to purchase from an importer and to keep and sell and deliver on the premises only spirits,

wine

wine,

or beer by the bottle, half bottle, keg, half keg, quarter keg, or sixtel, but not for consumption on the premises where sold, or in any dependency thereof.

b.

All vessels

so

sold

shall

must

be delivered to the purchaser and

shall

must

be removed from the premises where sold with the seals of

such

the

vessels unbroken,

with the exception of those licenses that are

unless a license is

approved by the Commissioner for a growler filler

permit which

permit. A growler filler permit

allows a licensee to purchase beer by the keg or partial keg and fill containers at time of purchase which will then be capped to leave the licensed premises for consumption off

of

the premises.

c.

For purposes of issuing a new license under this section, all establishments licensed for the sale of alcoholic liquors, but not for consumption on the premises where sold,

shall be

are

considered as being of the same

type; provided, however,

type. But

this

shall

paragraph (a)(1)c. does

not apply to the transfer of ownership or the renewal of an existing license.

(2)

Any

A

person in charge of a

store (other than a grocery, delicatessen or cigar store),

package store,

whether owner, lessee, or manager, and recognized as such by the Commissioner with a valid license for consumption off premises issued

pursuant to

under

this section may sell spirits,

wine

wine,

or beer

pursuant to

under

paragraph (a)(1) of this

section

section, including sales

for curbside service.

Any

An

entity with a valid

off premise

off-premises

license

pursuant to §§

issued under

§

512A through

§

512E of this title may sell alcoholic liquor

pursuant to its license

for curbside

service.

service under the entity’s off-premises license.

All sales for curbside service must do all of the following:

a. Comply with Chapter 7 of this

title

title,

including § 706 of this title, which prohibits sales to intoxicated individuals, and § 708 of this title, which prohibits sales to individuals who have not reached the age of 21 years.

b. Be completed and delivered by a person certified as a responsible alcoholic beverage server

pursuant to

under

§ 1205 of this title.

(b) Notwithstanding the provisions of subsection (a) of this section, any person,

firm

firm,

or corporation duly licensed by the government of the United States as a

ships

ship’s

chandler, may apply to the Commissioner for a license to purchase and to keep,

sell

sell,

and deliver off the premises, spirits,

wine

wine,

or beer. The Commissioner may issue

said

the

license if

it

the Commissioner

is satisfied

that: (1)

that all of the following conditions are met:

(1)

The applicant is a

ships

ship’s

chandler operating a customs bonded warehouse under a license issued by the United States

government, and (2) sales

government.

(2) Sales

by

ships

a ship’s

chandler are limited to vessels of the United States or of a foreign country engaged in foreign trade

pursuant to § 1309 of Title 19 of the United States Code.

under 19 U.S.C. § 1309.

(c)

No

A

person in charge of a taproom,

restaurant, or club,

whether as owner, lessee,

manager

manager,

or otherwise, may

not

apply for a license to sell alcoholic liquors for consumption off the premises where sold, and the Commissioner

shall

may

not issue such a license for use in a

taproom. Provided, however, that any

taproom, restaurant, or club, except as follows:

(1) A

person issued a license

which

that

authorizes the person to sell alcoholic liquors in a taproom for consumption off the premises prior to July 6, 1983,

shall be permitted to

may

retain

said

the

license, unless revoked by the Commissioner

pursuant to

under

this

title; and provided further, that any

title.

(2) A person issued a license that authorizes the person to sell alcoholic liquors in a restaurant or club for consumption off the premises before [the effective date of this Act] may retain the licenses, unless revoked by the Commissioner under this title.

(3) A

person issued a license

which

that

authorizes the person to sell alcoholic liquors in a taproom for consumption off the premises prior to July 6, 1983,

shall be permitted to

and person issued a license that authorizes the person to sell alcoholic liquors in a restaurant or club for consumption off-the-premises before [the effective date of this Act] may

transfer

said

the

license with the approval of the Commissioner as provided in § 571 of this title.

Section 14. Amend § 524, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 524. Notice of application.

