Licenses and Taxes

Del. Code tit. 4, ch. 5

in effect

Del. Code tit. 4, § 501 Supplier and representative licenses; importer; delivery and storage at in-state warehouse [Effective until Oct. 21, 2026].

(a) (1) Before a person sells alcoholic liquor intended for importation into this State, the person shall do all of the following: a. Obtain from the Commissioner a supplier’s license in the form prescribed by the Commissioner. b. Pay a biennial license fee in the amount of $100 to be permitted to sell not more than 200 cases of alcoholic liquors for importation into this State during the calendar year or a biennial fee in the amount of $1,000 to be permitted to sell more than 200 cases of alcoholic liquors for importation into this State during the calendar year. (2) This subsection does not apply to any of the following: a. A person licensed under subsection (b) of this section. b. A person who is licensed by the Commissioner and has a place of business in this State for the manufacture or sale of alcoholic liquors. c. A person who is an officer, director, or employee of a person who is licensed by the Commissioner and has a place of business in this State for the manufacture or sale of alcoholic liquors. (b) (1) Before a person may do any business in this State in any manner whatsoever as a sales representative of a person who sells any alcoholic liquors intended for importation into this State, the person shall do all of the following: a. Obtain from the Commissioner a sales representative license in the form to be prescribed by the Commissioner. b. Pay a $50 biennial license fee. (2) Unless employed in any way by a person required to be licensed under subsection (a) of this section, this subsection does not apply to any of the following: a. A person who is licensed by the Commissioner and has a place of business in this State for the manufacture or sale of alcoholic liquors. b. A person who is an officer, director, or employee of a person who is licensed by the Commissioner and has a place of business in this State for the manufacture or sale of alcoholic liquors. (c) (1) This section does not apply to a daily importation into this State of a quantity of alcoholic liquor that does not exceed the amount of alcoholic liquor the United States government permits to be imported into the United States without payment of any duty thereon, provided such alcoholic liquor is imported as follows: a. By a person permitted by the laws of this State to purchase and consume alcoholic liquor. b. Solely for consumption by the person importing it or the person’s family or guests. (2) If such importation is by motor vehicle, the alcoholic liquor must be transported in an area of the motor vehicle not immediately accessible to the driver or to any passenger in the motor vehicle. (d) Persons licensed by the Commissioner as suppliers under this section are authorized only to sell, ship, or deliver alcoholic liquors to licensed Delaware importers or manufacturers, and persons licensed by the Commissioner as sales representatives under this section are authorized only to solicit orders, on behalf of licensed Delaware importers or manufacturers, from persons licensed by the Commissioner to sell alcoholic liquors. (e) The Commissioner may promulgate rules and regulations the Commissioner deems necessary for the enforcement or furtherance of the objectives of this section. The Commissioner may provide by such rules or regulations that the applicant for a supplier’s license may pay a fee for each calendar year or pay the increased fee during any calendar year without the filing of an additional application. (f) (1) A person may not import alcoholic liquor into this State, unless the alcoholic liquor is delivered directly to a licensed warehouse in this State owned, leased, or operated by a licensed Delaware importer and is unloaded and physically stored in the warehouse (2) An importer licensed as a supplier by the Commissioner must deliver alcoholic liquors directly to a licensed warehouse in this State owned, leased, or operated by a licensed Delaware importer and unload and physically store the alcoholic liquors in the warehouse.

Del. Code tit. 4, § 502 Application; requirements.

(a) The application for a license to manufacture or to import alcoholic liquor shall be made upon a blank form furnished by the Commissioner and shall state: (1) The name, age, and previous occupation of an individual applicant or the name and description of a partnership, corporation, or other applicant organization; (2) The location and description of the premises, located in this State, where it is proposed that such alcoholic liquor is to be manufactured or is to be stored by the importer prior to its resale in the State and whether the premises are owned or leased by the applicant and, if leased, the name of the owner thereof; (3) The amount of capital proposed to be invested in the undertaking; (4) The kind and approximate amount of alcoholic liquor proposed to be manufactured or imported; (5) The approximate date on which it is proposed to start such manufacture or importation; (6) Such other information as is required by the Commissioner. (b) The individual signing the application for a license to manufacture or to import alcoholic liquor shall be over 21 years of age.

Del. Code tit. 4, § 503 Inspection of premises.

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

Del. Code tit. 4, § 504 Bond.

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

Del. Code tit. 4, § 505 Conditions for issuance of license.

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

Del. Code tit. 4, § 506 Interest in establishment selling to consumer.

(a) It shall be unlawful: (1) For a manufacturer or supplier, or the owner, partner or stockholder of a manufacturer or supplier, to own or be interested in any manner in any establishment licensed by the Commissioner to sell alcoholic liquors, either by the bottle or by the glass to the consumer thereof for consumption either on or off the premises where sold; or (2) For a manufacturer, as defined in § 101 of this title, and whether or not said “manufacturing” takes place within this State and whether or not the activity is licensed by the Commissioner, or the owner, partner or stockholder of such a manufacturer, to own or be interested in any manner in any establishment licensed by the Commissioner to import alcoholic liquors into the State; or (3) For a supplier, whether or not licensed by the Commissioner, who manufactures or has an interest in a manufacturer, or the owner, partner or stockholder of such a supplier, to own or be interested in any manner in any establishment licensed by the Commissioner to import alcoholic liquors into the State; or (4) For a supplier licensed by the Commissioner, or the owner, partner or stockholder of such a licensed supplier, to own or be interested in any manner in any establishment licensed by the Commissioner to import alcoholic liquors into the State; or (5) For any importer, or the owner, partner or stockholder of an importer, to own or be interested in any manner in any establishment licensed by the Commissioner to sell alcoholic liquors, either by the bottle or by the glass, to the consumer thereof, for consumption either on or off the premises where sold. (b) This section shall not be construed to prohibit a manufacturer, supplier or importer doing business as a corporation, or the stockholders thereof, from having an interest in any establishment licensed to sell alcoholic liquors to the consumer thereof, where: (1) The stock of such manufacturer, supplier or importer and such establishment is publicly traded on a national or regional exchange or over-the-counter; (2) The manufacturer, supplier or importer does not use its ownership interest in such establishment as to induce, directly or indirectly, such establishment to purchase any products from the manufacturer, supplier or importer to the exclusion, in whole or in part, of products sold or offered for sale by other manufacturers, suppliers or importers. (c) This section shall not be construed to prohibit a manufacturer or supplier doing business as a corporation, or the stockholders or affiliates thereof, from having an interest in or obtaining a license for a boat pursuant to § 554(b) of this title.

Del. Code tit. 4, § 507 Monthly report.

(a) Notwithstanding any of the provisions of this chapter, every importer of alcoholic liquors licensed by the Commissioner shall make a report to the Commissioner every month, in the form that the Commissioner determines, which report shall contain an exact return of the gross amount of each variety of alcoholic liquors bought by the importer and alcoholic liquors sold within this State during the preceding calendar month. The Commissioner may require such returns to be certified under oath or affirmation of the holder of the license, or of such other person approved by the Commissioner. (b) Any importer who fails to make a return to the Commissioner within 15 days following the expiration of any calendar month for which it should be made shall be fined $50 per day for each day’s delay counting from the expiration of said 15 days, and the license of such importer shall be suspended by the Commissioner if the return is not made within 15 additional days.

Del. Code tit. 4, § 508 Filing of price schedules required.

(a) All manufacturers and distilleries offering alcoholic liquors for sale in this State shall annually file a verified schedule, in writing, on the form required by the Commissioner. A verified schedule must contain all of the following information as to each item the manufacturers and distilleries are offering for sale at that time, in this State, by brand or trade name: (1) The capacity of each package of an item offered for sale. (2) The nature of the contents of an item. (3) The age and proof of an item where stated on the container label. (4) The number of bottles of an item contained in a case of the item. (5) The individual bottle and case price to the Delaware wholesaler or importer, for each item and not in combination with any other item. (6) The discount given for quantity or time of payment, if any. (b) A verified schedule need not contain information as to any brand that is owned exclusively by a package store and sold at retail in this State exclusively by the package store. (c) A schedule of prices or price of an individual item need not be filed at any time other than provided for in subsection (a) of this section and need not be updated any time a manufacturer or distillery changes such prices between required filing times.

Del. Code tit. 4, § 511 General licensing requirements.

(a) (1) Upon proper application, the Commissioner may grant licenses to persons described in §§ 512-521 of this title to purchase and resell or dispense alcoholic liquor in the manner and to the extent provided in those sections. The person to whom such license is granted may purchase, resell or dispense alcoholic liquor in accordance with the person’s license if the license fee has been paid and the license is still in force. (2) a. Except as provided in paragraph (a)(2)b. of this section, a person licensed under §§ 512 and 516 of this title may purchase product only from an importer licensed by the Commissioner. b. A person licensed under §§ 512 and 516 of this title may purchase up to 20 gallons of product per day from a licensee licensed by the Commissioner for off-premises sales. (b) If a licensee holds an on premises license and an off premises license, voluntary relinquishment of 1 of the said licenses and the retention of the other license shall be permitted automatically by the Commissioner. (c) If a person applies for a license as a motorsports speedway under § 512(a) of this title, in lieu of compliance with the procedural notice and protest requirements of §§ 524 and 541 of this title, the Commissioner shall, on the date the application is filed, schedule a hearing to consider the application to be held at least 20 days after the application filing date and notify applicant of the hearing date. Within 3 days thereof, the applicant shall: (1) Mail a notice by certified mail, return receipt requested, to all property owners within 1,000 feet from any point on the boundary line of the premises to which the license shall apply; and (2) Cause to be advertised a notice in at least 2 different newspapers for 3 issues circulated in the community in which the applicant will operate. The said notices of the time and location of the hearing shall be approved by the Commissioner prior to distribution.

Del. Code tit. 4, § 512 Licenses.

