Bill Text: DE HB447 | 2009-2010 | 145th General Assembly | Draft

---

Bill Title: An Act To Amend Title 4 Of The Delaware Code Relating To Brewery-pubs And Microbreweries.

Sponsorship: Slight Partisan Bill (Democrat 11-6)

Status: (Passed) 2010-07-24 - Signed by Governor [HB447 Detail]

Download: Delaware-2009-HB447-Draft.html

---

SPONSOR:	Rep. Schwartzkopf & Rep. Briggs King & Sen. DeLuca
	Reps. Bennett, Carson, Hudson, Lavelle, Longhurst, Mitchell, Q. Johnson, Scott, B. Short; Sens. Bunting, Sorenson, Venables, Booth

HOUSE OF REPRESENTATIVES

145th GENERAL ASSEMBLY

HOUSE BILL NO. 447

AN ACT TO AMEND TITLE 4 OF THE DELAWARE CODE RELATING TO BREWERY-PUBS AND MICROBREWERIES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1.Amend �512C(c)(1), Title 4 of the Delaware Code by deleting paragraph (1) in its entirety and substituting in lieu thereof the following:

"(1)To manufacture and sell on the licensed premises beer, mead or cider or a combination thereof, but the licensee shall not manufacture or sell more than the maximum amount permitted by Federal Regulations to qualify for a "reduced rate of tax for certain brewers" as currently found in the Code of Federal Regulations, Title 27, Part 25, Subpart 25.152(a)(2) or as hereafter amended;".

Section 2.Amend �512C(c)(4), Title 4 of the Delaware Code by deleting paragraph (4) in its entirety and substituting in lieu thereof the following:

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

Section 3.Amend �512C, Title 4 of the Delaware Code by adding a new subsection (h) as follows:

"(h)The provisions of �546 of this Title to the contrary notwithstanding, the sale for off premises consumption at a licensee licensed under this section and at up to two (2) Brewery-Pubs licensed pursuant to �512B of this Title all owned or controlled by the same person shall be permitted.".

Section 4.Amend �512B, Title 4 of the Delaware Code by adding a new subsection (g) as follows:

"(g)The provisions of �546 of this Title to the contrary notwithstanding, the sale for off premises consumption at up to two (2) licensees licensed under this section and at a microbrewery licensed pursuant to �512C of this Title all owned or controlled by the same person shall be permitted.".

SYNOPSIS

This Bill would permit the sale of beer made on the premises to consumers for consumption on the premises similar to that currently permitted under Delaware law for Farm Wineries. This will encourage tourism at the Microbreweries licensed in this State.

Delaware law has permitted an individual to have an interest in up to two (2) Brewery-Pubs and a Microbrewery, but a strict reading of �546 would mean that the individual could only sell for consumption off of the premises at two of the three licensed premises.This Bill makes clear that the provisions of �546, limiting to two (2) the number of establishments that sell for off premises consumption that an individual can have an interest in, does not apply to microbreweries and Brewery-Pubs.Brewery-Pubs are limited in the amount of production and may only sell beer produced at the premises, therefore the public policy set forth in �546 does not apply in this instance.

Federal law has provided a tax break for what has been referred to as "Craft Breweries."The maximum that a brewery can manufacture and receive the reduced rate is currently two million barrels.This Bill would allow microbreweries to brew up to the level that the Federal Government recognizes as a Craft Brewery which could attract larger microbreweries to Delaware.