Proposed Senate Committee Substitute, House Bill 890, ABC Omnibus Legislation (2021)
Summary
A proposed Senate committee substitute for House Bill 890, ABC Omnibus Legislation, in the General Assembly of North Carolina, Session 2021, with legends Committee Substitute Favorable 5/10/21 and Committee Substitute #2 Favorable 5/11/21. Its title reads An Act to Make Various Changes to the Alcoholic Beverage Control Commission Laws. Part I would allow an ABC store to accept an online order, to be picked up in person by the individual who placed the order, who must be at least 21 years of age, and Section 1.4 makes that Part effective October 1, 2021. Part II concerns personalized labels on spirituous liquor purchases, and Part XXXI covers rulemaking, a savings clause and the effective date.
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“Proposed Senate Committee Substitute, House Bill 890, ABC Omnibus Legislation (2021).”
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GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2021
H D
HOUSE BILL 890
Committee Substitute Favorable 5/10/21
Committee Substitute #2 Favorable 5/11/21
PROPOSED SENATE COMMITTEE SUBSTITUTE H890-CSTQf-34 [v.5]
8/30/2021 3:29:17 PM
Short Title: ABC Omnibus Legislation. (Public)
Sponsors:
Referred to:
May 5, 2021
1 A BILL TO BE ENTITLED
2 AN ACT TO MAKE VARIOUS CHANGES TO THE ALCOHOLIC BEVERAGE CONTROL
3 COMMISSION LAWS.
4 The General Assembly of North Carolina enacts:
5
6 PART I. ALLOW ONLINE ORDERS FROM ABC STORES
7 SECTION 1.1. G.S. 18B-800(a) reads as rewritten:
8 "(a) Spirituous Liquor. – Except as provided in Articles 10 and 11 of this Chapter,
9 spirituous liquor may be sold only in ABC stores operated by local boards. For purposes of this
10 subsection, the term "sold only in ABC stores operated by local boards" includes online orders
11 placed in accordance with subsection (c3) of this section."
12 SECTION 1.2. G.S. 18B-800 is amended by adding a new subsection to read:
13 "(c3) Online Orders. – An ABC store may accept an online order, including payment, for
14 alcoholic beverages sold in its store. An order placed online pursuant to this subsection shall be
15 picked up in person at the store by the individual who placed the order. An order placed online
16 pursuant to this subsection shall include the name and unique identifier number of the individual
17 placing the order, who shall be at least 21 years of age as shown on the form of identification
18 authorized pursuant to G.S. 18B-302(d)(1) and otherwise legally authorized to purchase alcoholic
19 beverages. An employee of the ABC store shall confirm that the online order is picked up in
20 person at the store by the individual who placed the order by verifying the individual's
21 identification that conforms to the identifying information contained in the online order. "
22 SECTION 1.3. The ABC Commission shall adopt rules to determine how long a
23 product purchased by an online order pursuant to G.S. 18B-800(c3) may be set aside before being
24 returned to inventory at an ABC store.
25 SECTION 1.4. This Part becomes effective October 1, 2021, and applies to sales on
26 or after that date.
27
28 PART II. ALLOW PERSONALIZED LABEL ON SPIRITUOUS LIQUOR PURCHASE
29 SECTION 2.1. G.S. 18B-800(c1) reads as rewritten:
30 "(c1) Special Orders of Special Items. – Through the process established by rule of the
31 Commission for special orders of spirituous liquor that are on the special item list approved by
32 the Commission, ABC stores shall allow the purchase of individual bottles of spirituous liquor.
33 ABC stores may sell in store any bottles it receives from a special item case in excess of what
34 was purchased by the requesting customer. Bottles purchased pursuant to this subsection may be
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1 affixed with personalized labeling by the manufacturer, distiller, broker or supplier of spirituous
2 liquor. The personalized labeling shall comply with any other labeling requirements set by law.
3 The personalized labeling shall not cover any portion of the manufacturer's original label. For
4 purposes of this subsection, the term "personalized labeling" means the inclusion of any of the
5 following on the label:
6 (1) The name of the purchaser of the bottle or the name of any individual, business
7 entity, club, ABC Board or ABC store on whose behalf the bottle is purchased.
8 (2) "Bottled for", "distilled for", "in honor of", or other similar language.
9 (3) Dates, locations, occasions, and other similar information."
10 SECTION 2.2. G.S. 18B-1105(a)(4) reads as rewritten:
11 "(4) Sell spirituous liquor distilled at the distillery in closed containers to visitors
12 who tour the distillery for consumption off the premises. Sales under this
13 subdivision are allowed only in a county where the establishment of a county
14 or municipal ABC store has been approved pursuant to G.S. 18B-602(g) and
15 are subject to the time and day restrictions in G.S. 18B-802. Spirituous liquor
16 sold under this subdivision shall (i) be listed as a code item for sale in the
17 State, (ii) be sold at the price set by the Commission for the code item pursuant
18 to G.S. 18B-804(b), and (iii) have affixed to its bottle any labeling
19 requirements set by law. A bottle of spirituous liquor sold under this
20 subdivision may have personalized labeling. The personalized labeling shall
21 comply with any other labeling requirements set by law. The personalized
22 labeling shall not cover any portion of the manufacturer's original label. For
23 purposes of this subdivision, the term "personalized labeling" means the
24 inclusion of any of the following on the label:
25 a. The name of the purchaser of the bottle or the name of any individual,
26 business entity, club, ABC Board or ABC store on whose behalf the
27 bottle is purchased.
28 b. "Bottled for", "distilled for", "in honor of", or other similar language.
29 c. Dates, locations, occasions, and other similar information."
30 SECTION 2.3. This Part becomes effective October 1, 2021, and applies to
31 spirituous liquor sold on or after that date.
32
33 PART III. MIXED BEVERAGE PERMIT FOR CERTAIN EVENT CENTERS
34 SECTION 3.1. G.S. 18B-1006 is amended by adding a new subsection to read:
35 "(n2) Event Centers. – The Commission may issue permits listed in G.S. 18B-1001(10) and
36 (12), without approval at an election, to qualified establishments defined in G.S. 18B-1000(4)
37 and (6) that meet all of the following requirements:
38 (1) The establishment is located in a county that has more than two man-made
39 lakes.
40 (2) The establishment is located in a county that has approved the sale of malt
41 beverages and unfortified wine but not mixed beverages.
42 (3) The establishment is open to the public and includes on its premises a hotel
43 with accommodations for 20 or more overnight guests, agritourism activities
44 as defined in G.S. 99E-30, and firearm sports."
45 SECTION 3.2. This Part is effective when it becomes law.
46
47 PART IV. ELIMINATE THE REQUIREMENT ON THE TOWN OF CARY TO ISSUE
48 ALCOHOLIC BEVERAGE LICENSES
49 SECTION 4.1. G.S. 105-113.70(a) reads as rewritten:
50 "(a) Issuance, Qualifications. – Each person who receives an ABC permit shall obtain the
51 corresponding local license, if any, under this Article. All local licenses are issued by the city or
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1 county where the establishment for which the license is sought is located. No documentation
2 shall be required of the applicant except as provided in this section. Issuance of a required local
3 license is mandatory if the applicant holds the corresponding ABC permit and provides all of the
4 following: (i) a copy of the most recently completed State application form for an ABC permit
5 exclusive of any attachments, (ii) the ABC permit for visual inspection, and (iii) payment of the
6 prescribed tax. No local license may be issued under this Article until the applicant has received
7 from the ABC Commission the applicable permit for that activity, and no county license may be
8 issued for an establishment located in a city in that county until the applicant has received from
9 the city the applicable license for that activity.activity; provided, the city in that county has not
10 declined to require a license pursuant to G.S. 105-113.71(c)."
11 SECTION 4.2. G.S. 105-113.71 reads as rewritten:
12 "§ 105-113.71. Local government may refuse to issue Nonissuance of license.
13 (a) Refusal to Issue. – Notwithstanding G.S. 105-113.70, the governing board of a city
14 or county may refuse to issue a license if it finds that the applicant committed any act or permitted
15 any activity in the preceding year that would be grounds for suspension or revocation of his
16 permit under G.S. 18B-104. Before denying the license, the governing board shall give the
17 applicant an opportunity to appear at a hearing before the board and to offer evidence. The
18 applicant shall be given at least 10 days' notice of the hearing. At the conclusion of the hearing
19 the board shall make written findings of fact based on the evidence at the hearing. The applicant
20 may appeal the denial of a license to the superior court for that county, if notice of appeal is given
21 within 10 days of the denial.
22 (b) Local Unfortified Wine Exceptions. – The governing bodies of the following counties
23 and cities in their discretion may decline to issue on-premises unfortified wine licenses: the
24 counties of Alamance, Alexander, Ashe, Avery, Chatham, Clay, Duplin, Granville, Greene,
25 Haywood, Jackson, Macon, Madison, McDowell, Montgomery, Nash, Pender, Randolph,
26 Robeson, Sampson, Transylvania, Vance, Watauga, Wilkes, Yadkin; any city within any of those
27 counties; and the cities of Greensboro, Aulander, Pink Hill, and Zebulon.
28 (c) General Exception. – The governing bodies of the municipalities listed in this
29 subsection may decline requiring a person who receives an ABC permit to obtain the
30 corresponding local license from the municipality to engage in the activity authorized by the
31 ABC permit: the Town of Cary."
32 SECTION 4.3. G.S. 105-113.77(a) reads as rewritten:
33 "(a) License and Tax. – A Except in cities declining to require a license pursuant to
34 G.S. 105-113.71(c), a person holding any of the following retail ABC permits for an
35 establishment located in a city shall obtain from the city a city license for that activity. The annual
36 tax for each license is as stated.
37 ABC Permit Tax for Corresponding License
38 On-premises malt beverage $15.00
39 Off-premises malt beverage 5.00
40 On-premises unfortified wine,
41 on-premises fortified wine, or both ......................................................................... 15.00
42 Off-premises unfortified wine,
43 off-premises fortified wine, or both ...................................................................... 10.00"
44 SECTION 4.4. This Part becomes effective October 1, 2021.
45
46 PART V. ESTABLISH NORTH CAROLINA SPIRITUOUS LIQUOR ADVISORY
47 COUNCIL
48 SECTION 5.1. Chapter 106 of the General Statutes is amended by adding a new
49 Article to read:
50 "Article 62B.
51 "Spirituous Liquor Advisory Council.