(d) The notices referred to in subsections (b) and (c) of this section

shall

must

provide

such

information as determined by the Commissioner either through duly adopted rules or on a

case by case

case-by-case

basis. The following

notice will,

notice,

in addition to the

aforesaid Commissioner approved

Commissioner-approved

notice,

satisfy

satisfies

this notice provision:

“[Name of applicant] has on [Date of application] applied with the Alcoholic Beverage Control

Commissioner

(“Commissioner”) for

[Nature of application]

[type of license]

for a premises located at [Location of the premises, including street and city].

[Applicant may include additional information about the application].

Persons who are against this application should provide written notice of their objections

(“protest”)

to the Commissioner. For the Commissioner to be required to hold a hearing to consider additional input from persons against the application, the Commissioner must receive

one

1

or more documents containing

a total of

at least 10 signatures of residents or property owners located within 1 mile of the premises or in any incorporated areas located within 1 mile of the

premises. The protest(s) must be filed with the Alcoholic Beverage Control Commissioner at the 3rd Floor, Carvel State Office Building, 820 North French Street, Wilmington, DE 19801.

premises and at least 5 residents or property owners who filed a protest

and who reside or own property within 1 mile of the premises where the license is to operate or in any incorporated areas located within 1 mile of the premises where the license is to operate

must pre-register to provide testimony at the hearing.

The protest(s) must be received by the Commissioner’s office on or before [state a date at least 30 days after the application is filed].

The protest(s) can be emailed to the email address provided on the Commissioner’s website or delivered or mailed to the Office of the Alcohol Beverage Control Commissioner, Carvel State Office Building, 820 North French Street, Wilmington, DE 19801.

Failure to file such a protest may result in the Commissioner considering the application without further notice, input or hearing. If you have questions regarding this matter please contact the Commissioner’s

Office.”

Office by emailing the email address provided on the Commissioner’s website.”

Section 15. Amend § 525, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 525. Spirits,

wine

wine,

and beer tasting.

A license to permit spirits,

wine

wine,

and beer tasting may be granted by the Commissioner to any person holding a license

under this title as a retailer.

as a package store under § 516 of this title.

Spirits,

wine

wine,

and beer tasting may take place only in a separate portion of a licensee’s premises where alcoholic beverages are not sold. The separate portion of the premises

shall

must

be an area designated for spirits,

wine

wine,

and beer tasting by the Commissioner.

No charge

There

may

not

be

a charge

made for the spirits,

wine

wine,

and beer tasting.

Section 16. Amend § 541, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 541. Procedural requirements governing Commissioner’s action; hearing; appeal.

(b) If 10

(b)(1) A hearing must be held to consider the application and protest and, specifically, the concerns of the members of the community within which the license is to operate if all of the following conditions are met:

a. Ten

or more persons who reside or own property within 1 mile of the premises where the license is to operate or in any incorporated areas located within 1 mile of the premises where the license is to operate file a protest against the issuance of the license with the Commissioner within 30 days from the filing of the

application, then a hearing must be held to consider the application and protest and, specifically, the concerns of the members of the community within which the license is to operate.

application.

b. Five or more of the persons who filed a protest under paragraph (b)(1)a. of this section and who reside or own property within 1 mile of the premises where the license is to operate or in any incorporated areas located within 1 mile of the premises where the license is to operate pre-register to provide testimony.

(2)

The Commissioner may hold a hearing in the absence of a protest.

(3)

The Commissioner shall cause notice of the time and location of the hearing to be

published in 2 consecutive issues of the same newspapers within which the applicant published notice of the applicant’s application for the license.

posted on the State Public Meeting Calendar.

The Commissioner shall send notice of the time and location of the hearing to the applicant and to each of the persons who signed the protest and provided a legible name and

address; provided, however, that it

address. It

is sufficient for the Commissioner to send notice to the attorney of a person who is represented by legal counsel.

