TITLE 4

Alcoholic Liquors and Marijuana

CHAPTER 5. Licenses and Taxes

Subchapter II. Purchase, Sale and Dispensing

§ 511. General licensing requirements.

(a) (1) Upon proper application, the Commissioner may grant licenses to persons described in §§ 512-521 of this title to purchase and resell or dispense alcoholic liquor in the manner and to the extent provided in those sections. The person to whom such license is granted may purchase, resell or dispense alcoholic liquor in accordance with the person’s license if the license fee has been paid and the license is still in force.

(2) a. Except as provided in paragraph (a)(2)b. of this section, a person licensed under §§ 512 and 516 of this title may purchase product only from an importer licensed by the Commissioner.

b. A person licensed under §§ 512 and 516 of this title may purchase up to 20 gallons of product per day from a licensee licensed by the Commissioner for off-premises sales.

(b) If a licensee holds an on premises license and an off premises license, voluntary relinquishment of 1 of the said licenses and the retention of the other license shall be permitted automatically by the Commissioner.

(c) If a person applies for a license as a motorsports speedway under § 512(a) of this title, in lieu of compliance with the procedural notice and protest requirements of §§ 524 and 541 of this title, the Commissioner shall, on the date the application is filed, schedule a hearing to consider the application to be held at least 20 days after the application filing date and notify applicant of the hearing date. Within 3 days thereof, the applicant shall:

(1) Mail a notice by certified mail, return receipt requested, to all property owners within 1,000 feet from any point on the boundary line of the premises to which the license shall apply; and

(2) Cause to be advertised a notice in at least 2 different newspapers for 3 issues circulated in the community in which the applicant will operate.

The said notices of the time and location of the hearing shall be approved by the Commissioner prior to distribution.

38 Del. Laws, c. 18, §  17;  Code 1935, §  6146;  4 Del. C. 1953, §  511;  59 Del. Laws, c. 107, §  1772 Del. Laws, c. 486, §  973 Del. Laws, c. 244, §  1182 Del. Laws, c. 99, § 2

§ 512. Licenses.

(a) Any person, who is the owner or lessee, or who is recognized by the Commissioner as being in charge of a hotel, beer garden, motel, taproom, restaurant, motorsports speedway, concert hall, horse racetrack, multi-purpose sports facility, club or multiple activity club, may apply to the Commissioner for a license to purchase spirits, beer, or wine from an importer and to receive, keep and sell such spirits, beer, or wine either by the glass or by the bottle for consumption on any portion of the premises approved by the Commissioner for that purpose. Such a license entitles a club to sell such spirits, wine, or beer only to members of that club. A multiple activity club which holds such a license may apply for an additional license to sell such spirits, wine, or beer to any person who is a guest of such club or of a member of such club who is duly registered in accordance with a bylaw or rule of such club, approved by the Commissioner, provided that if the Commissioner determines that any applicant is not a multiple activity club, as defined in § 101 of this title, the application shall be denied. There shall be no age restrictions on persons permitted on the premises of a licensed multiple activity club.

(1) Notwithstanding any law, regulation, or rule to the contrary, any restaurant, brewpub, tavern, or taproom, or other entity with a valid on-premise license issued pursuant to subchapter II of Chapter 5 of this title may sell alcoholic liquors in transactions for take-out, curbside, drive through, or delivery service. No person shall provide alcoholic beverage delivery services unless such person or business entity holds a third-party delivery license. Upon proper application, the Commissioner may grant a third-party delivery license to provide alcoholic liquor delivery services to customers so long as the person or business entity is also registered to do business in this State. The Commissioner shall not grant a third-party delivery license to a person or entity that also holds an on-premise license. Delivery service must be made by a licensed third-party vendor, or such third party’s employee or independent contractor, provided that the on-premise licensee has entered into a written agreement with a licensed third-party delivery vendor that authorizes the third-party vendor, or such third-party vendor’s employee or independent contractor, to deliver alcoholic liquors on behalf of the on-premise licensee. The licensed third-party vendor may not include an entity whose business is primarily the interstate shipment of goods.

(2) All alcoholic liquors sold for off-premise consumption under this subsection must comply with all of the following requirements:

a. Be sold in containers that are securely closed, which means a container that is designed to prevent consumption without removal of the lid, cap, or seal, and does not include a container with a lid with sipping holes or openings for straws.

b. [Repealed.]

c. Be limited per customer to 2750 ML bottles of wine, 6 servings of beer, and mixed cocktails which are made in the restaurant, brewpub, tavern, taproom or other entity with a valid on-premise license.

d. Be sold and served on the premises only by a person certified as a responsible alcoholic beverage server pursuant to § 1205 of this title.

e. If sold by a restaurant, comply with 1 of the following requirements:

1. The alcoholic liquor is sold with the customer’s purchase of food that costs at least $10.

2. The alcoholic liquor is ice cream containing up to 10% alcohol by volume.

f. If sold in a transaction for delivery service:

1. Be delivered by a licensed third-party vendor, or such licensed third-party vendor’s employee or independent contractor, who is at least 21 years of age, and has been provided a program of learning content related to the responsible delivery of alcoholic beverages that has been approved by the Commissioner. A third-party delivery vendor’s program shall address the following topics:

A. Age requirements for possessing, purchasing, and consuming alcoholic beverages;

B. Acceptable forms of identification;

C. Methods to detect fake and altered forms of identification;

D. Typical signs of intoxication;

E. Methods of detecting intoxication in consumers;

F. Reasons to refuse delivery, including that a consumer failed to provide valid identification, was underage, or displayed signs of intoxication; and

G. How to use ID scanning technology to verify a recipient’s age.

2. If delivered by motor vehicle, be placed in a trunk, rear compartment, back seat, or other area that is not readily accessible to the driver of the vehicle.

3. Be conveyed to the purchaser to whom the alcoholic liquors are being delivered only after the licensed third-party delivery vendor, or such third party’s employee or independent contractor, has verified that the recipient is not intoxicated and is 21 years of age or older, signified by the recipient’s identification with a photograph that reasonably appears to match the appearance of the recipient. The licensed third-party delivery vendor shall maintain a record of the following information for all recipients for a period of 2 years: name, date of birth, and address to which the alcoholic beverages were delivered. If such person’s age and apparent sobriety cannot be verified, the alcoholic liquors must be returned to the premises of the licensee.

4. The delivery is completed during the hours in which the on-premise licensee is lawfully allowed to sell alcoholic liquors.

5. If the on-premise licensee uses a web application or internet website to facilitate delivery of alcoholic liquors by a licensed third-party vendor, the sales transactions take place between the customer and the on-premise licensee, and the on-premise licensee appears as the merchant of record.

6. Only alcoholic beverages obtained directly from the on-premise licensee with which the order was placed may be delivered.

7. May not be delivered out-of-state or to a state-operated facility, a correctional facility, a hospital, a locker mailbox, a post office box, a package shipping or storage facility, a retail licensee, a public school, a charter school, a grade school, a middle school, a high school, undergraduate housing at an institution of higher learning, or outside of Delaware.

8. In addition to application requirements and any regulations promulgated by the Commissioner, third-party delivery licensees shall provide to the Commissioner, upon request, a copy of any contracts entered into by the third-party delivery licensee with any on-premise licensee offering alcoholic beverages for delivery.

g. An on-premise licensee’s responsibilities under this section regarding delivery of alcoholic liquor to a consumer by a licensed third-party delivery vendor are considered satisfied at the time the on-premise licensee transfers possession of the alcoholic liquor to the licensed third-party delivery vendor, or such third party’s employee or independent contractor. The acts during delivery of a licensed third-party delivery vendor or such third party’s employee or independent contractor are not attributable to the on-premise licensee.

(b) (1) The license issued to a horse racetrack or multi-purpose sports facility pursuant to this section shall continue to be valid whether or not a race meet or sporting event is in progress.