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1 "§ 106-755.3. North Carolina Spirituous Liquor Advisory Council established.
2 The Commissioner shall appoint a North Carolina Spirituous Liquor Advisory Council
3 (Council) to consist of individuals who have education or experience in the spirituous liquor
4 industry or in the field of tourism. The membership shall be comprised of members of the
5 spirituous liquor industry in North Carolina, at least one representative of the North Carolina
6 Restaurant and Lodging Association, at least one representative of the North Carolina
7 Association of ABC Boards, at least one representative of the ABC Commission, and any other
8 person selected by the Commissioner. Notwithstanding any other provision of law, Council
9 members shall receive no salary, per diem, subsistence, travel reimbursement, or other stipend
10 or reimbursement as a result of serving on the Council.
11 "§ 106-755.4. Powers and duties of the Council.
12 The Council shall have all of the following powers and duties:
13 (1) To identify and implement methods for improving North Carolina's rank as a
14 spirituous liquor-producing State.
15 (2) To assure orderly growth and development of North Carolina's spirituous
16 liquor industry.
17 (3) To increase public awareness of the quality of North Carolina spirituous
18 liquor.
19 (4) To coordinate the interaction of North Carolina's spirituous liquor industry
20 with other segments of the State's economy such as tourism, retail trade, and
21 horticulture.
22 (5) To conduct methods of quality assurance of North Carolina's spirituous liquor
23 industry to create a sound foundation for further growth.
24 (6) To assist in the coordination of the activities of the various State agencies and
25 other organizations contributing to the development of the spirituous liquor
26 industry.
27 (7) To enter into agreements with any local, State, or national organizations or
28 agencies engaged in education for the purpose of disseminating information
29 on spirituous liquor projects.
30 (8) To develop a plan that identifies problems and constraints of the spirituous
31 liquor industry, proposes solutions to those problems, and delineates planning
32 mechanisms for the orderly growth of the industry.
33 (9) To render advice and recommendations, including legislative
34 recommendations, to the Commissioner regarding all of the above powers and
35 duties."
36 SECTION 5.2. The Commissioner shall make initial appointments to the North
37 Carolina Spirituous Liquor Advisory Council established under G.S. 106-755.3, as enacted by
38 Section 5.1 of this act, no later than October 1, 2021.
39 SECTION 5.3. Section 5.1 of this Part becomes effective October 1, 2021. The
40 remainder of this Part is effective when it becomes law.
41
42 PART VI. WINERY AND DISTILLERY LAW REVISIONS
43 SECTION 6.1.(a) G.S. 18B-1105(a)(4), as amended by Section 2.2 of this act, reads
44 as rewritten:
45 "(4) Sell spirituous liquor distilled at the distillery in closed containers to visitors
46 who tour the distillery for consumption off the premises. Sales under this
47 subdivision are allowed only in a county where the establishment of a county
48 or municipal ABC store has been approved pursuant to G.S. 18B-602(g) and
49 are subject to the time and day restrictions in G.S. 18B-802. may occur
50 between the hours of 9:00 A.M. and 9:00 P.M. on Monday through Saturday
51 of each week, from 12:00 noon to 9:00 P.M. on Sundays, and from 9:00 A.M.
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1 to 9:00 P.M. on each of the following holidays that do not fall on a Sunday:
2 New Year's Day, Fourth of July, Labor Day, and Thanksgiving Day.
3 Spirituous liquor sold under this subdivision shall (i) be listed as a code item
4 for sale in the State, (ii) be sold at the price set by the Commission for the
5 code item pursuant to G.S. 18B-804(b), and (iii) have affixed to its bottle any
6 labeling requirements set by law. A bottle of spirituous liquor sold under this
7 subdivision may have personalized labeling affixed to it that includes any
8 other labeling requirements set by law. For purposes of this subdivision, the
9 term "personalized labeling" means the inclusion of the name of the purchaser
10 on the label."
11 SECTION 6.1.(b) This section becomes effective October 1, 2021, and applies to
12 sales on or after that date.
13 SECTION 6.2.(a) Article 11 of Chapter 18B of the General Statutes is amended by
14 adding a new section to read:
15 "§ 18B-1113.1. Authorization of optional nonresident spirituous liquor vendor permit.
16 (a) The following businesses may apply for and obtain a nonresident spirituous liquor
17 vendor permit:
18 (1) A business located outside the State that is licensed or permitted to
19 manufacture spirituous liquor in the jurisdiction where the business is located
20 and whose products are lawfully sold in this State.
21 (2) A brokerage.
22 (3) A liquor importer/bottler.
23 (b) The holder of a nonresident spirituous liquor vendor permit may sell, deliver, and ship
24 spirituous liquor that has been approved for sale in this State to the permit holder’s (i) employees
25 in the State and (ii) brokerage if the brokerage also holds a nonresident spirituous liquor vendor
26 permit, for the purposes of conducting special events pursuant to G.S. 18B-1114.7. The permit
27 holder may not ship or deliver more spirituous liquor to its employees or brokerage than is
28 necessary for any consumer tasting event scheduled within one calendar month of the shipment
29 or delivery. Nothing in this section shall be interpreted to require a business to possess or obtain
30 a nonresident spirituous liquor vendor permit to do business in the State or to obtain a spirituous
31 liquor special event permit pursuant to G.S. 18B-1114.7.
32 (c) For purposes of this section, “brokerage” means a business that brokers the sale of
33 spirituous liquor on behalf of a distillery or liquor importer/bottler, and “distillery” means the
34 holder of a distillery permit issued under G. S. 18B-1105 or a business located outside the State
35 that is licensed or permitted to manufacture spirituous liquor in the jurisdiction where the
36 business is located and whose products are lawfully sold in this State."
37 SECTION 6.2.(b) G.S. 18B-902(d) is amended by adding a new subdivision to read:
38 "(48) Nonresident spirituous liquor vendor permit. - $100.00."
39 SECTION 6.2.(c) G.S. 18B-900(a)(2)c. reads as rewritten:
40 "c. The person is applying for a nonresident malt beverage vendor permit, a
41 nonresident wine vendor permit, a nonresident spirituous liquor vendor
42 permit, or a vendor representative permit."
43 SECTION 6.2.(d) G.S. 105-113.83A(a) is amended by adding a new subdivision to
44 read:
45 "(12) Nonresident spirituous liquor vendor."
46 SECTION 6.2.(e) G.S. 18B-1114.1 reads as rewritten:
47 "§ 18B-1114.1. Authorization of winery special event permit.
48 (a) Authorization. – The holder of an unfortified winery permit, a limited winery permit,
49 a viticulture/enology course authorization, or a wine producer permit permit, or a vendor
50 representative permit, may obtain a winery special event permit allowing the winery or wine
51 producer to give free tastings of its wine; to sell branded merchandise such as glassware, cups,
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1 signs, t-shirts, hats, and other apparel; and to sell its wine by the glass or in closed containers, at
2 shopping malls and at trade shows, conventions, shopping malls, wine festivals, street festivals,
3 holiday festivals, agricultural festivals, farmers markets, balloon races, local fund-raisers, and
4 other similar events approved by the Commission.
5 (b) Limitation. – A winery special event permit is valid only in a jurisdiction that has
6 approved the establishment of ABC stores or has approved the sale of unfortified wine."
7 SECTION 6.2.(f) G.S. 18B-1114.5 reads as rewritten:
8 "§ 18B-1114.5. Authorization of malt beverage special event permit.
9 (a) Authorization. – The holder of a brewery permit, a malt beverages importer permit, a
10 brewing, distillation, and fermentation course authorization, or a nonresident malt beverage
11 vendor permit permit, or a vendor representative permit may obtain a malt beverage special event
12 permit allowing the permittee to give free tastings of its malt beverages; to sell branded
13 merchandise such as glassware, cups, signs, t-shirts, hats, and other apparel; and to sell its malt
14 beverages by the glass or in closed containers at shopping malls and at trade shows, conventions,
15 shopping malls, malt beverage festivals, street festivals, holiday festivals, agricultural festivals,
16 farmers markets, balloon races, local fund-raisers, and other similar events approved by the
17 Commission. Except for a brewery operating under the provisions of G.S. 18B-1104(a)(8), all
18 malt beverages sampled or sold pursuant to this section must be purchased from a licensed malt
19 beverages wholesaler.
20 (b) Limitation. – A malt beverage special event permit is valid only in a jurisdiction that
21 has approved the establishment of ABC stores or has approved the sale of malt beverages. A malt
22 beverage special event shall not be used as subterfuge for malt beverages suppliers to ship
23 directly to retail permittees unless otherwise authorized by law."
24 SECTION 6.2.(g) G.S. 18B-1114.7 reads as rewritten:
25 "§ 18B-1114.7. Authorization of spirituous liquor special event permit.
26 (a) Authorization. – The holder of a supplier representative permit, brokerage
27 representative permit, nonresident spirituous liquor vendor permit, or distillery permit issued
28 under G.S. 18B-1105 may obtain a spirituous liquor special event permit allowing the permittee
29 to give free tastings of its spirituous liquors at ABC stores where the local board has approved
30 the tasting, at shopping malls or at trade shows, conventions, shopping malls, street festivals,
31 holiday festivals, agricultural festivals, balloon races, farmers markets, local fund-raisers, and
32 other similar events approved by the Commission. Additionally, the holder of a spirituous liquor
33 special event permit may sell mixed beverages or spirituous liquor distilled or produced at the
34 distillery in closed containers at trade shows, conventions, agricultural festivals, farmers markets,
35 local fund-raisers, and other similar events approved by the Commission.
36 (b) General Limitations.Limitations on Consumer Tastings. – Except as otherwise
37 provided in subsection (c) of this section, any consumer tasting is subject to the following
38 limitations:
39 (1) The permit holder or the permit holder's authorized agent shall conduct the
40 consumer tasting and the permit holder shall be solely responsible for any
41 violations of this Chapter occurring in connection with the consumer tasting.
42 (2) The spirituous liquor shall be poured only by either (i) the permit holder
43 conducting the consumer tasting or (ii) an employee or authorized agent of the
44 permit holder conducting the consumer tasting who is at least 21 years of age.
45 (3) Each consumer shall be limited to one tasting sample containing 0.25 ounces
46 of any product made available for sampling at the consumer tasting, and the
47 total amount of the tasting samples offered to and consumed by each consumer
48 shall not exceed 1.0 ounce of spirituous liquor in any calendar day.