(4)

The Commissioner shall conduct the hearing and shall make and keep a record of the hearing. The record must include the evidence, the Commissioner’s findings of fact, the Commissioner’s

decision

decision,

and a brief statement of the reasons therefor. The Commissioner’s decision must show the manner in which the Commissioner construed the law and applied it to the facts, must recite any objections presented by the community, and must show how and the extent to which the Commissioner took community concerns into account and gave them due consideration when making the decision.

(c) The Commissioner’s decision must be in writing and

shall be final and

is

conclusive unless, within 30 days from the date of the postmark on the Commissioner’s decision, a party to the hearing files a written appeal in the office of the Commissioner. Upon receipt of the appeal, the Commissioner shall cause the Chairperson of the Appeals Commission to be advised of the pending

appeal and the

appeal. The

Chairperson shall cause the Appeals Commission to be convened with at least 20 days’ notice to all parties. The Appeals Commission’s review of an appeal from the Commissioner’s final decision

shall

must

be on the record and in accordance with the Administrative Procedures Act, subchapter III of Chapter 101 of Title 29. A decision of the Commissioner

shall

may

be reversed only upon a finding of abuse of discretion.

(d) A party who is aggrieved by a final decision of the Appeals Commission may file a written appeal with the Superior Court within 30 days of the date that the Appeals Commission’s decision was mailed. The Superior Court’s review of an appeal

shall

must

be on the record and in accordance with the Administrative Procedures Act, subchapter V of Chapter 101 of Title 29. The Superior Court’s review

shall

must

take into account the experience and specialized competence of the agency and the purpose under which the agency acted.

Further, the Superior Court’s review, in

In

the absence of fraud,

shall be

the Superior Court’s review is

limited to whether the agency’s decision is supported by substantial evidence on the record and is free from legal error.

Section 17. Amend § 546, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 546. Limit on number of

retail

package store

licenses.

(a)

(1)

The General Assembly finds that, in order for the

Delaware Alcoholic Beverage Control

Commissioner to maintain effective control of the importation,

distribution

distribution,

and sale of alcoholic liquor into and within this State, and in order to prevent geographical price fixing of alcoholic liquor at the retail level, there

shall

must

be a limitation placed on the number of

retail

package store

licenses issued, held,

controlled

controlled,

or acquired directly or indirectly by 1 person.

(2)

The General Assembly further finds that a limitation on the number of

retail

package store

licenses held by 1 person is necessary to ensure a stable system for the lawful distribution of alcoholic liquor, serve the public need and

convenience

convenience,

and prevent the public harm associated with a monopoly of the

retail

package store

alcoholic liquor trade by any person or group of persons, whether

such

the package store

licenses are held by a corporation, partnership, association, proprietorship,

individual

individual,

or other entity.

(3)

The General Assembly further finds that a reasonable restriction on the number of

retail

package store

licenses held by 1 person will further the State’s interest in maintaining a 3-tier system for the importation,

distribution

distribution,

and sale of alcoholic liquor by minimizing or limiting absentee ownership and the domination of

retail establishments

package stores

by suppliers, manufacturers,

importers

importers,

or other economically powerful interests.

(4)

Therefore, it is declared to be the public policy of this State that limitations, as

hereinafter specified,

specified under this section,

be placed on the number of

retail

package store

licenses that

any

a

person may at 1 time hold, directly or indirectly, and that the Commissioner shall actively supervise and enforce these limitations.

(b)

(1)

The Commissioner shall refuse to grant a license for the sale of alcoholic liquor by any restaurant, taproom, hotel,

store

package store,

or other establishment for consumption off the premises where sold if the Commissioner has substantial evidence that would reasonably support a belief that the

applicant, or

applicant;

any of the applicant’s directors,

officers

officers,

or

shareholders,

shareholders;

or any of the applicant’s partners, corporations,

proprietorships

proprietorships,

or other legal entities engaged in any undertaking,

industry

industry,

or business is singularly, or in combination with the applicant, the holder of 2 or more

retail

package store

licenses, or has any financial, pecuniary, beneficial, management,

supervisory

supervisory,

or other interest whatsoever, direct or indirect, and however small, in 2 or more

retail licenses; provided, however, that nothing herein shall require

package store licenses.

