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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):
1 Section 1. Amend § 101, Title 4 of the Delaware Code by making deletions as shown by strike through and
2 insertions as shown by underline as follows and by redesignating accordingly:
3 § 101. Definitions.
4 As used in this title, in addition to their usual meaning:
5 (9) “Cabaret” means an establishment where patrons are entertained by performers who dance, sing, play
6 instruments instruments, or perform other legal acts for entertainment, but not to include a dinner theater, and where
7 such entertainment may be performed during or after service or dinner, and where a minor, as defined in § 708 of this
8 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)
9 unless accompanied by a parent or by a legal guardian. “Cabaret” includes a dinner theater.
10 (14) “Concert hall” shall mean means an indoor facility used to host live entertainment that is owned, leased,
11 under easement, and/or operated by any person and that has capacity for at least 600 500 patrons for any single event.
12 In order for a facility to be licensed as a concert hall, the facility shall must, host a minimum of 250 200 live music
13 events in any biennial licensing period. A facility meeting this definition may license the entire building, including
14 patio, with the concert hall license.
15 (17) “Disorderly house” means house, or reputed house, of prostitution, ill-fame or assignation.
16 (22) “Gathering of persons” or “gathering” means a banquet, picnic, bazaar, fair fair, or similar private
17 gathering or similar public gathering where food or drink are sold, served or dispensed by that is all of the following:
18 a. Organized and hosted by an Internal Revenue Service-recognized § 501(c)(3) nonprofit organizations
19 organization or a similar organization serving the public good, such as churches, colleges and universities,
20 volunteer fire companies, political parties parties, or other similar nonprofit groups having a common civic, social,
21 educational educational, or religious purpose, purpose.
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22 b. Where food or drink are sold, served, or dispensed or where entrance tickets are sold or entrance fees
23 are required by those the nonprofit organizations. organization.
24 (25) “Importer” (25)a. “Importer”, “distributor”, or “wholesaler” means the person a person, whether the
25 person is a resident of this State or not, transporting alcoholic liquors, or ordering, authorizing authorizing, or arranging
26 the transportation or shipment of alcoholic liquors liquors, into this State, whether the person is a resident or citizen of
27 this State or not, said State, the person being permitted to sell said the alcoholic liquors only to those persons licensed
28 to resell alcoholic liquors; provided, however, that nothing liquors.
29 b. Nothing contained in this definition shall may be construed as prohibiting an importer from selling
30 such the alcoholic liquors to either an active owner of that business importer for that person’s owner’s use and not
31 for resale or to a full-time, bona fide employee of that business importer for that person’s employee’s use and not
32 for resale; and provided further, that nothing resale.
33 c. Nothing contained in this definition shall may be construed as prohibiting an importer from selling beer
34 in “half-barrel” or “quarter-barrel” “half-barrel”, “quarter barrel”, or “sixtel” containers to the holders of a
35 personal license. license to resell alcoholic liquors.
36 d. The Commissioner may enact such rules regulating the sale of alcoholic liquor to active owners and
37 employees of licensed importers as it the Commissioner deems necessary.
38 (36) “Package store” or “store” means an establishment whose principal business is the sale of alcoholic
39 liquors for consumption off the establishment’s premises. “Package store” or “store” does not include a grocery store,
40 convenience store, drug store, hotel, restaurant, club, delicatessen, tobacco retailer, or cigar store.
41 (40) “Restaurant” means any establishment which that is regularly used and kept open principally for the
42 purpose of serving complete meals to persons for consideration consideration, with at least 60% of the establishment’s
43 gross receipts resulting from the sale of food, and which has seating at tables for 12 or more persons at tables and
44 suitable kitchen facilities connected therewith to the establishment for cooking an assortment of foods for complete
45 meals under the charge of a chef or cook.
46 (41) “Retailer” means the person permitted to sell alcoholic liquors in a store in the State, not for consumption
47 on the premises.
48 (43) “Special event venue” means an establishment that holds public or private gatherings of more than 250
49 persons, including festival, convention, rally, art festival, music event, or other similar open-air event, where food or
50 drink are sold, served, or dispensed and which requires an entrance ticket or fee to attend.
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51 (46) “Supplier” means an out-of-state manufacturer licensed by the federal government, or an entity licensed
52 by the federal government as an importer, that acts as an agent of a manufacturer by facilitating sales between the
53 manufacturer and a Delaware licensed importer.
54 Section 2. Amend § 304, Title 4 of the Delaware Code by making deletions as shown by strike through and
55 insertions as shown by underline as follows:
56 § 304. Duties and powers of the Commissioner.
57 (a) The Commissioner, in accordance with the Delaware Administrative Procedures Act, shall: has the duty and
58 power to do all of the following:
59 (1)a. Adopt and promulgate rules and regulations not inconsistent with this title or of any other law of the this
60 State, and all such rules and regulations shall have the force and effect of law; provided, however, that no such law.
61 b. A rule or regulation shall may not extend, modify modify, or conflict with any law of this State or the
62 reasonable implications thereof; and provided further, however, that such of a law.
63 c. The rules and regulations, as established by the Commissioner, shall must focus primarily on public
64 safety and the best interests of the consumer and shall may not unduly restrict competition within the alcoholic
65 beverage industry; industry.
66 (2) Establish by rules and regulations an effective control of the business of manufacture, sale, dispensation,
67 distribution distribution, and importation of alcoholic liquors within and into the this State, including the time, place
68 place, and manner in which alcoholic liquors shall be are sold and dispensed, not inconsistent with this title or with any
69 other law of this State. However, such the rules and regulations, as regulations established by the Commissioner, shall
70 Commissioner may not control or regulate: regulate any of the following:
71 a. Recreational equipment located on the business premises of any business selling alcoholic beverages;
72 beverages.
73 b. Credit transactions between licensed wholesalers and licensed retailers, package stores, to the extent
74 permitted by federal law; law.
75 (3)a. Control the manufacture, possession, sale sale, and delivery of alcoholic liquors in accordance with this
76 title; and control the purchase, possession, transportation transportation, and sale of alcoholic liquors by those licensed
77 to manufacture or to sell; provided, however, that the sell.
78 b. The Commissioner’s power to control the sale of alcoholic liquors shall may not be exercised in such a
79 manner as to prevent any holder of a retail package store license for the sale of alcoholic liquors not for
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80 consumption on the premises where sold from giving a retail purchaser of a case or more of spirits and/or wine
81 spirits, wine, or both a discount not to exceed 10% of the total dollar sale; sale.
82 (4) Grant, refuse refuse, or cancel licenses required by this title for the manufacture or sale of alcoholic liquor,
83 or other licenses required by this title in regard thereto, and to transfer any license granted; granted.
84 (5)a. On petition signed by at least 10 individuals who are residents of the neighborhood, hear complaints in
85 regard to regarding the appointments of, or the conduct of business in, any establishment where alcoholic liquor is
86 licensed to be sold. Ten
87 b. The Commissioner’s office shall give 10 days’ notice of such hearings, a hearing by sending the notice,
88 together with a recital of the complaint, shall be sent by registered first-class mail by the Commissioner’s office to
89 the address of the holder of the license for the establishment and like notice shall be delivered at the establishment
90 by affixing the notice addressed to the holder of the license to the outside of an entrance door to the establishment.
