4 Del. Admin. Code — Alcoholic Beverages and Marijuana

100 - 1600 Department of State

100 Alcoholic Beverage Control Commissioner

101 (Formerly Rule 74) A Rule Pertaining to the Transcription of Testimony Taken Before the Delaware Alcoholic Beverage Control Commissioner

4 Del. Admin. Code § 101-1.0 Purpose

The purpose of this rule is to ensure that an accurate and complete record is kept of proceedings before the Commissioner and that transcription of the record complies with the Administrative Procedures Act and Liquor Control Act and is prepared in a timely manner for the purpose of appeal.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 101-2.0 Applicability

This rule shall apply to all appeals, including extraordinary writs, contesting any rule or regulation adopted by the Commissioner. It shall also apply to all appeals of any decision, including extraordinary writs, affecting the denial or issuance of an alcoholic liquor license and the cancellation, suspension, or other administrative sanction imposed on a licensee.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 101-3.0 Procedure

3.1 Immediately upon filing an appeal of any matter heard before the Commissioner, the appellant shall notify the Commissioner in writing of the need for a transcript.

3.2 The Commissioner’s staff shall make arrangements for the preparation of a transcript. The appellant shall pay the Commissioner's court reporter directly for the expense of transcribing the record and the cost of four (4) copies.

3.3 Upon payment, the court reporter shall forward the original transcript and four (4) copies to the Commissioner.

3.4 The Commissioner shall certify the transcript and file the original and one (1) copy with the court or the original and two copies with the Appeals Commission, as applicable. One (1) copy shall be retained by the Commissioner and placed in the licensee's file.

3.5 Failure by the appellant to pay the proper remittance directly to the court reporter will result in the Commissioner being unable to certify and file the transcript with the court or the Appeals Commission.

3.6 In summary, the cost of any transcript of record required by the Superior Court, the Appeals Commission or any other court on review of a decision of the Commissioner shall be borne by the party taking the appeal to the Superior Court or any other court. Such appellant shall be responsible for the costs of any transcript(s) required by the court(s), plus the cost of a copy for the licensee's file.

History

• 19 DE Reg. 775 (02/01/16)

102 (Formerly Rule 53) Witnesses and Evidence

4 Del. Admin. Code § 102 (Formerly Rule 53) Witnesses and Evidence

All witnesses shall be sworn in all proceedings hereunder. The rules of evidence applicable to the Superior Court of the State of Delaware shall be followed insofar as practicable, provided, however, that evidence will be considered by the Commissioner which, in the Commissioner's opinion, possesses any probative value commonly accepted by reasonably prudent persons in the conduct of their affairs. The Commissioner may, in the Commissioner's discretion, disregard the customary rules of evidence and legal procedures.

History

• 19 DE Reg. 775 (02/01/16)

103 (Formerly Rule 12) State of Emergency

4 Del. Admin. Code § 103 (Formerly Rule 12) State of Emergency

Whenever, pursuant to the Constitution and laws of the State of Delaware, the Governor or Acting Governor of this State shall declare a state of emergency, call out the organized militia or any portion or individual thereof to execute or insure obedience to law, or declare a state of martial law, in this State, or any section thereof, all licensees licensed under the Liquor Control Act of the State of Delaware and the Rules of this Commissioner, shall upon notice from the Commissioner, announced publicly or delivered personally, be required to suspend further business under the licenses issued by the Commissioner until such time as the Commissioner shall determine and so inform said licensees that the proclamation of emergency or crisis as issued by the Governor or Acting Governor has been terminated, provided that the Commissioner shall specify the geographical limit in this State or any section thereof within which area said licensee shall be suspended.

History

• 19 DE Reg. 775 (02/01/16)

104 (Formerly Rule 69) Severability

4 Del. Admin. Code § 104 (Formerly Rule 69) Severability

If any rule of this Commissioner shall be declared invalid by a court of competent jurisdiction, all remaining rules shall remain valid and in full force and effect. If a portion of any rule of the Commissioner shall be declared invalid, the remaining portion of said rule shall remain valid and in full force and effect. This rule shall apply to all rules of the Commissioner, regardless of their dates of enactment.

History

• 19 DE Reg. 775 (02/01/16)

200 Definitions

201 (Formerly Rule 56) As Amended A Rule Defining Cash

4 Del. Admin. Code § 201-1.0 Cash Sales

1.1 No sale of alcoholic liquors by any licensee of this Commissioner shall be made except for cash.

1.2 For the purpose of this rule, the word "cash" shall mean:

1.2.1 In the case of a Package Store, Restaurant-OFF License, Hotel-OFF License, Taproom-OFF License and Club-OFF License, payment in currency, a valid check of a banking institution or nationally known or local bank credit or debit cards, before any alcoholic liquor is permitted to leave the premises;

1.2.2 In the case of an on-premises licensee other than Hotels, Clubs or Caterers, payment upon the completion of service and before the patron leaves the premises by check, currency or nationally known or local bank credit or debit cards; except in cases where the licensee has its own credit card system and the charge of alcoholic liquors has been in conjunction with the service of full course meals to each person being served and/or consuming the alcoholic liquors, this may be accepted as cash;

1.2.3 In the case of a Hotel, payment upon completion of stay or service by currency, valid check or by nationally known or local bank credit or debit cards. In the case where a Hotel has its own credit system, this may be accepted as cash;

1.2.4 In the case of a Caterer, payment upon the completion of service and before the patron leaves the premises by check, currency or nationally known or local credit or debit cards; this may be accepted as cash;

1.2.5 In the case of Clubs where provision is made in their Rules or By-Laws for members to have charge accounts, payments by currency or check within 60 days with all accounts of the previous month being settled in full by the last day of the following month.

History

• 19 DE Reg. 775 (02/01/16)

202 (Formerly Rule 19) A Rule Defining the Words Hotel, Motel, Restaurant and Dinner Theater

4 Del. Admin. Code § 202-1.0 Purpose and Scope

This Rule supplements the definition of Hotel, Motel, Dinner Theater and Restaurant contained in the Liquor Control Act, 4 Delaware Code, Section 101 et seq.

History

• 27 DE Reg. 186 (09/01/23)
• 27 DE Reg. 186 (09/01/23)
• 19 DE Reg. 858 (03/01/16)
• 27 DE Reg. 186 (09/01/23)
• 27 DE Reg. 186 (09/01/23)
• 19 DE Reg. 775 (02/01/16)
• 27 DE Reg. 186 (09/01/23)

4 Del. Admin. Code § 202-2.0 Hotel and Motel

2.1 “Hotel” means any establishment provided with special space and accommodation, where, in consideration of payment, food and lodging are habitually furnished to travelers.

2.2 "Motel" means the same as the word "hotel" except that a motel may consist of 1 or more buildings so long as it otherwise qualifies with the requirements set forth in the above definition of "hotel". The provisions of the Liquor Control Act shall likewise apply to applications to sell alcoholic liquor in a motel.

2.3 There shall also be adequate and sanitary kitchen and dining room equipment and an approved storage space where alcoholic liquor may be kept. A hotel and motel shall be advertised as such. A State or County license to operate the premises as a hotel and motel shall also be issued and in possession of the applicant prior to the issuance of the license and at all times thereafter during the term of the license.

History

• 27 DE Reg. 186 (09/01/23)
• 27 DE Reg. 186 (09/01/23)
• 19 DE Reg. 858 (03/01/16)
• 27 DE Reg. 186 (09/01/23)
• 27 DE Reg. 186 (09/01/23)
• 19 DE Reg. 775 (02/01/16)
• 27 DE Reg. 186 (09/01/23)

4 Del. Admin. Code § 202-3.0 Restaurant

3.1 “Restaurant” means any establishment which is regularly used and kept open principally for the purpose of serving complete meals to persons for consideration, and which has seating at tables for 12 or more persons and suitable kitchen facilities connected therewith for cooking an assortment of foods under the charge of a chef or cook.

3.2 Additional requirements to operate as a restaurant are:

3.2.1 Seats at a bar shall not exceed 1/3 of the dining seats.

3.2.2 The service of only such food as sandwiches or salads shall not be deemed to be the service of “meals”.

3.2.3 Complete meals shall be available at all hours that any restaurant is open for the sale of alcoholic liquor.

3.2.4 There shall also be adequate and sanitary kitchen and dining room equipment, and an approved storage space where alcoholic liquor may be kept.

3.2.5 A State or County license to operate the premises as a "restaurant" shall also be issued and in the possession of the applicant prior to the issuance of the license and at all times thereafter during the term of the license.

History

• 27 DE Reg. 186 (09/01/23)
• 27 DE Reg. 186 (09/01/23)
• 19 DE Reg. 858 (03/01/16)
• 27 DE Reg. 186 (09/01/23)
• 27 DE Reg. 186 (09/01/23)
• 19 DE Reg. 775 (02/01/16)
• 27 DE Reg. 186 (09/01/23)

4 Del. Admin. Code § 202-4.0 Complete Meals - Hotel, Motel, and Restaurant

4.1 The sale of alcoholic beverages by a hotel, motel, or restaurant shall be considered as a supplement to the original purpose of providing food and lodging and furnishing food, respectively.

4.2 "Complete Meals" shall be considered to mean the normal meals provided at breakfast, lunch and dinner, offered from menus consisting of, but not limited to: breakfast foods, soups, appetizers, entrees, salads, vegetables, desserts, and beverages other than alcoholic.

4.3 Restaurants licensed to sell "Beer Only" and "Wine Only" shall be required to furnish only 2 out of the 4 following accompaniments to meals: appetizers, soups, salads and vegetables.

History

• 27 DE Reg. 186 (09/01/23)
• 27 DE Reg. 186 (09/01/23)
• 19 DE Reg. 858 (03/01/16)
• 27 DE Reg. 186 (09/01/23)
• 27 DE Reg. 186 (09/01/23)
• 19 DE Reg. 775 (02/01/16)
• 27 DE Reg. 186 (09/01/23)

4 Del. Admin. Code § 202-5.0 Dinner Theater

5.1 The dinner theater shall serve at least 1 meal consisting of, but not limited to, appetizers, entrees, salads, vegetables, desserts and beverages other than alcoholic. There shall also be an adequate and sanitary kitchen and dining equipment with an approved storage space where alcoholic liquor may be kept.

5.2 The dinner theater licensee shall supply to the Commissioner the hours during which the licensee shall permit consumption of alcoholic beverages on its premises. In no event shall the dinner theater licensee allow consumption of alcoholic liquors on its premises at times other than in conjunction with meals served at the theatrical performances and during intermissions or at any other time which is not permitted by the Delaware Liquor Control Act. The hours of consumption of alcoholic liquors shall first be approved by the Commissioner before the issuance of a license.

5.3 Persons not of sufficient age to consume alcoholic liquors shall be allowed and permitted to be on the licensed premises of the dinner theater so long as all of the other provisions of the Liquor Control Act and Rules of this Commissioner are being complied with.

History

• 27 DE Reg. 186 (09/01/23)
• 27 DE Reg. 186 (09/01/23)
• 19 DE Reg. 858 (03/01/16)
• 27 DE Reg. 186 (09/01/23)
• 27 DE Reg. 186 (09/01/23)
• 19 DE Reg. 775 (02/01/16)
• 27 DE Reg. 186 (09/01/23)

203 (Formerly Rule 36) Delivery, Sale and Consumption of Alcoholic Liquors for On-Premises Consumption

4 Del. Admin. Code § 203-1.0 Purpose and Scope

This rule defines the term "Delivery", "Sale", "Service" and "Consumption" of alcoholic liquors and prescribes the hours of the day when alcoholic liquors may be delivered, sold and consumed, under the provisions of 4 Del.C. §709.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 203-2.0 Definitions

"Consumption" of alcoholic liquors means the act of drinking or eating alcoholic beverages, includes possession of an alcoholic beverage with the present ability to drink or eat it.

"Delivery" of alcoholic liquors means the transfer of possession or custody of alcoholic liquors from 1 person to another.

"Sale" of alcoholic liquors means solicit or receive an order for; keep or expose for sale, deliver for value or in any other way than purely gratuitously.

"Service" of alcoholic liquors means the delivery of alcoholic beverages.

"Time of Day" means prevailing local time in the State of Delaware as fixed by Executive Order or pursuant to the Uniform Time Act of 1966, 15 U.S.C. §260, et seq.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 203-3.0 Prohibited Acts

No person licensed by the Commissioner shall sell, serve or deliver alcoholic liquors on, in or from an establishment licensed for On-premises consumption between the hours of 1:00 A.M. and 9:00 A.M. No alcoholic liquors shall be consumed on licensed premises between the hours of 2:00 A.M. and 9:00 A.M.

History

• 19 DE Reg. 775 (02/01/16)

300 Owner and Financial Interests; Trade Names

301 (Formerly Rule 3) A Rule Requiring Prior Approval by the Commissioner of Changes in Ownership, Officers, or Directors, Financial Interest, or Lease

4 Del. Admin. Code § 301 (Formerly Rule 3) A Rule Requiring Prior Approval by the Commissioner of Changes in Ownership, Officers, or Directors, Financial Interest, or Lease

As authorized by law, the Commissioner may refuse approval of changes in the ownership, officers or directors, financial interest, or lease in connection with any license. For this purpose, no such change shall be implemented until reported to and approved by the Commissioner in the following manner:

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 301-1.0 Changes of ownership (no publication is required)

1.1 Entire Change:

1.1.1 Whenever the entire ownership of a license of a licensee is being changed, the following shall be filed with the Commissioner on behalf of the new owner or owners:

1.1.1.1 An application.

1.1.1.2 A financial statement of the proposed licensee.

1.1.1.3 Personal financial statements of all individuals, partners, or stockholders holding at least 10 percent or more of the corporate stock.

1.1.1.4 Notarized statements in the form prepared by the Commissioner, Form (A-2) signed by all individuals who after the change is made, will have an ownership interest directly or otherwise with the criminal record of each. However, if the corporation or club is listed on a stock exchange or traded over the counter, or is the holder of a multiple activity club, the criminal history of individual stockholders, officers or directors shall not be submitted, but instead an affidavit completed by each giving permission to the Commissioner to request the criminal history from the proper police department.

1.1.1.5 Copy of the agreement of terms of the sale or other exchange of financial interest, including stock distribution.

1.1.1.6 Deposit of $1,000 application process fee [4 Del.C. §554(x)].

1.1.1.7 Minutes of meeting establishing officers and/or directors, copies of stock certificates and/or any other corporate documentary information as the Commissioner deems necessary.

1.1.1.8 Certification from the State Tax Division that all obligations regarding the applicant are current.

1.1.1.9 Copy of certificate of incorporation, if applying as a corporation, or proof of partnership agreement explaining interest and profit/loss distribution.

1.1.1.10 Letter of approval from the licensee from whom the license is to be transferred.

1.1.1.11 Lease, if the premises is not owned by the applicant; or copy of deed if applicant owns the premises.

1.1.1.12 Floor plan containing elevation, including dimensions of all rooms and seating arrangement of entire premises.

1.2 Partial Change.

1.2.1 Whenever only part of the ownership of a license or licensee is being changed, the following shall be filed with the Commissioner on behalf of the new owner or owners.

1.2.1.1 An application.

1.2.1.2 A financial statement of the licensee as of the time after the change is made.

1.2.1.3 Personal financial statement of the new applicant or partners.

1.2.1.4 Notarized statements in the form prepared by the Commissioner (Form A-2) signed by all individuals who, after the change is made, will have an ownership interest, directly or otherwise, including criminal record.

1.2.1.5 Copy of the agreement of terms of the sale or other exchange of financial interest, including stock distribution and consideration given.

1.2.1.6 If a corporation or club, a statement consenting to the change in ownership signed and sealed by the president and secretary currently approved by the Commissioner. A partnership shall submit copy of change in original agreement.

1.2.1.7 Deposit of $1,000 application process fee [4 Del.C. §554(x)], but this fee shall not apply to applications for change of officers, directors or stockholders of a corporate licensee if there is no change in the majority of stockholders or majority of directors.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 301-2.0 Change of ownership of corporation or club solely through the sale of shares of stock by stockholders

When a corporation or club is involved and the change of ownership is being made solely through the sale or exchange of the shares of stock by stockholders, the corporation or club and the stockholders shall comply with subsection 1.2 above and file a statement consenting to the change in ownership signed and sealed by the president and secretary currently approved by the Commissioner.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 301-3.0 Changes in officers and directors of a corporation or club when sales of corporate stock are not involved

Persons elected as officers and directors shall each submit to the Commissioner, within thirty (30) days of the election, a notarized statement in the form prepared by the Commissioner (Form A-2), and the corporation or club to which they have been elected shall submit in writing to the Commissioner within seven (7) days after the election the names, resident addresses, and offices held of the new officers and directors. If the Commissioner desires further documentation, the licensee may be required to furnish such other records or statements requested by the Commissioner. Any new officer or director is not qualified to act as such in matters pertaining to the Rules of this Commissioner and the Liquor Control Act until approved by this Commissioner.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 301-4.0 Changes in Financial Interest

No persons shall obtain a financial interest of any kind, other than as owner or stockholder or club member reported pursuant to this rule, in a license or license holder without previously submitting full details to the Commissioner; provided, however, that such requirement shall not be construed to apply to loans made to a licensee or a license holder which do not involve repayment based on the volume of business or a percentage of profits of the licensee or license holder.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 301-5.0 Changes in Lease

No change shall be made in a lease as to the parties, as to any of its terms or conditions, or to create or modify a rental based upon the license holder's volume of business or profits without first being submitted to the Commissioner, except that any change in the amount of rent (when there is no change in the method of computing rent) need not be submitted to the Commissioner.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 301-6.0 Exceptions

6.1 The requirements of this Rule shall not apply to corporations or clubs which are listed on a recognized stock exchange or have stock which is traded over-the-counter, unless any such corporation or club changes all of its stock ownership. However, all corporations and clubs which are listed on a recognized stock exchange or have stock which is traded over-the-counter shall be required to submit an A-2 form and affidavit as provided in subsection 1.1.1.4 of this Rule on behalf of the corporate or club officer responsible for the operation of the alcoholic beverage service for which the license was procured. Additionally, a list of all officers and directors must be submitted at each license renewal.

6.2 If a corporation or club not excluded under subsection 6.1 of this rule changes any class of its stock ownership by more than 25 percent during the effective year of the license as a result by the acquisition of stock by new persons, then all of the applicable requirements of this Rule shall apply. However, if a corporation or club, not excluded under subsection 6.1 of this rule, changes any class of stock ownership by 25 percent or less during the effective year of the license as a result of the acquisition of stock by new persons, the only requirements are notification of the stock change, which shall be reported by the corporation or club in writing to the Commissioner within seven (7) days after such stock transfer together with a copy of the terms of the sale or other exchange of financial interest, including stock distribution and consideration given, and submission within thirty (30) days thereafter by each new stockholder of the notarized statement in the form prepared by the Commissioner (Form A-2) and copies of the stock certificates.

6.3 If one or more stockholders of a corporation or club, not excluded under subsection 6.1, transfers himself of all or any part of his stock ownership back to the corporation or to any of the other Commissioner approved stockholders, the corporation or club shall notify the Commissioner of the stock change within seven (7) days and shall submit a copy of the terms of the agreement of sale or transfer including stock distribution and consideration given along with copies of stock certificates.

6.4 The requirements of this Rule shall not apply to holders of multiple activity club licenses. However, all multiple activity clubs shall be required to submit an A-2 form and accompanying affidavit as provided in. subsection 1.1.1.4 of the Rule on behalf of the club officer responsible for the operation of the alcoholic beverage service for which the license was procured. Additionally, a list of all officers and directors must be submitted at each license renewal.

6.5 If the license is held by tenants by the entirety and one spouse dies, the surviving spouse need not comply with the above provision of subsection 1.2 of this Rule but shall make request to the Commissioner for change in the license for its issuance to the survivor and at that time submit a death certificate.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 301-7.0 Arrests and/or Convictions

Any arrest and/or conviction of an approved licensee, member of a club, officer, director or stockholder must be submitted to the Commissioner within seven (7) days indicating the date, charge and disposition.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 301-8.0 Commissioner Approval or Disapproval

The Commissioner may disapprove for cause as defined, but not limited to 4 Del.C. §543 (a) through (f) any new individuals, officers, directors, partners, stockholders, leases, or debts in connection with a license. All submissions made to the Commissioner in compliance with this Rule shall be approved or disapproved in writing mailed to the license holder or applicant making the submission within sixty (60) days after they are received by the Commissioner.

History

• 19 DE Reg. 775 (02/01/16)

302 (Formerly Rule 49) A Rule Requiring a Lease to be Filed with the Commissioner

4 Del. Admin. Code § 302 (Formerly Rule 49) A Rule Requiring a Lease to be Filed with the Commissioner

Each application for a license for the sale of beer, wine, and spirits must be accompanied by a lease for the premises, unless owned by the applicant, which must provide landlord's expressed permission for the sale of alcoholic liquors on the premises. In the event that a final order from a court of competent jurisdiction provides for possession of the premises to be awarded to the landlord, the Commissioner may revoke the license fourteen (14) days after a proposed revocation order is sent to the licensee at the last address provided to the Commissioner.

History

• 19 DE Reg. 775 (02/01/16)

303 (Formerly Rule 44) A Rule Governing Financial Interests in Various Licensees

4 Del. Admin. Code § 303 (Formerly Rule 44) A Rule Governing Financial Interests in Various Licensees

The terms "importer," "manufacturer," and "retailer" as used in this rule shall include (in addition to the definitions given in 4 Del.C. §101) all persons with an interest in the business of importing, manufacturing or retailing, whether as a sole proprietor thereof, a partner, a director or officer or stockholder or member of a corporation, or as an employee of any such business.

No manufacturer or importer of alcoholic liquor shall have any financial interest, direct or indirect, in any business holding a license for the retail sale of alcoholic liquor.

No manufacturer or retailer of alcoholic liquor shall have any financial interest, direct or indirect, in any business holding a license for importing alcoholic liquor.

Nothing contained in this Rule shall prohibit any person from owning qualifying or non-income producing shares held as a condition of membership in any non-profit social organization or bonds or debentures issued by such organization to the members thereof.

History

• 19 DE Reg. 775 (02/01/16)

304 (Formerly Rule 50) A Rule Regarding Approval of Trade Names

4 Del. Admin. Code § 304 (Formerly Rule 50) A Rule Regarding Approval of Trade Names

No licensee shall use or operate under any trade name unless approved by the Commissioner.

History

• 19 DE Reg. 775 (02/01/16)

400 Taxation

401 (Formerly Rule 8) A Rule Governing Taxes Paid on Wine, Cider, Spirits, and Beer Entering the State of Delaware

4 Del. Admin. Code § 401-1.0 Definitions

“Commissioner” means the Delaware Alcoholic Beverage Control Commissioner or Designee, the Division of Revenue.

“Importer” means wholesaler.

“Port of Entry” means the initial place, airport, common carrier terminal, or supply point for final distribution and delivery to the individual's home within Delaware.

“Purchases” means when the merchandise has been unloaded on the premises of the licensee and receipt acknowledged by signing the way bill.

“Wine, Cider, Spirits, Beer” means all alcoholic liquor to include bond alcohol as well as non-bond alcohol.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 401-2.0 Reporting Procedures for the Shipment of Wine, Cider, Spirits, and Beer into the State of Delaware

2.1 Licensed Importers:

2.1.1 Each licensed importer, when placing an order with a supplier, shall mail or electronically transmit directly to the supplier a true copy of the numbered purchase order showing the quantity, variety and size of container for each alcoholic liquor ordered. These purchase orders are to be provided on demand when requested by the Commissioner.

2.1.2 Each licensed importer, shall record for the Commissioner by the close of business on the last calendar day of the month all purchases of wines, cider, spirits, and beer. This report shall show the importer purchase order number, supplier invoice number, amount of cases, exact gallonage for wine, cider, and spirits, and exact barrelage for beer. Each page shall be sub-totaled, except the last page, which shall show a grand total. This report shall be submitted to the Commissioner by the last business day following the last calendar day of the reporting month, except for the month of May. The May report will be due by the 15th of June.

2.1.3 If there is a variance between the supplier sales report in 2.2.1 below and the importer purchases report in 2.1.2 above, a full explanation will be required from both the supplier and the importer and a fine can be imposed on that supplier and/or importer.

2.2 Licensed out-of-state suppliers:

2.2.1 Each licensed supplier shall record for the Commissioner by the close of business on the last calendar day of each month all shipments of wine, cider, spirits, and beer into Delaware. This report shall be submitted to the Commissioner by the fifteenth day following the last calendar day of the reporting month. This report shall show the supplier invoice number, the importer purchase order number, date shipment was made or sent, number of cases and/or barrels and total amount in gallons or in barrelage, or both. This report shall have attached any credit invoices and/or memos issued for returns or transfers relating to the Delaware importer for that month. This information must be in the same form as stated above in this paragraph. A fine can be imposed on that supplier for failure to send any credit invoices and/or memos. If there were not any shipments made to Delaware, then the report must state "NO SHIPMENTS FOR THE MONTH OF". If the supplier does not send the monthly report, a fine can be imposed by the Commissioner on that supplier. If the purchase order number does not appear on the report or correspond with the importer purchase order number, then a fine can be imposed on that supplier and/or the importer.

2.2.2 Although it is not required that sales invoices be sent with the supplier's monthly report, sales invoices are to be provided on demand when requested by the Commissioner.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 401-3.0 Procedures for Tax Payments and Tax Credits

3.1 Tax Payments Due From Importers:

3.1.1 Tax due the state of Delaware on the purchases reported in subsection 2.1.2 above, shall be verified, computed, and paid by cash, money order, or check by the last business day of the calendar month in which it is required to be reported except for the month of May. The May tax payment must be paid by the fifteenth day of June, and if the date falls on a Saturday or Sunday, the next business day of the calendar month.

3.1.2 Any beer, spirits, wines or cider on which the Delaware tax has not been paid in accordance with this rule shall be seized by DATE.

3.2 Tax Credits:

3.2.1 Tax credits for transfers, returns, breakage, and sales to federal instrumentalities must be taken in the month that they occur. Claims for tax credits must be presented to the Commissioner on "DELAWARE IMPORTERS TAX CREDIT REPORT", and must include copies of invoices or other documentation verifying each claimed credit. These reports must be filed with the "CERTIFIED STATEMENT OF WINES, CIDER, SPIRITS, AND BEER PURCHASES REPORT" due on the last business day following the last calendar day of the reporting month. No pre-approval is required in order to take a credit against taxes due, provided that the importer fully complies with the above reporting requirements and stipulations set forth below:

3.2.1.1 Transfers and Returns: The Delaware importer will list each transfer/return on the monthly Tax Credit Report and attach an invoice showing the brand, size, type and the amount of alcoholic liquor shipped in gallons or barrelage.

