╨╧рб▒с>■  QS■   JKLMNOP                                                                                                                                                                                                                                                                                                                                                                                                                        ье┴q` Ё┐И!bjbjqPqP 5::      д       & ъ№ъ№ъ№8"¤─ц¤╠& Кfь╛╛(ццR--- f f f f f f f$vhh▐jк/f ·D--·D·D/f  цR█Df\\\·Dд ц R f\·D f\\к^dC  ╤e цl▓ └ЇуAl`┼ъ№ЮGибe fZf0Кf╣eИkFXXИk$▌eИk ▌e,-Д▒^\(L [4Я---/f/fЮ[d---Кf·D·D·D·D& & & ─Єъ№& & & ъ№& & &            RULE NUMBER 1 A RULE GOVERNING THE SIGNING OF CHECKS, LICENSES, PERMITS, INVOICES AND VOUCHERS All licenses and permits issued by the Commissioner for the manufacture, importation, sale, storage, possession, or transportation of alcoholic liquors, and all permits, invoices, checks drawn on funds of the Commissioner, payroll and other vouchers necessary to the transaction of business by the Commissioner shall be signed as required by law by the Commissioner, or in the absence of the Commissioner, by the Deputy Commissioner. RULE NUMBER 2 PROHIBITED TRADE PRACTICES I.Purpose The Commissioner has concluded that reasonable marketing techniques are acceptable in the liquor industry. Promotional activities which tend to encourage excessive and/or uncontrollable consumption of liquor resulting in increased risk to consumers and the general public are not acceptable. Activities which impact adversely on open competition within the industry are not acceptable. This rule seeks to prohibit all such acts. II. Authority The Delaware Alcoholic Beverage Control Commissioner is authorized pursuant to 4 Del. C., з 304(a)(2), to establish by rules and regulations an effective control of the manufacture, sale, dispensing, distribution, and importation of alcoholic liquor within and into this state. Such rules, however, may not be inconsistent with Title 4 of the Delaware Code or any other law of the State. This rule, therefore, implements and clarifies the grant of authority to the Commissioner contained in 4 Del. C., з304(a)(2), to control the time, place, and manner in which alcoholic liquor shall be sold or dispensed by establishing uniform procedures for the advertising and promotion of alcoholic liquor. III. Applicability This rule shall govern the trade practices of all retail licenses, on-premise licenses, importer licenses, and supplier licenses issued by the Delaware Alcoholic Beverage Control Commissioner. IV. Prohibited Practices A. Retail Licensees 1. On-Premise License No establishment licensed to sell alcoholic beverages for consumption on the premises where sold shall engage in any trade practice which can reasonably be expected to cause, encourage, or induce a consumer to purchase, receive, or consume alcoholic beverages in excessive amounts or at an unduly rapid rate and shall include, but not be limited to, the following: Giving alcoholic beverages in any form, either directly or indirectly, to any individual, organization, group or other entity. Giving any form of cash (medium of exchange), either directly or indirectly, to any individual, organization, group, or other entity, except for bona fide contributions to not for profit entities and provided that such contribution is in no way conditional upon the purchase and/or consumption of alcoholic beverages. Selling alcoholic beverages at a price which is less than the seller's cost. Promoting, sponsoring, conducting, or participating in any event that is in any way conditional upon or involves consumption of alcoholic beverages. Offering or selling two (2) or more drinks for the regular price of one. Extending credit except as provided in Rule 56. Unlimited consumption of alcoholic beverages for a set price. However, caterers, as defined in 4 Del. C., з101 (8), and private functions in which the host/hostess pays a set price and which are conducted by invitation on a licensed premises are excluded from this prohibition. Delivering alcoholic beverages to any person who is or who appears to be intoxicated. Soliciting or receiving any items which an importer licensee is prohibited under Section IV-B-1-a or IV-B-1-b from giving to a retailer. Open bars are generally not permitted pursuant to the provisions of IV-A-1-g above; however, the Commissioner may grant a variance to this section provided that the licensee meets the criteria that follows: (1) The licensee must submit a written request to the Commissioner for a variance in this rule for a specific, planned event. (2) Admission to the event must be by ticket only and include the place, time, date, and hours of the event. (3) The request for a variance must be received by the Commissioner six (6) weeks in advance of the planned event. (4) Food of adequate variety and quantity must be offered as part of the package price for a ticket to the event. (5) Non-alcoholic beverages must be available and offered as part of the package price of a ticket for the event. (6) The tickets used for each event must contain a statement that the licensee retains the right to discontinue service of alcoholic liquor as required by state law and Delaware Alcoholic Beverage Control Commissioner rules. (7) All servers of alcoholic liquor and staff at the event must be trained in compliance with the Delaware mandatory server training law. (8) Adequate staff must be on site to monitor drinking by patrons and to take action consistent with state law and Commissioner rules. (9) The approval for an open bar by the Commissioner does not authorize the unlimited consumption of alcoholic beverages for a set price. Licensees, therefore, are still required to comply with all other applicable rules and laws, including the prohibition on serving a patron who is intoxicated or appears to be intoxicated and to refuse service of alcoholic liquor to underage patrons. 2. Off-Premise License No establishment licensed to sell alcoholic beverages for consumption not on the premise where sold shall engage in any trade practice which can reasonably be expected to cause, encourage, or induce a consumer to purchase, receive, or consume alcoholic beverages in excessive amounts or at any unduly rapid rate and shall include, but not be limited to, the following: a. Giving alcoholic beverages in any form, either directly or indirectly, to any individual, organization, group, or other entity, except that wine tasting on those premises properly licensed for such is permitted in accordance with established regulations. b. Selling alcoholic beverages at a price which is less than the seller's cost. c. Promoting, sponsoring, conducting, or participating in any event in which any gift, prize, service, or other gratuity is received by any consumer and is in any way conditional upon or involves consumption of alcoholic beverages. d. Extending credit except as provided in Rule 56. e. Delivering alcoholic beverages to any person who is or who appears to be intoxicated. f. Soliciting or receiving any items which an importer licensee is prohibited under Section IV-B-1-a or IV-B-1-b from giving to a retailer. B. Importer Licensees 1. No importer shall engage in any trade practice which can reasonably be expected to injure any retailer through discriminatory practices, nor shall any importer engage in any trade practices which can reasonably be expected to cause, encourage, or induce a consumer to purchase, receive, or consume alcoholic beverages in excessive amounts or at any unduly rapid rate and shall include, but not be limited to, the following: a. Giving alcoholic beverages in any form, either directly or indirectly, to any individual, organization, group, or other entity. b. Giving any form of cash (medium of exchange) either directly or indirectly, to any individual, organization, etc. except for bona fide contributions to not for profit entities and provided that such contribution is in no way conditional upon the purchase and/or consumption of alcoholic beverages. c. Requiring any retailer to take and dispose of a certain quota of any alcoholic beverages. d. Requiring that a retailer purchase one product in order to purchase another or requiring that one or more products may be purchased only in combinations with other products. 2. The granting of quantity discounts by wholesalers to retailers shall not be considered an unfair trade practice provided that the wholesaler and retailer comply with the provisions of Rule 29. C. Supplier Licensees 1. No supplier shall engage in any trade practice which can reasonably be expected to injure any retailer, importer, or other supplier through discriminatory practices, nor shall any supplier engage in any trade practices which can reasonably be expected to cause, encourage, or induce a consumer to purchase, receive, or consume alcoholic beverages in excessive amounts or at an unduly rapid rate and shall include, but not be limited to, the following: a. Any practice which is not permitted by the Federal Alcohol Administration Act . V. Severability If any part of this rule is held to be unconstitutional or otherwise contrary to law, then it shall be severed and the remaining portions shall remain in full force and effect. VI. Effective Date The effective date of this rule shall be June 1, 1992 RULE NUMBER 2.1 ITEMS AUTHORIZED FOR SALE IN LICENSED RETAIL PACKAGE STORES 1. The following items may be offered for sale in package stores as complementary to the sale of alcoholic beverages: mixers, ice, sodas, cigarettes in packs sealed by the manufacturer, lottery tickets, money orders and pre-packaged "snack" food items which meet the following criteria: 1.1. Sold to consumer in package/container as received by licensee. 1.2. Food items may not be cooked, refrigerated or offered as a loose item, unwrapped or repackaged. 1.3. Dairy items, breads, meats, cheeses and other food items are excluded to the extent of limitations described in criterion 1.2, above. 1.4. The sale of insulated single container covers which serve to keep a beverage at a cool temperature is permitted. The sale of those coolers which are used to hold foods and/or multiple unit containers of packaged liquid products is prohibited. 1.5. Area assigned to display of these items is limited to 20 square feet of floor space, exclusive of display of ice, mixers and sodas. 2. Variance: The holder of a license to sell alcoholic beverages in a package store for off-premises consumption may apply, in writing, to the Commissioner for a variance in any of the requirements of this Rule for good cause shown, provided that such variance does not violate any provisions of the Liquor Control Act. 3. Severability: If any provision of this Rule shall be declared invalid, the remaining portions of the Rule shall remain valid and effective. 4. Effective Date: APPROVED AND EFFECTIVE THIS 20th day of March, 1997 RULE NUMBER 3 A RULE REQUIRING PRIOR APPROVAL BY THE COMMISSIONER OF CHANGES IN OWNERSHIP, OFFICERS, OR DIRECTORS, FINANCIAL INTEREST, OR LEASE As authorized by law, the Commissioner may refuse approval of changes in the ownership, officers or directors, financial interest, or lease in connection with any license. For this purpose, no such change shall be implemented until reported to and approved by the Commissioner in the following manner: A. Changes of ownership (no publication is required) 1. Entire Change: Whenever the entire ownership of a license of a licensee is being changed, the following shall be filed with the Commissioner on behalf of the new owner or owners: a. An application. b. A financial statement of the proposed licensee. c. Personal financial statements of all individuals, partners, or stockholders holding at least 10 percent or more of the corporate stock. d. Notarized statements in the form prepared by the Commissioner, Form (A-2) signed by all individuals who after the change is made, will have an ownership interest directly or otherwise with the criminal record of each. However, if the corporation or club is listed on a stock exchange or traded over the counter, or is the holder of a multiple activity club, the criminal history of individual stockholders, officers or directors shall not be submitted, but instead an affidavit completed by each giving permission to the Commissioner to request the criminal history from the proper police department. e. Copy of the agreement of terms of the sale or other exchange of financial interest, including stock distribution. f. Deposit of $500 application process fee [4 Del. Code, Sec. 544(x)]. g. Minutes of meeting establishing officers and/or directors, copies of stock certificates and/or any other corporate documentary information as the Commissioner deems necessary. h. Certification from the State Tax Division that all obligations regarding the applicant are current. i. Certified copy of certificate of incorporation, if applying as a corporation, or proof of partnership agreement explaining interest and profit/loss distribution. j. Letter of approval from the licensee from whom the license is to be transferred. k. Lease, if the premises is not owned by the applicant; or copy of deed if applicant owns the premises. 1. Floor plan containing elevation, including dimensions of all rooms and seating arrangement of entire premises. 2. Partial Change. Whenever only part of the ownership of a license or licensee is being changed, the following shall be filed with the Commissioner on behalf of the new owner or owners. a. An application. b. A financial statement of the licensee as of the time after the change is made. c. Personal financial statement of the new applicant or partners. d. Notarized statements in the form prepared by the Commissioner (Form A-2) signed by all individuals who, after the change is made, will have an ownership interest, directly or otherwise, including criminal record. e. Copy of the agreement of terms of the sale or other exchange of financial interest, including stock distribution and consideration given. f. If a corporation or club, a statement consenting to the change in ownership signed and sealed by the president and secretary currently approved by the Commissioner. A partnership shall submit copy of change in original agreement. g. Deposit of $500 application process fee [4 Del. Code, Section 554 (x)], but this fee shall not apply to applications for change of officers, directors or stockholders of a corporate licensee if there is no change in the majority of stockholders or majority of directors. B. Change of ownership of corporation or club solely through the sale of shares of stock by stockholders: When a corporation or club is involved and the change of ownership is being made solely through the sale or exchange of the shares of stock by stockholders, the corporation or club and the stockholders need not file sub-paragraphs i through m of paragraph A.1. above except the corporation or club shall file a statement consenting to the change in ownership signed and sealed by the president and secretary currently approved by the Commissioner. C. Changes in officers and directors of a corporation or club when sales of corporate stock are not involved. Persons elected as officers and directors shall each submit to the Commissioner, within thirty (30) days of the election, a notarized statement in the form prepared by the Commissioner (Form A-2), and the corporation or club to which they have been elected shall submit in writing to the Commissioner within seven (7) days after the election the names, resident addresses, and offices held of the new officers and directors. If the Commissioner desires further documentation, the licensee may be required to furnish such other records or statements requested by the Commissioner. Any new officer or director is not qualified to act as such in matters pertaining to the Rules of this Commissioner and the Liquor Control Act until approved by this Commissioner. D. Changes in Financial Interest. No persons shall obtain a financial interest of any kind, other than as owner or stockholder or club member reported pursuant to this rule, in a license or license holder without previously submitting full details to the Commissioner; provided, however, that such requirement shall not be construed to apply to loans made to a licensee or a license holder which do not involve repayment based on the volume of business or a percentage of profits of the licensee or license holder. E. Changes in Lease. No change shall be made in a lease as to the parties, as to any of its terms or conditions, or to create or modify a rental based upon the license holder's volume of business or profits without first being submitted to the Commissioner, except that any change in the amount of rent (when there is no change in the method of computing rent) need not be submitted to the Commissioner. F. Exceptions: 1. The requirements of this Rule shall not apply to corporations or clubs which are listed on a recognized stock exchange or have stock which is traded over-the-counter, unless any such corporation or club changes all of its stock ownership. However, all corporations and clubs which are listed on a recognized stock exchange or have stock which is traded over-the-counter shall be required to submit an A-2 form and affidavit as provided in subsection A.l.d. of this Rule on behalf of the corporate or club officer responsible for the operation of the alcoholic beverage service for which the license was procured. Additionally, a list of all officers and directors must be submitted at each license renewal. 