91 The hearings shall
92 c. A hearing must be conducted by the Commissioner and shall must be public. The For the purpose of a
93 hearing, the Commissioner shall for the purpose of such hearings have has the power to issue subpoenas, compel
94 the attendance of witnesses, administer oaths, take testimony testimony, and compel the production of pertinent
95 books, payrolls, accounts, papers, records records, and documents. In case any
96 d. Whenever a person summoned to testify or to produce any such written or printed evidence shall
97 refuse, refuses, without reasonable cause, to be examined or to examined, answer a legal and pertinent question
98 question, or to produce any such written or printed evidence, the Commissioner conducting the hearing may
99 certify the fact of any such refusal to the Superior Court of the county in which such the hearing is held and the
100 court may proceed against the person so refusing as for a contempt and punish such the person in the same manner
101 as persons are punished for contempt of court; court.
102 (6) Determine and publish standards for the manner in which the a dining room or dining rooms of a hotel,
103 restaurant restaurant, or club shall must be equipped in order to be allowed to exercise the privilege of the sale of
104 alcoholic liquors therein; in the dining room; and examine the plans or premises proposed for use as a dining room and
105 authorize their use in connection with a license to sell alcoholic liquors, but such the Commissioner’s authorization
106 shall does not prevent the requirement by the Commissioner of from requiring future alterations in accordance with
107 published standards; standards.
108 (7)a. Compel the attendance of witnesses and the production of contracts, papers, books, accounts accounts,
109 and other documents.
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110 b. Subpoenas issued shall must be signed by the Commissioner and Commissioner. Subpoenas may be served
111 by any sheriff, deputy sheriff, constable constable, or any agent of the Division and return thereof made to the
112 Commissioner.
113 c. The Commissioner may enforce compliance with a subpoena issued pursuant to under this subsection by
114 filing a motion to compel in the Superior Court, which shall have Court that has jurisdiction over the matter. The court
115 may award costs and attorney fees if it the court determines that noncompliance with a Commissioner subpoena was
116 unjustified, intentional, or in bad faith.
117 (8) Act, for For purposes of this Title, title, act as the competent authority in connection with other matters
118 pertinent thereto; thereto.
119 (9) Make an annual report submitted to the Governor and members of the General Assembly Annually publish
120 license information on the Commissioner’s publicly available website setting forth all matters of interest and all
121 statistics concerning liquor regulation and control in the this State, including: including all of the following:
122 a. The number of licenses of each variety issued within the State; this State.
123 b. The name and address of each person licensed to manufacture or to sell alcohol, spirits, wine wine, and
124 beer; beer.
125 c. The amount of alcohol, spirits, wine wine, and beer sold within the State; this State.
126 d. The number of licenses of each kind granted and the number cancelled during the year; and year.
127 e. Such other Other data as may make that makes a complete report to the people of this State; State.
128 (10) Negotiate and, with the approval of the Governor, enter into reciprocal agreements with the duly
129 authorized officials of other states of the United States relative to the manufacture, importation, sale sale, and
130 transportation of alcoholic liquors in the several states; states.
131 (11) Provide such special seals, labels and wrappers as deemed necessary for protection of the public against
132 imitations, adulterations and frauds, and prescribe the proper use of the seals, labels and wrappers; and
133 (12) (11) Provide such warning signs as may be required by § 903(16) of this title and title, distribute such the
134 warning signs to license holders holders, and promulgate regulations with respect to the posting of said the warning
135 signs. A nominal fee may be charged by the Commissioner to cover printing, handling handling, and distribution costs.
136 (b) The Commissioner’s decision shall be final and is conclusive unless, within 30 days after the Commissioner’s
137 office mails notice thereof has been mailed by the Commissioner’s office, of the decision, a party to such the hearing files
138 an appeal in the office of the Commissioner. Upon receipt of the appeal, the Commissioner shall cause the Chairperson of
139 the Appeals Commission to be advised of the pending appeal and the appeal. The Chairperson shall cause the Appeals
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140 Commission to be convened convened, with at least 20 days days’ notice to all parties. The appeal shall must be heard by
141 the Appeals Commission, who shall, shall review, in accordance with the Administrative Procedures Act, Title 29 of the
142 Delaware Code, review Chapter 101 of Title 29, the matter on the record and affirm, reverse reverse, or modify the decision
143 of the Commissioner. Commissioner’s decision.
144 Section 3. Amend § 310, Title 4 of the Delaware Code by making deletions as shown by strike through and
145 insertions as shown by underline as follows:
146 § 310. Deposit of receipts with Division of Revenue. the Office of the State Treasurer.
147 All moneys received by the Commissioner shall must be paid to the Division of Revenue of the Department of
148 Finance. A monthly report of all receipts of the Commissioner shall be made to the State Treasurer. state bank accounts
149 custodied with the Office of the State Treasurer. The Commissioner shall maintain a record of all receipts and make records
150 available to the Department of Finance, Division of Accounting, upon request.
151 Section 4. Amend § 313, Title 4 of the Delaware Code by making deletions as shown by strike through and
152 insertions as shown by underline as follows:
153 § 313. Annual audit. Audit.
154 The operation of the office of the Commissioner shall annually must be examined and audited by the State Auditor
155 of Accounts. Accounts, as often as the Auditor of Accounts considers necessary.
156 Section 5. Amend § 501, Title 4 of the Delaware Code by making deletions as shown by strike through and
157 insertions as shown by underline as follows:
158 § 501. Supplier and representative licenses; importer; delivery and storage at in-state warehouse.
159 (a)(1) Before any a person sells any alcoholic liquor intended for importation into this State, such the person shall
160 procure do all of the following:
161 a. Obtain from the Commissioner a supplier’s license in the form to be prescribed by the Commissioner
162 and shall pay therefor Commissioner.
163 b. Pay a biennial license fee in the amount of $100 to be permitted to sell not more than 200 cases of
164 alcoholic liquors for importation into the this State during the calendar year or a biennial fee in the amount of
165 $1,000 to be permitted to sell more than 200 cases of alcoholic liquors for importation into this State during the
166 calendar year.
167 (2) This subsection shall does not apply to any of the following:
168 a. A person licensed under subsection (b) of this section or to any section.
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169 b. A person who either is licensed by the Commissioner and has a place of business in this State for the
170 manufacture or sale of alcoholic liquors or liquors.
171 c. A person who is an officer, director, or employee of a person, person who is licensed by the
172 Commissioner, having Commissioner and has a place of business in this State for the manufacture or sale of
173 alcoholic liquors.
174 (b)(1) Before any a person shall may do any business in this State in any manner whatsoever as a sales
175 representative of a person who sells any alcoholic liquors intended for importation into this State, such the person shall first
176 obtain do all of the following:
177 a. Obtain from the Commissioner a sales representative license in the form to be prescribed by the
178 Commissioner and shall pay Commissioner.
179 b. Pay a $50 biennial fee therefor in the amount of $50. license fee.
180 (2) Unless employed in any way by a person required to be licensed under subsection (a) of this section above,
181 section, this subsection shall does not apply to any person, who either is licensed of the following:
182 a. A person who is licensed by the Commissioner and shall not apply to any person, who either is licensed
183 by the Commissioner and has a place of business in this State for the manufacture or sale of alcoholic liquors or is
184 liquors.
185 b. A person who is an officer, director director, or employee of a person, person who is licensed by the
186 Commissioner, having Commissioner and has a place of business in this State for the manufacture or sale of
187 alcoholic liquors.