3.2.1.2 Breakage: Tax credit on breakage requires a verification memorandum from the importer to the common carrier, which must be submitted with the monthly Tax Credit Report. No credit will be allowed on less than full case lots; and, should continuous breakage occur, a penalty equal to 150 percent of the importers cost shall be levied against the supplier. No tax credit shall be allowed for post delivery breakage.

3.2.1.3 Sales of Beer to Federal Instrumentalities: The Delaware importer will list all sales of beer to an instrumentality of the Armed Forces of the United States on the monthly Tax Credit Report. Copies of invoices must be attached showing the brand, size, type and the amount in gallons or barrelage of beer shipped.

3.2.2 All tax credits are subject to verification by the Commissioner, and will be disallowed if the proper documentation is not submitted with the monthly "DELAWARE IMPORTERS TAX CREDIT REPORT".

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 401-4.0 A Guideline for Metric Gallonage Conversion Tables

4.1 To ensure that all liquor excise taxes are determined in a uniform manner, the use of a standard conversion table for commonly used container sizes of spirits and wines based upon the conversion factors used by the U.S. Department of Treasury is to be used.

4.2 The official factor for spirits is one liter = .26417 gallons.

4.3 The Delaware tax in 4 Del.C. §581, for beer provides a per barrel (31 U.S. gallons) tax computation.

History

• 19 DE Reg. 775 (02/01/16)

402 (Formerly Rule 76) A Rule Governing Taxes Paid On Spirits

4 Del. Admin. Code § 402-1.0 Tax Pay Rates

1.1 For the purpose of fulfilling the mandate of the General Assembly in Section 5 of the Act set forth in 1996 Delaware Laws Ch. 488, entitled “An Act To Amend Chapter 5, Title 4 Of The Delaware Code Relating To Taxes On Spirits,” the following is provided:

1.1.1 the tax pay rates established in 1996 Delaware Laws Ch. 488, Sections 1 and 2 shall not expire on December 31, 1999 and shall continue to remain in effect:

1.1.2 those tax pay rates, now codified at 4 Del.C. §581(d)(4) and (d)(5), shall remain as specified by statute and as restated herein:

1.1.2.1 For each gallon of spirits containing 25 percent or less of ethyl alcohol by volume, $2.50.

1.1.2.2 For each gallon of spirits containing more than 25 percent of ethyl alcohol by volume, $3.75.

History

• 19 DE Reg. 775 (02/01/16)

500 Initial and Temporary Licensure

501 (Formerly Rule 4) A Rule Requiring Certain Information by Persons Desiring to Make Application for a License to Sell Alcoholic Liquor

4 Del. Admin. Code § 501 (Formerly Rule 4) A Rule Requiring Certain Information by Persons Desiring to Make Application for a License to Sell Alcoholic Liquor

Any person proposing to make application for a license to sell alcoholic liquor shall first obtain from and submit to the Commissioner a form requesting such permission together with a certification from the appropriate governmental authorities that the location and building for which a license will be applied conforms with zoning ordinances allowing the sale of alcoholic liquor and with building ordinances.

History

• 19 DE Reg. 775 (02/01/16)

502 (Formerly Rule 41) A Rule Requiring an Additional Deposit on Certain Applications for a License

4 Del. Admin. Code § 502 (Formerly Rule 41) A Rule Requiring an Additional Deposit on Certain Applications for a License

Any applicant for a license that requests a continuance for a hearing shall pay all costs necessitated by the continuance.

History

• 19 DE Reg. 775 (02/01/16)

503 (Formerly Rule 21) A Rule Providing Specifications For All On-Premises Establishments

4 Del. Admin. Code § 503-1.0 Approval of Conditions of Premises

Before issuance of a license or renewal of license to sell alcoholic liquor in an on-premises establishment, the premises must be approved as to condition by the Commissioner through an inspection by the DATE or employees of the Commissioner's staff.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 503-2.0 The following general rules shall govern with respect to on-premises establishments:

2.1 Each dispenser of alcoholic beverages shall bear the name of the product dispensed therefrom.

2.2 On-premises establishments shall maintain standards consistent with the requirements of the Division of Public Health or the appropriate local agency having similar jurisdiction in the service of drinks and food, if applicable, including normal standards of cleanliness and shall have proper facilities for the cleansing of reusable utensils, glasses, dishes, etc.

2.3 An area where alcoholic liquor is sold, served, dispensed or consumed shall be visible from the outside and shall be sufficiently lighted so as to permit the viewing of persons on the premise at all time that patrons and/or employees are on the premises, whether during or outside of normal operating hours.

2.3.1 The provisions of this section shall not apply to the rooms of a hotel.

2.3.2 The Commissioner may, for cause and upon request, grant a variance to the requirement.

2.4 If other parts of the building in which an on-premises establishment is located are occupied as living quarters, there shall be no doors communicating with the licensed areas unless authorized in writing by the Commissioner:

2.5 Adequate, separate and secure storage facilities approved by the Commissioner must be available on the licensed premises for the storage of all alcoholic liquors for establishments operating during prohibited hours of sale.

2.6 The approved hours and days of operation must be posted in a conspicuous place in order that all customers may be properly informed.

2.7 Decals purchased through the Commissioner, stating the legal drinking age in the state and warning pregnant women of the risk of birth defects from the consumption of alcoholic beverages must be conspicuously displayed at each entrance to the premises.

2.8 The license for the current year must be posted in a conspicuous place on the licensed premises.

2.9 (Formerly Rule 22) All alcoholic liquors shall, within one-half hour after legal sales of alcoholic liquors cease, be placed in adequate storage facilities out of reach of patrons.

History

• 19 DE Reg. 775 (02/01/16)

504 (Formerly Rule 11) A Rule Providing Specifications for Stores and Off-Premises

4 Del. Admin. Code § 504-1.0 Approval of Conditions of Premises

1.1 Before issuance of a license to sell alcoholic liquors in a store, the premises must be approved as to conditions by the Commissioner through an inspection by the DATE or employees of the Commissioner staff.

1.1.1 All parts of the premises must be kept clean. Cellars, basements and yards must be neat and free of rubbish.

1.1.2 If other parts of a building in which a store is located are occupied as living quarters, there shall be no doors communicating with the store unless authorized in writing by the Commissioner.

1.1.3 All parts of the rooms where alcoholic liquor is sold shall be visible from the street unless a variance is granted by the Commissioner in writing.

1.1.4 Licensee shall operate a minimum of ten (10) hours per day, except Sundays, unless a variance is granted in writing by the Commissioner.

1.1.5 The approved hours and days of operation must be posted in a conspicuous place in order that all customers may be properly informed.

1.1.6 Decals, purchased through the Commissioner, stating the legal drinking age in the State and another warning pregnant women of the risk of birth defects from the consumption of alcoholic beverages must be conspicuously-displayed at each entrance to the premises.

History

• 19 DE Reg. 775 (02/01/16)

505 (Formerly Rule 60) A Rule Concerning Issuance of Temporary Licenses

4 Del. Admin. Code § 505-1.0 Temporary Licenses

1.1 Temporary licenses may be issued to applicants for an on-premises license upon submission of properly filed application forms.

1.2 Temporary licensees shall be required to make all purchases of alcoholic liquor on a C.O.D. basis.

1.3 The denial of a permanent license by the Commissioner, after a hearing, shall automatically revoke the temporary license.

1.4 The filing of a timely protest may, in the discretion of the Commissioner, result in the revocation of the temporary license.

1.5 The license fees for the three-month temporary licenses and a Sunday license shall be one-half of the annual fee for such licenses. No portion of such temporary license fees shall be refunded upon the surrender or revocation of the temporary license.

1.6 Temporary licenses shall be surrendered to the Commissioner within ten days of approval of the application for a permanent license.

History

• 19 DE Reg. 775 (02/01/16)

506 (Formerly Rule 63) A Rule Clarifying the Advertising Requirements for 4 Del.C. §524

4 Del. Admin. Code § 506 (Formerly Rule 63) A Rule Clarifying the Advertising Requirements for 4 Del.C. §524

For the purpose of clarifying 4 Del.C. §524, one of the notices shall appear in a Delaware daily or weekly newspaper circulated within a five-mile radius of the premises to which the license is to apply. The other notice shall appear in any other Delaware newspaper circulated within the county in which the license is to apply.

History

• 19 DE Reg. 775 (02/01/16)

507 Licensing Third-party Delivery of Alcoholic Beverages

4 Del. Admin. Code § 507 Licensing Third-party Delivery of Alcoholic Beverages

507 Licensing Third-party Delivery of Alcoholic Beverages

History

• 28 DE Reg. 743 (04/01/25)

4 Del. Admin. Code § 507-1.0 Purpose, Applicability and Findings

1.1 The purpose of this regulation is to establish procedures for the issuance of third-party delivery licenses under 4 Del.C. §512(a).

1.2 Only on-premise licensees with a license identified in 4 Del.C. §512(a) may contract with third-party delivery licensees to deliver alcoholic beverages to persons 21 years and older and not otherwise intoxicated. On-premise licensees, licensed pursuant to 4 Del.C. §512(a), may not themselves deliver alcoholic beverages to persons 21 years and older.

1.3 The Commissioner finds that certification cards issued by server training providers are revocable permits under the Delaware Liquor Control Act, as licenses, and may be subject to administrative sanctions, including suspension or revocation.

History

• 28 DE Reg. 743 (04/01/25)

4 Del. Admin. Code § 507-2.0 Definitions

The following words and terms, when used in this regulation, have the following meaning:

"Commissioner" means the Alcoholic Beverage Control Commissioner.

"Delivery worker" means an independent contractor or payroll employee of a third-party delivery licensee who performs alcohol-delivery services within the scope of a contract or employment with that third-party delivery licensee.

"Fixed fee" means a pre-determined fee that is not dependent, directly or indirectly, on the sales, profits, or revenues earned by the on-premise licensee.

"Office" means the Office of the Alcoholic Beverage Control Commissioner.

"On-premise licensee" means, for purposes of this regulation, a licensee licensed at all times to sell and serve alcoholic beverages for consumption on the premises where sold pursuant to 4 Del.C. §512(a) that has entered into a written agreement with a third-party delivery licensee to deliver alcoholic beverages.

"Third-party delivery licensee" or "TPDL" means a third-party delivery vendor with a license issued by the Commissioner, authorizing it to arrange for the delivery of alcoholic beverages in original containers and cocktails-to-go in containers securely closed, as further defined by this regulation to customers on behalf of on-premise licensees.

"Third-party delivery vendor" or "TPDV" means an entity that arranges for delivery of food or beverages or both to customers.

History

• 28 DE Reg. 743 (04/01/25)

4 Del. Admin. Code § 507-3.0 Procedure and Requirements for Licensure

3.1 A third-party delivery vendor or TPDV shall pay the $1,000 non-refundable application processing fee and submit a completed application form to be licensed as a third-party delivery licensee or TPDL, submit other documentation as required by the Commissioner, and submit the following:

3.1.1 Sample agreement between TPDV applicant and on-premise licensee that shall include, at a minimum:

3.1.1.1 All fees, costs, commissions, and other forms of compensation; and

3.1.1.2 Responsibility for insurance and indemnity.

3.1.2 Sample agreement between TPDV applicant and delivery worker that shall include, at a minimum:

3.1.2.1 Delivery worker consent to background check; and

3.1.2.2 Delivery worker consent to maintain a valid driver's license and adequate vehicle insurance coverage.

3.1.3 Detailed description of all forms of compensation (e.g., delivery fees, delivery worker tips, etc.) from on-premise licensees and receiving customers, including routing or remitting payments.

3.1.4 Proposed server training program for delivery workers for review and approval by the Commissioner.

3.2 Any and all fees and other forms of compensation paid or anticipated to be paid to a TPDV by an on-premise licensee must be disclosed during the license application process.

3.3 Once approved as a TPDL, all executed agreements with on-premise licensees who wish to have alcoholic beverages delivered lawfully pursuant to 4 Del.C. §512(a) must be provided to the Office by the TPDL within 10 business day of execution. Any future contracts with on-premise licensees entered into after application approval shall also be filed with the Office by the TPDL within 10 business days of execution.

3.4 All TPDLs shall verify delivery worker eligibility, including that:

3.4.1 Every delivery worker is 21 years or older, holds a valid driver's license and, for delivery workers who deliver using a motor vehicle, also holds a valid vehicle registration, and has adequate vehicle insurance coverage;

3.4.2 All delivery workers undergo a criminal background check and driver history check by the TPDL or a vendor designated by the TPDL to conduct background checks;

3.4.3 All delivery workers complete alcohol server training approved by this Office before delivering alcoholic beverages. The alcohol server training must be renewed in accordance with the Office's protocols.

3.5 Proof of general liability insurance with liquor liability endorsement. The TPDL must maintain sufficient general liability insurance with a liquor liability endorsement, which endorsement shall provide coverage for the conduct of, whether by act or omission, employees and independent contractors of the TPDL.

3.6 All records of delivery worker eligibility shall be maintained by the TPDV for 3 years.

History

• 28 DE Reg. 743 (04/01/25)

4 Del. Admin. Code § 507-4.0 Requirements for Delivery

4.1 Deliveries of alcoholic beverages are limited to 2 750-milliliter bottles of wine with each bottle limited to 750 milliliters, 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 that has entered into a delivery agreement with the TPDL. Canned, premixed cocktails are not permitted to be delivered. All on-premise licensees who provide alcoholic beverages for delivery must ensure that the beverages are in sealed containers, securely closed, and in a container that does not include a lid with sipping holes, pursuant to the Delaware Liquor Control Act and the Commissioner's regulations.

4.1.1 TPDL must have a valid, executed written agreement or an independent contractor agreement with an on-premise licensee on file with this Office before the TPDL may make any deliveries of alcoholic beverages.

4.1.2 TPDL must have a valid, executed written employment agreement or an independent contractor agreement with each delivery worker before the delivery worker may make any deliveries of alcoholic beverages.

4.2 Deliveries are prohibited to the following locations:

4.2.1 State-operated facility;

4.2.2 Correction and prison facilities;

4.2.3 Hospital;

4.2.4 Locker mailbox;

4.2.5 Post office box;

4.2.6 Package shipping or storage facility;

4.2.7 Retail licensee licensed by this Office;

4.2.8 All schools, including public, private, and charter schools through and including the 12th grade;

4.2.9 Undergraduate housing at an institution of higher learning;

4.2.10 Vacant home or building;

4.2.11 Locations where alcoholic beverages are otherwise prohibited, such as places of public accommodation, public beaches, etc.; and

4.2.12 Outside of the State of Delaware.

4.3 Process for delivery

4.3.1 TPDL must transmit delivery-related information to delivery workers in real-time and alert them that an order contains an age-restricted alcoholic beverage.

4.3.2 Delivery workers must have a copy of the invoice or bill of sale stating the name and address of the receiving customer and the type, brand, and quantity of each alcoholic beverage being delivered. Each package of alcoholic beverages to be delivered must be clearly marked by the on-premise licensee, in 26-point legible type or larger, "CONTAINS ALCOHOL."

4.3.3 Delivery workers must verify that receiving customers are of legal age and are not visibly intoxicated before delivering alcoholic beverages. At a minimum, this includes electronic verification of a customer's identification as well as observable verification, i.e., "multifactor" verification.

4.3.4 Delivery workers must obtain the signature (electronic or paper) or "finger scan" of the receiving customer before handing over possession of the alcoholic beverages.

4.3.5 Delivery workers must refuse delivery to the customer and return the alcoholic beverage to the on-premise licensee if:

4.3.5.1 The receiving customer is underage or intoxicated;

4.3.5.2 The customer refuses to sign for delivery or to provide a valid and current I.D.;

4.3.5.3 The third-party delivery licensee or its delivery worker doubts the authenticity of the customer's ID;

4.3.5.4 There is reason to suspect the customer is accepting delivery on behalf of an underage person; or

4.3.5.5 Other valid reason as determined by the third-party delivery licensee.

4.3.6 Delivery workers are prohibited from:

4.3.6.1 Collecting payment for the alcoholic beverage from the receiving customer;

4.3.6.2 Subcontracting or delegating to another person the delivery of alcoholic beverages;

4.3.6.3 Delivering alcoholic beverages to prohibited locations identified in subsection 4.2 of this regulation;

4.3.6.4 Leaving alcoholic beverages unattended or storing alcoholic beverages overnight under any circumstances;

4.3.6.5 Delivering alcoholic beverages not identified in an invoice from the on-premise licensee who is the merchant of record for the delivery; and

4.3.6.6 Engaging in no-contact deliveries without face-to-face interaction with the receiving customer.

4.3.7 The TPDL shall ensure all deliveries by its delivery workers occur only during the hours of operation of the on-premise licensee with whom it has contracted to deliver alcoholic beverages.

4.4 The third-party delivery licensee may receive a fixed fee as defined in Section 2.0 of this regulation for its delivery services.

4.5 The third-party delivery licensee does not have any retail sales privileges and therefore cannot charge a commission or receive a percentage of the proceeds from the sale of alcoholic beverages.

4.5.1 The on-premise licensee must retain control of all aspects of alcoholic beverage commerce, including product selection, pricing, and collecting the sales proceeds.

4.5.2 The Commissioner, upon request, may approve the third-party delivery licensees and on-premise licensees to use an integrated third-party payment processing platform (e.g., Stripe.com, Square.com or other platform) to aggregate their charges and bifurcate and remit the proceeds as appropriate (i.e., on-premise licensee is promptly remitted payment for sale of alcohol and third-party delivery licensee is remitted the fixed fee for the delivery of alcohol). The portion of the payment attributable to the alcoholic beverage purchase must be promptly remitted by the payment processing platform directly to the on-premise licensee, defined to mean the remittance would take place within 72 hours of the sales transaction.

4.6 The TPDL is prohibited from:

4.6.1 Selling or reselling alcoholic beverages; and

4.6.2 Setting the prices of alcoholic beverages or determining which beverages are available for delivery.

History

• 28 DE Reg. 743 (04/01/25)

4 Del. Admin. Code § 507-5.0 Recordkeeping Requirements

5.1 TPDLs shall retain electronic records of each delivery for 3 years from the date of delivery and make available to the Division of Alcohol and Tobacco Enforcement or DATE upon request for the purpose of investigating and enforcing the Delaware Liquor Control Act and all of its corresponding regulations. The record of each delivery shall include the following:

5.1.1 On-premise licensee's name and address;

5.1.2 Name of customer who placed the order and the date, time and method of the order;

5.1.3 Name of delivery worker and the date, time and address of the delivery; and

5.1.4 Type, brand, and quantity of each alcoholic beverage delivered.

5.1.5 Age verification data collected under subsection 4.3.3 of this regulation.

5.2 The TPDL shall retain electronic records of every on-premise licensee agreement for 3 years and make them available to DATE upon request for the purpose of investigating and enforcing the Delaware Liquor Control Act and all of its corresponding regulations.

5.3 The TPDL shall retain an electronic record of all delivery workers by name and address, and eligibility records for 3 years, and make them available to DATE upon request for the purpose of investigating and enforcing the Delaware Liquor Control Act and all of its corresponding regulations.

5.4 DATE may also request a copy of a delivery worker's server training certificate at any time.

5.5 The TPDL shall store electronic records in a manner that allows for retrieval and production of requested records within 10 business days of receiving a request for records by DATE, unless a variance to subsection 5.5 of this regulation has been requested for good cause shown and approved.

History

• 28 DE Reg. 743 (04/01/25)

4 Del. Admin. Code § 507-6.0 Administrative Procedures

6.1 DATE agents have the authority to administratively cite any TPDL or delivery worker for violating provisions of the Delaware Liquor Control Act or Commissioner regulations. The TPDL will also be held administratively liable for the violative actions or omissions of its delivery workers if those actions or omissions are contrary to the conditions of license issuance, the Delaware Liquor Control Act, or the Commissioner's regulations.

6.2 A certified server trained delivery worker who violates the Liquor Control Act or Commissioner regulations shall be notified of the alleged violation by the investigating agent as promptly as is possible.

6.2.1 A Notice of Violation will be mailed "Return Receipt Requested" to the delivery worker. The delivery worker shall have 10 working days after receipt of the notice to request a hearing by the Commissioner.

6.2.2 Should a delivery worker fail to request a hearing after receiving notice in conformity with 29 Del.C. §10122, the delivery worker shall be assessed by the DATE the sanction listed in subsection 6.3 of this regulation which may then be ratified by the Commissioner at the next regularly scheduled meeting.

6.2.3 If a delivery worker timely requests a hearing before the Commissioner pursuant to 29 Del.C. §10125, the delivery worker shall be placed on the next available agenda before the Commissioner and shall retain the rights set forth in 29 Del.C. §10122.

6.3 Sanctions

6.3.1 In addition to the Commissioner's power and authority to cancel or suspend a license, or impose a fine, or both against a licensee, including a TPDL, if the Commissioner finds that a delivery worker has violated the Delaware Liquor Control Act or Commissioner regulations, the Commissioner may, in addition to the power to impose a fine, suspending or canceling the TPDL's license, impose any or all of the sanctions in subsections 6.3.1.1-6.3.1.2:

6.3.1.1 Require that delivery workers re-take the mandatory server training program; or

6.3.1.2 Suspend or cancel the server training certification of the delivery worker for a period determined by the Commissioner.

6.3.2 Suspension or cancellation of the server training certification of a delivery worker shall preclude that person from employment as a delivery worker pursuant to this regulation. Any TPDL employing a delivery worker whose server training certification has been suspended or canceled may be subject to administrative sanctions pursuant to 4 Del.C. Ch. 12.

History

• 28 DE Reg. 743 (04/01/25)

600 Licenses for Gatherings

601 (Formerly Rule 35.1) Gathering Licenses

4 Del. Admin. Code § 601-1.0 Purpose and Scope

1.1 This regulation implements the definition of "gathering of persons" under the Delaware Liquor Control Act.

1.2 The purpose of a licensed gathering of persons is to raise funds or to further the stated mission and goals of the nonprofit organization.

1.3 To qualify for a license, the event to be licensed as a gathering of persons is one which is planned, coordinated, and hosted by or on behalf of the nonprofit organization and is advertised to the public as an event that will raise funds or otherwise further the stated mission and goals of the organization.

1.4 The holder of the gathering license is responsible for the sale and service of alcoholic liquors. The sale and service of alcoholic liquors includes the purchase, receipt, storage, and dispensing of alcoholic products. All proceeds from the sale or service of alcoholic liquors pursuant to a gathering license shall be retained by the holder of the gathering license and shall not be shared with other persons, businesses, or organizations.

History

• 28 DE Reg. 318 (10/01/24)
• 28 DE Reg. 318 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 28 DE Reg. 318 (10/01/24)

4 Del. Admin. Code § 601-2.0 Definitions

The following words and terms, when used in this regulation, have the following meaning:

"Affiliated licensee" means a licensed manufacturer of beer, wine, or spirits whose members, all or in part, are members of a nonprofit organization that is issued a gathering license.

"Gathering of persons" or "gathering" is defined in 4 Del.C. §101(22) and means a banquet, picnic, bazaar, fair, or similar private gathering, or similar public gathering, where food or drink are sold, served, or dispensed by nonprofit organizations such as churches, colleges, universities, volunteer fire companies, political parties, or other similar nonprofit groups having a common civic, social, educational, or religious purpose, or where entrance tickets are sold or entrance fees are required by those nonprofit organizations.

"Social, civic and educational groups" or "groups" as used in 4 Del.C. §101(22) and defined by the IRS, means nonprofit social welfare organizations and business leagues (operated exclusively to promote social welfare or common business interests in which no earnings inure to the benefit of a private individual or shareholder); veterans organizations; fraternal orders and societies; and nonprofit entities organized with members, for exempt purposes, supported by membership dues/assessments, with earnings that do not benefit a person having a personal or private interest in the organization's activities, and with organizational documents that do not contain any discriminatory provisions.

History

• 28 DE Reg. 318 (10/01/24)
• 28 DE Reg. 318 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 28 DE Reg. 318 (10/01/24)

4 Del. Admin. Code § 601-3.0 Gathering License - Requirements

3.1 A group as defined in this regulation shall submit an application in the form prescribed by the Delaware Alcoholic Beverage Control Commissioner and pay the appropriate fee.

3.2 The group must submit proof of incorporation or formation.

3.3 The group must submit a recent IRS Form 990 that has been filed by the nonprofit group and accepted by the IRS within the last 3 years. If the group has been organized in the prior calendar year, it must submit proof from the IRS that nonprofit status has been requested.

3.4 Religious groups must file IRS Form 1065 or demonstrate a current affiliation with a church or diocese.

3.5 Political groups must submit proof of current registration with the Delaware Department of Elections or with the Federal Election Commission.

3.6 The group must submit a floor plan of the premises where the gathering will take place, to include all seating, alcohol service areas, alcohol storage, entertainment areas, food service and preparation areas, and all points of ingress and egress.

3.7 A daily gathering license application must be completed and submitted 10 working days prior to the first scheduled gathering listed on the application.

3.8 Within 60 days after a licensed gathering has taken place, the holder of the license shall submit a completed and signed post event report (a sample form can be obtained from the Office) which shall include: total alcohol sales and/or portion of ticket sales related to alcohol; cost of the alcohol; and the net proceeds from the sale of alcohol at the event. The holder of the license may submit all information by electronic means.

3.8.1 If a group fails to submit the information required by subsection 3.8 of this regulation, future gathering licenses may not be granted to the organization.

3.8.2 A group that has obtained a biennial gathering license may submit the report required by subsection 3.8 of this regulation on a quarterly basis, in lieu of 60 days after each event. Failure to submit the information required may result in cancellation of the biennial gathering license.

3.9 If a gathering license is issued to a nonprofit group with an affiliated licensee, the affiliated licensee shall not receive any alcohol proceeds from the gathering. For purposes of this regulation, "proceeds from the gathering" does not include the purchase of alcoholic beverages provided for the gathering.

3.10 The requirements of subsections 3.2, 3.3, and 3.8 of this regulation shall not apply to a volunteer fire company, a religious organization, or a political organization.

History

• 28 DE Reg. 318 (10/01/24)
• 28 DE Reg. 318 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 28 DE Reg. 318 (10/01/24)

602 (Formerly Rule 35) A Rule Governing the Issuance of a License for a Gathering to be Held in Licensed Establishments in the State of Delaware

4 Del. Admin. Code § 602-1.0 Application for Gathering License

The application for a gathering license shall indicate clearly the area of the non-gathering licensee where such gathering will take place and the license shall exclusively cover and pertain only to the described part of the premises.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 602-2.0 Alcoholic Liquor Purchase and Storage

All alcoholic liquors served at such private gathering must be purchased from the on-premises licensee where the gathering is being held or from an Importer or retailer. All unused alcoholic liquors must be stored and locked immediately following the private gathering in storage cabinets set aside in the area used for the gathering. None of the alcoholic liquors may be removed from the specified area, except by employees of the licensee for the purpose of returning such alcoholic liquors to stock.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 602-3.0 Compliance

The Commissioner shall look to the holder of such private gathering license for compliance with the laws of Delaware and the rules and regulations of the Commissioner relating to alcoholic liquors. However, a violation of such laws, rules or regulations of the Commissioner shall be cause for the Commissioner to deny future applications for private gathering licenses on the premises of the licensee where the violation occurred.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 602-4.0 Fee

Every application filed in accordance with this rule shall be accompanied by the sum of $5.00 payable to the Commissioner, which shall be refunded if the application is not approved.