(2) Subject to the provisions, restrictions and prohibitions of this title, the Commissioner may allow a horse racetrack to brew beer on its premises under all of the following conditions and restrictions:

a. The brewing facility must be situated on the premises of, or be physically a part of, the horse racetrack.

b. The brewing facility must not brew more than 4,000 barrels of beer in any calendar year.

c. In addition to other permitted sales, the horse racetrack may sell at the licensed premises beer manufactured on the licensed premises for on-premises consumption.

d. In addition to other permitted sales, the horse racetrack may sell at the licensed premises beer manufactured on the licensed premises for consumption off of the premises if the beer is sold in a growler.

e. The horse racetrack may sell beer manufactured on licensed premises in labeled barrels, bottles, or other closed containers to wholesalers licensed under this title for delivery by them to persons inside or outside this State.

f. The horse racetrack is prohibited from owning, operating, or being affiliated with any importer of alcoholic liquor, either in or without this State.

g. The Commissioner may make and publish such rules and regulations with respect to the assessment and payment of the tax on beer, under § 581 of this title, as the Commissioner deems proper, and all such rules and regulations that are not inconsistent with this title shall have the force and effect of law.

(3) The issuance of a horse racetrack license that permits the manufacture and sale of beer for off-premises consumption are exempt from the distance requirements for establishments licensed or to be licensed under § 543(d) of this title, and such requirements do not affect the granting of a horse racetrack license.

(c) Any person operating a dinner theater presenting public performances featuring live actors in dramatic or musical productions may apply to the Commissioner for a license to keep and sell alcoholic liquor to patrons for consumption on the premises served at such performances, and for consumption on the premises during intermissions, subject to such rules and regulations as may be promulgated by the Delaware Alcoholic Beverage Control Commissioner, provided that the licensee does not serve alcohol unaccompanied by a meal at more than 10 performances during the calendar year.

(d) Any person who has purchased a bottle of alcoholic liquor other than beer from a premises licensed for the sale and consumption on the premises where sold licensed under this title, and who has partially consumed the contents of such bottle on the licensed premises, may, if the bottle is capped, remove it from the licensed premises for the purpose of consumption off the licensed premises.

(e) Any person receiving a license under this section shall be permitted to charge a cover charge at any time live entertainment is actually being provided by the licensee, provided that any licensee charging a cover charge shall prominently display the fact that a cover charge is being made, both at the entrance to the premises and on the menu if one is used on the premises.

(f) Any person operating a bowling alley or movie theater may apply to the Commissioner for a license to keep and sell alcoholic liquor to patrons for consumption on the premises only. A license for a movie theater shall allow for consumption by patrons within the theater or theaters where movies are being shown. A movie theater which obtains a license must sell alcoholic liquors at a separate bar or location away from other food and drink, may only sell 1 alcoholic beverage at a time per age-verified patron and may only serve 2 alcoholic beverages per patron per movie showing. Movie theater managers and employees involved in serving alcohol must complete alcohol service training as prescribed by the Commissioner.

(g) (1) A caterer may apply to the Commissioner for a license to purchase alcoholic liquors from an importer and to receive, keep and sell such alcoholic liquors either by the glass or by the bottle, for consumption on any portion of the premises approved by the Commissioner for that purpose.

(2) An off-site caterer may apply to the Commissioner for a license to purchase alcoholic liquors from an importer and to receive, keep, transport and sell such alcoholic liquors either by the glass or by the bottle for consumption on any portion of off-site premises approved by the Commissioner for that purpose. Transporting of alcoholic liquors by an off-site caterer must be done in accordance with the Commissioner’s rules.

(h) Notwithstanding any provision of this title to the contrary, motorsports speedways may permit patrons to bring inside with them alcoholic beverages regulated under this title for their own personal consumption, provided that they have a lawful ticket for admission to the facility and are of the lawful age to consume alcoholic beverages. The motorsports speedway may restrict the portions of the facility that patrons may act in accord with this section. Notwithstanding any provision of this title to the contrary, a motorsports speedway is not required to maintain a license required pursuant to § 554 of this title in order to permit patrons to bring inside with them alcoholic beverages regulated under this title for their own personal consumption.

(i) A certificated air passenger carrier maintaining and operating a warehouse storage facility in the State may apply to the Commissioner for a license to purchase alcoholic liquors from an importer and to receive at the carrier’s warehouse or airport facility, keep at the carrier’s warehouse or airport facility, transport to the carrier’s airport facility, and sell such alcoholic liquor to its passengers for consumption on its aircraft only.

(j) An establishment licensed as a restaurant shall not be required to use the word “restaurant” in its tradename, menus, advertisements or signage unless the Commissioner specifically finds that the public may be confused as to its status as a restaurant.

(k) Any person who holds a valid restaurant license issued by the Commissioner may deny a minor, as defined in § 708 of this title, admission to or permission to remain on the premises after 9:00 p.m. (official Eastern time) unless accompanied by a parent or by a legal guardian.

38 Del. Laws, c. 18, §  17;  Code 1935, §  6146;  4 Del. C. 1953, §  512;  55 Del. Laws, c. 283, §  156 Del. Laws, c. 335, §  357 Del. Laws, c. 18957 Del. Laws, c. 44758 Del. Laws, c. 19959 Del. Laws, c. 107, §  17A59 Del. Laws, c. 590, §§  2, 460 Del. Laws, c. 466, §§  3, 964 Del. Laws, c. 434, §§  1, 267 Del. Laws, c. 109, §§  8-1069 Del. Laws, c. 6, §  271 Del. Laws, c. 42, §  171 Del. Laws, c. 182, §  171 Del. Laws, c. 210, §  271 Del. Laws, c. 472, §  172 Del. Laws, c. 486, §  973 Del. Laws, c. 244, §§  2-673 Del. Laws, c. 393, §  275 Del. Laws, c. 246, §  178 Del. Laws, c. 220, §  279 Del. Laws, c. 308, §  280 Del. Laws, c. 109, §  281 Del. Laws, c. 69, § 281 Del. Laws, c. 254, § 182 Del. Laws, c. 4, § 282 Del. Laws, c. 99, § 382 Del. Laws, c. 117, § 182 Del. Laws, c. 141, § 182 Del. Laws, c. 247, §§   2, 582 Del. Laws, c. 279, § 183 Del. Laws, c. 9, § 283 Del. Laws, c. 9, § 583 Del. Laws, c. 284, § 183 Del. Laws, c. 523, § 184 Del. Laws, c. 442, § 1

§ 512A. Farm wineries.

(a) Upon proper application and subject to the provisions, restrictions and prohibitions of this title, the Commissioner may grant a license to any person who is the owner or lessee of a farm winery to manufacture, ferment, blend, age, store and bottle wine, mead, and cider on the premises designated in the license. For purposes of this title, a “farm winery” is defined as an establishment at which the basic ingredients, including but not limited to the harvesting of grapes, to make wine are grown and where wine, mead, or cider are fermented or manufactured. Notwithstanding any provisions of this title to the contrary, a farm winery licensee shall be authorized to sell, deliver and ship such wine, mead, and cider in barrels, bottles or other closed containers to persons licensed under the provisions of this title to import wine, mead, and cider; and to sell and ship wine, mead, and cider to persons outside of the State in accordance with this title.

(b) A farm winery licensee shall also be authorized to store and sell wine, mead, and cider on the premises by the bottle or by the glass for consumption on or off the premises where sold. A farm winery licensee shall be permitted to purchase and store product from a Delaware licensed importer or retailer licensed under § 516 of this title, and sell said product to its retail customers for consumption on the premises where sold so long as the product is manufactured by an entity that holds a Delaware license pursuant to § 512A, § 512B, § 512C or § 512E of this title or the manufacturer, as determined by the Commissioner, would qualify for a license under said sections if it were physically located in the State.

(c) A farm winery licensee shall be exempt from the distance requirements for establishments licensed, or to be licensed, for consumption off the premises, as contained in § 543(d) of this title, and shall not affect the granting of a license of the same type.

(d) A farm winery licensee may sell, on the licensed premises, food items, souvenirs, wine-related supplies and educational material as approved by the Commissioner.