49 (3a) The permit holder or the permit holder's authorized agent may only provide
50 tasting samples of products from one distillery per booth, kiosk, or display.
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1 (4) The permit holder or the permit holder's authorized agent shall not offer
2 tasting samples to, or allow consumption of tasting samples by, any consumer
3 who is visibly intoxicated.
4 (5) The permit holder or the permit holder's authorized agent shall not offer
5 tasting samples to, or allow consumption of tasting samples by, any consumer
6 under the legal age for consuming spirituous liquor.21 years of age. The
7 person pouring the spirituous liquor shall be responsible for verifying the age
8 of the consumer being served by checking the identification of the consumer.
9 (6) The permit holder shall not charge a consumer for any tasting sample.
10 (7) Repealed by Session Laws 2019-182, s. 6(a), effective September 1, 2019.
11 (8) A consumer tasting shall not be allowed unless the venue is located in a
12 jurisdiction that has approved the sale of mixed beverages.
13 (9) The permit holder may provide point-of-sale advertising materials and
14 advertising specialties and may sell branded merchandise such as glassware,
15 cups, signs, t-shirts, hats, and other apparel to consumers at the consumer
16 tasting.
17 (10) The permit holder shall maintain for a period of at least one year a record of
18 each consumer tasting conducted. The record shall include the date of the
19 consumer tasting, the time of the consumer tasting, an identification of the
20 venue at which the consumer tasting was held, an identification of the
21 spirituous liquor that was provided for tasting at the consumer tasting, and the
22 name of any person who poured spirituous liquor at the consumer tasting. The
23 permit holder shall allow the ABC Commission to inspect those records at any
24 time.
25 (11) Consumer tastings may not be provided between the hours of 2:00 A.M. and
26 7:00 A.M, except that on Sundays consumer tastings may not be provided
27 until 12:00 noon unless the sale of alcoholic beverages before 12:00 noon is
28 authorized by local ordinance pursuant to G.S. 153A-145.7, or G.S. 160A-
29 205.3.
30 (b1) General Limitations on Sales of Mixed Beverages. – The sale of mixed beverages in
31 conjunction with a consumer tasting under a spirituous liquor special event permit is subject to
32 the following limitations:
33 (1) The sale of mixed beverages in conjunction with a consumer tasting is not
34 authorized at shopping malls, street festivals, holiday festivals, or balloon
35 races.
36 (2) The mixed beverages shall contain only spirituous liquor distilled or produced
37 at the distillery.
38 (3) The permit holder or the permit holder's authorized agent shall conduct the
39 sale of mixed beverages and the permit holder shall be solely responsible for
40 any violations of this Chapter occurring in connection with the event.
41 (4) The permit holder or the permit holder's authorized agent may only sell mixed
42 beverages containing products from one distillery per booth, kiosk, or display.
43 (5) The mixed beverage shall be prepared only by either (i) the permit holder or
44 the permit holder's authorized agent conducting the consumer tasting or (ii) an
45 employee of the permit holder or the permit holder's authorized agent
46 conducting the consumer tasting who is at least 21 years of age.
47 (6) The permit holder or the permit holder's authorized agent shall not knowingly
48 sell more than one mixed beverage to a customer per calendar day, per
49 distillery.
50 (7) The permit holder or the permit holder's authorized agent shall not sell or serve
51 mixed beverages to any consumer who is visibly intoxicated.
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1 (8) The permit holder or the permit holder's authorized agent shall not sell or serve
2 mixed beverages to any consumer under 21 years of age. The person preparing
3 the mixed beverage shall be responsible for verifying the age of the consumer
4 being served by checking the identification of the consumer.
5 (9) The sale of mixed beverages shall not be allowed unless the venue is located
6 in a jurisdiction that has approved the sale of mixed beverages.
7 (10) Mixed beverages may not be sold between the hours of 2:00 A.M. and 7:00
8 A.M, except that on Sundays mixed beverages may not be sold until 12:00
9 noon unless otherwise authorized by local ordinance pursuant to G.S. 153A-
10 145.7, or G.S. 160A-205.3.
11 (b2) General Limitations on the Provision of Spirituous Liquor in Closed Containers. –
12 The provision of spirituous liquor in closed 50 milliliter mini-bottle containers, at no cost, in
13 conjunction with a consumer tasting under a spirituous liquor special event permit is authorized
14 subject to the following limitations:
15 (1) The sale of spirituous liquor in closed containers in conjunction with a
16 consumer tasting is not authorized at shopping malls or at trade shows,
17 conventions, street festivals, holiday festivals, agricultural festivals, balloon
18 races, farmers markets, local fund-raisers, and other similar events approved
19 by the Commission.
20 (2) The permit holder or the permit holder's authorized agent shall provide only
21 spirituous liquor distilled or produced at the distillery.
22 (3) The permit holder or the permit holder's authorized agent shall conduct the
23 provision of the spirituous liquor and the permit holder shall be solely
24 responsible for any violations of this Chapter occurring in connection with the
25 event.
26 (4) The permit holder or the permit holder's authorized agent may only provide
27 spirituous liquor distilled or produced by one distillery per booth, kiosk, or
28 display.
29 (5) The spirituous liquor shall be provided only by either (i) the permit holder or
30 the permit holder's authorized agent conducting the consumer tasting or (ii) an
31 employee of the permit holder or the permit holder's authorized agent
32 conducting the consumer tasting who is at least 21 years of age.
33 (6) The permit holder or the permit holder's authorized agent shall not knowingly
34 provide more than one 50 milliliter mini-bottle of spirituous liquor to a
35 customer per calendar day, per distillery. Notwithstanding G.S. 18B-301(e), a
36 customer may possess a mini-bottle purchased at a consumer tasting event
37 while at the event.
38 (8) The permit holder or the permit holder's authorized agent shall not provide
39 spirituous liquor to any consumer who is visibly intoxicated.
40 (9) The permit holder or the permit holder's authorized agent shall not provide
41 spirituous liquor to any consumer under 21 years of age. The person providing
42 the spirituous liquor shall be responsible for verifying the age of the consumer
43 being served by checking the identification of the consumer.
44 (10) The provision of spirituous liquor shall not be allowed unless the venue is
45 located in a jurisdiction that has approved the sale of mixed beverages.
46 (11) Spirituous liquor in closed containers may be provided between the hours of
47 9:00 A.M. and 9:00 P.M. on Monday through Saturday of each week, from
48 12:00 noon to 9:00 P.M. on Sundays, and from 9:00 A.M. to 9:00 P.M. on
49 each of the following holidays that do not fall on a Sunday: New Year's Day,
50 Fourth of July, Labor Day, and Thanksgiving Day.
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1 (c) Additional Limitations on Tastings in ABC Stores. – Consumer tastings conducted in
2 an ABC store shall have the following additional limitations:
3 (1) The spirituous liquor used in the consumer tasting event shall be purchased by
4 the permit holder from any ABC store at the price set by the Commission. The
5 permit holder shall remove from the premises any remaining spirituous liquor
6 used in the consumer tasting event at the conclusion of the consumer tasting
7 event.
8 (1a) The permit shall be issued in the name of the distillery or, or if issued to a
9 supplier representative, brokerage representative, or nonresident spirituous
10 liquor vendor, in the name of the nonresident spirituous liquor vendor or the
11 name of the business the supplier representative or brokerage representative
12 represents.
13 …
14 (d) For purposes of this section, "distillery" means the holder of a distillery permit issued
15 under G.S. 18B-1105 or a business located outside the State that is licensed or permitted to
16 manufacture spirituous liquor in the jurisdiction where the business is located and whose products
17 are lawfully sold in this State."
18 SECTION 6.2.(h) G.S. 18B-1105(a)(5) reads as rewritten:
19 "(5) Conduct consumer tastings tastings, sell mixed beverages, and provide
20 spirituous liquor in closed containers in accordance with G.S. 18B-1114.7."
21 SECTION 6.2.(i) This section becomes effective 90 days after this act becomes law,
22 and applies to events held on or after that date.
23 SECTION 6.3.(a) G.S. 130A-247 reads as rewritten:
24 "§ 130A-247. Definitions.
25 The following definitions shall apply throughout this Part:
26 …
27 (11) "Distillery" means an establishment licensed under G.S. 18B-1105 that is not
28 engaged in the preparation of food on the premises. For purposes of this
29 subdivision, the term "food" does not include beverages.
30 (12) "Winery" means an establishment licensed under G.S. 18B-1101 or
31 G.S. 18B-1102 that is not engaged in the preparation of food on the premises.
32 For purposes of this subdivision, the term "food" does not include beverages."
33 SECTION 6.3.(b) G.S. 130A-248(a) reads as rewritten:
34 "(a) For the protection of the public health, the Commission shall adopt rules governing
35 the sanitation of establishments that prepare or serve drink or food for pay and establishments
36 that prepare and sell meat food products or poultry products. However, any establishment that
37 prepares or serves food or drink to the public, regardless of pay, shall be subject to the provisions
38 of this Article if the establishment that prepares or serves food or drink holds an ABC permit, as
39 defined in G.S. 18B-101, meets any of the definitions in G.S. 18B-1000, and does not meet the
40 definition of a brewery as provided in G.S. 130A-247(10) or a private bar as provided in
41 G.S. 130A-247(1b) or a private club as provided in G.S. 130A-247(2).set forth in G.S. 130A-247
42 for a brewery, distillery, private bar, private club, or winery."
43 SECTION 6.3.(c) G.S. 130A-250 reads as rewritten:
44 "§ 130A-250. Exemptions.
45 The following shall be exempt from this Part:
46 …
47 (18) A distillery as defined in G.S. 130A-247(11).
48 (19) A winery as defined in G.S. 130A-247(12)."
49 SECTION 6.3.(d) Penalties imposed and fees charged before the effective date of
50 this section are not abated or affected by this section, and the statutes that would be applicable
51 but for this section remain applicable to those penalties and fees.
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1 SECTION 6.3.(e) The Revisor of Statutes is authorized to alphabetize, number, and
2 renumber the definitions listed in G.S. 130A-247, as amended by subsection (a) of this section,
3 to ensure that all the definitions are listed in alphabetical order and numbered accordingly.
4 SECTION 6.3.(f) This section becomes effective October 1, 2021.
5 SECTION 6.4.(a) G.S. 18B-1100 reads as rewritten:
6 "§ 18B-1100. Commercial permits.
