CHAPTER 258

FORMERLY

HOUSE BILL NO. 536

A BILL TO AMEND THE "TIED-HOUSE" PROVISIONS OF THE LIQUOR CONTROL ACT TO PERMIT CORPORATIONS WHOSE STOCK IS PUBLICLY TRADED TO HAVE OWNERSHIP INTERESTS IN MANUFACTURING AND CONSUMER SALES Or ALCOHOLIC LIQUORS WHERE SUCH OWNERSHIP WOULD NOT BE ANTI-COMPETITIVE.

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

Section 1. Section 506, Title 4, Delaware Code, is amended by striking said section 506 in its entirety and inserting in lieu thereof the following new Section 506:

"§506. Interest in establishment selling to consumer.

(a) It shall be unlawful:

(1) For a manufacturer or supplier, or the owner, partner or stockholder of a manufacturer or supplier, to own or be interested in any manner in any establishment licensed by the Commission to import alcoholic liquors into the State or to sell alcoholic liquors, either by the bottle or by the glass, to the consumer thereof, for consumption either on or off the premises where sold; or

(2) For any importer, or the owner, partner or stockholder of an importer, to own or be interested in any manner in any establishment licensed by the Commission to sell alcoholic liquors, either by the bottle or by the glass, to the consumer thereof, for consumption either on or off the premises where sold.

(b) This section shall not be construed to prohibit a manufacturer, supplier or importer doing business as a corporation, or the stockholders thereof, from having an interest in any establishment licensed to sell alcoholic liquors to the consumer thereof; where:

(1) The stock of such manufacturer, supplier or importer and such establishment is publicly traded on a national or regional exchange or over-the-counter.

(2) The manufacturer, supplier or importer does not use its ownership interest in such establishment as to induce, directly or indirectly, such establishment to purchase any products from the manufacturer, supplier or importer to the exclusion, in whole or in part, of products sold or offered for sale by other manufacturers, suppliers or importers."

Approved June 9, 1982.