2. If a corporation or club not excluded under F.1. of this section changes any class of its stock ownership by more than 25 percent during the effective year of the license as a result by the acquisition of stock by new persons, then all of the applicable requirements of this Rule shall apply. However, if a corporation or club, not excluded under F.1. of this paragraph, changes any class of stock ownership by 25 percent or less during the effective year of the license as a result of the acquisition of stock by new persons, the only requirements are notification of the stock change, which shall be reported by the corporation or club in writing to the Commissioner within seven (7) days after such stock transfer together with a copy of the terms of the sale or other exchange of financial interest, including stock distribution and consideration given, and submission within thirty (30) days thereafter by each new stockholder of the notarized statement in the form prepared by the Commissioner (Form A-2) and copies of the stock certificates. 3. If one or more stockholders of a corporation or club, not excluded under F.1. of this section, transfers himself of all or any part of his stock ownership back to the corporation or to any of the other Commissioner approved stockholders, the corporation or club shall notify the Commissioner of the stock change within seven (7) days and shall submit a copy of the terms of the agreement of sale or transfer including stock distribution and consideration given along with copies of stock certificates. 4. The requirements of this Rule shall not apply to holders of multiple activity club licenses. However, all multiple activity clubs shall be required to submit an A-2 form and accompanying affidavit as provided in. subsection A.l.d. of the Rule on behalf of the club officer responsible for the operation of the alcoholic beverage service for which the license was procured. Additionally, a list of all officers and directors must be submitted at each license renewal. 5. If the license is held by tenants by the entirety and one spouse dies, the surviving spouse need not comply with the above provision of A.2. of this Rule but shall make request to the Commissioner for change in the license for its issuance to the survivor and at that time submit a death certificate. G. Arrests and/or Convictions. Any arrest and/or conviction of an approved licensee, member of a club, officer, director or stockholder must be submitted to the Commissioner within seven (7) days indicating the date, charge and disposition. H. Commissioner Approval or Disapproval. The Commissioner may disapprove for cause as defined, but not limited to 4 Del. Code, Sec. 543 (a) through (f) any new individuals, officers, directors, partners, stockholders, leases, or debts in connection with a license. All submissions made to the Commissioner in compliance with this Rule shall be approved or disapproved in writing mailed to the license holder or applicant making the submission within sixty (60) days after they are received by the Commissioner. I. Severability. If any provision of this rule shall be declared invalid, the remaining portions of the Rule shall remain valid and effective. J. Effective Date: Approved and effective on December 18, 1996 RULE NUMBER 4 A RULE REQUIRING CERTAIN INFORMATION BY PERSONS DESIRING TO MAKE APPLICATION FOR A LICENSE TO SELL ALCOHOLIC LIQUOR Any person proposing to make application for a license to sell alcoholic liquor shall first obtain from and submit to the Commissioner a form requesting such permission together with a certification from the appropriate governmental authorities that the location and building for which a license will be applied conforms with zoning ordinances allowing the sale of alcoholic liquor and with building ordinances. Any person proposing to make application to sell alcoholic liquor in a package store located in a 15-acre shopping center must in addition to the above submission file a certified copy of an up-to-date plot plan prepared by a professional land surveyor substantiating the size of the shopping center. The plot plan must be filed with the Commissioner within 90 days of its preparation. Upon receipt of these documents, the applicant will be furnished appropriate application forms along with advertising and instructions for their completion and submission to the Commissioner. EFFECTIVE DATE: This rule shall be effective May 1, 1985. RULE NUMBER 5 A RULE SHOWING THE METHOD TO BE FOLLOWED IN THE PURCHASEOF WINE FOR SACRAMENTAL PURPOSES REPEALED EFFECTIVE: May 1, 1986 RULE NUMBER 6 A RULE TO GOVERN THE MANUFACTURE AND STORAGE OF WINE MADE BY AN INDIVIDUAL FOR CONSUMPTION IN HIS OWN HOME. REPEALED EFFECTIVE: October 4, 1973 RULE NUMBER 7 A RULE REQUIRING PERSONS BETWEEN THE AGES OF 16 AND 18 TO SECURE A WORK PERMIT TO BE EMPLOYED BY AN ON-PREMISES LICENSEE A. No licensee shall employ, or allow to be employed on its licensed premises a person under the age of twenty-one, except that a hotel, restaurant, club or boat with authorized dining facilities, race track licensee, dinner theater, caterer, or bowling alley, may employ a person under the age of nineteen who has been issued a valid work permit under this rule or is employed in a capacity unrelated to the selling, serving, dispensing or handling of alcoholic liquor without a permit from the Commissioner, and that the on-premises as listed above may employ a person nineteen years of age or older to serve alcoholic liquors to its patrons without a permit from the Commissioner. A person employed, or allowed to work in a kitchen, dining room, or any room where alcoholic liquor is sold, served, dispensed, or consumed, is employed in a capacity related to the handling of alcoholic liquor. The permit shall be available on the premises of the licensee for inspection at all times during the employment of the minor. B. Any person between the ages of sixteen and eighteen, unless except excepted by the above provisions of this Rule, who desires to be employed or allowed to be employed on a licensed premises, by a licensee, in any capacity on a regular, part time, or engagement basis, with or without compensation must first apply and, obtain a work permit from this Commissioner. Persons sixteen and seventeen years of age must first meet the requirements of the Department of Labor and Industrial Relations, and present eligibility slips and approval of the Department of Labor (these permits are obtained from the school attended, district wherein. the person resides or the Department of Labor). The Commissioner may consider, among other factors, the following: 1. The applicantТs character and maturity. 2. The applicant's prior police record. No permit shall be issued to a person who has been convicted of any felony, sex offense, drug offense, or law concerning alcoholic beverages, since attaining the age of sixteen, and shall be revoked upon such conviction. C. Such permit shall be revoked for cause at any time; if unrevoked, it shall remain valid until the person becomes nineteen. D. These permits issued to persons between the ages of sixteen and eighteen are for employment in on-licensed premises as listed in paragraph A, but will not permit such persons to be involve in the sale or service of alcoholic beverages. They may not solicit or take orders, serve or prepare alcoholic beverages. Said licenses will expire upon attaining the age of nineteen. On-Premises establishments as listed in Paragraph A may employ persons nineteen years of age or older without any permit from the Commissioner for purposes of soliciting and taking orders for, and serving alcoholic beverages, but said person shall not be permitted to engage in the preparation of alcoholic liquor. E. Those persons sixteen and seventeen, if desirous of employment at more than one place of employ, must present Department of Labor school permit for each Alcoholic Beverage Control Commissioner permit issued. Such employees must have as many Department of Labor and Commissioner permits as places of employment. The signature of licensee hiring is necessary on each application, which also must be signed by parent, guardian, or, at the discretion of the Commissioner, other reputable person. Permits become void upon termination of employment at place for which permit was issued. F. For those persons eighteen, unless excepted by the above provisions of this rule, after the first permit, the Commissioner will only require the signature of licensee where person is to be employed. G. It is the licensee's responsibility to verify that the permit is a valid one. Failure to do so could result in suspension of the license or fine. H. All permits will be issued only upon receipt by the Commissioner of an application in the form required by the Commissioner, including an affidavit in the following form executed by the person seeking the permit: STATE OF ) )SS COUNTY OF ) I have been duly sworn, do depose and say that: 1. I acknowledge that I have read the requirements of the Delaware Alcoholic Beverage Control Commissioner, stated below, and that I will not violate such requirements. 2. I am years of age, having been born on at Birthdate BirthplaceSocia1 Security Number 3. I have been convicted of the following offenses: If yes, explain 4. I will advise the Commissioner within two days if I am convicted of any other offense. Sworn to and subscribed before me this day of , 20 . Signature of Applicant I. The CommissionerТs work permit is to be obtained by employee and given to employer at time of commencing work, who shall keep it as long as employee remains working at this establishment after which the permit is to be surrendered to the Delaware Alcoholic Beverage Control Commissioner by the employer. In the event employee secures work at another establishment, a new permit shall be applied for and secured from the Delaware Alcoholic Beverage Control Commissioner. J. Employees under the age of nineteen years shall not receive orders for, serve alcoholic liquors, or be involved in the sale of alcoholic liquors in any way. This prohibition shall not apply to persons nineteen years of age or older who are employed in an on-premises as listed in A. K. Employees, not of the legal drinking age, shall not work in any capacity behind a counter at which alcoholic liquors are located, may not mix alcoholic beverage drinks or draw beer from its dispenser. L. Effective Date. The effective date of this rule shall be on July 1, 1984 RULE NUMBER 7.1 EMPLOYMENT OF MINORS IN STORES a. Purpose and Scope. This rule implements the provisions of 4 Del. C. з904(m). b. Statute. Section 904(m), Title 4, Delaware Code, provides: (m) Nothing in this Section shall prevent the employment in a store by a retailer of anyone who has reached the age of 18 years, under such conditions as the Commissioner may by rule prescribe; provided, however, that no such minor shall sell or serve alcoholic liquor. c. Definitions. (1) "Retailer" means the person permitted to sell alcoholic liquors in a store in the State, not for consumption on the premises. 4 Del. C. 4 з101(27) (1978 Suppl.]. A natural person who is a sole proprietor, general partner, or owner of 25 percent or more of the issued and outstanding stock of a package store shall be considered as a "person" within the meaning of з101(27), for purposes of this Rule. (2) The term "sell or serve alcoholic liquors" means acting in any manner toward a consumer which encourages, induces, or fosters the sale of any goods, whether or not they contain alcoholic liquor. The term includes, but is not limited to, advising consumers on the selection of goods, delivery of goods to consumers before payment, and ringing up sales. The term does not include stocking shelves, affixing price labels, and other acts not requiring direct contact with consumers, nor does it include assisting consumers in carrying parcels from the store. A minor shall not at any time be permitted unaccompanied access to the premises. (3) The term "store" means an establishment licensed by the Commissioner only for the sale of alcoholic liquors for consumption off of the premises where sold. d. Permits Required; Standards. (1) No retailer shall employ a person under the age of 21 in their store unless the person under 21 shall first have been approved by the Commissioner and received a permit to work in the store. (2) The permit required by subparagraph (1) shall be issued upon application showing that: (a) The applicant is 18 years of age or older; (b) The applicant is a mature and responsible person; and. (c) The applicant has sot been the subject of any judicial or administrative proceedings by any federal, state or local governmental agency involving: (1) Violations of laws or regulations respecting controlled substances; (2) Violations of laws or regulations respecting alcoholic liquors; or (3) Violations of criminal statutes carrying a penalty of incarceration of more than 1 year, whether or not a sentence of imprisonment was actually imposed. (3) Permits shall continue in full force and effect until the holder attains the age of 21 years, unless sooner revoked. e. Application for Permit; Contents; Procedure. (1) Any person who has reached the age of 18 years may apply to the Commissioner for a permit to work in a store. (2) The application shall state: (a) The name, address, telephone number, Social Security number and date of birth of the applicant; (b) The name, address and telephone number of the applicant's parents; (c) The name and address of the store where the applicant will be employed; (d) The name and address of the high school most recently attended by the applicant; (e) Any and all arrest and criminal or juvenile charges against the applicant, and their disposition, and all school disciplinary actions involving