7 The Commission may issue the following commercial permits:
8 …
9 (21) Spirituous liquor special event permit.
10 (22) Nonresident spirituous liquor vendor permit."
11 SECTION 6.4.(b) This section is effective when it becomes law.
12
13 PART VII. EXPAND ALLOWABLE GROWLER SIZE
14 SECTION 7.1.(a) Rule. – For purposes of this section and its implementation,
15 "Growler Rule" means 14B NCAC 15C .0307 (Growlers).
16 SECTION 7.1.(b) Growler Rule. – Until the effective date of the revised permanent
17 rule that the ABC Commission is required to adopt pursuant to subsection (d) of this section, the
18 Commission shall implement the Growler Rule as provided in subsection (c) of this section.
19 SECTION 7.1.(c) Implementation. – Notwithstanding subsection (a) of 14B NCAC
20 15C .0307, a "growler" shall be defined as a rigid glass, ceramic, plastic, aluminum, or stainless
21 steel container with a closure or cap with a secure sealing that is no larger than 4 liters (1.0567
22 gallons) into which a malt beverage or unfortified wine is prefilled, filled, or refilled for
23 off-premises consumption.
24 SECTION 7.1.(d) Additional Rulemaking Authority. – The Commission shall adopt
25 a rule to amend the Growler Rule consistent with subsection (c) of this section. Notwithstanding
26 G.S. 150B-19(4), the rule adopted by the Commission pursuant to this section shall be
27 substantively identical to the provisions of subsection (c) of this section.
28 SECTION 7.1.(e) Effective Date. – This Part is effective when it becomes law.
29 Section 7.1(c) of this Part expires on the date that the rule adopted pursuant to Section 7.1(d) of
30 this Part becomes effective.
31
32 PART VIII. DISTILLERIES/AMEND TOUR REQUIREMENT FOR SALE OF BOTTLE
33 OF SPIRITUOUS LIQUOR FOR OFF-PREMISES CONSUMPTION
34 SECTION 8.1. G.S. 18B-1105(a)(4), as amended by Sections 2.2, 6.1, and 8.3 of
35 this act, reads as rewritten:
36 "(4) Sell spirituous liquor distilled or produced at the distillery in closed containers
37 to visitors who tour the distillery for consumption off the premises. The
38 length, content, and other parameters of the tour shall be at the discretion of
39 the distillery, and the distillery shall not be required to maintain records related
40 to tours. Sales under this subdivision are allowed only in a county where the
41 establishment of a county or municipal ABC store has been approved pursuant
42 to G.S. 18B-602(g). Spirituous liquor sold under this subdivision shall (i) be
43 listed as a code item for sale in the State, (ii) be sold at the price set by the
44 Commission for the code item pursuant to G.S. 18B-804(b), and (iii) have
45 affixed to its bottle any labeling requirements set by law. A bottle of spirituous
46 liquor sold under this subdivision may have personalized labeling affixed to
47 it that includes any other labeling requirements set by law. For purposes of
48 this subdivision, the term "personalized labeling" means the inclusion of the
49 name of the purchaser on the label."
50 SECTION 8.2. This Part becomes effective October 1, 2021, and applies to sales
51 made on or after that date.
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1
2 PART IX. CLARIFY LAW ON THE SALE, POSSESSION, AND CONSUMPTION OF
3 SPIRITUOUS LIQUOR AT A DISTILLERY
4 SECTION 9.1.(a) G.S. 18B-1105(a)(1) reads as rewritten:
5 "(1) Manufacture, purchase, import, possess and transport ingredients and
6 equipment used in the distillation or production of spirituous liquor. The
7 authorization to possess ingredients set forth in this subdivision includes the
8 possession of spirituous liquor not distilled or produced at the distillery that is
9 used for the production, research and development, or sample comparison of
10 spirituous liquor."
11 SECTION 9.1.(b) This section becomes effective October 1, 2021, and applies to
12 spirituous liquor possessed on or after that date.
13 SECTION 9.2.(a) G.S. 18B-1001(19) is amended by adding a new sub-subdivision
14 to read:
15 "h. Consumer tasting events authorized under this subdivision may be conducted
16 on any part of the licensed premises of the distillery, except as prohibited by
17 federal law."
18 SECTION 9.2.(b) This section becomes effective October 1, 2021, and applies to
19 consumer tastings held on or after that date.
20 SECTION 9.3.(a) G.S. 18B-1105 is amended by adding a new subsection to read:
21 "(d) Control of Location of Sale and Consumption on Premises. – Notwithstanding G.S.
22 18B-301(e), except as otherwise prohibited by federal law or the holder of the distillery permit,
23 an alcoholic beverage authorized to be sold or consumed under this section may be sold,
24 possessed, or consumed on any part of the licensed premises of the distillery. This section shall
25 not be construed to allow spirituous liquor in closed containers sold for off-premises consumption
26 to be consumed at the distillery."
27 SECTION 9.3.(b) This section becomes effective October 1, 2021, and applies to
28 the sale and consumption of alcoholic beverages on or after that date.
29
30 PART X. ALLOW ABC AGE VERIFICATION WITH SPECIAL IDENTIFICATION
31 CARDS FROM OTHER STATES
32 SECTION 10.1.(a) G.S. 18B-302(d) reads as rewritten:
33 "(d) Defense. – It is a defense to a violation of subsection (a) of this section if the seller
34 does any of the following:
35 (1) Shows that the purchaser produced a driver's license, a special identification
36 card issued under G.S. 20-37.7,G.S. 20-37.7 or issued by the state agency of
37 any other state authorized to issue similar official state special identification
38 cards for that state, a military identification card, or a passport, showing the
39 purchaser's age to be at least the required age for purchase and bearing a
40 physical description of the person named on the card reasonably describing
41 the purchaser.
42 (2) Produces evidence of other facts that reasonably indicated at the time of sale
43 that the purchaser was at least the required age.
44 (3) Shows that at the time of purchase, the purchaser utilized a biometric
45 identification system that demonstrated (i) the purchaser's age to be at least
46 the required age for the purchase and (ii) the purchaser had previously
47 registered with the seller or seller's agent a drivers license, a special
48 identification card issued under G.S. 20-37.7,G.S. 20-37.7 or issued by the
49 state agency of any other state authorized to issue similar official state special
50 identification cards for that state, a military identification card, or a passport
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1 showing the purchaser's date of birth and bearing a physical description of the
2 person named on the document."
3 SECTION 10.1(b) This section becomes effective December 1, 2021, and applies to
4 offenses committed on or after that date.
5
6 PART XI. ALLOW SALE AND DELIVERY OF NO MORE THAN TWO ALCOHOLIC
7 BEVERAGE DRINKS AT A COLLEGE OR UNIVERSITY STADIUM, ATHLETIC
8 FACILITY, ARENA, OR SPORTING EVENT
9 SECTION 11.1.(a) G.S. 18B-1010(b) is repealed.
10 SECTION 11.1.(b) This section becomes effective when it becomes law, and applies
11 to the sale and delivery of alcoholic beverages on or after that date.
12
13 PART XII. TIME OF SALE TECHNICAL CORRECTION
14 SECTION 12.1. G.S. 18B-1004(a) reads as rewritten:
15 "(a) Hours. – Except as otherwise provided in this section, it shall be unlawful to sell malt
16 beverages, unfortified wine, fortified wine, or mixed beverages between the hours of 2:00 A.M.
17 and 7:00 A.M., or to consume any of those alcoholic beverages between the hours of 2:30 A.M.
18 and 7:00 A.M., in any place that has been issued a permit under G.S. 18B-1001.G.S. 18B-1001
19 or G.S. 18B-1105."
20
21 PART XIII. MIXED BEVERAGE ELECTION AMENDMENT
22 SECTION 13.1.(a) G.S. 18B-602(h) reads as rewritten:
23 "(h) Mixed Beverage Elections. – The ballot for a mixed beverage election shall state the
24 proposition as follows:
25 To permit the sale of mixed beverages in hotels, restaurants, private clubs, community
26 theatres, and convention centers.centers and the "on-premises" and "off-premises" sale of malt
27 beverages and unfortified wine in qualified establishments.
28 [] FOR
29 [] AGAINST"
30 SECTION 13.1.(b) G.S. 18B-603(d) reads as rewritten:
31 "(d) Mixed Beverage Elections. – If a mixed beverage election is held under
32 G.S. 18B-602(h) and the sale of mixed beverages is approved, the Commission may issue permits
33 to qualified persons and establishments in the jurisdiction that held the election as follows:
34 (1) The Commission may issue mixed beverage permits.
35 (2) The Commission may issue on-premises malt beverage, unfortified wine, and
36 fortified wine permits for establishments with mixed beverage permits,
37 regardless of any other election or any local act concerning sales of those kinds
38 of alcoholic beverages.
39 (3) The Commission may issue off-premises malt beverage permits to any
40 establishment that meets the requirements under G.S. 18B-1001(2) in any
41 township or incorporated municipality whichjurisdiction that has voted to
42 permit the sale of mixed beverages, regardless of any other local act
43 concerning sales of those kinds of alcoholic beverages. The Commission may
44 also issue off-premises unfortified wine permits to any establishment that
45 meets the requirements under G.S. 18B-1001(4) in any township or
46 incorporated municipality whichjurisdiction that has voted to permit the sale
47 of mixed beverages, regardless of any other local act concerning sales of those
48 kinds of alcoholic beverages.
49 (3a) The Commission may issue either of the following permits in any jurisdiction
50 that has voted to permit the sale of mixed beverages, regardless of any other
51 local act concerning sales of those kinds of alcoholic beverages:
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1 a. On-premises malt beverage permits to any establishment that meets
2 the requirements of G.S. 18B-1001(1).
3 b. On-premises unfortified wine permits to any establishment that meets
4 the requirements of G.S. 18B-1001(3).
5 (4) The Commission may issue brown-bagging permits for private clubs and
6 congressionally chartered veterans organizations but may no longer issue and
7 may not renew brown-bagging permits for restaurants, hotels, and community
8 theatres. A restaurant, hotel, or community theatre may not be issued a mixed
9 beverage permit under subdivision (1) until it surrenders its brown-bagging
10 permit.
11 (5) The Commission may continue to issue culinary permits for establishments
12 that do not have mixed beverage permits. An establishment may not be issued
13 a mixed beverage permit under subdivision (1) until it surrenders its culinary
14 permit."
