CHAPTER 246 - ALCOHOLIC LIQUORS, WINES AND BEER

AN ACT TO AMEND CHAPTER 176 OF THE REVISED CODE OF DELAWARE, 1935, RELATING TO THE CANCELLATION OR SUSPENSION OF LICENSE FOR THE SALE OF ALCOHOLIC LIQUOR, WINES AND BEER, AND THE DISPOSITION OF ALCOHOLIC LIQUOR, WINES AND BEER BY THE COMMISSION.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. That Chapter 176 of the Revised Code of Delaware, 1935, be and the same is hereby amended by striking out Paragraphs 2a; 2b; 2c; 2d; and 2e of 6158. Section 29, and inserting in lieu thereof the following paragraphs:

6158. Section 29. 2 (a) The cancellation or the acceptance of a surrender of any license shall entail the loss of the privilege conferred by the license and shall entail the acceptance of or the seizure by the Commission of any "alcoholic liquor" found in the possession of the holder of the license. Notice of the order of the cancellation or the acceptance of the surrender of the license may be served by an officer designated by the Commission by affixing a duplicate thereof to the outside of the entrance door of the licensed premises, or by leaving a duplicate with the holder of the license, or with any member of the family of the holder over the age of eighteen years at the residence of the holder, or otherwise, as in the judgment of the Commission will give notice of such cancellation or acceptance of the surrender. All cancellations or acceptances of surrender shall take effect as soon as the order is served. The cancellation or acceptance of surrender of a license shall not act in any wise to prevent the institution of any criminal proceedings for any offense under this Act by the person who was the holder of such license while the same was in force. No conviction obtained for any offense under this Act shall prevent the Commission from cancelling the license of any offender or from making at the same time a seizure of "alcoholic liquor" as above provided.

2 (b) The Commission shall within thirty days of the date of the cancellation or acceptance of surrender remit to such license holder the part of the license fee already paid and pertaining to the unexpired term of such license. In addition, the Commission shall remit to such license holder the amount originally received by the Commission from such license holder in payment for such "alcoholic liquor" accepted or seized as remains in packages sealed by the Commission, less ten per cent of the amount received. When other legally acquired "alcoholic liquors" have been accepted or seized under this section, the current wholesale value thereof, shall be remitted to the holder of the license cancelled or surrendered by the Commission, less ten per cent of such value. When other and illegally acquired "alcoholic liquors" have been seized under this Section, no payment shall be made therefor.

2 (c) The Commission shall cancel every license made use of on behalf of any "person" other than the one to whom or on behalf of whom it has been issued.

2 (d) The rights conferred by a license may be transferred by the Commission to any representative designated by the "person" to whom or on behalf of whom such license was originally granted, provided that such representative shall be a "person" approved by the Commission. In the case of death of an individual to whom a license has been granted, the Commission may transfer the license to such qualified "person" as may be recommended by the executors or administrators of the estate of the deceased licensee.

2 () In the case of seizure of "alcoholic liquor" under any judgment rendered against the holder of any license, or in the case of insolvency of such person, the officer seizing such "alcoholic liquor" or the Trustee in Bankruptcy of such license holder, shall deliver to the Commission all "alcoholic liquor" found in the possession of the judgment debtor or bankrupt, as the case may be.

The Commission must, within one month after the date of delivery by said officer or said Trustee in Bankruptcy, as the case may be, hand over to such officer or Trustee in Bankruptcy the amount originally received by the Commission for the "alcoholic liquor" so delivered as remains in packages sealed by the Commission, less ten per cent of such proceeds, and the value, as established by the Commission, of other legally acquired "alcoholic liquor" so delivered, less ten per cent of such value. No payment shall be made for any illegally acquired "alcoholic liquor" so delivered.

2 (f) Any "alcoholic liquor" purchased or seized by the Commission through the cancellation or surrender of a license, the death of a licensee, under a judgment or in case of the insolvency of a licensee may be offered and sold to the "importers" licensed by the Commission for the sale of such "alcoholic liquor", who shall file sealed bids for such liquors in accordance with regulations adopted and published by the Commission and in the event there are not any purchasers such "alcoholic liquors" may be destroyed by order of the Commission.

Approved May 5, 1937.