the applicant; (f) The names, addresses and telephone numbers of 3 character references, who shall not be related to the applicant. (3) The application shall be signed by the applicant, at least one parent, and an approved owner of the store. f. Approval of Application. The Deputy Commissioner may approve or disapprove applications. An applicant may appeal disapproval to the Commissioner. g. Violations. A violation of this rule shall, in addition to any other penalty provided by the Liquor Control Act or these Rules, be punished by revocation of the applicant's permit, and such permit holder shall not be permitted to be employed thereafter under the provisions of this Rule or Rule 7. h. Effective Date. This Rule shall be effective August 30, 1981 RULE NUMBER 8 A RULE GOVERNING TAXES PAID ON WINE, CIDER, SPIRITS, AND BEER ENTERING THE STATE OF DELAWARE I. PURPOSE AND SCOPE: A. To have a uniform and accountable information system from Delaware importers and out-of-state suppliers in regard to wine, spirits, and beer. B. To include Bond Alcohol in with the reporting and tax payment procedures for all wine, cider, spirits, and beer. C. To clarify the procedure for Delaware Importers to report and take tax credits for transfers, returns, breakage and sales to federal instrumentalities. D. To clarify the procedure for bringing alcoholic liquor into the state of Delaware other than through regularly licensed importers. II. DEFINITIONS: A. PURCHASES: Means when the merchandise has been unloaded on the premises of the licensee and receipt acknowledged by signing the waybill. B. PORT OF ENTRY: Means the initial place, airport, UPS terminal, or supply point for final distribution and delivery to the individual's home within Delaware. C. IMPORTER: Means wholesaler. D. COMMISSIONER: Means the Delaware Alcoholic Beverage Control Commissioner or Designee, the Division of Revenue. E. WINE, CIDER, SPIRITS, BEER: Means all alcoholic liquor to include bond alcohol as well as non-bond alcohol. III. REPORTING PROCEDURES FOR THE SHIPMENT OF WINE, CIDER, SPIRITS, AND BEER INTO THE STATE OF DELAWARE: A. Licensed Importers: 1. Each licensed importer, when placing an order with a supplier, shall mail or electronically transmit directly to the supplier a true copy of the numbered purchase order showing the quantity, variety and size of container for each alcoholic liquor ordered. These purchase orders are to be provided on demand when requested by the Commissioner. 2. Each licensed importer, shall record for the Commissioner by the close of business on the last calendar day of the month all purchases of wines, cider, spirits, and beer. This report shall show the importer purchase order number, supplier invoice number, amount of cases, exact gallonage for wine, cider, and spirits, and exact barrelage for beer. Each page shall be sub-totaled, except the last page, which shall show a grand total. This report shall be submitted to the Commissioner by the last business day following the last calendar day of the reporting month, except for the month of May. The May report will be due by the 15th of June. 3. If there is a variance between the supplier sales report in B-1 below and the importer purchases report in III-A-2 above, a full explanation will be required from both the supplier and the importer and a fine can be imposed on that supplier and/or importer. B. Licensed out-of-state suppliers: 1. Each licensed supplier shall record for the Commissioner by the close of business on the last calendar day of each month all shipments of wine, cider, spirits, and beer into Delaware. This report shall be submitted to the Commissioner by the fifteenth day following the last calendar day of the reporting month. This report shall show the supplier invoice number, the importer purchase order number, date shipment was made or sent, number of cases and/or barrels and total amount in gallons or in barrelage, or both. This report shall have attached any credit invoices and/or memos issued for returns or transfers relating to the Delaware importer for that month. This information must be in the same form as stated above in this paragraph. A fine can be imposed on that supplier for failure to send any credit invoices and/or memos. If there were not any shipments made to Delaware, then the report must state "NO SHIPMENTS FOR THE MONTH OF". If the supplier does not send the monthly report, a fine can be imposed by the Commissioner on that supplier. If the purchase order number does not appear on the report or correspond with the importer purchase order number, then a fine can be imposed on that supplier and/or the importer. 2. Although it is not required that sales invoices be sent with the supplier's monthly report, sales invoices are to be provided on demand when requested by the Commissioner. IV. PROCEDURES FOR TAX PAYMENTS AND TAX CREDITS: A . Tax Payments Due From Importers: 1. Tax due the state of Delaware on the purchases reported in Paragraph III-A-2 above, shall be verified, computed, and paid by cash, money order, or check by the last business day of the calendar month in which it is required to be reported except for the month of May. The May tax payment must be paid by the fifteenth day of June, and if the date falls on a Saturday or Sunday, the next business day of the calendar month. 2. Any beer, spirits, wines or cider on which the Delaware tax has not been paid in accordance with this rule shall be seized by the Commissioner. B. Tax Credits: Tax credits for transfers, returns, breakage, and sales to federal instrumentalities must be taken in the month that they occur. Claims for tax credits must be presented to the Commissioner on "DELAWARE IMPORTERS TAX CREDIT REPORT", and must include copies of invoices or other documentation verifying each claimed credit. These reports must be filed with the "CERTIFIED STATEMENT OF WINES, CIDER, SPIRITS, AND BEER PURCHASES REPORT" due on the last business day following the last calendar day of the reporting month. No pre-approval is required in order to take a credit against taxes due, provided that the importer fully complies with the above reporting requirements and stipulations set forth below: 1. Transfers and Returns: The Delaware importer will list each transfer/return on the monthly Tax Credit Report and attach an invoice showing the brand, size, type and the amount of alcoholic liquor shipped in gallons or barrelage. 2. Breakage: Tax credit on breakage requires a verification memorandum from the importer to the common carrier, which must be submitted with the monthly Tax Credit Report. No credit will be allowed on less than full case lots; and, should continuous breakage occur, a penalty equal to 150 percent of the importers cost shall be levied against the supplier. No tax credit shall be allowed for post delivery breakage. 3. Sales of Beer to Federal Instrumentalities: The Delaware importer will list all sales of beer to an instrumentality of the Armed Forces of the United States on the monthly Tax Credit Report. Copies of invoices must be attached showing the brand, size, type and the amount in gallons or barrelage of beer shipped. All tax credits are subject to verification by the Commissioner, and will be disallowed if the proper documentation is not submitted with the monthly "DELAWARE IMPORTERS TAX CREDIT REPORT". V. AN INDIVIDUAL BRINGING ALCOHOLIC BEVERAGES INTO DELAWARE: Any individual wishing to bring into the state of Delaware alcoholic liquor which is not available through regularly licensed importers must: A. Notify and receive approval from the Commissioner a letter of intent, and identifying the "Port of Entry", date of arrival and cost. B. Ship by common carrier to a "Port of Entry". The common carrier must have a bill of lading with type of items, size, brands and amounts on it. C. Notify the Commissioner that the shipment of alcoholic liquor has arrived and have an agent from the Alcoholic Beverage Control Commissioner inspect, validate, and approve said merchandise. D. Pay the Delaware state tax and 25% enforcement fee which will be computed on the value of the alcoholic liquor. After making payment, the consignee will receive two copies of the realized purchase order. VI. EXCEPTIONS: A. This rule shall parallel federal regulations in that U.S. citizens are allowed to bring into the state of Delaware up to one liter per day of alcoholic liquor, days not cumulative. B. Any adult non-resident who is in transit and shall stay not more than 72 hours in Delaware is allowed to have tax free four liters of alcoholic liquor. C. Any adult non-resident who shall stay longer than 72 hours in the state of Delaware is allowed to bring in up to one liter of alcoholic liquor. D. Diplomatic, consular, and other privileged personnel have the privilege of importing alcoholic liquor free of tax. VII. A GUIDELINE FOR METRIC GALLONAGE CONVERSION TABLES: A. To ensure that all liquor excise taxes are determined in a uniform manner, the use of a standard conversion table for commonly used container sizes of spirits and wines based upon the conversion factors used by the U.S. Department of Treasury is to be used. B. The official factor for spirits is one liter = .26417 gallons. C. The Delaware tax in 4 Del. C., з581, for beer provides a per barrel (31 U.S. gallons) tax computation. VIII. EFFECTIVE DATE: The effective date of this rule shall be February 1, 1997 RULE NUMBER 8.1 A RULE GOVERNING THE SHIPMENT AND STORAGEOF ALCOHOLIC LIQUORS BY SUPPLIERS AND WHOLESALERS I. History This rule was enacted in its original form on September 1, 1983, and established guidelines for the importation, delivery, and interstate shipment of alcoholic liquor by licensed importers. Prior to 1983, the content of this rule had been part of Rule 8, enacted by the Commissioner on February 1, 1960. On February 1, 1990, the Commissioner amended Rule 8.1 by removing the restriction on the use of separate business entities, owned by one or more licensed importers, to store and transport alcoholic liquor for licensed importers. Since November 1965, the hours during which importers can deliver alcoholic liquor have been governed by Rule 10. In order to consolidate the rules regulating importers, the provisions of Rule 10 have been merged into the current revision of Rule 8.1, thereby allowing the Commissioner to repeal the present Rule 10 dated February 2, 1967. II. Purpose This amended rule is promulgated, in part, pursuant to the Commissioner's authority to regulate time, place, and manner in which alcoholic liquor is sold or dispensed, and provides regulations for the marking of vehicles used by licensed importers for the transportation of alcoholic liquor. It also establishes standards for the distribution of alcoholic liquor by importers to establishments licensed by the Commissioner for the sale of alcoholic liquor. 4 Del. C., Section 304 (A)(1)(2) In addition, the Commissioner has found, pursuant to its authority, to promulgate rules and regulations necessary for the enforcement and furtherance of the objectives of 4 Del. C., Section 501, that all alcoholic liquor imported into this state must be unloaded and physically stored for a reasonable period of time to allow for enforcement of the regulatory provisions of the Liquor Control Act and Commissioner Rules. 4 Del. C., Section 501(e). This rule, therefore, implements and clarifies 4 Del. C., Section 501 (f) as to what period of time alcoholic liquors must be physically stored after it is unloaded in order to comply with 4 Del. C., Section 501 (f) and all other provisions of Title 4, the Liquor Control Act, and the Commissioner Rules and Regulations promulgated thereto. Specifically, the Commissioner has found that seventy-two (72) hours is a reasonable "at-rest" period of time to enable the Commissioner to carry out its statutory duties to inspect and inventory licensed Delaware warehouses pursuant to 4 Del. C., Section 304 (A) (2) (3) and (5) and 4 Del. C., Section 581(c), which the Commissioner has found to be in furtherance of the objectives for 4 Del. C., Section 501 (f). III. Definitions: As Used in this Rule A. "Supplier" may be a brewery, winery, distiller, alcoholic beverage importer, or alcoholic beverage broker that sells alcoholic beverages to importers of the State of Delaware. A supplier's organization may be located within or without the State of Delaware. B. "Importer" shall mean wholesaler and shall be located within the State of Delaware. C. "Establishment" means any place located physically in this state where alcoholic liquor of one or more varieties is stored, sold, or used by authority of any law of this state, or where alcoholic liquor of one or more varieties is manufactured by virtue of any law of this state. IV. Procedures A. Importer's vehicles, in which alcoholic beverages are shipped into and throughout Delaware, shall have painted on both of their sides the name of the importer and the words "Delaware Alcoholic Beverage Control Commissioner - License Number ........." (Insert the importer's license number) in letters at least two inches high, uncovered, and clearly visible. B. When shipments for one or more importers are made in vehicles other than those owned by an importer licensed by the Commissioner, then both sides of the vehicle used for conveyance of alcoholic beverages to or from the importer's warehouse, shall have a sign attached bearing the words, "Delaware Alcoholic Beverage Control Commissioner License Number .........." (Insert the license number of each importer shipping goods on such vehicle) in letters at least two inches high, uncovered, and clearly visible. C. Vehicles owned by suppliers in which alcoholic beverages are shipped into Delaware, need not have the name of the Commissioner or the Delaware licensed importer's license number affixed to the side of the vehicle. D. Vehicles owned by all suppliers shall not be used for delivery of alcoholic beverages to retailers in the State of Delaware, except it shall not be unlawful for importers to have suppliers' trucks if: 1. The importer gives evidence of such hiring to the Commissioner. 