History

• 19 DE Reg. 775 (02/01/16)

700 Renewal and Alterations of Licenses

701 (Formerly Rule 51) A Rule Requiring the Biennial Renewal of Wholesale, Retail, and Annual Gathering Licenses

4 Del. Admin. Code § 701-1.0 Wholesaler Licenses (Even-Numbered Years)

The Commissioner shall provide notice of license renewal to all wholesalers by February 15 of each even-numbered year, and payment of the renewal fee from the licensee is due within 30 days. All licenses issued by the Commissioner to wholesalers shall be for a 2-year period beginning April 1 of each even-numbered year and ending March 31 of the following even-numbered year.

History

• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 28 DE Reg. 320 (10/01/24)

4 Del. Admin. Code § 701-2.0 Biennial Gathering Licenses (Even-Numbered Years)

The Commissioner shall provide notice of license renewal to all biennial gathering licenses by October 1 of each even-numbered year. All renewal applications and payments must include a current Form 990 of the applicant and be submitted in the form required by the Commissioner on or before November 1 of each even-numbered year. All biennial gathering licenses issued by the Commissioner shall be for a 2-year period beginning January 1 of each even-numbered year and ending December 31 of the following even-numbered year.

History

• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 28 DE Reg. 320 (10/01/24)

4 Del. Admin. Code § 701-3.0 Retail Licenses - Sussex County (Even-Numbered Years)

The Commissioner shall provide notice of license renewal to all retail licensees in Sussex County by August 15 of each even-numbered year, and payment of the renewal fee from the licensee is due within 30 days. All licenses issued by the Commissioner to locations in Sussex County shall be for a period of 2 years beginning October 1 of each even-numbered year and ending September 30 of the following even-numbered year.

History

• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 28 DE Reg. 320 (10/01/24)

4 Del. Admin. Code § 701-4.0 Retail Licenses - City of Wilmington (Even-Numbered Years)

The Commissioner shall provide notice of license renewal to all retail licensees in the City of Wilmington by May 15 of each even-numbered year, and payment of the renewal fee from the licensee is due within 30 days. All licenses issued by the Commissioner to locations in the City of Wilmington shall be for a period of 2 years beginning July 1 of each even-numbered year and ending June 30 of the following even-numbered year.

History

• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 28 DE Reg. 320 (10/01/24)

4 Del. Admin. Code § 701-5.0 Retail Licenses - Kent County (Odd-Numbered Years)

The Commissioner shall provide notice of license renewal to all retail licensees in Kent County by August 15 of each odd-numbered year, and payment of the renewal fee from the licensee is due within 30 days. All licenses issued by the Commissioner to locations in Kent County shall be for a period of 2 years beginning October 1 of each odd-numbered year and ending September 30 of the following odd-numbered year.

History

• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 28 DE Reg. 320 (10/01/24)

4 Del. Admin. Code § 701-6.0 Retail Licenses - New Castle County (Odd-Numbered Years, A to K)

The Commissioner shall provide notice of license renewal to all retail licensees in New Castle County outside of the City of Wilmington whose name (corporate, partnership, or proprietary name, and not trade name) starts with an alphabetical letter of "A" to "K" by February 15 of each odd-numbered year, and payment of the renewal fee from the licensee is due within 30 days. All licenses issued by the Commissioner to locations in New Castle County (A to K) shall be for a period of 2 years beginning April 1 of each odd-numbered year and ending March 31 of the following odd-numbered year.

History

• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 28 DE Reg. 320 (10/01/24)

4 Del. Admin. Code § 701-7.0 Retail Licenses - New Castle County (Odd-Numbered Years, L to Z)

The Commissioner shall provide notice of license renewal to all retail licensees in New Castle County outside of the City of Wilmington whose name (corporate, partnership, or proprietary name, and not trade name) starts with an alphabetical letter of "L" to "Z" by May 15 of each odd-numbered year, and payment of the renewal fee from the licensee is due within 30 days. All licenses issued by the Commissioner to locations in New Castle County (L to Z) shall be for a period of 2 years beginning July 1 of each odd-numbered year and ending June 30 of the following odd-numbered year.

History

• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 28 DE Reg. 320 (10/01/24)

4 Del. Admin. Code § 701-8.0 Late Renewal Penalties for Failure to File Applications as Required

8.1 Any application and payment for license renewal received by the Commissioner 1 to 5 business days past the deadline noted in this regulation may result in a $25 late penalty fee; 6 to 10 business days past the deadline may result in a $50 late penalty fee.

8.2 Any late penalty fees will be assessed with the renewal fee and must be paid before the renewal license shall issue.

History

• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 28 DE Reg. 320 (10/01/24)

4 Del. Admin. Code § 701-9.0 Fines for Failure to File Applications as Required

9.1 Fines. Any licensee who fails to file the application for renewal as required by this regulation (including the fee) for more than 10 business days after the deadlines noted in this regulation, shall pay a fine as outlined in 4 DE Admin. Code 804 implementing the voluntary fine assessment plan:

9.1.1 First violation, $250 fine and administrative costs.

9.1.2 Second violation, $500 fine and administrative costs.

9.1.3 Any application for renewal received after 3 calendar months from the time required in this rule, or any licensee who has committed a third or subsequent offense under this rule, shall be cited for a violation of this regulation and the matter shall be heard by the Commissioner.

9.2 Collection of Fine and Right to Hearing

9.2.1 The fine shall be collected as outlined in 4 DE Admin. Code 804, Section 3.0 Procedure.

9.2.2 If a licensee chooses a hearing before the Commissioner, then 4 DE Admin. Code 804, Section 4.0 Penalties and Administrative Costs, will be implemented.

9.3 Non-Renewal of License until Fine is Paid. When a fine is validly imposed under this regulation, the license shall not be renewed until the fine is paid in full.

9.4 Meaning of "Timely Filing". In order for any application to be timely filed under this rule, it must be received by the Commissioner or clearly marked with a post office cancellation on or before the deadline required by this regulation.

History

• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 28 DE Reg. 320 (10/01/24)

4 Del. Admin. Code § 701-10.0 This Regulation Does Not Affect Revocations, Cancellations, Suspensions or Fines

10.1 Nothing in this regulation shall affect or limit the authority of the Commissioner to revoke, cancel or suspend a license, to impose a fine or to issue a license for a period of time less than 2 years.

10.2 Nothing in this regulation shall prohibit a licensee from surrendering the license or allowing it to expire.

History

• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 28 DE Reg. 320 (10/01/24)

702 (Formerly Rule 51.1) A Rule Requiring the Biennial Renewal of Supplier’s Licenses

4 Del. Admin. Code § 702-1.0 Background

All suppliers are required by the Delaware Liquor Control Act to be licensed by the Delaware Alcoholic Beverage Control Commissioner. All new licensees, including those who have allowed their license to lapse, are required to pay an application processing fee pursuant to 4 Del.C. §554(x); however, any supplier applicant seeking a license to import 200 cases or less per year shall not require a hearing and not be required to pay the application processing fee. Should the holder of a license to import 200 cases or less per year apply for a license to import over 200 cases, the license holder will be required to pay the full $1,000 application processing fee.

History

• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 28 DE Reg. 320 (10/01/24)

4 Del. Admin. Code § 702-2.0 Purpose

The purpose of this regulation is to establish a procedure for the renewal of suppliers that are licensed under 4 Del.C. §501(a).

History

• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 28 DE Reg. 320 (10/01/24)

4 Del. Admin. Code § 702-3.0 Procedure

3.1 The Commissioner shall provide notice of license renewal to all suppliers whose name (corporate, partnership, or proprietary name, and not trade name) starts with an alphabetical letter of "A" to "K" by November 15 of each odd numbered year, and payment of the renewal fee from the licensee is due within 30 days. All licenses issued by the Commissioner to Suppliers (A to K) shall be for a period of 2 years beginning January 1 of each even-numbered year and ending December 31 of the following odd-numbered year.

3.2 The Commissioner shall provide notice of license renewal to all suppliers whose name (corporate, partnership, or proprietary name, and not trade name) starts with an alphabetical letter of "L" to "Z" by November 15 of each even numbered year, and payment of the renewal fee from the licensee is due within 30 days. All licenses issued by the Commissioner to Suppliers (L to Z) shall be for a period of 2 years beginning January 1 of each odd-numbered year and ending December 31 of the following even-numbered year.

3.3 If the supplier fails to comply with subsection 3.2 of this regulation, but renews its license prior to December 31, it will be subject to a $100 late renewal penalty.

3.4 If a supplier whose name begins with the letter A to K fails to submit a renewal application, along with the fee, by December 31 of odd numbered years, the license will expire, and the supplier will be prohibited by law from shipping alcoholic liquor into the state as of January 1.

3.5 If a supplier whose name begins with the letter L to Z fails to submit a renewal application, along with the fee, by December 31 of even numbered years, the license will expire, and the supplier will be prohibited by law from shipping alcoholic liquor into the state as of January 1.

3.6 If alcoholic liquor is shipped into the state by an unlicensed supplier, all alcoholic liquor may be seized under the provisions of 4 Del.C. Ch. 11.

3.7 Suppliers who allow their license to expire shall be required to file a complete application, including the $1,000 processing fee, before being issued a new license unless they apply for a license to ship 200 cases or less per year.

History

• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 28 DE Reg. 320 (10/01/24)

4 Del. Admin. Code § 702-4.0 Failure to File Applications as Required

4.1 Any supplier who does not timely file an application by December 31 for renewal as required by subsections 3.1 or 3.2, or does not file the application for renewal in the form required by the Commissioner including the fee, or both, shall pay a fine as outlined in 4 DE Admin. Code 804 implementing the voluntary fine assessment plan.

4.1.1 First Violation: $250 fine and administrative costs.

4.1.2 Second Violation: $500 fine and administrative costs.

4.1.3 Any application for renewal of a licensee who has committed a third or subsequent offense under this rule shall be cited for a violation of this rule and the matter shall be heard by the Commissioner.

4.2 Collection of Fine and Right to Hearing. The fine shall be collected as outlined in 4 DE Admin. Code 804, Section 3.0, Procedure. If a licensee chooses a hearing before the Commissioner, then 4 DE Admin. Code 804, Section 4.0, Penalties and Administrative Costs, will be implemented.

4.3 Non-Renewal of License Until Fine is Paid. When a fine is validly imposed under this rule, the license shall not be renewed until the fine is paid in full.

4.4 Meaning of "Timely Filing". In order for an application to be timely filed under this rule, it must be received by the Commissioner, or clearly marked with a post office cancellation, on or before the deadline required by this rule.

4.5 Nothing in this rule shall affect or limit the authority of the Commissioner to revoke, cancel, or suspend a license, to impose a fine, or to issue a license for a period of time less than 1 year. Further, nothing in this rule shall prohibit a licensee from surrendering the license or allowing it to expire.

History

• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 28 DE Reg. 320 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 28 DE Reg. 320 (10/01/24)

703 (Formerly Rule 42) A Rule Governing Specifications and Alterations to Proposed and Licensed Establishments

4 Del. Admin. Code § 703-1.0 Purpose

1.1 This rule requires the submission of design specifications or alterations of proposed and existing establishments either licensed or to be licensed by the Commissioner for the sale of alcoholic liquor, to ensure compliance with the Liquor Control Act and Commissioner Rules.

1.2 The Commissioner has concluded, pursuant to the Commissioner's authority to regulate time, place, and manner in which alcoholic liquor is sold and dispensed, 4 Del.C., §304(a)(2), that the submission of this information is reasonably necessary to ensure compliance with the various specification provisions of the Liquor Control Act and existing Commissioner Rules.

1.3 The Commissioner has further found that the potential public safety and law enforcement risk associated with drive-in and walk-up windows, when measured against the nominal convenience they offer consumers, dictates a prohibition on future floor plans that seek to include these design features for the sale of alcoholic liquors.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 703-2.0 Applicability

This rule shall govern the submission of specifications and floor plans by all persons licensed or to be licensed by the Commissioner to import alcoholic liquor or to sell alcoholic liquor for consumption either on or off the premises or both.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 703-3.0 Procedure

3.1 Each application for a license to sell alcoholic liquor must be accompanied by a floor plan of the premises to be licensed. The plan shall be reviewed by the Commissioner and approved only if it conforms with the Liquor Control Act and Commissioner Rules.

3.2 The floor plan must be submitted in duplicate (two copies) and must include, at a minimum, the following:

3.2.1 Detailed interior and exterior dimensions of the premises.

3.2.2 Clearly indicate all fixtures and equipment, including draft systems, counters, shelving, tables, chairs, bars (if applicable), male restroom, and female restroom.

3.2.3 Detailed interior and exterior dimensions of any other floors, basements, attached rooms, or adjoining structures of any type, if used or planned to be used, for the sale or storage of alcoholic liquor. If applying for a restaurant license, include areas designated for entertainment at any time.

3.2.4 Clearly indicate all entrances and exits of the establishment, as well as any and all connecting halls, doors, or windows that would permit communication or access between licensed and unlicensed areas. This requirement also includes connected or attached living quarters.

3.3 All proposed alterations to existing licensed establishments shall comply with the aforementioned requirements and, in addition, follow the provisions of Rule 704 (Formerly Rule 42.1) before submission to the Commissioner for consideration.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 703-4.0 Prohibition on Drive-In and Walk-Up Windows

4.1 It is the finding of the Commissioner that the use of drive-in and walk-up windows or counters by establishments licensed for off-premises consumption present substantial risks to public safety and law enforcement personnel that outweigh the convenience they offer consumers.

4.2 Specifically, the Commissioner finds the following risks associated with drive-in and walk-up windows:

4.2.1 Licensee compliance with proper identification procedures and detection of intoxicated patrons is encumbered by the presence of glass partitions, increased distance, angle of view (between the window and parked vehicle), poor lighting, and automobiles.

4.2.2 Law enforcement surveillance personnel cannot adequately view patrons sitting in automobiles for the purpose of assessing age and condition of sobriety.

4.2.3 The danger to law enforcement personnel is substantially increased when suspected liquor law violators are in a motor vehicle. The potential flight of violators also constitutes an increased risk to the public.

4.2.4 The practice of drivers purchasing alcoholic liquor without leaving their vehicle creates a public perception that tends to frustrate the state's goal of promoting highway safety and reducing drunk driving.

4.3 The Commissioner, therefore, will not accept or approve an application for an alcoholic liquor license, or a request for an alteration in the case of an existing license, wherein the accompanying floor plan includes either a drive-in or walk-up window or counter; however, this prohibition shall not apply to the transfer of ownership in any of the forms covered by Rule 301 (Formerly Rule 3) or renewal of an existing license.

History

• 19 DE Reg. 775 (02/01/16)

704 (Formerly Rule 42.1) Construction, Renovation, Extension of Premises to Include Patios: Procedures, Standards and Fees

4 Del. Admin. Code § 704-1.0 Purpose and Scope

1.1 Licenses issued under the provisions of Title 4, Delaware Code (Liquor Control Act) are approved based upon the physical plan as presented in the initial application. Under the provisions of Rule 703 any and all alterations to the licensed premises must be presented and approved by the Commissioner prior to execution.

1.2 This rule provides procedures, standards and fees for use permits and enforcement inspection under Rule 703.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 704-2.0 Definitions

"Patio" means deck or porch, covered, uncovered, raised or at grade, and must be attached to, and contiguous with the licensed premises.

"Premises" means the building or buildings identified by a single address number or lease space number, to which a license to sell alcoholic liquors for consumption "on" or "off" has been issued by the Commissioner, but shall not include the surrounding grounds, parking lot, ancillary structures, contiguous water, still or moving, or piers, floating docks or buildings, patios covered or uncovered, or any other structure, modular or mobile home attached or connected to the licensed establishment by electrical, water, sewer or heating/air conditioning systems.

"Wet Bar" means any fixed or portable, permanent or temporary, point of service for sale, delivery or service of alcoholic beverages.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 704-3.0 Patio Permit

An extension of premises patio permit may be issued, and valid during the term of the basic license, providing the following procedures are followed and said extension is approved by the Commissioner.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 704-4.0 Procedures

4.1 For all construction and/or renovation:

4.1.1 Submit to the Commissioner a letter of intent including:

4.1.1.1 Detailed floor or construction plans (2 sets) showing dimensions, point of contact with the licensed premises, elevation and identification of access and egress, wet bars, seating and table arrangements, storage, restrooms, parking and fencing. In the event that the applicant is for a restaurant license, include the areas utilized for entertainment, either permanent or temporary;

4.1.1.2 The total square footage of the extended premises;

4.1.1.3 Approval from the appropriate political subdivision;

4.1.1.4 Intended construction start and finish dates;

4.1.1.5 Filing Fee (non-refundable).

4.2 Notice of an extension of the licensed premises must be made in accordance with 4 Del.C. §524. The Commissioner will review the intent plans, and if no protest is received within the protest period, may issue a construction approval to begin construction. Any change in plans must be submitted to the Commissioner for approval, accompanied by a filing fee.

4.3 In the event a protest is received, a public hearing will be scheduled to hear the protest.

4.4 When construction is completed, the Commissioner shall be notified for final inspection of the site.

4.5 Upon final inspection, approval, and upon payment of the non-refundable inspection fee, and patio permit fee, if applicable, the Commissioner shall authorize use as an extension of premises.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 704-5.0 Fees

5.1 Filing Fee: $25.00

5.2 Inspection fees:

5.2.1 Up to 2500 square feet $100.00

5.2.2 2501-7500 square feet $200.00

5.2.3 7501-10,000 square feet .03/sq. ft.

5.2.4 10,001-15,000 square feet .04/sq. ft.

5.2.5 over 15,000 square feet .05/sq. ft.

5.3 Patio use permit fee: Biennial fee of $1,000.

5.4 Fee for a variance to the standards set forth in Section 6.0 below is a biennial fee of $100 per variance.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 704-6.0 Standards for Patios

6.1 No live entertainment on licensed patio.

6.2 No external speakers or amplifiers on licensed patio.

6.3 No audible paging system on licensed patio.

6.4 No wet bar on licensed patio.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 704-7.0 Variances

The Commissioner may authorize variances for good cause shown to the inspection standards for individual patio requests.

History

• 19 DE Reg. 775 (02/01/16)

Rule 705 - Expansion of Outdoor Seating: Procedures, Standards and Fees

4 Del. Admin. Code § Rule 705-1.0 Purpose and Scope {#sec-rule-705-1.0 omnilex-key=us-de-regs-official--title-4--Rule 705-1.0}

1.1 Licenses issued under the provisions of Title 4, Delaware Code (the Delaware Liquor Control Act) are approved based upon the physical plan as presented in the initial application. Under the provisions of 4 DE Admin. Code 703, all alterations to the licensed premises must be presented and approved by the Commissioner prior to execution of construction, renovation, or modification.

1.2 This rule provides procedures, standards, and inspection requirements.

History

• 26 DE Reg. 57 (07/01/22)

4 Del. Admin. Code § Rule 705-2.0 Definitions {#sec-rule-705-2.0 omnilex-key=us-de-regs-official--title-4--Rule 705-2.0}

"Expansion of Outdoor Seating" includes the surrounding grounds, sidewalk and parking lot immediately adjacent to the building or buildings identified by a single address number or lease space number, to which a license to sell alcoholic liquors for consumption has been issued by the Commissioner. It does not mean the building or buildings to which a license to sell alcoholic liquors for consumption "on" or "off" has been issued by the Commissioner, nor does it include ancillary structures, contiguous water, still or moving, or piers, floating docks or buildings, patios covered or uncovered, or any other structure, modular or mobile home attached or connected to the licensed establishment by electrical, water, sewer or heating/air conditioning systems.

"Wet Bar" means as defined in 4 DE Admin. Code 704, Section 2.0.

History

• 26 DE Reg. 57 (07/01/22)

4 Del. Admin. Code § Rule 705-3.0 Expansion of Outdoor Seating Permit {#sec-rule-705-3.0 omnilex-key=us-de-regs-official--title-4--Rule 705-3.0}

Approval of an expansion of outdoor seating for serving food and alcoholic beverages may be issued, and valid during the term of the basic license, providing the following procedures are followed and the expansion of outdoor seating is approved by the political subdivision before the request for an expansion of outdoor seating is submitted for review and approval by the Commissioner. Expansion of outdoor seating approval is separate from and does not include an extension of premises patio permit ("patio permit") governed by 4 DE Admin. Code 704.

History

• 26 DE Reg. 57 (07/01/22)

4 Del. Admin. Code § Rule 705-4.0 Procedures {#sec-rule-705-4.0 omnilex-key=us-de-regs-official--title-4--Rule 705-4.0}

4.1 For an expansion of outdoor seating, the licensee shall submit to the Commissioner a letter of request, with the following attachments:

4.1.1 A letter of approval from the appropriate political subdivision approving the request for expansion of outdoor seating explaining how the expansion will comply with 4 Del.C. §524(f)(2), including compliance with traffic patterns and the State's right of way, compliance with the Americans with Disabilities Act and adherence to noise ordinances. The letter shall also include the expiration date of the approval for expansion of outdoor seating, if applicable.

4.1.2 A detailed floor or construction plan showing dimensions, point of contact with the licensed premises, elevation (if any) and identification of access and egress, seating and table arrangements, and appropriate fencing or enclosures for the expansion of outdoor seating that will permit the proper control over the distribution of alcoholic beverages.

4.1.3 Intended construction start and finish dates, if applicable.

4.1.4 Filing Fee (non-refundable).

4.2 If construction or modification is required, when completed, the Commissioner shall be notified for final inspection of the site.

4.3 Upon final inspection, approval, and upon payment of the non-refundable inspection fee, the Commissioner shall authorize use as an expansion of outdoor seating.

History

• 26 DE Reg. 57 (07/01/22)

4 Del. Admin. Code § Rule 705-5.0 Fees {#sec-rule-705-5.0 omnilex-key=us-de-regs-official--title-4--Rule 705-5.0}

5.1 Filing Fee: $25.00

5.2 Inspection fee: $25.00

History

• 26 DE Reg. 57 (07/01/22)

4 Del. Admin. Code § Rule 705-6.0 No Additions Permitted to An Expansion of Outdoor Seating {#sec-rule-705-6.0 omnilex-key=us-de-regs-official--title-4--Rule 705-6.0}

6.1 No live entertainment is permitted on an expansion of outdoor seating.

6.2 No external speakers, sound system or amplifiers are permitted on an expansion of outdoor seating.

6.3 No audible paging system is permitted on an expansion of outdoor seating.

6.4 No wet bar is permitted on an expansion of outdoor seating.

History

• 26 DE Reg. 57 (07/01/22)

800 Suspension of License; Sanctions and Fines

801 (Formerly Rule 38) A Rule to Require the Posting of a Notice of Suspension of License Upon the Outer Door of All Licensed Premises Upon Issuance of Order of Suspension and Prohibiting Any Removal, Tampering With or Mutilation of Such Notice During the Period of Suspension

4 Del. Admin. Code § 801 (Formerly Rule 38) A Rule to Require the Posting of a Notice of Suspension of License Upon the Outer Door of All Licensed Premises Upon Issuance of Order of Suspension and Prohibiting Any Removal, Tampering With or Mutilation of Such Notice During the Period of Suspension

Under the suspension of any license by order of the Commissioner under the provisions of Section 561, Chapter 5, Title 4, Delaware Code of 1953, there shall be placed conspicuously upon the outer door of the licensed premises by an officer of the Commissioner, a sign containing the legend "LIQUOR LICENSE SUSPENDED FOR VIOLATION OF THE LIQUOR CONTROL ACT". The design of such sign, including the lettering and coloring, shall be as designated from time to time by the Commissioner. Such sign shall remain at all times the property of the Commissioner and shall, remain where so affixed by an officer of the Commissioner until removed by order of the Commissioner. If the licensee whose license is suspended shall remove, tamper with or in any way mutilate such sign, or, directly or indirectly, cause such sign to be removed, tampered with or mutilated, such action shall be cause for the cancellation or revocation of the license and all persons responsible for such removal, tampering or mutilation shall be liable for any appropriate penalty under the Liquor Control Act.

History

• 19 DE Reg. 775 (02/01/16)

802 (Formerly Rule 55) A Rule Prohibiting Sales or Removal of Alcoholic Beverages From Premises While License is Suspended

4 Del. Admin. Code § 802 (Formerly Rule 55) A Rule Prohibiting Sales or Removal of Alcoholic Beverages From Premises While License is Suspended

In a case where the Commissioner for any violation suspends the license of a licensee, said licensee must, under no circumstances make any sales or in any manner dispose of the liquor in the licensee's possession during the period of suspension. In the event that it appears that a sale or any disposition of liquor has been made, said licensee shall be cited to appear before the Commissioner for a hearing and if found guilty, the licensee's license shall be revoked.

History

• 19 DE Reg. 775 (02/01/16)

803 (Formerly Rule 73.1) Sanctions for Certified Alcoholic Beverage Servers Who Violate the Liquor Control Act or Commissioner Rules

4 Del. Admin. Code § 803-1.0 Purpose and Findings

1.1 The purpose of this rule is to establish administrative sanctions for certified alcoholic beverage servers who violate the Liquor Control Act ("LCA") or Delaware Alcoholic Beverage Control Commissioner ("Commissioner") rules.

1.2 The Commissioner finds that certification cards issued by server training providers are revocable permits under the Liquor Control Act, as licenses, and may be subject to administrative sanctions, including suspension or revocation.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 803-2.0 Applicability

This rule shall govern administrative sanctions imposed upon certified alcoholic beverage servers who violate the Liquor Control Act or Commissioner rules while performing their duties as commercial servers of alcoholic liquor in licensed establishments.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 803-3.0 Certification of Training

3.1 Any employee of a premises licensed to sell alcohol who has worked for the licensee for at least 30 days for at least 10 hours per week shall take and pass a course certified pursuant to this Rule and maintain the certification as provided in 4 Del.C. §1205. All persons who have been certified by a Commissioner-approved server training provider shall be issued a certification card issued by the provider that must display the following information: Trainee's full name, date of birth, expiration date, and instructor's signature.

3.2 All certified servers are required to carry this card on their immediate person while serving alcoholic beverages in any establishment subject to the provisions of 4 Del.C. Ch. 12.

3.3 No person shall make any false statement or other misrepresentation of fact to obtain a server training identification card.

3.4 No person shall possess, or present to any DATE Agent or employee of the Commissioner's office, as proof of program certification, a fictitious, altered, or fraudulently obtained server training identification card.

