Synopsis
This Act cleans up antiquated portions of The Liquor Control Act, under Title 4, by updating provisions that have been in the Code since the 1930s and making technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual. This Act also creates two new license types: (1) a special event license and (2) a bottle club license for businesses offering creative arts experiences like painting, candle-making, and other arts and engagement activities. In addition to technical changes, this Act makes all of the following changes to Title 4 of the Code: Sections 2, 7, 8, 15, 11, and 22 changes “retailer” or “retail” to “package store” in § 512A, § 512C, § 524, and § 904. Section 1 updates and modernizes definitions in § 101 by lowering the number of customers for concert hall licenses, clarifying that IRS-recognized 503(c)(3) or similar organizations may obtain gathering licenses, clarifying that an “importer” also means a wholesaler or distributor because the terms are used interchangeably throughout Title 4 and the Office of the Alcoholic Beverage Commissioner (“Office”) regulations, renaming a “retailer” as a “package store” and providing a clearer definition, and adding a new definition of “special event” for the special event license created by this Act. Section 2 requires the Office, under § 304, to provide current licensing data on its public-facing website rather than submitting annual reports to the Governor and the General Assembly. The Office already provides the licensing data on its website in lieu of paper reports that become stale quickly. Section 2 also updates how the Office provides notice of a hearing to consider a license application and the protests to the license application by removing the requirement to post the notice on the entrance door of the proposed licensee’s establishment and requiring the Office to mail notice by first class mail instead of registered mail. These changes reflect modern practices. Section 3 updates antiquated fiscal provisions in § 310 by requiring the Office to deposit receipts with the Office of the State Treasurer instead of the Division of Revenue and by requiring the Office to maintain receipt records and make the records available to the Division of Accounting instead of the Office of the State Treasurer. Section 4 allows the Auditor of Accounts (“Auditor”) to audit the Office, under § 313, as often as the Auditor considers necessary instead of requiring the Auditor to conduct an annual audit of the Office. Section 5 clarifies, under §501, that importers licensed as suppliers must deliver products directly to a licensed warehouse of a Delaware licensed importer because brokerage import firms licensed by the federal government as importers are also licensed as suppliers by the Office and act as agents of suppliers. Section 6 cleans up sentence structure in § 508 to clarify manufacturer and distillery reporting requirements. Section 9 removes the domestic sales cap on production for distilleries licensed under § 512E, because no other state has a similar production cap. Section 10 creates a new § 512H that allows the Delaware Alcoholic Beverage Control Commissioner (“Commissioner”) to grant to a qualified applicant a special event license for festivals, arts, crafts fairs, and other similar open-air events. The special event license permits the service and sale of alcoholic liquors for consumption on the licensed premises at special events hosted on the licensed premises by the landowner or tenant (the landowner could contract with a promotional company. A qualified applicant may hold only 1 special event license. The licensed premises must meet certain requirements, including having controlled ingress and egress. Also, at each special event sufficient food must be available at all times when alcohol is sold. A licensee must submit each special event to the Commissioner for review and approval at leas