(a) Any person, who is the owner or lessee, or who is recognized by the Commissioner as being in charge of a hotel, beer garden, motel, taproom, restaurant, motorsports speedway, concert hall, horse racetrack, multi-purpose sports facility, club or multiple activity club, may apply to the Commissioner for a license to purchase spirits, beer, or wine from an importer and to receive, keep and sell such spirits, beer, or wine either by the glass or by the bottle for consumption on any portion of the premises approved by the Commissioner for that purpose. Such a license entitles a club to sell such spirits, wine, or beer only to members of that club. A multiple activity club which holds such a license may apply for an additional license to sell such spirits, wine, or beer to any person who is a guest of such club or of a member of such club who is duly registered in accordance with a bylaw or rule of such club, approved by the Commissioner, provided that if the Commissioner determines that any applicant is not a multiple activity club, as defined in § 101 of this title, the application shall be denied. There shall be no age restrictions on persons permitted on the premises of a licensed multiple activity club. (1) Notwithstanding any law, regulation, or rule to the contrary, any restaurant, brewpub, tavern, or taproom, or other entity with a valid on-premise license issued pursuant to subchapter II of Chapter 5 of this title may sell alcoholic liquors in transactions for take-out, curbside, drive through, or delivery service. No person shall provide alcoholic beverage delivery services unless such person or business entity holds a third-party delivery license. Upon proper application, the Commissioner may grant a third-party delivery license to provide alcoholic liquor delivery services to customers so long as the person or business entity is also registered to do business in this State. The Commissioner shall not grant a third-party delivery license to a person or entity that also holds an on-premise license. Delivery service must be made by a licensed third-party vendor, or such third party’s employee or independent contractor, provided that the on-premise licensee has entered into a written agreement with a licensed third-party delivery vendor that authorizes the third-party vendor, or such third-party vendor’s employee or independent contractor, to deliver alcoholic liquors on behalf of the on-premise licensee. The licensed third-party vendor may not include an entity whose business is primarily the interstate shipment of goods. (2) All alcoholic liquors sold for off-premise consumption under this subsection must comply with all of the following requirements: a. Be sold in containers that are securely closed, which means a container that is designed to prevent consumption without removal of the lid, cap, or seal, and does not include a container with a lid with sipping holes or openings for straws. b. [Repealed.] c. Be limited per customer to 2 750 ML bottles of wine, 1 bottle of a private label whiskey or whisky purchased from a Delaware-licensed importer that is either limited availability or limited allocation, 6 servings of beer, and mixed cocktails which are made in the restaurant, brewpub, tavern, taproom or other entity with a valid on-premise license. d. Be sold and served on the premises only by a person certified as a responsible alcoholic beverage server pursuant to § 1205 of this title. e. If sold by a restaurant, comply with 1 of the following requirements: 1. The alcoholic liquor is sold with the customer’s purchase of food that costs at least $10. 2. The alcoholic liquor is ice cream containing up to 10% alcohol by volume. f. If sold in a transaction for delivery service: 1. Be delivered by a licensed third-party vendor, or such licensed third-party vendor’s employee or independent contractor, who is at least 21 years of age, and has been provided a program of learning content related to the responsible delivery of alcoholic beverages that has been approved by the Commissioner. A third-party delivery vendor’s program shall address the following topics: A. Age requirements for possessing, purchasing, and consuming alcoholic beverages; B. Acceptable forms of identification; C. Methods to detect fake and altered forms of identification; D. Typical signs of intoxication; E. Methods of detecting intoxication in consumers; F. Reasons to refuse delivery, including that a consumer failed to provide valid identification, was underage, or displayed signs of intoxication; and G. How to use ID scanning technology to verify a recipient’s age. 2. If delivered by motor vehicle, be placed in a trunk, rear compartment, back seat, or other area that is not readily accessible to the driver of the vehicle. 3. Be conveyed to the purchaser to whom the alcoholic liquors are being delivered only after the licensed third-party delivery vendor, or such third party’s employee or independent contractor, has verified that the recipient is not intoxicated and is 21 years of age or older, signified by the recipient’s identification with a photograph that reasonably appears to match the appearance of the recipient. The licensed third-party delivery vendor shall maintain a record of the following information for all recipients for a period of 2 years: name, date of birth, and address to which the alcoholic beverages were delivered. If such person’s age and apparent sobriety cannot be verified, the alcoholic liquors must be returned to the premises of the licensee. 4. The delivery is completed during the hours in which the on-premise licensee is lawfully allowed to sell alcoholic liquors. 5. If the on-premise licensee uses a web application or internet website to facilitate delivery of alcoholic liquors by a licensed third-party vendor, the sales transactions take place between the customer and the on-premise licensee, and the on-premise licensee appears as the merchant of record. 6. Only alcoholic beverages obtained directly from the on-premise licensee with which the order was placed may be delivered. 7. May not be delivered out-of-state or to a state-operated facility, a correctional facility, a hospital, a locker mailbox, a post office box, a package shipping or storage facility, a retail licensee, a public school, a charter school, a grade school, a middle school, a high school, undergraduate housing at an institution of higher learning, or outside of Delaware. 8. In addition to application requirements and any regulations promulgated by the Commissioner, third-party delivery licensees shall provide to the Commissioner, upon request, a copy of any contracts entered into by the third-party delivery licensee with any on-premise licensee offering alcoholic beverages for delivery. g. An on-premise licensee’s responsibilities under this section regarding delivery of alcoholic liquor to a consumer by a licensed third-party delivery vendor are considered satisfied at the time the on-premise licensee transfers possession of the alcoholic liquor to the licensed third-party delivery vendor, or such third party’s employee or independent contractor. The acts during delivery of a licensed third-party delivery vendor or such third party’s employee or independent contractor are not attributable to the on-premise licensee. (b) (1) The license issued to a horse racetrack or multi-purpose sports facility pursuant to this section shall continue to be valid whether or not a race meet or sporting event is in progress. (2) Subject to the provisions, restrictions and prohibitions of this title, the Commissioner may allow a horse racetrack to brew beer on its premises under all of the following conditions and restrictions: a. The brewing facility must be situated on the premises of, or be physically a part of, the horse racetrack. b. The brewing facility must not brew more than 4,000 barrels of beer in any calendar year. c. In addition to other permitted sales, the horse racetrack may sell at the licensed premises beer manufactured on the licensed premises for on-premises consumption. d. In addition to other permitted sales, the horse racetrack may sell at the licensed premises beer manufactured on the licensed premises for consumption off of the premises if the beer is sold in a growler. e. The horse racetrack may sell beer manufactured on licensed premises in labeled barrels, bottles, or other closed containers to wholesalers licensed under this title for delivery by them to persons inside or outside this State. f. The horse racetrack is prohibited from owning, operating, or being affiliated with any importer of alcoholic liquor, either in or without this State. g. The Commissioner may make and publish such rules and regulations with respect to the assessment and payment of the tax on beer, under § 581 of this title, as the Commissioner deems proper, and all such rules and regulations that are not inconsistent with this title shall have the force and effect of law. (3) The issuance of a horse racetrack license that permits the manufacture and sale of beer for off-premises consumption are exempt from the distance requirements for establishments licensed or to be licensed under § 543(d) of this title, and such requirements do not affect the granting of a horse racetrack license. (c) Any person operating a dinner theater presenting public performances featuring live actors in dramatic or musical productions may apply to the Commissioner for a license to keep and sell alcoholic liquor to patrons for consumption on the premises served at such performances, and for consumption on the premises during intermissions, subject to such rules and regulations as may be promulgated by the Delaware Alcoholic Beverage Control Commissioner, provided that the licensee does not serve alcohol unaccompanied by a meal at more than 10 performances during the calendar year. (d) Any person who has purchased a bottle of alcoholic liquor other than beer from a premises licensed for the sale and consumption on the premises where sold licensed under this title, and who has partially consumed the contents of such bottle on the licensed premises, may, if the bottle is capped, remove it from the licensed premises for the purpose of consumption off the licensed premises. (e) Any person receiving a license under this section shall be permitted to charge a cover charge at any time live entertainment is actually being provided by the licensee, provided that any licensee charging a cover charge shall prominently display the fact that a cover charge is being made, both at the entrance to the premises and on the menu if one is used on the premises. (f) Any person operating a bowling alley or movie theater may apply to the Commissioner for a license to keep and sell alcoholic liquor to patrons for consumption on the premises only. A license for a movie theater shall allow for consumption by patrons within the theater or theaters where movies are being shown. A movie theater which obtains a license must sell alcoholic liquors at a separate bar or location away from other food and drink, may only sell 1 alcoholic beverage at a time per age-verified patron and may only serve 2 alcoholic beverages per patron per movie showing. Movie theater managers and employees involved in serving alcohol must complete alcohol service training as prescribed by the Commissioner. (g) (1) A caterer may apply to the Commissioner for a license to purchase alcoholic liquors from an importer and to receive, keep and sell such alcoholic liquors either by the glass or by the bottle, for consumption on any portion of the premises approved by the Commissioner for that purpose. (2) An off-site caterer may apply to the Commissioner for a license to purchase alcoholic liquors from an importer and to receive, keep, transport and sell such alcoholic liquors either by the glass or by the bottle for consumption on any portion of off-site premises approved by the Commissioner for that purpose. Transporting of alcoholic liquors by an off-site caterer must be done in accordance with the Commissioner’s rules. (h) Notwithstanding any provision of this title to the contrary, motorsports speedways may permit patrons to bring inside with them alcoholic beverages regulated under this title for their own personal consumption, provided that they have a lawful ticket for admission to the facility and are of the lawful age to consume alcoholic beverages. The motorsports speedway may restrict the portions of the facility that patrons may act in accord with this section. Notwithstanding any provision of this title to the contrary, a motorsports speedway is not required to maintain a license required pursuant to § 554 of this title in order to permit patrons to bring inside with them alcoholic beverages regulated under this title for their own personal consumption. (i) A certificated air passenger carrier maintaining and operating a warehouse storage facility in the State may apply to the Commissioner for a license to purchase alcoholic liquors from an importer and to receive at the carrier’s warehouse or airport facility, keep at the carrier’s warehouse or airport facility, transport to the carrier’s airport facility, and sell such alcoholic liquor to its passengers for consumption on its aircraft only. (j) An establishment licensed as a restaurant shall not be required to use the word “restaurant” in its tradename, menus, advertisements or signage unless the Commissioner specifically finds that the public may be confused as to its status as a restaurant. (k) Any person who holds a valid restaurant license issued by the Commissioner may deny a minor, as defined in § 708 of this title, admission to or permission to remain on the premises after 9:00 p.m. (official Eastern time) unless accompanied by a parent or by a legal guardian.

Del. Code tit. 4, § 512A Farm wineries.

(a) Upon proper application and subject to the provisions, restrictions and prohibitions of this title, the Commissioner may grant a license to any person who is the owner or lessee of a farm winery to manufacture, ferment, blend, age, store and bottle wine, mead, and cider on the premises designated in the license. For purposes of this title, a “farm winery” is defined as an establishment at which the basic ingredients, including but not limited to the harvesting of grapes, to make wine are grown and where wine, mead, or cider are fermented or manufactured. Notwithstanding any provisions of this title to the contrary, a farm winery licensee shall be authorized to sell, deliver and ship such wine, mead, and cider in barrels, bottles or other closed containers to persons licensed under the provisions of this title to import wine, mead, and cider; and to sell and ship wine, mead, and cider to persons outside of the State in accordance with this title. (b) A farm winery licensee may store and sell wine, mead, and cider on the premises by the bottle or by the glass for consumption on or off the premises where sold. A farm winery licensee may purchase and store product from a Delaware-licensed importer or package store, licensed under § 516 of this title, and sell the product to its retail customers for consumption on the premises where sold, so long as the product is manufactured by an entity that holds a Delaware license under § 512A, § 512B, § 512C, or § 512E of this title or the manufacturer, as determined by the Commissioner, would qualify for a license under 1 or more of these sections if the manufacturer were physically located in this State. (c) A farm winery licensee shall be exempt from the distance requirements for establishments licensed, or to be licensed, for consumption off the premises, as contained in § 543(d) of this title, and shall not affect the granting of a license of the same type. (d) A farm winery licensee may sell, on the licensed premises, food items, souvenirs, wine-related supplies and educational material as approved by the Commissioner. (e) The Commissioner may grant a tasting license to a farm winery licensee consistent with the provisions of §§ 525 and 554(ff) of this title. (f) All wine, mead, and cider sold by a farm winery licensee shall be in a container which is securely sealed and has attached thereto a label setting forth such information as required by this title, Commissioner rules and laws of the State. (g) A farm winery licensee may not engage in any business or activity in the licensed establishment unless authorized by this title or approved by the Commissioner. (h) A farm winery licensee or a temporary licensee not to exceed 3 years shall be authorized to purchase and receive shipments of bottled, finished wine, mead, and cider from importers located within the State that are licensed in accordance with this title. Such purchases and shipments, if in bottled, finished form, must be manufactured specifically for the Delaware farm winery licensee and bear the private label of the Delaware farm winery licensee on each bottle, and, if being imported from without the State, shall be limited, as follows: (1) During the first year of operation, no more than 10,000 gallons of the combination of wine, mead, and cider; (2) During the second year of operation, no more than 7,500 gallons of the combination of wine, mead, and cider; (3) During the third year of operation, no more than 5,000 gallons of the combination of wine, mead, and cider; and (4) After 3 years of operation, no more than 25% of the total gallons of the combination of wine, mead, and cider manufactured within the State. (5) Notwithstanding the importation limitations for bottled wine established in this paragraph, at such time when there is sufficient quantity, variety and quality of wine grapes grown in the State, then the Secretary of the Department of Agriculture may mandate that all licensed Delaware farm wineries must use at least 51% Delaware-grown fruit in their blend inventories. In the case of hardship due to crop loss, the Secretary of the Department of Agriculture may issue a special permit to import fruit, juice or other raw materials to compensate for such crop loss. Until such time as the Secretary of the Department of Agriculture makes such mandate, the licensee or a temporary licensee not to exceed 3 years shall be authorized to import grapes or grape juice from other locations within or outside of the State, pursuant to the rules and regulations of the Department of Agriculture, for the purpose of fermentation, blending, bottling and aging. (6) [Repealed.] (7) A temporary farm winery license may be issued, for not more than 3 years, allowing the temporary licensee to operate according to paragraphs (h)(1), (2) and (3) of this section herein if all the licensing requirements have been met except for those required in § 543(j) of this title, which requires government permitting to manufacture or ferment wine, mead and cider at the location. The temporary licensee shall, however, have obtained all necessary government permitting to operate as a temporary licensee. (i) A farm winery licensee shall be authorized to purchase and receive shipments of unfinished wine, mead, and cider in bulk form from suppliers and importers located within and without the State that are licensed in accordance with this title. (j) A farm winery licensee may not own, operate, or be affiliated with any importer or package store, within or without this State. But a farm winery may apply to the Commissioner for a license, under § 512(g)(1) of this title, for use of a portion of the farm winery premises as a caterer or apply to the Commissioner for a license, under this title generally, for use of a portion of the farm winery premises as a restaurant. (k) The Commissioner may promulgate such rules and regulations with respect to the enforcement or furtherance of the objectives and provisions of this section as the Commissioner may deem necessary, and all such rules and regulations that are not inconsistent with the provisions of this title shall have the force and effect of law. ( l ) A Delaware winery or farm winery shall be permitted to sell wine, mead, and cider at times permitted pursuant to § 709 of this title. (m) A farm winery licensee shall be authorized to export grapes, grape juice or unfinished wine grown in this State in bulk to persons outside the State for crushing, fermenting, bottling and labeling and shall be authorized to receive the finished product from that person, so long as no grapes, grape juice or wine, grown or manufactured outside the State, are added to the finished product. (n) The provisions of § 506 of this title to the contrary notwithstanding, a farm winery licensee shall be permitted to have an interest in, be affiliated with, operate, or own another supplier or manufacturer located outside the State and have an interest in a brewery-pub, microbrewery, and/or craft distillery licensed under this chapter and actually located in this State.

Del. Code tit. 4, § 512B Brewery-pubs.

(a) Subject to the provisions, restrictions, and prohibitions of this title, the Commissioner may grant a brewery-pub license to each qualified applicant. No person shall own or operate a brewery-pub unless licensed to do so by the Commissioner. For purposes of this section, a “brewery-pub” means an establishment in which beer, cider, mead, or fermented beverages are manufactured on the premises of the licensed establishment, limited to restaurants owned or leased by the brewery-pub applicant. (b) The following conditions and restrictions shall apply to the holder of each brewery-pub license: (1) It must be situated on the premises of, or be physically a part of, a restaurant. (2) It may brew, bottle, and sell beer at no more than 3 licensed establishments, provided that each such licensed establishment qualifies as a separate brewery-pub under this section. (3) It shall brew no more than 4,000 barrels of beer in any calendar year. (4) It may sell beer manufactured on licensed premises in labeled barrels, bottles, or other closed containers to wholesalers licensed under this title for delivery by them to persons inside or outside this State. (5) It may sell at the licensed premises beer manufactured on the licensed premises at retail for consumption off the premises. (6) It may sell at the licensed premises beer manufactured on the licensed premises for on-premises consumption. (7) It is prohibited from owning, operating, or being affiliated with any importer of alcoholic liquor, either in or without this State. (8) The provisions of § 506 of this title to the contrary notwithstanding, it may have an interest in, be affiliated with, operate, or own another supplier or manufacturer located outside the State and have an interest in 1 or more farm winery, microbrewery, or craft distillery licensed under this chapter and physically located in this State, if the total domestic sales of beer of all affiliated suppliers or manufacturers does not exceed 6 million barrels in a calendar year. (c) It is unlawful for a person to operate a brewery-pub if any of the following apply: (1) The restaurant portion of the licensed establishment fails to offer complete meals for consideration to patrons or fails to operate as a bona fide restaurant as defined by Commissioner rules or this title. (2) The license is denied, cancelled, suspended, or revoked for any of the grounds contained in § 543 or § 561 of this title. (3) The business is transferred to a different location. (d) This section does not prohibit the granting of a restaurant license to sell alcoholic liquors, for on-premises consumption, under § 512 of this title. (e) The Commissioner may make and publish such rules and regulations with respect to the assessment and payment of the tax on beer, as contained in § 581 of this title, as it deems proper, and all such rules and regulations that are not inconsistent with this title shall have the force and effect of law. (f) Notwithstanding any other provision of this title to the contrary, the holder of a brewery-pub license may also make, bottle, and sell an alcoholic liquor that is fermented or distilled on the premises, subject to all of the following conditions and restrictions: (1) All of the conditions and restrictions relating to beer under subsection (b) of this section. (2) Alcoholic liquor that is fermented or distilled on the premises shall be taxed under § 581 of this title. (g) The provisions of § 546 of this title to the contrary notwithstanding, the sale for off-premises consumption at up to a combined total of 3 licensees licensed under this section or 2 licensees licensed under this section and a microbrewery licensed under § 512C of this title all owned or controlled by the same person is permitted. (h) Notwithstanding any provision of this title to the contrary, a brewery-pub located within the premises of a public golf course, as defined in “club” under § 101 of this title, may apply to the Commissioner for authorization to sell alcoholic beverages at retail to members of the public for consumption on the public golf course, if the public golf course owns, is owned by, or is under common ownership with an entity that holds a membership or ownership interest in the licensed brewery-pub.