15 SECTION 13.1.(c) G.S. 18B-603(d)(3a), as enacted in subsection (b) of this section,
16 shall apply to jurisdictions that have approved the sale of mixed beverages prior to the effective
17 date of this section unless the governing body of that jurisdiction adopts a resolution no later than
18 60 days after the effective date of this section requesting an election be held pursuant to G.S.
19 18B-601. If an election is requested by resolution, the propositions in G.S. 18B-602(a)(2) and
20 G.S. 18B-602(d)(2) shall be voted upon in that jurisdiction and the results of that election shall
21 control the issuance of on-premises malt beverage permits and on-premises unfortified wine
22 permits in that jurisdiction unless another law applies.
23 SECTION 13.1.(d) This section becomes effective 90 days after this act becomes
24 law.
25
26 PART XIV. AMEND THE REQUIREMENTS THAT MUST BE MET BEFORE
27 CERTAIN SMALL TOWNS MAY HOLD A MIXED BEVERAGE ELECTION
28 SECTION 14.1 G.S. 18B-600(e3) reads as rewritten:
29 "(e3) Small Town Mixed Beverage Elections. – A town may hold a mixed beverage election
30 if the town (i) has at least 200 registered voters and voters, is located in a county bordering the
31 Neuse River and Pamlico Sound that has not approved the sale of mixed beverages beverages,
32 and that county has only one city that has approved the sale of mixed beverages. beverages or
33 (ii) has at least 200 registered voters, has a total area of less than one square mile, operates an
34 ABC store, and is located in a county that has at least three cities that have approved the sale of
35 mixed beverages. Provided, that if a town that qualifies for an election under this subsection
36 approves the sale of mixed beverages, mixed beverages permittees in the town may purchase
37 liquor from the ABC store designated by any local ABC board in any other city that has approved
38 the sale of mixed beverages."
39
40 PART XV. ALLOW ABC STORES TO SELL REFRIGERATED BEVERAGES
41 SECTION 15.1. G.S. 18B-800 is amended by adding a new subsection to read:
42 "(c4) Refrigerated Beverages. – ABC stores may sell alcoholic beverages authorized for
43 sale under this section in a refrigerated unit. For purposes of this subsection, the term
44 "refrigerated unit" means a refrigerated merchandiser or other appliance that is artificially kept
45 cool and suitable to be used to store food and drink."
46 SECTION 15.2. This Part becomes effective October 1, 2021, and applies to sales
47 on or after that date.
48
49 PART XVI. ALTERNATING BREWERY PROPRIETORSHIP CLARIFICATION
50 SECTION 16.1 G.S. 18B-903(c1) reads as rewritten:
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1 (c1) Construction of Change in Ownership. – Nothing in subsection (c) of this section shall
2 be construed to limit alternating brewery proprietorships in which the holder of a brewery permit
3 leases or otherwise makes available its facility to another holder of a brewery permit. For
4 purposes of this section, if authorized by federal law, the host brewery may also hold, at the same
5 facility, unfortified winery, fortified winery, and distillery permits pursuant to G.S. 18B-1101,
6 G.S. 18B-1102 and G.S. 18B-1105. In this arrangement, the tenant brewery shall maintain title
7 to the malt beverages at all states of the brewing process and shall be responsible for all aspects
8 associated with manufacturing the product, including maintaining appropriate records, obtaining
9 label approval in its own name, and remitting the appropriate taxes. Alternating brewery
10 proprietorships are authorized between affiliated breweries, but shall not be used as a means to
11 allocate production quantities between affiliated breweries to obtain a malt beverage wholesaler
12 permit pursuant to G.S. 18B-1104(a)(8) where either brewery would not otherwise qualify for a
13 permit, and the Commission shall have no authority to grant an exemption to this requirement
14 pursuant to G.S. 18B-1116(b)."
15
16 PART XVII. CLARIFY RESTAURANT DEFINITION
17 SECTION 17.1 G.S. 18B-1000(6) reads as rewritten:
18 "(6) Restaurant. – An establishment substantially engaged in the business of
19 preparing and serving meals. To qualify as a restaurant, an establishment's
20 gross receipts from food and nonalcoholic beverages shall be not less than
21 thirty percent (30%) of the total gross receipts from food, nonalcoholic
22 beverages, and alcoholic beverages sold for on-premises consumption. A
23 restaurant shall also have a kitchen and an inside dining area with seating for
24 at least 36 people. If the restaurant is located on an 18-hole golf course, the
25 premises shall include the parking lot and the playing area of the golf course,
26 including the teeing areas, greens, fairways, roughs, hazards, and cart paths."
27
28 PART XVIII. ALLOW MIXED BEVERAGE SALES AT CERTAIN DISTILLERIES
29 SECTION 18.1. G.S. 18B-1105(a) is amended by adding a new subdivision to read:
30 "(4b) If the distillery is located on a property used for bona fide farm purposes, as
31 defined in G.S. 160D-102(3), sell mixed beverages containing only spirituous
32 liquor produced at the distillery for consumption on the premises, regardless
33 of the results of any local mixed beverage election."
34
35 PART XIX. OFF-SITE AIRPORT PERMITTEE STORAGE
36 SECTION 19.1. G.S. 18B-1001 is amended by adding a new subdivision to read:
37 "(21) Airport Central Storage Permit. – A permit under this subdivision may be
38 issued to the owner of a bonded storage warehouse that meets the federal
39 Transportation Security Administration (TSA) security standards (49 C.F.R.
40 §§ 1542.1 through 1542.307). This permit authorizes the permittee to contract
41 with retail permittees holding permits issued pursuant to G.S. 18B-1001(1),
42 (3), (5) and (10) with one or more retail locations at airports which service
43 airplanes boarding at least 150,000 passengers annually to do the following:
44 (i) store at a central receiving facility located on or within five miles of the
45 airport property and outside the retail permittee’s licensed premises alcoholic
46 beverages to be sold or served at the retail permittee’s airport locations as
47 approved by the Commission; and (ii) transport alcoholic beverages from the
48 central receiving facility to the retail permittee’s premises or support locations
49 within the airport terminal pursuant to subsections (d) and (e) of G.S. 18B-
50 1115. Alcoholic beverages stored pursuant to this subdivision shall be the
51 property of the retail permittee. The portion of the airport central storage
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1 permitted premises where the retail permittee’s alcoholic beverages are store
2 shall be deemed an extension of the retail permittee’s permitted premises for
3 storage only and subject to inspection pursuant to G.S. 18B-503."
4 SECTION 19.2. G.S. 18B-902(d) is amended by adding a new subdivision to read:
5 "(49) Airport central storage permit. – $400.00."
6 SECTION 19.3 G.S. 18B-1100 reads as rewritten:
7 "§ 18B-1100. Commercial permits.
8 The Commission may issue the following commercial permits:
9 …
10 (23) Airport central storage permit."
11 SECTION 19.4. Article 10 of Chapter 18B of the General Statutes is amended by
12 adding a new section to read:
13 "§ 18B-1011. Retail permittee off-site airport storage.
14 (a) Permittees holding permits issued pursuant to G.S. 18B-1001(1), (3), (5) and (10) for
15 premises located within airport terminals may contract with an airport central storage permittee
16 for storage at the airport central storage permittee’s licensed premises of the permittee’s alcoholic
17 beverages to be sold at the retail permittee’s airport locations as authorized by the Commission.
18 The permittee may contract with the airport central storage permittee to transport the retail
19 permittee’s alcoholic beverages from the airport central storage facility to the retail permittee’s
20 premises or support location.
21 (b) The location where the retail permittee’s alcoholic beverages are stored on the airport
22 central storage permittee’s premises shall be deemed an extension of the retail permittee’s
23 licensed premises for purposes of this Chapter."
24 SECTION 19.5. G.S. 18B-1203(a) reads as rewritten:
25 "(a) Each agreement shall designate the sales territory of the wholesaler. No winery may
26 enter into more than one agreement for each brand of wine or beverage it offers in any territory.
27 A wholesaler shall not distribute any brand of wine to a retailer whose premises are located
28 outside the territory designated in the wholesaler's agreement for that brand.brand, except to a
29 retail permittee's off-site airport storage premises pursuant to G.S. 18B-1011. With the approval
30 of the Commission, a wholesaler may distribute wine outside the wholesaler's designated territory
31 during periods of temporary service interruption when requested to do so by the winery and the
32 wholesaler whose service is interrupted. Unless the winery and wine wholesaler agree otherwise
33 in writing, the territory designated as the wholesaler's "area of primary sales responsibility" as of
34 the effective date of this section shall be the wholesaler's designated sales territory.
35 Redesignations of sales territories occurring after July 1, 2011, shall be reported to the
36 Commission within 30 days. No provisions of this Article, however, may prohibit the
37 continuation of a multi-wholesaler agreement entered into before March 21, 1983, as between
38 the winery and the original wine wholesalers thereto, provided that upon termination of any such
39 agreement, the affected territory shall be designated for a single wholesaler."
40 SECTION 19.6. G.S. 18B-1303(a) reads as rewritten:
41 "(a) Filing. – It is unlawful for a supplier to provide malt beverages to a wholesaler unless
42 the Commission has received notification from the supplier designating the brands of the supplier
43 which the wholesaler is authorized to sell and the territory in which such sales may take place. If
44 the supplier sells several brands, the agreement need not apply to all brands. A franchise
45 agreement applies to all supplier products under the same brand name, and different categories
46 of products manufactured under a common identifying trade name are considered to be the same
47 brand. No supplier may provide by a distribution agreement for the distribution of a brand to
48 more than one wholesaler for the same territory. A wholesaler shall not distribute any brand of
49 malt beverage to a retailer whose premises are located outside the territory specified in the
50 wholesaler's distribution agreement for that brand.brand, except to a retail permittee's off-site
51 airport storage premises pursuant to G.S. 18B-1011. A wholesaler may, however, with the
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1 approval of the Commission distribute malt beverages outside its designated territory during
2 periods of temporary service interruption when requested to do so by the supplier and the
3 wholesaler whose service is interrupted."
4 SECTION 19.6. This Part becomes effective 90 days after this act becomes law.
5
6
7 PART XX. AUTHORIZATION OF SOCIAL DISTRICTS
8 SECTION 20.1. Article 6 of Chapter 153A of the General Statutes is amended by
9 adding a new section to read:
10 "§ 153A-145.9. Authorization of social district.
