TITLE 4

Alcoholic Liquors and Marijuana

CHAPTER 3. Delaware Alcoholic Beverage Control Commissioner

§ 301. Delaware Alcoholic Beverage Control Commissioner; Appeals Commission; qualifications; appointment; term; compensation.

(a) The Commissioner shall be a resident of Delaware and suitably educated and experienced to carry out the duties and responsibilities set forth in this chapter.

(b) The Commissioner and 3 members of the Appeals Commission, 1 from each County, shall be appointed by the Governor and confirmed by a majority of the members elected to the Senate and shall serve at the pleasure of the Governor.

(c) In the event of death, resignation, temporary incapacity or removal of the Commissioner and prior to the appointment of a successor, the Governor may appoint the Deputy Commissioner, or such other person as deemed qualified by the Governor, to serve as Acting Commissioner. The Commissioner may name a Deputy Commissioner. The Commissioner may, during an absence from the State, appoint the Deputy Commissioner to serve as Acting Commissioner during such absence. In either case, the Acting Commissioner shall have all the powers and shall perform all the duties and functions of the Commissioner during the Commissioner’s absence or incapacity or until a successor is duly qualified and appointed.

(d) The Commissioner shall be compensated as provided for in the Annual Budget Act.

(e) The members of the Appeals Commission shall be compensated at the rate of $150 per meeting together with the reasonable expenses for no more than 12 meetings per year.

(f) The Appeals Commission shall meet and elect a chairperson who shall convene meetings of the Commission as frequently as needed to consider appeals of the Commissioner’s decision.

38 Del. Laws, c. 18, §  4;  Code 1935, §  6133(1), (5)-(7);  4 Del. C. 1953, §  301;  50 Del. Laws, c. 393, §  350 Del. Laws, c. 547, §  355 Del. Laws, c. 308, §  160 Del. Laws, c. 265, §  172 Del. Laws, c. 486, §  773 Del. Laws, c. 135, §  1


§ 303. Employees.

Necessary staff as required shall be employed as required to carry out the work under the chapter. After December 1, 2001, the Joint Legislative Oversight Committee will review the duties and responsibilities of the Commissioner to determine if additional staff, including hearing officer or officers, is necessary. The Department of State shall provide personnel services and other necessary support services for the office of the Commissioner and the Appeals Commission.

38 Del. Laws, c. 18, §  4;  Code 1935, §§  6133(8)-(10);  4 Del. C. 1953, §  303;  72 Del. Laws, c. 486, §  774 Del. Laws, c. 110, §  13880 Del. Laws, c. 260, § 684 Del. Laws, c. 81, § 12485 Del. Laws, c. 263, § 1

§ 304. Duties and powers of the Commissioner.

(a) The Commissioner, in accordance with the Delaware Administrative Procedures Act [Chapter 101 of Title 29], has the duty and power to do all of the following:

(1) a. Adopt and promulgate rules and regulations not inconsistent with this title or of any other law of this State, and all such rules and regulations have the force and effect of law.

b. A rule or regulation may not extend, modify, or conflict with any law of this State or the reasonable implications of a law.

c. The rules and regulations, as established by the Commissioner, must focus primarily on public safety and the best interests of the consumer and may not unduly restrict competition within the alcoholic beverage industry.

(2) Establish by rules and regulations an effective control of the business of manufacture, sale, dispensation, distribution, and importation of alcoholic liquors within and into this State, including the time, place, and manner in which alcoholic liquors are sold and dispensed, not inconsistent with this title or with any other law of this State. However, the rules and regulations established by the Commissioner may not control or regulate any of the following:

a. Recreational equipment located on the business premises of any business selling alcoholic beverages.

b. Credit transactions between licensed wholesalers and licensed package stores, to the extent permitted by federal law.

(3) a. Control the manufacture, possession, sale, and delivery of alcoholic liquors in accordance with this title; and control the purchase, possession, transportation, and sale of alcoholic liquors by those licensed to manufacture or to sell.

b. The Commissioner’s power to control the sale of alcoholic liquors may not be exercised in such a manner as to prevent any holder of a package store license for the sale of alcoholic liquors not for consumption on the premises where sold from giving a retail purchaser of a case or more of spirits, wine, or both a discount not to exceed 10% of the total dollar sale.

(4) Grant, refuse, or cancel licenses required by this title for the manufacture or sale of alcoholic liquor, or other licenses required by this title in regard thereto, and transfer any license granted.

(5) a. On petition signed by at least 10 individuals who are residents of the neighborhood, hear complaints regarding the appointments of, or the conduct of business in, any establishment where alcoholic liquor is licensed to be sold.

b. The Commissioner’s office shall give 10 days’ notice of a hearing by sending the notice, together with a recital of the complaint, by first-class mail to the address of the holder of the license for the establishment.

c. A hearing must be conducted by the Commissioner and must be public. For the purpose of a hearing, the Commissioner has the power to issue subpoenas, compel the attendance of witnesses, administer oaths, take testimony, and compel the production of pertinent books, payrolls, accounts, papers, records, and documents.

d. Whenever a person summoned to testify or to produce any such written or printed evidence refuses, without reasonable cause, to be examined, answer a legal and pertinent question, or produce any such written or printed evidence, the Commissioner conducting the hearing may certify the fact of any refusal to the Superior Court of the county in which the hearing is held and the court may proceed against the person for a contempt and punish the person in the same manner as persons are punished for contempt of court.