Del. Code tit. 4, § 512C Microbreweries; license; alternating premises [Effective until Oct. 21, 2026].

(a) Upon proper application and subject to the applicable provisions, restrictions, and prohibitions under this title, the Commissioner may grant a license to any of the following: (1) A person who is the owner or lessee of a microbrewery to manufacture and sell beer, fermented beverages, mead, and cider. (2) A person who owns a tenant microbrewery under subsection (i) of this section. (b) For purposes of this section: (1) “Alternating premises” means the portion of a microbrewery’s premises that is used at different times by 2 or more microbreweries to manufacture beer, fermented beverages, mead, or cider. (2) “Host microbrewery” means the microbrewery that owns the brewing equipment in an alternating premises. (3) “Microbrewery” means a single establishment in which beer, fermented beverages, mead, or cider is manufactured and which is operated by the licensee under this section. (4) “Tenant microbrewery” means the microbrewery that does not own, but uses, the brewing equipment in an alternating premises. (c) Notwithstanding any provision of this title to the contrary, a microbrewery license allows the licensee to do all of the following: (1) To manufacture and sell on the licensed premises beer, fermented beverages, mead, or cider or a combination thereof, but the licensee may not manufacture or sell more than the maximum amount permitted by federal regulations to qualify for a “reduced rate of tax for certain brewers” under 27 C.F.R., Part 25, § 25.152(a)(2). (2) To manufacture on the licensed premises beer, fermented beverages, mead, or cider for persons, other than the licensee, licensed under this title or for persons outside this State. (3) To sell beer, fermented beverages, mead, and cider manufactured on the licensed premises in labeled barrels, bottles, or other closed containers to importers licensed under this title for delivery by them to persons inside or outside the State. (4) To sell at the licensed premises beer, fermented beverages, mead, and cider manufactured on the licensed premises for consumption on or off the licensed premises. The amount of beer, fermented beverages, mead, and cider sold for off-premises consumption is limited to a maximum of 5 cases per day to each retail customer. (5) To purchase and store product from a Delaware-licensed importer or package store licensed under § 516 of this title, and sell the product to its retail customers for consumption on the premises where sold, so long as the product is manufactured by an entity that holds a Delaware license under § 512A, § 512B, § 512C, or § 512E of this title or the manufacturer, as determined by the Commissioner, would qualify for a license under 1 or more of these sections if the manufacturer were physically located in this State. (6) The provisions of § 506 of this title to the contrary notwithstanding, to be permitted to have an interest in, be affiliated with, operate, or own another supplier or manufacturer located outside the State and have an interest in a farm winery, brewery-pub, or craft distillery licensed under this chapter and actually located in this State, provided that the total domestic sales of beer of all affiliated suppliers or manufacturers does not exceed 6 million barrels in a calendar year. (d) It is unlawful for a person to operate a microbrewery if any of the following apply: (1) The license is denied, canceled, suspended, or revoked for any of the grounds under § 543 or § 561 of this title. (2) The establishment is moved to a location other than the licensed premises. (3) The licensee owns, operates, or is affiliated with any importer of alcoholic liquor either in or without this State. (e) A microbrewery licensee is exempt from the distance requirements for establishments licensed or to be licensed under § 543(d) of this title, and such requirements may not affect the granting of a microbrewery license. (f) All beer, fermented beverages, mead, and cider sold by a microbrewery licensee for off-premise consumption must be in containers that are securely sealed and have an attached label setting forth the information required under this title, Commissioner rules, and laws of the State. (g) Any microbrewery or brewery licensed by the Commissioner to manufacture beer, fermented beverages, mead, or cider in this State may provide samples of the beer, fermented beverages, mead, or cider manufactured at the licensed premises in a manner approved by the Commissioner. (h) Notwithstanding § 546 of this title, a microbrewery may sell a product that the microbrewery manufactures for off-premises consumption at a licensee licensed under this section and either at up to 2 brewery-pubs licensed under § 512B of this title or 1 additional microbrewery licensed under this section and 1 brewery-pub licensed under § 512B of this title that are all owned or controlled by the same person. (i) (1) The requirements to grant a license to a tenant microbrewery must include all of the following: a. An agreement with a host microbrewery that allows the tenant microbrewery to use the host microbrewery’s brewing equipment for specified periods of time to manufacture beer, fermented beverages, mead, or cider. The compensation to the host microbrewery under an agreement may not be based upon the profit of the tenant microbrewery and is subject to the approval of the Commissioner. b. The host microbrewery and the tenant microbrewery must have the approval of the Federal Trade and Tax Bureau (“TTB”), or its successor, to operate as an alternating premises. c. The tenant microbrewery must retain title to all of the tenant microbrewery’s raw materials, except for water. d. The tenant microbrewery must act as the brewer of the beer, fermented beverages, mead, or cider. e. Upon completion of the manufacturing process, the tenant microbrewery shall remove all product from the alternating premises and transport the product to a location approved by the Commissioner for the tenant microbrewery to store and sell for on or off premises consumption. A tenant microbrewery may satisfy the requirement under this paragraph (i)(1)e. by leasing space from the host microbrewery but the tenant microbrewery may only store the tenant microbrewery’s brands in the leased space. (2) The Commissioner may suspend or revoke the license of the tenant microbrewery upon the termination of the agreement between the host microbrewery and the tenant microbrewery. (3) The Commissioner may suspend all licenses at the alternating premises if the TTB suspends the approval of the host or tenant microbrewery, The Commissioner must provide reasons for and conditions of a suspension under this paragraph (i)(3).

Del. Code tit. 4, § 512D Wine and spirits auctions.

(a) Subject to the provisions, restrictions and prohibitions of this title, the Commissioner may grant a wine auction license, a spirits auction license, or a wine and spirits auction license to each qualified applicant. No person shall operate a wine auction or spirits auction unless licensed to do so by the Commissioner. For purposes of this section: (1) A “wine auction” shall mean a person, partnership or corporation that sells rare or fine wines on consignment from the owners of said wines or obtained from private collections at public auction to those persons who are of legal age to purchase such items. A nonprofit organization may apply for a “wine auction-gathering license” for a specific date upon application to the Commissioner as a fund raiser for their organization. (2) A “spirits auction” shall mean a person, partnership or corporation that sells rare or collectable spirits obtained from private collections at public auction to those persons who are of legal age to purchase such items. (b) Said wine auction license holder or spirits auction license holder must have an office situated within the State, however said auctions may take place at any location within the State subject to the rules and regulations of the Commissioner which shall have the force of law. A nonprofit organization does not need to maintain an office within the State. (c) No more than 12 wine auctions may be conducted within a calendar year and no more than 12 spirits auctions may be conducted within a calendar year, with a maximum of 3 days per auction event. Auctions may be conducted in person or online; both formats count towards the total auctions permitted in a calendar year. (d) The wine auction or spirits auction license holder shall have the responsibility for collecting and remitting the applicable excise taxes and gross receipt taxes due for all products auctioned. Provided further, that any products purchased at auction shall not be stocked as inventory or made available for further retail sale in any facility or store licensed under this title.

Del. Code tit. 4, § 512E Craft distillery.

(a) Upon proper application and subject to the applicable provisions, restrictions and prohibitions of this title, the Commissioner may grant a license to any person who is the owner or lessee of a craft distillery to manufacture and sell spirits. (b) For purposes of this section, “craft distillery” shall mean a single establishment in which spirits are manufactured and which is operated by the licensee in accordance with this section. (c) Notwithstanding any provision of this title to the contrary, a craft distillery license allows the licensee to do all of the following: (1) Manufacture, on the licensed premises, and sell not more than 750,000 proof gallons of distilled spirits in a calendar year. (2) Manufacture spirits, on the licensed premises, for persons other than the licensee who are licensed under this title or for persons outside this State. (3) Sell, deliver, and ship such spirits in labeled barrels, bottles, or other closed containers to persons licensed under this title to import spirits; and sell and ship spirits to persons outside of this State in accordance with this title. (4) Store and sell spirits on the premises by the bottle or by the glass for consumption on or off the premises where sold; and to purchase alcoholic beverages from licensed Delaware importers or package stores to add to product manufactured by the craft distillery to sell to patrons for on-premises consumption only. The amount of spirits sold for off-premises consumption must be limited to a maximum of 1 case (12 750-milliliter bottles) per day to each retail customer for consumption off the premises. (5) Purchase and store product from a Delaware licensed importer or package store licensed under § 516 of this title, and sell the product to its retail customers for consumption on the premises where sold, so long as the product is manufactured by an entity that holds a Delaware license under § 512A, § 512B, § 512C, or § 512E of this title or the manufacturer, as determined by the Commissioner, would qualify for a license under 1 or more of these sections if the manufacturer were physically located in this State. (6) Sell, on the licensed premises, food items, souvenirs, spirit-related supplies, and educational material as approved by the Commissioner. (d) It shall be unlawful for a person to operate a craft distillery if: (1) The license is denied, canceled, suspended or revoked for any of the grounds contained in § 543 or § 561 of this title; (2) The establishment is moved to a location other than the licensed premises; or (3) It is owned, operated or affiliated with any importer of alcoholic liquor, either in or without this State; except that the holder of a craft distillery license may have an interest in, be affiliated with, operate, or own in common ownership a microbrewery, farm winery, and/or brewery-pub licensed under this chapter and actually located within this State. (e) A craft distillery licensee shall be exempt from the distance requirements for establishments licensed or to be licensed as contained in § 543(d) of this title, and such requirements shall not affect the granting of a craft distillery license. (f) All spirits sold by a craft distillery licensee for off-premise consumption shall be in containers which are securely sealed and have attached thereto a label setting forth such information as required by this title, Commissioner rules and laws of the State. (g) Any craft distillery licensed by the Commissioner to manufacture spirits in this State may provide tastings of the spirits at said premises pursuant to a spirits tasting license granted by the Commissioner pursuant to § 525 of this title. (h) The provisions of § 546 of this title to the contrary notwithstanding, the sale for off-premises consumption at up to a combined total of 3 licenses licensed under this section, § 512A, § 512B, or § 512C of this title all owned or controlled by the same person shall be permitted. (i) A craft distillery licensee shall be authorized to purchase and receive shipments of unfinished neutral grain spirit in bulk form from suppliers and importers located within and without the State that are licensed in accordance with this title. (j) A craft distillery licensee shall be authorized to export unfinished spirit manufactured in this State in bulk to persons within or outside the State for blending, aging, finishing, bottling or labeling and shall be authorized to receive the finished product from that person. (k) A craft distillery shall be exempt from the prohibition of sales on Sundays as proscribed in § 709 of this title, but any sales on Sundays shall be limited to the hours during which the holders of licenses for the sale of spirits in a store may sell on Sundays pursuant to § 709 of this title. A craft distillery shall remain closed on Thanksgiving, Christmas and Easter. ( l ) The Commissioner may promulgate such rules and regulations with respect to the enforcement or furtherance of the objectives and provisions of this section as the Commissioner may deem necessary, and all such rules and regulations that are not inconsistent with the provisions of this title shall have the force and effect of law. (m) The provisions of § 506 of this title to the contrary notwithstanding, the holder of a craft distillery license may have an interest in, be affiliated with, or own another supplier or manufacturer, whether located inside or outside this State.

Del. Code tit. 4, § 512F Temporary large events.

Any person licensed under § 512 of this title hosting a temporary large event may share the profits from the event, including the profits from alcohol sales, with the temporary large event promoter, and such sharing of profits shall not be in violation of this title, including § 561 of this title or any regulations promulgated by the Commissioner, provided that: (1) The licensee shall be responsible for the purchase and resale or dispensing of all alcohol at the temporary large event as provided in and in compliance with this title and may not allow the temporary large event promoter to participate in such purchasing, reselling or dispensing; and (2) The temporary large event promoter shall, prior to the temporary large event, obtain a temporary large event license from the Commissioner. Application for a temporary large event license shall be on a form prescribed by the Commissioner, made under oath or affirmation and signed before 2 witnesses, containing a statement to the effect that the temporary large event promoter: a. Will comply with this title and the regulations promulgated hereunder; b. Agrees to submit to the jurisdiction of the Commissioner and the courts of the State; c. Is not a manufacturer, supplier or importer; d. Has not been convicted of violating the liquor laws of this State or been convicted and imprisoned for a crime; and e. Such other matters as the Commissioner may prescribe by rule or regulation. The Commissioner may promulgate such rules and regulations with respect to the enforcement or furtherance of the objectives and provisions of this section as it may deem necessary, and all such rules and regulations that are not inconsistent with the provisions of this title shall have the force and effect of law.

Del. Code tit. 4, § 512G Shipment of alcoholic beverages between commonly-owned entities.

(a) Any entity licensed in this State pursuant to § 512A, § 512B, § 512C or § 512E of this title, or any out-of-state supplier licensed pursuant to § 501 of this title who, as determined by the Commissioner, would meet the requirements of § 512A, § 512B, § 512C or § 512E of this title if it were located in this State, is permitted to sell or ship alcoholic beverages they manufacture to an entity licensed in this State pursuant to § 512A, § 512B, § 512C or § 512E of this title subject to all of the following conditions: (1) The shipping and receiving licensees must be under common ownership and control, the licensees’ domestic sales of beer must be less than 6 million barrels in a calendar year, and must both apply for and receive a permit pursuant to this section. (2) A licensee must apply for a permit with the Commissioner setting forth the nature of its license, naming the licensees or out-of-state suppliers that it desires to ship to directly or receive alcoholic beverages from directly, and such other information as the Commissioner may require. (3) The Commissioner shall determine if a licensee meets the requirements of § 512A, § 512B, § 512C or § 512E of this title and is otherwise qualified for a permit pursuant to this section. (4) If the Commissioner determines the licensee is eligible, the Commissioner shall issue a permit to the licensee. (5) A permit holder under this section shall be permitted to sell product properly received under the terms of its permit as though it were manufactured at its premises, in accordance with the terms and conditions of its license, so long as it is permitted to manufacture that type of alcohol. (6) If a licensee’s total domestic sales of beer for all affiliated suppliers or manufacturers is between 2 million and 6 million barrels of beer in a calendar year, transfers authorized by this section from licensees pursuant to § 501 and § 512C of this title to commonly owned licensees pursuant to § 512B of this title for the purpose of sales to consumers for consumption on the brewery-pub premises may be made only if the brands transferred for on-premise consumption are produced under the same trade name approved by the Commissioner for the licensee pursuant to § 512B of this title. Licensees pursuant to § 512B of this title may sell product to consumers produced by affiliated licensees under different trade names for consumption on the brewery premises if such product is purchased from a licensee pursuant to § 522 of this title. (7) For purposes of this section, “trade name” means a trade name approved by the Commissioner that is consistent with the definition in § 3302 of Title 6 or a successor statute. (b) As used in this section, “common ownership and control” means that the shipping and receiving licensees applying for a permit under this section manufacture and sell the same brands of alcoholic liquor that each such licensee desires to ship to directly or receive from directly the other, share at least a majority of the same directors, officers, members, or other fiduciaries, and are owned 51 percent or more by 1 person. It shall be permitted for the interest of 51 percent or more in the shipping licensee and the interest of 51 percent or more in the receiving licensee to be held by more than 1 person, but only if 1 of the following is satisfied: (1) One person is an individual and the other person(s) is 1 or more trusts, the beneficiaries of which include such individual, such individual’s spouse, or such individual’s lineal descendants; or (2) Each person is 1 or more trusts established by the same settlor for the benefit of the settlor, the settlor’s spouse, or the settlor’s lineal descendants, and are managed by the same fiduciaries; or (3) Such interests are held by the same individuals. (c) For the purposes of this section, “person” shall be defined as set forth in § 1-201(b)(27) of Title 6.

