TITLE 4

Alcoholic Liquors and Marijuana

CHAPTER 5. Licenses and Taxes

Subchapter I. Manufacture and Import

§ 501. Supplier and representative licenses; importer; delivery and storage at in-state warehouse.

(a) (1) Before a person sells alcoholic liquor intended for importation into this State, the person shall do all of the following:

a. Obtain from the Commissioner a supplier’s license in the form prescribed by the Commissioner.

b. Pay a biennial license fee in the amount of $100 to be permitted to sell not more than 200 cases of alcoholic liquors for importation into this State during the calendar year or a biennial fee in the amount of $1,000 to be permitted to sell more than 200 cases of alcoholic liquors for importation into this State during the calendar year.

(2) This subsection does not apply to any of the following:

a. A person licensed under subsection (b) of this section.

b. A person who is licensed by the Commissioner and has a place of business in this State for the manufacture or sale of alcoholic liquors.

c. A person who is an officer, director, or employee of a person who is licensed by the Commissioner and has a place of business in this State for the manufacture or sale of alcoholic liquors.

(b) (1) Before a person may do any business in this State in any manner whatsoever as a sales representative of a person who sells any alcoholic liquors intended for importation into this State, the person shall do all of the following:

a. Obtain from the Commissioner a sales representative license in the form to be prescribed by the Commissioner.

b. Pay a $50 biennial license fee.

(2) Unless employed in any way by a person required to be licensed under subsection (a) of this section, this subsection does not apply to any of the following:

a. A person who is licensed by the Commissioner and has a place of business in this State for the manufacture or sale of alcoholic liquors.

b. A person who is an officer, director, or employee of a person who is licensed by the Commissioner and has a place of business in this State for the manufacture or sale of alcoholic liquors.

(c) (1) This section does not apply to a daily importation into this State of a quantity of alcoholic liquor that does not exceed the amount of alcoholic liquor the United States government permits to be imported into the United States without payment of any duty thereon, provided such alcoholic liquor is imported as follows:

a. By a person permitted by the laws of this State to purchase and consume alcoholic liquor.

b. Solely for consumption by the person importing it or the person’s family or guests.

(2) If such importation is by motor vehicle, the alcoholic liquor must be transported in an area of the motor vehicle not immediately accessible to the driver or to any passenger in the motor vehicle.

(d) Persons licensed by the Commissioner as suppliers under this section are authorized only to sell, ship, or deliver alcoholic liquors to licensed Delaware importers or manufacturers, and persons licensed by the Commissioner as sales representatives under this section are authorized only to solicit orders, on behalf of licensed Delaware importers or manufacturers, from persons licensed by the Commissioner to sell alcoholic liquors.

(e) The Commissioner may promulgate rules and regulations the Commissioner deems necessary for the enforcement or furtherance of the objectives of this section. The Commissioner may provide by such rules or regulations that the applicant for a supplier’s license may pay a fee for each calendar year or pay the increased fee during any calendar year without the filing of an additional application.

(f) (1) A person may not import alcoholic liquor into this State, unless the alcoholic liquor is delivered directly to a licensed warehouse in this State owned, leased, or operated by a licensed Delaware importer and is unloaded and physically stored in the warehouse

(2) An importer licensed as a supplier by the Commissioner must deliver alcoholic liquors directly to a licensed warehouse in this State owned, leased, or operated by a licensed Delaware importer and unload and physically store the alcoholic liquors in the warehouse.

38 Del. Laws, c. 18, §  15;  Code 1935, §  6144(1);  4 Del. C. 1953, §  501;  58 Del. Laws, c. 2559 Del. Laws, c. 107, §  1367 Del. Laws, c. 48, §  270 Del. Laws, c. 186, §  170 Del. Laws, c. 408, §§  1, 272 Del. Laws, c. 486, §  977 Del. Laws, c. 72, §  285 Del. Laws, c. 269, § 5

§ 502. Application; requirements.

(a) The application for a license to manufacture or to import alcoholic liquor shall be made upon a blank form furnished by the Commissioner and shall state:

(1) The name, age, and previous occupation of an individual applicant or the name and description of a partnership, corporation, or other applicant organization;

(2) The location and description of the premises, located in this State, where it is proposed that such alcoholic liquor is to be manufactured or is to be stored by the importer prior to its resale in the State and whether the premises are owned or leased by the applicant and, if leased, the name of the owner thereof;

(3) The amount of capital proposed to be invested in the undertaking;

(4) The kind and approximate amount of alcoholic liquor proposed to be manufactured or imported;

(5) The approximate date on which it is proposed to start such manufacture or importation;

(6) Such other information as is required by the Commissioner.

(b) The individual signing the application for a license to manufacture or to import alcoholic liquor shall be over 21 years of age.

