Section 1. Amend Subchapter II, Chapter 5, Title 4 of the Delaware Code by adding thereto a new section to read:

“§ 516A. License for sale of wine and beer in grocery stores for off-premises consumption.

(a) Subject to the provisions, restrictions, and prohibitions of this title unless expressly exempted, a wine and beer grocery store license may be granted by the Commissioner to qualified applicants. For purposes of this section, a 'wine and beer grocery store license' is a license issued by the Commissioner to an owner, lessee, or manager of a retail 'grocery supermarket' as described in 30 Del. C. § 2908(a), herein referred to as a ‘grocery store’, which shall not include a store that utilizes more than 33% of its floor space to displays and sales of merchandise other than normal groceries or a convenience store that also sells grocery items, permitting the grocery store to purchase from an importer and to receive, keep (stock), and sell wine and beer for off-premises consumption. For purposes of this section, ‘beer’ shall include no more than 49% of the overall alcohol content of the finished product to be derived from the addition of flavors and other non-beverage ingredients containing alcohol, and in the case of malt beverages with an alcohol content of more than 6% by volume no more than 1.5% of the volume of the malt beverage may consist of alcohol derived from added flavors and other non-beverage ingredients containing alcohol.

(b) All containers of wine and beer sold in a wine and beer grocery store must be removed from the premises with the seals unbroken.

(c) Nothing in this section prevents the employment of a person 16 to 18 years of age by a grocery store that sells wine and beer, provided that an employee aged 16 or 17 does not purchase, receive, keep, sell, or assist in the purchasing, receiving, keeping, or selling of wine and beer. An employee that is 18 to 20 years of age may receive or keep wine and beer, and an employee 21 years of age or older may purchase, receive, keep, or sell wine and beer. The provisions of § 904(e) of this title shall not prohibit a person under the age of 21 from entering or remaining in a wine and beer grocery store.

(d) Notwithstanding the hours of operation of a grocery store, the store must comply with the provisions of § 709 of this title that relate to stores. During the hours that a store is operating, but is prohibited from selling wine and beer, all wine and beer exposed for sale must be kept unavailable to all persons. The Commissioner shall promulgate regulations regarding how a grocery store can properly keep wine and beer unavailable to all persons, and any other regulations that the Commissioner considers necessary or prudent including, without limitation, a requirement that the grocery store dedicate specific checkout locations for the purchase of wine and beer.

(e) A premises licensed as a wine and beer grocery store may use no more than 10% of its floor space where goods are exposed for sale to sell, expose, display, or advertise wine and beer. “the provisions of § 1203 © requiring Delaware responsible alcoholic beverage training for employees shall be applicable to wine and beer grocery store licensees.

(f) Wine and beer tasting pursuant to § 525 of this title is prohibited in a wine and beer grocery store.

(g) An establishment that has been issued a wine and beer grocery store license by the Commissioner need not use the term 'grocery store' in its trade name, advertisements, or signage unless the Commissioner specifically finds that the public may be confused as to its status as a grocery store."

(h) Any application to transfer a wine and beer grocery store license shall be done in accordance with the process set forth in § 554(x) of Title 4.”.

Section 2. Amend § 554, Title 4 of the Delaware Code by adding a new subsection to read as follows:

“(oo) For a license to sell wine and beer in a grocery store for off-premises consumption, the initial application fee shall be $100,000 per store location and the biennial renewal license fee shall be $5,000.”.

Section 3. Amend § 516(a), Title 4 of the Delaware Code by adding after the phrase “(other than a grocery” the following: “except a wine and beer grocery store,”. Further amend § 516(a), Title 4 of the Delaware Code by adding after the word “establishments” the following: “, except a wine and beer grocery store,”.

Section 4. Amend § 543(d), Title 4 of the Delaware Code by striking the period (“.”) and substituting a semi-colon (“;”) therefore at the end of § 543(d)(3) and by adding a new subpart “(4)” at the end of said subsection to read as follows: “(4) To wine and beer grocery store, except that a wine and beer grocery store shall not be permitted within the aforesaid geographical limitation of another wine and beer grocery store.”.

Section 5. Amend § 546(b), Title 4 of the Delaware Code by adding to the end of said subsection the following: “This subsection shall not apply to a wine and beer grocery store as provided in § 516A of this Title.”.

SPONSOR:	Rep. Viola & Sen. DeLuca