(e) The Commissioner may grant a tasting license to a farm winery licensee consistent with the provisions of §§ 525 and 554(ff) of this title.

(f) All wine, mead, and cider sold by a farm winery licensee shall be in a container which is securely sealed and has attached thereto a label setting forth such information as required by this title, Commissioner rules and laws of the State.

(g) A farm winery licensee may not engage in any business or activity in the licensed establishment unless authorized by this title or approved by the Commissioner.

(h) A farm winery licensee or a temporary licensee not to exceed 3 years shall be authorized to purchase and receive shipments of bottled, finished wine, mead, and cider from importers located within the State that are licensed in accordance with this title. Such purchases and shipments, if in bottled, finished form, must be manufactured specifically for the Delaware farm winery licensee and bear the private label of the Delaware farm winery licensee on each bottle, and, if being imported from without the State, shall be limited, as follows:

(1) During the first year of operation, no more than 10,000 gallons of the combination of wine, mead, and cider;

(2) During the second year of operation, no more than 7,500 gallons of the combination of wine, mead, and cider;

(3) During the third year of operation, no more than 5,000 gallons of the combination of wine, mead, and cider; and

(4) After 3 years of operation, no more than 25% of the total gallons of the combination of wine, mead, and cider manufactured within the State.

(5) Notwithstanding the importation limitations for bottled wine established in this paragraph, at such time when there is sufficient quantity, variety and quality of wine grapes grown in the State, then the Secretary of the Department of Agriculture may mandate that all licensed Delaware farm wineries must use at least 51% Delaware-grown fruit in their blend inventories. In the case of hardship due to crop loss, the Secretary of the Department of Agriculture may issue a special permit to import fruit, juice or other raw materials to compensate for such crop loss. Until such time as the Secretary of the Department of Agriculture makes such mandate, the licensee or a temporary licensee not to exceed 3 years shall be authorized to import grapes or grape juice from other locations within or outside of the State, pursuant to the rules and regulations of the Department of Agriculture, for the purpose of fermentation, blending, bottling and aging.

(6) [Repealed.]

(7) A temporary farm winery license may be issued, for not more than 3 years, allowing the temporary licensee to operate according to paragraphs (h)(1), (2) and (3) of this section herein if all the licensing requirements have been met except for those required in § 543(j) of this title, which requires government permitting to manufacture or ferment wine, mead and cider at the location. The temporary licensee shall, however, have obtained all necessary government permitting to operate as a temporary licensee.

(i) A farm winery licensee shall be authorized to purchase and receive shipments of unfinished wine, mead, and cider in bulk form from suppliers and importers located within and without the State that are licensed in accordance with this title.

(j) A farm winery licensee shall be prohibited from owning or operating or being affiliated with any importer or retailer of alcoholic liquor either within or without this State. Notwithstanding the foregoing, it shall be permissible for a farm winery to apply to the Commissioner for a license, under § 512(g)(1) of this title, for use of a portion of the farm winery premises as a caterer.

(k) The Commissioner may promulgate such rules and regulations with respect to the enforcement or furtherance of the objectives and provisions of this section as the Commissioner may deem necessary, and all such rules and regulations that are not inconsistent with the provisions of this title shall have the force and effect of law.

(l) A Delaware winery or farm winery shall be permitted to sell wine, mead, and cider at times permitted pursuant to § 709 of this title.

(m) A farm winery licensee shall be authorized to export grapes, grape juice or unfinished wine grown in this State in bulk to persons outside the State for crushing, fermenting, bottling and labeling and shall be authorized to receive the finished product from that person, so long as no grapes, grape juice or wine, grown or manufactured outside the State, are added to the finished product.

(n) The provisions of § 506 of this title to the contrary notwithstanding, a farm winery licensee shall be permitted to have an interest in, be affiliated with, operate, or own another supplier or manufacturer located outside the State and have an interest in a brewery-pub, microbrewery, and/or craft distillery licensed under this chapter and actually located in this State.

68 Del. Laws, c. 107, §  170 Del. Laws, c. 353, §  372 Del. Laws, c. 486, §  975 Del. Laws, c. 71, §§  1, 275 Del. Laws, c. 252, §  177 Del. Laws, c. 61, §§  1, 279 Del. Laws, c. 157, §  180 Del. Laws, c. 62, §  180 Del. Laws, c. 336, § 180 Del. Laws, c. 382, § 281 Del. Laws, c. 78, § 181 Del. Laws, c. 261, § 183 Del. Laws, c. 284, § 3

§ 512B. Brewery-pubs.

(a) Subject to the provisions, restrictions, and prohibitions of this title, the Commissioner may grant a brewery-pub license to each qualified applicant. No person shall own or operate a brewery-pub unless licensed to do so by the Commissioner. For purposes of this section, a “brewery-pub” means an establishment in which beer, cider, mead, or fermented beverages are manufactured on the premises of the licensed establishment, limited to restaurants owned or leased by the brewery-pub applicant.

(b) The following conditions and restrictions shall apply to the holder of each brewery-pub license:

(1) It must be situated on the premises of, or be physically a part of, a restaurant.

(2) It may brew, bottle, and sell beer at no more than 3 licensed establishments, provided that each such licensed establishment qualifies as a separate brewery-pub under this section.

(3) It shall brew no more than 4,000 barrels of beer in any calendar year.

(4) It may sell beer manufactured on licensed premises in labeled barrels, bottles, or other closed containers to wholesalers licensed under this title for delivery by them to persons inside or outside this State.

(5) It may sell at the licensed premises beer manufactured on the licensed premises at retail for consumption off the premises.

(6) It may sell at the licensed premises beer manufactured on the licensed premises for on-premises consumption.

(7) It is prohibited from owning, operating, or being affiliated with any importer of alcoholic liquor, either in or without this State.

(8) The provisions of § 506 of this title to the contrary notwithstanding, it may have an interest in, be affiliated with, operate, or own another supplier or manufacturer located outside the State and have an interest in 1 or more farm winery, microbrewery, or craft distillery licensed under this chapter and physically located in this State, if the total domestic sales of beer of all affiliated suppliers or manufacturers does not exceed 6 million barrels in a calendar year.

(c) It is unlawful for a person to operate a brewery-pub if any of the following apply:

(1) The restaurant portion of the licensed establishment fails to offer complete meals for consideration to patrons or fails to operate as a bona fide restaurant as defined by Commissioner rules or this title.

(2) The license is denied, cancelled, suspended, or revoked for any of the grounds contained in § 543 or § 561 of this title.

(3) The business is transferred to a different location.

(d) This section does not prohibit the granting of a restaurant license to sell alcoholic liquors, for on-premises consumption, under § 512 of this title.

(e) The Commissioner may make and publish such rules and regulations with respect to the assessment and payment of the tax on beer, as contained in § 581 of this title, as it deems proper, and all such rules and regulations that are not inconsistent with this title shall have the force and effect of law.

(f) Notwithstanding any other provision of this title to the contrary, the holder of a brewery-pub license may also make, bottle, and sell an alcoholic liquor that is fermented or distilled on the premises, subject to all of the following conditions and restrictions:

(1) All of the conditions and restrictions relating to beer under subsection (b) of this section.

(2) Alcoholic liquor that is fermented or distilled on the premises shall be taxed under § 581 of this title.

(g) The provisions of § 546 of this title to the contrary notwithstanding, the sale for off-premises consumption at up to a combined total of 3 licensees licensed under this section or 2 licensees licensed under this section and a microbrewery licensed under § 512C of this title all owned or controlled by the same person is permitted.

(h) Notwithstanding any provision of this title to the contrary, a brewery-pub located within the premises of a public golf course, as defined in “club” under § 101 of this title, may apply to the Commissioner for authorization to sell alcoholic beverages at retail to members of the public for consumption on the public golf course, if the public golf course owns, is owned by, or is under common ownership with an entity that holds a membership or ownership interest in the licensed brewery-pub.