38 Del. Laws, c. 18, §  15;  Code 1935, §  6144(1);  4 Del. C. 1953, §  502;  59 Del. Laws, c. 107, §  1467 Del. Laws, c. 48, §  367 Del. Laws, c. 109, §  672 Del. Laws, c. 486, §  9

§ 503. Inspection of premises.

The Commissioner shall inspect or cause to be inspected premises, located in this State, which are proposed by any applicant to be used for manufacture or storage, and shall make record of the date of such inspection, the name of the inspector and the result of the inspection.

38 Del. Laws, c. 18, §  15;  Code 1935, §  6144(2);  4 Del. C. 1953, §  503;  72 Del. Laws, c. 486, §  9

§ 504. Bond.

The Commissioner may require that any person licensed in accordance with § 501 of this title shall furnish a satisfactory bond in such amount as the Commissioner deems necessary to guarantee the performance of the requirements of this title.

38 Del. Laws, c. 18, §  15;  Code 1935, §  6144(9);  4 Del. C. 1953, §  504;  59 Del. Laws, c. 107, §  1572 Del. Laws, c. 486, §  9

§ 505. Conditions for issuance of license.

No license to manufacture or import shall be issued unless the Commissioner is satisfied as to the responsibility of the applicant, as to the condition of the premises proposed to be used and as to the means proposed to be used to determine the amount of alcoholic liquor manufactured or imported.

38 Del. Laws, c. 18, §  15;  Code 1935, §  6144(3);  4 Del. C. 1953, §  505;  72 Del. Laws, c. 486, §  9

§ 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 Commissioner 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 a manufacturer, as defined in § 101 of this title, and whether or not said “manufacturing” takes place within this State and whether or not the activity is licensed by the Commissioner, or the owner, partner or stockholder of such a manufacturer, to own or be interested in any manner in any establishment licensed by the Commissioner to import alcoholic liquors into the State; or

(3) For a supplier, whether or not licensed by the Commissioner, who manufactures or has an interest in a manufacturer, or the owner, partner or stockholder of such a supplier, to own or be interested in any manner in any establishment licensed by the Commissioner to import alcoholic liquors into the State; or

(4) For a supplier licensed by the Commissioner, or the owner, partner or stockholder of such a licensed supplier, to own or be interested in any manner in any establishment licensed by the Commissioner to import alcoholic liquors into the State; or

(5) 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 Commissioner 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.

(c) This section shall not be construed to prohibit a manufacturer or supplier doing business as a corporation, or the stockholders or affiliates thereof, from having an interest in or obtaining a license for a boat pursuant to § 554(b) of this title.

38 Del. Laws, c. 18, §  15;  Code 1935, §  6144(4);  4 Del. C. 1953, §  506;  63 Del. Laws, c. 258, §  165 Del. Laws, c. 291, §  172 Del. Laws, c. 486, §  974 Del. Laws, c. 252, §  178 Del. Laws, c. 220, §  1

§ 507. Monthly report.

(a) Notwithstanding any of the provisions of this chapter, every importer of alcoholic liquors licensed by the Commissioner shall make a report to the Commissioner every month, in the form that the Commissioner determines, which report shall contain an exact return of the gross amount of each variety of alcoholic liquors bought by the importer and alcoholic liquors sold within this State during the preceding calendar month. The Commissioner may require such returns to be certified under oath or affirmation of the holder of the license, or of such other person approved by the Commissioner.

(b) Any importer who fails to make a return to the Commissioner within 15 days following the expiration of any calendar month for which it should be made shall be fined $50 per day for each day’s delay counting from the expiration of said 15 days, and the license of such importer shall be suspended by the Commissioner if the return is not made within 15 additional days.

38 Del. Laws, c. 18, §  15;  Code 1935, §§  6144(5)-(8);  4 Del. C. 1953, §  507;  59 Del. Laws, c. 107, §  1672 Del. Laws, c. 486, §  9

§ 508. Filing of price schedules required.

(a) All manufacturers and distilleries offering alcoholic liquors for sale in this State shall annually file a verified schedule, in writing, on the form required by the Commissioner. A verified schedule must contain all of the following information as to each item the manufacturers and distilleries are offering for sale at that time, in this State, by brand or trade name:

(1) The capacity of each package of an item offered for sale.

(2) The nature of the contents of an item.

(3) The age and proof of an item where stated on the container label.

(4) The number of bottles of an item contained in a case of the item.

(5) The individual bottle and case price to the Delaware wholesaler or importer, for each item and not in combination with any other item.

(6) The discount given for quantity or time of payment, if any.

(b) A verified schedule need not contain information as to any brand that is owned exclusively by a package store and sold at retail in this State exclusively by the package store.

(c) A schedule of prices or price of an individual item need not be filed at any time other than provided for in subsection (a) of this section and need not be updated any time a manufacturer or distillery changes such prices between required filing times.

4 Del. C. 1953, §  508;  59 Del. Laws, c. 107, §  6667 Del. Laws, c. 109, §  772 Del. Laws, c. 486, §  985 Del. Laws, c. 269, § 6