2. Delivery shall be made under the supervision of an employee of the importer, who shall accompany the vehicle and be responsible for the delivery complying with the law and regulations of the Commissioner. Such vehicle shall have the proper signs affixed thereto. E. No peddling shall be allowed. Definite orders for all alcoholic beverages shipped from an importer's warehouse shall have been received from customers before the loaded vehicles leave the warehouse. F. No alcoholic beverages in excess of that ordered shall be carried on the vehicles. G. A statement showing the destination of each package of alcoholic beverages shall be furnished the driver and carried by him over the route. H. Upon the driver's return to the warehouse, he shall sign the statement showing the alcoholic beverages have been delivered to the destination listed. This statement shall be available for inspection by the Commissioner at all times. V. Importers' Warehouses A. Importers may have one or more warehouses in different locations within the State of Delaware provided proper application for such extra warehouse(s) is filed and approved by the Commissioner. B. The person in charge of an importer's warehouse must be approved by the Commissioner. C. All importers' warehouses used for the storage of alcoholic liquor, except public cold storage establishments, must be either owned or rented directly by the importer or a business entity in which the importer maintains complete ownership or shares ownership with another licensed importer. The person in charge of the importer's warehouse is to be upon the regular salary list or payroll of such importer. The importer is responsible for ensuring compliance with the Liquor Control Act and Commissioner Rules at all premises licensed in its name by the Commissioner. VI. Hours of Delivery A. Delivery trucks and other vehicles of an importer, licensed by the Commissioner for the delivery of alcoholic liquor to licensed retail establishments, may leave the warehouse after seven o'clock in the morning on any day when deliveries of alcoholic liquors are permitted; provided, however, that no actual delivery of beer, spirits, or wine to any licensed establishment is permitted before nine o'clock in the morning. B. Delivery trucks or other vehicles may operate as late as necessary to properly deliver orders; provided the trucks or other vehicles leave the warehouse prior to five-thirty o'clock in the afternoon, other than during the period from December 10 to December 31 when the trucks or other vehicles shall be permitted to leave the warehouse prior to eight o'clock in the evening. C. There shall be no delivery of beer, spirits, or wine on any holiday specified in Title 4, Del., _C., Chapter 7, Section 709 (e). D. Deliveries of alcoholic liquor by importers, or their authorized representatives, to retail establishments, at any time not permitted by this rule is prohibited. VII. The "At-Rest Requirement" [4 Del. C., Section 501(d)] A. A licensed Delaware importer shall not import alcoholic liquor into the State of Delaware unless said alcoholic liquor is delivered directly from a Delaware licensed supplier by either the supplier, the importer, or common carrier to a licensed Delaware warehouse or warehouses. B. Said licensed Delaware warehouse or warehouses must be owned, leased, or operated in accordance with Section V. (C) of this rule. C. All alcoholic liquor delivered to said warehouse or warehouses must be unloaded and physically stored for a period of at least seventy-two (72) hours. D. The minimum period of seventy-two (72) hours "at rest" is required to enable the Commissioner, or its enforcement officers or agents, to inspect and inventory wholesale warehouses for the purpose of verifying taxes that are required to be paid on alcoholic liquor purchased by importers, pursuant to 4 Del. C., Section 581(a) and Delaware Alcoholic Beverage Control Commissioner Rule 8. E. Variances of the seventy-two (72) hour storage requirement may be granted for good cause if formally made in writing and submitted to the Executive Secretary of the Commissioner. The Commissioner may then ratify the Executive Secretary's grant of said variance at the next regularly scheduled Commissioner meeting. VIII. Inspections and Inventories Pursuant to 4 Del. C., Section 304 (A) (2) and (5) and 4 Del. C., Section 581 (c), the Commissioner, its enforcement officers and agents may inspect the establishment of any licensed Delaware importer and inventory any or all alcoholic liquor in the importer's possession at any time the Commissioner deems reasonable and necessary to carry out its statutory duties to verify the reporting and collection of taxes payable to the State of Delaware. IX. Interstate Shipments A. Every person in charge of transportation by motor vehicle, by railroad, by water vessel, by common carrier, or by any other vehicle that transports alcoholic beverages in or through the State of Delaware in an interstate shipment shall have a way bill. The carrier must have in his possession the way bill and be prepared to present it when asked. B. The way-bill shall embody these written or printed terms: 1. The date of its issue. 2. The name and address of the consignor. 3. The name and address of the consignee. 4. A statement as to whether the goods will be delivered to a specified person or to the order of a specified person. 5. A description of the package, stating the number and contents. 6. The signature of the carrier or his duly authorized agent. X. Severability. If any provision of this Rule shall be declared invalid, the remaining portions of this Rule shall remain valid and effective. XI. Effective Date This Rule shall be effective on May 1, 1991 RULE NUMBER 9 RULE REGARDING THE PAYMENT OF TAX No person shall purchase, receive, transport or keep in his possession any alcohol, spirits, wine or beer unless the tax shall have been paid as provided by Delaware laws and Rule No, 8. Effective: February 1, 1960 RULE NUMBER 10 HOURS DURING WHICH IMPORTERS AND MANUFACTURERS MAY DELIVER ALCOHOLIC LIQUOR IN THE STATE OF DELAWARE R E P E A L E D Effective: May 1, 1991 NOTE: Incorporated into Rule 8.1 RULE NUMBER 11 A RULE PROVIDING SPECIFICATIONS FOR STORES AND OFF-PREMISES Before issuance of a license or renewal of license to sell alcoholic liquors in a store, the premises must be approved as to conditions by the Commissioner through an inspection by the Enforcement Division or other employees of the Commissioner staff. 1. All parts of the premises must be kept clean. Cellars, basements and yards must be neat and free of rubbish. 2. If other parts of a building in which a store is located are occupied as living quarters, there shall be no doors communicating with the store unless authorized in writing by the Commissioner. 3. All parts of the rooms where alcoholic liquor is sold shall be visible from the street unless a variance is granted by the Commissioner in writing. 4. An accurate clock shall be installed in the store. The dial and numbers thereon shall be of such as to be plainly visible to everyone in the store and properly located with sufficient illumination to accomplish the purpose of keeping all customers and employees informed as to the correct time. 5. Alcoholic liquors must be neatly arranged and properly marked as to price. 6. Adequate secure storage must be provided for stock. Empty containers shall not be stored outside the licensed premises during closed hours. 7. Internal passages of shopping centers available to the public shall be deemed to be streets within the meaning of this rule. 8. The standard hours of operation must be 9:00 A.M. to 1:00 A.M. unless a variance is granted by the Commissioner in writing. 9. The approved hours and days of operation must be posted in a conspicuous place in order that all customers may be properly informed. 10. An up-to-date copy of the rules of the Commissioner and Liquor Control Act must be on the premises at all times. 11. A decal, purchased through the Commissioner, stating the legal drinking age in the state must be conspicuously displayed at each entrance to the premises. The term conspicuous, for the purpose of this rule, means that advertisements and all other postings of any type (with the exception of the warning to pregnant woman of the risk of birth defects form the consumption of alcoholic beverages, Rule 11 paragraph 12, and posting of the hours of business Rule 11, paragraph 9) may not be displaced within two feet of the decal stating the legal drinking age. 12. A decal, purchased through the Commissioner, warning pregnant women of the risk of birth defects from the consumption of alcoholic beverages must be conspicuously- displayed at each entrance to the premises. The term conspicuous, for the purpose of this rule, means that advertisements and all other posting of any type (with the exception of the legal drinking age notice, Rule 11 paragraph11, and the posting of business hours, Rule 11, paragraph 9) may not to displayed within two feet of the decal warning pregnant women of the risk of birth defects from the consumption of alcoholic beverages. 13 The effective date of this Rule shall be January 1 , 1990 RULE NUMBER 11.1 SPIRITS, WINE, AND BEER TASTINGS 1. Authority This Rule implements the grant of authority to the Commissioner contained in 4 Del. C., зз 525 and 554(ee), to issue licenses and collect licensing fees with respect to spirits, wine, and beer tasting. 2. Applicability The Commissioner may grant a spirits, wine, and beer tasting license to any person holding a retailer license as defined by 4 Del. C., з101(34) for a biennial fee of $100. 3. Application Process 3.1. Retailer licensees may apply in writing to the Commissioner for a license to conduct spirits, wine, and beer tasting on their licensed premises. 3.2. Two copies of the establishment's floor plan must accompany the licensee's letter of request. The floor plans must clearly indicate the area to be used for tasting events and shall be submitted on size 8 1/2 x 11 inch paper. 4. License Restrictions 4.1. Pursuant to 4 Del., C., з525, spirits, wine, and beer tasting licenses may only be granted to the holder of retailer's license. 4.2. No licensee shall conduct spirits, wine, and beer tastings without a license from the Commissioner. 4.3. Spirits, wine, and beer tasting may only take place in a separate portion of a licensee's premises approved by the Commissioner where alcoholic beverages are not sold. 4.3.1. The separate portion of the premises shall be an area designated by the Commissioner for spirits, wine, and beer tasting. 4.4. No licensee may charge for the alcoholic beverages offered for tasting or for the services involved. 4.5. The quantity of any individual spirit, wine, and beer sampled shall not exceed one (1) ounce per person for wine and beer or one-half (1/2) ounce per person for spirits. 4.6. Spirits offered for tasting must be 80 proof or less and beer must be a new product-line in the marketplace less than 1 year. 5. Any licensee who violates the provisions of this rule shall be subject to the sanctions and penalties as provided by the Liquor Control Act and Rules of the Commissioner. 6. Severability If any provision of this rule is declared invalid the remaining portions of the rule shall remain valid and effective. 7. Effective Date: APPROVED AND EFFECTIVE This 20TH day of March, 1997 RULE NUMBER 12 STATE OF EMERGENCY Whenever, pursuant to the Constitution and laws of the State of Delaware, the Governor or Acting Governor of this State shall declare a state of emergency, call out the organized militia or any portion or individual thereof to execute or insure obedience to law, or declare a state of martial law, in this State, or any section thereof, all licensees licensed under the Liquor Control Act of the State of Delaware and the Rules of this Commissioner, shall upon notice from the Commissioner, announced publicly or delivered personally, be required to suspend further business under the licenses issued by the Commissioner until such time as the Commissioner shall determine and so inform said licensees that the proclamation of emergency or crisis as issued by the Governor or Acting Governor has been terminated, provided that the Commissioner shall specify the geographical limit in this State or any section thereof within which area said licensee shall be suspended. EFFECTIVE: August 20, 1970 RULE NUMBER 13 LABELING, STANDARDS OF IDENTITY AND STANDARDS OF FILL OF ALCOHOLIC LIQUORS a. Purpose and Scope. This rule is intended to reduce obstacles to commerce in alcoholic liquors by adopting, to the extent possible under the Liquor Control Act, 4 Del. Code, federal laws and regulations relating to labeling, standards of identity, and standards of fill of alcoholic liquors. This rule applies to all alcoholic liquors manufactured, bottled, packaged, sold, imported, received, and stored for resale in the State of Delaware. b. Labeling. It shall be unlawful for any person to manufacture, bottle, package, sell, import, receive, or store for resale in this State alcoholic liquors, unless such liquors are labeled in conformity with federal laws and regulations applicable to such alcoholic liquors. It shall not be necessary for a manufacturer or supplier to file with the Commissioner evidence of label approval by an agency of the United States, except upon written request by the Commissioner. c. Standards of Identity. It shall be unlawful for any person to manufacture, bottle, package, sell, import, receive, or store for resale in this State alcoholic liquors, unless such liquors conform to the standards of identity provided by federal laws and regulations applicable to such alcoholic liquors. d. Standards of Fill. (1) It shall be unlawful for any person to manufacture, bottle, package, sell, import, receive, or possess for resale in this State alcoholic liquors, unless such liquors are bottled and packed in primary containers and cartons or cases of primary containers in conformity with federal laws and regulations applicable to such alcoholic liquors. (2) Beer and malt beverages not required by federal law to be in metric primary containers may be manufactured, bottled, packaged, sold, imported, received, and stored for resale in any size primary container usual and customary to the brewing industry. e. Effective date; Repeal of Former Rule. This rule is effective on March 27, 1982. Rule 13, effective February 2, 1967, is repealed. Approved: February 25, 1982 RULE NUMBER 14 A RULE GOVERNING ALCOHOLIC LIQUORS RETURNED TO THE MANUFACTURER BY THE IMPORTER Spirits and wine upon which a tax has already been paid and beer which has been delivered to the importer and which are in the stock of a retail dealer or of an importer, may be returned to the manufacturer of the merchandise in question, through the importer who originally brought the merchandise into the state. The tax paid upon or recorded on this will be credited to the account of the importer if the provisions hereinafter noted are complied with. The merchandise so returned must be replaced at the time of its return by goods of the same brand, from the same manufacturer, and in the same size containers as the merchandise that is being returned, unless the same brand and same size containers are no longer stocked by the importer. In such instance, the merchandise may be returned by the importer placing with the request for return an order to the same manufacturer covering at least equal gallonage for what is being returned. The importer desiring to make such replacement shall notify the Commissioner explaining in detail what he desires to do and an inspector of the Commissioner will arrange with him to supervise the replacement. Upon the certification of the inspector that the old merchandise has been shipped to the manufacturer and the replacement has been made, a credit of the tax on the returned goods will be applied to the account of the importer and he in turn will make such adjustment between himself and the retailers as may seem proper to them. Replacements will necessarily be subject to the same tax as is ordinarily collected. Effective: February 1, 1960 RULE NUMBER 15 A RULE TO REGULATE THE USE OF SAMPLES FOR TASTING AND SAMPLES NOT FOR TASTING A. Samples for Tasting 1. Whenever it is necessary or desirable to procure samples of alcoholic liquor for tasting purposes prior to the issuance of an order for the goods, an importer may do so by sending a letter to the Commissioner in triplicate, stating what he desires to procure, the total quantity and the size of the separate samples. This notification should consist of an original and two carbons. The original will be retained in the office of the Commissioner, one of the carbons returned to the importer approved, and the other carbon will be used by the inspector in clearing the shipment. 2. The shipments approved should have the proper sticker attached to them and upon arrival in Delaware, will be marked "Tax Free" and cleared, by, the Commissioner's inspector. The tax free sample must not be greater in quantity than one case (3 gal.) of spirits or three cases (3 gal.) of wine or ten (2.25 gal.) of beer, in immediate containers of 6 oz. or larger capacity. The goods may be all of one kind and size or assorted, and must be an introductory shipment of kind not previously and commonly merchandised in Delaware. 