68 Del. Laws, c. 205, §  170 Del. Laws, c. 469, §§  1, 271 Del. Laws, c. 83, §  172 Del. Laws, c. 486, §  973 Del. Laws, c. 225, §  177 Del. Laws, c. 432, §§  4, 579 Del. Laws, c. 157, §  182 Del. Laws, c. 22, § 182 Del. Laws, c. 141, § 283 Del. Laws, c. 36, § 283 Del. Laws, c. 283, § 484 Del. Laws, c. 316, § 1

§ 512C. Microbreweries; license; alternating premises.

(a) Upon proper application and subject to the applicable provisions, restrictions, and prohibitions under this title, the Commissioner may grant a license to any of the following:

(1) A person who is the owner or lessee of a microbrewery to manufacture and sell beer, fermented beverages, mead, and cider.

(2) A person who owns a tenant microbrewery under subsection (i) of this section.

(b) For purposes of this section:

(1) “Alternating premises” means the portion of a microbrewery’s premises that is used at different times by 2 or more microbreweries to manufacture beer, fermented beverages, mead, or cider.

(2) “Host microbrewery” means the microbrewery that owns the brewing equipment in an alternating premises.

(3) “Microbrewery” means a single establishment in which beer, fermented beverages, mead, or cider is manufactured and which is operated by the licensee under this section.

(4) “Tenant microbrewery” means the microbrewery that does not own, but uses, the brewing equipment in an alternating premises.

(c) Notwithstanding any provision of this title to the contrary, a microbrewery license allows the licensee to do all of the following:

(1) To manufacture and sell on the licensed premises beer, fermented beverages, mead, or cider or a combination thereof, but the licensee may not manufacture or sell more than the maximum amount permitted by federal regulations to qualify for a “reduced rate of tax for certain brewers” under 27 C.F.R., Part 25, § 25.152(a)(2).

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

(3) To sell beer, fermented beverages, mead, and cider manufactured on the licensed premises in labeled barrels, bottles, or other closed containers to importers licensed under this title for delivery by them to persons inside or outside the State.

(4) To sell at the licensed premises beer, fermented beverages, mead, and cider manufactured on the licensed premises for consumption on or off the licensed premises. The amount of beer, fermented beverages, mead, and cider sold for off-premises consumption is limited to a maximum of 5 cases per day to each retail customer.

(5) To purchase and store product from a Delaware licensed importer or retailer licensed under § 516 of this title, and sell the product to its retail customers for consumption on the premises where sold so long as the product is manufactured by an entity that holds a Delaware license under § 512A, § 512B, § 512C, or § 512E of this title or the manufacturer, as determined by the Commissioner, would qualify for a license under 1 or more of these sections if the manufacturer were physically located in the State.

(6) The provisions of § 506 of this title to the contrary notwithstanding, to be permitted to have an interest in, be affiliated with, operate, or own another supplier or manufacturer located outside the State and have an interest in a farm winery, brewery-pub, or craft distillery licensed under this chapter and actually located in this State, provided that the total domestic sales of beer of all affiliated suppliers or manufacturers does not exceed 6 million barrels in a calendar year.

(d) It is unlawful for a person to operate a microbrewery if any of the following apply:

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

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

(3) The licensee owns, operates, or is affiliated with any importer of alcoholic liquor either in or without this State.

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

(f) All beer, fermented beverages, mead, and cider sold by a microbrewery licensee for off-premise consumption must be in containers that are securely sealed and have an attached label setting forth the information required under this title, Commissioner rules, and laws of the State.

(g) Any microbrewery or brewery licensed by the Commissioner to manufacture beer, fermented beverages, mead, or cider in this State may provide samples of the beer, fermented beverages, mead, or cider manufactured at the licensed premises in a manner approved by the Commissioner.

(h) Notwithstanding § 546 of this title, a microbrewery may sell a product that the microbrewery manufactures for off-premises consumption at a licensee licensed under this section and at up to 2 brewery-pubs licensed under § 512B of this title that are all owned or controlled by the same person.

(i) (1) The requirements to grant a license to a tenant microbrewery must include all of the following:

a. An agreement with a host microbrewery that allows the tenant microbrewery to use the host microbrewery’s brewing equipment for specified periods of time to manufacture beer, fermented beverages, mead, or cider. The compensation to the host microbrewery under an agreement may not be based upon the profit of the tenant microbrewery and is subject to the approval of the Commissioner.

b. The host microbrewery and the tenant microbrewery must have the approval of the Federal Trade and Tax Bureau (“TTB”), or its successor, to operate as an alternating premises.

c. The tenant microbrewery must retain title to all of the tenant microbrewery’s raw materials, except for water.

d. The tenant microbrewery must act as the brewer of the beer, fermented beverages, mead, or cider.

e. Upon completion of the manufacturing process, the tenant microbrewery shall remove all product from the alternating premises and transport the product to a location approved by the Commissioner for the tenant microbrewery to store and sell for on or off premises consumption. A tenant microbrewery may satisfy the requirement under this paragraph (i)(1)e. by leasing space from the host microbrewery but the tenant microbrewery may only store the tenant microbrewery’s brands in the leased space.

(2) The Commissioner may suspend or revoke the license of the tenant microbrewery upon the termination of the agreement between the host microbrewery and the tenant microbrewery.

(3) The Commissioner may suspend all licenses at the alternating premises if the TTB suspends the approval of the host or tenant microbrewery, The Commissioner must provide reasons for and conditions of a suspension under this paragraph (i)(3).

69 Del. Laws, c. 361, §  171 Del. Laws, c. 211, §§  1-372 Del. Laws, c. 486, §  976 Del. Laws, c. 32, §§  1-577 Del. Laws, c. 432, §§  1-379 Del. Laws, c. 157, §  181 Del. Laws, c. 261, § 182 Del. Laws, c. 22, § 182 Del. Laws, c. 141, § 383 Del. Laws, c. 36, § 383 Del. Laws, c. 168, § 183 Del. Laws, c. 283, § 5

§ 512D. Wine auctions.

(a) Subject to the provisions, restrictions and prohibitions of this title, the Commissioner 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 Commissioner. 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 nonprofit organization may apply for a “wine auction-gathering license” for a specific date upon application to the Commissioner as a fund raiser for their organization.

(b) 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 Commissioner which shall have the force of law. A nonprofit organization does not need to maintain an office within the State.

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

(d) 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.

71 Del. Laws, c. 383, §  172 Del. Laws, c. 486, §  9

§ 512E. Craft distillery.

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

(b) For purposes of this section, “craft distillery” shall mean a single establishment in which spirits are manufactured and which is operated by the licensee in accordance with this section.

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

(1) To manufacture on the licensed premises and sell not more than 750,000 proof gallons of distilled spirits in any calendar year;

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

(3) To sell, deliver and ship such spirits in labeled barrels, bottles or other closed containers to persons licensed under the provisions of this title to import spirits; and to sell and ship spirits to persons outside of the State in accordance with this title;

(4) To store and sell spirits on the premises by the bottle or by the glass for consumption on or off the premises where sold; and to purchase alcoholic beverages from licensed Delaware importers or retailers to add to product manufactured by the craft distillery to sell to patrons for on premises consumption only. The amount of spirits sold for off-premises consumption shall be limited to a maximum of 1 case (i.e., not more than 12-750 ml bottles) per day to each retail customer for consumption off the premises;

(5) To purchase and store product from a Delaware licensed importer or retailer licensed under § 516 of this title, and sell said product to its retail customers for consumption on the premises where sold so long as the product is manufactured by an entity that holds a Delaware license pursuant to § 512A, § 512B, § 512C or § 512E of this title or the manufacturer, as determined by the Commissioner, would qualify for a license under said sections if it were physically located in the State; and

(6) To sell, on the licensed premises, food items, souvenirs, spirit-related supplies and educational material as approved by the Commissioner.

(d) It shall be unlawful for a person to operate a craft distillery 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) It is owned, operated or affiliated with any importer of alcoholic liquor, either in or without this State; except that the holder of a craft distillery license may have an interest in, be affiliated with, operate, or own in common ownership a microbrewery, farm winery, and/or brewery-pub licensed under this chapter and actually located within this State.