3.5 No person shall present a fictitious, altered, or fraudulently obtained server training identification card to any licensee of the Commissioner during the process of seeking employment with said licensee.

3.6 No person certified by the Commissioner as a trained alcoholic beverage server shall sell, serve, or promote the sales of alcoholic beverages in a manner not consistent with the rules of the Commissioner or the Liquor Control Act.

3.7 No licensee shall encourage or knowingly permit any employee or staff member or other person under their employ, supervision, or direction, to sell, serve, or promote the sales of alcoholic beverages in any manner not consistent with the Liquor Control Act or rules of the Commissioner.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 803-4.0 Administrative Procedures

4.1 DATE Agents may administratively cite any licensee or Delaware certified alcoholic beverage server for violating provisions of the Liquor Control Act or Commissioner rules.

4.2 A certified alcoholic beverage server who violates the Liquor Control Act or Commissioner Rules shall be notified of the alleged violation by the investigating agent as promptly as is possible.

4.3 A Notice of Violation will be mailed "Return Receipt Requested" to the server. The server shall have ten (10) working days after receipt of the notice to request a hearing by the Commissioner.

4.4 Should a certified alcoholic beverage server fail to request a hearing after receiving notice in conformity with 29 Del.C. §10122, the server shall be assessed by the division the sanction listed in subsection 5 below which may then be ratified by the Commissioner at the next regularly scheduled meeting.

4.5 If a server timely requests a hearing before the Commissioner pursuant to 29 Del.C. §10125, he/she shall be placed on the next available agenda before the Commissioner and shall retain the rights set forth in 29 Del.C. §10122.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 803-5.0 Sanctions

5.1 If the Commissioner finds that a certified beverage server has violated the Liquor Control Act or Commissioner rules, the Commissioner may impose any or all of the sanctions that follow:

5.1.1 Require the server to participate in public service speaking engagements at server training classes presented by the Commissioner. The topic and number of speaking engagements shall be determined by the Commissioner; or

5.1.2 Require the server to re-take the mandatory server training program; or

5.1.3 Suspend the training certification of the alcoholic beverage server for a period determined by the Commissioner.

5.2 Suspension of server training certification shall preclude that person from employment as an alcoholic beverage server in those establishments covered by 4 Del.C. Ch. 12. Any establishment employing a person whose alcoholic beverage training certification has been suspended may be subject to administrative sanctions pursuant to 4 Del.C. Ch. 12.

5.3 The Commissioner may deny server training certification privileges to any person who fraudulently obtains, or attempts to fraudulently obtain server training certification.

History

• 19 DE Reg. 775 (02/01/16)

804 (Formerly Rule 71) A Rule Pertaining To Voluntary Fine Assessment

4 Del. Admin. Code § 804-1.0 Purpose

This rule implements the grant of authority to the Commissioner contained in 4 Del.C. §915 to create a voluntary fine assessment plan for any licensee who pleads guilty to any violation of the Commissioner's rules.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 804-2.0 Applicability

2.1 In accordance with 4 Del.C. §915 agents of DATE shall have authority to offer a voluntary fine assessment agreement to any licensee who violates any of the Commissioner's rules.

2.2 When a licensee chooses to plead guilty to violating a Commissioner rule and pay a voluntary fine under this plan, said licensee shall be deemed to have waived his/her right to and shall forego a hearing in accordance with 29 Del.C. §10125, before the Commissioner and any appeal.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 804-3.0 Procedure

3.1 Licensees cited for a violation of Commissioner rules who accept the investigating agent's offer to participate in the voluntary fee assessment plan shall sign the voluntary fee assessment form.

3.2 The execution of said form shall constitute an admission of guilt to the violation, and the licensee shall send the appropriate remittance by check or money order to the Commissioner on or before the due date stated on the voluntary fee assessment form unless the licensee withdraws their consent to participate in the voluntary assessment program in writing prior to the due date. In all cases, the due date shall be thirty (30) days from the date of signing the voluntary fee assessment form.

3.3 The Director of DATE shall establish the form(s) and procedures within DATE that are necessary to carry out the requirements of this rule.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 804-4.0 Penalties and Administrative Cost

4.1 The schedule of penalties and administrative cost established for violations covered by the voluntary fine assessment plan are as follows:

4.1.1 First Violation: A two hundred fifty ($250) dollar fine.

4.1.2 Second Violation of the Same Offense Within Five (5) Years: A five hundred ($500) dollar fine.

4.1.3 Third and Subsequent Violations of the Same Offense Within Five (5) Years: A fine of one thousand ($1,000) dollars or a mandatory hearing before the Commissioner with penalties, if any, pursuant to provisions of the Liquor Control Act and, where prescribed, the specific penalty ranges of the violated rule.

4.1.4 Administrative costs for all voluntary fine assessments shall be added at a rate of 15% of the amount of the fine.

4.2 The aforementioned schedule of penalties, when used as part of a guilty plea under the voluntary fine assessment plan, shall supersede any provision of any Delaware Alcoholic Beverage Control Commissioner rules that prescribes specific penalties.

4.3 Where a licensee chooses to pay a fine under this plan, such licensee shall have waived all rights to the calculation of fines pursuant to 4 Del.C. §914.

4.4 Failure by a licensee to pay a fine, as agreed, by the due date, as indicated on the voluntary fee assessment form, may result in the licensee being cited for a violation of Rule 805 and a hearing being scheduled before the Commissioner. The violation shall be treated as a separate violation to the underlying violation listed on the voluntary assessment form.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 804-5.0 Reporting

The Director of DATE shall report to the Commissioner on a monthly basis the name, violation(s), fine, and date of all voluntary assessments that are issued.

History

• 19 DE Reg. 775 (02/01/16)

805 (Formerly Rule 64) A Rule Governing Time Within Which To Pay A Fine; Penalty For Failure To Pay A Fine Appeal

4 Del. Admin. Code § 805-1.0 Time Within Which to Pay a Fine

Whenever the Commissioner shall impose a fine on a licensee as authorized by the Liquor Control Act, as amended, or the Rules of this Commissioner, that licensee shall have thirty days from the date of the written decision setting forth the fine to pay the fine in full to the Commissioner, counting the date of the written decision as the first day. The thirty-day period shall apply to all fines unless otherwise provided by the Commissioner. The Commissioner may, sua sponte or on application of a licensee subject to a fine, increase or decrease the period of time within which a fine is to be paid.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 805-2.0 Failure to Pay a Fine

If a licensee has been ordered by the Commissioner to pay a fine and has failed to pay the fine in full to the Commissioner by the deadline set by this Rule or by the Commissioner, the licensee shall be immediately cited for a violation of this Rule.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 805-3.0 Appeals

The provisions of this Rule shall not apply to a licensee who has appealed from the decision of the Commissioner so long as the appeal is pending. Unless the fine is increased or decreased by order of the Commissioner, the licensee who is still required to pay a fine after an appeal is finalized, shall have fourteen days from the date the appeal is finalized to pay the fine in full to the Commissioner, counting the date the appeal is finalized as the first day.

History

• 19 DE Reg. 775 (02/01/16)

900 Trade Practices for Suppliers, Wholesales, and Retailers

Rule 901 (Formerly Rule 46) A Rule Governing the Contractual Relationships Between Suppliers and Wholesalers for the Distribution of Alcoholic Beverages

4 Del. Admin. Code § Rule 901-1.0 Preamble {#sec-rule-901-1.0 omnilex-key=us-de-regs-official--title-4--Rule 901-1.0}

Historically, in Delaware the distribution of particular brands of alcoholic beverages has been accomplished through dealings between an out-of-state supplier (i.e., distiller, vintner, brewer, manufacturer, rectifier or other business entity) licensed to supply alcoholic beverages into Delaware and one Delaware wholesaler (also sometimes referred to as an importer or distributor) licensed to sell and distribute alcoholic beverages to Delaware retailers. These exclusive relationships between suppliers and wholesalers have, through the years, proven to be an efficient and economical means of distribution in Delaware. Until recently such exclusive relationships had been utilized to the virtual exclusion of other methods of distribution. Today, exclusivity still remains the preferred method of distribution for the vast majority of brands being sold in Delaware.

Over the years, in reliance on the suppliers' custom and practice of establishing and maintaining exclusive distribution relationships, Delaware wholesalers have made substantial investments of time and money in efforts to promote and sell the suppliers' brands. As early as 1959, the Commissioner realized that some safeguards were necessary to protect wholesalers from arbitrary, discriminatory or otherwise unfair termination of the supplier/wholesaler relationship by national or international suppliers wielding far greater economic power than the local wholesalers. The Commissioner realized then, as the Commissioner does today, that should such abusive practices be permitted to occur, the adverse impact could be felt well beyond the affected wholesaler. As a result of the Commissioner’s concerns, the Commissioner promulgated the original version of Rule 46 in 1959. The Rule was substantially revised in 1981 in an effort to provide more detailed criteria to govern the supplier/wholesaler relationship.

It is the Commissioner's view that the Rule has effectively regulated the relationships between out-of-state suppliers and Delaware wholesalers during much of this decade. Nevertheless, because of changes which have been occurring within the industry itself, and because the Commissioner has had several recent opportunities to review the Rule in intricate detail in differing contexts, the Commissioner has become convinced that certain issues must be addressed by means of the promulgation of a new Rule 46.

Specifically, over the last several years the supplier tier of the beverage alcohol industry has experienced widespread consolidation on a national and international scale. In several instances, this phenomenon has had a significant effect on supplier/wholesaler relationships in Delaware. Therefore, Rule 46 is being revised to recognize and address equitably the interests of both parties in such situations.

Another recent change affecting supplier/wholesaler relationships in Delaware has been the interest expressed by several suppliers in implementing systems of "dual distribution" (i.e., distribution of a particular brand or brands of alcoholic beverages by more than one wholesaler in the same geographic area). As a result, Rule 46 is being revised specifically to address issues related to this method of distribution.

Experience has also convinced the Commissioner that Rule 46 should provide suppliers with the ability to terminate an unwanted distribution relationship even in circumstances where the "good cause" requirements of the Rule cannot, be satisfied. Providing this flexibility is necessary in order to allow suppliers to adapt their systems of distribution to changing market conditions or otherwise to respond to legitimate business considerations. Therefore, the Rule is also being revised to allow for the termination or transfer of distribution rights even in those instances where "good cause" does not exist provided that the terminated wholesaler receives reasonable compensation from the supplier in recognition of its efforts to promote and sell the supplier's brands.

Finally, this new Rule attempts to define more clearly the "good cause" criteria which must be satisfied in order to permit the uncompensated termination or transfer of distribution rights from one wholesaler to another.

For the reasons stated and pursuant to the Commissioner’s statutory authority, the Commissioner promulgates new Rule 46 in an effort to strike an equitable balance between the sometimes conflicting interests of out-of-state suppliers and Delaware wholesalers, as well as to allow, to the extent practicable, business parties to determine the nature and the extent of their contractual relationships free from governmental intervention. In so doing, the Commissioner intends to further the interests of the State and its people in maintaining a healthy, efficient and competitive alcoholic beverage industry - one in which consumers are assured a wide range of products at reasonable prices.

4 Del. Admin. Code § Rule 901-2.0 Requirements for Importing Alcoholic Beverages Into Delaware {#sec-rule-901-2.0 omnilex-key=us-de-regs-official--title-4--Rule 901-2.0}

2.1 No out-of-state supplier of alcoholic beverages shall ship or caused to be shipped into Delaware any alcoholic beverages unless all of the following requirements have been satisfied:

2.1.1 It shall have obtained from the Commissioner an Out-of-State Supplier's license as required by 4 Del.C. §501;

2.1.2 It shall submit the following information to the Commissioner and to each affected wholesaler in writing:

2.1.2.1 the name and address of each licensed wholesaler in Delaware with which it has contracted;

2.1.2.2 the brand or brands of alcoholic beverages which it intends to distribute in Delaware;

2.1.2.3 a statement as to whether the distribution rights being conferred on each wholesaler are exclusive; and

2.1.2.4 if in writing, a copy of the distribution contract, between it and the licensed wholesaler(s);

2.1.3 It shall ship such alcoholic beverages only to a wholesaler or wholesalers licensed by the Commissioner; and

2.1.4 It shall agree to comply with all applicable requirements of this Rule. (Noncompliance with the requirements of subsection 2.1 prior to shipping alcoholic beverages into the State shall subject the supplier to the imposition of such administrative sanctions as the Commissioner deems warranted.)

2.2 No wholesaler licensed by the Commissioner shall order or receive any alcoholic beverages from an out-of-state supplier which has not complied with the requirements contained in subsection 2.1 of this Rule.

4 Del. Admin. Code § Rule 901-3.0 General Principles {#sec-rule-901-3.0 omnilex-key=us-de-regs-official--title-4--Rule 901-3.0}

3.1 A licensed supplier having a contract (this term is also intended to include all agreements, understandings or other arrangements, whether written or oral) with a licensed wholesaler for the distribution in Delaware of a brand or brands of alcoholic beverages, which brand or brands have been recorded with the Commissioner as required by subsection 2.1.2 of this Rule, may terminate the distribution rights and transfer such rights to another licensed wholesaler upon the voluntary agreement of both wholesalers (i.e., a voluntary termination and transfer). In the event of such a voluntary termination and transfer, the supplier shall provide written notice of that fact to the Commissioner indicating that the affected wholesalers have both agreed to the termination and transfer. A copy of the supplier's notification letter to the Commissioner shall be provided to both wholesalers.

3.2 In the event that a licensed wholesaler does not agree to the termination or transfer of its distribution rights (i.e., an involuntary termination or transfer), the supplier may terminate or transfer said rights only in accordance with the applicable provisions of this Rule.

3.3 A licensed supplier already supplying a brand or brands of alcoholic beverages in Delaware by means of a single wholesaler may commence the "dual distribution" of such product(s) only after compliance with the applicable provisions of this Rule.

3.4 A licensed supplier which seeks to introduce a new brand or brands of alcoholic beverages into Delaware may distribute such products through more than one licensed wholesaler provided that by so doing it does not violate any provision of an applicable distribution contract between it and any licensed wholesaler, and that it satisfies the requirements contained in subsection 2.1 of this Rule.

4 Del. Admin. Code § Rule 901-4.0 Contracts {#sec-rule-901-4.0 omnilex-key=us-de-regs-official--title-4--Rule 901-4.0}

4.1 Contracts involving the distribution of alcoholic beverages in Delaware between a licensed out-of-state supplier and a licensed wholesaler may be written or oral.

4.2 No contract for the distribution of alcoholic beverages shall be supported by the exchange of $100 or more.

4.3 All contracts subject to this Rule shall continue in effect until voluntarily terminated or until any involuntary termination, transfer or substantial modification of the distribution rights granted by such contracts has been approved by the Commissioner.

4.4 Every contract for the distribution of alcoholic beverages in Delaware between a licensed out-of-state supplier and a licensed wholesaler shall contain, or be deemed to contain, all of the provisions of this Rule.

4 Del. Admin. Code § Rule 901-5.0 Procedure for Involuntary Termination or Transfer {#sec-rule-901-5.0 omnilex-key=us-de-regs-official--title-4--Rule 901-5.0}

5.1 Any licensed supplier which desires to terminate involuntarily the distribution rights of a licensed wholesaler or to transfer such rights from one licensed wholesaler to another shall submit a written request to the Commissioner at least sixty days prior to the proposed termination or transfer date.

5.1.1 Upon written request, a copy of which shall be provided to the affected wholesaler, the sixty-day notice provision may be waived by the Commissioner if the reason for the requested termination or transfer is the insolvency of the wholesaler, the occurrence of an assignment for the benefit of the wholesaler's creditors, the bankruptcy of the wholesaler, the dissolution or liquidation of the wholesaler, the cancellation, revocation, nonrenewal or suspension for more than thirty consecutive days of the wholesaler's license, or, if the supplier can otherwise establish to the satisfaction of the Commissioner that compliance with the sixty day notice requirement would cause it to suffer irreparable harm.

5.1.2 The requirement of this section that the supplier provide the Commissioner with a written request to terminate or transfer distribution rights is applicable to, and includes, those circumstances whereby the supplier has obtained the rights to supply such alcoholic beverages in Delaware by means of a merger, purchase of stock, purchase of assets, or other acquisition, or by otherwise becoming a new regional or national supplier of such products. Any supplier obtaining such rights to supply alcoholic beverages in Delaware does so subject to the existing distribution arrangement and rights existing in Delaware with respect to such beverages.

5.2 The written request to terminate or transfer distribution rights required by subsection 5.1 shall include all of the following information:

5.2.1 The name and address of the existing wholesaler from which the supplier seeks to withdraw the distribution rights, and the name(s) and address(es) of the wholesaler(s) upon which the distribution rights are sought to be conferred;

5.2.2 The reason and basis for the request; and,

5.2.2.1 In the event that good cause is relied upon for such termination or transfer, a summary of the facts giving rise to the assertion of good cause; or

5.2.2.2 In the event that good cause is not the basis for the request, the agreement to pay compensation and to abide by arbitration, if necessary, as provided by this Rule, together with a-representation that the request does not violate any of the terms of the distribution agreement with the existing wholesaler.

5.3 If good cause is the basis for the request to terminate or transfer distribution rights, the supplier shall provide a copy of the notice required by subsection 5.2 by certified mail, return receipt requested, to any wholesaler affected by its request. Any adversely affected wholesaler may oppose the request by sending written notice of its opposition to the Commissioner by certified mail, return receipt requested, within twenty days after receipt of its copy of the supplier's request. A copy of the notice of opposition shall also be sent to the supplier and any other affected wholesaler(s). The failure to file a timely notice of opposition with the Commissioner shall waive the wholesaler's right to oppose the request to terminate or transfer distribution rights. If the Commissioner receives timely notice of opposition to a request to terminate or transfer distribution rights for good cause, the Commissioner shall hold a hearing to consider the request and the opposition thereto.

5.4 If good cause is not the basis for the request to terminate or transfer distribution rights, the supplier shall provide a copy of the notice required by subsection 5.2 by certified mail, return receipt requested, to any wholesaler affected by its request. Following the issuance and receipt of such notice, the parties shall comply with the provisions contained in Section 6.0 of this Rule.

4 Del. Admin. Code § Rule 901-6.0 Reasonable Compensation {#sec-rule-901-6.0 omnilex-key=us-de-regs-official--title-4--Rule 901-6.0}

6.1 Procedure for determining compensation

6.1.1 A supplier may terminate or transfer distribution rights from an existing wholesaler without good cause upon the payment to the existing wholesaler of reasonable compensation for the value of the wholesaler's business related to the terminated or transferred brand or brands. For purposes of determining reasonable compensation under this Rule, the value of the wholesaler's business shall be deemed to be the inventory at laid-in cost of the terminated or transferred brand or brands and its associated good will. "Associated good will" is defined as 1.0 times the wholesaler's average annual gross profits on the terminated or transferred brand or brands for the last three fiscal years or such lesser period during which the brand or brands have been distributed by the terminated wholesaler. For purposes of this Rule "gross profits" shall mean selling price less F.O.B., taxes and freight.

6.1.2 If the contract between a supplier and the existing wholesaler from which the supplier seeks to withdraw the distribution rights provides for an amount of compensation greater than that provided for by this Rule, the supplier shall be required to compensate the existing wholesaler in that greater amount prior to terminating or transferring such rights.

6.2 Neutral arbitrator

6.2.1 In the event that a supplier and its existing wholesaler are unable to agree on the amount of reasonable compensation to be paid by the supplier in accordance with subsection 6.1 within twenty days after the wholesaler receives a copy of the supplier's request to terminate or transfer distribution rights, as required by subsection 5.4, the dispute shall be submitted to a neutral arbitrator selected by the parties. If they cannot agree on an arbitrator within an additional twenty days, upon the request of either party, the arbitrator shall be appointed by the Commissioner.

6.2.2 By becoming a party to any distribution contract governed by this Rule, such party agrees in advance to proceed to arbitration in accordance with the provisions of this Rule and to recognize the arbitrator as a subordinate designated by the Commissioner to conduct a hearing on the issue of reasonable compensation in accordance with the applicable provisions of the Administrative Procedures Act, 29 Del.C. Ch. 101.

6.2.2.1 Upon agreement of the parties, the arbitrator may conduct an informal conference in lieu of a formal hearing in accordance with 29 Del.C. §10123.

6.2.2.2 In the case of an informal hearing, as in the case of a formal hearing, a record from which a verbatim transcript can be prepared shall be made.

6.2.3 The written decision of the arbitrator shall be submitted to the Commissioner which shall issue a final order in accordance with the applicable provisions of the Administrative Procedures Act.

6.2.4 The costs of arbitration shall be borne equally by the parties.

6.3 Effective date of termination or transfer

6.3.1 Any termination or transfer of distribution rights for which compensation is required under this Rule shall not be effective and shall not be permitted until the supplier has paid the required compensation to the wholesaler which is having its rights terminated or transferred, unless the supplier posts a bond in the amount of the required compensation, as determined by the final order of the Commissioner.

6.3.2 A supplier may post a bond in the amount of the required compensation during the pendency of an appeal taken by any party affected by the compensation decision. Upon posting of the bond, the termination or transfer of distribution rights may take place.

4 Del. Admin. Code § Rule 901-7.0 Good Cause for Involuntary Termination or Transfer {#sec-rule-901-7.0 omnilex-key=us-de-regs-official--title-4--Rule 901-7.0}

7.1 Notwithstanding the provisions of the distribution contract between the parties, when, for good cause, a licensed supplier seeks to withdraw involuntarily distribution rights for alcoholic beverages already being sold in this State from a licensed wholesaler by termination of the relationship, transfer of brands or otherwise, and to confer those distribution rights on another licensed wholesaler, the Commissioner shall not approve the request unless the supplier establishes that "good cause", as defined in this Rule, exists to permit such termination or transfer as a result of the acts or omissions of the existing wholesaler.

7.2 Because good cause can only be established based upon the acts or omissions of the existing wholesaler, it is not a sufficient basis that a supplier has obtained the rights to supply such alcoholic beverages in Delaware by means of a merger, purchase of stock, purchase of assets, or other acquisition, or by otherwise becoming the new regional or national supplier of such products. Any supplier obtaining such rights does so subject to the existing distribution relationship in Delaware for such alcoholic beverages.

7.3 The term "good cause" as used in this Rule shall include:

7.3.1 The failure or refusal of the wholesaler to comply substantially with a material provision of the distribution contract (including any provision establishing standards of performance), which provision is essential, fair and reasonable, after having received written notice of such failure from the supplier and having failed within sixty days thereafter to correct substantially such deficiency; provided, however, that such notice and opportunity to correct the deficiency is not required when the deficiency results from a licensed wholesaler's (i) felony conviction, (ii) fraudulent conduct, (iii) sales of the supplier's brands outside of its agreed upon sales territory, or (iv) failure to pay and continued failure to make payment to the supplier after receipt of written notice of the delinquency and demand for payment within the period of time agreed upon by the parties or ten business days, whichever is greater.

7.3.2 In the absence of any express provision in the distribution contract establishing standards of performance, the failure of the wholesaler to meet reasonable and fair standards of performance based upon the custom and practice of the industry, after having received written notice of such failure from the supplier and having failed within sixty days thereafter to correct substantially such deficiency; provided, however, that such notice and opportunity to correct the deficiency is not required when the deficiency results from a licensed wholesaler's (i) felony conviction, (ii) fraudulent conduct, (iii) sales of the supplier's brands outside of its agreed upon sales territory, or (iv) failure to pay and continued failure to make payment to the supplier after receipt of written notice of the delinquency and demand for payment within the period of time agreed upon by the parties or ten business days, whichever is greater.

7.3.3 The insolvency or bankruptcy of the wholesaler;

7.3.4 The dissolution or liquidation of the wholesaler's business;

7.3.5 The loss for more than thirty consecutive days by the wholesaler of any federal or state license necessary to carry out the provisions of the distribution contract between the parties whether by revocation, cancellation, failure to renew, suspension, or otherwise;

7.3.6 The assignment, transfer or sale of the ownership or substantial assets of the wholesale licensee's business whenever the wholesaler to be substituted is financially unable to assume the obligations under the distribution contract, or lacks the business experience or qualifications necessary to protect the legitimate interests of the supplier. The burden of establishing such inability shall be upon the supplier.

4 Del. Admin. Code § Rule 901-8.0 Dual Distribution {#sec-rule-901-8.0 omnilex-key=us-de-regs-official--title-4--Rule 901-8.0}

8.1 The terms "dual" and "dualing" as used in this Rule mean the distribution of the same brand or brands of alcoholic beverages in Delaware by more than one wholesaler. The term "dualed wholesalers" identifies those wholesalers handling the brand or brands being dualed.

8.2 A supplier may supply a new brand or brands of alcoholic beverages in Delaware by dualing such brand or brands provided that no provision of any applicable distribution contract prohibits dualing the product(s), and further provided that the supplier complies with the requirements of subsection 2.1 of this Rule.

8.3 A supplier which is already supplying a brand or brands of alcoholic beverages in Delaware as a result of a distribution relationship with one wholesaler may confer dual distribution rights to the product(s) upon one or more additional wholesalers provided that no provision of the original distribution contract prohibits dualing, and further provided that the supplier complies with the requirements contained in subsection 8.4 of this Rule.

8.4 If any supplier which is already supplying a brand or brands of alcoholic beverages in Delaware as a result of a distribution relationship with one wholesaler desires to dual such product(s), such supplier shall provide written notice to the Commissioner and all affected wholesalers at least sixty days prior to the proposed start of the dualing. Such written notice shall contain all of the following:

8.4.1 The name of the brand or brands which it seeks to dual and the name and address of the wholesaler selling the product(s) at the time of the request;

8.4.2 The names and addresses of those wholesalers through which it seeks to dual the brand or brands;

8.4.3 A representation that the request to dual is based upon a valid bona fide business reason or reasons of the supplier, and a description of the business reason or reasons giving rise to the request;

8.4.3.1 Reasons that do not constitute "valid bona fide business reasons" include, but are not limited to, the desire to avoid the requirement of establishing good cause for a termination or transfer of distribution rights; the desire to avoid paying compensation for a termination or transfer of distribution rights; any other circumstances that cause it to appear to the Commissioner that the request to dual is merely an attempt to circumvent any of the provisions of this Rule.

8.4.4 A representation that the distribution contract with the existing wholesaler of the brand or brands sought to be dualed permits it to dual such products; and

8.4.5 A representation that it will offer the dualed product(s) upon the same terms and conditions to every dualed wholesaler. No special terms, discounts or conditions shall be afforded to one wholesaler which are not afforded to all dualed wholesalers.

8.5 Any existing wholesaler which is affected by a supplier's request to begin dual distribution of a brand or brands may oppose the request by sending written notice of its opposition to the Commissioner by certified mail, return receipt requested, within twenty days after its receipt of a copy of the supplier's request. A copy of the notice of opposition shall also be sent to the supplier and every other affected wholesaler. The failure to file a timely notice of opposition with the Commissioner shall waive the wholesaler's right to oppose the supplier's request to dual its product(s).

