CHAPTER 383

FORMERLY

HOUSE BILL NO. 630

AS AMENDED BY HOUSE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 4 OF THE DELAWARE CODE RELATING TO ALCOHOLIC LIQUORS 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 of Title 4 of the Delaware Code by enacting as a new Section the following :

"Section 512D. Wine Auctions.

(a) Subject to the provisions, restrictions and prohibitions of this title, the Commission may grant a Wine Auction license to each qualified applicant therefor. No person shall operate a wine auction unless licensed to do so by the Commission. For purposes of this section, a 'wine auction' shall mean a person, partnership or corporation that sells rare or fine wines on consignment from the owners of said wines at public auction to those persons who are of legal age to purchase such items. A non-profit organization may apply for a 'wine auction-gathering license' for a specific date upon application to the Commission as a fund raiser for their organization.

() Said "wine auction" license holder must have an office situated within the state, however said auctions may take place at any location within the state subject to the rules and regulations of the Commission which shall have the force of law. A non-profit organization does not need to maintain an office within the state.

(a) No more than 12 auctions may be conducted within a calendar year.

(b) The Wine Auction license holder shall have the responsibility for collecting and remitting the applicable excise taxes and gross receipt taxes due for all products auctioned. Provided further, that any products purchased at auction shall not be stocked as inventory or made available for further retail sale in any facility or store licensed under this Title."

Section 2. Amend Title 4 of the Delaware Code by amending Section 522 (b) by adding the following after "applicant corporation." as follows:

"Any auction company can apply for a license to conduct up to 12 auctions per calendar year for the resale of alcoholic beverages consigned by individuals 21 years of age or older; partnerships or corporations. Any non-profit organization can apply for a wine auction-gathering license for up to 4 auctions per year for the resale of alcoholic beverages consigned by individuals 21 years of age or older; partnerships or corporations."

Section 3. Amend Title 4 of the Delaware Code by amending Section 554 as follows by enacting as a new subsection (jj) the following:

"(jj) For a license to conduct wine auctions the biennial fee shall be $1,000. For a gathering license to conduct a wine auction by a non-profit organization the fee shall be $50,00 per event."

Approved July 8, 1998