3. Whenever it is desirable for an importer to use samples in introducing a brand of alcoholic liquor to the retail trade, such samples may not be used after the expiration of 30 days from the date on which such brand was first offered for sale in the State of Delaware, except when a brand would change from a blend to a straight, or vice versa. When a change takes place as described in the above exception, sampling may, take place for a period of 30 days after the changed product has been offered for sale in this State. 4. Each sample shall have distinctly printed or stamped across the label thereof or on a sticker permanently affixed to the container adjacent to the label the following legend: "SAMPLE FOR TASTING -- NOT FOF RESALE" in black letters at least one-half inch in height on a white or light yellow background. 5. All seals on such bottles must be broken prior to bottle leaving importer's warehouse, provided, however, that this shall not require the breaking of seals upon or the puncturing or opening of container of beer before these are taken from such warehouse. No bottle or partial bottle is to be left with any retail licensee, his employee, or any individual, and must remain in the possession of the representative of the manufacturer or importer; provided, however, in regards to beer a single bottle or can thereof containing not more than 12 fluid ounces may be left with a licensee. 6. Paragraphs 4 and 5 above shall apply to all samples, regardless of whether or not tax has been paid. . B. Samples Not For Tasting 1. Whenever it is desirable for an importer to show to retail licensees the type of packaging or the type of containers of alcoholic liquors being offered for sale by the importer, the importer's salesman shall be permitted to have in his possession and show to retail licensees containers of alcoholic liquors which are unopened aid have no broken seals if such containers are set forth on an invoice marked "Transport" which the importer has issued to the salesman and which the salesman has on his person at the time. The original and all copies of the invoice, except for the copy in the possession of the salesman, shall be voided on the date of issuance. The original of the invoice shall be retained by the importer, and the Commissioner's customary copy shall be forwarded to the Commissioner in the same manner as other invoices. The copy of the invoice delivered to the salesman shall be returned to the importer within two weeds after its date of issuance, whereupon the importer shall void that copy and retain it. The alcoholic liquors described in the invoice hall not be charged out of the importer's inventory and shall be physically returned to the importer's inventory at the time the salesman's copy of the invoice is returned to the importer. 2. It shall be the responsibility of the importer that all the alcoholic liquors described in the invoice, while said alcoholic liquors are not physically in the importer's inventory, shall at all times be in the possession of the person, authorized by the importer, who has physical possession of the salesman's copy of the invoice. EFFECTIVE: JANUARY 6, 1971 RULE NUMBER 16, AS AMENDED A REGULATION CONCERNING THE SOLICITATION OF ORDERS FOR ALCOHOLIC LIQUORS IN THE STATE OF DELAWARE, THE TRANSPORTATION OF SAMPLES, AND STANDARDS PROVIDING FOR THE ISSUANCE OF PERMITS IN CONNECTION THEREWITH. Orders for the sale of alcoholic liquors may be taken and samples thereof may be transported only by an agent, sales representative, or other person sponsored by a manufacturer, importer, or distributor licensed by the Commissioner. No person shall solicit orders for alcoholic liquors or transport samples thereof unless such person has in his possession a permit issued to him by the Commissioner. Such permit shall be issued by the Commissioner: (1) upon the request of any licensed manufacturer, importer or distributor; and (2) upon proof that the person to be licensed is employed or sponsored by said manufacturer, importer, or distributor; and (3) upon approval by the Commissioner of the character of the applicant applying but not restricted to Section 543 (b) (3-9) of the Liquor Control Act, and the reputation of the applicants for honesty and legal behavior; and (4) upon receipt by the Commissioner of an affidavit in the following form executed by the person to be licensed: STATE OF ) )SS COUNTY OF ) I, the undersigned, having been first duly sworn according to law, depose and say as follows:. (1) I desire to secure a license from the Delaware Alcoholic Beverage Control Commissioner under the provisions of Rule 16, As Amended, and I make this affidavit for that purpose. (2) I am employed or sponsored by (3) I am familiar with the laws and Commissioner rules governing the sale and distribution of alcoholic liquors in the State of Delaware, particularly those pertaining to the method of handling samples, prohibiting the offering of inducements in any form, prohibiting tie-in sales, and those concerning credit regulations. (4) I will not in anyway violate such laws or rules. (5) I (have-have not) been convicted of a felony a sex offense, a gambling offense, or a law concerning alcoholic beverages. (If answer is in affirmative, attach arrest record.) _________________________________ (Signature of Applicant) SWORN TO AND SUBSCRIBED before me this ______day of ___________20___. __________________________(Notary Public) A license issued by the Commissioner shall be signed, by the person to whom it is issued. Each license shall be valid, unless revoked by the Commissioner, as long as the license holder remains sponsored or employed by the licensed manufacturer, importer, or distributor. A license may be refused or revoked for cause as set forth above by the Commissioner at any time after a hearing and due notice to the salesman. The salesman shall have the right to be represented by counsel, subpoena witnesses in his behalf, and otherwise offer a defense. The refusal or revocation by the Commissioner shall be in writing and shall state the grounds and reasons therefore. Any person holding a license shall surrender the same to the Commissioner forthwith upon the termination of his employment or sponsorship by a manufacturer, importer, or distributor. The employer or sponsor shall notify the Commissioner within two days after termination of the employment or sponsorship of any person holding a license under this rule, or of the arrest of such person for a felony, sex offense, gambling offense, or law concerning alcoholic beverages. EFFECTIVE: March 1, 1968 RULE NUMBER 17 A RULE SHOWING METHOD TO BE FOLLOWED WHEN ORDERING ALCOHOLIC LIQUOR THROUGH THE COMMISSIONER WHENEVER IT IS FOUND IMPRACTICAL TO DO SO THROUGH THE REGULARLY LICENSED IMPORTERS AND FIXING THE CHARGE TO BE MADE FOR SUCH SERVICE REPEALED EFFECTIVE: May 1, 1986 RULE NUMBER 18 A RULE REGULATING CLUBS AND MULTIPLE ACTIVITY CLUBS A. CLUBS УThe word СclubТ 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.Ф Every 'club' as above defined, shall have been in continuous existence, with at least 25 bona fide members in good standing, and with duly qualified and acting officers and governing board, for a period of at least six months prior to the making of an application for a license under the Liquor Control Act. This club status, in its entirety shall remain so long as it has a license to sell alcoholic liquor. At the time of the making of an application for a license under the Liquor Control Act, and at all times after the granting of a license, upon demand of the Commissioner, such 'club' shall produce at the office of the Commissioner, the original or a properly authenticated copy of its charter or articles of association, its minute books, membership and financial records, covering the full-period of its licensed existence. Said charter, articles of association, minutes mad financial records will show that all profit from the sale of alcoholic beverages is controlled by the membership, and its properly elected officers, and used for the authorized objects of the club. At the time of the making of an application for a license to sell alcoholic liquors and at any time after the granting of a license, upon demand of the Commissioner, such club shall furnish the Commissioner forthwith with a statement, signed by its President or Vice-President and notarized, setting forth the reason for organization of the club and the activities in detail carried on by the club. No club licensed under the Delaware Liquor Control Act shall have or maintain any "peephole", "bell", "buzzer", or other warning device at any entrance to the club premises; and immediate access to all parts of the premises of the club shall at all times be accorded to the authorized representatives of the Commissioner, including all qualified police officers in the State of Delaware, when accompanied by an Inspector of the Commissioner, all of whom shall be permitted to enter immediately and given immediate access to all parts of the premises of a club without a search warrant. The licensed club shall maintain only such locked doors or other safeguards as are necessary to prohibit unauthorized persons from entering the premises. A series of locked doors is not permitted without special permission in writing from the Commissioner and the door or doors used are to be of the kind normally used in the entrances of homes, stores, or other commercial establishments. A club is prohibited from maintaining blacked-out windows, provided that this regulation shall not prohibit the use of ordinary curtains, drapes or blinds for decorative purposes. No person under the age of twenty years shall be permitted upon the premises of a licensed club, subject, however, to the following exceptions: 1. Where a club is also licensed as a multiple activity club; 2. Where a licensed club maintains a junior class of membership or maintains a restaurant or dining facilities, authorized by the Commissioner, and where meals are regularly served to members and guests, such junior members, and guests of members, regardless of age, may be permitted upon the club premises excepting that part thereof where alcoholic liquor is sold, served or dispensed as the primary activity; 3. Where a licensed club has a mixed membership, consisting of members of both sexes, any child or children of a member of a guest of a child of a member in the presence of said child may be permitted upon the club premises when accompanied by his or her adult parent member. Children of members shall not be permitted on any portion of the club premises where alcoholic beverages are sold or otherwise dispensed as the sole activity; 4. Where a licensed club has been granted permission in writing by the Commissioner to entertain minors onto premises for special occasions following a written request to the Commissioner from the club outlining the purpose, sponsor, and hours of same. 5. Where employment of a person sixteen years of age or older has beer authorized by permit issued by the Commissioner as provided in Chapter 9, Section 904(g) of the Liquor Control Act. EFFECTIVE: FEBRUARY 24, 1977 RULE NUMBER 19 A RULE DEFINING THE WORDS HOTEL, MOTEL, RESTAURANT AND DINNER THEATER This Rule supplements the definition of Hotel and Restaurant contained in the Liquor Control Act. A. HOTEL УThe word 'hotel' means any establishment provided with special space and accommodation, where, in consideration of payment, food and lodging are habitually furnished to travelers." Such special space and accommodation shall be interpreted as meaning the availability of ten (10) or more rooms for sleeping purposes for travelers and a dining room having a seating capacity at one time for at least thirty (30) travelers. A hotel shall serve three regular meals each day during the hours of 8:00 A.M. and 10:00 A.M. (Breakfast), 11:00 A.M. and 2:00 P.M. (Lunch), and 5:00 P.M. and 9:00 P.M. (Dinner). There shall be a lobby having at least 150 square feet of floor space, and there shall be separate toilet accommodations for males and females on each sleeping floor. There shall also be adequate and sanitary kitchen and dining room equipment and an approved storage space where alcoholic liquor may be kept. A hotel shall be advertised as such. A State or County license to operate the premises as a hotel shall also be issued and in possession of the applicant prior to the issuance of the license and at all times thereafter during the term of the license. B. MOTEL "The word 'motel' shall mean the same as the word 'hotel' except that a motel may consist of one or more buildings so long as it otherwise qualifies with the requirements set forth in the above definition of 'hotel'. The provisions of the Liquor Control Act shall likewise apply to applications to sell alcoholic liquor in a motel." C. HOTEL OR MOTEL APPLICATIONS Subject to the provisions of the Liquor Control Act, the Commissioner may hear and either approve or disapprove an application for a license prior to the construction of the "hotel" or "motel", provided that any approval by the Commissioner of the application shall expressly condition the issuance of the license upon compliance by the applicant within a stated period (which may be extended only by the Commissioner) of the requirements of this rule and any representations made by the applicant to the Commissioner, which the Commissioner may deem appropriate. D. RESTAURANT УThe word СRestaurantТ 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 35 or more persons and suitable kitchen facilities connected therewith for cooking an assortment of foods under the charge of a chef or cook. The service of only such food and victuals as sandwiches or salads shall not be deemed to be the service of СmealsТ.