(e) A craft distillery 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 craft distillery license.

(f) All spirits sold by a craft distillery licensee for off-premise consumption shall be in containers which are securely sealed and have attached thereto a label setting forth such information as required by this title, Commissioner rules and laws of the State.

(g) Any craft distillery licensed by the Commissioner to manufacture spirits in this State may provide tastings of the spirits at said premises pursuant to a spirits tasting license granted by the Commissioner pursuant to § 525 of this title.

(h) The provisions of § 546 of this title to the contrary notwithstanding, the sale for off-premises consumption at up to a combined total of 3 licenses licensed under this section, § 512A, § 512B, or § 512C of this title all owned or controlled by the same person shall be permitted.

(i) A craft distillery licensee shall be authorized to purchase and receive shipments of unfinished neutral grain spirit in bulk form from suppliers and importers located within and without the State that are licensed in accordance with this title.

(j) A craft distillery licensee shall be authorized to export unfinished spirit manufactured in this State in bulk to persons within or outside the State for blending, aging, finishing, bottling or labeling and shall be authorized to receive the finished product from that person.

(k) A craft distillery shall be exempt from the prohibition of sales on Sundays as proscribed in § 709 of this title, but any sales on Sundays shall be limited to the hours during which the holders of licenses for the sale of spirits in a store may sell on Sundays pursuant to § 709 of this title. A craft distillery shall remain closed on Thanksgiving, Christmas and Easter.

(l) The Commissioner may promulgate such rules and regulations with respect to the enforcement or furtherance of the objectives and provisions of this section as the Commissioner may deem necessary, and all such rules and regulations that are not inconsistent with the provisions of this title shall have the force and effect of law.

(m) The provisions of § 506 of this title to the contrary notwithstanding, the holder of a craft distillery license shall be permitted to have an interest in, be affiliated with, or own another supplier or manufacturer, whether located inside or outside the State, provided that the total domestic sales of all affiliated suppliers or manufacturers shall not exceed 750,000 proof gallons in any calendar year.

78 Del. Laws, c. 251, §  179 Del. Laws, c. 157, §  180 Del. Laws, c. 62, §  180 Del. Laws, c. 73, §  180 Del. Laws, c. 251, § 180 Del. Laws, c. 382, § 381 Del. Laws, c. 261, § 1

§ 512F. Temporary large events.

Any person licensed under § 512 of this title hosting a temporary large event may share the profits from the event, including the profits from alcohol sales, with the temporary large event promoter, and such sharing of profits shall not be in violation of this title, including § 561 of this title or any regulations promulgated by the Commissioner, provided that:

(1) The licensee shall be responsible for the purchase and resale or dispensing of all alcohol at the temporary large event as provided in and in compliance with this title and may not allow the temporary large event promoter to participate in such purchasing, reselling or dispensing; and

(2) The temporary large event promoter shall, prior to the temporary large event, obtain a temporary large event license from the Commissioner. Application for a temporary large event license shall be on a form prescribed by the Commissioner, made under oath or affirmation and signed before 2 witnesses, containing a statement to the effect that the temporary large event promoter:

a. Will comply with this title and the regulations promulgated hereunder;

b. Agrees to submit to the jurisdiction of the Commissioner and the courts of the State;

c. Is not a manufacturer, supplier or importer;

d. Has not been convicted of violating the liquor laws of this State or been convicted and imprisoned for a crime; and

e. Such other matters as the Commissioner may prescribe by rule or regulation.

The Commissioner may promulgate such rules and regulations with respect to the enforcement or furtherance of the objectives and provisions of this section as it may deem necessary, and all such rules and regulations that are not inconsistent with the provisions of this title shall have the force and effect of law.

79 Del. Laws, c. 6, §  2

§ 512G. Shipment of alcoholic beverages between commonly-owned entities.

(a) Any entity licensed in this State pursuant to § 512A, § 512B, § 512C or § 512E of this title, or any out-of-state supplier licensed pursuant to § 501 of this title who, as determined by the Commissioner, would meet the requirements of § 512A, § 512B, § 512C or § 512E of this title if it were located in this State, is permitted to sell or ship alcoholic beverages they manufacture to an entity licensed in this State pursuant to § 512A, § 512B, § 512C or § 512E of this title subject to all of the following conditions:

(1) The shipping and receiving licensees must be under common ownership and control, the licensees’ domestic sales of beer must be less than 6 million barrels in a calendar year, and must both apply for and receive a permit pursuant to this section.

(2) A licensee must apply for a permit with the Commissioner setting forth the nature of its license, naming the licensees or out-of-state suppliers that it desires to ship to directly or receive alcoholic beverages from directly, and such other information as the Commissioner may require.

(3) The Commissioner shall determine if a licensee meets the requirements of § 512A, § 512B, § 512C or § 512E of this title and is otherwise qualified for a permit pursuant to this section.

(4) If the Commissioner determines the licensee is eligible, the Commissioner shall issue a permit to the licensee.

(5) A permit holder under this section shall be permitted to sell product properly received under the terms of its permit as though it were manufactured at its premises, in accordance with the terms and conditions of its license, so long as it is permitted to manufacture that type of alcohol.

(6) If a licensee’s total domestic sales of beer for all affiliated suppliers or manufacturers is between 2 million and 6 million barrels of beer in a calendar year, transfers authorized by this section from licensees pursuant to § 501 and § 512C of this title to commonly owned licensees pursuant to § 512B of this title for the purpose of sales to consumers for consumption on the brewery-pub premises may be made only if the brands transferred for on-premise consumption are produced under the same trade name approved by the Commissioner for the licensee pursuant to § 512B of this title. Licensees pursuant to § 512B of this title may sell product to consumers produced by affiliated licensees under different trade names for consumption on the brewery premises if such product is purchased from a licensee pursuant to § 522 of this title.

(7) For purposes of this section, “trade name” means a trade name approved by the Commissioner that is consistent with the definition in § 3302 of Title 6 or a successor statute.

(b) As used in this section, “common ownership and control” means that the shipping and receiving licensees applying for a permit under this section manufacture and sell the same brands of alcoholic liquor that each such licensee desires to ship to directly or receive from directly the other, share at least a majority of the same directors, officers, members, or other fiduciaries, and are owned 51 percent or more by 1 person. It shall be permitted for the interest of 51 percent or more in the shipping licensee and the interest of 51 percent or more in the receiving licensee to be held by more than 1 person, but only if 1 of the following is satisfied:

(1) One person is an individual and the other person(s) is 1 or more trusts, the beneficiaries of which include such individual, such individual’s spouse, or such individual’s lineal descendants; or

(2) Each person is 1 or more trusts established by the same settlor for the benefit of the settlor, the settlor’s spouse, or the settlor’s lineal descendants, and are managed by the same fiduciaries; or

(3) Such interests are held by the same individuals.

(c) For the purposes of this section, “person” shall be defined as set forth in § 1-201(b)(27) of Title 6.

81 Del. Laws, c. 276, § 182 Del. Laws, c. 22, § 182 Del. Laws, c. 141, § 4

§ 513. Sale of beer and wine for consumption on premises of tavern.

(a) Any person in charge of a tavern may apply to the Commissioner for a license to purchase from an importer and to receive, keep, and sell beer and wine, if such beverages are consumed on the premises where sold.

(b), (c) [Repealed.]

38 Del. Laws, c. 18, §  17;  Code 1935, §  6146;  4 Del. C. 1953, §  513;  54 Del. Laws, c. 377, §  167 Del. Laws, c. 109, §  1169 Del. Laws, c. 6, §  372 Del. Laws, c. 486, §  973 Del. Laws, c. 244, §§  7, 882 Del. Laws, c. 4, § 383 Del. Laws, c. 207, § 2

§ 514. Gathering licenses; consumption on premises.

