Delaware Code Title 4 Sec. 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.
Terms Used In Delaware Code Title 4 Sec. 543
- alcoholic liquors: include the 5 varieties of liquor defined in this section (alcohol, spirits, wine, beer and alcoholic cider) as well as every liquid or solid, patented or not, containing alcohol, spirits, wine, beer or alcoholic cider and capable of being consumed by a human being, and any liquid or solid containing more than 1 of the 5 varieties defined in this section is considered as belonging to that variety which usually has the higher percentage of alcohol. See Delaware Code Title 4 Sec. 101
- Beer: means any beverage containing more than 1/2 of 1% of ethyl alcohol by volume, obtained by the alcoholic fermentation of any infusion or decoction of barley malt and hops in water and includes, among other things, ale, porter, stout and other malt or brewed liquors. See Delaware Code Title 4 Sec. 101
- Club: means a corporation or association created by competent authority, which is the owner, lessee or occupant of premises operated solely for objects of national, social, patriotic, political or athletic nature, or the like, whether or not for pecuniary gain, and the property as well as the advantages of which belong to or are enjoyed by the stockholders or by the members of such corporation or association. See Delaware Code Title 4 Sec. 101
- Commissioner: means the person appointed by the Governor and confirmed by the Senate who serves as the Alcoholic Beverage Control Commissioner for the State. See Delaware Code Title 4 Sec. 101
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Establishment: means any place located physically in this State where alcoholic liquor of 1 or more varieties is stored, sold or used by authority of any law of this State, including a hotel, restaurant, tavern, beer garden, or club as defined in this section, or where alcoholic liquor of 1 or more varieties is manufactured by virtue of any law of this State. See Delaware Code Title 4 Sec. 101
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Importer: means the person transporting or ordering, authorizing or arranging the transportation or shipment of alcoholic liquors into this State, whether the person is a resident or citizen of this State or not, said person being permitted to sell said alcoholic liquors only to those persons licensed to resell alcoholic liquors; provided, however, that nothing contained in this definition shall be construed as prohibiting an importer from selling such alcoholic liquors to either an active owner of that business for that person's use and not for resale or to a full-time, bona fide employee of that business for that person's use and not for resale; and provided further, that nothing contained in this definition shall be construed as prohibiting an importer from selling beer in "half-barrel" or "quarter-barrel" containers to the holders of a personal license. See Delaware Code Title 4 Sec. 101
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- License: means any license or permit to manufacture, to sell, to purchase, to transport, to import or to possess alcoholic liquor authorized or issued by the Commissioner under the provisions of Chapter 5 of this title. See Delaware Code Title 4 Sec. 101
- Manufacture: means distill, rectify, ferment, brew, make, mix, concoct or process any substance or substances capable of producing a beverage containing more than 1/2 of 1% of alcohol by volume and includes blending, bottling or other preparation for sale. See Delaware Code Title 4 Sec. 101
- Manufacturer: means any person engaged in the manufacture of any alcoholic liquor and among others includes a distiller, a rectifier, a wine maker, a brewer, and includes a bottler or one who prepares alcoholic liquor for sale. See Delaware Code Title 4 Sec. 101
- Preparation: means any medicine (patented or proprietary); any mixture containing drugs or mineral substances; any perfume, lotion, tincture, varnish, dressing, fluid extract or essence, vinegar, cream, ointment or salve; any distillate or decoction, whether or not containing other substances in solution or suspension, that contains ethyl alcohol or any alcoholic liquor to any amount exceeding 1/2 of 1% by volume. See Delaware Code Title 4 Sec. 101
- Restaurant: means any establishment which is regularly used and kept open principally for the purpose of serving complete meals to persons for consideration and which has seating at tables for 12 or more persons and suitable kitchen facilities connected therewith for cooking an assortment of foods under the charge of a chef or cook. See Delaware Code Title 4 Sec. 101
- Sale: means every act of selling as defined in this section. See Delaware Code Title 4 Sec. 101
- Sell: means : solicit or receive an order for; keep or expose for sale; deliver for value or in any other way than purely gratuitously; keep with intent to sell; keep or transport in contravention of this title; traffic in; or for any valuable consideration, promised or obtained, directly or indirectly, or under any pretext or by any means whatsoever, procure or allow to be procured for any other person, to carry alcoholic liquors on one's person or to transport with one and with intent to sell the same, but not in any establishment where the sale thereof is allowed. See Delaware Code Title 4 Sec. 101
- State: means the State of Delaware; and when applied to different parts of the United States, it includes the District of Columbia and the several territories and possessions of the United States. See Delaware Code Title 1 Sec. 302
- Taproom: means an establishment provided with special space and accommodations and operated primarily for the sale by the glass and for consumption on the premises of alcoholic liquors with the sale of food as a secondary object as distinguished from a restaurant where the sale of food is the primary object. See Delaware Code Title 4 Sec. 101
- Tavern: means any establishment with special space and accommodation for sale of beer and wine as defined in this section to be sold to each customer in single servings. See Delaware Code Title 4 Sec. 101
- United States: includes its territories and possessions and the District of Columbia. See Delaware Code Title 1 Sec. 302
(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 his or her 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.
38 Del. Laws, c. 18, §§ ?22, 24; Code 1935, §§ ?6151, 6153; 4 Del. C. 1953, § ?543; 54 Del. Laws, c. 324; 54 Del. Laws, c. 377, § ?2; 55 Del. Laws, c. 116, § ?1; 55 Del. Laws, c. 283, § ?2; 55 Del. Laws, c. 342, §§ ?1, 2; 55 Del. Laws, c. 446; 56 Del. Laws, c. 34; 57 Del. Laws, c. 708; 58 Del. Laws, c. 542; 59 Del. Laws, c. 107, §§ ?34-37; 61 Del. Laws, c. 145, § ?1; 63 Del. Laws, c. 373, § ?1; 64 Del. Laws, c. 430, § ?1; 66 Del. Laws, c. 178, § ?1; 67 Del. Laws, c. 109, § ?15; 68 Del. Laws, c. 44, §§ ?1, 2; 69 Del. Laws, c. 338, § ?1; 70 Del. Laws, c. 186, § ?1; 71 Del. Laws, c. 435, §§ ?4, 5; 72 Del. Laws, c. 157, § ?1; 72 Del. Laws, c. 486, § ?9; 78 Del. Laws, c. 285, § ?21; 82 Del. Laws, c. 98, § 1; 82 Del. Laws, c. 247, §§ ? 3, 5; 83 Del. Laws, c. 9, § 3; 83 Del. Laws, c. 9, § 5; 83 Del. Laws, c. 56, § 106; 83 Del. Laws, c. 176, § 1; 83 Del. Laws, c. 284, § 3; 83 Del. Laws, c. 287, § 1; 84 Del. Laws, c. 37, § 2;