(6) Determine and publish standards for the manner in which a dining room of a hotel, restaurant, or club must be equipped in order to be allowed to exercise the privilege of the sale of alcoholic liquors in the dining room; and examine the plans or premises proposed for use as a dining room and authorize their use in connection with a license to sell alcoholic liquors, but the Commissioner’s authorization does not prevent the Commissioner from requiring future alterations in accordance with published standards.

(7) a. Compel the attendance of witnesses and the production of contracts, papers, books, accounts, and other documents.

b. Subpoenas issued must be signed by the Commissioner. Subpoenas may be served by any sheriff, deputy sheriff, constable, or any agent of the Division and return thereof made to the Commissioner.

c. The Commissioner may enforce compliance with a subpoena issued under this subsection by filing a motion to compel in the Superior Court that has jurisdiction over the matter. The court may award costs and attorney fees if the court determines that noncompliance with a Commissioner subpoena was unjustified, intentional, or in bad faith.

(8) For purposes of this title, act as the competent authority in connection with other matters pertinent thereto.

(9) Annually publish license information on the Commissioner’s publicly-available website setting forth all matters of interest and all statistics concerning liquor regulation and control in this State, including all of the following:

a. The number of licenses of each variety issued within this State.

b. The name and address of each person licensed to manufacture or to sell alcohol, spirits, wine, and beer.

c. The amount of alcohol, spirits, wine, and beer sold within this State.

d. The number of licenses of each kind granted and the number cancelled during the year.

e. Other data that makes a complete report to the people of this State.

(10) Negotiate and, with the approval of the Governor, enter into reciprocal agreements with the duly authorized officials of other states of the United States relative to the manufacture, importation, sale, and transportation of alcoholic liquors in the several states.

(11) [Repealed.]

(12) Provide warning signs as required by § 903(a)(16) of this title, distribute warning signs to license holders, and promulgate regulations with respect to the posting of the warning signs. A nominal fee may be charged by the Commissioner to cover printing, handling, and distribution costs.

(b) The Commissioner’s decision is conclusive unless, within 30 days after the Commissioner’s office mails notice of the decision, a party to the hearing files an appeal in the office of the Commissioner. Upon receipt of the appeal, the Commissioner shall cause the Chairperson of the Appeals Commission to be advised of the pending appeal. The Chairperson shall cause the Appeals Commission to be convened, with at least 20 days’ notice to all parties. The appeal must be heard by the Appeals Commission, who shall review, in accordance with the Administrative Procedures Act, Chapter 101 of Title 29, the matter on the record and affirm, reverse, or modify the Commissioner’s decision.

(c) The Commissioner may appear before the Appeals Commission for any appeal of the Commissioner’s decision and may appeal any decision of the Appeals Commission or any decision of the Superior Court on appeal from the Appeals Commission.

38 Del. Laws, c. 18, §§  5, 27, 35;  Code 1935, §§  6134, 6156, 6164;  42 Del. Laws, c. 193, §  1;  4 Del. C. 1953, §  304;  49 Del. Laws, c. 38750 Del. Laws, c. 547, §  457 Del. Laws, c. 494, §  257 Del. Laws, c. 740, §§  5A, B59 Del. Laws, c. 107, §§  4-759 Del. Laws, c. 590, §  165 Del. Laws, c. 322, §  167 Del. Laws, c. 23, §  367 Del. Laws, c. 110, §  167 Del. Laws, c. 109, §§  2, 367 Del. Laws, c. 344, §  269 Del. Laws, c. 314, §  169 Del. Laws, c. 340, §§  1, 271 Del. Laws, c. 271, §  172 Del. Laws, c. 486, §  773 Del. Laws, c. 133, §  180 Del. Laws, c. 325, § 182 Del. Laws, c. 99, § 185 Del. Laws, c. 269, §§ 2, 21

§ 305. Oath of Office of Commissioner and employees.

The Commissioner, Appeals Commission and any hearing officer(s) shall, on entering office, take the oath of the Constitution of the State. Any other employee may be required to take the oath of the Constitution of the State at the discretion of the Secretary of State.

38 Del. Laws, c. 18, §  6;  Code 1935, §  6135(1);  4 Del. C. 1953, §  305;  57 Del. Laws, c. 740, §  5C67 Del. Laws, c. 109, §  469 Del. Laws, c. 314, §  270 Del. Laws, c. 186, §  172 Del. Laws, c. 486, §  784 Del. Laws, c. 81, § 124

§ 306. Conflict of interest.

(a) The Commissioner, Appeals Commission, and any hearing officer(s) or such person’s spouse, or such person’s son or daughter residing at such person’s residence, shall not have a financial interest in any entity that sells, manufactures, or uses alcohol; provided, however, such persons may invest in mutual funds or similar financial instruments that hold no more than a 10% interest in any such entity.