Del. Code tit. 4, § 512H Special event license [For application of this section, see 85 Del. Laws, c. 269, § 23].

(a) (1) Subject to the provisions, restrictions, and prohibitions of this title, the Commissioner may grant a special event license to a qualified applicant, upon the applicant paying the application process fee set forth in § 554 of this title and submitting all documentation required by the Commissioner. Subject to rules and regulations established by the Commissioner, a special event license permits a licensee to sell and serve alcoholic liquors on the licensed premises at each special event the licensee hosts on the licensed premises for consumption on the licensed premises. (2) A qualified applicant may not be granted more than 1 special event license. (b) (1) The licensee may have an office outside this State, but the licensed premises where the special event will take place and where alcoholic liquors will be sold, served, dispensed, or consumed must be located in this State. (2) In addition to the requirements of paragraph (b)(1) of this section, the licensed premises must meet all of the following requirements: a. The licensed premises must be owned or leased by the licensee. b. The licensed premises must not be more than 3 acres in size. c. The licensed premises must be sufficiently designated, enclosed, secured, and maintained. d. The licensed premises must contain fencing or a wall not less than 30 inches high that, at a minimum, encloses the area where alcoholic beverages will be sold, served, dispensed, and consumed. e. The licensed premises must be maintained in compliance with all applicable zoning, health, and fire safety requirements. (3) If a licensee fails to comply with paragraph (b)(2) of this section, the licensee’s special event license is suspended, under § 561 of this title, until the licensee complies with paragraph (b)(2) of this section. (c) At least 30 days before the date of a special event, a licensee must report the special event to the Commissioner for the Commissioner’s review and approval. For each special event, all of the following conditions apply: (1) Sufficient restrooms or enclosed portable toilets must be provided within the licensed premises during the special event. (2) a. Sufficient food must be available to consumers for consumption on the licensed premises during all hours that the licensee is selling and serving alcoholic liquors. Items like bags of chips and pretzels are insufficient. b. The food may be prepared on the licensed premises, provided by a food truck or a caterer, or consist of prepackaged items, such as sandwiches, burgers, and hot dogs of sufficient quantity in relation to the alcoholic liquors being sold and served. (3) Tents, mobile units, and other temporary fixtures located on the licensed premises must be approved by the appropriate political subdivision and reported to the Commissioner at least 20 days before the special event. (4) The appropriate political subdivision responsible for regulating the licensed premises must have provided written approval for the special event. (d) A licensee must purchase all alcoholic liquors sold and served at a special event from importers licensed under § 501 of this title. Notwithstanding any provision of this title to the contrary, an importer may buy back any unopened and resalable bottles of alcoholic liquors at the end of a special event. An importer shall keep all records, as required by the Commissioner, necessary to document the purchase of products under this subsection. (e) (1) Notwithstanding any provisions of this title to the contrary, whenever the Commissioner finds that a licensee fails to meet any of the requirements of this section or that the licensee misrepresented information in its application, the Commissioner may do 1 or more of the following: a. Suspend the licensee’s special event license. b. Deny any future applications for a special event license for a period of up to 2 years after the Commissioner finds that a failure or misrepresentation has occurred. c. Impose a fine of up to $10,000 per violation. (2) Before any new special event license may be issued, all penalties imposed by the Commissioner under this subsection must be resolved. (f) Licensees are subject to the restrictions on the hours of sale of alcoholic liquors set forth in § 709(c) of this title, to the prohibitions of overservice, and the prohibition of sales to minors set forth in § 708 of this title. (g) A licensee is permitted to enter into a concessionaire agreement, but a concessionaire agreement may not permit the sharing of proceeds from alcohol sales.

Del. Code tit. 4, § 513 Sale of beer and wine for consumption on premises of tavern.

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

Del. Code tit. 4, § 514 Gathering licenses; consumption on premises.

(a) If alcoholic liquors are to be sold during a gathering of persons, the manager or person in charge of the gathering of persons, or the owner, tenant, or person in charge of the premises in which the gathering of persons is being held, must obtain 1 of the types of gathering licenses provided for in this section. Both types of gathering licenses permit consumption of alcoholic liquors on the premises where sold and permit sale of alcoholic liquors for consumption off the premises where sold by way of a raffle or auction, live or silent, so long as the amount of alcoholic liquors sold for consumption off of the premises where sold does not exceed 10 gallons (or 38 liters) in a single day. (b) The 2 types of gathering licenses that may be granted under this section are as follows: (1) Gathering License — Group. — The manager or person in charge of a gathering of persons at which alcoholic liquors are to be sold shall apply for a group type gathering license that, if granted, is valid only for the time and at the location specified in the license application. A group gathering license is not required if the gathering of persons is being held on premises that are validly licensed under a biennial premises gathering license issued under paragraph (b)(2) of this section. (2) Gathering License — Biennial Premises. — The owner, tenant, or person in charge of the premises, other than a residence, on which gatherings of persons are held, may apply for a biennial premises type gathering license that is valid for the entire 2 years for gatherings of persons at the location specified in the license application. (c) A holder of a gathering license may purchase alcoholic liquors for sale at a gathering of persons from either package stores, or importers and the package stores, and importers may make deliveries to persons holding a gathering license. A holder of a gathering license granted under this section is exempt from paying the application process fee as provided in § 554(x) of this title. (d) For purposes of this section only, the price paid for alcoholic liquors to be sold at a gathering of persons licensed under this section must be a price agreed upon between the licensee and the package store, in-state manufacturer, or importer from whom the alcoholic liquors are purchased. A package store, in-state manufacturer, or importer may donate some or all of the alcoholic liquor to the gathering licensee so long as a license has been granted for the gathering of persons by the Commissioner prior to the donation. (e) Any person holding a biennial premises gathering license granted under this section must report each gathering of persons to be held on its premises to the Commissioner. The report may be made in person, in writing, or by telephone. The report must be received by the Commissioner not later than noon on the day the gathering of persons is to be held. But if the gathering of persons is to be held on a day the Commissioner’s office is closed, the gathering of persons must be reported on the last day on which the Commissioner is open immediately preceding the gathering of persons. (f) A person holding a gathering license of either type granted under this section who has purchased alcoholic liquors for sale at a gathering of persons may return any unopened bottles to the licensee from whom they were purchased and shall receive the amount paid for each bottle, so long as the bottles are returned within 30 days of the date of the gathering of persons for which the bottles were purchased. A biennial premises type gathering licensee is not required to return bottles it has purchased for sale during the gathering of persons, but may store the bottles in a suitable storage facility for sale at a future gathering of persons to be held on the licensee’s premises. (g) All holders of gathering licenses under this section are subject to the restrictions on the hours of sale of alcoholic liquors set forth in § § 709(c) of this title and to the prohibitions of sales to minors set forth in § § 708 of this title. (h) It is not necessary to obtain a license to dispense alcoholic liquors at a gathering of persons if no alcoholic liquors are to be sold at that gathering of persons. Importers may sell and deliver beer directly to persons for dispensing at a gathering of persons and not for resale. (i) An applicant for a “biennial premises type gathering license,” as defined in § 554 of this title, must give notice of the application as required by § 524 of this title, but an applicant who has previously been granted a license under this section and has no violations is not required to give notice.

Del. Code tit. 4, § 515 Sale to members of club and multiple activity club.

(a) A club or multiple activity club may apply to the Commissioner for a license to purchase spirits, wine, or beer and to sell the spirits, wine, or beer to a member of the club. (b) (1) A bottle club is not a club. (2) [Repealed.]

Del. Code tit. 4, § 515A Licenses for bottle clubs [For application of this section, see 85 Del. Laws, c. 269, § 23].

(a) Except as provided in this section, it is unlawful to operate a bottle club for profit or pecuniary gain. (b) The Commissioner may, upon application, grant a license to the owner, lessor, or person in charge of the premises to operate a bottle club in accordance with this chapter. (c) The Commissioner may grant a bottle club license only to the following: (1) A person doing business in an establishment meeting the standards of a restaurant. The license permits the establishment to operate as a bottle club on every day of the week and on holidays, except between the hours of 2:00 a.m. and 9:00 a.m. during which time alcoholic liquors may not be consumed on the premises of the establishment. (2) A person renting premises to customers for holding weddings or other social gatherings where there is adequate food, as determined by the Commissioner, provided by the customer or a caterer. The license permits the establishment to operate as a bottle club on every day of the week and on holidays, except between the hours of 2:00 a.m. and 9:00 a.m. during which time alcoholic liquors may not be consumed on the premises of the establishment. If a bottle club licensed under this paragraph (c)(2) has a function that utilizes a licensed off-site caterer, all alcohol must be provided by the licensed off-site caterer. (3) A person doing business in a licensed establishment where persons pay a fee to participate in a creative arts experience, including painting, pottery-making, candle-making, and other similar activities, and where sufficient food is provided by the establishment’s owner or by the customer while alcoholic liquors are being consumed. Prepackaged chips, pretzels, and other similar food items are not sufficient food. The license permits the establishment to operate as a bottle club on every day of the week and on holidays, except between the hours of 11:00 p.m. and 9:00 a.m., during which time alcoholic liquors may not be consumed on the premises of the establishment.

Del. Code tit. 4, § 516 Consumption off the premises of a package store, hotel, restaurant, club, or taproom [Effective until Oct. 21, 2026].

(a) (1) a. Any person in charge of a package store whether owner, lessee, or manager, and recognized as such by the Commissioner, may apply to the Commissioner for a license to purchase from an importer and to keep and sell and deliver on the premises only spirits, wine, or beer by the bottle, half bottle, keg, half keg, quarter keg, or sixtel, but not for consumption on the premises where sold, or in any dependency thereof. b. All vessels sold must be delivered to the purchaser and must be removed from the premises where sold with the seals of the vessels unbroken, unless a license is approved by the Commissioner for a growler filler permit. A growler filler permit allows a licensee to purchase beer by the keg or partial keg and fill containers at time of purchase which will then be capped to leave the licensed premises for consumption off the premises. c. For purposes of issuing a new license under this section, all establishments licensed for the sale of alcoholic liquors, but not for consumption on the premises where sold, are considered as being of the same type. But this paragraph (a)(1)c. does not apply to the transfer of ownership or the renewal of an existing license. (2) A person in charge of a package store, whether owner, lessee, or manager, and recognized as such by the Commissioner with a valid license for consumption off premises issued under this section may sell spirits, wine, or beer under paragraph (a)(1) of this section, including sales for curbside service. An entity with a valid off-premises license issued under §§ 512A through 512E of this title may sell alcoholic liquor for curbside service under the entity’s off-premises license. All sales for curbside service must do all of the following: a. Comply with Chapter 7 of this title, including § 706 of this title, which prohibits sales to intoxicated individuals, and § 708 of this title, which prohibits sales to individuals who have not reached the age of 21 years. b. Be completed and delivered by a person certified as a responsible alcoholic beverage server under § 1205 of this title. (b) Notwithstanding the provisions of subsection (a) of this section, any person, firm, or corporation duly licensed by the government of the United States as a ship’s chandler, may apply to the Commissioner for a license to purchase and to keep, sell, and deliver off the premises, spirits, wine, or beer. The Commissioner may issue the license if the Commissioner is satisfied that all of the following conditions are met: (1) The applicant is a ship’s chandler operating a customs bonded warehouse under a license issued by the United States government. (2) Sales by a ship’s chandler are limited to vessels of the United States or of a foreign country engaged in foreign trade under 19 U.S.C. § 1309. (c) A person in charge of a taproom, restaurant, or club, whether as owner, lessee, manager, or otherwise, may not apply for a license to sell alcoholic liquors for consumption off the premises where sold, and the Commissioner may not issue such a license for use in a taproom, restaurant, or club, except as follows: (1) A person issued a license that authorizes the person to sell alcoholic liquors in a taproom for consumption off the premises prior to July 6, 1983, may retain the license, unless revoked by the Commissioner under this title. (2) A person issued a license that authorizes the person to sell alcoholic liquors in a restaurant or club for consumption off the premises before May 21, 2026, may retain the licenses, unless revoked by the Commissioner under this title. (3) A person issued a license that authorizes the person to sell alcoholic liquors in a taproom for consumption off the premises prior to July 6, 1983, and person issued a license that authorizes the person to sell alcoholic liquors in a restaurant or club for consumption off-the-premises before May 21, 2026, may transfer the license with the approval of the Commissioner as provided in § 571 of this title.

Del. Code tit. 4, § 517 Pharmacists.

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

Del. Code tit. 4, § 518 Physicians, dentists, veterinarians and medical institutions.

(a) A physician or dentist may purchase alcoholic liquors for professional purposes without a permit or license. A physician may administer alcoholic beverages to a bona fide patient in cases of actual need when in the judgment of the physician the use of alcoholic beverages is necessary. (b) A veterinarian may purchase alcoholic liquors for professional purposes without a permit or license. A veterinarian may, in the course of the veterinarian’s practice, administer or cause to be administered alcoholic beverages to any animal under treatment. (c) A person in charge of an institution regularly conducted as a hospital or sanitarium for the care of persons in ill health, or as a home devoted exclusively to the care of aged people, may purchase alcoholic beverages for professional purposes without the requirement of a permit or license. Such person may, after obtaining proper permission, administer alcoholic beverages to any bona fide patient of a medical institution who is in need of the same, either by way of external application or otherwise for emergency medical purposes.