188 (c)(1) This section shall does not apply to a daily importation into the this State of a quantity of alcoholic liquor
189 which that does not exceed that the amount which of alcoholic liquor the United states States government permits to be
190 imported into the United States without payment of any duty thereon, provided such alcoholic liquor is imported by as
191 follows:
192 a. By a person permitted by the laws of this State to purchase and consume alcoholic liquor and that such
193 alcoholic liquor is imported solely liquor.
194 b. Solely for consumption by the person importing it or the person’s family or guests.
195 (2) If such importation is by motor vehicle, the alcoholic liquor shall must be transported in an area of the
196 motor vehicle not immediately accessible to the driver or to any passenger therein. passenger in the motor vehicle.
197 (d) Persons licensed by the Commissioner as suppliers pursuant to under this section shall be are authorized only
198 to sell, ship ship, or deliver alcoholic liquors to licensed Delaware importers or manufacturers, and persons licensed by the
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199 Commissioner as sales representatives pursuant to under this section shall be are authorized only to solicit orders, on behalf
200 of licensed Delaware importers or manufacturers, from persons licensed by the Commissioner to sell alcoholic liquors.
201 (e) The Commissioner may promulgate such rules and regulations as it the Commissioner deems necessary for the
202 enforcement or furtherance of the objectives of this section and it may section. The Commissioner may provide by such
203 rules or regulations that the applicant for a supplier’s license may pay a fee for each calendar year or pay the increased fee
204 during any calendar year without the filing of an additional application.
205 (f) No (f)(1) A person may not import into this State any alcoholic liquor into this State, unless it the alcoholic
206 liquor is delivered directly to a licensed warehouse or warehouses in Delaware this State owned, leased leased, or operated
207 by a licensed Delaware importer and is unloaded and physically stored in said warehouse or warehouses. the warehouse
208 (2) An importer licensed as a supplier by the Commissioner must deliver alcoholic liquors directly to a
209 licensed warehouse in this State owned, leased, or operated by a licensed Delaware importer and unload and physically
210 store the alcoholic liquors in the warehouse.
211 Section 6. Amend § 508, Title 4 of the Delaware Code by making deletions as shown by strike through and
212 insertions as shown by underline as follows:
213 § 508. Filing of price schedules required.
214 (a) All manufacturers and distilleries offering for sale in the State alcoholic liquors other than beer or wine, for
215 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
216 the State to sell such alcoholic liquors, a verified schedule, in writing, in the number of copies and on the form required by
217 the Commissioner, which Commissioner. A verified schedule shall must contain all of the following information as to each
218 item they the manufacturers and distilleries are offering for sale at that time, in the this State, by brand or trade name:
219 (1) The capacity of each package thereof so of an item offered for sale; sale.
220 (2) The nature of the contents thereof; of an item.
221 (3) The age and proof thereof of an item where stated on the container label; label.
222 (4) The number of bottles thereof of an item contained in a case of such items; the item.
223 (5) The individual bottle and case price to the Delaware wholesaler or importer, which prices in each such
224 instance shall be individual for each item and not in combination with any other item; and item.
225 (6) The discount given for quantity or time of payment, if any.
226 Any such (b) A verified schedule need not contain any such information as to any brand which that is owned
227 exclusively by a retailer package store and sold at retail in Delaware this State exclusively by such a retailer. the package
228 store.
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229 (b) Such (c) A schedule of prices or price of an individual item need not be filed at any time other than provided
230 for in subsection (a) of this section and need not be updated any time a manufacturer or distillery changes such prices
231 between such required filing times.
232 Section 7. Amend § 512A, Title 4 of the Delaware Code by making deletions as shown by strike through and
233 insertions as shown by underline as follows:
234 § 512A. Farm wineries.
235 (b) A farm winery licensee shall also be authorized to may store and sell wine, mead, and cider on the premises by
236 the bottle or by the glass for consumption on or off the premises where sold. A farm winery licensee shall be permitted to
237 may purchase and store product from a Delaware licensed importer or retailer package store, licensed under § 516 of this
238 title, and sell said the product to its retail customers for consumption on the premises where sold sold, so long as the
239 product is manufactured by an entity that holds a Delaware license pursuant to under § 512A, § 512B, § 512C §512C, or §
240 512E of this title or the manufacturer, as determined by the Commissioner, would qualify for a license under said 1 or more
241 of these sections if it the manufacturer were physically located in the this State.
242 (j) A farm winery licensee shall be prohibited from owning or operating may not own, operate, or being be
243 affiliated with any importer or retailer of alcoholic liquor either package store, within or without this State. Notwithstanding
244 the foregoing, it shall be permissible for But a farm winery to may apply to the Commissioner for a license, under §
245 512(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
246 for a license, under this title generally, for use of a portion of the farm winery premises as a restaurant.
247 Section 8. Amend § 512C, Title 4 of the Delaware Code by making deletions as shown by strike through and
248 insertions as shown by underline as follows:
249 § 512C. Microbreweries; license; alternating premises.
250 (c) Notwithstanding any provision of this title to the contrary, a microbrewery license allows the licensee to do all
251 of the following:
252 (5) To purchase and store product from a Delaware licensed importer or retailer package store licensed under
253 § 516 of this title, and sell the product to its retail customers for consumption on the premises where sold sold, so long
254 as the product is manufactured by an entity that holds a Delaware license under § 512A, § 512B, § 512C, or § 512E of
255 this title or the manufacturer, as determined by the Commissioner, would qualify for a license under 1 or more of these
256 sections if the manufacturer were physically located in the this State.
257 Section 9. Amend § 512E, Title 4 of the Delaware Code by making deletions as shown by strike through and
258 insertions as shown by underline as follows:
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259 § 512E. Craft distillery.
260 (c) Notwithstanding any provision of this title to the contrary, a craft distillery license shall allow the licensee:
261 allows the licensee to do all of the following:
262 (1) To manufacture Manufacture, on the licensed premises premises, and sell not more than 750,000 proof
263 gallons of distilled spirits in any a calendar year; year.
264 (2) To manufacture Manufacture spirits, on the licensed premises, for persons other than the licensee who are
265 licensed under this title or for persons outside this State; State.
266 (3) To sell, deliver Sell, deliver, and ship such spirits in labeled barrels, bottles bottles, or other closed
267 containers to persons licensed under the provisions of this title to import spirits; and to sell and ship spirits to persons
268 outside of the this State in accordance with this title; title.
269 (4) To store Store and sell spirits on the premises by the bottle or by the glass for consumption on or off the
270 premises where sold; and to purchase alcoholic beverages from licensed Delaware importers or retailers package stores
271 to add to product manufactured by the craft distillery to sell to patrons for on premises on-premises consumption only.
272 The amount of spirits sold for off-premises consumption shall must be limited to a maximum of 1 case (i.e., not more
273 than 12-750 ml (12 750-milliliter bottles) per day to each retail customer for consumption off the premises; premises.
274 (5) To purchase Purchase and store product from a Delaware licensed importer or retailer package store
275 licensed under § 516 of this title, and sell said the product to its retail customers for consumption on the premises
276 where sold sold, so long as the product is manufactured by an entity that holds a Delaware license pursuant to under §
277 512A, § 512B, § 512C § 512C, or § 512E of this title or the manufacturer, as determined by the Commissioner, would
278 qualify for a license under said 1 or more of these sections if it the manufacturer were physically located in the State;
279 and this State.