8.6 If the Commissioner receives a timely notice of opposition to a supplier's request to begin the dual distribution of a brand or brands, the Commissioner shall hold a hearing to consider the request and the opposition thereto. The supplier shall not be permitted to begin the dual distribution of its product(s) until such time, following the hearing, as the Commissioner determines that it has complied with the requirements of this Rule and approves the request.

Rule 902 (Formerly Rule 13) Labeling, and Standards of Identity and Standards of Fill of Alcoholic Liquors

4 Del. Admin. Code § Rule 902-1.0 Purpose and Scope. {#sec-rule-902-1.0 omnilex-key=us-de-regs-official--title-4--Rule 902-1.0}

This rule is intended to reduce obstacles to commerce in alcoholic liquors by adopting, to the extent possible under the Liquor Control Act, 4 Del. Code, federal laws and regulations relating to labeling, standards of identity, and standards of fill of alcoholic liquors. This rule applies to all alcoholic liquors manufactured, bottled, packaged, sold, imported, received, and stored for resale in the State of Delaware.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 902-2.0 Labeling. {#sec-rule-902-2.0 omnilex-key=us-de-regs-official--title-4--Rule 902-2.0}

It shall be unlawful for any person to manufacture, bottle, package, sell, import, receive, or store for resale in this State alcoholic liquors, unless such liquors are labeled in conformity with federal laws and regulations applicable to such alcoholic liquors. It shall not be necessary for a manufacturer or supplier to file with the Commissioner evidence of label approval by an agency of the United States, except upon written request by the Commissioner.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 902-3.0 Standards of Identity. {#sec-rule-902-3.0 omnilex-key=us-de-regs-official--title-4--Rule 902-3.0}

It shall be unlawful for any person to manufacture, bottle, package, sell, import, receive, or store for resale in this State alcoholic liquors, unless such liquors conform to the standards of identity provided by federal laws and regulations applicable to such alcoholic liquors.

History

• 19 DE Reg. 775 (02/01/16)

Rule 903 (Formerly Rule 8.1) A Rule Governing the Shipment and Storage of Alcoholic Liquors by Suppliers and Wholesalers

4 Del. Admin. Code § Rule 903-1.0 Purpose {#sec-rule-903-1.0 omnilex-key=us-de-regs-official--title-4--Rule 903-1.0}

1.1 This amended rule is promulgated, in part, pursuant to the Commissioner's authority to regulate time, place, and manner in which alcoholic liquor is sold or dispensed, and provides regulations for the marking of vehicles used by licensed importers for the transportation of alcoholic liquor. It also establishes standards for the distribution of alcoholic liquor by importers to establishments licensed by the Commissioner for the sale of alcoholic liquor.

1.2 In addition, the Commissioner has found, pursuant to the Commissioner's authority, to promulgate rules and regulations necessary for the enforcement and furtherance of the objectives of 4 Del.C. §501, that all alcoholic liquor imported into this state must be unloaded and physically stored for a reasonable period of time to allow for enforcement of the regulatory provisions of the Liquor Control Act and Commissioner Rules. This rule, therefore, implements and clarifies 4 Del.C. §501(f) as to what period of time alcoholic liquors must be physically stored after it is unloaded in order to comply with 4 Del.C. §501(f) and all other provisions of Title 4, the Liquor Control Act, and the Commissioner Rules and Regulations promulgated thereto.

1.3 Specifically, the Commissioner has found that seventy-two (72) hours is a reasonable "at-rest" period of time to enable the DATE to carry out its statutory duties to inspect and inventory licensed Delaware warehouses.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 903-2.0 Definitions: As Used in this Rule {#sec-rule-903-2.0 omnilex-key=us-de-regs-official--title-4--Rule 903-2.0}

"Establishment" means any place located physically in this state where alcoholic liquor of one or more varieties is stored, sold, or used by authority of any law of this state, or where alcoholic liquor of one or more varieties is manufactured by virtue of any law of this state.

"Importer" shall mean wholesaler and shall be located within the State of Delaware."

Supplier" may be a brewery, winery, distiller, alcoholic beverage importer, or alcoholic beverage broker that sells alcoholic beverages to Importers of the State of Delaware. A supplier's organization may be located within or without the State of Delaware.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 903-3.0 Procedures {#sec-rule-903-3.0 omnilex-key=us-de-regs-official--title-4--Rule 903-3.0}

3.1 Importer's vehicles, in which alcoholic beverages are shipped into and throughout Delaware, shall have painted on both of their sides the name of the importer and the words "Delaware Alcoholic Beverage Control Commissioner - License Number ........." (Insert the importer's license number) in letters at least two inches high, uncovered, and clearly visible.

3.2 Vehicles owned by suppliers in which alcoholic beverages are shipped into Delaware, need not have the name of the Commissioner or the Delaware licensed importer's license number affixed to the side of the vehicle.

3.3 Vehicles owned by suppliers shall not be used for delivery of alcoholic beverages to retailers in the State of Delaware.

3.4 No peddling shall be allowed. Definite orders for all alcoholic beverages shipped from an Importer's warehouse shall have been received from customers before the loaded vehicles leave the warehouse.

3.5 No alcoholic beverages in excess of that ordered shall be carried on the vehicles.

3.6 A statement showing the destination of each package of alcoholic beverages shall be furnished the driver and carried by over the route.

3.7 Upon the driver's return to the warehouse, the driver shall sign the statement showing the alcoholic beverages have been delivered to the destination listed. This statement shall be available for inspection by the Commissioner at all times.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 903-4.0 Importers' Warehouses {#sec-rule-903-4.0 omnilex-key=us-de-regs-official--title-4--Rule 903-4.0}

4.1 Importers may have one or more warehouses in different locations within the State of Delaware provided proper application for such extra warehouse(s) is filed and approved by the Commissioner.

4.2 The person in charge of an Importer's warehouse must be approved by the Commissioner.

4.3 All Importers' warehouses used for the storage of alcoholic liquor, except public cold storage establishments, must be either owned or rented directly by the Importer or a business entity in which the Importer maintains complete ownership. The person in charge of the importer's warehouse is to be upon the regular salary list or payroll of such Importer.

4.4 The Importer is responsible for ensuring compliance with the Liquor Control Act and Commissioner Rules at all premises licensed in its name by the Commissioner.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 903-5.0 Hours of Delivery {#sec-rule-903-5.0 omnilex-key=us-de-regs-official--title-4--Rule 903-5.0}

5.1 Delivery trucks and other vehicles of an Importer, licensed by the Commissioner for the delivery of alcoholic liquor to licensed retail establishments, may leave the warehouse after five o'clock in the morning on any day when deliveries of alcoholic liquors are permitted; provided, however, that no actual delivery of beer, spirits, or wine to any licensed establishment is permitted before seven o'clock in the morning and no Importer may require a Retailer to accept deliveries prior to nine o'clock in the morning.

5.2 Delivery trucks or other vehicles may operate as late as necessary to properly deliver orders; provided the trucks or other vehicles leave the warehouse prior to five-thirty o'clock in the afternoon, other than during the period from December 10 to December 31 when the trucks or other vehicles shall be permitted to leave the warehouse prior to eight o'clock in the evening.

5.3 There shall be no delivery of beer, spirits, or wine on any holiday specified in 4 Del.C. §709 (d).

5.4 Deliveries of alcoholic liquor by Importers, or their authorized representatives, to retail establishments, at any time not permitted by this rule is prohibited.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 903-6.0 The "At-Rest Requirement" [4 Del.C. Section 501(f)] {#sec-rule-903-6.0 omnilex-key=us-de-regs-official--title-4--Rule 903-6.0}

6.1 A licensed Delaware Importer shall not import alcoholic liquor into the State of Delaware unless said alcoholic liquor is delivered directly from a Delaware licensed supplier by either the supplier, the Importer, or common carrier to a licensed Delaware warehouse or warehouses.

6.2 Said licensed Delaware warehouse or warehouses must be owned, leased, or operated in accordance with subsection 4.3 of this rule.

6.3 All alcoholic liquor delivered to said warehouse or warehouses must be unloaded and physically stored for a period of at least eighteen (18) hours.

6.4 The minimum period of eighteen (18) hours "at rest" is required to enable the Commissioner, or DATE, to inspect and inventory wholesale warehouses for the purpose of verifying taxes that are required to be paid on alcoholic liquor purchased by Importers, pursuant to 4 Del.C. §581(a) and Delaware Alcoholic Beverage Control Commissioner Rule 601.

6.5 Variances of the eighteen (18) hour storage requirement may be granted for good cause if formally made in writing and submitted to the Commissioner.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 903-7.0 Inspections and Inventories {#sec-rule-903-7.0 omnilex-key=us-de-regs-official--title-4--Rule 903-7.0}

Pursuant to 4 Del.C. §304 (A)(2) and (5) and 4 Del.C. §581(c), DATE and the Division of Revenue may inspect the establishment of any licensed Delaware Importer and inventory any or all alcoholic liquor in the Importer's possession at any time they deem reasonable and necessary to carry out their statutory duties to verify the reporting and collection of taxes payable to the State of Delaware.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 903-8.0 Interstate Shipments {#sec-rule-903-8.0 omnilex-key=us-de-regs-official--title-4--Rule 903-8.0}

8.1 Every person in charge of transportation by motor vehicle, by railroad, by water vessel, by common carrier, or by any other vehicle that transports alcoholic beverages in or through the State of Delaware in an interstate shipment shall have a way bill. The carrier must have in his possession the way bill and be prepared to present it when asked.

8.2 The way-bill shall embody these written or printed terms:

8.2.1 The date of its issue.

8.2.2 The name and address of the consignor.

8.2.3 The name and address of the consignee.

8.2.4 A statement as to whether the goods will be delivered to a specified person or to the order of a specified person.

8.2.5 A description of the package, stating the number and contents.

8.2.6 The signature of the carrier or his duly authorized agent.

History

• 19 DE Reg. 775 (02/01/16)

Rule 904 (Formerly Rule 29) Publication of Prices and Post-offs By Importers (a.k.a."Wholesalers")

4 Del. Admin. Code § Rule 904-1.0 Applicability {#sec-rule-904-1.0 omnilex-key=us-de-regs-official--title-4--Rule 904-1.0}

This regulation shall govern the procedure by which all licensed wholesalers notice prices, post-offs, and quantity discounts of alcoholic liquor offered for sale to licensed Delaware retailers. The sale of all alcoholic liquor in Delaware by wholesalers to retailers must conform to the provisions of this regulation. In addition, this regulation shall govern the procedure by which records relating to post-offs and quantity discounts are maintained.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 904-2.0 Definitions {#sec-rule-904-2.0 omnilex-key=us-de-regs-official--title-4--Rule 904-2.0}

“Designated Publication” means the single publication agreed to be used by a majority of the licensed Delaware Wholesalers for the compilation of monthly price lists for all alcoholic liquor prices, post-offs, and quantity discounts offered for sale to Delaware licensed retailers. In the absence of a clear majority voting to change the existing publication, the publication will remain the publication that is in effect at the time of the vote.

“Monthly Price List” means the monthly price listing prepared by, or on behalf of, a Delaware licensed wholesaler for all alcoholic liquor prices, post-offs, and quantity discounts offered for sale to Delaware licensed retailers. The monthly price list shall contain the presumptive price, but may be superseded by any subsequent updated notification issued by the wholesaler, provided the DATE and the Commissioner are notified of the updated listing.

“Post-Off” means a reduction in the price regularly charged by wholesalers, as published to the trade, which is sold by wholesalers to licensed retailers.

“Price” means the amount of money given or set as consideration for the sale of a specified order of alcoholic liquor.

“Quantity Discount” means a reduction in the price regularly charged by wholesalers, as published to the trade, which is sold by wholesalers to licensed retailers and is based on whole or in part on the quantity of alcoholic liquor purchased.

“Retailer” means all establishments licensed by the Commission to sell alcoholic liquor directly to the public.

“Updated Notification” means notification of changes to prices, post-offs and quantity discounts made after the submission of the monthly Price List to the designated publication.

“Wholesaler” means licensed Delaware Importer (a.k.a."wholesaler").

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 904-3.0 Procedures for Providing Notice of Prices, Post-Offs, and Quantity Discounts {#sec-rule-904-3.0 omnilex-key=us-de-regs-official--title-4--Rule 904-3.0}

3.1 Every wholesaler shall prepare a monthly price list of all alcoholic products they intend to offer for sale during the next month. This monthly price list shall include regular prices, as well as post-offs and quantity discounts, if offered. The monthly price list shall be printed in a publication designated by a majority of licensed Delaware Wholesalers not less than five (5) business days prior to the end of the preceding month.

3.2 A copy of the monthly price list shall also be filed with DATE (via hard copy and/or electronically) when submitted to the designated publication. The prices stated therein shall be the "presumptive price," subject to change, revision, substitution, or addition in accordance with the updated notification procedures set forth herein.

3.3 In the event of a change in the price from that set forth in the monthly price list, the wholesaler shall provide Updated Notification, to all licensed retailers, and to the Division (via hard copy and/or electronically (including e-mail)) Updated Notification shall be made by a wholesaler to all licensed retailers via a recorded message, accessible through a toll-free "800" number, which can be accessed by any licensed retailer 24 hours a day to obtain information regarding current pricing of items being offered by the wholesaler. The "800" number will be updated every Monday by 10:00 A.M.: provided however, notwithstanding anything in this regulation to the contrary, that any wholesaler may change prices at any time by mailing a pricing announcement to all retailers and the Division by U.S. mail. In the event of a conflict between the recorded message and the mailed notice, the lower price will control. In addition, the wholesaler shall advise the Division of prices offered in the "800" number at the time any change is made to the recorded message.

3.4 Upon Petition of an interested party, the Commissioner may approve an alternative procedure(s) for providing notice of prices, post-offs and quantity discounts where the petitioner demonstrates that (1) the alternative method is technologically feasible, (2) will provide sufficient notice of prices, post-offs and quantity discounts to Delaware retailers and to DATE, and (3) will not harm the public interest.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 904-4.0 Procedures for Providing Notice of Prices for New Products {#sec-rule-904-4.0 omnilex-key=us-de-regs-official--title-4--Rule 904-4.0}

4.1 Prices of new brands, types, or sizes shall be effective after the wholesaler has given the required notice in writing to the trade industry, as follows:

4.1.1 By mailing a pricing announcement directly to all retail licensees of the trade and DATE by United States mail, or

4.1.2 By inclusion of prices in the monthly price list submitted to the designated publication as heretofore described, or

4.1.3 By including notice thereof in the form of Updated Notification, as described in subsection 3.3 above.

4.2 Newly listed or changed prices shall continue from their effective date until changed by the wholesaler in accordance with the procedures established by this regulation. The duration of the prices set for post-offs and quantity discounts of new products shall be the effective dates listed in the new product pricing announcement, the monthly price list, and/or in the Updated Notification.

4.3 Alternative methods for providing notice of prices for new products may be approved by the Commissioner in the same manner set forth in subsection 3.4 of this regulation.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 904-5.0 Duty of Wholesalers to Fill Orders {#sec-rule-904-5.0 omnilex-key=us-de-regs-official--title-4--Rule 904-5.0}

5.1 The procedure and regulations for licensed wholesalers who offer post-offs or quantity discounts to licensed retailers shall be as follows:

5.1.1 Licensed wholesalers shall not discriminate among licensed retailers in filling orders for post-offs or quantity discounts.

5.1.2 Licensed wholesalers must honor the orders placed by licensed retailers for post-offs and quantity discounts in the sequential order in which they are placed, unless excused from doing so by the Commissioner upon proof of good cause.

5.1.3 If a licensed wholesaler is unable to fill the first order of a retailer for a post off or quantity discount due to the depletion of its stock, the retailer shall have the option of having the order filled at the same price offered during the post-off or quantity discount period when stock is next available, or of purchasing a suitable substitute product of comparable value if the wholesaler chooses to offer a substitute product.

5.1.4 Licensed wholesalers shall deliver all alcoholic liquor products offered for sale as post-offs or quantity discounts to the purchasing licensed retailer within five (5) working days, not including weekends or legal holidays, of the last date that the post-off or quantity discount is offered.

5.1.5 Notwithstanding anything within this regulation to the contrary, offers of distressed items in quantities of more than 10 cases shall be made on a "first come/first serve" basis, subject to the requirement that Updated Notification of such post-off be given. Distressed items, excluding beer, in quantities of 10 cases or less shall not be subject to the Updated Notification requirements of these regulations and may be offered for sale to any retail licensee at the licensed wholesaler's discretion. For purposes of this subsection: 1) a distressed item is an alcoholic beverage product subject to close-out and/or expiration, and 2) "first come/first serve" means that orders for alcoholic beverage products are filled in the sequential order by which the orders are received by the wholesaler.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 904-6.0 Procedure for Recording the Sale of Alcoholic Liquor by Wholesalers {#sec-rule-904-6.0 omnilex-key=us-de-regs-official--title-4--Rule 904-6.0}

6.1 Every sale of alcoholic liquor, including post-offs, quantity discounts, and otherwise reduced prices, shall be recorded by the licensed wholesaler on a written invoice or bill of sale containing at a minimum the following:

6.1.1 Name of the wholesaler

6.1.2 Name of the retailer

6.1.3 Date of sale

6.1.4 Quantity of alcoholic liquor sold

6.1.5 Price of alcoholic liquor sold

6.1.6 Brand

6.1.7 Size of container

6.1.8 Date of delivery

6.2 The regular price of alcoholic liquor sold at post-off, quantity discount, or discount pursuant to subsection 5.1.4 above shall also be stated on the bill of sale or invoice, as well as the basis for the discount. All credit(s) associated with the sale of alcoholic liquor must be stated or affixed to the original bills of sale or invoices retained by the licensed retailer and wholesaler.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 904-7.0 Tie-In Sales {#sec-rule-904-7.0 omnilex-key=us-de-regs-official--title-4--Rule 904-7.0}

A requirement by a wholesaler that a retailer purchase one product in order to purchase another is prohibited. This prohibition includes combination sales if one or more products may be purchased only in combination with other products and not individually. However, a wholesaler is not prohibited from selling at a special combination price two or more kinds or brands of products to a retailer, provided: (a) the retailer has the option of purchasing either or both products at the usual price, and (b) the retailer is not required to purchase any product he or she does not want. As to (a) and (b) above, wholesaler licensees shall not be required to sell or deliver beer to a retail licensee in quantities of less than five (5) cases.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 904-8.0 Consortium Buying {#sec-rule-904-8.0 omnilex-key=us-de-regs-official--title-4--Rule 904-8.0}

8.1 Nothing in this regulation shall be deemed to preclude a wholesaler of alcoholic liquor licensed by the Delaware Alcoholic Beverage Control Commissioner from publishing or offering a discount, based upon the quantity of product purchased, to a pool, cooperative, or consortium of two or more licensed retailers, provided that the billing, shipment, transportation, and storage of all related alcoholic liquor conforms with state law and the regulations of the Commissioner. Similarly nothing in this regulation shall be deemed to require a wholesaler of alcoholic liquor to offer post-offs or quantity discounts.

8.2 The delivery of all alcoholic liquor purchased by a pool, cooperative, or consortium of retailers, to its members, must be made by the holder of a license issued by the Commissioner to deliver alcoholic liquor, as required by 4 Del.C. § 701.

History

• 19 DE Reg. 775 (02/01/16)

Rule 905 (Formerly Rule 14) A Rule Governing Alcoholic Liquors Returned to the Manufacturer by the Importer

4 Del. Admin. Code § Rule 905-1.0 Returned Merchandise {#sec-rule-905-1.0 omnilex-key=us-de-regs-official--title-4--Rule 905-1.0}

1.1 Spirits and wine upon which a tax has already been paid and beer which has been delivered to the Importer and which are in the stock of a retail dealer or of an Importer, may be returned to the manufacturer of the merchandise in question, through the Importer who originally brought the merchandise into the state.

1.2 The tax paid upon or recorded on this will be credited to the account of the Importer if the provisions hereinafter noted are complied with.

1.3 The merchandise so returned must be replaced at the time of its return by goods of the same brand, from the same manufacturer, and in the same size containers as the merchandise that is being returned, unless the same brand and same size containers are no longer stocked by the Importer. In such instance, the merchandise may be returned by the importer placing with the request for return an order to the same manufacturer covering at least equal gallonage for what is being returned.

1.4 The Importer desiring to make such replacement shall notify the Commissioner, DATE and the Division of Revenue explaining in detail what the Importer desires to do and an inspector of the Commissioner, DATE or the Division of Revenue will arrange with the Importer to supervise the replacement. Upon the certification of the inspector that the old merchandise has been shipped to the manufacturer and the replacement has been made, a credit of the tax on the returned goods will be applied to the account of the Importer and the Importer in turn will make such adjustment between the Importer and the retailers as may seem proper to them.

1.5 Replacements will necessarily be subject to the same tax as is ordinarily collected.

History

• 19 DE Reg. 775 (02/01/16)

Rule 906 (Formerly Rule 31) A Rule Governing The Return Of Alcoholic Liquor to The Seller After It Has Been Received By The Purchaser

4 Del. Admin. Code § Rule 906-1.0 Returned Merchandise {#sec-rule-906-1.0 omnilex-key=us-de-regs-official--title-4--Rule 906-1.0}

1.1 No licensee, Wholesaler or retailer, shall accept the return of any alcoholic liquors sold by him if the delivery of the alcoholic liquor so sold shall have been accepted by the purchaser after immediate inspection. The purchaser, however, shall have the privilege of making an immediate inspection of the goods before receiving them. If a retail licensee after delivery determines that his order was incorrectly filled, he may return the incorrectly filled part of the order within thirty-six (36) hours after delivery or, with the permission of the Commissioner, at a later date. The Executive Secretary, in his discretion, may grant such permission.

1.2 This restriction shall not apply to alcoholic liquors purchased for a Gathering of Persons which remain on hand after the period for which the license has been issued, nor to alcoholic liquors sold to an individual consumer when returned because of a defect in quality.

1.3 Whenever a retailer’s license terminates for any reason, all unopened and unused alcoholic liquors shall be returned to the Importer from whom originally purchased, but such Importer may with Commissioner approval reject any such alcoholic liquor as not being fit for resale. Upon such a determination, the unsalable alcoholic liquor shall be disposed of or returned to the former licensee as directed by the Commissioner.

1.4 Whenever an Importers license terminates for any reason, the alcoholic liquors shall be disposed of in a manner approved by the Commissioner.

1.5 When the business of any licensee is temporarily suspended, the alcoholic liquors shall be stored or disposed of in a manner approved by tie Commissioner.

History

• Effective: February 2, 1967

Rule 907 (Formerly Rule 43) A Rule Governing Employees of Supplier or Wholesaler Licensees

4 Del. Admin. Code § Rule 907-1.0 Serving as an officer or director and/or being employed {#sec-rule-907-1.0 omnilex-key=us-de-regs-official--title-4--Rule 907-1.0}

1.1 No employee, officer, director, stockholder, member, owner or partner (nor the spouse thereof) of a wholesaler or supplier may at any time serve as an officer or director, and/or be employed in any capacity, with or without compensation by the holder of a license of any other type.

1.2 Nothing herein shall limit the right of an officer, director, stockholder, member, owner or partner (and the spouse thereof) of a wholesaler or supplier to serve as an officer or director of a club which is not operated for profit.

History

• 19 DE Reg. 775 (02/01/16)

Rule 908 (Formerly Rule 2) Prohibited Trade Practices

4 Del. Admin. Code § Rule 908-1.0 Purpose {#sec-rule-908-1.0 omnilex-key=us-de-regs-official--title-4--Rule 908-1.0}

1.1 The Commissioner has concluded that reasonable marketing techniques are acceptable in the liquor industry.

1.2 Promotional activities which tend to encourage excessive and/or uncontrollable consumption of liquor resulting in increased risk to consumers and the general public are not acceptable. Activities which impact adversely on open competition within the industry are not acceptable. This rule seeks to prohibit all such acts.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 908-2.0 Applicability {#sec-rule-908-2.0 omnilex-key=us-de-regs-official--title-4--Rule 908-2.0}

This rule shall govern the trade practices of all retail licenses, on-premise licenses, importer licenses, and supplier licenses issued by the Delaware Alcoholic Beverage Control Commissioner.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 908-3.0 Prohibited Practices {#sec-rule-908-3.0 omnilex-key=us-de-regs-official--title-4--Rule 908-3.0}

3.1 Retail Licensees

3.1.1 On-Premise License. No establishment licensed to sell alcoholic beverages for consumption on the premises where sold shall engage in any trade practice which can reasonably be expected to cause, encourage, or induce a consumer to purchase, receive, or consume alcoholic beverages in excessive amounts or at an unduly rapid rate and shall include, but not be limited to, the following:

3.1.1.1 Giving alcoholic beverages in any form, either directly or indirectly, to any individual, organization, group or other entity except that a licensee may “comp” alcohol to compensate a patron for a failure to provide satisfactory service or product and may donate alcohol to a not-for-profit entity that has received a Gathering license from the Commissioner.

3.1.1.2 Giving any form of cash (medium of exchange), either directly or indirectly, to any individual, organization, group, or other entity if such contribution is conditional upon the purchase and/or consumption of alcoholic beverages.

3.1.1.3 Selling alcoholic beverages at a price which is less than the seller's cost.

3.1.1.4 Promoting, sponsoring, conducting, or participating in any event that is in any way conditional upon or involves consumption of alcoholic beverages.

3.1.1.5 Offering or selling two (2) or more drinks for the regular price of one.

3.1.1.6 Extending credit except as provided in Rule 301 (Formerly Rule 56).

3.1.1.7 Unlimited consumption of alcoholic beverages for a set price. However, caterers, as defined in 4 Del.C. §101(7), and private functions in which the host/hostess pays a set price and which are conducted by invitation on a licensed premises are excluded from this prohibition.

3.1.1.8 Delivering alcoholic beverages to any person who is or who appears to be intoxicated.

3.1.1.9 Soliciting or receiving any items which an importer or supplier licensee is prohibited under subsection 3.2.1.1 or 3.2.1.2 from giving to a retailer.

3.1.1.10 Open bars are generally not permitted pursuant to the provisions of 3.1.1.7 above; however, the Commissioner may grant a variance to this section provided that the licensee meets the criteria that follows:

3.1.1.10.1 The licensee must submit a written request to the Commissioner for a variance in this rule for a specific, planned event.

3.1.1.10.2 Admission to the event must be by ticket only and include the place, time, date, and hours of the event.

3.1.1.10.3 The request for a variance must be received by the Commissioner six (6) weeks in advance of the planned event.