Del. Code tit. 4, § 519 Hospital; retention and use.

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

Del. Code tit. 4, § 520 Clergymen; wine for sacramental purposes.

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

Del. Code tit. 4, § 521 Temporary license to sell by the glass.

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

Del. Code tit. 4, § 522 Application for license to purchase for resale.

(a) Any person proposing to purchase alcoholic liquor for resale shall make application to the Commissioner for license. (b) Any individual 21 years of age or older may apply for a license permitting the purchase of alcoholic liquors for resale. Any partnership may apply for a license permitting the purchase of alcoholic liquors for resale if such application is approved by a majority of the partners and each of the partners is 21 years of age or older. A corporation may apply for a license permitting the purchase of alcoholic liquors for resale if all the officers and directors of the corporation making the application are 21 years of age or older, and no stockholder under the age of 21 years owns or controls, either directly or through a custodian, more than 25% of the outstanding shares of stock of the applicant corporation, with the further provision that no group of such minor stockholders and/or custodians may own or control in the aggregate, more than 45% of the stock of the applicant corporation. (c) The application shall be made on a blank form furnished by the Commissioner and shall be signed by the applicant before two witnesses. The application shall give the name, age, occupation and residence of the applicant and the kind of license requested. (d) The application furnished by the Commissioner shall contain a statement to the effect that the applicant will comply with this title and the rules of the Delaware Alcoholic Beverage Control Commissioner. (e) The Commissioner shall require that the statement of the applicant and of the witnesses be made under oath or affirmation.

Del. Code tit. 4, § 523 Application by partnership or corporation; liability for fines or costs.

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

Del. Code tit. 4, § 524 Notice of application.

(a) An application for a new license to purchase for resale, for transfer of an existing license, or for a substantive change to a license or licensed premise shall be filed with the Commissioner’s office. (b) Upon filing of an application for a new license to purchase for resale or for a substantive change to a license or licensed premise the applicant shall cause notice to be advertised in at least 2 different newspapers circulated in the community in which the applicant will operate if the application is approved for 3 issues. One of the newspapers must be a “local newspaper,” as determined by the Commissioner either through rules or on a case by case basis. If the newspaper is a daily newspaper, the first publication shall be made within 3 days of the filing of the application and the third publishing shall occur within 10 days of filing the application. If the newspaper is a weekly publication, the first publication shall be made within 8 days of filing the application and the third publishing shall occur within 22 days of filing the application. (c) Within 3 days of filing of an application for a new license to purchase for resale or for a substantive change to a license or licensed premise a notice shall be mailed by certified mail or first class mail as evidenced by a certificate of mailing postage-pre-paid to the following entities, individuals or groups of individuals: (1) Except as provided in paragraph (c)(2) of this section, all property owners within 200 feet from any point on the property boundary line of the premises to which the license is to apply; (2) All property owners within 1,000 feet from any point on the property boundary line of the premises to which the license is to apply if the premises is located within 1 / 4 of a mile of a riverfront, beachfront or other open water, or if the applicant intends to include space for outside dining, outside entertainment or the outside service or consumption of alcoholic beverages; (3) The governing body of any incorporated areas within 1 mile from any point on the property boundary line of the premises to which the license is to apply. (d) The notices referred to in subsections (b) and (c) of this section must provide information as determined by the Commissioner either through duly adopted rules or on a case-by-case basis. The following notice, in addition to the Commissioner-approved notice, satisfies this notice provision: “[Name of applicant] has on [Date of application] applied with the Alcoholic Beverage Control Commissioner ( “Commissioner” ) for [type of license] for a premises located at [Location of the premises, including street and city]. [Applicant may include additional information about the application]. Persons who are against this application should provide written notice of their objections (“protest”) to the Commissioner. For the Commissioner to be required to hold a hearing to consider additional input from persons against the application, the Commissioner must receive 1 or more documents containing at least 10 signatures of residents or property owners located within 1 mile of the premises or in any incorporated areas located within 1 mile of the premises and at least 5 residents or property owners who filed a protest and who reside or own property within 1 mile of the premises where the license is to operate or in any incorporated areas located within 1 mile of the premises where the license is to operate must preregister to provide testimony at the hearing. The protest(s) must be received by the Commissioner’s office on or before [state a date at least 30 days after the application is filed]. The protest(s) can be emailed to the email address provided on the Commissioner’s website or delivered or mailed to the Office of the Alcohol Beverage Control Commissioner, Carvel State Office Building, 820 North French Street, Wilmington, DE 19801. Failure to file such a protest may result in the Commissioner considering the application without further notice, input or hearing. If you have questions regarding this matter please contact the Commissioner’s Office by emailing the email address provided on the Commissioner’s website.” (e) The term “substantive change” referenced in this section shall mean any of the following: (1) Any permanent change that will increase the square footage of the licensed premises; (2) Any temporary change that will last longer than 60 days and result in an increase of the square footage of the licensed premises; (3) Any change that would require a variance of the Commissioner’s rules or suspension thereof and results in: a. Live entertainment on a licensed patio; b. External speakers or amplifiers on a licensed patio; or c. Wet bar on a licensed patio; (4) Any change in the floor plan of a restaurant licensee which would increase the number of bar seats or increase the area utilized for entertainment; or (5) Any additional circumstance that the Commissioner determines is a substantive change. (f)-(h) [Repealed.] (i) Notwithstanding subsection (e) of this section or any other law, rule, or regulation to the contrary, substantive change does not mean any of the following: (1) An expansion of outdoor seating for serving of food and drinks that as of March 31, 2022, was approved by the Commissioner. (2) An expansion of outdoor seating for serving of food and drinks that meets all of the following requirements: a. A plan approved by the appropriate political subdivision that does all of the following: 1. Considers local traffic patterns and parking capacity needs, but may extend the boundaries of seating beyond current property boundaries under the discretion of the appropriate political subdivision and applicable property owners on all local right of ways. 2. Does not intrude upon the State’s right of way, unless approved by the Delaware Department of Transportation in writing. 3. Maintains current access, unless approved by Delaware Department of Transportation in writing. 4. Maintains proper access to the property for all emergency services. 5. Complies with the Americans Disabilities Act [42 U.S.C. § 12101 et seq.]. 6. Adheres to all local noise ordinances. 7. Allows for the proper control over the distribution of alcoholic beverages. b. Approval by the Commissioner regarding the service of alcohol on premises. c. Complies with the Delaware Food Code. (j) Any plan approved by or submitted to the appropriate political subdivision and the Commissioner pursuant to subsection (i) of this section may allow for the service of alcoholic beverages without the requirement to serve food. (k) Any plan submitted to the appropriate political subdivision and the Commissioner pursuant to subsection (i) of this section that meets all of the requirements of paragraph (i)(2) of this section should not be denied approval absent exceptional circumstances. ( l ) Any political subdivision that revokes or modifies its approval for an expansion of outdoor seating for serving of food and drinks under subsection (i) of this section must notify the Commissioner within 30 days of such revocation or modification.

Del. Code tit. 4, § 525 Spirits, wine, and beer tasting [Effective until Oct. 21, 2026].

A license to permit spirits, wine, and beer tasting may be granted by the Commissioner to any person holding a license as a package store under § 516 of this title. Spirits, wine, and beer tasting may take place only in a separate portion of a licensee’s premises where alcoholic beverages are not sold. The separate portion of the premises must be an area designated for spirits, wine, and beer tasting by the Commissioner. There may not be a charge made for the spirits, wine, and beer tasting.

Del. Code tit. 4, § 526 Direct shipping of wine [Effective until Aug. 15, 2030].

(a) Notwithstanding § 501 of this title, upon proper application and subject to the applicable provisions, restrictions and prohibitions of this title, the Commissioner may grant a wine direct shipper license to any person who is a farm winery as defined by § 512A of this title or a manufacturer, as determined by the Commissioner, that would qualify for a license under § 512A of this title if the manufacturer were physically located in this State. (b) A person who is licensed as a wine direct shipper under this section may ship up to 3 9-liter cases of wine annually to a household located in this State if a member of the household is at least 21 years of age and the wine is for the household’s personal use and not for resale. (c) An application for a wine direct shipper license must contain all of the following: (1) The application materials required by the Commissioner. (2) A true copy of the applicant’s state-issued alcohol license and Federal Basic Permit. (d) A wine direct shipper licensee may not: (1) Ship wine to any person who is under the age of 21. In any prosecution for an offense under this subsection, it is an affirmative defense if the individual, who has not reached the age of 21 years, presented to the accused identification, with a photograph of such individual affixed thereon, which identification sets forth information which would lead a reasonable person to believe such individual was 21 years of age or older. (2) Ship more than 3 9-liter cases of wine annually to any household for the household’s personal use. (3) Ship any wine for resale. (4) Ship more than 1,800 9-liter cases into this State per year under this section. A direct shipper licensee that ships into Delaware 1,800 9-liter cases in 1 year will have its direct shipper license cancelled by the Commissioner and must apply for a supplier license pursuant to § 501 of this title. (5) Ship wine if they are currently represented in this State by a licensed importer/wholesaler. This shall include wineries that are a subsidiary of a larger wine manufacturer or a supplier licensed pursuant to § 501 of this title that is listed in a licensed importer/wholesaler’s current price publication designated by the Commissioner. All licensed importers/wholesalers shall provide in the manner and timing as required by the Commissioner, monthly price lists that include the manufacturers, names of the products, and any identifying SKU numbers. The Commissioner will remove proprietary price information before posting the importer/wholesaler’s monthly lists on the Office of the Alcoholic Beverage Control Commissioner’s publicly-available webpage. (e) A wine direct shipper licensee must: (1) Deliver wine for shipment into this State only to a common carrier who has a common carrier license issued by the Commissioner as provided in § 527 of this title. (2) Ensure that all containers of wine shipped directly to a resident of this State are conspicuously labeled with the words “CONTAINS ALCOHOL: SIGNATURE OF INDIVIDUAL AGE 21 OR OLDER REQUIRED FOR DELIVERY”. Upon delivery, the carrier delivery person shall be required to scan, and retain as proof of age verification, the required state-issued driver’s license or state-issued identification card. (3) a. If located outside of this State: 1. Report the following to the Commissioner and the Division of Alcohol and Tobacco Enforcement ( “DATE” ) monthly, or more frequently as required by rules promulgated by the Commissioner that are based upon quantity of product shipped: A. The total amount of wine shipped into this State in the preceding quarter. B. The name and address of the individuals to whom the wine was sold and the amount of wine sold in each sale. C. The tracking number for each shipment. D. The name and license number of the common carrier to whom the order was sent for delivery. 2. Pay to the Division of Revenue monthly, or as otherwise required by regulations promulgated by the Commissioner, all excise taxes due on sales to residents of this State at the rate set forth in § 581(d) of this title. The amount of such taxes must be calculated as if the sale were in this State at the location where delivery is made. b. The information reported under paragraph (e)(3)a.1. of this section is exempt from the requirements of Chapter 100 of Title 29. (4) a. If located within this State, pay to the Division of Revenue monthly, or as otherwise required by regulations promulgated by the Commissioner, all excise taxes due on sales to residents of this State as required by § 581(b) of this title and provide the Division of Revenue, DATE, and the Commissioner any additional information deemed necessary beyond that already required for retail sales from a farm winery to ensure compliance with this section including the following: 1. The total amount of wine shipped under this section in the preceding quarter. 2. The name and address of the individuals to whom the wine was sold and the amount of wine sold in each sale. 3. The tracking number for each shipment. 4. The name and license number of the common carrier to whom the order was sent for delivery. b. The information reported under paragraph (e)(4)a. of this section is exempt from the requirements of Chapter 100 of Title 29. (5) Permit DATE, the Commissioner, or the Division of Revenue to perform an audit of the wine direct shipper licensee’s records upon request. (f) A wine direct shipper licensee is deemed to have consented to the jurisdiction of the Commissioner or any other state agency and the courts of this State concerning enforcement of this section and any related laws, rules, or regulations. (g) The Commissioner and the Division of Revenue may establish rules and regulations necessary for the implementation of this section.

Del. Code tit. 4, § 527 Common carrier license [Expires Aug. 15, 2030, pursuant to 85 Del. Laws, c. 139, § 7].

(a) For the purposes of this title, “common carrier” means a business entity that: (1) Holds itself out as being available to the public to transport in interstate or foreign commerce for compensation any class of passenger or property; and (2) Holds a common carrier permit issued under this section. (3) “Common carrier” does not include a business entity that transports only property the business entity owns or that is consigned to the business entity. (b) Upon proper application and subject to the applicable provisions, restrictions and prohibits of this title, the Commissioner may grant a common carrier license to approved persons. Upon approval, the person shall pay the license as set forth in § 554 of this title. (c) A common carrier permit licensee shall do all the following: (1) Provide the Commissioner, the Division of Alcohol and Tobacco Enforcement, and the Division of Revenue a monthly report containing the following: a. The names and addresses of the consignor of the shipment. b. The name and address of the consignee of the shipment. c. The tracking number for each shipment made under this section. d. The information reported under this paragraph (c)(1) is exempt from the requirements of Chapter 100 of Title 29. (2) Deliver wine only on behalf of a wine direct shipper licensed by the Commissioner. The employee or independent contractor of the licensed common carrier shall deliver the wine to the address provided by the wine direct shipper licensee Upon delivery, the carrier delivery person shall be required to scan, and retain as proof of age verification, the required state-issued driver’s license or state-issued identification card. a. In any proceeding for an offense under this subsection, it is an affirmative defense if the individual, who has not reached the age of 21 years, presented to the accused identification, with a photograph of such individual affixed thereon, which identification sets forth information which would lead a reasonable person to believe such individual was 21 years of age or older. b. To ensure effective age verification for deliveries, a common carrier licensee shall provide its employees and independent contractors with age verification training approved by the Commissioner. (d) At least once a year, in a manner acceptable to the Commissioner, a holder of a common carrier license shall verify that the shipper of wine into this State holds a valid direct wine shipper’s license issued by the Commissioner. (e) A common carrier licensee is deemed to have consented to the jurisdiction of the Commissioner or any other state agency and the courts of this State concerning enforcement of this section and any related laws, rules, or regulations. (f) The Commissioner shall provide the common carrier licensee charged with violating any provision of this section with a hearing. The Commissioner may suspend or cancel a common carrier license if the common carrier license if the common carrier licensee is found to have committed 3 or more violations. The Commissioner may impose a suspension or monetary fine against a common carrier licensee but may not impose a fine under this section greater than $5,000. Failure to pay such fine and costs may result in an automatic license suspension until such fines and costs are paid.