280 (6) To sell, Sell, on the licensed premises, food items, souvenirs, spirit-related supplies supplies, and
281 educational material as approved by the Commissioner.
282 (m) The provisions of § 506 of this title to the contrary notwithstanding, the holder of a craft distillery license
283 shall be permitted to may have an interest in, be affiliated with, or own another supplier or manufacturer, whether located
284 inside or outside the State, provided that the total domestic sales of all affiliated suppliers or manufacturers shall not exceed
285 750,000 proof gallons in any calendar year. this State.
286 Section 10. Amend Subchapter II, Chapter 5, Title 4 of the Delaware Code by making deletions as shown by strike
287 through and insertions as shown by underline as follows:
288 § 512H. Special event license.
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289 (a)(1) Subject to the provisions, restrictions, and prohibitions of this title, the Commissioner may grant a special
290 event license to a qualified applicant, upon the applicant paying the application process fee set forth in § 554 of this title
291 and submitting all documentation required by the Commissioner. Subject to rules and regulations established by the
292 Commissioner, a special event license permits a licensee to sell and serve alcoholic liquors on the licensed premises at each
293 special event the licensee hosts on the licensed premises for consumption on the licensed premises.
294 (2) A qualified applicant may not be granted more than 1 special event license.
295 (b)(1) The licensee may have an office outside this State, but the licensed premises where the special event will
296 take place and where alcoholic liquors will be sold, served, dispensed, or consumed must be located in this State.
297 (2) In addition to the requirements of paragraph (b)(1) of this section, the licensed premises must meet all of
298 the following requirements:
299 a. The licensed premises must be owned or leased by the licensee.
300 b. The licensed premises must not be more than 3 acres in size.
301 c. The licensed premises must be sufficiently designated, enclosed, secured, and maintained.
302 d. The licensed premises must contain fencing or a wall not less than 30 inches high that, at a minimum,
303 encloses the area where alcoholic beverages will be sold, served, dispensed, and consumed.
304 e. The licensed premises must be maintained in compliance with all applicable zoning, health, and fire
305 safety requirements.
306 (3) If a licensee fails to comply with paragraph (b)(2) of this section, the licensee’s special event license is
307 suspended, under § 561 of this title, until the licensee complies with paragraph (b)(2) of this section.
308 (c) At least 30 days before the date of a special event, a licensee must report the special event to the Commissioner
309 for the Commissioner’s review and approval. For each special event, all of the following conditions apply:
310 (1) Sufficient restrooms or enclosed portable toilets must be provided within the licensed premises during the
311 special event.
312 (2)a. Sufficient food must be available to consumers for consumption on the licensed premises during all
313 hours that the licensee is selling and serving alcoholic liquors. Items like bags of chips and pretzels are insufficient.
314 b. The food may be prepared on the licensed premises, provided by a food truck or a caterer, or consist of
315 prepackaged items, such as sandwiches, burgers, and hot dogs of sufficient quantity in relation to the alcoholic
316 liquors being sold and served.
317 (3) Tents, mobile units, and other temporary fixtures located on the licensed premises must be approved by
318 the appropriate political subdivision and reported to the Commissioner at least 20 days before the special event.
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319 (4) The appropriate political subdivision responsible for regulating the licensed premises must have provided
320 written approval for the special event.
321 (d) A licensee must purchase all alcoholic liquors sold and served at a special event from importers licensed under
322 § 501 of this title. Notwithstanding any provision of this title to the contrary, an importer may buy back any unopened and
323 resalable bottles of alcoholic liquors at the end of a special event. An importer shall keep all records, as required by the
324 Commissioner, necessary to document the purchase of products under this subsection.
325 (e)(1) Notwithstanding any provisions of this title to the contrary, whenever the Commissioner finds that a licensee
326 fails to meet any of the requirements of this section or that the licensee misrepresented information in its application, the
327 Commissioner may do 1 or more of the following:
328 a. Suspend the licensee’s special event license.
329 b. Deny any future applications for a special event license for a period of up to 2 years after the
330 Commissioner finds that a failure or misrepresentation has occurred.
331 c. Impose a fine of up to $10,000 per violation.
332 (2) Before any new special event license may be issued, all penalties imposed by the Commissioner under this
333 subsection must be resolved.
334 (f) Licensees are subject to the restrictions on the hours of sale of alcoholic liquors set forth in § 709(c) of this title,
335 to the prohibitions of overservice, and the prohibition of sales to minors set forth in § 708 of this title.
336 (g) A licensee is permitted to enter into a concessionaire agreement, but a concessionaire agreement may not
337 permit the sharing of proceeds from alcohol sales.
338 Section 11. Amend § 514, Title 4 of the Delaware Code by making deletions as shown by strike through and
339 insertions as shown by underline as follows:
340 § 514. Gathering licenses; consumption on premises.
341 (a) If alcoholic liquors are to be sold during a gathering of persons, the manager or person in charge of such the
342 gathering, gathering of persons, or the owner, tenant tenant, or person in charge of the premises in which the gathering of
343 persons is being held, must obtain 1 of the types of gathering licenses provided for in this section. Either of said Both types
344 of gathering licenses shall permit consumption of alcohol alcoholic liquors on the premises where sold and shall permit sale
345 of alcohol alcoholic liquors for consumption off the premises where sold by way of a raffle or auction, live or silent, so long
346 as the amount of alcohol alcoholic liquors sold for consumption off of the premises where sold does not exceed 10 gallons
347 (or 38 liters) in a single day.
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348 (b) There shall be The 2 types of gathering licenses which that may be granted hereunder: under this section are as
349 follows:
350 (1) Gathering License — Group. — The manager or person in charge of a gathering of persons at which
351 alcoholic liquors are to be sold shall apply for a group type gathering license, which license, license that, if granted,
352 shall be is valid only for the time, and time and at the location, location specified in the application therefor. license
353 application. A group gathering license shall is not be required if the said gathering of persons is being held on premises
354 which that are validly licensed under a biennial premises gathering license issued pursuant to under paragraph (2) of
355 this subsection.
356 (2) Gathering License — Biennial Premises. — The owner, tenant tenant, or person in charge of the premises,
357 other than a residence, on which gatherings of persons are held, may apply for a biennial premises type gathering
358 license, which license shall be license that is valid for the entire 2 years for gatherings of persons at the location
359 specified in the application therefor. license application.
360 (c) A holder of a gathering license may purchase alcoholic liquors for sale at a gathering of persons from either
361 retailers package stores, or importers and such retailers the package stores, and importers shall be permitted to may make
362 deliveries to persons holding a gathering licenses. license. A holder of a gathering license granted pursuant to under this
363 section shall be is exempt from paying the application process fee as provided in subsection (x) of § 554 § 554(x) of this
364 title.
365 (d) For purposes of this section only, the price paid for alcoholic liquors to be sold at a gathering of persons
366 licensed under this section shall must be a price agreed upon between the said licensee and the retailer package store, in-
367 state manufacturer, or importer from whom said the alcoholic liquors are purchased. It is permissible for a retailer A
368 package store, in-state manufacturer, or importer to may donate some or all of the alcoholic liquor to the gathering licensee
369 so long as a license has been granted for the gathering of persons by the Commissioner prior to the donation.
