CHAPTER 361

FORMERLY

HOUSE BILL NO. 519

AS AMENDED BY HOUSE AMENDMENT NOS. 1, 2 AND 3

AN ACT TO AMEND CHAPTER 5, TITLE 4, DELAWARE CODE, RELATING TO LICENSES AND TAXES.

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

Section 1. Amend Chapter 5, Title 4, Delaware Code, by adding a new § 512C to read as follows:

"§ 512C. Microbrewery.

(a) Upon proper application and subject to the applicable provisions, restrictions and prohibitions of this title, the Commission may grant a license to any person who is the owner or lessee of a microbrewery to manufacture, and sell beer.

(b) For purposes of this section:

(1) 'Microbrewery' shall mean a single establishment in which beer is manufactured and which is operated by the licensee in accordance with this section.

(2) 'Cider' shall mean fruit or spice-flavored beverages not containing in excess of 20% alcohol by weight.

(c) Notwithstanding any provision of this title to the contrary, a microbrewery license shall allow the licensee:

(1) To manufacture on the licensed premises, and sell not more than 25,000 barrels of beer, cider, or a combination thereof in any calendar year;

(2) To manufacture on the licensed premises beer or cider for persons, other than the licensee, licensed under this title or for persons outside this State;

(3) To sell beer and cider manufactured on the licensed premises in labelled barrels, bottles or other closed containers to wholesalers licensed under this title for delivery by them to persons inside or outside the State; and

(4) To sell at the licensed premises beer and cider manufactured on the licensed premises at retail for consumption off the premises.

(d) It shall be unlawful for a person to operate a microbrewery if:

(1) The license is denied, canceled, suspended or revoked for any of the grounds contained in § 543 or § 561 of this title;

(2) The establishment is moved to a location other than the licensed premises; or

(3) Except as permitted by (c)(2), the licensee owns, operates or is affiliated with any other manufacturer, importer or supplier of alcoholic liquor either in or without this State.

(e) A microbrewery licensee shall be exempt from the distance requirements for establishments licensed or to be licensed as contained in § 543(d) of this title, and such requirements shall not affect the granting of a microbrewery license.

attached thereto a label setting forth such information as required by this title, Commission rules and laws of the State."

Approved July 12, 1994.