3.1.1.10.4 Food of adequate variety and quantity must be offered as part of the package price for a ticket to the event.

3.1.1.10.5 Non-alcoholic beverages must be available and offered as part of the package price of a ticket for the event.

3.1.1.10.6 The tickets used for each event must contain a statement that the licensee retains the right to discontinue service of alcoholic liquor as required by state law and Delaware Alcoholic Beverage Control Commissioner rules.

3.1.1.10.7 All servers of alcoholic liquor and staff at the event must be trained in compliance with the Delaware mandatory server training law.

3.1.1.10.8 Adequate staff must be on site to monitor drinking by patrons and to take action consistent with state law and Commissioner rules.

3.1.1.10.9 The approval for an open bar by the Commissioner does not authorize the unlimited consumption of alcoholic beverages for a set price. Licensees, therefore, are still required to comply with all other applicable rules and laws, including the prohibition on serving a patron who is intoxicated or appears to be intoxicated and to refuse service of alcoholic liquor to underage patrons.

3.1.1.11 Engaging in any restraint of trade or commerce of this State as prohibited by 6 Del.C. §2103.

3.1.2 Off-Premise License. No establishment licensed to sell alcoholic beverages for consumption not on the premise where sold shall engage in any trade practice which can reasonably be expected to cause, encourage, or induce a consumer to purchase, receive, or consume alcoholic beverages in excessive amounts or at any unduly rapid rate and shall include, but not be limited to, the following:

3.1.2.1 Giving alcoholic beverages in any form, either directly or indirectly, to any individual, organization, group, or other entity, except that wine tasting on those premises properly licensed for such is permitted in accordance with established regulations and compensating a customer for product purchased which is not satisfactory. Further it is permissible for a retailer to donate alcohol to a not-for-profit entity that has obtained a Gathering license from the Commissioner.

3.1.2.2 Selling alcoholic beverages at a price which is less than the seller's cost.

3.1.2.3 Promoting, sponsoring, conducting, or participating in any event in which any gift, prize, service, or other gratuity is received by any consumer and is in any way conditional upon or involves consumption of alcoholic beverages.

3.1.2.4 Extending credit except as provided in Rule 201 (Formerly Rule 56).

3.1.2.5 Delivering alcoholic beverages to any person who is or who appears to be intoxicated.

3.1.2.6 Soliciting or receiving any items which an importer licensee is prohibited under subsections 3.2.1.1 or 3.2.1.2 from giving to a retailer.

3.1.2.7 Engaging in any restraint of trade or commerce of this State as prohibited by 6 Del.C. §2103.

3.2 Importer Licensees

3.2.1 No importer shall engage in any trade practice which can reasonably be expected to injure any retailer through discriminatory practices, nor shall any importer engage in any trade practices which can reasonably be expected to cause, encourage, or induce a consumer to purchase, receive, or consume alcoholic beverages in excessive amounts or at any unduly rapid rate and shall include, but not be limited to, the following:

3.2.1.1 Giving alcoholic beverages in any form, either directly or indirectly, to any individual, organization, group, or other entity except that an importer may donate alcoholic beverages to a not-for-profit entity who has obtained a Gathering license from the Commissioner.

3.2.1.2 Giving any form of cash (medium of exchange) either directly or indirectly, to any individual, organization, etc. except for bona fide contributions to not for profit entities and provided that such contribution is in no way conditional upon the purchase and/or consumption of alcoholic beverages.

3.2.1.3 Requiring any retailer to take and dispose of a certain quota of any alcoholic beverages.

3.2.1.4 Requiring that a retailer purchase one product in order to purchase another or requiring that one or more products may be purchased only in combinations with other products.

3.2.1.5 Engaging in any restraint of trade or commerce of this State as prohibited by 6 Del.C. §2103.

3.2.2 The granting of quantity discounts by wholesalers to retailers shall not be considered an unfair trade practice provided that the wholesaler and retailer comply with the provisions of Rule 904 (Formerly Rule 29.)

3.3 Supplier Licensees

3.3.1 No supplier shall engage in any trade practice which can reasonably be expected to injure any retailer, importer, or other supplier through discriminatory practices, nor shall any supplier engage in any trade practices which can reasonably be expected to cause, encourage, or induce a consumer to purchase, receive, or consume alcoholic beverages in excessive amounts or at an unduly rapid rate and shall include, but not be limited to, the following:

3.3.1.1 Any practice which is not permitted by the Federal Alcohol Administration Act

3.3.1.2 Engaging in any restraint of trade or commerce of this State as prohibited by 6 Del.C. §2103.

History

• 19 DE Reg. 775 (02/01/16)

Rule 909 (Formerly Rule 77) A Rule Pertaining to the License of Direct Shippers

4 Del. Admin. Code § Rule 909-1.0 Purpose {#sec-rule-909-1.0 omnilex-key=us-de-regs-official--title-4--Rule 909-1.0}

For the purpose of fulfilling the requirements set forth by the General Assembly in section 1 of 72 Del.Laws, c.230, to be codified at 4 Del.C §526 effective June 1, 2000, this rule is to set forth the applicable license fee for a Direct Shipper and to establish the procedure for collection and payment of taxes and for delivery of orders via a licensed direct shipper.

4 Del. Admin. Code § Rule 909-2.0 Authority {#sec-rule-909-2.0 omnilex-key=us-de-regs-official--title-4--Rule 909-2.0}

The Delaware Alcoholic Beverage Control Commissioner is authorized pursuant to 4 Del.C. §304(a)(1) and (2) to adopt rules governing the time, place and manner in which alcoholic beverages are sold and dispensed throughout the State.

4 Del. Admin. Code § Rule 909-3.0 Applicability {#sec-rule-909-3.0 omnilex-key=us-de-regs-official--title-4--Rule 909-3.0}

This rule applies to all persons who are licensed as direct by the Commissioner and all licensed wholesalers, licensed retailers, and Delaware residents who deliver or receive sparkling wine, still wine, and/or beer obtained via direct shippers as set forth in 4 Del.C. §526.

4 Del. Admin. Code § Rule 909-4.0 License Fee {#sec-rule-909-4.0 omnilex-key=us-de-regs-official--title-4--Rule 909-4.0}

The license fee for a direct shipper is a biennial fee of one hundred ($100) dollars.

4 Del. Admin. Code § Rule 909-5.0 Taxes {#sec-rule-909-5.0 omnilex-key=us-de-regs-official--title-4--Rule 909-5.0}

Pursuant to 4 Del.C. §581(e), all persons licensed pursuant to 4 Del.C. §526 shall pay to the State of Delaware, Division of Revenue, the tax on such wine and beer sold to Delaware residents at the rates set forth in 4 Del.C. §581(d). Collection and payment of such taxes shall be in a manner consistent with Title 4 of the Delaware Code and the Commissioner's Rules and Regulations.

4 Del. Admin. Code § Rule 909-6.0 Delivery {#sec-rule-909-6.0 omnilex-key=us-de-regs-official--title-4--Rule 909-6.0}

Wine and beer ordered pursuant to 4 Del.C. §526 will be delivered at the licensee's place of business by a Delaware off-premises retail licensee to a Delaware resident consistent with Title 4 of the Delaware Code and the Commissioner's Rules and Regulations. In order to receive wine or beer from the retail licensee, the Delaware resident will present to the retail licensee a valid Delaware drivers license, with photograph identification, that indicates the resident is 21 years of age or older.

Rule 910 (Formerly Rule Number 33) A Rule Defining And Regulating The Quantities Of Sales And Methods Of Deliveries Of Certain Off-premises Sales By Licensees

4 Del. Admin. Code § Rule 910-1.0 Sales and Deliveries {#sec-rule-910-1.0 omnilex-key=us-de-regs-official--title-4--Rule 910-1.0}

1.1 The holder of a license for the sale of retail of alcoholic liquor, not for consumption on the premises where sold, other than a licensed Importer, may sell alcoholic liquors of the variety and quantity and to the persons permitted by the Liquor Control Act, as presently in force and as hereafter amended, and the merchandise so sold shall be delivered to the purchaser or his agent on the premises and removed by such purchaser or agent from the premises with the seals of the bottles unbroken. For the purpose of this sub-section only, the "premises" of a holder of a license for sale at retail shall be deemed to extend to the street or curb line of the public street, road or highway nearest to the front entrance of his establishment, or if there be no established street or curb line, then to the nearest edge of the street, road or highway nearest to the front entrance of his establishment, to a distance, however, of not more than 100 feet from such front entrance. Notwithstanding anything in this Rule to the contrary, for purposes of curbside service, the "premises" of a holder of a license for sale at retail may extend to include a parking spot along the curb of a public street or along the curb of the parking lot if the retail license premises is located in a shopping center or strip mall that is closest to the licensee's front entrance if that licensee does not have access to parking spaces for use by purchasers in accordance with subsection 1.6 of this Rule.

1.2 An Importer may sell the variety of alcoholic liquor authorized by his license, to a person who is the holder of a license to purchase the same for resale, in such quantities as may be ordered by the purchaser, and shall transport the merchandise so sold from the Importer's establishment to the establishment of the purchaser.

1.3 An Importer licensed for the sale of beer is permitted under 4 Del.C. §101 to sell beer in half-barrel or quarter-barrel containers to the holder of a personal license. Such Importer shall transport the beer so sold from his warehouse to the residence of the purchaser.

1.4 4 Del.C. §101 permits an Importer to sell alcoholic liquor to an active owner of a wholesale liquor business for the latter's personal use. Importers may sell to the active owners of their respective companies only the variety of alcoholic liquor authorized by the Importer's license. Importers must sell only to those active owners who are holders of a license to purchase for personal stock even though the purchase may not exceed the quantities permitted to be purchased without a license. An Importer shall not deliver the merchandise as sold, except beer in half-barrel or quarter-barrel containers.

1.5 Delivery of alcoholic liquor shall not be made by an Importer to any place licensed for the sale of alcoholic liquor outside of the hours during which such place is authorized to do business. Sale and delivery by an Importer to a person who is the holder of a license to purchase for personal stock shall not be made after 10:00 P. M. of any day and before nine o'clock A. M. of the day following.

1.6 Curbside service of alcoholic beverages is permitted under the following conditions:

1.6.1 Delivery of the order shall be permitted to a purchaser's vehicle in parking spaces designated by the licensee for curbside service. Under no circumstances may service be provided off premises, as that term is defined in subsection 1.1 of this Rule, except when the licensee has no parking lot spaces for purchasers, curbside service may include a parking space on a public street or roadway or along the curb of the parking lot if the retail license premises is located in a shopping center or strip mall that is closest to the licensee's front entrance.

1.6.2 Curbside delivery shall be completed only by an employee who has completed the State's server training certification at the time the sale occurs.

1.6.3 The employee carrying the curbside delivery order outside the store is at least 21 years of age.

1.6.4 Before placing alcoholic beverages in a vehicle for curbside service, the purchaser shall exit the vehicle to complete the sale transaction (either through the exchange of payment information or to sign a sales receipt) and the employee shall verify: 1) the purchaser's identification, legal age and sobriety; and 2) that the purchaser's identification and credit card match the information provided as part of an order placed by telephone or online. If the employee is unable to verify the information above, the employee shall return the alcoholic beverage order to the store and cancel the purchase.

1.6.5 The order is placed in the vehicle's trunk, and if there is no trunk, in the vehicle's rear compartment or back seat that is not readily accessible to the driver of the vehicle.

History

• 26 DE Reg. 59 (07/01/22)
• Effective: February 1, 1960
• 26 DE Reg. 59 (07/01/22)

4 Del. Admin. Code § Rule 910-2.0 Sales of alcoholic beverages in transactions for take-out, curbside, or drive through service by on premise licensees. {#sec-rule-910-2.0 omnilex-key=us-de-regs-official--title-4--Rule 910-2.0}

2.1 As used in this Rule:

2.1.1 "Mixed cocktail" means a beverage created by combining spirits, as that term is defined in Title 4, with other ingredients, which is made in the restaurant, brewpub, or taproom or other entity with a valid on-premise license that includes serving spirits.

2.1.2 "Container securely closed" means a container with a tamper-evident secured lid or cap that is designed to prevent consumption without removal of the lid or cap. The container shall include a label affixed to it, in a conspicuous place, legibly indicating: 1) the name of the licensee; and 2) the words "CONTAINS ALCOHOL." Container securely closed does not include a container with a lid with sipping holes or openings for straws or a container made of paper or polystyrene foam.

2.1.3 "Tamper evident" means a seal or tape that, if breached or missing, will indicate the lid or cap has been removed.

2.1.4 "Drive through service" means providing a take-out order to a customer who is not required to enter the premises to complete the sale, but it does not include providing a take-out order through a drive-through window pursuant to Section 4.0 of 4 DE Admin. Code 703.

2.2 A restaurant, brewpub, tavern, or taproom, or other entity with a valid on-premise license issued pursuant to chapter 5, subchapter II of Title 4 of the Delaware Code may sell alcoholic beverages for take-out, curbside or drive through service if the following requirements are met:

2.2.1 The containers are securely closed.

2.2.2 The order is limited to one 750 ML bottle of wine, 6 servings of beer, and/or mixed cocktails except that taverns shall not include mixed cocktails, sold in a container securely closed. The licensee shall not provide straws with the order.

2.2.3 The order is sold and served by an employee certified as a responsible alcoholic beverage server pursuant to 4 Del.C. §1205.

2.2.4 If sold by a restaurant, be sold with the customer's purchase of food that costs at least $10.

2.2.5 Upon delivery, the employee shall verify the age and level of intoxication of the person to whom the wine, beer and/or mixed cocktails is being delivered, and if the employee is not able to safely verify a person's age or level of intoxication upon delivery, the employee shall cancel the sale of alcoholic beverages.

History

• 26 DE Reg. 59 (07/01/22)
• Effective: February 1, 1960
• 26 DE Reg. 59 (07/01/22)

911 A Rule Permitting Limited Self-Delivery of Beer

4 Del. Admin. Code § 911-1.0 Preamble

Section 721 of Title 4 of the Delaware Code permits the Delaware Alcoholic Beverage Control Commissioner ("Commissioner" or "Office") to authorize "any brewery to sell and to deliver beer to any person in this State who holds a license to receive and resell beer" provided certain requirements are met. This regulation is promulgated to implement self-delivery of beer by those licensed as brewers. This regulation is consistent with the Commissioner's authority to regulate time, place, and manner in which beer is sold or dispensed, and provide guidance and regulations for self-delivery of beer.

History

• 27 DE Reg. 981 (06/01/24)

4 Del. Admin. Code § 911-2.0 Purpose and Scope

2.1 Liquor licenses issued pursuant to Title 4 of the Delaware Code, the Delaware Liquor Control Act, are approved based upon the documents submitted as part of the initial application. Authorization to conduct business beyond the premises so licensed must be presented to and approved by the Commissioner.

2.2 This regulation provides procedures, standards, and fees for self-delivery of beer by a licensed brewery, as defined herein.

History

• 27 DE Reg. 981 (06/01/24)

4 Del. Admin. Code § 911-3.0 Definitions

The following words and terms, when used in this regulation, have the following meaning unless the context clearly indicates otherwise:

"Brewery" as that term is used in 4 Del.C. §721 and as used in this regulation, means a brew pub or microbrewery licensed by the Commissioner pursuant to 4 Del.C. §§512B or 512C.

"Self-delivery" means:

1. Delivery by a brewery;

2. In a vehicle owned or leased by the brewery;

3. Of not more than 1,500 barrels annually of its own beer that it manufactures; and

4. To a premises licensed by the Commissioner as a retailer pursuant to 4 Del.C. §101(41) and on-premise licensees pursuant to 4 Del.C. §512.

History

• 27 DE Reg. 981 (06/01/24)

4 Del. Admin. Code § 911-4.0 Procedures

4.1 A Delaware licensed brewery, producing no more than 5,000 barrels of beer a year across all suppliers or manufacturers that share common ownership and control as defined in 4 Del.C. §512G(b), may apply, upon forms provided by the Commissioner, for authorization to self-deliver its own beer produced at the licensee's approved premises as follows:

4.1.1 The brewery may submit an application for an additional facility to warehouse beer, and provide such documentation as required by the Commissioner, including a lease, landlord approval, and a floor plan.

4.1.2 No more than 1,500 barrels of beer, or its equivalent, may be self-delivered annually by the brewery.

4.1.3 Only the brewery and its employees may deliver its manufactured beer and only in vehicles owned or leased by the brewery.

4.1.4 On a quarterly basis, a report documenting each sale shall be filed electronically with the Commissioner that includes the following:

4.1.4.1 The date and address of each licensee to whom a delivery was made during the prior quarter;

4.1.4.2 The quantity of products delivered and whether the product was provided by the bottle, can, half bottle, keg, half keg, quarter keg, or sixtel; and

4.1.4.3 The total gallons delivered during the quarter. The brewery shall track total gallons delivered through self-delivery so as not to exceed 1,500 barrels of beer delivered through self-delivery, per year.

4.1.5 Self-delivery over 1,500 barrels a year will result in forfeiture of the authorization to self-deliver.

4.2 The filing fee for an application for a warehouse is $25, and the inspection fee is $100.

History

• 27 DE Reg. 981 (06/01/24)

4 Del. Admin. Code § 911-5.0 Additional Requirements

5.1 Breweries authorized to self-deliver must do all of the following:

5.1.1 Report to the Division of Revenue, pursuant to 4 Del.C. §581(b), all sales of beer that were self-delivered to retailers.

5.1.2 Comply with 4 DE Admin. Code 904 by publishing a monthly price list for beer that will be available for sale through self-delivery. Publication may also occur on the Commissioner's webpage if The Delaware Beverage Guide is unable to accommodate price lists for self-delivery.

5.1.3 Comply with all state credit and transportation regulations and other business licensure requirements.

5.1.4 Comply with the 18-hour product at-rest requirement pursuant to 4 DE Admin. Code 903, Section 6.0. A written request for variance to that at-rest requirement may be granted for good cause shown.

5.1.5 Place a placard on the vehicle transporting the beer, that includes the words "Delaware Alcoholic Beverage Control Commissioner - License Number ………" (Insert the brewery's license number) in letters at least two inches high, uncovered, and clearly visible.

5.2 No brewery shall make a delivery except to a Delaware licensed package store or a Delaware licensed on-premise retail licensee during the hours and dates the package store or on-premise licensee is open to receive such delivery.

5.3 No brewery shall contract with a third-party entity to deliver beer. No brewery shall permit anyone other than an employee of the brewery to deliver beer pursuant to this regulation.

5.4 Peddling beer is not permitted. Orders for all beer shall be received, in writing, from customers before the loaded vehicles leave the brewery's premises and a copy must be on the vehicle at all times during delivery. No beer in excess of that ordered shall be carried on the vehicles.

5.5 A brewery authorized to self-deliver shall not discriminate among retailers when filling orders. Quantity discounts and post-offs do not apply to self-delivery.

5.6 A requirement that a retailer purchase 1 product in order to purchase another is prohibited. This prohibition includes combination sales if 1 or more products may be purchased only in combination with other products and not individually.

5.7 No brewery shall engage in any trade practice which can reasonably be expected to injure any retailer through discriminatory practices, nor engage in any trade practices which can reasonably be expected to cause, encourage, or induce a consumer to purchase, receive, or consume beer in excessive amounts or an at any unduly rapid rate.

5.8 Failure to comply with this regulation and any other provision of the Delaware Liquor Control Act or Commissioner's regulations may result in suspension or revocation of authorization for self-delivery.

History

• 27 DE Reg. 981 (06/01/24)

4 Del. Admin. Code § 911-6.0 Inventory and Recording Sales

6.1 Pursuant to 4 Del.C. §304(a)(2) and (5) and 4 Del.C. §581(c), the Division of Alcohol and Tobacco Enforcement ("DATE") and the Division of Revenue may inspect the establishment of any licensed Delaware brewery and inventory any or all beer in the brewery's possession, as well as sale invoices or bills of sale for beer delivered, at any time they deem reasonable and necessary to carry out their statutory duties to verify the reporting and collection of taxes payable to the State of Delaware.

6.2 Every sale of beer through self-delivery shall be recorded by the brewery on a written invoice or bill of sale containing, at a minimum, the following:

6.2.1 Name of the brewery;

6.2.2 Name of the retailer;

6.2.3 Date of sale;

6.2.4 Quantity of beer sold;

6.2.5 Price of beer sold;

6.2.6 Brand/name of product sold;

6.2.7 Size of container; and

6.2.8 Date of delivery.

6.3 Upon the driver's return to the brewery's premises, the driver shall sign the copy of the invoice/bill of sale to indicate the beer was delivered to the destination listed.

6.4 This signed copy of the invoice/bill of sale shall be available for inspection by the Commissioner at all times.

History

• 27 DE Reg. 981 (06/01/24)

4 Del. Admin. Code § 911-7.0 Fees

7.1 The filing fee to request limited self-delivery is $25.

7.2 When required by the Commissioner, the inspection fee is $25.

7.3 The biennial fee for limited self-delivery is $100.

7.4 The biennial fee for a warehouse is $100.

History

• 27 DE Reg. 981 (06/01/24)

1000 General Establishments and Clubs

Rule 1001 (Formerly Rule 65) Bowling Alley Licensees

4 Del. Admin. Code § Rule 1001-1.0 Authority {#sec-rule-1001-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1001-1.0}

1.1 Pursuant to 4 Del.C. §512(f), the Delaware Alcoholic Beverage Control Commissioner is empowered to issue licenses for the sale of alcoholic beverages to the operators of bowling alleys for consumption on the bowling alley premises.

1.1.1 For the purposes of the Liquor Control Act, a bowling alley is defined as any bowling alley operation having ten bowling lanes in use for a period of at least six months.

1.1.2 The licensed area of the bowling alley encompasses the entire bowling alley premises including the concourse and lane areas.

1.1.3 The dispensation of alcoholic beverages must be at a counter separate from the counter from which food and/or snacks are dispensed. Stands or bars where alcoholic liquor is sold shall be clearly segregated and partitioned off from other concession areas. No other commodity shall be sold or dispensed therein. Such stands and storage facilities for alcoholic liquor shall be approved by the Commissioner prior to their use.

1.1.4 The provisions of File 22 shall apply to bowling alleys. In addition, all All storage facilities at serving bars or counters shall be kept locked at all times when not attended.

History

• 19 DE Reg. 775 (02/01/16)

Rule 1002 (Formerly Rule 66) On-Premises and Off-Site Caterers

4 Del. Admin. Code § Rule 1002-1.0 On-Premises Caterers {#sec-rule-1002-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1002-1.0}

1.1 Pursuant to 4 Del.C. §512(g)(1), any caterer as defined by 4 Del.C. §101(8) may apply for a license to purchase alcoholic beverages and keep and sell such alcoholic liquors either by the glass or by the bottle for consumption on any portion of the premises of the caterer approved by the Commissioner for that purpose.

1.2 Caterers are empowered to sell alcoholic beverages pursuant to a license issued by the Commissioner only while providing the food and beverages at social gatherings held on the caterers' licensed premises. At least sixty (60) percent of the caterer's gross receipts must come from the sale of food.

1.3 The sale of alcoholic beverages shall only be allowed at events such as weddings, dinners, benefits, banquets, or other similar events for consideration pursuant to a written contract setting forth the price per person at the catered event, except that a cash bar may be utilized in conjunction with the catered event.

1.4 Persons not of sufficient age to consume alcoholic liquors shall be allowed and permitted to be on the licensed premises of the caterer so long as all of the other provisions of the Liquor Control Act and the rules of this Commissioner are being complied with.

4 Del. Admin. Code § Rule 1002-2.0 Off-Site Caterers {#sec-rule-1002-2.0 omnilex-key=us-de-regs-official--title-4--Rule 1002-2.0}

2.1 Pursuant to 4 Del.C. §512 (g)(2), any off-site caterer may apply for a license to purchase alcoholic beverages and keep 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.

2.2 Off-site Caterers are empowered to sell alcoholic beverages pursuant to a license issued by the Commissioner only while providing the food and beverages at social gatherings held at off-site premises approved by the Commissioner. At least sixty (60) percent of the caterer's gross receipts must come from the sale of food.

2.3 The sale of alcoholic beverages shall only be allowed at events such as weddings, dinners, benefits, banquets, or other similar events for consideration pursuant to a written contract setting forth the price per person at the catered event, except that a cash bar may be utilized in conjunction with the catered event.

2.4 Persons not of sufficient age to consume alcoholic liquors shall be allowed and permitted to be on the licensed premises of the caterer so long as all of the other provisions of the Liquor Control Act and the rules of this Commissioner are being complied with.

2.5 Each off-site catered event must be approved by the Commissioner no later than 20 days prior to the event. For the Commissioner to approve the location of the event, the following items must be submitted:

2.5.1 An executed contract between the caterer and their client that lists the day, date, and time of the catered event and explicit approval from both the tenant and the landlord/property owner that permits reasonable access to the catered event by members of the DATE or other recognized law enforcement agency to ensure compliance with The Liquor Control Act and the Commissioner's Rules.

2.5.2 A list of all products that will be transported to and sold at the catered event describing the type and amount of each product. This document serves as a waybill that must be present in the vehicle during the transportation of alcoholic beverages to and from the catered event.

Rule 1003 (Formerly Rule 75) A Rule Pertaining to the Closing of Package Stores, Taverns and Taprooms or Any Off-Premises Licensee

4 Del. Admin. Code § Rule 1003-1.0 Purpose {#sec-rule-1003-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1003-1.0}

The purpose of this rule is to standardize procedures for closings of package stores, taverns and taprooms and any off-premises licensee while ensuring that residents of the neighborhoods in which the licensees operate are still able to make a lawful purchase of alcoholic beverages with reasonable convenience.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1003-2.0 Applicability {#sec-rule-1003-2.0 omnilex-key=us-de-regs-official--title-4--Rule 1003-2.0}

This rule shall apply to all package stores, taverns and taprooms as well as other off-premises licensees licensed by the Commissioner.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1003-3.0 Closings for Fourteen Days or Less {#sec-rule-1003-3.0 omnilex-key=us-de-regs-official--title-4--Rule 1003-3.0}

Licensees shall not be required to notify the Commissioner in order to close their establishments for a cumulative period of fourteen days or less in any calendar year or in order to change their hours of operation during such a limited period of time; provided, however, that any licensee which closes for fourteen days or less or temporarily changes its hours of operation shall conspicuously post notice of that fact at all public entrances to the licensed premises.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1003-4.0 Closings for More Than Fourteen Days {#sec-rule-1003-4.0 omnilex-key=us-de-regs-official--title-4--Rule 1003-4.0}

4.1 Procedures

4.1.1 Whenever a licensed package store, tavern or taproom or other off-premises licensee intends to close for a period of more than fourteen days in any calendar year, or intends to close on specific days which when considered cumulatively amount to a period of more than fourteen days in any calendar year, the following procedure shall be followed:

4.1.1.1 The licensee shall submit a letter of intent to the Commissioner which must include the specific dates during which the licensee intends to be closed and the reasons for which the licensee intends to close. The letter of intent must be filed at least twenty days but not more than sixty days before the first day on which the licensee intends to close.