370 (e) Any person holding a biennial premises gathering license granted hereunder under this section must report each
371 gathering of persons to be held in on its facilities premises to the Commissioner, which Commissioner. The report may be
372 made in person, in writing, or by telephone and the telephone. The report must be received by the Commissioner not later
373 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
374 is to be held on a day on which the Commissioner shall be Commissioner’s office is closed, in which case it the gathering
375 of persons must be so reported on the last day on which the Commissioner is open immediately preceding such gathering.
376 the gathering of persons.
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377 (f) Any A person holding a gathering license of either type granted hereunder under this section who has
378 purchased alcoholic liquors for sale at a gathering of persons may return any unopened bottles so purchased to the licensee
379 from whom they were purchased and shall receive therefor the amount paid for each said bottle, so long as such return is
380 made the bottles are returned within 30 days of the date of the gathering of persons for which they the bottles were
381 purchased. A biennial premises type gathering licensee shall is not be required to return bottles it has purchased for sale
382 during such gathering, the gathering of persons, but may store them the bottles in a suitable storage facility for sale at a
383 future gathering of persons to be held within its facilities. on the licensee’s premises.
384 (g) All holders of gathering licenses hereunder shall be under this section are subject to the restrictions on the
385 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 §
386 708 of this title.
387 (h) It shall is not be necessary to obtain a license to dispense alcoholic liquors at a gathering of persons if no
388 alcoholic liquors are to be sold at that gathering of persons. Importers may sell and deliver beer directly to persons for
389 dispensing at a gathering of persons and not for resale.
390 (i) An applicant for a biennial premises type gathering license, as defined in § 554 of this title, must give notice of
391 the application as required by § 524 of this title, but an applicant who has previously been granted a license under this
392 section and has no violations is not required to give notice.
393 Section 12. Amend § 515A, Title 4 of the Delaware Code by making deletions as shown by strike through and
394 insertions as shown by underline as follows:
395 § 515A. Licenses for bottle clubs.
396 (c) The Commissioner may only grant a bottle club license only to the following:
397 (1) A person doing business in an establishment meeting the standards of a restaurant. The license permits the
398 establishment to operate as a bottle club on every day of the week and on holidays, except between the hours of 2:00
399 a.m. and 9:00 a.m. during which time alcoholic liquors may not be consumed on the premises of the establishment.
400 (2) A person renting premises to customers for holding weddings or other social gatherings where there is
401 adequate food, as determined by the Commissioner, provided by the customer or a caterer. The license permits the
402 establishment to operate as a bottle club on every day of the week and on holidays, except between the hours of 2:00
403 a.m. and 9:00 a.m. during which time alcoholic liquors may not be consumed on the premises of the establishment. If a
404 bottle club licensed under this paragraph (c)(2) has a function that utilizes an a licensed off-site caterer, all alcohol
405 must be provided by the licensed off-site caterer.
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406 (3) A person doing business in a licensed establishment where persons pay a fee to participate in a creative
407 arts experience, including painting, pottery-making, candle-making, and other similar activities, and where sufficient
408 food is provided by the establishment’s owner or by the customer while alcoholic liquors are being consumed.
409 Prepackaged chips, pretzels, and other similar food items are not sufficient food. The license permits the establishment
410 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
411 a.m., during which time alcoholic liquors may not be consumed on the premises of the establishment.
412 Section 13. Amend § 516, Title 4 of the Delaware Code by making deletions as shown by strike through and
413 insertions as shown by underline as follows:
414 § 516. Consumption off the premises of a package store, hotel, restaurant, club, store or taproom.
415 (a) (1)a. Any person in charge of a hotel, restaurant, club or package store (other than a grocery, delicatessen or
416 cigar store), whether owner, lessee lessee, or manager, and recognized as such by the Commissioner, may apply to the
417 Commissioner for a license to purchase from an importer and to keep and sell and deliver on the premises only spirits, wine
418 wine, or beer by the bottle, half bottle, keg, half keg, quarter keg, or sixtel, but not for consumption on the premises where
419 sold, or in any dependency thereof.
420 b. All vessels so sold shall must be delivered to the purchaser and shall must be removed from the
421 premises where sold with the seals of such the vessels unbroken, with the exception of those licenses that are
422 unless a license is approved by the Commissioner for a growler filler permit which permit. A growler filler permit
423 allows a licensee to purchase beer by the keg or partial keg and fill containers at time of purchase which will then
424 be capped to leave the licensed premises for consumption off of the premises.
425 c. For purposes of issuing a new license under this section, all establishments licensed for the sale of
426 alcoholic liquors, but not for consumption on the premises where sold, shall be are considered as being of the same
427 type; provided, however, type. But this shall paragraph (a)(1)c. does not apply to the transfer of ownership or the
428 renewal of an existing license.
429 (2) Any A person in charge of a store (other than a grocery, delicatessen or cigar store), package store,
430 whether owner, lessee, or manager, and recognized as such by the Commissioner with a valid license for consumption
431 off premises issued pursuant to under this section may sell spirits, wine wine, or beer pursuant to under paragraph
432 (a)(1) of this section section, including sales for curbside service. Any An entity with a valid off premise off-premises
433 license pursuant to §§ issued under § 512A through § 512E of this title may sell alcoholic liquor pursuant to its license
434 for curbside service. service under the entity’s off-premises license. All sales for curbside service must do all of the
435 following:
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436 a. Comply with Chapter 7 of this title title, including § 706 of this title, which prohibits sales to
437 intoxicated individuals, and § 708 of this title, which prohibits sales to individuals who have not reached the age of
438 21 years.
439 b. Be completed and delivered by a person certified as a responsible alcoholic beverage server pursuant to
440 under § 1205 of this title.
441 (b) Notwithstanding the provisions of subsection (a) of this section, any person, firm firm, or corporation duly
442 licensed by the government of the United States as a ships ship’s chandler, may apply to the Commissioner for a license to
443 purchase and to keep, sell sell, and deliver off the premises, spirits, wine wine, or beer. The Commissioner may issue said
444 the license if it the Commissioner is satisfied that: (1) that all of the following conditions are met:
445 (1) The applicant is a ships ship’s chandler operating a customs bonded warehouse under a license issued by
446 the United States government, and (2) sales government.
447 (2) Sales by ships a ship’s chandler are limited to vessels of the United States or of a foreign country engaged
448 in foreign trade pursuant to § 1309 of Title 19 of the United States Code. under 19 U.S.C. § 1309.
449 (c) No A person in charge of a taproom, restaurant, or club, whether as owner, lessee, manager manager, or
450 otherwise, may not apply for a license to sell alcoholic liquors for consumption off the premises where sold, and the
451 Commissioner shall may not issue such a license for use in a taproom. Provided, however, that any taproom, restaurant, or
452 club, except as follows:
453 (1) A person issued a license which that authorizes the person to sell alcoholic liquors in a taproom for
454 consumption off the premises prior to July 6, 1983, shall be permitted to may retain said the license, unless revoked by
455 the Commissioner pursuant to under this title; and provided further, that any title.
456 (2) A person issued a license that authorizes the person to sell alcoholic liquors in a restaurant or club for
457 consumption off the premises before [the effective date of this Act] may retain the licenses, unless revoked by the
458 Commissioner under this title.
459 (3) A person issued a license which that authorizes the person to sell alcoholic liquors in a taproom for
460 consumption off the premises prior to July 6, 1983, shall be permitted to and person issued a license that authorizes the
461 person to sell alcoholic liquors in a restaurant or club for consumption off-the-premises before [the effective date of
462 this Act] may transfer said the license with the approval of the Commissioner as provided in § 571 of this title.