Del. Code tit. 4, § 541 Procedural requirements governing Commissioner’s action; hearing; appeal.

(a) The Commissioner shall distribute and receive all of the applications for licensure under this chapter, and shall refer the application to the Division for investigation, and if it appears that any application should not be granted, the Commissioner shall so notify the applicant stating the cause for denial. (b) (1) A hearing must be held to consider the application and protest and, specifically, the concerns of the members of the community within which the license is to operate if all of the following conditions are met: a. Ten or more persons who reside or own property within 1 mile of the premises where the license is to operate or in any incorporated areas located within 1 mile of the premises where the license is to operate file a protest against the issuance of the license with the Commissioner within 30 days from the filing of the application. b. Five or more of the persons who filed a protest under paragraph (b)(1)a. of this section and who reside or own property within 1 mile of the premises where the license is to operate or in any incorporated areas located within 1 mile of the premises where the license is to operate preregister to provide testimony. (2) The Commissioner may hold a hearing in the absence of a protest. (3) The Commissioner shall cause notice of the time and location of the hearing to be posted on the State Public Meeting Calendar. The Commissioner shall send notice of the time and location of the hearing to the applicant and to each of the persons who signed the protest and provided a legible name and address. It is sufficient for the Commissioner to send notice to the attorney of a person who is represented by legal counsel. (4) The Commissioner shall conduct the hearing and shall make and keep a record of the hearing. The record must include the evidence, the Commissioner’s findings of fact, the Commissioner’s decision, and a brief statement of the reasons therefor. The Commissioner’s decision must show the manner in which the Commissioner construed the law and applied it to the facts, must recite any objections presented by the community, and must show how and the extent to which the Commissioner took community concerns into account and gave them due consideration when making the decision. (c) The Commissioner’s decision must be in writing and is conclusive unless, within 30 days from the date of the postmark on the Commissioner’s decision, a party to the hearing files a written appeal in the office of the Commissioner. Upon receipt of the appeal, the Commissioner shall cause the Chairperson of the Appeals Commission to be advised of the pending appeal. The Chairperson shall cause the Appeals Commission to be convened with at least 20 days’ notice to all parties. The Appeals Commission’s review of an appeal from the Commissioner’s final decision must be on the record and in accordance with the Administrative Procedures Act, subchapter III of Chapter 101 of Title 29. A decision of the Commissioner may be reversed only upon a finding of abuse of discretion. (d) A party who is aggrieved by a final decision of the Appeals Commission may file a written appeal with the Superior Court within 30 days of the date that the Appeals Commission’s decision was mailed. The Superior Court’s review of an appeal must be on the record and in accordance with the Administrative Procedures Act, subchapter V of Chapter 101 of Title 29. The Superior Court’s review must take into account the experience and specialized competence of the agency and the purpose under which the agency acted. In the absence of fraud, the Superior Court’s review is limited to whether the agency’s decision is supported by substantial evidence on the record and is free from legal error.

Del. Code tit. 4, § 542 Decision upon application for renewal of license; time of making.

On or before the first day of the month preceding the biennial expiration date of a license, the Commissioner shall render its decision upon every application properly and completely made to it on or before the first day of the third month preceding the biennial expiration date of a license.

Del. Code tit. 4, § 543 Grounds for refusal of license; transfer or extension of premises.

(a) The Commissioner shall refuse to grant a license to be used in any county or subdivision thereof, if contrary to any prohibitory law then in force, in such county or subdivision thereof. (b) The Commissioner may refuse to license an applicant if the Commissioner has substantial evidence that would reasonably support a belief that: (1) Except for restaurants, there are sufficient licensed premises in the locality; or the granting of a license in the locality stated in the application is not otherwise demanded by public interest or convenience; (2) The applicant is an importer of alcoholic liquors and has not furnished an acceptable bond for the purpose of assuring tax payments; (3) The applicant appears to be financially irresponsible; (4) The applicant has been provided with funds by, or has any forbidden connection with, a manufacturer, supplier or importer of alcoholic liquors; (5) The applicant has made false statements to the Commissioner; (6) The applicant has been convicted of violating any of the liquor laws of this State, or has been convicted and imprisoned for a crime; (7) The applicant or any of the applicant’s directors or officers, or any of the applicant’s shareholders who hold more than 10% of the outstanding issued shares has been convicted of violating any of the prohibited acts defined in Chapter 47 of Title 16, the Uniform Controlled Substances Act, or its functional equivalent under the laws of the United States, any state or territory or any other country, including, but not limited to, the illegal manufacture, delivery, trafficking, possession or consumption of any controlled or noncontrolled substance, or the delivery or possession of illegal drug paraphernalia or illegal hypodermic syringes or needles, or the conspiracy, solicitation or other attempt to engage in such illegal activities; (8) As to a restaurant applicant, the applicant has failed to designate a substantial portion of the premises’ floor space, as determined by the Commissioner, to be used for the storage, preparation, service and consumption of complete meals; (9) As to a restaurant applicant, the applicant’s projected or actual receipts from the sale of complete meals fails to represent a substantial portion of the establishment’s total gross receipts as determined by the Commissioner, provided that gross receipts received as payments from the State Lottery Office shall not be included by the Commissioner in the Commissioner’s determination; (10) As to a restaurant applicant, the applicant’s proposed premises or any proposed extension of the premises of an existing licensed restaurant is protested in accordance with the provisions contained in § 541(b) of this title or any applicable Commissioner rule, and the Commissioner finds that substantial evidence exists to conclude that the establishment’s primary purpose will be the serving of alcoholic liquor to patrons. In reaching its decision, the Commissioner shall consider factors including, but not limited to, the number and sizes of bars in the establishment, the establishment’s floor plan, an approximate percentage of the projected revenue to be derived from the sale of alcoholic liquor as compared to the percentage of revenue to be derived from the sale of complete meals, the establishment’s seating capacity, storage and preparation area for food service, and the number of service employees employed, or to be employed, in the establishment and their functions. (11) A substantial objection to the granting of the license has been presented by the community within which the license is to operate, or that the granting of such license is otherwise not in the public interest. For the purposes of this subsection, the term “substantial objection” shall include: a. Any objection, or group of objections, presented to the Commissioner either individually or as a group, by persons who reside within the election district where the license is to operate and all contiguous election districts, sufficient to give the Commissioner reason to believe that a majority of the residents of the community within which the license is to operate oppose the issuance of the license; or b. Any objection, or group of objections, presented to the Commissioner either individually or as a group, the content of which gives the Commissioner reason to believe the quality of life of the community within which the license is to operate will be adversely affected by the granting of the license. (c) The Commissioner may refuse to grant a license to sell alcoholic liquor to any new establishment to be located in the vicinity of a church, school or college. The Commissioner may issue a license to any establishment located in the vicinity of a church, school or college when such establishment has been located in a place prior to the time any church, school or college may thereafter be located in the vicinity of such establishment. (d) The Commissioner shall refuse to grant a license for the sale of alcoholic liquor by any store, or establishment for consumption off the premises, when there is an existing licensed establishment of similar type within a ½ mile by accessible public road or street in any incorporated city or town, or within 3 miles by accessible public road or street in any unincorporated or rural area measured in driving distance both ways between the existing and proposed establishments. This subsection does not apply to any of the following: (1) An existing license or to the sale, transfer of ownership, or renewal of an existing license. (2) A club licensed to sell off the premises where sold, farm winery, brewery-pub, microbrewery, or craft distillery. (3) A licensee who desires to move the location of the license to a location within 500 feet thereof by accessible public road or street. However, a licensee located in a shopping center or shopping mall may move the location of the license any distance within the same shopping center or shopping mall, whether such center or mall consist of 1 or more than 1 separate buildings. (4) [Repealed.] (e) The Commissioner may grant a new license to a licensee who desires to move the location of the license due to the destruction of the building, loss of lease, diversion of highway traffic pattern, or similar reason beyond the control of the licensee, if the application meets all of the following: (1) The requirements under subsection (d) of this section and all other requirements under this title. (2) The location to which the licensee proposes to move meets either of the following: a. If in an incorporated city or town, is within 500 feet of the existing location of the licensee. b. If in an unincorporated or rural area, is within a ½ mile by accessible public road or street of the existing location of the licensee. (f) (1) The Commissioner shall refuse to grant a license to sell alcoholic liquor to any restaurant or eating place located on or a part of the Delaware Turnpike. (2) The Commissioner shall refuse to grant a license to sell alcoholic liquor to any new store located in an unincorporated area on or along any state highway listed in § 701(d) of Title 21 within 1½ miles of a Department of Motor Vehicles’ facility on or along the same state highway. (g) [Repealed.] (h) Any existing restaurant which was licensed by the State to permit the sale of alcoholic beverages and which was in compliance with applicable state, county or municipal laws and regulations as of June 14, 1991 shall be permitted to continue to operate in the same manner as it was operating on said date so long as said license is in effect, notwithstanding any ordinance or other restriction subsequently enacted by a municipal corporation. (i) The Commissioner shall refuse to grant a license for the sale of alcoholic liquor by any beer garden, taproom, or tavern establishment when there is an existing licensed establishment of any of these types within 1200 feet by accessible public road or street in any incorporated city or town, or within 9 / 10 of a mile by accessible public road or street in any unincorporated or rural area measured in driving distance both ways between the existing and proposed establishments. This subsection does not apply to any of the following: (1) An existing license or to the sale, transfer of ownership, or renewal of an existing license. (2) A licensee who desires to move the location of the license to a location within 500 feet thereof by accessible public road or street. However, a licensee located in a shopping center or shopping mall may move the location of the license any distance within the same shopping center or shopping mall, whether the center or mall consists of 1 or more separate buildings. (j) The Commissioner shall not grant a new license of any type and shall not grant an extension of premises of an existing license of any type unless the application for said new license or for said extension is accompanied by a Certificate of Compliance from the appropriate political subdivision showing: (1) That the premises where the license is to be used are properly zoned for the applicant’s intended use; and (2) That all necessary permits have been approved; and (3) That the applicant has complied with all other applicable licensing requirements of the appropriate political subdivision. This subsection shall not apply to any application for a temporary extension of premises as authorized by Commissioner rule; provided, that any such application has not been objected to by the appropriate political subdivision which shall be provided with notice of the application by the applicant within 7 days of the date the application is filed with the Commissioner. This subsection shall not apply to any extension of premises of an existing license granted by the Commissioner pursuant to § 524(i) of this title even if the State of Emergency is no longer in effect. (k) (1) A municipality with a population of 50,000 or more may, by ordinance, promulgate rules for the location of any new establishment licensed to sell alcoholic liquor for consumption off of the premises that are more restrictive than those set forth in this section. (2) The Commissioner shall refuse to grant a license for the sale of alcoholic liquor for consumption off of the premises that does not comply with a municipal ordinance promulgated pursuant to paragraph (k)(1) of this section.

Del. Code tit. 4, § 544 Finality of Commissioner’s decision refusing license.

If an application is not timely protested, but the Commissioner determines that the application should nevertheless be denied, the Commissioner shall render the decision promptly in writing. The Commissioner’s decision shall be final and conclusive unless, within 30 days after notice thereof has been mailed by the Commissioner’s office, the applicant files an appeal in the office of the Commissioner. The appeal shall follow the procedure outlined in § 541 of this title.

Del. Code tit. 4, § 545 Improvements to premises.

The Commissioner may not require an applicant to make improvements to the premises before the issuance of a license; however, the Commissioner may issue a license to sell alcoholic liquor upon the condition that certain improvements shall be made to the premises.

Del. Code tit. 4, § 546 Limit on number of package store licenses [Effective until Oct. 21, 2026].

(a) (1) The General Assembly finds that, in order for the Commissioner to maintain effective control of the importation, distribution, and sale of alcoholic liquor into and within this State, and in order to prevent geographical price fixing of alcoholic liquor at the retail level, there must be a limitation placed on the number of package store licenses issued, held, controlled, or acquired directly or indirectly by 1 person. (2) The General Assembly further finds that a limitation on the number of package store licenses held by 1 person is necessary to ensure a stable system for the lawful distribution of alcoholic liquor, serve the public need and convenience, and prevent the public harm associated with a monopoly of the package store alcoholic liquor trade by any person or group of persons, whether the package store licenses are held by a corporation, partnership, association, proprietorship, individual, or other entity. (3) The General Assembly further finds that a reasonable restriction on the number of package store licenses held by 1 person will further this State’s interest in maintaining a 3-tier system for the importation, distribution, and sale of alcoholic liquor by minimizing or limiting absentee ownership and the domination of package stores by suppliers, manufacturers, importers, or other economically powerful interests. (4) Therefore, it is declared to be the public policy of this State that limitations, as specified under this section, be placed on the number of package store licenses that a person may at 1 time hold, directly or indirectly, and that the Commissioner shall actively supervise and enforce these limitations. (b) (1) The Commissioner shall refuse to grant a license for the sale of alcoholic liquor by any restaurant, taproom, hotel, package store, or other establishment for consumption off the premises where sold if the Commissioner has substantial evidence that would reasonably support a belief that the applicant; any of the applicant’s directors, officers, or shareholders; or any of the applicant’s partners, corporations, proprietorships, or other legal entities engaged in any undertaking, industry, or business is singularly, or in combination with the applicant, the holder of 2 or more package store licenses, or has any financial, pecuniary, beneficial, management, supervisory, or other interest whatsoever, direct or indirect, and however small, in 2 or more package store licenses. (2) Nothing in this section requires any person who, prior to April 1, 1992, acquired an interest in more than 2 package store licenses to surrender, dispose of, or release the person’s interest in any such license and nothing in this section affects the person’s right to continue to hold, use, and renew any such license. (c) (1) For the purposes of this section, a person is deemed to acquire a financial, pecuniary, beneficial, management, supervisory, or other interest in a package store license to purchase and resell or dispense alcoholic liquor if the person or person’s spouse or child under 21 years of age has 1 or more of the following: a. Any interest whatsoever, direct or indirect, and however small, as a director, officer, shareholder, partner, associate, employee, or member in any corporation, partnership, association, proprietorship, or other entity engaged in any undertaking, industry, or business that holds a package store license under this chapter. b. Any authority whatsoever to supervise, manage, control, or direct the operation of the licensee’s business; to hire, terminate, or discipline the licensee’s employees; or to issue any orders, policies, or directives concerning the licensee’s business. (2) For the purposes of this section, any person whose relationship with the licensee is, as determined by the Commissioner, merely that of a bona fide lender, lending institution, secured party, or lienholder, or merely that of a bona fide landlord or lessor of real or personal property, is not deemed to acquire a financial, pecuniary, beneficial, management, supervisory, or other interest in the package store license. (d) The Commissioner may promulgate rules and regulations with respect to the enforcement and furtherance of the objectives and provisions of this section as the Commissioner may deem necessary. All rules and regulations that are not inconsistent with provisions of this title and the Code have the force and effect of law.