(2) Nothing in this section requires

any person who, prior to April 1, 1992, acquired an interest in more than 2

retail

package store

licenses to surrender, dispose of, or release

their

the person’s

interest in any such

license; nor shall anything herein affect such

license and nothing in this section affects the

person’s right to continue to hold,

use

use,

and renew any such license.

(c)

(1)

For the purposes of this section, a person

shall be

is

deemed to acquire a financial, pecuniary, beneficial, management,

supervisory

supervisory,

or other interest in a

retail

package store

license to purchase and

re-sell

resell

or dispense alcoholic liquor if

such

the

person or person’s spouse or child under 21 years of age has

either (i) any

1 or more of the following:

a. Any

interest whatsoever, direct or indirect, and however small, as a director, officer, shareholder, partner, associate,

employee

employee,

or member in any corporation, partnership, association,

proprietorship

proprietorship,

or other entity engaged in any undertaking,

industry

industry,

or business

which

that

holds a

retail

package store

license

pursuant to

under

this

chapter, or (ii) any

chapter.

b. Any

authority whatsoever to supervise, manage,

control

control,

or direct the operation of the licensee’s

business, or

business;

to hire,

terminate

terminate,

or discipline

its employees,

the licensee’s employees;

or to issue any orders,

policies

policies,

or directives concerning

its business; provided, however, that any

the licensee’s business.

(2) For the purposes of this section, any

person whose relationship with the licensee is, as determined by the Commissioner, merely that of a bona fide lender, lending institution, secured

party

party,

or lienholder, or merely that of a bona fide landlord or lessor of real or personal property,

shall not, for the purposes of this section, be

is not

deemed to acquire a financial, pecuniary, beneficial, management,

supervisory

supervisory,

or other interest in

such

the package store

license.

(d) The Commissioner may promulgate

such

rules and regulations with respect to the enforcement and furtherance of the objectives and provisions of this section as

it

the Commissioner

may deem

necessary, and all such

necessary. All

rules and regulations that are not inconsistent with provisions of this title and the

Delaware

Code

shall

have the force and effect of law.

Section 18. Amend § 554, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 554. License fees [Effective until Aug. 15, 2026].

(kk) Each of the licensees identified in subsections

(a)-(h), (t)-(w),

(a) through (h), (t) through (w),

(y), (z), (bb), (cc), (dd), (ff), (gg), (hh), (ii), (mm),

and (qq)

(qq), and (rr)

of this section, shall pay an additional annual fee of $100. The Commissioner shall deposit

said funds

the additional annual fees

into a special account designated as the “Overservice Investigation Fund.”

Said fund shall

The Overservice Investigation Fund must

be utilized by the Division of

Alcohol and Tobacco Enforcement

to pay overtime to its

agents and/or

agents,

to hire and equip additional

agents

agents, or both

for the purpose of investigating and prosecuting licensees that serve intoxicated individuals.

(uu) For a special event license issued under § 512H of this title, the biennial license fee is as follows:

(1) $1,000 for a license to hold 12 or fewer special events per calendar year.

(2) $ 2,000 for a license to hold more than 12 special events per calendar year.

§ 554. License fees [Effective Aug. 15, 2026; Effective until Aug. 15, 2030].

(kk) Each of the licensees identified in subsections

(a)-(h), (t)-(w),

(a) through (h), (t) through (w),

(y), (z), (bb), (cc), (dd), (ff), (gg), (hh), (ii), (mm),

and (qq)

(qq), and (rr)

of this section, shall pay an additional annual fee of $100. The Commissioner shall deposit

said funds

the additional annual fees

into a special account designated as the “Overservice Investigation Fund.”

Said fund shall

The Overservice Investigation Fund must

be utilized by the Division

of Alcohol and Tobacco Enforcement

to pay overtime to its

agents and/or

agents,

to hire and equip additional

agents

agents, or both

for the purpose of investigating and prosecuting licensees that serve intoxicated individuals.