463 Section 14. Amend § 524, Title 4 of the Delaware Code by making deletions as shown by strike through and
464 insertions as shown by underline as follows:
465 § 524. Notice of application.
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466 (d) The notices referred to in subsections (b) and (c) of this section shall must provide such information as
467 determined by the Commissioner either through duly adopted rules or on a case by case case-by-case basis. The following
468 notice will, notice, in addition to the aforesaid Commissioner approved Commissioner-approved notice, satisfy satisfies this
469 notice provision:
470 “[Name of applicant] has on [Date of application] applied with the Alcoholic Beverage Control Commissioner
471 (“Commissioner”) for [Nature of application] [type of license] for a premises located at [Location of the premises,
472 including street and city]. [Applicant may include additional information about the application]. Persons who are
473 against this application should provide written notice of their objections (“protest”) to the Commissioner. For the
474 Commissioner to be required to hold a hearing to consider additional input from persons against the application, the
475 Commissioner must receive one 1 or more documents containing a total of at least 10 signatures of residents or
476 property owners located within 1 mile of the premises or in any incorporated areas located within 1 mile of the
477 premises. The protest(s) must be filed with the Alcoholic Beverage Control Commissioner at the 3rd Floor, Carvel
478 State Office Building, 820 North French Street, Wilmington, DE 19801. premises and at least 5 residents or property
479 owners who filed a protest and who reside or own property within 1 mile of the premises where the license is to operate
480 or in any incorporated areas located within 1 mile of the premises where the license is to operate must pre-register to
481 provide testimony at the hearing. The protest(s) must be received by the Commissioner’s office on or before [state a
482 date at least 30 days after the application is filed]. The protest(s) can be emailed to the email address provided on the
483 Commissioner’s website or delivered or mailed to the Office of the Alcohol Beverage Control Commissioner, Carvel
484 State Office Building, 820 North French Street, Wilmington, DE 19801. Failure to file such a protest may result in the
485 Commissioner considering the application without further notice, input or hearing. If you have questions regarding this
486 matter please contact the Commissioner’s Office.” Office by emailing the email address provided on the
487 Commissioner’s website.”
488 Section 15. Amend § 525, Title 4 of the Delaware Code by making deletions as shown by strike through and
489 insertions as shown by underline as follows:
490 § 525. Spirits, wine wine, and beer tasting.
491 A license to permit spirits, wine wine, and beer tasting may be granted by the Commissioner to any person holding
492 a license under this title as a retailer. as a package store under § 516 of this title. Spirits, wine wine, and beer tasting may
493 take place only in a separate portion of a licensee’s premises where alcoholic beverages are not sold. The separate portion
494 of the premises shall must be an area designated for spirits, wine wine, and beer tasting by the Commissioner. No charge
495 There may not be a charge made for the spirits, wine wine, and beer tasting.
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496 Section 16. Amend § 541, Title 4 of the Delaware Code by making deletions as shown by strike through and
497 insertions as shown by underline as follows:
498 § 541. Procedural requirements governing Commissioner’s action; hearing; appeal.
499 (b) If 10 (b)(1) A hearing must be held to consider the application and protest and, specifically, the concerns of the
500 members of the community within which the license is to operate if all of the following conditions are met:
501 a. Ten or more persons who reside or own property within 1 mile of the premises where the license is to
502 operate or in any incorporated areas located within 1 mile of the premises where the license is to operate file a
503 protest against the issuance of the license with the Commissioner within 30 days from the filing of the application,
504 then a hearing must be held to consider the application and protest and, specifically, the concerns of the members
505 of the community within which the license is to operate. application.
506 b. Five or more of the persons who filed a protest under paragraph (b)(1)a. of this section and who reside
507 or own property within 1 mile of the premises where the license is to operate or in any incorporated areas located
508 within 1 mile of the premises where the license is to operate pre-register to provide testimony.
509 (2) The Commissioner may hold a hearing in the absence of a protest.
510 (3) The Commissioner shall cause notice of the time and location of the hearing to be published in 2
511 consecutive issues of the same newspapers within which the applicant published notice of the applicant’s application
512 for the license. posted on the State Public Meeting Calendar. The Commissioner shall send notice of the time and
513 location of the hearing to the applicant and to each of the persons who signed the protest and provided a legible name
514 and address; provided, however, that it address. It is sufficient for the Commissioner to send notice to the attorney of a
515 person who is represented by legal counsel.
516 (4) The Commissioner shall conduct the hearing and shall make and keep a record of the hearing. The record
517 must include the evidence, the Commissioner’s findings of fact, the Commissioner’s decision decision, and a brief
518 statement of the reasons therefor. The Commissioner’s decision must show the manner in which the Commissioner
519 construed the law and applied it to the facts, must recite any objections presented by the community, and must show
520 how and the extent to which the Commissioner took community concerns into account and gave them due
521 consideration when making the decision.
522 (c) The Commissioner’s decision must be in writing and shall be final and is conclusive unless, within 30 days
523 from the date of the postmark on the Commissioner’s decision, a party to the hearing files a written appeal in the office of
524 the Commissioner. Upon receipt of the appeal, the Commissioner shall cause the Chairperson of the Appeals Commission
525 to be advised of the pending appeal and the appeal. The Chairperson shall cause the Appeals Commission to be convened
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526 with at least 20 days’ notice to all parties. The Appeals Commission’s review of an appeal from the Commissioner’s final
527 decision shall must be on the record and in accordance with the Administrative Procedures Act, subchapter III of Chapter
528 101 of Title 29. A decision of the Commissioner shall may be reversed only upon a finding of abuse of discretion.
529 (d) A party who is aggrieved by a final decision of the Appeals Commission may file a written appeal with the
530 Superior Court within 30 days of the date that the Appeals Commission’s decision was mailed. The Superior Court’s
531 review of an appeal shall must be on the record and in accordance with the Administrative Procedures Act, subchapter V of
532 Chapter 101 of Title 29. The Superior Court’s review shall must take into account the experience and specialized
533 competence of the agency and the purpose under which the agency acted. Further, the Superior Court’s review, in In the
534 absence of fraud, shall be the Superior Court’s review is limited to whether the agency’s decision is supported by
535 substantial evidence on the record and is free from legal error.
536 Section 17. Amend § 546, Title 4 of the Delaware Code by making deletions as shown by strike through and
537 insertions as shown by underline as follows:
538 § 546. Limit on number of retail package store licenses.
539 (a)(1) The General Assembly finds that, in order for the Delaware Alcoholic Beverage Control Commissioner to
540 maintain effective control of the importation, distribution distribution, and sale of alcoholic liquor into and within this State,
541 and in order to prevent geographical price fixing of alcoholic liquor at the retail level, there shall must be a limitation
542 placed on the number of retail package store licenses issued, held, controlled controlled, or acquired directly or indirectly
543 by 1 person.
544 (2) The General Assembly further finds that a limitation on the number of retail package store licenses held by
545 1 person is necessary to ensure a stable system for the lawful distribution of alcoholic liquor, serve the public need and
546 convenience convenience, and prevent the public harm associated with a monopoly of the retail package store alcoholic
547 liquor trade by any person or group of persons, whether such the package store licenses are held by a corporation,
548 partnership, association, proprietorship, individual individual, or other entity.