(b) Neither the Commissioner nor any person employed in the office of the Commissioner shall receive any commission or profit whatsoever from, or have any interest whatsoever in a business licensed under this chapter to purchase or sell alcoholic liquors; provided, however, that nothing in this section shall prevent the Commissioner, Appeals Commission, hearing officer(s) or employee from purchasing and keeping alcoholic liquors in his or her possession for the personal use of him or herself, members of his or her family or his or her guests if such purchase is otherwise permitted by this title.

(c) The Commissioner and the Appeals Commission shall annually file with the Public Integrity Commission the Financial Report pursuant to § 5813 of Title 29.

38 Del. Laws, c. 18, §  7;  Code 1935, §  6136(1), (3);  4 Del. C. 1953, §  307;  57 Del. Laws, c. 740, §§  5E, F59 Del. Laws, c. 107, §  872 Del. Laws, c. 486, §  7

§ 307. Commissioner’s statement of interest in liquor business.

When notified of appointment as Commissioner or Appeals Commissioner, the individual so notified shall furnish in duplicate and in writing to the Governor and to the President Pro Tempore of the Senate a statement of every interest, direct or indirect, and however small, held or owned by him or her as a member or as a stockholder in any partnership, corporation or other association engaged in the sale or in the manufacture of alcoholic liquors or in any undertaking, industry or business in which alcoholic liquors are used or required and prior to taking the oath of office the Commissioner and Appeals Commission must wholly and fully dispose of all interests. One copy of the statement shall be inserted in the permanent records of the office of the Commissioner open to public inspection.

38 Del. Laws, c. 18, §  6;  Code 1935, §  6135(2), (3);  4 Del. C. 1953, §  306;  57 Del. Laws, c. 740, §  5D69 Del. Laws, c. 314, §  370 Del. Laws, c. 186, §  172 Del. Laws, c. 486, §  7

§ 308. Promulgation, repeal and amendment of rules and regulations.

(a) All rules and regulations of the former Alcoholic Beverage Control Commission currently in place as of December 1, 2000, shall remain in full force and effect until revoked or modified in accordance with the procedures set forth in this chapter.

(b) The Commissioner may make any regulation and may amend or repeal any regulation as the Commissioner deems necessary for carrying out this title respecting internal economy and the conduct of business, and may amend or repeal any such regulation. Such regulations shall be published in form open to public inspection at the office of the Commissioner and in accordance with the Administrative Procedures Act.

(c) Any regulation made by the Commissioner and approved and published as provided by this chapter may be repealed or amended either by another regulation of the Commissioner, approved and published as so provided, or by an act of the General Assembly of this State.

38 Del. Laws, c. 18, §  8;  Code 1935, §  6137;  4 Del. C. 1953, §  309;  57 Del. Laws, c. 494, §  172 Del. Laws, c. 486, §  7

§ 309. Bond [Repealed].

Repealed by 73 Del. Laws, c. 134, § 1, eff. July 9, 2001.


§ 310. Deposit of receipts with the Office of the State Treasurer.

All moneys received by the Commissioner must be paid to state bank accounts custodied with the Office of the State Treasurer. The Commissioner shall maintain a record of all receipts and make records available to the Department of Finance, Division of Accounting, upon request.

38 Del. Laws, c. 18, §  1140 Del. Laws, c. 24, §  1;  Code 1935, §  6140(1);  42 Del. Laws, c. 77, §§  1-3;  4 Del. C. 1953, §  311;  59 Del. Laws, c. 107, §  967 Del. Laws, c. 109, §  572 Del. Laws, c. 486, §  785 Del. Laws, c. 269, § 3

§ 311. Property and profits of the office of the Commissioner.

All property owned by the office of the Commissioner and all associated profits shall be the property of the State.

38 Del. Laws, c. 18, §  11;  Code 1935, §  6141;  4 Del. C. 1953, §  313;  67 Del. Laws, c. 109, §  572 Del. Laws, c. 486, §  7

§ 312. Financial statements of the Commissioner.

The Commissioner shall render an account to the State Treasurer, in the manner and at the time required by the latter, of its receipts and disbursements, and of its assets and liabilities. The State Treasurer will not, however, require such reports to be rendered more often than quarterly.

38 Del. Laws, c. 18, §  13;  Code 1935, §  6142(1);  4 Del. C. 1953, §  314;  59 Del. Laws, c. 107, §  1167 Del. Laws, c. 109, §  572 Del. Laws, c. 486, §  7

§ 313. Audit.

The operation of the office of the Commissioner must be examined and audited by the Auditor of Accounts, as often as the Auditor of Accounts considers necessary.

38 Del. Laws, c. 18, §  13;  Code 1935, §  6142(2);  4 Del. C. 1953, §  315;  59 Del. Laws, c. 107, §  1267 Del. Laws, c. 109, §  572 Del. Laws, c. 486, §  785 Del. Laws, c. 269, § 4