11 A county may adopt an ordinance designating a social district for use in accordance with
12 G.S. 18B-904.1."
13 SECTION 20.2. Article 8 of Chapter 160A of the General Statutes is amended by
14 adding a new section to read:
15 "§ 160A-205.4. Authorization of social district.
16 A city may adopt an ordinance designating a social district for use in accordance with
17 G.S. 18B-904.1."
18 SECTION 20.3. Article 9 of Chapter 18B of the General Statutes is amended by
19 adding a new section to read:
20 "§ 18B-904.1. Authorization and regulation of social districts.
21 (a) Definitions. – The following definitions apply in this section:
22 (1) Permittee. – An establishment holding any of the following permits issued by
23 the Commission:
24 a. An on-premises malt beverage permit issued pursuant to
25 G.S. 18B-1001(1).
26 b. An on-premises unfortified wine permit issued pursuant to
27 G.S. 18B-1001(3).
28 c. An on-premises fortified wine permit issued pursuant to
29 G.S. 18B-1001(5).
30 d. A mixed beverages permit issued pursuant to G.S. 18B-1001(10).
31 e. A distillery permit issued pursuant to G.S. 18B-1100(5).
32 (2) Social district. – A defined outdoor area in which a person may consume
33 alcoholic beverages sold by a permittee. This term does not include the
34 permittee's licensed premises or an extended area allowed under
35 G.S. 18B-904(h).
36 (b) Authorization. – Pursuant to G.S. 153A-145.9, a county may adopt an ordinance
37 designating a social district in the parts of the county outside any city. Pursuant to
38 G.S. 160A-205.4, a city may adopt an ordinance designating a social district.
39 (c) Requirements for Designation. – A social district designated under this section shall
40 meet all of the following requirements:
41 (1) The social district shall be clearly defined with signs posted in a conspicuous
42 location indicating which area is included in the social district, the days and
43 hours during which alcoholic beverages may be consumed in the social
44 district, the telephone number for the ALE Division and the local law
45 enforcement agency with jurisdiction over the area comprising the social
46 district, and a clear statement that an alcoholic beverage purchased for
47 consumption in a social district shall (i) only be consumed in the social district
48 and (ii) be disposed of before the person in possession of the alcoholic
49 beverage exits the social district unless the person is reentering the licensed
50 premises where the alcoholic beverage was purchased. The hours set by a city
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1 or county during which alcoholic beverages may be consumed in a social
2 district shall be in accordance with G.S. 18B-1004.
3 (2) The city or county shall establish management and maintenance plans for the
4 social district and post these plans, along with a rendering of the boundaries
5 of the social district and days and hours during which alcoholic beverages may
6 be consumed in the social district, on the website for the city or county. The
7 social district shall be maintained in a manner that protects the health and
8 safety of the general public.
9 (3) Before allowing consumption of alcoholic beverages in a social district, the
10 city or county shall submit to the Commission a detailed map of the social
11 district with the boundaries of the social district clearly marked and the days
12 and hours during which alcoholic beverages may be consumed in the social
13 district.
14 (d) Requirements for Sale of Alcoholic Beverages. – A permittee located in or contiguous
15 to a social district may sell alcoholic beverages for consumption within the social district it is
16 located in or contiguous to in accordance with the following requirements:
17 (1) The permittee shall only sell and serve alcoholic beverages on its licensed
18 premises.
19 (2) The permittee shall only sell alcoholic beverages for consumption in the social
20 district in a container that meets all of the following requirements:
21 a. The container clearly identifies the permittee from which the alcoholic
22 beverage was purchased.
23 b. The container clearly displays a logo or some other mark that is unique
24 to the social district in which it will be consumed.
25 c. The container is not comprised of glass.
26 d. The container displays, in no less than 12-point font, the statement,
27 "Drink Responsibly – Be 21."
28 e. The container shall not hold more than 16 fluid ounces.
29 (3) The permittee shall not allow a person to enter or reenter its licensed premises
30 with an alcoholic beverage not sold by the permittee.
31 (e) Requirements for Possession and Consumption of Alcoholic Beverages. – The
32 possession and consumption of an alcoholic beverage in a social district is subject to all of the
33 following requirements:
34 (1) Only alcoholic beverages purchased from a permittee located in or contiguous
35 to the social district may be possessed and consumed.
36 (2) Alcoholic beverages shall only be in containers meeting the requirements set
37 forth in subsection (d) of this section.
38 (3) Alcoholic beverages shall only be possessed and consumed during the days
39 and hours set by the city or county in accordance with subsection (b) of this
40 section.
41 (4) Nothing in this subdivision shall be construed as authorizing the sale and
42 delivery of alcoholic beverage drinks in excess of the limitation set forth in
43 G.S. 18B-1010.
44 (5) A person shall dispose of any alcoholic beverage in the person's possession
45 prior to exiting the social district unless the person is reentering the licensed
46 premises where the alcoholic beverage was purchased.
47 (f) Additional Requirements. – The Commission may adopt rules to impose requirements
48 in addition to the requirements set forth in subsections (c) through (e) of this section."
49
50 PART XXI. MAKE PERMANENT THE EXPANSION OF LICENSED PREMISES FOR
51 PURPOSES OF OUTDOOR SEATING
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1 SECTION 21.1. Article 6 of Chapter 153A of the General Statutes is amended by
2 adding a new section to read:
3 "§ 153A-145.10. Authorization of expanded area for ABC licensed premises.
4 In accordance with G.S. 18B-904(h), a county may adopt an ordinance authorizing permittees
5 holding a permit under Article 10 or 11 of Chapter 18B of the General Statutes to utilize an area
6 that is not part of the permittee's licensed premises for the outdoor possession and consumption
7 of alcoholic beverages sold by the permittee."
8 SECTION 21.2. Article 8 of Chapter 160A of the General Statutes is amended by
9 adding a new section to read:
10 "§ 160A-205.5. Authorization of expanded area for ABC licensed premises.
11 In accordance with G.S. 18B-904(h), a city may adopt an ordinance authorizing permittees
12 holding a permit under Article 10 or 11 of Chapter 18B of the General Statutes to utilize an area
13 that is not part of the permittee's licensed premises for the outdoor possession and consumption
14 of alcoholic beverages sold by the permittee."
15 SECTION 21.3. G.S. 18B-904 reads as rewritten:
16 "§ 18B-904. Miscellaneous provisions concerning permits.
17 …
18 (h) Extension of Licensed Premises. – A permittee holding a permit issued under Article
19 10 or 11 of this Chapter that allows the on-premises consumption of alcoholic beverages may
20 utilize an area that is not part of the permittee's licensed premises for the outdoor possession and
21 consumption of alcoholic beverages sold by the permittee subject to all of the following
22 requirements:
23 (1) If the licensed premises is located in a city, an ordinance has been adopted by
24 the city authorizing permittees to expand their licensed premises. If the
25 licensed premises is located outside of a city, an ordinance has been adopted
26 by the county authorizing permittees to expand their licensed premises.
27 (2) If the property to which the premises will be extended to is not owned by the
28 permittee, the owner of the property has provided written permission to the
29 permittee allowing the use of the property for the purpose set forth in this
30 subsection.
31 (3) The permittee has provided written notification, including the diagram
32 required under subdivision (5) of this subsection and, if applicable, a copy of
33 the written permission required under subdivision (2) of this subsection, to the
34 district office of the ALE Division, and local law enforcement agency, with
35 jurisdiction over the licensed premises.
36 (4) The permittee shall visibly and vertically mark off the extended area so a
37 reasonable person could distinguish between the extended area and any
38 sidewalk or walkway.
39 (5) The permittee shall maintain a diagram on the licensed premises detailing the
40 size and location of the extended area. The diagram required under this
41 subdivision shall have the boundaries of the extended area clearly marked,
42 specify the types of barriers used to mark the boundaries of the extended area,
43 and specify the number of tables and seats placed in the extended area.
44 (6) The extended area shall not be used to increase the occupant load of the
45 licensed premises. For purposes of this section, "occupant load" is as used in
46 Section 1004 of the 2018 North Carolina Building Code.
47 (7) The extended area shall comply with all applicable laws governing
48 accessibility.
49 (8) Except as allowed under G.S. 18B-904.1 or to reenter the licensed premises,
50 a person shall not exit an extended area with an alcoholic beverage purchased
51 from the permittee.
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1 (9) Any additional requirements imposed by the Commission through the
2 adoption of rules."
3
4 PART XXII. SPECIFY THAT ALE AUTHORITY TO INSPECT PREMISES INCLUDES
5 SOCIAL DISTRICTS AND EXTENDED AREAS
6 SECTION 22.1 G.S. 18B-502(a) reads as rewritten:
7 "(a) Authority. – To procure evidence of violations of the ABC law, alcohol
8 law-enforcement agents, employees of the Commission, local ABC officers, and officers of local
9 law-enforcement agencies that have contracted to provide ABC enforcement under
10 G.S. 18B-501(f) shall have authority to investigate the operation of each licensed premises for
11 which an ABC permit has been issued, to make inspections that include viewing the entire
12 premises, and to examine the books and records of the permittee. The inspection authorized by
13 this section may be made at any time it reasonably appears that someone is on the premises.
14 Alcohol law-enforcement agents are also authorized to be on the premises to the extent necessary
15 to enforce the provisions of Article 68 of Chapter 143 of the General Statutes. For purposes of
16 this subsection, the phrase "licensed premises for which an ABC permit has been issued" includes
17 a social district authorized under G.S. 18B-904.1 and an extended area authorized under
18 G.S. 18B-904(h)."
19
20 PART XXIII. ALLOW TRADE OR EXCHANGE OF SPIRITUOUS LIQUOR
21 SECTION 23.1. G.S. 18B-103 reads as rewritten:
22 "§ 18B-103. Exemptions.
23 The All of the following activities shall be permitted:
24 (1) The use of ethyl alcohol for scientific, chemical, pharmaceutical, mechanical,
25 and industrial purposes;purposes.
26 (2) The use of ethyl alcohol by persons authorized to obtain it tax free, as provided
27 by federal law;law.
28 (3) The use of ethyl alcohol in the manufacture and preparation of any product
29 unfit for use as a beverage;beverage.
30 (4) The use of alcoholic beverages by licensed physicians, druggists, or dental
31 surgeons for medicinal or pharmaceutical purposes; or the use of alcoholic
32 beverages by medical facilities established and maintained for the treatment
33 of patients addicted to the use of alcohol or drugs;drugs.