549 (3) The General Assembly further finds that a reasonable restriction on the number of retail package store
550 licenses held by 1 person will further the State’s interest in maintaining a 3-tier system for the importation, distribution
551 distribution, and sale of alcoholic liquor by minimizing or limiting absentee ownership and the domination of retail
552 establishments package stores by suppliers, manufacturers, importers importers, or other economically powerful
553 interests.
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554 (4) Therefore, it is declared to be the public policy of this State that limitations, as hereinafter specified,
555 specified under this section, be placed on the number of retail package store licenses that any a person may at 1 time
556 hold, directly or indirectly, and that the Commissioner shall actively supervise and enforce these limitations.
557 (b)(1) The Commissioner shall refuse to grant a license for the sale of alcoholic liquor by any restaurant, taproom,
558 hotel, store package store, or other establishment for consumption off the premises where sold if the Commissioner has
559 substantial evidence that would reasonably support a belief that the applicant, or applicant; any of the applicant’s directors,
560 officers officers, or shareholders, shareholders; or any of the applicant’s partners, corporations, proprietorships
561 proprietorships, or other legal entities engaged in any undertaking, industry industry, or business is singularly, or in
562 combination with the applicant, the holder of 2 or more retail package store licenses, or has any financial, pecuniary,
563 beneficial, management, supervisory supervisory, or other interest whatsoever, direct or indirect, and however small, in 2 or
564 more retail licenses; provided, however, that nothing herein shall require package store licenses.
565 (2) Nothing in this section requires any person who, prior to April 1, 1992, acquired an interest in more than 2
566 retail package store licenses to surrender, dispose of, or release their the person’s interest in any such license; nor shall
567 anything herein affect such license and nothing in this section affects the person’s right to continue to hold, use use,
568 and renew any such license.
569 (c)(1) For the purposes of this section, a person shall be is deemed to acquire a financial, pecuniary, beneficial,
570 management, supervisory supervisory, or other interest in a retail package store license to purchase and re-sell resell or
571 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
572 the following:
573 a. Any interest whatsoever, direct or indirect, and however small, as a director, officer, shareholder,
574 partner, associate, employee employee, or member in any corporation, partnership, association, proprietorship
575 proprietorship, or other entity engaged in any undertaking, industry industry, or business which that holds a retail
576 package store license pursuant to under this chapter, or (ii) any chapter.
577 b. Any authority whatsoever to supervise, manage, control control, or direct the operation of the
578 licensee’s business, or business; to hire, terminate terminate, or discipline its employees, the licensee’s employees;
579 or to issue any orders, policies policies, or directives concerning its business; provided, however, that any the
580 licensee’s business.
581 (2) For the purposes of this section, any person whose relationship with the licensee is, as determined by the
582 Commissioner, merely that of a bona fide lender, lending institution, secured party party, or lienholder, or merely that
583 of a bona fide landlord or lessor of real or personal property, shall not, for the purposes of this section, be is not
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584 deemed to acquire a financial, pecuniary, beneficial, management, supervisory supervisory, or other interest in such the
585 package store license.
586 (d) The Commissioner may promulgate such rules and regulations with respect to the enforcement and furtherance
587 of the objectives and provisions of this section as it the Commissioner may deem necessary, and all such necessary. All
588 rules and regulations that are not inconsistent with provisions of this title and the Delaware Code shall have the force and
589 effect of law.
590 Section 18. Amend § 554, Title 4 of the Delaware Code by making deletions as shown by strike through and
591 insertions as shown by underline as follows:
592 § 554. License fees [Effective until Aug. 15, 2026].
593 (kk) Each of the licensees identified in subsections (a)-(h), (t)-(w), (a) through (h), (t) through (w), (y), (z), (bb),
594 (cc), (dd), (ff), (gg), (hh), (ii), (mm), and (qq) (qq), and (rr) of this section, shall pay an additional annual fee of $100. The
595 Commissioner shall deposit said funds the additional annual fees into a special account designated as the “Overservice
596 Investigation Fund.” Said fund shall The Overservice Investigation Fund must be utilized by the Division of Alcohol and
597 Tobacco Enforcement to pay overtime to its agents and/or agents, to hire and equip additional agents agents, or both for the
598 purpose of investigating and prosecuting licensees that serve intoxicated individuals.
599 (uu) For a special event license issued under § 512H of this title, the biennial license fee is as follows:
600 (1) $1,000 for a license to hold 12 or fewer special events per calendar year.
601 (2) $ 2,000 for a license to hold more than 12 special events per calendar year.
602 § 554. License fees [Effective Aug. 15, 2026; Effective until Aug. 15, 2030].
603 (kk) Each of the licensees identified in subsections (a)-(h), (t)-(w), (a) through (h), (t) through (w), (y), (z), (bb),
604 (cc), (dd), (ff), (gg), (hh), (ii), (mm), and (qq) (qq), and (rr) of this section, shall pay an additional annual fee of $100. The
605 Commissioner shall deposit said funds the additional annual fees into a special account designated as the “Overservice
606 Investigation Fund.” Said fund shall The Overservice Investigation Fund must be utilized by the Division of Alcohol and
607 Tobacco Enforcement to pay overtime to its agents and/or agents, to hire and equip additional agents agents, or both for the
608 purpose of investigating and prosecuting licensees that serve intoxicated individuals.
609 (uu) For a special event license issued under § 512H of this title, the biennial license fee is as follows:
610 (1) $1,000 for a license to hold 12 or fewer special events per calendar year.
611 (2) $ 2,000 for a license to hold more than 12 special events per calendar year.
612 § 554. License fees [Effective Aug. 15, 2030].
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613 (kk) Each of the licensees identified in subsections (a)-(h), (t)-(w), (a) through (h), (t) through (w), (y), (z), (bb),
614 (cc), (dd), (ff), (gg), (hh), (ii), (mm), and (qq) (qq), and (rr) of this section, shall pay an additional annual fee of $100. The
615 Commissioner shall deposit said funds the additional annual fees into a special account designated as the “Overservice
616 Investigation Fund.” Said fund shall The Overservice Investigation Fund must be utilized by the Division of Alcohol and
617 Tobacco Enforcement to pay overtime to its agents and/or agents, to hire and equip additional agents agents, or both for the
618 purpose of investigating and prosecuting licensees that serve intoxicated individuals.
619 (uu) For a special event license issued under § 512H of this title, the biennial license fee is as follows:
620 (1) $1,000 for a license to hold 12 or fewer special events per calendar year.
621 (2) $ 2,000 for a license to hold more than 12 special events per calendar year.
622 Section 19. Amend § 708, Title 4 of the Delaware Code by making deletions as shown by strike through and
623 insertions as shown by underline as follows:
624 § 708. Prohibition of sales to certain persons.
625 (a) No A person or licensee shall may not sell any alcoholic liquor to any: any of the following:
626 (1) Individual An individual who has not reached the age of 21 years, except that in years. In any prosecution
627 for an offense under this paragraph (a)(1) it shall be is an affirmative defense that the individual, who has not reached
628 the age of 21 years, presented to the accused identification, with a photograph of such the individual affixed thereon,
629 which on the identification, and the identification sets forth information which that would lead a reasonable person to
630 believe such the individual was 21 years of age or older; older.
631 (2) Person A person to whom such sale is prohibited; prohibited.