(uu) For a special event license issued under § 512H of this title, the biennial license fee is as follows:

(1) $1,000 for a license to hold 12 or fewer special events per calendar year.

(2) $ 2,000 for a license to hold more than 12 special events per calendar year.

§ 554. License fees [Effective Aug. 15, 2030].

(kk) Each of the licensees identified in subsections

(a)-(h), (t)-(w),

(a) through (h), (t) through (w),

(y), (z), (bb), (cc), (dd), (ff), (gg), (hh), (ii), (mm),

and (qq)

(qq), and (rr)

of this section, shall pay an additional annual fee of $100. The Commissioner shall deposit

said funds

the additional annual fees

into a special account designated as the “Overservice Investigation Fund.”

Said fund shall

The Overservice Investigation Fund must

be utilized by the Division

of Alcohol and Tobacco Enforcement

to pay overtime to its

agents and/or

agents,

to hire and equip additional

agents

agents, or both

for the purpose of investigating and prosecuting licensees that serve intoxicated individuals.

(uu) For a special event license issued under § 512H of this title, the biennial license fee is as follows:

(1) $1,000 for a license to hold 12 or fewer special events per calendar year.

(2) $ 2,000 for a license to hold more than 12 special events per calendar year.

Section 19. Amend § 708, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 708. Prohibition of sales to certain persons.

(a)

No

A

person or licensee

shall

may not

sell any alcoholic liquor to

any:

any of the following:

(1)

Individual

An individual

who has not reached the age of 21

years, except that in

years. In

any prosecution for an offense under this paragraph

(a)(1)

it

shall be

is

an affirmative defense that the individual, who has not reached the age of 21 years, presented to the accused identification, with a photograph of

such

the

individual affixed

thereon, which

on the identification, and the

identification sets forth information

which

that

would lead a reasonable person to believe

such

the

individual was 21 years of age or

older;

older.

(2)

Person

A person

to whom such sale is

prohibited;

prohibited.

(3)

Individual who habitually drinks alcoholic liquor to excess, or to whom the Commissioner and/or Division has, after investigation, decided to prohibit the sale of such liquor because of an appeal to the Commissioner and/or Division by the husband, wife, father, mother, brother, sister, employer or other person depending upon, employing or in charge of such individual, or by the mayor or other competent representative of any city, town, or other incorporated place; the interdiction in such case shall last until removed by the Commissioner and/or Division.

[Repealed.]

(b)

No

A

sale made to any person mentioned in this section, other than an individual who has not reached the age of 21 years,

shall

does not

constitute a misdemeanor unless the

Commissioner and/or Division

Commissioner, the Division, or both

has informed the seller, by registered letter, that it is forbidden to sell to such person or unless the fact is otherwise known to the seller.

Section 20. Amend § 712, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 712. Label on bottle.

No

(a) A

holder of a license

shall

may not

use or allow the use of any mark or label on a bottle, in which alcoholic liquor is kept for sale, that does not precisely and clearly indicate the nature of the contents of the

bottle,

bottle

or

which

that

might in any way deceive any consumer as to the nature,

composition

composition,

or quality of the contents.

(b) If a licensee prepares infused beverages or batched cocktails, the preparation and labeling of the infused beverages or batched cocktails must comply with the rules established by the Commissioner and each batched or infused cocktail container must be clearly labeled with every ingredient and the date the infused beverage or batched cocktail was made.

Section 21. Amend § 903, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and by redesignating accordingly:

§ 903. Offenses carrying penalty of fine of not more than $100 or imprisonment for 1 month on failure to pay fine.

Whoever:

(a) In addition to the payment of costs, whoever does any of the following is subject to a fine of not more than $100:

(1) Being the holder of a license, sells beer to which wine,

spirits

spirits,

or alcohol has been added;

or

sells wine to which spirits or alcohol has been added, other than an addition of spirits or alcohol to render possible transportation or to secure the customary fortifying thereof; or sells any alcoholic liquor to which has been added any adulterating or deleterious substances or

liquid; or

liquid.

