CHAPTER 44

FORMERLY

SENATE BILL NO. 92

AS AMENDED BY SENATE AMENDMENT NOS. 1 AND 2

AND HOUSE AMENDMENT NO. 4 AS AMENDED BY HOUSE AMENDMENT NO. 1

TO HOUSE AMENDMENT NO. 4

AN ACT TO AMEND CHAPTERS 1 AND 5, TITLE 4 OF THE DELAWARE CODE RELATING TO ALCOHOLIC LIQUORS.

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

Section 1. Amend §543(b), Title 4 of the Delaware Code by striking the period "." at the end of paragraph "(6)" and inserting in lieu thereof a semicolon ";" and by adding the following new paragraphs:

"(7) The applicant or any of the applicant's directors or officers, or any of the applicant's shareholders who hold more than 10% of the outstanding issued shares has been convicted of violating any of the prohibited acts defined in 16 Delaware Code, Chapter 47, The Uniform Controlled Substances Act, or its functional equivalent under the laws of the United States, any state or territory, or any other country, including but not limited to, the illegal manufacture, delivery, trafficking, possession, or consumption of any controlled or non—controlled substance, or the delivery or possession of illegal drug paraphernalia or illegal hypodermic syringes or needles, or the conspiracy, solicitation, or other attempt to engage in such illegal activities;

(8) As to a restaurant applicant, the applicant has failed to
designate a substantial portion of the premises' floor space, as determined by the Commission, to be used for the storage, preparation, service and consumption of complete meals;

(1) As to a restaurant applicant, the applicant's projected or actual receipts from the sale of complete meals fails to represent a substantial portion of the establishment's total gross receipts as determined by the Commission;

(1) As to a restaurant applicant, the applicant's proposed premises, or any proposed extension of the premises of an existing licensed restaurant is protested in accordance with the provisions contained in §541(b) of this title or any applicable Commission rule, and the Commission finds that substantial evidence exists to conclude that the establishment's primary purpose will be the serving of alcoholic liquor- to patrons. In
reaching its decision, the Commission shall consider factors including, but not limited to, the number and sizes of bars in the establishment, the establishment's flqor plan, an approximate percentage of the projected revenue to be derived from the sale of alcoholic liquor as compared to the percentage of revenue to be derived from the sale of complete meals, the establishment's seating capacity, storage and preparation area for food service, and the number of service employees employed, or to be employed, in the establishment and their functions."

Section 2. Amend §543, Title 4 of the Delaware Code by adding a new subsection "(g)" thereto to read as follows:

"(g) Every application for a new license of any type or for an

extension of premises of an existing license of any type must be accompanied by documentation from the appropriate political subdivision that the premises to be used are properly zoned for the applicant's intended use. Additionally, before the Alcoholic Beverage Control Commission may issue a new license of any type or grant an extension of premises of an existing license of any type, the applicant shall be required to comply with all applicable licensing requirements of the appropriate political subdivision and shall provide available documentation to the Commission establishing such compliance. This subsection shall not apply to any application for a temporary extension of premises as authorized by Commission Rule; provided that any such application has not been objected to by the appropriate political subdivision which shall be

provided with notice of the application by the applicant within seven days of the date the application is filed with the Commission."

Section 3. Except for the provisions contained in new paragraph §543(b)(7) of Title 4, and the provisions relating to new applications for extensions of premises of existing licenses contained in new subsection §543(g) of Title 4, the provisions of this Act shall not apply to restaurant licenses in existence on the effective date of this Act nor shall they apply to any of the rights conferred on such existing restaurant licenses by Title 4. The provisions contained in new paragraph §543(b)(7) of Title 4, shall apply prospectively to all present licensees regardless of the type of license possessed. The provisions relating to new applications for extensions of premises to existing licenses contained in new subsection §543(g) of Title 4 shall apply prospectively.to all present restaurant licensees.

Section 4. Nothing contained herein shall be deemed to affect or limit the ability of a political subdivision to enact any otherwise lawful zoning, land use, or other law, ordinance, regulation, restriction, rule, permit requirement, limitation of occupancy, comprehensive plan, or other provision relating to restaurants or other establishments which sell and dispense alcoholic liquors.

Section 5. This Act shall be effective upon signature of the Governor.

Approved June 14, 1991.