Ф (1) A restaurant shall serve at least lunch and dinner five days each week. The lunch hours shall consist of a minimum of three hours, preferably between 11:00 A.M. and 2:00 P.M. and the dinner hours shall consist of a minimum of four hours preferably between 5:00 P.M. and 9:00 P.M. (2) Food shall be available at all hours that any restaurant is open for the sale of alcoholic liquor. (3) There shall also be adequate and sanitary kitchen and dining room equipment, and an approved storage space where alcoholic liquor may be kept. (4) A State or County license to operate the premises as a УrestaurantФ shall also be issued and in the possession of the applicant prior to the issuance of the license and at all times thereafter during the term of the license. The requirements in the above paragraphs shall apply to restaurants licensed to sell alcoholic liquor on Sunday. However, Sunday shall not be included as one of the five days required by paragraph two. Accordingly, a restaurant with a Sunday sale license shall serve meals on at least six days, including Sunday. E. RESTAURANT APPLICATION Subject to the provisions of the Liquor Control Act, the Commissioner may hear and either approve or disapprove an application for a license prior to the construction of the УrestaurantФ provided that any approval by the Commissioner of the application shall expressly condition the issuance of the license upon compliance by the applicant within a stated period (which may be extended only by the Commissioner) of the requirements of this rule and any representations made by the applicant to the Commissioner, which the Commissioner may deem appropriate. F. MEALS - HOTEL AND RESTAURANT The sale of alcoholic beverages by a hotel or restaurant shall be considered as a supplement to the original purpose of providing food and lodging and furnishing food, respectively. "Meals" shall be considered to seen the normal meals provided at breakfast, lunch and dinner, offered from menus consisting of, but not limited to: breakfast foods, soups, appetizers, entrees, salads, vegetables, dessert's and beverages other than alcoholic. Restaurants licensed to sell "Beer Only" and "Wine Only" shall be required to furnish only two out of the four following accompaniments to meals: appetizers, soups, salads and vegetables. G. DINNER THEATER The portion of the premises for a dinner theater used for the presenting of public performances featuring live actors in dramatic or musical productions shall not be a part of the premises licensed for the consumption of alcoholic liquor. The dinner theater shall serve at least one meal consisting of, but not limited to, appetizers, entrees, salads, vegetables, desserts and beverages other than alcoholic. There shall also be an adequate and sanitary kitchen and dining equipment with an approved storage space where alcoholic liquor may be kept. The dinner theater licensee shall supply to the Commissioner the hours during which the licensee shall permit consumption of alcoholic beverages on its premises. In no event shall the dinner theater licensee allow consumption of alcoholic liquors on its premises at times other than in conjunction with meals served at the theatrical performances and during intermissions or at any other time which is not permitted by the Delaware Liquor Control Act. The hours of consumption of alcoholic liquors shall first be approved by the Commissioner before the issuance of a license. Persons not of sufficient age to consume alcoholic liquors shall be allowed and permitted to be on the licensed premises of the dinner theater so long as all of the other provisions of the Liquor Control Act and Rules of this Commissioner are being complied with. H. VARIATIONS The holder of or applicant for a hotel, motel, restaurant or dinner theater license may apply in writing to the Commissioner for a variance in this rule for good cause shown. I. EFFECTIVE DATE. This rule shall be effective May 1, 1986 RULE NUMBER 19.1 BOTTLE CLUBS - LICENSING AND OPERATION A. Purpose and Scope This Rule implements the 1982 and 1989 Amendments to the Liquor Control Act extending the jurisdiction of the Commissioner to so called "bottle clubs." 4 Del. Code, Sec. 515, 515a, 902(7) and 554(aa), 60 Delaware Laws, Chapter 232 (April 30, 1982), 67 Delaware Laws, Chapter 122 (July 14, 1989). It applies to all businesses operated for profit where patrons carry onto the premises alcoholic liquors to be consumed thereon and removed by patrons upon their departure. B. Statutory Basis 1. 4 Del. Code, Sec. 515. Section 515 provides in part that establishments commonly known as "bottle clubs" shall be an exception to the definition of clubs set forth in Section 101(8) of this title. A "bottle club" shall be defined as an establishment operated for profit or pecuniary gain where persons enter upon the premises for purposes of consuming alcoholic liquors which are brought onto the premises by customers of the establishment and are consumed thereon and removed by such persons upon their departure." 2. 4 Del. Code, Sec. 515A. Section 515A. Licenses for establishments commonly known as "bottle clubs" provide: a. Except as provided in this section, it shall be unlawful to operate for profit or pecuniary gain a "bottle club." b. The Commissioner may, upon application, grant a license to the owner, lessor, or person in charge of the premises to operate a "bottle club" in accordance with this chapter. c. A "bottle club" license authorized by this section shall be granted only to persons doing business in an establishment meeting the standards of a restaurant as defined by this Title. Such license shall permit the establishment to operate as a "bottle club" on every day of the week and on holidays except between the hours of 2:00 a.m. and 9:00 a.m. during which time no alcoholic liquors shall be consumed upon the premises of such establishments. 3. 4 Del. Code, Sec. 902 Section 902. Offenses carrying a penalty of fine of $500 to $1,000 or imprisonment for three to six months on failure to pay fine, provides: УWhoever: (7) not being the holder of a license authorized by Section 515A, operates or maintains an establishment commonly known as a Уbottle clubФ, shall, in addition to payment of costs, be fined not less than $500 nor more than $1,000, and, on failure to pay such fine and costs, shall be imprisoned not less than three nor more than six months.Ф 4. 4 Del. Code, Sec. 554 License fees, provide in part: У(aa) for a license as a Уbottle clubФ authorized by Section 515A of this Title, the fee shall be $150.00.Ф C. Definitions 1. УBottle ClubФ means an establishment operated for profit or pecuniary gain where persons enter upon the premises for the purposes of consuming alcoholic liquors which are brought onto the premises by customers of the establishment and are consumed therein and removed by such persons upon their departure. 2. The term Уoperated for profit or pecuniary gainФ means a business owned by a sole proprietor, partnership, corporation or other business association where such owner is not exempt from federal or state taxes on income on the profits (or losses) from such business, or the profits (or losses) from such business are for the benefit of an individual partnership, corporation or other business association which is not exempt from federal or state taxes on income. An organization qualified to receive a gathering license under 4 Del. Code, Sec. 514, shall be deemed to be not for profit or pecuniary gain unless the profits or losses from such enterprise are otherwise subject to federal or state tax on income. 3. The word "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 thirty-five (35) or more persons, and suitable kitchen facilities connected therewith for cooking an assortment of foods under the charge of a chef or cook. The service of only such food and victuals as sandwiches or salads shall not be deemed to be the service of "meals" [4 Del. Code, Sec. 101(33)). In addition, a "restaurant" shall have a valid and current restaurant retailer license required by 30 Del. Code, Sec. 2906. 4. The word "consume" in any tense, means the preparation, concocting, mixing or ingestion of beverages containing alcoholic liquor on or immediately in conjunction with the premises of an establishment. By way of illustration, and not by limitation, it shall include the practice whereby patrons leave the premises to consume an alcoholic drink in the parking lot, in their cars, or other areas immediately adjacent to the premises, and return to the premises when such is done repeatedly. D. General Policy No establishment shall be operated for profit or pecuniary gain as a "bottle club" unless licensed by the Commissioner. Licensed "bottle clubs" shall, within the limits of their license, be held to the same standards of performance and financial responsibility as other types of license holders. E. Licensing 1. Application for License: Procedure Any person who is the owner or lessee, or who is recognized by the Commissioner as being in charge of a restaurant, may apply to the Commissioner for a license to operate a "bottle club" on the premises of the restaurant. Applications shall be processed in accordance with 4 Del. C., Sec. 541. The application processing fee shall be $500. 4 De1. C., Sec. 554 (X). 2. Adjudication of Application for License An application for a "bottle club" license may be denied for any of the reasons provided by 4 Del. C., Sections 543 (a) , (b) , (c) , (d) , or (f) . For the purposes of section 543(b)(1), the Commissioner shall consider the number of all on-premises licenses of whatever type or class. Further, the Commissioner will not grant a "bottle club" license when there is another "bottle club" within the distances prescribed by Section 543(d). 3. Term of License The terms of "bottle club" license shall be as prescribed by Rule 51. 4. Cancellation or Suspension of License The Commissioner shall be guided by the provisions of 4 Del. C., Section 561. F. Standards of Operation for "Bottle Club" 1. Hours of Operation An establishment operated as a "bottle club" shall not permit the consumption of alcoholic beverages on its premises after 2:00 a.m. or before 9:00 a.m. on any day. The presence of alcoholic liquors on the premises of a "bottle club" between the hours of 2:00 a.m. and 9:00 a.m. shall be prima facie evidence of a violation. 2. Service of General Public. A "bottle club" license must serve the public convenience and necessity. A "bottle club" may require membership upon payment of a reasonable fee, but approval of such membership shall not be unreasonably denied. A club shall not charge an admission charge or fee, but may charge a cover or minimum during hours when live entertainment is actually being presented. 3. Service of Food A reasonable selection of food shall be available from a written menu or menu board at all hours when alcoholic beverages are being consumed. The selection of foods shall include a choice of sandwiches, entrees, and non-alcoholic beverages. 4. Service of Persons Under 21 Minors may be admitted to the premises of a "bottle club." Minors may not consume alcoholic beverages at any time. It shall be a rebuttable presumption that minors found on the premises or departing there from who are found to have consumed alcoholic liquors or are in possession of alcoholic liquors, consumed or possessed such alcoholic liquors on the premises. 5. Service of Alcoholic Liquors. A "bottle club" may serve food, non-alcoholic beverages, mixers and ice and may charge for such service. "Bottle clubs" may not mix or provide bartender service to patrons, nor may a "bottle club" chill or keep alcoholic liquors for customers. A "bottle club" shall not serve alcoholic liquors. 6. Presence of Intoxicated Persons on Premises A "bottle club" shall not permit an intoxicated person to remain on its premises. 7. Gambling shall only be permitted as provided in Delaware Alcoholic Beverage Control Commissioner's Rule 40. 8. Design and Layout a. In a "bottle club" there shall be seating at tables for not less than thirty-five persons. Seats at a bar shall not exceed 20% of the total seating capacity of the establishment. b. The premises shall be maintained in a neat and tidy condition at all times. c. There shall be separate lavatories for male and female customers. d. "Bottle clubs" shall be so designed as to have a glass door or window(s) permitting observation of the interior of the establishment from outside thereof. Such windows or doors may be covered by a translucent curtain or drape on the interior of the premises, but such curtains or drapes shall not be so thick as to totally preclude the passage of light. 9. Financial Records "Bottle club" shall maintain complete and accurate books and records reflecting: a. The names and address of members. b. The names and addresses of all employees including their compensation and tips. c. Gross receipts from the sale of food, including the number of persons to whom food was served. d. Any such other records as are required in the normal and ordinary operation of business. e. Such books and records shall be made available to the Commissioner, its officers and agents, at any time during normal business hours. G. Penalties 1. General Establishments licensed as "bottle clubs" shall be subject to all laws, rules and regulations applicable to other types of licenses. Where provisions of this rule applicable specifically to "bottle clubs" are more restrictive than rules applicable to other types of license, the former shall prevail. First and second violations of this rule by licensed "bottle clubs" shall be processed pursuant to the provisions of Rule 71 (Voluntary Fine Assessment). Third and subsequent violations will require a hearing before the Commissioner. 2. Determination of Fines for Third and Subsequent Offenses Section 914 of 4, Del. Code, imposes a limit on fines of 10% of the estimated average gross monthly sales of alcoholic liquors during the twelve (12) months immediately preceding the date of an adjudication of guilty. The following formula shall be used by the Commissioner to estimate constructive sales of alcoholic liquors by a "bottle club". a. The Commissioner shall determine the sum of members and customers, by taking the gross receipts from admission fees, cover charges and minimum charges, and dividing by the average admission fee, cover charge or minimum charge, yielding the average daily utilization and adding thereto the total number of members. b. The foregoing sum shall be multiplied by $5.00, yielding the estimated gross receipts from the constructive sale of alcoholic beverages. c. The estimated gross receipts, above, shall be divided by 12 and the dividend multiplied by 10, the result being the maximum fine. 3. Suspension of License. In the event the determination of fines is insufficient or is declared unlawful by any court, and the Commissioner is prevented from imposing a fine, the license shall be suspended for a period determined by the Commissioner. This provision shall not, in any event, however, be construed to prevent the Commissioner from imposing a penalty of suspension or cancellation of license when such action is warranted by the facts of the case. H. Effective Date Approved and effective on June 14, 1990 RULE NUMBER 20 A RULE REGULATING SHIPS CHANDLERS REPEALED EFFECTIVE: May 1, 1986 RULE NUMBER 21 A RULE PROVIDING SPECIFICATIONS FOR ALL ON-PREMISES ESTABLISHMENTS Before issuance of a license or renewal of license to sell alcoholic liquor in an on-premises establishment, the premises must be approved as to condition by the Commissioner through an inspection by the Enforcement Section or other employees of the Commissioner staff. The following general rules shall govern with respect to on-premises establishments: 1. Each dispenser of alcoholic beverages shall bear the name of the product dispensed there from. 2. Separate restrooms for men and women available to the public as approved by the Commissioner. 3. On-premises establishments shall maintain standards consistent with the requirements of the Division of Public Health or the appropriate local agency having similar jurisdiction in the service of drinks and food, if applicable, including normal standards of cleanliness and shall have proper facilities for the cleansing of reusable utensils, glasses, dishes, etc. 4. All areas where alcoholic liquor is sold, served, dispensed or consumed shall be visible from the outside and shall be sufficiently lighted so as to permit the viewing of persons on the premise at all time that patrons and/or employees are on the premises, whether during or outside of normal operating hours. a. The provisions of this section shall not apply to the rooms of a hotel. b. The Commissioner may, for cause and upon request, grant a variance to the requirement. 5. If other parts of the building in which an on-premises establishment is located are occupied as living quarters, there shall be no doors communicating with the licensed areas unless authorized in writing by the Commissioner: 6. An accurate clock shall be installed in each area where alcoholic liquor is regularly dispensed. 7. Adequate, separate and secure storage facilities approved by the Commissioner must be available on the licensed premises for the storage of all alcoholic liquors for establishments operating during prohibited hours of sale. 8. The standard hours of operation must be as required by the Liquor Control Act or local ordinance unless a variance is granted by the Commissioner in writing. The hours of operation for restaurants, hotels and dinner theaters are outlined in Rule 19. 