34 (5) The use of grain alcohol by college, university or State laboratories, and by
35 manufacturers of medicine, for compounding, mixing, or preserving
36 medicines or medical preparations, or for surgical purposes;purposes.
37 (5a) The manufacture, possession, and consumption of alcoholic beverages for the
38 purpose of conducting scientific, chemical, pharmaceutical, mechanical,
39 industrial, and educational research in connection with teaching, research, or
40 extension programs conducted by, or under the supervision of, an instructor at
41 an accredited community college, public or private college or university, or
42 an extension agent in connection with educational programs and activities
43 offered by the North Carolina Cooperative Extension Service;Service.
44 (6) The manufacture, importation, and possession of denatured alcohol produced
45 and used as provided by federal law;law.
46 (7) The manufacture or sale of cider or vinegar;vinegar.
47 (8) The possession and use of unfortified wine or fortified wine for sacramental
48 purpose by any organized church or ordained minister, including in public
49 school buildings when the use of those buildings is approved by the local
50 school board;board.
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1 (9) The possession and use of alcohol acquired for controlled-drinking programs
2 as authorized under G.S. 20-139.1(g);G.S. 20-139.1(g).
3 (10) The use of spirituous liquor in the manufacture of flavors or flavoring extracts
4 that are unfit for beverage use;use.
5 (11) Under the direct supervision of an instructor during a culinary class that is part
6 of an established culinary curriculum at an accredited college or university,
7 the delivery to or possession or consumption by a student who is less than 21
8 years of age, when the student is required to taste or imbibe the alcoholic
9 beverage during a culinary class conducted pursuant to the curriculum.
10 (12) The trade or exchange of lawfully purchased spirituous liquor if all of the
11 following requirements are met:
12 a. The transaction only involves the trade or exchange of lawfully
13 purchased spirituous liquor for other lawfully purchased spirituous
14 liquor.
15 b. The trade or exchange is only between individuals, for personal use
16 only, and not for resale.
17 c. The spirituous liquor to be traded or exchanged is or has been
18 approved by the Commission for sale in this State and is not unfit for
19 human consumption.
20 d. The spirituous liquor is not an antique spirituous liquor as that term is
21 defined in G.S. 18B-101(5a)."
22 SECTION 23.2. The Alcoholic Beverage Control Commission shall adopt
23 temporary rules to implement the provisions of this Part. Temporary rules adopted in accordance
24 with this section shall remain in effect until permanent rules that replace the temporary rules
25 become effective.
26 SECTION 23.3. This Part becomes effective October 1, 2021, and applies to trades
27 or exchanges made on or after that date.
28
29 PART XXIV. DISTRIBUTE ALCOHOL WITHOUT DISCRIMINATION
30 SECTION 24.1. G.S. 18B-204 reads as rewritten:
31 "§ 18B-204. State warehouse.
32 (a) Contracting for Private Warehouse. – The Commission shall provide for the receipt,
33 storage, and distribution of spirituous liquor by one of the following methods:
34 (1) By negotiated contract with a privately owned warehouse;warehouse.
35 (2) By negotiated contract with privately owned warehouses in several regions of
36 the State. The Commission shall choose locations for the warehouses to
37 promote efficient distribution of spirituous liquor to all local boards, to
38 maintain control of that liquor, and to insure the Commission's supervision of
39 warehousing procedures; orprocedures.
40 (3) By the construction of a warehouse, and by contracting for receipt, storage
41 and distribution of spirituous liquor by an independent contractor, by
42 negotiated contract or by the use of procedures for purchase and contract by
43 State agencies, for the operation of that warehouse.
44 (a1) Distribution of Spirituous Liquor; No Discrimination. – The Commission shall make
45 a good-faith effort, without discrimination, to make all spirituous liquor distributed by the
46 Commission available to all local boards. The Commission shall adopt rules regarding the
47 ordering of spirituous liquor by local boards.
48 (a2) Providing Ordering Advantage Prohibited. – A contractor that has entered into a
49 contract pursuant to this section shall not directly or indirectly provide information to a local
50 board which gives any advantage to one board over another board concerning product selection,
51 availability, or otherwise obtaining spirituous liquor distributed by the Commission. Any
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1 violation of this subsection by the contractor, an employee of the contractor, or any person
2 working in concert with the contractor shall be grounds for the Commission to terminate the
3 contract.
4 (a3) Limited Product Record Required. – The Commission shall maintain a record of all
5 products that the Commission either (i) limits distribution of due to limited availability or (ii)
6 allocates the distribution of to local boards. The record shall be made available to all local boards
7 and shall include the following for all limited distribution or allocated products received by the
8 Commission:
9 (1) The product code number.
10 (2) The brand name.
11 (3) The quantity received by the Commission.
12 (4) The date received by the Commission.
13 (5) The name of each local board that received the product, the date each local
14 board received the product, and the quantity each local board received.
15 (b) Audits and Inspections. – Contracts entered into pursuant to this section shall provide
16 all of the following:
17 (1) That an annual audited financial statement be prepared and submitted to the
18 Commission by the person contracting with the Commission;Commission.
19 (2) That all warehouse records be available for inspection at all times by the
20 Commission and the Department of Revenue; andRevenue.
21 (3) That all warehouse accounts relating to the receipt, storage, or distribution of
22 spirituous liquor be subject to audit by the State Auditor.
23 (c) Emergency or Temporary Operation. – If the independent operator of a warehouse
24 changes, or if some other occurrence results in substantially impeded distribution of spirituous
25 liquor from a warehouse, the Commission may operate that warehouse on an interim emergency
26 or temporary basis.
27 (d) Rules. – The Commission may adopt rules regarding warehouse operations, and
28 violations of those rules by a party with whom the Commission contracts shall be grounds for
29 termination by the Commission of a contract entered into under this section."
30 SECTION 24.2. This Part becomes effective January 1, 2022, and applies to all
31 spirituous liquor received or distributed on or after that date.
32
33 PART XXV. ALCOHOLIC BEVERAGE MANUFACTURE SALES TAX EXEMPTION
34 SECTION 25.1. G.S. 105-164.13 reads as rewritten:
35 "§ 105-164.13. Retail sales and use tax.
36 The sale at retail and the use, storage, or consumption in this State of the following items are
37 specifically exempted from the tax imposed by this Article:
38 …
39 (5q) Sales of machinery, equipment, parts, and accessories to the following
40 permittees for use in the manufacture of the following items and supplies and
41 ingredients used or consumed by the permittee in the manufacturing process:
42 a. The holder of an unfortified winery permit for the manufacture of
43 unfortified wine, as authorized in G.S. 18B-1101.
44 b. The holder of a fortified winery permit for the manufacture of fortified
45 wine, as authorized in G.S. 18B-1102.
46 c. The holder of a brewer permit for the manufacture of malt beverages,
47 as authorized in G.S. 18B-1104.
48 d. The holder of a distillery permit for the manufacture of spirituous
49 liquor, as authorized in G.S. 18B-1105.
50 …."
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1 SECTION 25.2. This Part becomes effective August 1, 2021, and applies to sales
2 made on or after that date.
3
4 PART XXVI. CLARIFY DELIVERY SERVICE PERMIT
5 SECTION 26.1 G.S. 18B-1001.4(e) reads as rewritten:
6 "(e) Scope and Construction. – A delivery service permit is not required for a common
7 carrier lawfully transporting or shipping alcoholic beverages. Nothing in this section shall be
8 construed as exempting the delivery of alcoholic beverages pursuant to a delivery service permit
9 from the requirements set forth in Article 4 of Chapter 18B of the General Statutes. Nothing in
10 this section shall be construed to require a technology services company to obtain a delivery
11 service permit if the company does not employ or contract with delivery drivers, but rather
12 provides software or an application that connects consumers and licensed retailers for the
13 delivery of alcoholic beverages from the licensed retailer. Nothing in this section shall be
14 construed to require a retailer that holds a permit issued pursuant to subdivisions (1) through (6)
15 and (16) of G.S. 18B-1001 to obtain a delivery service permit in order for employees of the retail
16 permittee to deliver malt beverages, unfortified wine, or fortified wine to a location designated
17 by the purchaser, however, the other provisions of this section apply to the retailer."
18
19
20 PART XXVII. REGULATE ALCOHOL CONSUMABLES
21 SECTION 27.1. G.S. 18B-101 reads as rewritten:
22 "§ 18B-101. Definitions.
23 As used in this Chapter, unless the context requires otherwise:
24 …
25 (4) "Alcoholic beverage" means any beverage containing at least one-half of one
26 percent (0.5%) alcohol by volume, including malt beverages, unfortified wine,
27 fortified wine, spirituous liquor, and mixed beverages.mixed beverages, and
28 any alcohol consumable.
29 (4a) "Alcohol consumable" means any manufactured and packaged ice cream, ice
30 pop, gum-based, or gelatin-based food product containing at least one-half of
31 one percent (0.5%) alcohol by volume.
32 …
33 (7) "Fortified wine" means any wine, of wine or alcohol consumable containing
34 more than sixteen percent (16%) and no more than twenty-four percent (24%)
35 alcohol by volume, made by fermentation from grapes, fruits, berries, rice, or
36 honey; or by the addition of pure cane, beet, or dextrose sugar; or by the
37 addition of pure brandy from the same type of grape, fruit, berry, rice, or honey
38 that is contained in the base wine and produced in accordance with the
39 regulations of the United States.
40 …
41 (9) "Malt beverage" means beer, lager, malt liquor, ale, porter, and any other
42 brewed or fermented beverage or alcohol consumable except unfortified or
43 fortified wine as defined by this Chapter, containing at least one-half of one
44 percent (0.5%), and not more than fifteen percent (15%), alcohol by volume.
45 Any malt beverage containing more than six percent (6%) alcohol by volume
46 shall bear a label clearly indicating the alcohol content of the malt beverage.
47 …
48 (14) "Spirituous liquor" or "liquor" means distilled spirits or ethyl alcohol, and any
49 alcohol consumable containing distilled spirits or ethyl alcohol, including
50 spirits of wine, whiskey, rum, brandy, gin and all other distilled spirits and
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1 mixtures of cordials, liqueur, and premixed cocktails, in closed containers for
2 beverage use regardless of their dilution.