632 (3) Individual who habitually drinks alcoholic liquor to excess, or to whom the Commissioner and/or Division
633 has, after investigation, decided to prohibit the sale of such liquor because of an appeal to the Commissioner and/or
634 Division by the husband, wife, father, mother, brother, sister, employer or other person depending upon, employing or
635 in charge of such individual, or by the mayor or other competent representative of any city, town, or other incorporated
636 place; the interdiction in such case shall last until removed by the Commissioner and/or Division. [Repealed.]
637 (b) No A sale made to any person mentioned in this section, other than an individual who has not reached the age
638 of 21 years, shall does not constitute a misdemeanor unless the Commissioner and/or Division Commissioner, the Division,
639 or both has informed the seller, by registered letter, that it is forbidden to sell to such person or unless the fact is otherwise
640 known to the seller.
641 Section 20. Amend § 712, Title 4 of the Delaware Code by making deletions as shown by strike through and
642 insertions as shown by underline as follows:
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643 § 712. Label on bottle.
644 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
645 liquor is kept for sale, that does not precisely and clearly indicate the nature of the contents of the bottle, bottle or which
646 that might in any way deceive any consumer as to the nature, composition composition, or quality of the contents.
647 (b) If a licensee prepares infused beverages or batched cocktails, the preparation and labeling of the infused
648 beverages or batched cocktails must comply with the rules established by the Commissioner and each batched or infused
649 cocktail container must be clearly labeled with every ingredient and the date the infused beverage or batched cocktail was
650 made.
651 Section 21. Amend § 903, Title 4 of the Delaware Code by making deletions as shown by strike through and
652 insertions as shown by underline as follows and by redesignating accordingly:
653 § 903. Offenses carrying penalty of fine of not more than $100 or imprisonment for 1 month on failure to pay fine.
654 Whoever: (a) In addition to the payment of costs, whoever does any of the following is subject to a fine of not
655 more than $100:
656 (1) Being the holder of a license, sells beer to which wine, spirits spirits, or alcohol has been added; or sells
657 wine to which spirits or alcohol has been added, other than an addition of spirits or alcohol to render possible
658 transportation or to secure the customary fortifying thereof; or sells any alcoholic liquor to which has been added any
659 adulterating or deleterious substances or liquid; or liquid.
660 (2) Being the holder of a license, sells any alcoholic liquor in any place, or in any manner, or in any quantity
661 other than as authorized by the license; or license.
662 (3) Being the holder of a license to sell spirits, wine wine, or beer in a dining room or bedroom, has not
663 furnished, fitted, or equipped such the dining room or bedroom in the manner or to the extent indicated by the
664 Commissioner and/or Division; or the Commissioner, the Division, or both.
665 (4) Being the holder of a license to sell spirits, wine wine, or beer, as the case may be, does not comply with
666 any requirement or provision of §§ 512-520 or 706 § 512 through § 520 or § 706 of this title; or title.
667 (5) Being the holder of a license, sells any alcoholic liquor which that the holder is authorized by the license
668 to sell, at any time forbidden by § 709 of this title; or title.
669 (6) Being the holder of a license, knowingly sells to any of the persons mentioned in § 708 of this title after
670 notice sent to such person by the Commission in compliance with the provisions of said section, any alcoholic liquor,
671 the sale of which is authorized by the license; or
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672 (7) Being the holder of a license to sell alcoholic liquor in a package store, allows any alcoholic liquor sold
673 therein in the package store to be drunk consumed in such the package store or its dependencies, either by the
674 purchaser or by any other person; or person.
675 (8) Being the holder of a license to sell alcoholic liquor in the dining room of any hotel, restaurant, club club,
676 or steamboat, or in a dining car, does not keep the license constantly posted conspicuously in view of the public in such
677 the dining room or dining car; or car.
678 (9) Being the holder of a license, keeps or transports any alcoholic liquor in contravention of this title; or title.
679 (10) Having acquired for the purpose of resale any liquid or solid containing alcoholic liquor, liquor for the
680 purpose of resale, sells it as a medicine or preparation after having been notified by the Commissioner and/or Division
681 the Commissioner, the Division, or both, in accordance with § 725 of this title; or title.
682 (11) Not being the holder of a license, leads the public or travellers travelers to believe, by means of signs,
683 inscriptions, advertisements, or circulars circulars, that license holder the person is authorized to sell alcoholic liquor;
684 or liquor.
685 (12) Buys or receives any alcoholic liquor from any person not authorized to sell such that variety of alcoholic
686 liquor or keeps such alcoholic liquor in the person’s possession; or possession.
687 (13) Obtains, even gratuitously, during the time when the sale thereof is forbidden, any alcoholic liquor from
688 any holder of a license for the sale thereof; or of the alcoholic liquor during the time when the sale of the alcoholic
689 liquor is forbidden.
690 (14) Causes any disturbance in any place or brings thereinto into the place or drinks therein in the place any
691 alcoholic liquor prohibited therein; or in the place.
692 (15) Buys, for any remuneration whatsoever, any alcoholic liquors for another person; or person.
693 (16) Being the holder of a license to sell alcoholic liquor, fails to post in a conspicuous place a sign which that
694 clearly reads, “According to the Surgeon General, women should not drink alcoholic beverages during pregnancy
695 because of the risk of birth defects;” or defects.”.
696 (17) Manufactures, distributes, sells, offers for sale, possesses, purchases, or uses a powdered alcoholic
697 beverage, beverage.
698 shall, in addition to the payment of costs, be fined not more than $100, and, on failure
699 (b) If a person fails to pay such fine and costs, shall be imprisoned the person is subject to imprisonment for 30
700 days.
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701 (c) Justices of the peace shall Peace have original jurisdiction to hear, try, and finally determine alleged violations
702 of this section.
703 Section 22. Amend § 904, Title 4 of the Delaware Code by making deletions as shown by strike through and
704 insertions as shown by underline as follows:
705 § 904. Offenses concerning certain persons [Effective until Aug. 15, 2026].
706 (m) Nothing in this section shall prevent prevents the employment in a package store by a retailer of anyone a
707 person who has reached the age of 18 years, under such conditions as the Commission may by rule prescribe; provided,
708 however, that no such prescribe, but the minor shall may not sell or serve alcoholic liquors.
709 § 904. Offenses concerning certain persons [Effective Aug. 15, 2026; Effective until Aug. 15, 2030].
710 (m) Nothing in this section shall prevent prevents the employment in a package store by a retailer of anyone a
711 person who has reached the age of 18 years, under such conditions as the Commission may by rule prescribe; provided,
712 however, that no such prescribe, but the minor shall may not sell or serve alcoholic liquors.
713 § 904. Offenses concerning certain persons [Effective Aug. 15, 2030].
714 (m) Nothing in this section shall prevent prevents the employment in a package store by a retailer of anyone a
715 person who has reached the age of 18 years, under such conditions as the Commission may by rule prescribe; provided,
716 however, that no such prescribe, but the minor shall may not sell or serve alcoholic liquors.
717 Section 23. This Acts take effect on the Act’s enactment into law and Section 10 and Section 12 of are to be
718 implemented the earlier of the following:
719 (1) Six months from the date of the Act’s enactment into law.
720 (2) Notice by the Alcoholic Beverage Control Commissioner published in the Register of Regulations that
721 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
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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
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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
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0321530072Every fact on this page links to its source, starting with the official bill record.