4.1.1.2 The letter of intent filed with the Commissioner shall be accompanied by certificates of the publishers of two newspapers circulated in the county in which the license operates. From the certificates it shall appear that the licensee has caused to be circulated in such newspapers at least three times within the period of twenty days immediately preceding the filing of the letter of intent with the Commissioner, a notice setting forth the intention of the licensee to close for a period of more than fourteen days in any calendar year, including the specific dates on which the licensee intends to be closed and advising the public of the right to object to the closure by filing a protest with the Commissioner. One of the notices shall appear in a newspaper circulated at the place in the county nearest to the location of the licensed premises.

4.1.1.3 On the same date that the letter of intent is submitted to the Commissioner, the licensee shall send notice by certified mail, return receipt requested, of its intent to close for a period of more than fourteen days in the calendar year, including the specific dates on which the licensee intends to be closed, to all licensed package stores, taverns and taprooms located within one mile of the licensed premises.

4.1.1.4 On the same date that the letter of intent is submitted to the Commissioner, the licensee shall conspicuously post a Public Notice sign at all public entrances to the licensed premises stating the intent to close and specifying the dates during which the licensed premises will be closed. The Public Notice sign shall be a minimum of 18 x 24" in size and shall remain posted at all public entrances to the premises throughout the entire time the establishment is closed.

4.2 Protests

4.2.1 Within ten days of the filing of the letter of intent with the Commissioner, a protest against the intended closing, signed by at least ten residents of the neighborhood wherein the license operates, may be filed with the Commissioner.

4.2.2 In the event such a protest is filed the Commissioner or the Commissioner believes that the closing would deprive the residents of the neighborhood the opportunity to make a lawful purchase of alcoholic beverages with reasonable convenience, the Commissioner shall hold a hearing to consider the sole issue of whether the intended closing of the licensed establishment would deprive residents of the neighborhood of the opportunity to make a lawful purchase of alcoholic beverages with reasonable convenience.

4.2.3 Such a hearing shall be conducted by the Commissioner.

4.2.4 Notice of the hearing, including its time and date and a recital of the protest shall be sent to the licensee and to each of the persons who signed the protest; provided, however, that it shall be sufficient to send notice to the attorney of any party represented by legal counsel.

4.2.5 A record from which a verbatim transcript can be prepared shall be made of any protested hearing.

4.2.6 After hearing all the evidence, if the Commissioner determines that the closing of the package store, tavern or taproom or other off-premises licensee will deprive the protesting neighborhood residents of the opportunity to make a reasonably convenient lawful purchase of alcoholic beverages, the closing shall not be permitted or the requested dates of closing shall be modified as determined by the Commissioner.

4.2.7 If the Commissioner determines, after hearing all of the evidence, that the closing will not deprive the protesting neighborhood residents of the opportunity to make a reasonably convenient lawful purchase of alcoholic beverages, then the closing shall be permitted.

4.3 Restrictions

4.3.1 Pursuant to the provisions of this rule, no licensee shall close its establishment for a period of more than 150 days cumulatively in any calendar year.

4.3.2 Any licensee which closes its establishment in accordance with the provisions of this rule shall still be required to comply with, and adhere to, all applicable provisions of the Liquor Control Act and the Commissioner Rules.

History

• 19 DE Reg. 775 (02/01/16)

Rule 1004 (Formerly Rule 72) A Rule Pertaining to the Sale of Alcoholic Liquors by Multiple Activity Clubs

4 Del. Admin. Code § Rule 1004-1.0 History {#sec-rule-1004-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1004-1.0}

1.1 The Commissioner grants multiple activity club licenses to private country clubs that satisfy the definition for this particular class of license (4 Del.C. §101 [28]) and meet the requirements of the Commissioner's rules governing multiple activity clubs (Delaware Alcoholic Beverage Control Commissioner Rules 1007 and 1009). In addition, many non-profit, charitable organizations are granted gathering licenses pursuant to 4 Del.C. §514(b) and Commissioner Rule 602 to sell alcoholic liquors on the grounds and golf courses of private country clubs, outside of the licensed club house. The issuance of both types of licenses is consistent with the intent of the Liquor Control Act, which is to make alcoholic liquors available to members and guests, who are of legal drinking age, under strictly controlled conditions.

1.2 It is the finding of the Commissioner that the private country clubs licensed to sell alcoholic liquors in Delaware have established and enforced reasonable rules and guidelines governing the conduct of their members and guests. Responsible and lawful behavior is required of all members and guests. On various occasions, the Commissioner has approved the extension of country club liquor licenses to include areas of the grounds and golf course outside of the normally licensed club house. These events have been held for many years without incident. Several country clubs have now requested approval to expand their liquor license to allow for the sale and consumption of alcoholic liquors on the grounds and golf courses that they operate. Requests have been made to allow the selling of alcoholic liquors from concessionaire stands and mobile golf carts, and to permit the consumption of alcoholic liquors on the entire premises controlled by the country club.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1004-2.0 Purpose {#sec-rule-1004-2.0 omnilex-key=us-de-regs-official--title-4--Rule 1004-2.0}

2.1 This rule is promulgated pursuant to the Commissioner's authority to regulate the time, place, and manner in which alcoholic liquors are sold and dispensed (4 Del.C. §304). In addition, it is the purpose of this rule to implement and clarify the Commissioner's authority to license a multiple activity club, in this case a private country club, to sell alcoholic liquors for consumption on any portion of the premises approved by the Commissioner [4 Del.C. §512(a)]. In accordance with these statutes alcoholic liquors may be sold or dispensed in a manner consistent with Title 4 of the Delaware Code and Commissioner Rules.

2.2 By the promulgation of this rule, the Commissioner finds that alcoholic liquors may be sold and consumed on the grounds and golf courses of private country clubs that have been approved by the Commissioner in accordance with the provisions of this rule.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1004-3.0 Definition; as used in this Rule {#sec-rule-1004-3.0 omnilex-key=us-de-regs-official--title-4--Rule 1004-3.0}

“Country club” means a privately owned and operated facility that provides social activities and recreation to its members, and operates a golf course. It must also be licensed by the Commissioner as a multiple activity club.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1004-4.0 Applicability {#sec-rule-1004-4.0 omnilex-key=us-de-regs-official--title-4--Rule 1004-4.0}

This rule shall govern the manner in which private country clubs sell and dispense alcoholic liquors outside of the licensed clubhouse. In addition, all other applicable laws and rules shall apply to all extension of a multiple activity club license.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1004-5.0 Procedure {#sec-rule-1004-5.0 omnilex-key=us-de-regs-official--title-4--Rule 1004-5.0}

5.1 The Commissioner may approve the sale and dispensing of alcoholic liquors on the grounds and golf courses of privately owned and operated country clubs provided, however, that they comply with the requirements that follow:

5.1.1 Submit to the Commissioner a diagram or plot plan that is drawn to scale and that clearly indicates the area(s) in or on which the sale, dispensing, and consumption of alcoholic liquors is requested;

5.1.2 Submit to the Commissioner a copy of the club's rules that govern the conduct of its' members and guests;

5.1.3 Submit to the Commissioner a written plan detailing the procedures it will follow to insure responsible and moderate consumption of alcoholic liquors on its premises;

5.1.4 Submit to the Commissioner proof that its' employees who serve, handle or manage the service of alcoholic liquors have successfully completed a Commissioner approved responsible beverage server training program.

5.2 The Commissioner may deny an application to extend a multiple activity club license if the applicant fails to provide for the responsible sale, handling, and consumption of alcoholic liquors or the extension of such a license is otherwise found to be adverse to the best interest of the public, adjoining property owners or the clubs members and guests. In addition, the Commissioner may revoke the extension of a country club's multiple activity club license for just cause.

5.3 The Commissioner may grant an extension of a country club's multiple activity license to permit consumption of alcoholic liquors on golf courses and grounds, provided that it is lawfully purchased on the premises. In addition, the Commissioner may approve the sale of alcoholic liquors from golf carts and concessionaire stands on the golf course provided that all alcoholic liquors are securely stored when not being offered for sale.

History

• 19 DE Reg. 775 (02/01/16)

1005 (Formerly Rule 1407) A Rule Pertaining to Movie Theaters

4 Del. Admin. Code § 1005-1.0 Purpose

This rule is promulgated pursuant to the Commissioner's authority to regulate the time, place, and manner in which alcoholic liquors are sold and dispensed (4 Del.C. §304). In addition, it is the purpose of this rule to implement and clarify the Commissioner's authority to license a movie theater to sell alcoholic liquors for consumption on any portion of the premises approved by the Commissioner (4 Del.C. §512 (f)). In accordance with these statutes alcoholic liquors may be sold or dispensed in a manner consistent with Title 4 of the Delaware Code and Commissioner Rules.

By the promulgation of this rule, the Commissioner finds that alcoholic liquors may be sold and consumed on the premises of a movie theater that has been approved by the Commissioner in accordance with the provisions of this rule.

History

• 18 DE Reg. 398 (11/01/14)
• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 1005-2.0 Definitions

For purposes of this regulation, the following definitions shall apply.

"Alcoholic beverage" means a beverage consisting of no more than sixteen (16) ounces of beer, eight (8) ounces of wine, or two (2) ounces of spirits.

"Movie theater" means an indoor facility used to host showings of motion pictures which:

a. has a capacity of at least 500 patrons for any single movie showing or for showing of multiple movies in separate theaters at the same time;

b. shall host a minimum of 250 movie showings in any calendar year and shall be open at least 5 days a week;

c. has video cameras in each theater auditorium that allows supervision of movie patrons from a centralized or remote location during a movie showing; and

d. has a separate bar or location where alcohol is sold, served or dispensed that is separated from where food and non-alcoholic drink are sold.

History

• 18 DE Reg. 398 (11/01/14)
• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 1005-3.0 Approved Course Required

All movie theater managers and employees involved in serving alcohol must successfully complete within 30 days from employment an approved course on the responsible service of alcoholic beverages.

History

• 18 DE Reg. 398 (11/01/14)
• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 1005-4.0 Minors Prohibited

No minors are permitted to stand or sit at the bar or counter where alcoholic beverages are sold, served or consumed.

History

• 18 DE Reg. 398 (11/01/14)
• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 1005-5.0 Dispensing Limitations

No more than one (1) alcoholic beverage may be sold to a patron at a time who is at least twenty-one (21) years old and no more than two (2) alcoholic beverages may be sold per patron per movie showing. The alcoholic beverage must be dispensed in a container that is clearly different from other non-alcoholic drinks and the patron purchasing the alcoholic beverage must be identified by a wrist band or similar means.

History

• 18 DE Reg. 398 (11/01/14)
• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § 1005-6.0 Inspection Required

A server trained individual must physically inspect each theater at least once during each movie showing to ensure that persons under the age of twenty-one (21) are not consuming alcohol.

History

• 18 DE Reg. 398 (11/01/14)
• 19 DE Reg. 775 (02/01/16)

Rule 1006 (Formerly Rule 32) A Rule Defining and Regulating Multiple Activity Clubs Licensed to Sell to Guests of Such Clubs and Guests of Members

4 Del. Admin. Code § Rule 1006-1.0 Defining Multiple Activity Clubs {#sec-rule-1006-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1006-1.0}

1.1 A licensed club whose gross revenue from the sale of alcoholic liquor does not exceed 40% of its total annual revenue from all sources and which either:

1.1.1 Serves meals at regular hours six days a week, or

1.1.2 Has a physical facility, regularly used by members of the club other than club rooms for the sale and service of food and alcoholic liquor and which facility is of a permanent nature and regularly used, i.e., tennis court, golf course, indoor pool, may apply for a Multiple Activity Club License.

1.2 A Multiple Activity Club License permits the sale of alcoholic liquor to guests of the club or guests of its members.

History

• 19 DE Reg. 775 (02/01/16)

Rule 1007 (Formerly Rule 18) A Rule Regulating Clubs and Multiple Activity Clubs

4 Del. Admin. Code § Rule 1007-1.0 Clubs {#sec-rule-1007-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1007-1.0}

1.1 "The word "'club"' means a corporation or association created by competent authority, which is the owner, lessee or occupant of premises operated solely for objects of national, social, patriotic, political or athletic nature, or the like, whether or not for pecuniary gain, and the property as well as the advantages of which belong to or are enjoyed by the stockholders or by the members of such corporation or association."

1.2 At the time of the making of an application for a license under the Liquor Control Act, and at all times after the granting of a license, upon demand of the Commissioner, such 'club' shall produce at the office of the Commissioner, the original or a properly authenticated copy of its charter or articles of association, its minute books, membership and financial records, covering the full-period of its licensed existence.

1.3 Said charter, articles of association, minutes mad financial records will show that all profit from the sale of alcoholic beverages is controlled by the membership, and its properly elected officers, and used for the authorized objects of the club.

1.4 At the time of the making of an application for a license to sell alcoholic liquors and at any time after the granting of a license, upon demand of the Commissioner, such club shall furnish the Commissioner forthwith with a statement, signed by its President or Vice-President and notarized, setting forth the reason for organization of the club and the activities in detail carried on by the club.

1.5 No club licensed under the Delaware Liquor Control Act shall have or maintain any "peephole", "bell", "buzzer", or other warning device at any entrance to the club premises; and immediate access to all parts of the premises of the club shall at all times be accorded to DATE or the authorized representatives of the Commissioner, including all qualified police officers in the State of Delaware, when accompanied by DATE or an Inspector of the Commissioner, all of whom shall be permitted to enter immediately and given immediate access to all parts of the premises of a club without a search warrant.

History

• 19 DE Reg. 775 (02/01/16)

Rule 1008 (Formerly Rule 19.1) Bottle Clubs - Licensing and Operation

4 Del. Admin. Code § Rule 1008-1.0 Purpose and Scope {#sec-rule-1008-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1008-1.0}

This regulation implements the 1982 and 1989 amendments to the Delaware Liquor Control Act extending the jurisdiction of the Commissioner to bottle clubs. 4 Del.C. §§515, 515A(a), 902(7), and 554(aa), 60 Del. Laws, Ch. 232 (April 30, 1982), 67 Del. Laws, Ch. 122 (July 14, 1989). It applies to all businesses operated for profit where patrons carry onto the premises alcoholic liquors to be consumed thereon and removed by patrons upon their departure.

History

• 28 DE Reg. 321 (10/01/24)
• 25 DE Reg. 960 (04/01/22)
• 28 DE Reg. 321 (10/01/24)
• 28 DE Reg. 321 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 25 DE Reg. 960 (04/01/22)
• 28 DE Reg. 321 (10/01/24)

4 Del. Admin. Code § Rule 1008-2.0 Definitions {#sec-rule-1008-2.0 omnilex-key=us-de-regs-official--title-4--Rule 1008-2.0}

The following words and terms, when used in this regulation, have the following meaning:

"Bottle club" means an establishment operated for profit or pecuniary gain where persons enter upon the premises for the purposes of consuming alcoholic liquors which are brought onto the premises by customers of the establishment and are consumed therein and removed by such persons upon their departure. A bottle club also includes the premises rented to customers for holding weddings or other social gatherings, pursuant to 4 Del.C. §515A(c)(2).

"Consume" in any tense, means the act of drinking or eating alcoholic beverages and includes possession of an alcoholic beverage with the present ability to drink or eat it.

“Operated for profit or pecuniary gain" means a business owned by a sole proprietor, partnership, corporation or other business association where such owner is not exempt from federal or state taxes on income on the profits (or losses) from such business, or the profits (or losses) from such business are for the benefit of an individual partnership, corporation or other business association which is not exempt from federal or state taxes on income. An organization qualified to receive a gathering license under 4 Del.C. §514, shall be deemed to be not for profit or pecuniary gain unless the profits or losses from such enterprise are otherwise subject to federal or state tax on income.

"Restaurant" means any establishment which is regularly used and kept open principally for the purpose of serving complete meals to persons for consideration, and which has seating at tables for 12 or more persons, and suitable kitchen facilities connected therewith for cooking an assortment of foods under the charge of a chef or cook. The service of only such food and victuals as sandwiches or salads shall not be deemed to be the service of "meals" (4 Del.C. §101(40)). In addition, a restaurant shall have a valid and current restaurant retailer license required by 30 Del.C. §2906.

History

• 28 DE Reg. 321 (10/01/24)
• 25 DE Reg. 960 (04/01/22)
• 28 DE Reg. 321 (10/01/24)
• 28 DE Reg. 321 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 25 DE Reg. 960 (04/01/22)
• 28 DE Reg. 321 (10/01/24)

4 Del. Admin. Code § Rule 1008-3.0 General Policy {#sec-rule-1008-3.0 omnilex-key=us-de-regs-official--title-4--Rule 1008-3.0}

No establishment shall be operated for profit or pecuniary gain as a bottle club unless licensed by the Commissioner. Licensed bottle clubs shall, within the limits of their license, be held to the same standards of performance and financial responsibility as other types of license holders.

History

• 28 DE Reg. 321 (10/01/24)
• 25 DE Reg. 960 (04/01/22)
• 28 DE Reg. 321 (10/01/24)
• 28 DE Reg. 321 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 25 DE Reg. 960 (04/01/22)
• 28 DE Reg. 321 (10/01/24)

4 Del. Admin. Code § Rule 1008-4.0 Standards of Operation for Bottle Club {#sec-rule-1008-4.0 omnilex-key=us-de-regs-official--title-4--Rule 1008-4.0}

4.1 Hours of Operation

4.1.1 An establishment operated as a bottle club shall not permit the consumption of alcoholic beverages on its premises after 2 a.m. or before 8 a.m. on any day.

4.1.2 The presence of alcoholic liquors on the premises of a bottle club between the hours of 2 a.m. and 8 a.m. shall be prima facie evidence of a violation.

4.2 Service of General Public

4.2.1 A bottle club may require membership upon payment of a reasonable fee, but approval of such membership shall not be unreasonably denied.

4.2.2 A club shall not charge an admission charge or fee, but may charge a cover or minimum during hours when live entertainment is actually being presented.

4.3 Service of Food

4.3.1 A reasonable selection of food shall be available from a written menu or menu board at all hours when alcoholic beverages are being consumed. The selection of foods shall include a choice of sandwiches, entrees, sides, and non-alcoholic beverages.

4.3.2 If alcoholic liquors will be provided by the customer and not a licensed off-site caterer, a bottle club licensed pursuant to 4 Del.C. §515A(c)(2) shall submit for Commissioner approval at least 10 days prior to a wedding or other social gathering:

4.3.2.1 A signed contract with the customer renting the premises that shows the date and time of the event and the anticipated number of invited guests;

4.3.2.2 A signed contract with the entity providing adequate food for the social gathering, as determined by the Commissioner; and

4.3.2.3 A list of the alcoholic liquors to be provided by the customer that will be served during the gathering.

4.4 Service of Persons Under 21

4.4.1 Persons under 21 years of age may be admitted to the premises of a bottle club.

4.4.2 Persons under 21 years of age may not consume alcoholic beverages at any time, whether or not the bottle club licensee has provided bartending services pursuant to subsection 4.5.2 of this regulation.

4.4.3 It shall be a rebuttable presumption that persons under 21 years of age found on the premises or departing therefrom who are found to have consumed alcoholic liquors, or are in possession of alcoholic liquors, consumed or possessed such alcoholic liquors on the licensed bottle club premises in violation of the Delaware Liquor Control Act.

4.5 Service of Alcoholic Liquors

4.5.1 A bottle club may serve food, non-alcoholic beverages, mixers and ice and may charge for such service.

4.5.2 A bottle club renting its premises for weddings or other social gatherings pursuant to 4 Del.C. §515A(c)(2) may provide bartending services and serve alcoholic liquors provided by the customer and may charge for such services.

4.5.2.1 Bartending services must be included in the materials submitted to the Commissioner for review and approval pursuant to subsection 4.3.2 of this regulation.

4.5.2.2 The servers provided by the bottle club shall be certified as responsible alcoholic beverage servers pursuant to the Delaware Liquor Control Act. Only certified servers may provide bartending services which may also include bar area set-up and breakdown.

4.5.3 A bottle club may not keep alcoholic liquors for customers after the conclusion of the customer's use of the premises. Any alcoholic liquors remaining on the premises 2 hours after the conclusion of the event, or 1 hour after the customer has left the premises, shall be considered abandoned property and the bottle club licensee shall dispose of the alcoholic liquors immediately.

4.5.4 A bottle club licensee may permit a customer renting the premises pursuant to a contract approved by the Commissioner to bring alcoholic liquors onto the premises up to 36 hours prior to the event, provided the alcoholic liquors are stored in locked storage to which the customer and the licensee possess the only keys. The licensee's contract with the customer may designate a specific person, other than the customer, for this task. The licensee shall confirm the alcoholic liquors brought onto the premises are consistent with the list provided to the Commissioner pursuant to subsection 4.3.2.3 of this regulation, and any quantity or type not approved by the Commissioner must be removed from the premises.

4.5.5 Only the customer renting the bottle club licensed premises, or the customer's designee identified in the contract with the licensee, may enter and leave the premises with alcoholic liquors. Guests of the customer renting the premises may not enter or leave the premises with alcoholic liquors.

4.6 Presence of Intoxicated Persons on Premises. A bottle club shall not permit an intoxicated person to remain on its premises.

4.7 Design and Layout. In a bottle club there shall be seating at tables for not less than 12 persons. Seats at a bar shall not exceed 1/3 of the dining seats of the establishment.

History

• 28 DE Reg. 321 (10/01/24)
• 25 DE Reg. 960 (04/01/22)
• 28 DE Reg. 321 (10/01/24)
• 28 DE Reg. 321 (10/01/24)
• 19 DE Reg. 775 (02/01/16)
• 25 DE Reg. 960 (04/01/22)
• 28 DE Reg. 321 (10/01/24)

Rule 1009 (Formerly Rule 24) Club Members, Multiple Activity Club Members and Sales of Alcoholic Liquor in Each Such Club

4 Del. Admin. Code § Rule 1009-1.0 Clubs {#sec-rule-1009-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1009-1.0}

1.1 Except as provided herein, a license for the sale of alcoholic liquor by a club authorizes the sale of such alcoholic liquor to club members only. A member of a club is defined by Section 101, Chapter 1, Title 4, Delaware Code of 1953, as follows:

"Member of a club" means an individual who, whether as a charter member or admitted in accordance with the rules or the by-laws of the club, has become a member thereof, who maintains their membership by the payment of dues in the manner established by the rules or by-laws, and whose name and address is entered on the list of members supplied to the Commissioner at the time of the application for a license under Chapter 5 of this Title, or, if admitted thereafter, within eight days after his admission and payment of dues, if such dues are required. The Commissioner is authorized to extend the meaning of the words "member of a club" to include those who are granted temporary membership or membership of less than one year in accordance with a rule or by-law of the club approved by the Commissioner.

1.2 A guest may consume alcoholic liquor at a club provided that at all times the guest is on the licensed premises the host member of the club who introduced the guest also remains on the licensed premises and pays for the alcoholic liquor.

1.3 If the club in the form of a lodge desires members of subordinate lodges under the same grand lodge to have the privilege of buying alcoholic liquor at their club, this may be done by the lodge passing a resolution granting the privileges of the club to members of other subordinate lodges, providing such member presents their card indicating their membership in such subordinate lodge. A record shall be kept of the names of such members of subordinate lodges to whom such privileges are extended.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1009-2.0 Multiple Activity Club {#sec-rule-1009-2.0 omnilex-key=us-de-regs-official--title-4--Rule 1009-2.0}

A license for the sale of alcoholic liquor by a multiple activity club to persons who are guests of that club or of a member of that club is in addition to its license as a club which authorizes the sale of alcoholic liquor only to members of the club.

History

• 19 DE Reg. 775 (02/01/16)

Rule 1010 (Formerly Rule 62) A Method for Determining Minimum Distances Between Establishments

4 Del. Admin. Code § Rule 1010-1.0 Calculation of Measurements {#sec-rule-1010-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1010-1.0}

1.1 In computing the distance, pursuant to 4 Del.C. §543, between a proposed establishment and a licensed establishment of the same type by accessible public road or street, the measurements shall be taken as follows:

1.1.1 The measurements shall begin and end at that part of the individual establishment which is available to the public and closest to the other establishment. In general, one would start measuring at the front corner of both the existing and the proposed establishment nearest to the other licensed establishment of the same type. In multiple purpose buildings, in which a liquor establishment is not the primary use, the measurement shall be made from the portion of the building used for the licensed establishment, and the measured distance shall include corridors, etc., when necessary to reach the nearest accessible public road or street.

1.1.2 Straight lines shall then be drawn from these terminal points, and at right angles thereto, to the center of the adjoining means of ingress and egress.

1.1.3 The lines shall then continue to follow the center lines of regular or established traffic patterns (pedestrian or vehicular) until a public road or street is reached at its center line. The lines shall be drawn to the center of the nearest regular or established traffic pattern for vehicular traffic.

1.1.4 The lines shall continue on the center lines of public roads or streets until they meet.

1.1.5 Except where impracticable lines shall be drawn at right angles to each other and shall be straight.

1.1.6 In all cases, the shortest distance from a proposed establishment to a licensed establishment shall be used as the distance between the two, and said shortest distance shall be measured only by accessible public road or street and the Commissioner may consider motor vehicle traffic directions, patterns and barriers and pedestrian traffic patterns.

History

• 19 DE Reg. 775 (02/01/16)

1100 General Establishment Operations and Practices

Rule 1101 (Formerly Rule 2.1) Items Authorized For Sale In Licensed Retail Package Stores

4 Del. Admin. Code § Rule 1101-1.0 Items Authorized for Sale {#sec-rule-1101-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1101-1.0}

1.1 The following items may be offered for sale in package stores as complementary to the sale of alcoholic beverages: mixers; ice; sodas; cigarettes, cigars, or other tobacco products in packs sealed by the manufacturer; lottery tickets; money orders, and pre-packaged food items which meet the following criteria:

1.1.1 Sold to consumer in package/container as received by licensee.

1.1.2. Food items, including cheese and dairy products, may not be cooked, or offered as a loose item, unwrapped or repackaged.

1.1.3. Bread and meats are prohibited for being sold.

1.1.4. The sale of insulated single container covers which serve to keep a beverage at a cool temperature or a cooler are permitted.

1.1.5. Area assigned to display of these items is limited to the greater of 20 square feet or five (5%) percent of their total floor space, exclusive of display of ice, mixers and sodas.

4 Del. Admin. Code § Rule 1101-2.0 Variance: {#sec-rule-1101-2.0 omnilex-key=us-de-regs-official--title-4--Rule 1101-2.0}

The holder of a license to sell alcoholic beverages in a package store for off-premises consumption may apply, in writing, to the Commissioner for a variance in any of the requirements of this Rule for good cause shown, provided that such variance does not violate any provisions of the Liquor Control Act.