Del. Code tit. 4, § 551 Issuance of certificate.

If the Commissioner grants the license and payment therefor has been made, a certificate to that effect shall be issued. The certificate shall set forth the name, the kind of license granted, the date of expiration of the license, and if a license to manufacture or to sell or to keep in stock, the place or places in which it is to be manufactured, sold or kept.

Del. Code tit. 4, § 552 Term and expiration date of licenses.

All licenses issued under this title shall be valid for a period of 2 years, unless it is specifically stated in this title or by the Commissioner to be for a shorter period of time, or unless the license shall be cancelled, revoked or suspended by the Commissioner, or unless the license shall be surrendered by the licensee, or unless the license shall expire. The Commissioner shall determine the precise dates of the validity of a license issued under this title. A license issued by the Commissioner, which is not a renewal of a former license, within 3 months of the date the license would have to be renewed under the rules of the Commissioner may be made to terminate by the Commissioner 2 years after the first applicable biennial expiration date.

Del. Code tit. 4, § 553 Rate of payment for license issued for other than 2 years.

A license issued for a time other than 2 years shall be paid for when issued at the rate of one twenty-fourth of the biennial fee for each month of the term.

Del. Code tit. 4, § 554 License fees [Effective until Jan. 23, 2027].

(a) For a license to sell alcoholic liquor in a hotel or restaurant the biennial license fee shall be $1,000. (b) For a license to sell alcoholic liquor on a boat the biennial license fee shall be $1,000. (c) For a license to sell alcoholic liquor in the passenger cars of a railroad the biennial license fee shall be $600 for each railroad. (d) For a license to sell alcoholic liquor in a club, to members of that club, the biennial license fee shall be $300 if the club has an active membership in good standing of less than 400 members; or $600 if the club has an active membership in good standing of 400 or more members. (e) For a license to sell beer and/or wine only in a restaurant the biennial license fee shall be $500. (f) For a license to sell beer only in a tavern the biennial license fee shall be $500. (g) For a license to sell alcoholic liquors in a taproom the biennial license fee shall be $1,000. (h) For a license to sell alcoholic liquor from a hotel, restaurant, taproom, or store, not for consumption on the premises, the biennial license fee shall be $1,000. (i) For a license to sell alcoholic liquors at gatherings of persons, the license fee shall be as follows: (1) For a group-type gathering license, the license fee shall be $5.00 for each such license granted, unless the said license shall be for a period of more than 2 days in which case the license fee shall be $5.00 plus the additional sum of $2.00 for each such additional day or unless the said license shall be for a Sunday, Thanksgiving, Christmas, or Easter, in which case the license fee shall be an additional $5.00 for each such day. (2) Biennial license. — a. For a biennial premises type gathering license for a facility in which not more than 25 gatherings of persons at which alcoholic liquors are to be sold are to be held, the biennial license fee shall be $200. b. For a biennial premises type gathering license for a facility in which more than 25 but not more than 75 such gatherings of persons are to be held, the biennial license fee shall be $400. c. For a biennial premises type gathering license for a facility in which more than 75 such gatherings of persons are to be held, the biennial license fee shall be $1,000. d. For the holder of a biennial premises type gathering license to sell alcoholic liquor on a Sunday, Thanksgiving, Christmas, or Easter, the biennial license fee shall be: 1. An additional $200 for a license issued pursuant to paragraph (i)(2)a. of this section; 2. An additional $300 for a license issued pursuant to paragraph (i)(2)b. of this section; and 3. An additional $400 for a license issued pursuant to paragraph (i)(2)c. of this section. (j) For a license to “manufacture” and to “sell” beer and cider, the biennial license fee shall be based upon annual production and shall be computed as follows: $1,500 for a brewery or microbrewery manufacturing not more than 25,000 barrels of beer and cider per year; $3,000 for a microbrewery or brewery manufacturing more than 25,000 but not more than 50,000 barrels of beer and cider per year; $6,000 for a microbrewery or brewery manufacturing more than 50,000 but not more than 100,000 barrels of beer and cider per year; and $9,000 for a microbrewery or brewery manufacturing more than 100,000 barrels of beer and cider per year. (k) For a license to operate a distillery for distillation or rectification, the biennial license fee shall be based upon annual production and shall be computed as follows: For the first 500 gallons, $100; for the next 5,000 gallons, or fraction thereof, at the rate of 6 cents per gallon; for the next 10,000 gallons, or fraction thereof, at the rate of 4.5 cents per gallon; for the next 50,000 gallons, or fraction thereof, at the rate of 3 cents per gallon; for the next 100,000 gallons, or fraction thereof, at the rate of 1.5 cents per gallon; for each gallon in excess of 165,500 gallons, at the rate of three quarters cent per gallon. ( l ) For a license to bottle beer the biennial license fee shall be $100 for the first 500 barrels or less, and $100 for each additional 500 barrels, or fraction, bottled. (m) For a license to operate a winery or to bottle and sell wine the biennial license fee shall be $1,500. (n) For a license to import or to ship alcoholic liquor, other than beer and wine, into this State and to sell and deliver such alcoholic liquor as provided in this chapter the biennial license fee shall be $7,500; but a sale and delivery of alcoholic liquor to pharmacists, physicians, dentists, veterinarians, wholesale druggists, manufacturing plants where the alcohol is used in scientific work, or for the manufacture of pharmaceutical products shall not be subject to the license fee. (o) For a license to import or to ship beer into this State and to sell and deliver such beer the biennial license fee shall be $3,000; and for a license to import or to ship unlimited amounts of wine into this State and to sell and deliver such wine the biennial license fee shall be $3,000. A license for a limited wine importer, an importer that imports, sells and delivers less than 1000 cases of wine per year, shall be $200. A limited wine importer need not pay the application fee required by subsection (x) of this section. (p) For a license to sell alcoholic liquor as an off-site caterer the biennial license fee shall be $500. (q) For a license to transport a stock of alcoholic liquor from the place where sale or storage of such stock has been authorized to another location, the license fee shall be fixed by the Commissioner. (r) For a license to purchase sacramental wine, no license fee shall be charged. (s) For a temporary license, the license fee shall be not less than ½ nor more than double the amount of the annual license fee for a regular license for the same privilege, in the discretion of the Commissioner. (t) For a license to sell alcoholic liquor at a horse racetrack the biennial license fee shall be $3,000. (u) For a license to sell alcoholic liquor at a motorsports speedway the biennial license fee shall be $3,000. (v) For license to sell alcoholic liquors as a ship’s chandler the biennial license fee shall be $1,000. (w) For a license for a multiple activity club to sell alcoholic beverages to any person who is a member of such club or a guest of a member of such club, the biennial license fee shall be $1,500. (x) Application process fee. — If any application for a license under this title requires any investigation by the staff or a hearing by the Commissioner before the Commissioner reaches a decision on the application, the applicant shall pay an application process fee of $1,000 in addition to any other fees required by this title or the rules of the Commissioner. The application process fee is not refundable regardless of the decision of the Commissioner. This provision for an application process fee does not apply to a gathering of persons under § 514 of this title, a limited suppliers license issued pursuant to § 501 of this title, a license to sell on Sunday, and a tasting permit. This provision for an application process 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. Six hundred dollars of the application process fee shall be retained by the Commissioner and deposited in a special fund for the sole purpose of providing for the implementation, administration and enforcement of the Delaware Responsible Alcoholic Beverage Server Training Program established pursuant to Chapter 12 of this title. (y) For a license to sell alcoholic liquor in a dinner theater the biennial license fee shall be $1,000. (z) For a license to sell alcoholic liquors as a caterer for consumption on the premises where sold the biennial license fee shall be $1,000. (aa) For a license as a “bottle club” authorized by § 515A of this title the biennial license fee shall be $300. (bb) For a license to sell alcoholic liquors in a cabaret the biennial license fee shall be $2,000. (cc) For a license as an air passenger carrier, as defined in § 512(i) of this title, the biennial license fee shall be $1,000. (dd) For a license to conduct wine auctions the biennial license fee shall be $1,500. For a gathering license to conduct a wine auction by a nonprofit organization the fee shall be $50 per event. (ee) For a license to permit spirits, wine and beer tasting the biennial license fee shall be $150. (ff) For a farm winery license the biennial license fee shall be $1,500. (gg) For a brewery-pub license the biennial license fee shall be $2,000. (hh) For a license to sell alcoholic liquors at a multi-purpose sports facility the biennial license fee shall be $3,000. (ii) For a license to sell alcoholic liquors at a bowling alley the biennial license fee shall be $1,000. (jj) For a license as a “direct shipper” as provided in § 526 of this title, the biennial license fee shall be $400, unless the direct shipper licensee ships more than 200 cases annually to residents of this State, in which case the biennial license fee shall be $3,600. (kk) Each of the licensees identified in subsections (a) through (h), (t) through (w), (y), (z), (bb), (cc), (dd), (ff), (gg), (hh), (ii), (mm), (qq), and (rr) of this section, shall pay an additional annual fee of $100. The Commissioner shall deposit the additional annual fees into a special account designated as the “Overservice Investigation Fund.” The Overservice Investigation Fund must be utilized by the Division to pay overtime to its agents, to hire and equip additional agents, or both for the purpose of investigating and prosecuting licensees that serve intoxicated individuals. ( ll ) For a permit to sell alcoholic liquors on a patio, the biennial fee shall be $1,000. If the holder of a patio permit desires a variance to Rule 42.1 [4 DE Admin. Code § 704, formerly Rule 42.1], or a subsequently adopted rule, the biennial variance permit fee shall be $100 per variance. (mm) For a license to sell alcoholic liquor in a concert hall the biennial fee shall be $1,500. (nn) For a license as a “craft distillery” as provided in § 512E of this title the biennial license fee shall be $1,500. (oo) For a “temporary large event” license as provided in § 512F of this title, the fee shall be $500 for each temporary large event and no application process fee as permitted under subsection (x) of this section shall be assessed. (pp) For a growler filler permit as provided in § 516(a) of this title, the biennial license fee shall be $150. (qq) For a license to sell alcoholic liquor in a movie theater the biennial fee shall be $1,500. (rr) For a license to sell alcoholic liquor in a beer garden, the biennial fee shall be $2,000. The holder of a beer garden license is not required to have a patio permit, but if the beer garden license holder desires a variance to Rule 42.1 (4 DE Admin. Code § 704, formerly Rule 42.1), or a subsequently adopted rule, the biennial variance permit fee shall be $100 per variance. (ss) For a license to provide third-party delivery services as provided in § 512 of this title, the biennial fee shall be $1,000. (tt) For a common carrier license to transport wine from a wine direct shipper licensee to a household in this State, the biennial license fee shall be $500. (uu) For a special event license issued under § 512H of this title, the biennial license fee is as follows: (1) $1,000 for a license to hold 12 or fewer special events per calendar year. (2) $ 2,000 for a license to hold more than 12 special events per calendar year.

Del. Code tit. 4, § 561 Grounds for cancellation or suspension.

(a) The Commissioner may cancel every license made use of on behalf of any person other than the one to whom or on behalf of whom it has been issued. (b) The Commissioner may suspend any license and/or fine any licensee for the sale of alcoholic liquors if it has reasonable grounds to believe that the licensee has committed any of the following violations, or may cancel any license for the sale of alcoholic liquors for the following violations, if repeated and continuous: (1) The licensee has violated any provision of this title or any regulation of the Commissioner pursuant hereto; (2) The licensee has made any false representation or statement to the Commissioner in order to induce or prevent action by the Commissioner; (3) The licensee is not maintaining an acceptable bond, if said bond is required; (4) The licensee is acting as an agent of a manufacturer of alcoholic liquor or has borrowed money or accepted gratuities from such a manufacturer or any agent thereof; (5) The licensee maintains a noisy, lewd, disorderly, or unsanitary establishment or has been supplying impure or otherwise deleterious beverages or food; (6) The licensee is in the habit of using dangerous or narcotic drugs, or is in the habit of using alcoholic beverages to excess; (7) The licensee has sold alcoholic liquor in contravention of § 708 of this title; (8) The licensee has in the licensee’s possession on the licensee’s licensed premises or has sold or offered for sale any alcoholic beverages not purchased or sold pursuant to this title; (9) The licensee has misrepresented any alcoholic liquor sold by the licensee as purchased through the Commissioner or has in the licensee’s possession, or has used any wrappers, labels, corks, caps, stamps or bottles not purchased from or through the Commissioner which are deceptively similar to those used by the Commissioner; (10) The licensee has since the granting of the licensee’s license been convicted of a felony or has been convicted of violating any of the liquor laws of this State, general or local, including the provisions of this title; (11) The licensee has admitted guilt or has been adjudged guilty of violations of local, municipal, county or State regulations, ordinances or codes related to the operation of a licensed premises; (12) There is any other reason which in the opinion of the Commissioner based on public convenience or necessity warrants cancelling or suspending the license; (13) The licensee or a representative thereof has disciplined, threatened or otherwise penalized any person for refusing to violate or aiding the enforcement of the provisions of this title or the rules of the Commissioner. (c) The Commissioner shall not cancel or suspend any license for the sale of alcoholic liquors or impose any fine for an alleged violation of § 708 or § 904 of this title where the licensee or its employee has made a reasonable effort to determine the age of a purchaser of alcoholic liquors. For purposes of this subsection, a licensee or its employee shall be deemed to have made a reasonable effort to determine the age of a purchaser if, prior to any sale of alcoholic liquors, the licensee or its employee requires the purchaser to display identification, with a photograph of the purchaser thereon affixed, which sets forth information that would lead a reasonable man to believe the purchaser to be 21 years of age or older. (d) Any of the grounds for refusal of a license as provided for in § 543 of this title shall also be adequate grounds for suspension of a license. (e) The Commissioner may cancel any retail license if it has reasonable grounds to believe that the license was granted in violation of § 546(b) of this title, or any rule enacted pursuant to § 546(d) of this title. (f) [Repealed.] (g) The Commissioner may suspend any license for the sale of alcoholic liquors held by any taproom or restaurant or fine any licensee holding such a license if it has reasonable grounds to believe that the licensee has operated, caused the operation of or permitted the operation of any stationary source of sound in such a manner as to create an operative average sound level which is equal to or greater than 65 dBA, but less than 75 dBA, when measured at any location 100 feet or more from the licensed premises’ real property boundary. The Commissioner shall suspend any license for the sale of alcoholic liquors held by any taproom or restaurant and fine any licensee holding such a license if it has reasonable grounds to believe that the licensee has operated, caused the operation of or permitted the operation of any stationary source of sound in such a manner as to create an operative average sound level which is equal to or greater than 75 dBA when measured at any location 100 feet or more from the real property boundary of the licensed premises. For the purpose of this section, “operative average sound level” means the energy average of the A-weighted sound pressure level during the business hours of operation of the licensed premises. The operative average sound level may be determined by an average of not less than 3 individual decibel readings taken not less than 10 minutes apart and taken from the same location. Provided however, that nothing in this subsection shall apply within the boundaries of any municipality. (h) (1) [Repealed.] (2) The temporary suspension shall be until the Commissioner no longer has reasonable grounds to believe that the public’s safety is at risk, but can be no longer than 20 days unless otherwise provided herein. (3) At the time of the temporary suspension, the Commissioner shall provide the licensee with notice of a hearing, which shall be held by electronic, telephonic or remote means, within 20 days of the issuance of the temporary suspension. (4) If a licensee fails to attend such hearing, the Commissioner may continue the temporary suspension. If the temporary suspension is continued, a licensee may request the Commissioner to hold another hearing which shall be provided by electronic, telephone, or remote means within 20 days of the licensee’s request. (5) After a hearing, the Commissioner may do any of the following: a. Continue the temporary suspension until a public hearing is scheduled in accordance with § 562 of this title if the Commissioner believes that the public safety will be at risk if the temporary suspension is lifted. b. Lift the suspension if the Commissioner believes that lifting the temporary suspension will not result in a risk to public safety. c. Impose appropriate conditions or fines on the licensee. d. Take whatever action the Commissioner believes is necessary and appropriate in order to ensure that the public safety will not be at risk by the licensee. Except the Commissioner may not cancel or revoke a license unless pursuant to § 562 of this title. (6) Notwithstanding any law, regulation, or rule to the contrary, the Commissioner may temporarily suspend any license if the Commissioner has reasonable grounds to believe that the public’s safety is at risk and that the licensee has violated the provisions of Title 4. (i) If the Commissioner receives notice from the appropriate political subdivision that any Certificate of Compliance issued to satisfy an applicant’s duty under § 543(j) of this title has been suspended, then the Commissioner shall suspend any license or extension of an existing license granted in reliance on such Certificate of Compliance until such time as the Commissioner receives notice from the appropriate political subdivision that such Certificate has been reinstated. If the Commissioner receives notice from the appropriate political subdivision that any Certificate of Compliance issued to satisfy an applicant’s duty under § 543(j) of this title has been canceled, then the Commissioner shall revoke any license or extension of an existing license granted in reliance on such Certificate of Compliance.

