HB 290 — AN ACT TO AMEND TITLE 4 OF THE DELAWARE CODE RELATING TO ALCOHOLIC LIQUORS.

The following notice will, in addition to the aforesaid Commissioner approved notice, satisfy this notice provision:

“[Name of applicant] has on [Date of application] applied with the Alcoholic Beverage Control (“Commissioner”) for [Nature of application] for a premises located at [Location of the premises, including street and city].

Persons who are against this application should provide written notice of their objections to the Commissioner.

For the Commissioner to be required to hold a hearing to consider additional input from persons against the application, the Commissioner must receive HD :

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01/07/2022 11:12 AM one or more documents containing a total of at least 10 signatures of residents or property owners located within 1 mile of the premises or in any incorporated areas located within 1 mile of the premises.

The protest(s) must be filed with the Alcoholic Beverage Control Commissioner at the 3rd Floor, Carvel State Office Building, 820 North French Street, Wilmington, DE 19801.

The protest(s) must be received by the Commissioner’s office on or before [state a date at least 30 days after the application is filed].

Failure to file such a protest may result in the Commissioner considering the application without further notice, input or hearing.

If you have questions regarding this matter please contact the Commissioner’s Office.” (e) The term “substantive change” referenced in this section shall mean any of the following:

(1) Any permanent change that will increase the square footage of the licensed premises;

(2) Any temporary change that will last longer than 60 days and result in an increase of the square footage of the licensed premises;

(3) Any change that would require a variance of the Commissioner’s rules or suspension thereof and results in:

a.

Live entertainment on a licensed patio;

b.

External speakers or amplifiers on a licensed patio;

or c.

Wet bar on a licensed patio;

(4) Any change in the floor plan of a restaurant licensee which would increase the number of bar seats or increase the area utilized for entertainment;

or (5) Any additional circumstance that the Commissioner determines is a substantive change.

(f) Notwithstanding § 524(e) of this title or any other law, rule, or regulation to the contrary, substantive change does not mean any of the following:

(1) An expansion of outdoor seating for serving of food and drinks that as of March 31, 2022 was approved by the Commissioner.

(2) An expansion of outdoor seating for serving of food and drinks that meets all of the following requirements:

a.

A plan approved by the appropriate political subdivision that does all of the following:

1.

Considers local traffic patterns and parking capacity needs, but may extend the boundaries of seating beyond current property boundaries under the discretion of the appropriate political subdivision and applicable property owners on all local right of ways.

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Does not intrude upon the State’s right of way, unless approved by the Delaware Department of Transportation in writing.

3.

Maintains current access, unless approved by Delaware Department of Transportation in writing.

4.

Maintains proper access to the property for all emergency services.

5.

Complies with the Americans Disabilities Act.

6.

Adheres to all local noise ordinances.

7.

Allows for the proper control over the distribution of alcoholic beverages.

b.

Approval by the Commissioner regarding the service of alcohol on premises.

(g) Any plan approved by or submitted to the appropriate political subdivision and the Commissioner pursuant to § 524(f) may allow for the service of alcoholic beverages without the requirement to serve food.

(h) Any plan submitted to the appropriate political subdivision and the Commissioner pursuant to § 524(f) that meets all of the requirements of § 524(f)(2) should not be denied approval absent exceptional circumstances.

(i) Any political subdivision that revokes or modifies its approval for an expansion of outdoor seating for serving of food and drinks under § 524(f) of this section must notify the Commissioner within 30 days of such revocation or modification.

§ 543 Grounds for refusal of license;

transfer or extension of premises.

(g) 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(f) even if the State of Emergency is no longer in effect.

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01/07/2022 11:12 AM Section 4.

Amend Chapter 5, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underlines as follows:

§ 561 Grounds for cancellation or suspension.

(h)(1) Notwithstanding any law, regulation, or rule to the contrary, the Commissioner may temporarily suspend any license if the Commissioner has reasonable grounds to believe that the public’s safety is at risk and that the licensee has violated the provisions of Title 4.

(2) The temporary suspension shall be until the Commissioner no longer has reasonable grounds to believe that the public’s safety is at risk, but can be no longer than 20 days unless otherwise provided herein.

(3) At the time of the temporary suspension, the Commissioner shall provide the licensee with notice of a hearing, which shall be held by electronic, telephonic or remote means, within 20 days of the issuance of the temporary suspension.

(4) If a licensee fails to attend such hearing, the Commissioner may continue the temporary suspension.

If the temporary suspension is continued, a licensee may request the Commissioner to hold another hearing which shall be provided by electronic, telephone, or remote means within 20 days of the licensee's request.

(5) After a hearing, the Commissioner may do any of the following:

a.

Continue the temporary suspension until a public hearing is scheduled in accordance with § 562 of this title if the commissioner believes that the public safety will be at risk if the temporary suspension is lifted.

b.

Lift the suspension if the Commissioner believes that lifting the temporary suspension will not result in a risk to public safety.

c.

Impose appropriate conditions or fines on the licensee.

d.

Take whatever action the Commissioner believes is necessary and appropriate in order to ensure that the public safety will not be at risk by the licensee.

except the Commissioner may not cancel or revoke a license unless pursuant to § 562 of this title.

§ 562 Public hearing and right of appeal.

(a) No license shall be cancelled or suspended, or any licensee fined:

(1) Until the licensee has been given a public hearing by the Commissioner at which time the licensee shall be entitled to legal representation and to present witnesses;

and (2) Unless the ground therefor shall be established by clear and convincing evidence.

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01/07/2022 11:12 AM A full and complete record shall be kept of all proceedings incident to such hearing.

All testimony shall be recorded but need not be transcribed unless an order of the Commissioner is appealed to the Superior Court as set forth in subsection (c) of this section.

(b) Any order of the Commissioner relative to suspension or cancellation of a license, or a fine imposed against a licensee shall become final 10 days after the licensee receives notice thereof, unless within 10 days of the date of the postmark on the Commissioner’s decision a written appeal is filed in the Superior Court.

No bond shall be required for filing such appeal.

(c) The appeal shall state the grounds upon which a review is sought.

After the appeal is filed, service shall be made by the Sheriff upon the Commissioner.

The Commissioner shall certify and file with the court all documents and papers and a transcript of all testimony taken in the matter, together with the Commissioner’s findings therein as soon as practicable but in no event later than 20 calendar days from the date of service of the appeal.

The Superior Court’s review of an appeal shall be on the record and the Superior Court shall take into account the experience and specialized competence of the agency and the purpose under which the agency acted.

Further, the Superior Court’s review, in the absence of fraud, shall be limited to whether the agency’s decision is supported by substantial evidence on the record and is free from legal error.

(d) An appeal without bond may be taken from the decision of the Superior Court to the Supreme Court of this State in the same manner as is provided in civil cases.

Upon the final determination of judicial proceedings, the Commissioner shall enter an order in accordance with such determination, or shall take such further or other action as the Court may order.

A petition for judicial review shall act as a supersedeas.

(e) The public hearing required in subsection (a) of this section may be by electronic, telephone, or remote means.

SYNOPSIS This bill permanently removes the sunset provision of House Bill 1 to allow food and drink establishments who suffered great losses since March, 2020 due to the pandemic to continue to sell alcoholic beverages in transactions for take- out, curbside, or drive-through service and to use outdoor seating for serving of food and drinks so long as the licensee satisfies certain conditions.

This bill also permanently provides the Commissioner the authority to temporarily suspend a license only if the Commissioner has reasonable grounds to believe that public's safety is at risk and there has been a violation of the law, and to hold hearings by electronic, telephonic, or remote means.

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