Rule 1102 (Formerly Rule 52) A Rule Prohibiting the Use of Service Counter by Minors

4 Del. Admin. Code § Rule 1102-1.0 Minors {#sec-rule-1102-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1102-1.0}

Minors are forbidden to sit or stand at a service counter where alcoholic beverages are sold, served or dispensed except in a Multi-purpose Sports Facility.

History

• 19 DE Reg. 775 (02/01/16)

Rule 1103 (Formerly Rule 61) A Rule Governing Cover Charges and Minimum Charges by Licensed Establishments

4 Del. Admin. Code § Rule 1103-1.0 Cover Charges {#sec-rule-1103-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1103-1.0}

1.1 Any on-premises licensee licensed for the sale of alcoholic beverages 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. Payment of the cover charge shall entitle the patron to admission to the premises and observance of the entertainment being offered only.

1.2 Any of said licensees may also impose a minimum charge upon the following conditions:

1.2.1 The charge shall be only for food or non-alcoholic beverage to be sold, and such food or non-alcoholic beverage must be provided on the patron's choice and request from the regular menu or the usual offering in the establishment.

1.2.2 The amount of the minimum shall not be changed more than once daily.

1.2.3 The amount of the minimum charge must be prominently displayed at the entrance to the premises and upon the menu, and the fact that such a charge is made must be part of any advertisement of the licensee.

1.2.4 A minimum charge shall be distinguished from a cover charge. Upon payment of the minimum charge, the customer shall be entitled to food or non-alcoholic beverage in an amount of equal value to the charge paid.

History

• 19 DE Reg. 775 (02/01/16)

Rule 1104 (Formerly Rule 34) A Rule Requiring Certain Establishments Licensed for the Sale of Alcoholic Liquor to Maintain and/or Submit Certain Records or Reports to the Commissioner Concerning Purchases and Inventories of Alcoholic Liquor

4 Del. Admin. Code § Rule 1104-1.0 Records {#sec-rule-1104-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1104-1.0}

1.1 Each holder of a retailer's license (except the holder of a Gathering License) shall keep and maintain upon the licensed premises records of invoices adequately and fully reflecting all purchases of alcoholic beverages. All invoices shall be systematically filed and maintained for a period of one year from date of delivery.

1.2 The records referred to in this rule shall be open to the inspection of DATE or the Commissioner at all reasonable hours.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1104-2.0 Importers {#sec-rule-1104-2.0 omnilex-key=us-de-regs-official--title-4--Rule 1104-2.0}

2.1 Monthly Reports Required

2.1.1 Considering the provisions of 4 Del.C. §§507(a) and 710; the previous practice of this Commissioner and importers licensees; and the policy of consistency and accuracy of recording and reporting all purchases and sales, all importer licensees shall keep a true and accurate record of the quantities of alcoholic liquors purchased, sold, and on hand, and shall make monthly reports thereof, together with such other and further information as this Commissioner may from time to time require, upon forms provided for such purpose by the Commissioner.

2.1.2 Each monthly report shall cover the period from the last Saturday of the preceding month to the last Saturday of the current month and must be received by the Commissioner on or before noon of the fifteenth day following the last day of the month for which the report applies.

2.2 Invoices

2.2.1 All importers shall submit to the Commissioner an invoice prepared in the form approved by the Commissioner covering each sale of alcoholic liquor. The invoices for each monthly period must be kept in numerical order and submitted to the Commissioner on or before noon of the fifth day following the last day of the period for which they apply.

2.3 When there are No Sales or No Purchases or Both

2.3.1 All Importers shall be required to file said reports even though there are no purchases or no sales of alcoholic liquor or both unless said Importers have obtained from the Commissioner written authorization not to file the reports required by this Rule. That is, if an Importer has no sales or no purchases or both during the applicable period under this Rule, the report filed with the Commissioner shall indicate such unless the Importer is excused in writing by the Commissioner from filing such reports.

History

• 19 DE Reg. 775 (02/01/16)

Rule 1105 (Formerly Rule 45) A Rule Prohibiting Individuals, Other Than Employees, on Premises of Taverns, Taprooms and Stores During Certain Hours

4 Del. Admin. Code § Rule 1105-1.0 Prohibition of Non-Employees During Certain Hours {#sec-rule-1105-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1105-1.0}

1.1 Unless previously authorized in writing by the Commissioner, it is forbidden for any holder of a tavern or taproom license to permit any individuals, other than employees, to enter or remain on the premises to which such license pertains between 2:00 A.M. and 9:00 A.M. of any day that sales of alcoholic liquors are permitted, and in the case of holidays, as defined in 4 Del.C. §709(d), from 2:00 A.M. of the day a holiday begins and 9:00 A.M. of the first day thereafter on which the sale of alcoholic liquors may be resumed.

1.2 Unless previously authorized in writing by the Commissioner, it is forbidden for any holder of a license pertaining to premises on which the sale of alcoholic liquors is solely permitted for consumption off said premises, to permit any individuals, other than employees and employees of a licensed Delaware wholesaler, to enter or remain thereon between 1:01 A.M. and 9:00 A.M. of any day that sales of alcoholic liquors are permitted, and in the case of holidays, as defined in 4 Del.C. §709(d) from 1:01 A.M. of the day a holiday begins and 9:00 A.M. of the first day thereafter on which the sale of alcoholic liquors may be resumed except that individuals are permitted to enter on Sundays after noon and before 8:00 p.m. unless such times are more restrictive as permitted by City ordinance.

History

• 19 DE Reg. 775 (02/01/16)

Rule 1106 (Formerly Rule 54) A Rule Regarding Removal of Alcoholic Liquors From Licensed Premises During Hours Prohibited For Sale

4 Del. Admin. Code § Rule 1106-1.0 Removal of Alcoholic Liquors {#sec-rule-1106-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1106-1.0}

No holder of any license shall remove or permit the removal of alcoholic liquor from the licensed premises during the times when sale or delivery thereof is prohibited for sale under Section 709, Chapter 7, Delaware Code of 1953. This Rule shall not apply to any person properly removing a bottle of alcoholic liquor, other than beer, with partially consumed contents from a hotel, restaurant, motorsports speedway, club, dinner theater, caterer, or horse racetrack licensed pursuant to 4 Del.C. §512.

History

• 19 DE Reg. 775 (02/01/16)

1200 General Establishment Employment

Rule 1201 (Formerly Rule 7) A Rule Related to Employment of Persons by an On-Premises Licensee

4 Del. Admin. Code § Rule 1201-1.0 Minimum Age Requirements for Employment {#sec-rule-1201-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1201-1.0}

1.1 Clubs with authorized dining facilities, hotels, racetracks and restaurants licensed under Title 4 of the Delaware Code are permitted to hire individuals 14 years of age and older.

1.2 Catering businesses serving liquors and bowling alleys licensed to serve alcoholic beverages are permitted to hire employees 16 years of age and older, provided that persons under the age of 18 shall not be involved in the sale or service of alcoholic liquor.

History

• 27 DE Reg. 189 (09/01/23)
• 19 DE Reg. 775 (02/01/16)
• 27 DE Reg. 189 (09/01/23)

4 Del. Admin. Code § Rule 1201-2.0 Age-based Restrictions for Employees {#sec-rule-1201-2.0 omnilex-key=us-de-regs-official--title-4--Rule 1201-2.0}

2.1 Employees of an on-premise licensee 18 years of age and older may receive orders for and serve alcoholic liquors.

2.2 Employees, not of the legal drinking age, shall not work in any capacity behind a counter at which alcoholic liquors are located, may not mix alcoholic beverage drinks or draw beer from its dispenser.

History

• 27 DE Reg. 189 (09/01/23)
• 19 DE Reg. 775 (02/01/16)
• 27 DE Reg. 189 (09/01/23)

Rule 1202 (Formerly Rule 7.1) Employment of Persons Who Have Reached the Age of 18 Years in Package Stores

4 Del. Admin. Code § Rule 1202-1.0 Definitions {#sec-rule-1202-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1202-1.0}

The following words and terms, when used in this regulation, have the following meaning:

"Retailer" means the person permitted to sell alcoholic liquors in a store in the State, not for consumption on the premises. 4 Del.C. §101. A natural person who is a sole proprietor, general partner, or owner of 25 percent or more of the issued and outstanding stock of a package store shall be considered as a "person" within the meaning of §101, for purposes of this Rule.

"Sell or serve alcoholic liquors" means acting in any manner toward a consumer which encourages, induces, or fosters the sale of any goods, whether or not they contain alcoholic liquor. The term includes, but is not limited to, advising consumers on the selection of goods, delivery of goods to consumers before payment, and ringing up sales. The term does not include stocking shelves, affixing price labels, and other acts not requiring direct contact with consumers, nor does it include assisting consumers in carrying parcels from the store when an in-store purchase has been completed. A minor shall not at any time be permitted unaccompanied access to the premises. In addition, a minor shall not participate in a curbside delivery transaction pursuant to 4 Del.C. §516 and 4 DE Admin. Code 910 either by completing a sales transaction or carrying a purchase from inside the store to a purchaser outside the store.

"Store" means an establishment licensed by the Commissioner only for the sale of alcoholic liquors for consumption off of the premises where sold.

History

• 26 DE Reg. 62 (07/01/22)
• 27 DE Reg. 189 (09/01/23)
• 19 DE Reg. 775 (02/01/16)
• 26 DE Reg. 62 (07/01/22)
• 27 DE Reg. 189 (09/01/23)

4 Del. Admin. Code § Rule 1202-2.0 Employment Limitations {#sec-rule-1202-2.0 omnilex-key=us-de-regs-official--title-4--Rule 1202-2.0}

2.1 No retailer shall employ a person under the age of 18 to work in their store.

2.2 Employees under the age of 21 shall not sell or serve alcoholic liquors, as those terms are defined in this regulation.

History

• 26 DE Reg. 62 (07/01/22)
• 27 DE Reg. 189 (09/01/23)
• 19 DE Reg. 775 (02/01/16)
• 26 DE Reg. 62 (07/01/22)
• 27 DE Reg. 189 (09/01/23)

Rule 1203 (Formerly Rule 73) Standards for Server Training Providers

4 Del. Admin. Code § Rule 1203-1.0 Purpose and Applicability {#sec-rule-1203-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1203-1.0}

This Rule shall govern the training curricula, examination, and certification standards for all Commissioner-approved server training courses.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1203-2.0 Training Standards and Curricula {#sec-rule-1203-2.0 omnilex-key=us-de-regs-official--title-4--Rule 1203-2.0}

Server training programs shall meet the requirements of Title 4, Ch. 12, in order to be approved by the Commissioner.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1203-3.0 Recognition and Approval Process {#sec-rule-1203-3.0 omnilex-key=us-de-regs-official--title-4--Rule 1203-3.0}

3.1 Independent contractors, private individuals, or educational institutions seeking approval to provide server training pursuant to 4 Del.C. Ch. 12, shall proceed as follows:

3.1.1 Submit a letter of intent to the Director of DATE, and include copies of all training curricula, materials, examinations, and certification cards.

3.1.2 The Director of DATE shall review and evaluate the training program. If the program meets the requirements of this rule and the Liquor Control Act, the Director of DATE shall submit a written report to the Commissioner supporting the programs conformity to the Liquor Control Act and Commissioner Rules.

3.1.3 The Commissioner shall review the request for program certification and the Director of DATE's recommendation and either approve or deny the application for certification.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1203-4.0 Training Certification {#sec-rule-1203-4.0 omnilex-key=us-de-regs-official--title-4--Rule 1203-4.0}

4.1 Training certification cards issued by the provider must be approved by the Commissioner and shall display the following information: Trainee's full name, date of birth, expiration date, and instructor's signature.

4.2 All Commissioner-approved server training providers shall administer a Commissioner-approved written examination at the conclusion of each server training class. The minimum passing score for the examination shall be 80 percent. The training provider may only issue a Commissioner-approved certification card to each attendee who obtains a minimum passing score of 80 percent.

4.3 The server training provider shall submit proof of training certification for each person certified by the provider to the Director of DATE within 7 working days of the date of certification. The proof of certification shall list the following information for each trainee: Full name, date of birth, and date trained.

4.4 No Commissioner-approved server training provider shall knowingly issue a server training certification card to any individual who has not successfully completed the provider's training course as approved by the Commissioner.

4.5 The Commissioner may suspend or revoke the training privileges of any server training provider who violates the provisions of this rule or the Liquor Control Act.

History

• 19 DE Reg. 775 (02/01/16)

1300 Advertising and Promotion of Alcoholic Liquor

Rule 1301 (Formerly Rule 27) Advertising and Promotion of Alcoholic Liquor

4 Del. Admin. Code § Rule 1301-1.0 Definition {#sec-rule-1301-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1301-1.0}

"Advertisement” or “Promotion" shall mean any written or oral statement, illustration, or depiction which is intended to induce sales of alcoholic liquor or related services in the State of Delaware, whether it appears in a newspaper, magazine, trade booklet, menu, wine card, leaflet, circular, mailer, book insert, catalog, promotional material, sales pamphlet, or any written, printed, graphic, or other matter accompanying the bottle, billboard, sign, other outdoor display, public transit card, other periodical, literature, publication, or in any radio or television transmission, internet, digital media or in any other media.

The definition shall not include:

The label affixed to bottles of alcoholic liquors, individual covering carton, or other primary container, or

Any editorial or other reading matter, such as a press release, in a periodical, publication, or newspaper for the publication of which no money or valuable consideration is paid or promised, directly or indirectly, by a licensee.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1301-2.0 Applicability {#sec-rule-1301-2.0 omnilex-key=us-de-regs-official--title-4--Rule 1301-2.0}

This rule shall govern the procedure by which all licensees of the Commissioner advertise or promote the sale of alcoholic liquor within and without the state. In addition, this rule shall govern the procedure by which retail licensees may jointly advertise or promote the sale of alcoholic liquor.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1301-3.0 Prohibited Acts {#sec-rule-1301-3.0 omnilex-key=us-de-regs-official--title-4--Rule 1301-3.0}

3.1 No person licensed by the Commissioner shall sell or offer to sell alcoholic liquor by means of any advertisement or promotion including any statement, representation, symbol, depiction, or reference, directly or indirectly, which:

3.1.1 Would reasonably be expected to induce minors to purchase or consume alcoholic liquor.

3.1.2 Would reasonably be expected to induce any person to consume alcoholic liquor to excess.

3.1.3 Is illegal under any federal, state, or local law, or Commissioner rule.

3.1.4 Makes any humorous or frivolous reference to, or is suggestive of, the intoxicating effects of alcoholic liquor.

3.1.5 Is false or misleading in any material respect, or implies that the product has a curative or therapeutic effect.

3.2 No person, corporation, partnership, or other entity licensed by the Commissioner to sell alcoholic liquor shall engage in any deceptive or misleading advertising, or cause or permit his/her name to appear in, or be used in conjunction with, any deceptive or misleading advertisement or promotion of alcoholic liquor.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1301-4.0 Signs on Licensed Premises {#sec-rule-1301-4.0 omnilex-key=us-de-regs-official--title-4--Rule 1301-4.0}

4.1 No package store licensee shall display any sign on the exterior or in the interior of a licensed premises which contains or advertises:

4.1.1 The name, trade name, trademark, symbol, or logo-type of any other retail licensee, or of any unlicensed person, corporation, cooperative advertising group or business entity, or

4.1.2 Any trade name, trademark, insignia, symbol, or logo-type not belonging exclusively to such licensee, unless there is prominently posted, at or near each public entrance, check-out counter, and cash register a sign containing the following statement:

NOTICE TO CONSUMERS:

THIS STORE IS INDEPENDENTLY OWNED AND OPERATED.

IT IS NOT PART OF ANY CHAIN OR COOPERATIVE SALES GROUP.

History

• 19 DE Reg. 775 (02/01/16)

1400 Tastings and Samples

Rule 1401 (Formerly Rule 11.1) Spirits, Wine, and Beer Tastings

4 Del. Admin. Code § Rule 1401-1.0 Applicability {#sec-rule-1401-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1401-1.0}

The Commissioner may grant a spirits, wine, and beer tasting license to any person holding a retailer license as defined by 4 Del.C. §101(5) for a biennial fee of $150.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1401-2.0 Application Process {#sec-rule-1401-2.0 omnilex-key=us-de-regs-official--title-4--Rule 1401-2.0}

2.1 Retailer licensees may apply in writing to the Commissioner for a license to conduct spirits, wine, and beer tasting on their licensed premises.

2.2 Two copies of the establishment's floor plan must accompany the licensee's letter of request. The floor plans must clearly indicate the area to be used for tasting events and shall be submitted on size 8 1/2 x 11 inch paper.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1401-3.0 License Restrictions {#sec-rule-1401-3.0 omnilex-key=us-de-regs-official--title-4--Rule 1401-3.0}

3.1 Pursuant to 4 Del.C. §525, spirits, wine, and beer tasting licenses may only be granted to the holder of retailer's license.

3.2 No licensee shall conduct spirits, wine, and beer tastings without a license from the Commissioner.

3.3 Spirits, wine, and beer tasting may only take place in a separate portion of a licensee's premises approved by the Commissioner where alcoholic beverages are not sold. The separate portion of the premises shall be an area designated by the Commissioner for spirits, wine, and beer tasting.

3.4 No licensee may charge for the alcoholic beverages offered for tasting or for the services involved.

3.5 The quantity of any individual spirit, wine, and beer sampled shall not exceed one (1) ounce per person for wine and beer or one-half (1/2) ounce per person for spirits.

History

• 19 DE Reg. 775 (02/01/16)

Rule 1402 (Formerly Rule 15) A Rule to Regulate the Use of Samples For Tasting

4 Del. Admin. Code § Rule 1402-1.0 Samples for Tasting {#sec-rule-1402-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1402-1.0}

1.1 A licensed Importer may import alcoholic beverages for marketing purposes to provide samples for tasting to the holder of a retailers' license.

1.2 The shipments of alcoholic beverages imported for tax free sampling purposes must not be greater in quantity than three (3) gallons of spirits and/or wine, and/or two and a quarter gallons of beer

1.3 Each sample shall have distinctly printed or stamped across the label thereof or on a sticker permanently affixed to the container adjacent to the label the following legend: "SAMPLE FOR TASTING -- NOT FOR RESALE" in black letters at least one-half inch in height on a white or light yellow background.

History

• 19 DE Reg. 775 (02/01/16)

Rule 1403 (Formerly Rule 16) A Regulation Concerning the Solicitation of Orders for Alcoholic Liquors in the State of Delaware, the Transportation of Samples, and Standards for Providing for the Issuance of Permits in Connection Therewith

4 Del. Admin. Code § Rule 1403-1.0 Solicitation, Transportation, and Permits {#sec-rule-1403-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1403-1.0}

1.1 No person shall solicit orders for alcoholic liquors or transport samples thereof unless such person has in their possession a permit issued to them by the Commissioner. Such permit shall be issued by the Commissioner: (1) upon the request of any licensed manufacturer or Importer; and (2) upon proof that the person to be licensed is employed or sponsored by said manufacturer or Importer; and (3) upon receipt by the Commissioner of an affidavit in the following form executed by the person to be licensed:

STATE OF:

: SS.

COUNTY OF:

I, the undersigned, having been first duly sworn according to law, depose and say as follows:

(1) I desire to secure a license from the Delaware Alcoholic Beverage Control Commissioner under the provisions of Rule 16, and I make this affidavit for that purpose.

(2) I am employed or sponsored by

(3) I am familiar with the laws and Commissioner rules governing the sale and distribution of alcoholic liquors in the State of Delaware, particularly those pertaining to the method of handling samples, prohibiting the offering of inducements in any form, prohibiting tie-in sales, and those concerning credit regulations.

(4) I will not in anyway violate such laws or rules.

(5) I (have-have not) been convicted of a felony a sex offense, a gambling offense, or a law concerning alcoholic beverages. (If answer is in affirmative, attach arrest record.)

---

(Signature of Applicant)

SWORN TO AND SUBSCRIBED before me this ___day of ___________ 20.

---

(Notary Public)

1.2 A license issued by the Commissioner shall be signed, by the person to whom it is issued. Each license shall be valid, unless revoked by the Commissioner, as long as the license holder remains sponsored or employed by the licensed manufacturer or Importer.

1.3 A license may be refused or revoked for cause as set forth above by the Commissioner at any time after a hearing and due notice to the salesman. The salesman shall have the right to be represented by counsel, subpoena witnesses in their behalf, and otherwise offer a defense. The refusal or revocation by the Commissioner shall be in writing and shall state the grounds and reasons therefor. Any person holding a license shall surrender the same to the Commissioner forthwith upon the termination of their employment or sponsorship by a manufacturer or Importer. The employer or sponsor shall notify the Commissioner within two days after termination of the employment or sponsorship of any person holding a license under this rule, or of the arrest of such person for a felony, sex offense, gambling offense, or law concerning alcoholic beverages.

History

• 19 DE Reg. 775 (02/01/16)

1500 Gambling

Rule 1501 (Formerly Rule 40) A Rule Pertaining to Gambling on Licensed Premises

4 Del. Admin. Code § Rule 1501-1.0 Purpose and Findings {#sec-rule-1501-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1501-1.0}

1.1 The purpose of this rule is to promote the health, safety, and welfare of the citizens of this state by providing administrative guidelines for those establishments licensed by the Delaware Alcoholic Beverage Control Commissioner who elect to conduct legalized forms of gambling on their licensed premises.

1.2 It is the finding of the Commissioner that some licensed establishments provide various forms of gambling activities on their licensed premises. While it is not within the scope of the Commissioner's authority to regulate such gambling activities, the Commissioner does, however, recognize its authority to regulate its licensees and to insure that gambling activities taking place in licensed establishments are conducted in strict compliance with the State Constitution and other laws of this state pertaining to the regulation of gambling.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1501-2.0 Authority {#sec-rule-1501-2.0 omnilex-key=us-de-regs-official--title-4--Rule 1501-2.0}

2.1 The Commissioner may adopt and promulgate any rule it deems necessary to carry out its lawful mandate, provided that such rules are not inconsistent with Title 4 of the Delaware Code or of any other law of the state, and all such rules shall have the force and effect of law [4 Del.C. §304(a)(1)).

2.2 The Commissioner notes that all establishments licensed by the state to sell alcoholic liquor are subject to administrative sanctions for unlawful acts committed by licensees, or their employees, in connection with the operation of a licensed establishment.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1501-3.0 Applicability {#sec-rule-1501-3.0 omnilex-key=us-de-regs-official--title-4--Rule 1501-3.0}

This rule shall govern establishments licensed by the Commissioner to sell alcoholic liquor either on or off the premises or both, who elect to conduct legal forms of gambling on the licensed premises.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1501-4.0 Procedure {#sec-rule-1501-4.0 omnilex-key=us-de-regs-official--title-4--Rule 1501-4.0}

4.1 It shall be the responsibility of every holder of a license issued by the Commissioner who conducts, or intends to conduct, any gambling activity authorized by the State Constitution, or other statute of the Delaware Code, to obtain the necessary licenses or permits as required by the appropriate issuing authority prior to conducting any such gambling activity.

4.2 Any licensee of the Commissioner who has legally obtained a license or permit to conduct gambling activities on their licensed premises shall be responsible to insure that the gambling activity is conducted in strict accordance with the rules and regulations of the issuing state authority.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1501-5.0 Prohibited Acts {#sec-rule-1501-5.0 omnilex-key=us-de-regs-official--title-4--Rule 1501-5.0}

No establishment licensed by the Commissioner for the sale of alcoholic beverages either on or off the licensed premises shall engage in, or knowingly permit any patron, employee, staff member or other person under their employ, supervision, direction or control, to engage in or promote any form of illegal or unlicensed gambling activity on the licensed premises in any manner not consistent with the Constitution of this state, or any criminal or civil statute of the Delaware Code.

History

• 19 DE Reg. 775 (02/01/16)

1600 Drug Activities

Rule 1601 (Formerly Rule 70) A Rule Pertaining to Drug Activities on Licensed Premises

4 Del. Admin. Code § Rule 1601-1.0 Purpose {#sec-rule-1601-1.0 omnilex-key=us-de-regs-official--title-4--Rule 1601-1.0}

1.1 This rule implements and clarifies the grant of authority to the Commissioner contained in 4 Del.C. §304(a)(2) to control the time, place, and manner in which alcoholic liquors shall be sold and dispensed. In accordance with this statute, alcoholic liquors shall not be sold or dispensed in any manner inconsistent with Title 4, the Liquor Control Act, or any other law of this state.

1.2 By the promulgation of this rule, the Commissioner finds that alcoholic beverages may not be sold in a place that is also used to deliver, possess, or consume illegal drugs, or deliver or possess illegal drug paraphernalia, or illegal hypodermic syringes or needles, or to conspire or solicit such activities.

1.3 The Commissioner finds that illicit drug activities on licensed premises encourages additional unlawful behavior including acts of violence. Such conditions interfere with public convenience and lawful access to licensed establishments. The Commissioner, therefore, finds licensees have an obligation to prevent this type of activity on their licensed premises.

1.4 The Commissioner recognizes, in promulgating this rule, that illicit drug activities are often conducted surreptitiously and that it would be inappropriate to hold a licensee responsible for such behavior. However, licensees may not ignore or act negligently in policing conditions on licensed premises which would lead a reasonable person to conclude that illegal drug activity is occurring. An affirmative defense is, therefore, provided to the licensee under this rule who takes the prescribed action.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1601-2.0 Applicability {#sec-rule-1601-2.0 omnilex-key=us-de-regs-official--title-4--Rule 1601-2.0}

This rule shall govern the manner in which all licensees, agents of licensees, and employees of licensees, conduct themselves concerning illegal drug activity on premises licensed by the Delaware Alcoholic Beverage Control Commissioner.

History

• 19 DE Reg. 775 (02/01/16)

4 Del. Admin. Code § Rule 1601-3.0 Prohibited Practices {#sec-rule-1601-3.0 omnilex-key=us-de-regs-official--title-4--Rule 1601-3.0}

3.1 No licensee, its agents or employees, shall suffer, permit, or participate in any illegal drug activity on the premises of a licensed establishment, or in a vehicle licensed by the Commissioner, that is prohibited by the Uniform Controlled Substance Act of the State of Delaware, Title 16, Chapter 47, or the Delaware Criminal Code, Title 11, Chapter 5, Sub-Chapter I, of the Delaware Code of 1974 as amended.

3.2 It is an affirmative defense to the prosecution of a violation of this rule that the licensee, its agent, or employee, immediately contacted law enforcement officials when said licensee became aware through actual or constructive notice that a violation of 16 Del.C. Ch. 47, or 11 Delaware Code, Chapter 5, Sub-Chapter I, of the Delaware Code of 1974, as amended, had occurred, was occurring, or was about to occur on their licensed premises.

History

• 19 DE Reg. 775 (02/01/16)