(a) If alcoholic liquors are to be sold during a gathering of persons, the manager or person in charge of such gathering, or the owner, tenant or person in charge of the premises in which the gathering is being held, must obtain 1 of the types of gathering licenses provided for in this section. Either of said licenses shall permit consumption of alcohol on the premises where sold and shall permit sale of alcohol for consumption off the premises where sold by way of a raffle or auction, live or silent, so long as the amount of alcohol sold for consumption off of the premises where sold does not exceed 10 gallons (or 38 liters) in a single day.

(b) There shall be 2 types of gathering licenses which may be granted hereunder:

(1) Gathering License — Group. — The manager or person in charge of a gathering of persons at which alcoholic liquors are to be sold shall apply for a group type gathering license, which license, if granted, shall be valid only for the time, and at the location, specified in the application therefor. A group gathering license shall not be required if the said gathering is being held on premises which are validly licensed under a biennial premises gathering license issued pursuant to paragraph (2) of this subsection.

(2) Gathering License — Biennial Premises. — The owner, tenant or person in charge of the premises, other than a residence, on which gatherings of persons are held, may apply for a biennial premises type gathering license, which license shall be valid for the entire 2 years for gatherings of persons at the location specified in the application therefor.

(c) A holder of a gathering license may purchase alcoholic liquors for sale at a gathering of persons from either retailers or importers and such retailers and importers shall be permitted to make deliveries to persons holding gathering licenses. A holder of a gathering license granted pursuant to this section shall be exempt from paying the application process fee as provided in subsection (x) of § 554 of this title.

(d) For purposes of this section only, the price paid for alcoholic liquors to be sold at a gathering of persons licensed under this section shall be a price agreed upon between the said licensee and the retailer or importer from whom said alcoholic liquors are purchased. It is permissible for a retailer or importer to donate some or all of the liquor to the gathering licensee so long as a license has been granted for the gathering by the Commissioner prior to the donation.

(e) Any person holding a biennial premises gathering license granted hereunder must report each gathering of persons to be held in its facilities to the Commissioner, which report may be made in person, in writing, or by telephone and the report must be received by the Commissioner not later than 12:00 noon of the day on which the gathering is to be held, unless it is to be held on a day on which the Commissioner shall be closed, in which case it must be so reported on the last day on which the Commissioner is open immediately preceding such a gathering.

(f) Any person holding a gathering license of either type granted hereunder who has purchased alcoholic liquors for sale at a gathering of persons may return any unopened bottles so purchased to the licensee from whom they were purchased and shall receive therefor the amount paid for each said bottle, so long as such return is made within 30 days of the date of the gathering for which they were purchased. A biennial premises type gathering licensee shall not be required to return bottles it has purchased for sale during such gathering, but may store them in a suitable storage facility for sale at a future gathering of persons to be held within its facilities.

(g) All holders of gathering licenses hereunder shall be subject to the restrictions on the hours of sale of alcoholic liquors set forth in § 709(c) of this title and to the prohibitions of sales to minors set forth in § 708 of this title.

(h) It shall not be necessary to obtain a license to dispense alcoholic liquors at a gathering of persons if no alcoholic liquors are to be sold at that gathering of persons. Importers may sell and deliver beer directly to persons for dispensing at a gathering of persons and not for resale.

38 Del. Laws, c. 18, §  17;  Code 1935, §  6146;  4 Del. C. 1953, §  514;  59 Del. Laws, c. 107, §  1859 Del. Laws, c. 128, §§  2-467 Del. Laws, c. 273, §  2472 Del. Laws, c. 486, §  978 Del. Laws, c. 64, §§  1, 2

§ 515. Sale to members of club and multiple activity club.

(a) A club or multiple activity club may apply to the Commissioner for a license to purchase spirits, wine, or beer and to sell the spirits, wine, or beer to a member of the club.

(b) (1) A bottle club is not a club.

(2) [Repealed.]

38 Del. Laws, c. 18, §  17;  Code 1935, §  6146;  4 Del. C. 1953, §  515;  56 Del. Laws, c. 335, §  459 Del. Laws, c. 107, §§  19, 2063 Del. Laws, c. 232, §  167 Del. Laws, c. 109, §  1267 Del. Laws, c. 122, §  172 Del. Laws, c. 486, §  981 Del. Laws, c. 69, § 183 Del. Laws, c. 152, § 2

§ 515A. Licenses for bottle clubs.

(a) Except as provided in this section, it is unlawful to operate a bottle club for profit or pecuniary gain.

(b) The Commissioner may, upon application, grant a license to the owner, lessor, or person in charge of the premises to operate a bottle club in accordance with this chapter.

(c) The Commissioner may only grant a bottle club license to the following:

(1) A person doing business in an establishment meeting the standards of a restaurant. The license permits the establishment to operate as a bottle club on every day of the week and on holidays, except between the hours of 2:00 a.m. and 9:00 a.m. during which time alcoholic liquors may not be consumed on the premises of the establishment.

(2) A person renting premises to customers for holding weddings or other social gatherings where there is adequate food, as determined by the Commissioner, provided by the customer or a caterer. The license permits the establishment to operate as a bottle club on every day of the week and on holidays, except between the hours of 2:00 a.m. and 9:00 a.m. during which time alcoholic liquors may not be consumed on the premises of the establishment. If a bottle club licensed under this paragraph (c)(2) has a function that utilizes an off-site caterer, all alcohol must be provided by the off-site caterer.

63 Del. Laws, c. 232, §  267 Del. Laws, c. 122, §  272 Del. Laws, c. 486, §  983 Del. Laws, c. 152, § 3

§ 516. Consumption off premises of hotel, restaurant, club, store or taproom.

(a) (1) Any person in charge of a hotel, restaurant, club or store (other than a grocery, delicatessen or cigar store), whether owner, lessee or manager, and recognized as such by the Commissioner, may apply to the Commissioner for a license to purchase from an importer and to keep and sell and deliver on the premises only spirits, wine or beer by the bottle, half bottle, keg, half keg, quarter keg, or sixtel, but not for consumption on the premises where sold, or in any dependency thereof. All vessels so sold shall be delivered to the purchaser and shall be removed from the premises where sold with the seals of such vessels unbroken, with the exception of those licenses that are approved by the Commissioner for a growler filler permit which allows a licensee to purchase beer by the keg or partial keg and fill containers at time of purchase which will then be capped to leave the licensed premises for consumption off of the premises. For purposes of issuing a new license under this section, all establishments licensed for the sale of alcoholic liquors, but not for consumption on the premises where sold, shall be considered as being of the same type; provided, however, this shall not apply to the transfer of ownership or the renewal of an existing license.

(2) Any person in charge of a store (other than a grocery, delicatessen or cigar store), whether owner, lessee, or manager, and recognized as such by the Commissioner with a valid license for consumption off premises issued pursuant to this section may sell spirits, wine or beer pursuant to paragraph (a)(1) of this section for curbside service. Any entity with a valid off premise license pursuant to §§ 512A through 512E of this title may sell alcoholic liquor pursuant to its license for curbside service. All sales for curbside service must do all of the following:

a. Comply with Chapter 7 of this title including § 706 of this title, which prohibits sales to intoxicated individuals, and § 708 of this title, which prohibits sales to individuals who have not reached the age of 21 years.

b. Be completed and delivered by a person certified as a responsible alcoholic beverage server pursuant to § 1205 of this title.

(b) Notwithstanding the provisions of subsection (a) of this section, any person, firm or corporation duly licensed by the government of the United States as a ships chandler, may apply to the Commissioner for a license to purchase and to keep, sell and deliver off the premises, spirits, wine or beer. The Commissioner may issue said license if it is satisfied that: (1) The applicant is a ships chandler operating a customs bonded warehouse under a license issued by the United States government, and (2) sales by ships chandler are limited to vessels of the United States or of a foreign country engaged in foreign trade pursuant to § 1309 of Title 19 of the United States Code.