(2) Being the holder of a license, sells any alcoholic liquor in any place,

or

in any manner, or in any quantity other than as authorized by the

license; or

license.

(3) Being the holder of a license to sell spirits,

wine

wine,

or beer in a dining room or bedroom, has not furnished, fitted, or equipped

such

the

dining room or bedroom in the manner or to the extent indicated by the

Commissioner and/or Division; or

the Commissioner, the Division, or both.

(4) Being the holder of a license to sell spirits,

wine

wine,

or beer, as the case may be, does not comply with any requirement or provision of

§§ 512-520 or 706

§ 512 through § 520 or § 706

of this

title; or

title.

(5) Being the holder of a license, sells any alcoholic liquor

which

that

the holder is authorized by the license to sell, at any time forbidden by § 709 of this

title; or

title.

(6) Being the holder of a license, knowingly sells to any of the persons mentioned in § 708 of this title after notice sent to such person by the Commission in compliance with the provisions of said section, any alcoholic liquor, the sale of which is authorized by the license; or

(7) Being the holder of a license to sell alcoholic liquor in a

package

store, allows any alcoholic liquor sold

therein

in the package store

to be

drunk

consumed

in

such

the package

store or its dependencies, either by the purchaser or by any other

person; or

person.

(8) Being the holder of a license to sell alcoholic liquor in the dining room of any hotel, restaurant,

club

club,

or steamboat, or in a dining car, does not keep the license constantly posted conspicuously in view of the public in

such

the

dining room or dining

car; or

car.

(9) Being the holder of a license, keeps or transports any alcoholic liquor in contravention of this

title; or

title.

(10) Having acquired

for the purpose of resale

any liquid or solid containing alcoholic

liquor,

liquor for the purpose of resale,

sells it as a medicine or preparation after having been notified by the

Commissioner and/or Division

the Commissioner, the Division, or both,

in accordance with § 725 of this

title; or

title.

(11) Not being the holder of a license, leads the public or

travellers

travelers

to believe, by means of signs, inscriptions, advertisements, or

circulars

circulars,

that

license holder

the person

is authorized to sell alcoholic

liquor; or

liquor.

(12) Buys or receives any alcoholic liquor from any person not authorized to sell

such

that

variety of alcoholic liquor or keeps such alcoholic liquor in the person’s

possession; or

possession.

(13) Obtains, even gratuitously,

during the time when the sale thereof is forbidden,

any alcoholic liquor from any holder of a license for the sale

thereof; or

of the alcoholic liquor during the time when the sale of the alcoholic liquor is forbidden.

(14) Causes any disturbance in any place or brings

thereinto

into the place

or drinks

therein

in the place

any alcoholic liquor prohibited

therein; or

in the place.

(15) Buys, for any remuneration whatsoever, any alcoholic liquors for another

person; or

person.

(16) Being the holder of a license to sell alcoholic liquor, fails to post in a conspicuous place a sign

which

that

clearly reads, “According to the Surgeon General, women should not drink alcoholic beverages during pregnancy because of the risk of birth

defects;” or

defects.”.

(17) Manufactures, distributes, sells, offers for sale, possesses, purchases, or uses a powdered alcoholic

beverage,

beverage.

shall, in addition to the payment of costs, be fined not more than $100, and,

on failure

(b) If a person fails

to pay such fine and costs,

shall be

imprisoned

the person is subject to imprisonment

for 30 days.

(c)

Justices of the

peace shall

Peace

have original jurisdiction to hear, try, and finally determine alleged violations of this section.

Section 22. Amend § 904, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 904. Offenses concerning certain persons [Effective until Aug. 15, 2026].

(m) Nothing in this section

shall prevent

prevents

the employment in a

package

store

by a retailer

of

anyone

a person

who has reached the age of 18 years, under

such

conditions

as

the Commission may by rule

prescribe; provided, however, that no such

prescribe, but the

minor

shall

may not

sell or serve alcoholic liquors.

§ 904. Offenses concerning certain persons [Effective Aug. 15, 2026; Effective until Aug. 15, 2030].