9. The approved hours and days of operation must be posted in a conspicuous place in order that all customers may be properly informed. 10. An up-to-date copy of the rules of the Commissioner and the Liquor Control Act must be on the premises at all times. 11. A decal, purchased through the Commissioner, stating the legal drinking age in the state must be conspicuously displayed at each entrance to the premises. The term conspicuous, for the purpose of this rule, means that advertisements and all other postings of any type (with the exception of the warning to pregnant women of the risk of birth defects from the consumption of alcoholic beverages, Rule 21, paragraph 12 and the posting of the hours of business, Rule 21, paragraph 9) may not be displayed within two feet of the decal stating the legal drinking age. 12. A decal, purchased through the Commissioner, warning pregnant women of the risk of birth defects from the consumption of alcoholic beverages must be conspicuously displayed at each entrance to the premises. The term conspicuous, for the purpose of this rule, means that advertisements and all other postings of any type (with the exception of the legal drinking age notice, Rule 21, paragraph 11, and the hours of business Rule 21 paragraph 9) may not be displayed within two feet of the decal warning pregnant women of the risk of birth defects from the consumption of alcoholic beverages. 13. The license for the current year must be posted in a conspicuous place on the licensed premises. 14. The effective date of this rule shall be January 1, 1990 RULE NUMBER 22 A RULE PROVIDING CERTAIN REQUIREMENTS FOR TAVERNS, RESTAURANTS, TAPROOMS, CLUBS, HOTELS, RACE TRACKS, DINNER THEATERS, RAILROADS AND BOATS. All alcoholic liquors shall, within one-half hour after legal sales of alcoholic liquors cease, be placed in adequate storage facilities out of reach of patrons. No holder of a restaurant, club, or hotel license, who offers for sale in his licensed premises, commodities or services other than alcoholic beverages, shall remain open during hours when the sale of alcoholic beverages is prohibited, unless he shall keep all alcoholic beverages upon the premises in a separate beverage department, or in cabinets provided for storage of same, which shall be securely closed and locked during the hours when sale of alcoholic beverages is prohibited. EFFECTIVE DATE: OCTOBER 24, 1974 RULE NUMBER 23 A RULE GOVERNING THE TIME AND MANNER IN WHICH ALCOHOLIC LIQUOR MAY BE SOLD, SERVED OR DISPENSED IN A TAPROOM AND REGULATING THE BUSINESS CONDUCTED THEREIN All rules and regulations of the Commissioner and all provisions of the Liquor Control Act now in force specifying the time and the manner in which alcoholic liquor may be sold, served or dispensed in a restaurant and regulating the business conducted therein, shall apply to and govern all establishments licensed as taprooms and the persons in charge thereof, insofar as the same may be applicable thereto. Effective: February 1, 1960 RULE NUMBER 24 CLUB MEMBERS, MULTIPLE ACTIVITY CLUB MEMBERS AND SALES OF ALCOHOLIC LIQUOR IN EACH SUCH CLUB A. CLUBS Except as provided herein, a license for the sale of alcoholic liquor by a club authorizes the sale of such alcoholic liquor to club members only. A member of a club is defined by Section 101, Chapter 1, Title 4, Delaware Code of 1953, as follows: "Member of a club" means an individual who, whether as a charter member or admitted in accordance with the rules or the by-laws of the club, has become a member thereof, who maintains membership by the payment of dues in the manner established by the rules or by-laws, and whose name and address is entered on the list of members supplied to the Commissioner at the time of the application for a license under Chapter 5 of this Title, or, if admitted thereafter, within eight days after admission and payment of dues, if such dues are required. The Commissioner is authorized to extend the meaning of the words "member of a club" to include those who are granted temporary membership or membership of less than one year in accordance with a rule or by-law of the club approved by the Commissioner. A guest may consume alcoholic liquor at a club provided that at all times he is on the licensed premises the host member of the club who introduced him also remains on the licensed premises and pays for the alcoholic liquor. A temporary member may purchase alcoholic liquor at a club. No club shall issue temporary memberships without first receiving written approval from the Commissioner. In requesting such approval, the club shall state to the Commissioner the purpose of temporary memberships, the conditions under which such memberships will be issued and file with the Commissioner a certified copy of the rule or by-law of the club which pertains to such memberships. Guests, immediately upon entrance to club premises, shall be registered in a guest book by name, date of visit and the name of their host. A club shall keep the guest book for a period of one year after the date the visit and make it available to the Commissioner upon reasonable request. If the club in the form of a lodge desires menders of subordinate lodges under the same grand lodge to have the privilege of buying alcoholic liquor at their club, this may be done by the lodge passing a resolution granting the privileges of the club to members of other subordinate lodges, providing such member presents his card indicating his membership in such subordinate lodge. A record shall be kept of the names of such members of subordinate lodges to whom such privileges are extended. B. MULTIPLE ACTIVITY CLUB A license for the sale of alcoholic liquor by a multiple activity club to persons who are guests of that club or of a member of that club is in addition to its license as a club which authorizes the sale of alcoholic liquor only to members of the club. A member of a multiple activity club is defined by Title 4, Delaware Code, Section 101 as follows: "Member of a Club" which is a multiple activity club means a person who, pursuant to the charter, by-law or rules of the club, is a member in good standing of that club and whose name and address is supplied in writing to the Commissioner by the club within eight days after his admission to membership, or a person why holds a temporary membership in such club, pursuant to a charter provision, by-law or rule approved by the Commissioner. A guest of a multiple activity club or a member of such a club shall register prior to or immediately upon entrance to club premises as a guest under a charter provision, by-law or rule of the club approved in advance by the Commissioner. Registration of a guest requires that the name of the guest and the date of the visit be included in a register open to the inspection of the Commissioner which states the facilities of the club that are open to such person and the time period for which the person is to be a guest. The multiple activity club shall keep the guest book for a period of one year after the date of the visit and make it available to the Commissioner upon reasonable request. EFFECTIVE: February 17, 1971 RULE NUMBER 25 A RULE DEFINING THE METHOD TO BE FOLLOWED BY A CLUB IN SECURING A LICENSE FOR THE SALE OF ALCOHOLIC LIQUOR FOR CONSUMPTION OFF THE PREMISES AND TO WHOM SUCH SALES CAN BE MADE Section 516, Chapter 5, Title 4, Delaware Code of 1953, reads partially as follows: "Any person in charge of * * * club*** may apply for a license to purchase*** and to keep and sell and deliver on the premises only spirits, wine or beer by the bottle or half-bottle only, but not for consumption on the premises where sold, or in any dependency thereof." There is no reference to the cost of granting a license to a Club for the sale of alcoholic liquors to be consumed off the premises. It is the ruling of the Commissioner that a license may be granted to a club for the sale of alcoholic liquors to be consumed off the premises and that the license if granted will be granted without payment of any money therefore, provided the provisions of Section 516, Chapter 5, Title 4, Delaware Code of 1953 are followed so far as the quantities so sold and delivered are complied-with. Sales of alcoholic liquor under the license granted to Clubs for consumption off the premises shall be made to members only. Effective: February 1, 1960 RULE NUMBER 26 A RULE REGULATING THE SALE OF ALCOHOLIC LIQUOR BY CLUBS AND ITТS POSSESSION BY MEMBERS REPEALED EFFECTIVE: May 1, 1986 RULE NUMBER 27 ADVERTISING AND PROMOTION OF ALCOHOLIC LIQUOR I. Purpose The Commissioner recognizes that responsible advertising of alcoholic liquor by licensees constitutes a proper medium of information to the general public. Advertising, however, which is deceptive or misleading to the consumer or general public is contrary to the public interest and is not conducive to the proper regulation and control of alcoholic liquor. The Commissioner finds that advertisements of any kind which tend to promote the mistaken belief that groups of package stores are being operated as a liquor store chain or jointly owned or operated are misleading and deceptive. It is the considered judgment of the Commissioner that, in the absence of appropriate notification to the public, joint or group advertisements listing the names and addresses of multiple licensees and containing a common symbol or name, and related practices involving the use of such common symbol or name, may: A. Create the mistaken impression that the licensees are a chain enterprise or are jointly owned, operated, or controlled. B. Tend to deceive the consumer. C. Constitute misleading and deceptive advertising and offering of alcoholic beverages. The purpose of this rule is to eliminate such deceptive or misleading advertising and related practices which contravene the provisions, intent, and purpose of the Liquor Control Act, the Delaware Code, and Commissioner Rules, and which deceive or tend to deceive the consumer and general public. II. Authority The Delaware Alcoholic Beverage Control Commissioner is authorized pursuant to 4 Del. C., з304(a)(2), to establish by rules and regulations an effective control of the manufacture, sale, dispensing, distribution, and importation of alcoholic liquor within and into this state. Such rules, however, may not be inconsistent with Title 4 of the Delaware Code or any other law of the State. This rule, therefore, implements and clarifies the grant of authority to the Commissioner contained in 4 Del. C., з304 (a) (2), to control the time, place, and manner in which alcoholic liquor shall be sold or dispensed by establishing uniform procedures for the advertising and promotion of alcoholic liquor. III. Definition The term "advertisement or promotion" includes any written or oral statement, illustration, or depiction which is intended to induce sales of alcoholic liquor or related services in the State of Delaware, whether it appears in a newspaper, magazine, trade booklet, menu, wine card, leaflet, circular, mailer, book insert, catalog, promotional material, sales pamphlet, or any written, printed, graphic, or other matter accompanying the bottle, billboard, sign, other outdoor display, public transit card, other periodical, literature, publication, or in any radio or television transmission, or in any other media. The term shall not include: The label affixed to bottles of alcoholic liquors, individual covering carton, or other primary container, or Any editorial or other reading matter, such as a press release, in a periodical, publication, or newspaper for the publication of which no money or valuable consideration is paid or promised, directly or indirectly, by a licensee. IV. History Prior to the current revision of Rule 27, joint advertising involving the use of common symbols, trade names, or logos was not permitted by the Commissioner. The Commissioner by promulgation of this rule is rescinding the prohibition on joint advertising or promotion of alcoholic liquor provided the procedures contained herein are satisfied. V. Applicability This rule shall govern the procedure by which all licensees of the Commissioner advertise or promote the sale of alcoholic liquor within and without the state. In addition, this rule shall govern the procedure by which retail licensees may jointly advertise or promote the sale of alcoholic liquor. VI. Prohibited Acts A. No person licensed by the Commissioner shall sell or offer to sell alcoholic liquor by means of any advertisement or promotion including any statement, representation, symbol, depiction, or reference, directly or indirectly, which: 1. Would reasonably be expected to induce minors to purchase or consume alcoholic liquor. 2. Would reasonably be expected to induce any person to consume alcoholic liquor to excess. 3. Is illegal under any federal, state, or local law, or Commissioner rule. 4. Implies that the product is endorsed by any government by the use of flags, seals, or other insignia, or otherwise. 5. Makes any humorous or frivolous reference to, or is suggestive of, the intoxicating effects of alcoholic liquor. 6. Is false or misleading in any material respect, or implies that the product has a curative or therapeutic effect. B. No person, corporation, partnership, or other entity licensed by the Commissioner to sell alcoholic liquor shall engage in any deceptive or misleading advertising, or cause or permit his/her name to appear in, or be used in conjunction with, any deceptive or misleading advertisement or promotion of alcoholic liquor. C. No person, corporation, partnership, or other entity licensed by the Commissioner to sell alcoholic liquor shall engage in any restraint of trade or commerce of this state as prohibited by 6 Del. C., з2103. VII. Joint Advertising A. Any one or more package stores may, jointly or singly, advertise alcoholic liquor in accordance with this rule. However, if such advertisement contains (a) the name, trade name, trademark, insignia, symbol, or logo-type of any unlicensed person, corporation, cooperative advertising group or business entity, or (b) any trade name, trademark, insignia symbol, or logo-type not belonging exclusively to one participating package store licensee, then such advertisement shall also prominently feature in bold print that is equal or larger in size than the print used elsewhere in advertisement, the following statement: THE STORES LISTED IN THIS ADVERTISEMENT ARE INDEPENDENTLY OWNED AND OPERATED. THEY ARE NOT PART OF A CHAIN AND ARE NOT A COOPERATIVE SALES GROUP. B. At the time of its publication, any joint advertising which does not reflect the actual price of the products being offered for sale by the participating package stores must state in bold print, equal or larger in size than the print used elsewhere in the advertisement, that "prices may vary at any of the listed stores" or "prices in this advertisement may not be available at all listed stores." VIII. Signs on Licensed Premises No package store licensee shall display any sign on the exterior or in the interior of a licensed premises which contains or advertises: 1. The name, trade name, trademark, symbol, or logo-type of any other retail licensee, or of any unlicensed person, corporation, cooperative advertising group or business entity, or 2. Any trade name, trademark, insignia, symbol, or logo-type not belonging exclusively to such licensee, unless there is prominently posted, at or near each public entrance, check-out counter, and cash register a sign containing the following statement: NOTICE TO CONSUMERS: THIS STORE IS INDEPENDENTLY OWNED AND OPERATED. IT IS NOT PART OF ANY CHAIN OR COOPERATIVE SALES GROUP. IX. Variances