(c) No person in charge of a taproom, whether as owner, lessee, manager or otherwise, may apply for a license to sell alcoholic liquors for consumption off the premises where sold, and the Commissioner shall not issue such a license for use in a taproom. Provided, however, that any person issued a license which authorizes the person to sell alcoholic liquors in a taproom for consumption off the premises prior to July 6, 1983, shall be permitted to retain said license, unless revoked by the Commissioner pursuant to this title; and provided further, that any person issued a license which authorizes the person to sell alcoholic liquors in a taproom for consumption off the premises prior to July 6, 1983, shall be permitted to transfer said license with the approval of the Commissioner as provided in § 571 of this title.

38 Del. Laws, c. 18, §  17;  Code 1935, §  6146(6);  42 Del. Laws, c. 18642 Del. Laws, c. 191, §  244 Del. Laws, c. 203, §  247 Del. Laws, c. 337, §  1;  4 Del. C. 1953, §  516;  55 Del. Laws, c. 82, §  156 Del. Laws, c. 311, §  462 Del. Laws, c. 69, §  164 Del. Laws, c. 104, §  167 Del. Laws, c. 109, §  1372 Del. Laws, c. 486, §  979 Del. Laws, c. 23, §  182 Del. Laws, c. 99, § 483 Del. Laws, c. 275, § 184 Del. Laws, c. 42, § 42

§ 517. Pharmacists.

Any person, whether as owner, lessee or manager, who conducts a pharmacy which is recognized as such by the Commissioner, and in which pharmacy there is in constant attendance a pharmacist, may purchase alcoholic liquors and may keep and sell the same on the prescription of any physician, and otherwise supply or sell alcoholic liquors for medicinal purposes as provided in § 518 of this title without a permit or license from the Commissioner.

38 Del. Laws, c. 18, §  17;  Code 1935, §  6146;  4 Del. C. 1953, §  517;  59 Del. Laws, c. 107, §  2172 Del. Laws, c. 486, §  9

§ 518. Physicians, dentists, veterinarians and medical institutions.

(a) A physician or dentist may purchase alcoholic liquors for professional purposes without a permit or license. A physician may administer alcoholic beverages to a bona fide patient in cases of actual need when in the judgment of the physician the use of alcoholic beverages is necessary.

(b) A veterinarian may purchase alcoholic liquors for professional purposes without a permit or license. A veterinarian may, in the course of the veterinarian’s practice, administer or cause to be administered alcoholic beverages to any animal under treatment.

(c) A person in charge of an institution regularly conducted as a hospital or sanitarium for the care of persons in ill health, or as a home devoted exclusively to the care of aged people, may purchase alcoholic beverages for professional purposes without the requirement of a permit or license. Such person may, after obtaining proper permission, administer alcoholic beverages to any bona fide patient of a medical institution who is in need of the same, either by way of external application or otherwise for emergency medical purposes.

38 Del. Laws, c. 18, §  17;  Code 1935, §  6146;  4 Del. C. 1953, §  518;  59 Del. Laws, c. 107, §  2284 Del. Laws, c. 42, § 43

§ 519. Hospital; retention and use.

Any person in charge of a hospital recognized by the Commissioner as such may purchase alcoholic liquors, and may keep and administer alcoholic liquors for purposes of compounding medicines or to use alcohol for purposes of sterilization without a permit or license.

38 Del. Laws, c. 18, §  17;  Code 1935, §  6146;  4 Del. C. 1953, §  519;  59 Del. Laws, c. 107, §  2372 Del. Laws, c. 486, §  9

§ 520. Clergymen; wine for sacramental purposes.

Any minister, priest, rabbi or clergyman of any established or recognized church or religious sect may purchase wine for sacramental purposes, and may keep and use wine for sacramental purposes, without a permit or license.

38 Del. Laws, c. 18, §  17;  Code 1935, §  6146;  4 Del. C. 1953, §  520;  59 Del. Laws, c. 107, §  24

§ 521. Temporary license to sell by the glass.

A temporary license to sell alcoholic liquor of 1 or more varieties, by the glass only, and for a period of not more than 3 months, may be granted by the Commissioner to any person to whom a biennial license may be issued under this chapter, but such temporary license shall not be renewed more than once during the same 12 months’ period.

38 Del. Laws, c. 18, §  25;  Code 1935, §  6154;  4 Del. C. 1953, §  521;  67 Del. Laws, c. 273, §  2572 Del. Laws, c. 486, §  9

§ 522. Application for license to purchase for resale.

(a) Any person proposing to purchase alcoholic liquor for resale shall make application to the Commissioner for license.

(b) Any individual 21 years of age or older may apply for a license permitting the purchase of alcoholic liquors for resale. Any partnership may apply for a license permitting the purchase of alcoholic liquors for resale if such application is approved by a majority of the partners and each of the partners is 21 years of age or older. A corporation may apply for a license permitting the purchase of alcoholic liquors for resale if all the officers and directors of the corporation making the application are 21 years of age or older, and no stockholder under the age of 21 years owns or controls, either directly or through a custodian, more than 25% of the outstanding shares of stock of the applicant corporation, with the further provision that no group of such minor stockholders and/or custodians may own or control in the aggregate, more than 45% of the stock of the applicant corporation.

(c) The application shall be made on a blank form furnished by the Commissioner and shall be signed by the applicant before two witnesses. The application shall give the name, age, occupation and residence of the applicant and the kind of license requested.

(d) The application furnished by the Commissioner shall contain a statement to the effect that the applicant will comply with this title and the rules of the Delaware Alcoholic Beverage Control Commissioner.

(e) The Commissioner shall require that the statement of the applicant and of the witnesses be made under oath or affirmation.

38 Del. Laws, c. 18, §  18;  Code 1935, §  6147;  4 Del. C. 1953, §  522;  57 Del. Laws, c. 418, §§  1, 259 Del. Laws, c. 107, §§  26-2860 Del. Laws, c. 242, §  167 Del. Laws, c. 109, §  1471 Del. Laws, c. 383, §  272 Del. Laws, c. 486, §  984 Del. Laws, c. 42, § 44

§ 523. Application by partnership or corporation; liability for fines or costs.

If a license to purchase for resale is to be used on behalf of a partnership or corporation, the application therefor shall be accompanied by a declaration to that effect signed by an authorized member of such partnership or an authorized officer of such corporation. In such case the partnership or corporation, or the directors and officers thereof shall be liable jointly and severally for any fine and costs to which the holder of the license is liable.

38 Del. Laws, c. 18, §  18;  Code 1935, §  6147;  4 Del. C. 1953, §  523; 

§ 524. Notice of application.

(a) An application for a new license to purchase for resale, for transfer of an existing license, or for a substantive change to a license or licensed premise shall be filed with the Commissioner’s office.

(b) Upon filing of an application for a new license to purchase for resale or for a substantive change to a license or licensed premise the applicant shall cause notice to be advertised in at least 2 different newspapers circulated in the community in which the applicant will operate if the application is approved for 3 issues. One of the newspapers must be a “local newspaper,” as determined by the Commissioner either through rules or on a case by case basis. If the newspaper is a daily newspaper, the first publication shall be made within 3 days of the filing of the application and the third publishing shall occur within 10 days of filing the application. If the newspaper is a weekly publication, the first publication shall be made within 8 days of filing the application and the third publishing shall occur within 22 days of filing the application.

(c) Within 3 days of filing of an application for a new license to purchase for resale or for a substantive change to a license or licensed premise a notice shall be mailed by certified mail or first class mail as evidenced by a certificate of mailing postage-pre-paid to the following entities, individuals or groups of individuals:

(1) Except as provided in paragraph (c)(2) of this section, all property owners within 200 feet from any point on the property boundary line of the premises to which the license is to apply;

(2) All property owners within 1,000 feet from any point on the property boundary line of the premises to which the license is to apply if the premises is located within 1/4 of a mile of a riverfront, beachfront or other open water, or if the applicant intends to include space for outside dining, outside entertainment or the outside service or consumption of alcoholic beverages;

(3) The governing body of any incorporated areas within 1 mile from any point on the property boundary line of the premises to which the license is to apply.

