SPONSOR:

Rep. Schwartzkopf & Sen. McBride

Reps. Briggs King, Griffith, Ramone, Yearick; Sens. Lopez, Sokola

HOUSE OF REPRESENTATIVES

150th GENERAL ASSEMBLY

HOUSE BILL NO. 125

AN ACT TO AMEND TITLE 4 OF THE DELAWARE CODE RELATING TO CRAFT ALCOHOLIC BEVERAGES.

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

Section 1. Amend Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 512B(8): The provisions of § 506 of this title to the contrary notwithstanding, it 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 farm winery, microbrewery, and/or craft distillery licensed under this chapter and actually located in this State, provided that the total domestic sales of all affiliated suppliers or manufacturers shall not exceed the maximum amount that a craft brewery, as currently defined or as hereafter amended by the Brewer’s Association or its successor organization, is permitted to brew or sell. currently specified 27 C.F.R. Part 25, § 25.152(a)(2) or as hereafter amended .

§ 512C(c)(5): 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, and/or craft distillery licensed under this chapter and actually located in this State, provided that the total domestic sales of all affiliated suppliers or manufacturers shall not exceed the maximum amount that a craft brewery, as currently defined or as hereafter amended by the Brewer’s Association or its successor organization, is permitted to brew or sell. currently specified in 27 C.F.R. Part 25, § 25.152(a)(2) or as hereafter amended .

SYNOPSIS

This bill is intended to facilitate the growth and expansion of Delaware licensed craft alcoholic beverage companies within the State by permitting them to continue to grow and expand in an increasingly competitive environment. This bill does not change the position of craft alcoholic beverage companies in the traditional “three-tier” system.