The Commissioner may grant variances to this rule, upon a showing of good cause, to licensees adversely affected by it, under such terms and conditions as the Commissioner deems appropriate. X. Severability If any part of this rule is held to be unconstitutional or otherwise contrary to law, then it shall be severed and the remaining portions shall remain in full force and effect. XI. Effective Date The effective date of this rule shall be June 1, 1992 RULE NUMBER 28 A RULE REGARDING THE TRANSFER OF A LICENSE REPEALED EFFECTIVE: May 1, 1986 RULE NUMBER 29 PUBLICATION OF PRICES AND POST-OFFS BY WHOLESALERS I. Purpose The purpose of this rule shall be to promote the public benefits of a competitive, economic environment based upon free enterprise within the Delaware alcoholic liquor industry. It is the intent of the Delaware Alcoholic Beverage Control Commissioner to promote an equitable system for the efficient distribution of alcoholic liquor in our state and to promote freedom of economic opportunity for all Delaware liquor licensees. In furtherance of these goals, this rule is promulgated to provide non-discriminatory procedures for the publishing of prices, post-offs, and quantity discounts of alcoholic liquor offered for sale by Delaware wholesalers to Delaware retailers and to govern related practices. II. Authority The Delaware Alcoholic Beverage Control Commissioner is authorized pursuant to 4 Del. C., з304(a)(2), to establish by rules and regulations an effective control of the manufacture, sale, dispensing, distribution, and importation of alcoholic liquor within and into this state. Such rules, however, may not be inconsistent with Title 4 of the Delaware Code or any other law of the State. This rule, therefore, implements and clarifies the grant of authority to the Commissioner contained in 4 Del. C., з304 (a) (2), to control the time, place, and manner in which alcoholic liquor shall be sold or dispensed. The need to promulgate this rule was based on testimony received at public hearings and is consistent with the Commissioner's duty to promulgate rules that serve the public interest and further the objectives of the Liquor Control Act. It is the Commissioner's finding that a procedure is needed to ensure timely and accurate publication to the industry of all prices, post-offs, and quantity discounts to be offered in a non-discriminatory manner by wholesalers to retailers during specified periods of time. The Commissioner further finds that the orderly publication of prices will benefit the Commissioner in its duties to effectively control the manufacture, sale, dispensing, distribution, and importation of alcoholic liquor within and into this state, including the time, place, and manner in which alcoholic liquor shall be sold and dispensed not inconsistent with the Liquor Control Act or any other laws of the State. The Commissioner also finds that the orderly publication of prices and the establishment of procedures governing post-offs and quantity discounts will further the underlying purpose of the Liquor Control Act to provide the people of every community in Delaware with a reasonably convenient opportunity to make a legal purchase of alcoholic liquor. III. Definitions Price: Means the amount of money given or set as consideration for the sale of a specified order of alcoholic liquor. Post-Off: Means a reduction in the price regularly charged by wholesalers, as published to the trade, which is sold by wholesalers to licensed retailers. Quantity Discount: Means a reduction in the price regularly charged by wholesalers, as published to the trade, which is sold by wholesalers to licensed retailers and is based in whole or in part on the quantity of alcoholic liquor purchased. Designated Publication: Means the single publication agreed to be used by the Delaware Alcoholic Beverage Wholesalers Association as the monthly price listing for all alcoholic liquor prices, post-offs, and quantity discounts offered for sale to Delaware licensed retailers. Wholesaler: Means licensed Delaware wholesaler. Retailer: Means all establishments licensed by the Commissioner to sell alcoholic liquor directly to the public. IV. History Prior to the current revision of Rule 29, the regulation of pricing, post-offs, and tie-in sales were controlled separately by Rules 29, 29.1, and 30, respectively. Quantity discounts from wholesalers to retailers were prohibited by Rules 29 and 29.1. The Commissioner, by promulgation of this rule, is repealing the prohibition on quantity discounts; however, it is not requiring wholesalers to offer quantity discounts or post-offs. It is the Commissioner's finding that the offering of quantity discounts is a decision that should be made by each wholesaler. In addition to removing the ban on quantity discounts, the Commissioner has consolidated and clarified the remaining provisions of Rules 29, 29.1, and 30 (including the removal of the ninety-day post and hold rule) into the current, revised edition of Rule 29. V. Applicability This rule shall govern the procedure by which all licensed wholesalers publish prices, post-offs, and quantity discounts of alcoholic liquor offered for sale to licensed Delaware retailers. The sale of all alcoholic liquor in Delaware by wholesalers to retailers must conform to the provisions of this rule. In addition, this rule shall govern the procedure by which records relating to post-offs and quantity discounts are maintained. VI. Procedures for Publishing Prices, Post-Offs, and Quantity Discounts A. Every wholesaler, licensed by the Commissioner to sell alcoholic liquor, shall submit by the eighteenth day of each month a written notice to the designated publication listing all of the alcoholic products they intend to offer for sale during the next calendar month. This notice shall include regular prices, as well as post-offs and quantity discounts if offered. B. A copy of the aforementioned notice shall also be filed with the Division of Alcoholic Beverage Control when transmitted to the designated publication. There shall be no change, revision, substitution, or addition to the aforementioned price listing notice after the eighteenth day of each month without prior approval of the Commissioner. C. The duration of the prices set for post-offs and quantity discounts shall be the effective dates listed in the designated publication and shall be five (5) days or more. D. The publisher of the designated publication shall make every reasonable effort to ensure that the publication is transmitted to all subscribers of record in time to be received by them not less than five (5) working days before the effective date of the prices listed in that particular monthly issue of the designated publication. VII. Procedure for Publishing of Prices for New Products A. Prices of new brands, types, or sizes shall be effective three (3) days after the wholesaler has given the required notice in writing to the trade industry, as follows: 1. By mailing a pricing announcement directly to all retail licensees of the trade by United States mail, or 2. By publication of prices in the designated publication as heretofore described, or 3. By other means approved by the Commissioner which are reasonably likely to reach all retail licensees of the trade in a timely manner. B. Newly listed or changed prices shall continue from their effective date until changed by the wholesaler in accordance with the procedures established by this rule. The duration of the prices set for post-offs and quantity discounts of new products shall be the effective dates listed in the new product pricing announcement and shall be five (5) days or more. . VIII. Duty of Wholesalers to Fill Orders The procedure and rules for licensed wholesalers who offer post-offs or quantity discounts to licensed retailers shall be as follows: A. Licensed wholesalers shall not discriminate among licensed retailers in filling orders for post-offs or quantity discounts based on the size of the order or the retail licensee's geographic location within the state. B. Licensed wholesalers shall not offer post-offs or quantity discounts to licensed retailers unless they are reasonably certain that adequate inventory is either on hand or on order to satisfy anticipated demand during the effective dates of the offering. C. Licensed wholesalers must honor the orders placed by licensed retailers for post-offs and quantity discounts in the sequential order in which they are placed, unless excused from doing so by the Commissioner upon proof of good cause. D. If .a licensed wholesaler is unable to fill the first order of a retailer for a post-off or quantity discount due to the depletion of its stock, the retailer shall have the option of having the order filled when stock is again available at the same price offered during the post-off or quantity discount period, or of purchasing a suitable substitute product of comparable value if the wholesaler chooses to offer a substitute product. E. Licensed wholesalers shall deliver all alcoholic liquor products offered for sale as post-offs or quantity discounts to the purchasing licensed retailer within three (3) working days, not including weekends or legal holidays, of the last date that the post-off or quantity discount is offered. IX. Procedure for Recording the Sale of Alcoholic Liquor by Wholesalers Every sale of alcoholic liquor, including post-offs, quantity discounts, and reduced prices, shall be recorded by the licensed wholesaler on a written invoice or bill of sale containing at a minimum the following: A. Name of the wholesaler B. Name of the retailer C. Date of sale D. Quantity of alcoholic liquor sold E. Price of alcoholic liquor sold F. Brand G. Size of container H. Date of delivery The regular price of alcoholic liquor sold at post-off or quantity discount shall also be stated on the bill of sale or invoice. All credit(s) associated with the sale of alcoholic liquor must be stated or affixed to the original bills of sale or invoices retained by the licensed retailer and wholesaler. X. Tie-In Sales A requirement by a wholesaler that a retailer purchase one product in order to purchase another is prohibited. This prohibition includes combination sales if one or more products may be purchased only in combination with other products and not individually. However, a wholesaler is not prohibited from selling at a special combination price two or more kinds or brands of products to a retailer, provided (a) the retailer has the option of purchasing either or both products at the usual price, and (b) the retailer is not required to purchase any product he or she does not want. Wholesaler licensees shall not, however, be required to sell or deliver beer to a retail licensee in quantities of less than five (5) cases. XI. Consortium Buying Nothing in this rule shall be deemed to preclude a wholesaler of alcoholic liquor licensed by the Delaware Alcoholic Beverage Control Commissioner from publishing or offering a discount based upon the quantity of product purchased to a pool, cooperative, or consortium of two or more licensed retailers, provided that the billing, shipment, transportation, and storage of all related alcoholic liquor conforms with state law and the rules of the Commissioner. Similarly, nothing in this rule shall be deemed to require a wholesaler of alcoholic liquor to offer post-offs or quantity discounts. The delivery of all alcoholic liquor purchased by a pool, cooperative, or consortium of retailers, to its members, must be made by the holder of a license issued by the Commissioner to deliver alcoholic liquor, as required by 4 Del. C., з701. XII. Severability If any part of this rule is held to be unconstitutional or otherwise contrary to law, then it shall be severed and the remaining portions shall remain in full force and effect. XIII. Effective Date The effective date of this rule shall be September 1, 1993 RULE NUMBER 29.1 POST-OFFS REPEALED EFFECTIVE: June 1, 1992 NOTE See Rule 29 regarding "Post-Offs"' or "Tie-In Sales" RULE NUMBER 29A A RULE REGARDING PRICE INCREASES AND DECREASES ON ALCOHOLIC LIQUORS. REPEALED. Effective: February 2, 1967 RULE NUMBER 30 A RULE TO PROHIBIT "TIE-IN SALES" BY LICENSEES R E P E A L E D EFFECTIVE: June 1, 1992 NOTE See Rule 29 regarding "Post-offs"' or "Tie-In Sales" RULE NUMBER 31 A RULE GOVERNING THE RETURN OF ALCOHOLIC LIQUOR TO THE SELLER AFTER IT HAS BEEN RECEIVED BY THE PURCHASER. No licensee, Wholesaler or retailer, shall accept the return of any alcoholic liquors sold by him if the delivery of the alcoholic liquor so sold shall have been accepted by the purchaser after immediate inspection. The purchaser, however, shall have the privilege of making an immediate inspection of the goods before receiving them. If a retail licensee after delivery determines that his order was incorrectly filled, he may return the incorrectly filled part of the order within thirty-six (36) hours after delivery or, with the permission of the Commissioner, at a later date. The Executive Secretary, in his discretion, may grant such permission. This restriction shall not apply to alcoholic liquors purchased for a Gathering of Persons which remain on hand after the period for which the license has been issued, nor to alcoholic liquors sold to an individual consumer when returned because of a defect in quality. Whenever a retailerТs license terminates for any reason, all unopened and unused alcoholic liquors shall be returned to the importer from whom originally purchased, but such importer may with Commissioner approval reject any such alcoholic liquor as not being fit for resale. Upon such a determination, the unsalable alcoholic liquor shall be disposed of or returned to the former licensee as directed by the Commissioner. Whenever an importers license terminates for any reason, the alcoholic liquors shall be disposed of in a manner approved by the Commissioner. When the business of any licensee is temporarily suspended, the alcoholic liquors shall be stored or disposed of in a manner approved by tie Commissioner. Effective: February 2, 1967 RULE NUMBER 32 A RULE DEFINING AND REGULATING MULTIPLE ACTIVITY CLUBS LICENSED TO SELL TO GUESTS OF SUCH CLUBS AND GUESTS OF MEMBERS A licensed club whose gross revenue from the sale of alcoholic liquor does not exceed 40% of its total annual revenue from all sources (determined by its books and records only after one year of operation as a licensed club) and which either: 1. Serves meals at regular hours six days a week, or, 2. Has a physical facility, regularly used by members of the club other than club rooms for the sale and service of food and alcoholic liquor and which facility is of a permanent nature and regularly used, i.e., tennis court, golf course, indoor pool, may apply for a Multiple Activity Club License. The holder of a Multiple Activity Club License must continue to have in good standing its club license. A Multiple Activity Club License permits the sale of alcoholic liquor to guests of the club or guests of its members. At the time of application, and if the license is granted at all times thereafter, the Multiple Activity Club will keep accurate books. and records, which will be shown to the Commissioner or the Commissioner's agents at any reasonable time showing separately the gross revenue from the sale of spirits, wine or beer and the gross revenue from all sources including dues, fees, and assessments. An application for such license shall be made on forms supplied by the Commissioner and shall consist of: 1. Application. 2. Financial Statement. 3. Publishers' Certificates. 4. An audit with supporting documents, showing gross revenue from all sources for one year prior to the app