(d) The notices referred to in subsections (b) and (c) of this section shall provide such information as determined by the Commissioner either through duly adopted rules or on a case by case basis. The following notice will, in addition to the aforesaid Commissioner approved notice, satisfy this notice provision:

“[Name of applicant] has on [Date of application] applied with the Alcoholic Beverage Control (“Commissioner”) for [Nature of application] for a premises located at [Location of the premises, including street and city]. Persons who are against this application should provide written notice of their objections to the Commissioner. For the Commissioner to be required to hold a hearing to consider additional input from persons against the application, the Commissioner must receive one or more documents containing a total of at least 10 signatures of residents or property owners located within 1 mile of the premises or in any incorporated areas located within 1 mile of the premises. The protest(s) must be filed with the Alcoholic Beverage Control Commissioner at the 3rd Floor, Carvel State Office Building, 820 North French Street, Wilmington, DE 19801. The protest(s) must be received by the Commissioner’s office on or before [state a date at least 30 days after the application is filed]. Failure to file such a protest may result in the Commissioner considering the application without further notice, input or hearing. If you have questions regarding this matter please contact the Commissioner’s Office.”

(e) The term “substantive change” referenced in this section shall mean any of the following:

(1) Any permanent change that will increase the square footage of the licensed premises;

(2) Any temporary change that will last longer than 60 days and result in an increase of the square footage of the licensed premises;

(3) Any change that would require a variance of the Commissioner’s rules or suspension thereof and results in:

a. Live entertainment on a licensed patio;

b. External speakers or amplifiers on a licensed patio; or

c. Wet bar on a licensed patio;

(4) Any change in the floor plan of a restaurant licensee which would increase the number of bar seats or increase the area utilized for entertainment; or

(5) Any additional circumstance that the Commissioner determines is a substantive change.

(f)-(h) [Repealed.]

(i) Notwithstanding subsection (e) of this section or any other law, rule, or regulation to the contrary, substantive change does not mean any of the following:

(1) An expansion of outdoor seating for serving of food and drinks that as of March 31, 2022, was approved by the Commissioner.

(2) An expansion of outdoor seating for serving of food and drinks that meets all of the following requirements:

a. A plan approved by the appropriate political subdivision that does all of the following:

1. Considers local traffic patterns and parking capacity needs, but may extend the boundaries of seating beyond current property boundaries under the discretion of the appropriate political subdivision and applicable property owners on all local right of ways.

2. Does not intrude upon the State’s right of way, unless approved by the Delaware Department of Transportation in writing.

3. Maintains current access, unless approved by Delaware Department of Transportation in writing.

4. Maintains proper access to the property for all emergency services.

5. Complies with the Americans Disabilities Act [42 U.S.C. § 12101 et seq.].

6. Adheres to all local noise ordinances.

7. Allows for the proper control over the distribution of alcoholic beverages.

b. Approval by the Commissioner regarding the service of alcohol on premises.

c. Complies with the Delaware Food Code.

(j) Any plan approved by or submitted to the appropriate political subdivision and the Commissioner pursuant to subsection (i) of this section may allow for the service of alcoholic beverages without the requirement to serve food.

(k) Any plan submitted to the appropriate political subdivision and the Commissioner pursuant to subsection (i) of this section that meets all of the requirements of paragraph (i)(2) of this section should not be denied approval absent exceptional circumstances.

(l) Any political subdivision that revokes or modifies its approval for an expansion of outdoor seating for serving of food and drinks under subsection (i) of this section must notify the Commissioner within 30 days of such revocation or modification.

38 Del. Laws, c. 18, §  18;  Code 1935, §  6147;  43 Del. Laws, c. 275, §  144 Del. Laws, c. 205, §  146 Del. Laws, c. 222, §  1;  4 Del. C. 1953, §  524;  59 Del. Laws, c. 107, §§  29, 3067 Del. Laws, c. 118, §§  1, 270 Del. Laws, c. 186, §  171 Del. Laws, c. 435, §  172 Del. Laws, c. 221, §§  2-472 Del. Laws, c. 486, §  973 Del. Laws, c. 136, §  174 Del. Laws, c. 242, §  182 Del. Laws, c. 247, §§   3, 583 Del. Laws, c. 9, § 383 Del. Laws, c. 9, § 583 Del. Laws, c. 284, § 3

§ 525. Spirits, wine and beer tasting.

A license to permit spirits, wine and beer tasting may be granted by the Commissioner to any person holding a license under this title as a retailer. Spirits, wine and beer tasting may take place only in a separate portion of a licensee’s premises where alcoholic beverages are not sold. The separate portion of the premises shall be an area designated for spirits, wine and beer tasting by the Commissioner. No charge may be made for the spirits, wine and beer tasting.

65 Del. Laws, c. 283, §  270 Del. Laws, c. 353, §  272 Del. Laws, c. 486, §  9

§ 526. Direct purchasing of wine and beer.

(a) Notwithstanding any other provision in this title, a natural person who is a Delaware resident may purchase sparkling wine, still wine and beer that is not readily available to consumers throughout the State directly from a manufacturer or retailer of such beverages domiciled outside of Delaware provided that the following apply:

(1) The resident is 21 years of age or older;

(2) The sparkling wine, still wine or beer is for the resident’s personal consumption and not for resale;

(3) The total amount of sparkling wine or still wine purchased in 1 calendar year by the resident may not exceed 60 750-milliliter bottles per calendar year;

(4) The total amount of beer purchased in 1 calendar year by the resident may not exceed 6 cases of 12 ounce bottles or the equivalent;

(5) The manufacturer or retailer engaging in such direct sales holds a valid manufacturer’s or retailer’s license issued by the state of its domicile;

(6) The package in which the sparkling wine, still wine or beer is shipped is prominently labeled as containing alcoholic beverages;

(7) The package in which such sparkling wine, still wine or beer is shipped is received by a person 21 years of age or older;

(8) The package in which such sparkling wine, still wine or beer is shipped contains an invoice indicating the date of the shipment, providing a full and complete description of all items included in the shipment, and stating the price thereof.

(b) A person who is licensed in its state of domicile as an alcoholic beverage manufacturer, importer, wholesaler or licensee and who may legally ship alcoholic beverages out of state may apply to the Commissioner for a direct shipper license. Only a person holding a direct shipper license may accept an order for the purchase of sparkling wine, still wine and/or beer from a natural person who is a Delaware resident. The license fee for a direct shipper shall be determined by the Commissioner. The amount of the fee must approximate and reasonably reflect the costs necessary to defray the expenses of the Commissioner’s service and activities in connection with this section.

(c) All persons licensed under this section to ship wine and beer shall pay a tax on all wine and beer sold to residents in this State at the rates set forth in § 581(d) of this title. Taxes levied by § 581(d) of this title shall be collected, as far as practical, from the direct shipper in the manner set forth by the Commissioner. If for any reason the direct shipper who first handles the taxable beer and wine to be shipped to Delaware has escaped payment of taxes, those taxes shall be collected from any person in whose hands the taxable beer and wine is found. In no case, however, shall there be a duplication.

(d) Direct shippers shall file invoices for each shipment with the Commissioner showing the retail price of the product, the quantity shipped, the customer’s name and address and the tax collected and paid to the State. Such filings shall be quarterly and arrive at the Commissioner no later than the 10th of March, June, September and December. Direct shippers shall maintain the records for at least 3 years.

(e) Under no circumstance may the wine or beer be shipped directly to the resident. Direct shippers must deliver the wine and beer by common carrier to a Delaware wholesaler, who will in turn deliver the shipment to a holder of a Delaware off-premises retail license. The retail licensee must then deliver the wine or beer to the resident in a manner consistent with this title and as set forth by Commissioner rules. The direct shipper shall pay a handling fee in the amount of $4 dollars per case or partial case of wine and $2 dollars per case or partial case of beer to the wholesaler who receives the shipment on behalf of the Delaware resident. The wholesaler shall then remit to the retail licensee one-half of the total handling fee.

72 Del. Laws, c. 230, §  172 Del. Laws, c. 486, §  9

§ 527. Substantive changes to licenses or licensed property [Repealed].

Repealed by 73 Del. Laws, c. 136, § 2, eff. July 9, 2001.