(m) Nothing in this section

shall prevent

prevents

the employment in a

package

store

by a retailer

of

anyone

a person

who has reached the age of 18 years, under

such

conditions

as

the Commission may by rule

prescribe; provided, however, that no such

prescribe, but the

minor

shall

may not

sell or serve alcoholic liquors.

§ 904. Offenses concerning certain persons [Effective Aug. 15, 2030].

(m) Nothing in this section

shall prevent

prevents

the employment in a

package

store

by a retailer

of

anyone

a

person

who has reached the age of 18 years, under

such

conditions

as

the Commission may by rule

prescribe; provided, however, that no such

prescribe, but the

minor

shall

may not

sell or serve alcoholic liquors.

Section 23.

This Acts take effect on the Act’s enactment into law and Section 10 and Section 12 of are to be implemented the earlier of the following:

(1) Six months from the date of the Act’s enactment into law.

(2)

Notice by the Alcoholic Beverage Control Commissioner published in the Register of Regulations that final regulations to implement

Section 10 and Section 12 of this Act have been adopted.

SYNOPSIS

This Act cleans up antiquated portions of The Liquor Control Act, under Title 4, by updating provisions that have been in the Code since the 1930s and making technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

This Act also creates two new license types: (1) a special event license and (2) a bottle club license for businesses offering creative arts experiences like painting, candle-making, and other arts and engagement activities.

In addition to technical changes, this Act makes all of the following changes to Title 4 of the Code:

Sections 2, 7, 8, 15, 11, and 22 changes “retailer” or “retail” to “package store” in § 512A, § 512C, § 524, and § 904.

Section 1 updates and modernizes definitions in § 101 by lowering the number of customers for concert hall licenses, clarifying that IRS-recognized 503(c)(3) or similar organizations may obtain gathering licenses, clarifying that an “importer” also means a wholesaler or distributor because the terms are used interchangeably throughout Title 4 and the Office of the Alcoholic Beverage Commissioner (“Office”) regulations, renaming a “retailer” as a “package store” and providing a clearer definition, and adding a new definition of “special event” for the special event license created by this Act.

Section 2 requires the Office, under § 304, to provide current licensing data on its public-facing website rather than submitting annual reports to the Governor and the General Assembly. The Office already provides the licensing data on its website in lieu of paper reports that become stale quickly. Section 2 also updates how the Office provides notice of a hearing to consider a license application and the protests to the license application by removing the requirement to post the notice on the entrance door of the proposed licensee’s establishment and requiring the Office to mail notice by first class mail instead of registered mail. These changes reflect modern practices.

Section 3 updates antiquated fiscal provisions in § 310 by requiring the Office to deposit receipts with the Office of the State Treasurer instead of the Division of Revenue and by requiring the Office to maintain receipt records and make the records available to the Division of Accounting instead of the Office of the State Treasurer.

Section 4 allows the Auditor of Accounts (“Auditor”) to audit the Office, under § 313, as often as the Auditor considers necessary instead of requiring the Auditor to conduct an annual audit of the Office.

Section 5 clarifies, under §501, that importers licensed as suppliers must deliver products directly to a licensed warehouse of a Delaware licensed importer because brokerage import firms licensed by the federal government as importers are also licensed as suppliers by the Office and act as agents of suppliers.

Section 6 cleans up sentence structure in § 508 to clarify manufacturer and distillery reporting requirements.

Section 9 removes the domestic sales cap on production for distilleries licensed under § 512E, because no other state has a similar production cap.

Section 10 creates a new § 512H that allows the Delaware Alcoholic Beverage Control Commissioner (“Commissioner”) to grant to a qualified applicant a special event license for festivals, arts, crafts fairs, and other similar open-air events. The special event license permits the service and sale of alcoholic liquors for consumption on the licensed premises at special events hosted on the licensed premises by the landowner or tenant (the landowner could contract with a promotional company. A qualified applicant may hold only 1 special event license. The licensed premises must meet certain requirements, including having controlled ingress and egress. Also, at each special event sufficient food must be available at all times when alcohol is sold. A licensee must submit each special event to the Commissioner for review and approval at least 30 days prior to the special event (caterers have 20 days to provide the same materials but the Office feels the 10 extra days are needed for larger events), and the appropriate political subdivision must have approved the special event. The Commissioner may suspend a special event license, deny future licenses, or impose a fine of up to $10,000 per violation if the special event license holder has made misrepresentations on its application materials or fails to comply with the requirements of § 512H.