Del. Code tit. 4, § 562 Public hearing and right of appeal.

(a) No license shall be cancelled or suspended, or any licensee fined: (1) Until the licensee has been given a public hearing by the Commissioner at which time the licensee shall be entitled to legal representation and to present witnesses; and (2) Unless the ground therefor shall be established by clear and convincing evidence. A full and complete record shall be kept of all proceedings incident to such hearing. All testimony shall be recorded but need not be transcribed unless an order of the Commissioner is appealed to the Superior Court as set forth in subsection (c) of this section. (b) Any order of the Commissioner relative to suspension or cancellation of a license, or a fine imposed against a licensee shall become final 10 days after the licensee receives notice thereof, unless within 10 days of the date of the postmark on the Commissioner’s decision a written appeal is filed in the Superior Court. No bond shall be required for filing such appeal. (c) The appeal shall state the grounds upon which a review is sought. After the appeal is filed, service shall be made by the Sheriff upon the Commissioner. The Commissioner shall certify and file with the court all documents and papers and a transcript of all testimony taken in the matter, together with the Commissioner’s findings therein as soon as practicable but in no event later than 20 calendar days from the date of service of the appeal. The Superior Court’s review of an appeal shall be on the record and the Superior Court shall take into account the experience and specialized competence of the agency and the purpose under which the agency acted. Further, the Superior Court’s review, in the absence of fraud, shall be limited to whether the agency’s decision is supported by substantial evidence on the record and is free from legal error. (d) An appeal without bond may be taken from the decision of the Superior Court to the Supreme Court of this State in the same manner as is provided in civil cases. Upon the final determination of judicial proceedings, the Commissioner shall enter an order in accordance with such determination, or shall take such further or other action as the Court may order. A petition for judicial review shall act as a supersedeas. (e) The public hearing required in subsection (a) of this section may be by electronic, telephone, or remote means.

Del. Code tit. 4, § 563 Effect of cancellation or surrender of license; notice.

(a) The cancellation or the acceptance of a surrender of any license shall entail the loss of the privilege conferred by the license and shall entail the acceptance of or the seizure by the Commissioner of any alcoholic liquor found in the possession of the holder of the license, except those which occur solely by reason of the death of the licensee. (b) Notice of the order of the cancellation or the acceptance of the surrender of the license may be served by an officer designated by the Commissioner by affixing a duplicate thereof to the outside of the entrance door of the licensed premises, or by leaving a duplicate with the holder of the license, or with any member of the family of the holder over the age of 18 years at the residence of the holder, or otherwise, as in the judgment of the Commissioner will give notice of such cancellation or acceptance of the surrender. All cancellations or acceptances of surrender shall take effect as soon as the order is served. (c) The cancellation or acceptance of surrender of a license shall not in any wise prevent the institution of any criminal proceedings for any offense under this title by the person who was the holder of such license while it was in force. No conviction obtained for any offense under this title shall prevent the Commissioner from cancelling the license of any offender or from making at the same time a seizure of alcoholic liquor as provided in this title.

Del. Code tit. 4, § 564 Payments to former licensee.

The Department of Finance shall, within 30 days of the date of the cancellation or acceptance of surrender of a license, remit to the former licensee a part of the license fee which has been paid and pertains to the unexpired term of the license. In addition, the Commissioner shall remit to the former licensee the amount originally received by the Commissioner from the former licensee in payment for such alcoholic liquor accepted or seized as remains in packages sealed by the Commissioner, after paying or deducting therefrom all costs and expenses incurred by the Commissioner by reason of the acceptance or seizure of the alcoholic liquor of the former licensee. When other legally acquired alcoholic liquors have been accepted or seized under this section, the value thereof as determined by the Commissioner shall be remitted by the Commissioner to the former licensee, after paying or deducting therefrom all costs and expenses incurred by the Commissioner by reason of the acceptance or seizure of the alcoholic liquor of the former licensee. When illegally acquired alcoholic liquors have been seized under this section, no payment shall be made therefor.

Del. Code tit. 4, § 571 Transfer of license.

(a) The rights conferred by a license may be transferred by the Commissioner to any representative designated by the person to whom or on behalf of whom the license was originally granted, if such representative is a person approved by the Commissioner. In the case of death of an individual to whom a license has been granted, the Commissioner may transfer the license to a qualified person recommended by the executor or administrator of the estate of the deceased licensee. (b) In instances where the Commissioner has approved the transfer of a license, all matters concerning alcoholic beverage inventories shall be handled directly between the transferor and the transferee and all payments shall be made directly and not through the Commissioner.

Del. Code tit. 4, § 572 Death of licensee; payments to licensee’s estate.

If any licensee dies and no application is made for transfer of the license, or the Commissioner refuses to permit the transfer of the license to another person, the Department of Finance shall return to the legal representative of such deceased person a share of the license fee received by the Department proportionate to the number of full calendar months of the unexpired term; and if the alcoholic liquors in possession of the licensee at the time of the licensee’s death are delivered to the Commissioner and the Commissioner ascertains that such alcoholic liquors have been received by the deceased person according to law, the Commissioner shall pay to the representative the amount originally received by the Commissioner for such alcoholic liquors less 10 percent thereof, or the appraised value less 10 percent thereof.

Del. Code tit. 4, § 581 Rates of tax [For application of this section, see 81 Del. Laws, c. 54, § 2].

(a) All persons required to be licensed under this title as an importer shall pay a tax upon the sale of alcoholic beverages to any person who purchases alcohol from an importer in this State at the rates set forth in subsection (d) of this section. (b) All persons licensed under this title to manufacture alcoholic beverages shall pay a tax on all alcoholic beverages sold to customers in this State at the rates set forth in subsection (d) of this section. This subsection shall not apply to sales to customers who are: (1) Importers of alcoholic beverages subject to licensing under this title; (2) Distributors of alcoholic beverages licensed by a state other than Delaware where the alcoholic beverages are sold for resale in such other state; or (3) In the case of sales of beer, an instrumentality of the United States Armed Forces. (c) Except as provided in subsection (a) or (b) of this section, any person who imports alcoholic beverages for consumption in this State shall pay to the Department of Finance the tax on such imports at the rates set forth in subsection (d) of this section. (d) The tax payable under this section shall be as follows: (1) For each barrel of beer or fermented beverage, $8.15. (2) For each gallon of cider, $.27. (3) For each gallon of wine, $1.63. (4) For each gallon of spirits containing 25 % or less of ethyl alcohol by volume, $3.00. (5) For each gallon of spirits containing more than 25 % ethyl alcohol by volume, $4.50. (6) For each gallon of alcohol per gallon of ethyl alcohol contained, $8.15, except that the tax of $8.15 shall not apply to the purchase of alcohol by pharmacists, physicians, dentists, veterinarians, wholesale druggists or manufacturing plants where the alcohol is used in scientific work, for the manufacture of pharmaceutical products, or for use in the manufacture or compounding of preparations unfit for beverage purposes. (e) The Commissioner shall make and publish such rules and regulations with respect to the collection and payment of the taxes imposed by this section as it deems proper, and all such rules and regulations that are not inconsistent with the provisions of this title shall have the force and effect of law. (f) For the months of August 2019 and July 2020, all persons required to be licensed under this title as an importer shall be entitled to a nonrefundable credit against the tax on alcoholic beverages imposed pursuant to subsection (a) of this section in an amount equal to 1 / 2 of the tax previously paid on such importer’s alcoholic liquor floor stock or inventory resting in the State on July 31, 2019, as reported in accordance with commission rules. Any amounts of credit not used by virtue of the preceding sentence may be carried forward and used against future tax imposed by this section. A person required to be licensed under this title as an importer shall not be entitled to the credit permitted pursuant to this subsection if such person fails to report such person’s alcoholic liquor floor stock or inventory resting in the State on July 31, 2019, on a timely-filed report.

Del. Code tit. 4, § 581A Rate of tax for infused beverages; administration and reporting [Effective Feb. 1, 2027].

(a) An importer holding an endorsement to sell and transport infused beverages to package stores or retail marijuana stores in this State must pay a tax upon the sale of infused beverages at the rate set forth in subsection (c) of this section. (b) A microbrewery or marijuana product manufacturing facility holding an endorsement under this title to manufacture infused beverages must pay a tax upon the sale of infused beverages sold for off-premises consumption at the rate set forth in subsection (c) of this section. This subsection does not apply to sales of infused beverages to an importer by a microbrewery or marijuana product manufacturing facility holding an endorsement under this title to manufacture infused beverages. (c) The tax payable for infused beverages is $0.50 per single-serving infused beverage container and $8.50 per 750 milliliter bottle. (d) A licensed importer, microbrewery, or marijuana product manufacturing facility required to pay the tax under this section must file a monthly report with the Division of Revenue in the form required by the Director of the Division of Revenue and must provide additional information as the Director of the Division of Revenue may require. (e) A licensed importer, microbrewery, or marijuana product manufacturing facility required to pay the tax under this section must pay the tax in the form and manner prescribed by the Director of the Division of Revenue, but no later than at the time the importer or manufacturer is required to file the monthly report. (f) Except to the extent inconsistent with specific provisions of this title, the provisions of Chapter 5 of Title 30 govern the assessment, collection, review, and appeal of deficiencies of taxes imposed by this title, any interest and penalties thereon, and claims for refund of overpayment of taxes imposed by this title. (g) All infused beverage tax money received by the Division of Revenue under this section must be deposited in accordance with § 6103(a) of Title 29 and credited to the Marijuana Regulation Fund. (h) Any information set forth or disclosed in any report or return required under or as a result of this section, including any information that is required to be attached or included on any report or return required under or as a result of this section, is subject to the provisions of § 368 of Title 30. Notwithstanding the foregoing or any other law of this State to the contrary, any information set forth or disclosed in any report or return required under or as a result of this section may be shared by the Division of Revenue with the Office of the Alcoholic Beverage Control Commissioner and the Office of the Marijuana Commissioner for the purpose of enforcement under this title, and the licensee or holder of the endorsement is deemed to consent to such disclosure at the time the licensee or holder of the endorsement submits the report or return.

Del. Code tit. 4, § 582 Refund of tax paid by importers or wholesalers on beer sold to instrumentalities of the armed forces of the United States.

(a) Any tax paid by an importer or wholesaler to the Department of Finance, pursuant to § 581 of this title, on alcoholic liquors that are sold by such importer or wholesaler to an instrumentality of the armed forces of the United States shall be refunded to such importer or wholesaler by the Department of Finance. (b) Any importer or wholesaler entitled to a refund of tax under this section may, instead of filing a claim for refund, take credit therefor against taxes imposed by § 581 of this title and due upon alcoholic liquor subsequently purchased by such importer or wholesaler. (c) The Commissioner may make and publish rules and regulations with respect to refunds and credits allowed by this section, and such rules and regulations as are not inconsistent with this title shall have the force and effect of law.

Del. Code tit. 4, § 583 Administration of taxes.

Except to the extent inconsistent with specific provisions of this title, the provisions of Chapter 5 of Title 30 shall govern the assessment, collection, review and appeal of deficiencies of tax imposed by this title, and any interest and penalties thereon, and claims for refund of overpayment of taxes imposed by this title.

Del. Code tit. 4, § 584 State fees in lieu of county and municipal fees; preemption provision.

The fees, charges and taxes imposed by the State under this title shall be in lieu of all county and municipal license fees and taxes upon the business of manufacturing, supplying, distributing and selling alcoholic liquor as such. Provided, however, general occupational license fees and general taxes imposed uniformly on everyone within the class shall not be preempted. For purposes of this section, “class” shall not be defined by general or specific reference to manufacturing, supplying, distributing, or selling alcoholic liquor.

Source: DE Code (Official Site)URL: https://delcode.delaware.gov/title4/c005/sc01/index.htmlFetched: 10/4/2026