Section 11 updates § 514 to allow an in-state manufacturer to donate alcoholic liquors to gathering license holders and require applicants for a biennial premises type gathering license to provide notice of application under § 524, unless the applicant has already been granted a biennial premises type gathering license and has no violations.

Section 12 expands § 515A to allow the Commissioner to grant a bottle club license to a business establishment where customers pay a fee to participate in a creative arts experience, including painting, pottery-making, candle-making, or other similar activities. Some of these types of businesses already tell customers that the customers may bring alcohol, like a bottle of wine, on the premises. The bottle club license allows a licensed business’s customers to bring alcohol onto the business’s premises for on-premises consumption by the customer if sufficient food is provided while alcohol is being consumed.

Section 13 updates § 516 by replacing “store” with “package store”, which eliminates off-premises licenses for restaurants and clubs because these establishments can now sell alcohol to-go. But the few existing licenses will be grandfathered, just like the taproom off-premises license that was eliminated in 1983.

Section 14 gives a property owner or governing body who receives a notice of application under § 524 the option to file protests with the Office by email and updates the Office’s mailing address.

Section 16 changes hearing requirements under § 541 so that the Office is not required to hold a hearing to consider a license application and the protests to the application, unless at least 5 persons who filed protests and who reside or own property located within 1 mile of the premises or in any incorporated areas located within 1 mile of the premises pre-register to testify at the hearing. Community members often will sign a filed protest, but then not show up to testify at the hearing. Yet the Office incurs hundreds of dollars in costs, including hiring a court reporter and publishing the hearing notice in 2 newspapers. This causes delay in approving an application and causes the State to incur costs for a hearing it did not need to hold because the application could have been granted on the paperwork. Requiring at least 5 persons to pre-register to testify should help small businesses open more quickly and still preserve a community’s opportunity to address concerns about an application at a hearing. The Office is sensitive to community concerns about license applications and believes that the communities should be able to voice their concerns at a hearing. But the Office also believes that having the option to cancel a hearing, if the persons who file a protest choose not to follow through with the protest, would alleviate unnecessary costs and delays in processing license applications. Section 16 also requires the Office to post the hearing notice on the State Public Meeting Calendar instead of publishing the hearing notice in a newspaper, because hearing notices are already mailed and emailed to individuals who have filed a protest with the Office.

Section 18 adds a new license fee under § 554 for the new special event license. Section 18 also adds holders of a beer garden license to the list of licensees required to pay an additional $100 biennial license fee to be deposited in the Overservice Investigation Fund used to implement, administer, and enforce the Delaware Responsible Alcohol Beverage Server Training Program. All other on-premises license types pay the fee and the omission of the beer garden licenses appears to be a statutory oversight.

Sections 19 and 21 remove an antiquated provision that permits spouses, brothers, sisters, other family members, and employers to appeal to the Commissioner to investigate, decide, and then prohibit the sale of alcohol to certain people.

Section 20 adds requirements for labeling batched cocktails and infused beverages prepared by licensees to § 712, so that customers know the ingredients used in the cocktails and beverages.

Section 23 delays implementation of Section 10 and Section 12 of this Act, so that the Office may prepare to implement the new special event license and the new bottle club license. This Act takes effect on the Act’s enactment into law and Section 10 and Section 12 of this Act are to be implemented the earlier of the following:

(1) Six months from the date of the Act’s enactment into law.

(2) Notice by the Alcoholic Beverage Control Commissioner published in the Register of Regulations that final regulations to implement Section 10 and Section 12 of this Act have been adopted.

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.

Author: Senator Cruce