3 …
4 (15) "Unfortified wine" means any wine of or alcohol consumable containing
5 sixteen percent (16%) or less alcohol by volume made by fermentation from
6 grapes, fruits, berries, rice, or honey; or by the addition of pure cane, beet, or
7 dextrose sugar; or by the addition of pure brandy from the same type of grape,
8 fruit, berry, rice, or honey that is contained in the base wine and produced in
9 accordance with the regulations of the United States."
10 SECTION 27.2. G.S. 18B-206(a) reads as rewritten:
11 "(a) Authority to Set Standards. – The Commission may set standards and adopt rules for
12 malt beverages, unfortified wine, fortified wine, and spirituous liquor alcoholic beverages to
13 protect the public against alcoholic beverages containing harmful or impure substances, alcoholic
14 beverages containing an improper balance of substances as determined by the Commission,
15 spurious or imitation alcoholic beverages, and alcoholic beverages unfit for human consumption.
16 In setting standards and in issuing rules relating to them, the Commission may follow federal
17 guidelines for standards of identity, labeling and advertising contained in Title 27 of the Code of
18 Federal Regulations, or may adopt more restrictive standards."
19 SECTION 27.3. G.S. 18B-804(b) reads as rewritten:
20 "(b) Sale Price of Spirituous Liquor. – The sale of spirituous liquor, including antique
21 spirituous liquor, sold at the uniform State price shall consist of the following components:
22 …
23 (6) A bottle charge of one cent (1¢) on each bottle containing 50 milliliters or less
24 and five cents (5¢) on each bottle containing more than 50 milliliters. For any
25 nonbottled product, a charge of one cent (1¢) on each stock keeping unit
26 containing not more than 50 milliliters and five cents (5¢) on each stock
27 keeping unit containing more than 50 milliliters.
28 …
29 (6b) An additional bottle charge for local boards of one cent (1¢) on each bottle
30 containing 50 milliliters or less and five cents (5¢) on each bottle containing
31 more than 50 milliliters. For any nonbottled product, a charge of one cent (1¢)
32 on each stock keeping unit containing not more than 50 milliliters and five
33 cents (5¢) on each stock keeping unit containing more than 50 milliliters.
34 …."
35 SECTION 27.4. G.S. 18B-805 reads as rewritten:
36 "§ 18B-805. Distribution of revenue.
37 …
38 (b) Primary Distribution. – Before making any other distribution, a local board shall first
39 pay the following from its gross receipts:
40 …
41 (4) Each month the local board shall pay to the county commissioners of the
42 county where the charge is collected the proceeds from the bottle charge
43 required by G.S. 18B-804(b)(6), to be spent by the county commissioners for
44 the purposes stated in subsection (h) of this section.
45 (c) Other Statutory Distributions. – After making the distributions required by subsection
46 (b), a local board shall make the following quarterly distributions from the remaining gross
47 receipts:
48 (1) Before making any other distribution under this subsection, the local board
49 shall set aside the clear proceeds of the three and one-half percent (3 1/2%)
50 markup provided for in G.S. 18B-804(b)(5) and the bottle charge provided for
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1 in G.S. 18B-804(b)(6b), to be distributed as part of the remaining gross
2 receipts under subsection (e) of this section.
3 …."
4 SECTION 27.5. Section 29.1 of this Part becomes effective December 1, 2021, and
5 applies to offenses committed on or after that date. Sections 29.3 and 29.4 of this Part become
6 effective December 1, 2021, and apply to spirituous liquor sold on or after that date. The
7 remainder of this Part is effective when it becomes law.
8
9
10 PART XXVIII. COMMON CARRIER ABC PERMIT
11 SECTION 28.1. G.S. 18B-1001 is amended by adding a new subdivision to read:
12 "(22) Common Carrier Vehicle Permit. – Notwithstanding the results of any local
13 election, a permit under this subdivision may be issued to a business primarily
14 engaged in this State in the intrastate operation of common carriers of
15 passengers and operating under a certificate of authority issued by the North
16 Carolina Utilities Commission. A common carrier vehicle permit authorizes
17 the sale or service of malt beverages, unfortified wine, fortified wine, and
18 mixed beverages in the passenger area of a common carrier of passengers for
19 consumption by passengers in the passenger area during journeys of 75 miles
20 or longer that do not terminate within 10 miles of the origin of the journey.
21 The permit issued to the business shall cover all common carriers of
22 passengers owned by the business. The permit or a copy of the permit shall be
23 prominently displayed on each common carrier of passengers on which
24 alcoholic beverages are served or sold. Notwithstanding G.S. 18B-101(12a),
25 the passenger area of a permittee's common carrier of passengers constitutes
26 the premises for the permit. This permit shall not allow consumption of
27 alcohol on a common carrier of passengers by any employee of the permittee.
28 A permittee may not sell or serve alcoholic beverages to a passenger between
29 the hours of 2:00 A.M. and 7:00 A.M. and a passenger may not be allowed to
30 consume alcoholic beverages between the hours of 2:30 A.M. and 7:00 A.M.
31 Notwithstanding G.S. 18B-1004(c) or any local ordinance, alcoholic
32 beverages may be sold or consumed beginning at 10:00 A.M. on Sundays. For
33 purposes of this subdivision, a common carrier of passengers has the same
34 meaning as in G.S. 20-4.01(27)d."
35 SECTION 28.2. G.S. 18B-902(d) reads as rewritten:
36 "(d) Fees. – An application for an ABC permit shall be accompanied by payment of the
37 following application fee:
38 …
39 (50) Common carrier vehicle permit – $1,000."
40 SECTION 28.3. G.S. 18B-401 reads as rewritten:
41 "§ 18B-401. Manner of transportation.
42 (a) Opened Containers. – It Except as authorized by a common carrier vehicle permit
43 under G.S. 18B-1001(22), it shall be unlawful for a person to transport fortified wine or spirituous
44 liquor in the passenger area of a motor vehicle in other than the manufacturer's unopened original
45 container. It shall be unlawful for a person who is driving a motor vehicle on a highway or public
46 vehicular area to consume in the passenger area of that vehicle any malt beverage or unfortified
47 wine. Violation of this subsection shall constitute a Class 3 misdemeanor.
48 …."
49 SECTION 28.4. This Part becomes effective 90 days after this act becomes law.
50
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1 PART XXIX. AUTHORIZE INTERNATIONAL TRADE MARKET SPECIAL EVENT
2 ABC PERMIT
3 SECTION 29.1. Article 10 of Chapter 18B of the General Statutes is amended by
4 adding a new section to read:
5 "§ 18B-1002.2. Authorization of international trade market event permit.
6 (a) Definitions. – For purposes of this section, the following definitions apply:
7 (1) International trade market. – An annual or biannual credentialed event lasting
8 not less than five consecutive days and open only to members of a particular
9 trade or industry.
10 (2) Managed food services company. – A company that contracts to provide food
11 services in an international trade market and that, prior to applying for an
12 international trade market event permit, possesses a mixed beverages permit
13 pursuant to G.S. 18B-1001(10) for a location within the premises described in
14 the application required by subsection (c) of this section.
15 (b) Permit Authorized. – A permit may be issued to a managed food services company to
16 authorize the managed food services company to sell or serve malt beverages, unfortified wine,
17 fortified wine, or mixed beverages on specifically defined premises in an international trade
18 market at which the managed food services company is providing services for consumption on
19 the premises.
20 (c) Limitations. – An international trade market event permit may be used for two
21 international trade market events of not more than 21 days per event during the duration of the
22 permit. Upon application, the permittee shall provide the Commission with a map or written
23 description that clearly defines the boundary of the permittee's premises within the international
24 trade market on which alcoholic beverages may be sold or served. The premises may include
25 multiple buildings, and may include public or private outdoor areas including streets and
26 sidewalks, unless prohibited by local act. The permittee may exclude certain areas from the
27 premises that are not to be served by the permittee during certain times or at certain locations.
28 The permittee shall provide signage or other clear markings indicating the boundaries of the
29 defined premises at each event. The permittee shall notify the Commission at least 30 days in
30 advance of each international trade market event and shall also notify the Commission of the
31 duration of the international trade market event. If the bounds of the premises change prior to
32 expiration of the permit, the permittee shall notify the Commission of any changes to the
33 premises.
34 (d) Local Elections Control. – Any sale or service of alcoholic beverages under an
35 international trade market event permit may only be conducted in a jurisdiction that has approved
36 the sale of the type of alcoholic beverage offered for sale or service."
37 SECTION 29.2. G.S. 18B-902(d) is amended by adding a new subdivision to read:
38 "(48) International trade market event permit – $250.00."
39 SECTION 29.3. Notwithstanding G.S. 18B-1002.2(c), any permit issued pursuant
40 to G.S. 18B-1002.2 in the year 2021 may be used for three international trade market events of
41 not more than 21 days per event and shall expire on April 30, 2022. All other limitations provided
42 in G.S. 18B-1002.2(c) shall apply.
43 SECTION 29.4. This Part is effective when it becomes law.
44
45 PART XXX. DIRECT LOCAL BOARDS TO PROVIDE DELIVERY SERVICE TO
46 MIXED BEVERAGE PERMITTEES
47 SECTION 30.1. G.S. 18B-404 is amended by adding a new subsection to read::
48 "(f) A local board shall offer delivery service to mixed beverage permittees. In providing
49 delivery of purchased products to mixed beverage permittees, the local board may use its
50 employees or contract with one or more independent contractors, and may charge a fee to the
51 permittee."
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1 SECTION 30.2. G.S. 18B-701(a)(1) reads as rewritten:
2 "(1) Buy, sell, transport, and possess alcoholic beverages as necessary for the
3 operation of its ABC stores. If a local board providesIn providing delivery of
4 spirituous liquor to a mixed beverages permittee, as required by G.S. 18B-
5 404(f), the local board may use its employees or contract with an one or more
6 independent contractors and may charge a fee to the permittee. A mixed
7 beverage permittee may contract with an independent contractor to provide
8 delivery of spirituous liquor from an ABC board's store or warehouse to the
9 permittee's premises."
10 SECTION 30.3 This Part becomes effective January 1, 2022.
11
12 PART XXXI. RULEMAKING, SAVINGS CLAUSE, AND EFFECTIVE DATE
13 SECTION 31.1. The Alcoholic Beverage Control Commission shall adopt rules, or
14 amend its rules, consistent with the provisions of this act. The Commission may use the procedure
15 set forth in G.S. 150B-21.1 to adopt or amend any rules as required under this subsection.
16 SECTION 31.2. Prosecutions for offenses committed before the effective date of
17 this act are not abated or affected by this act, and the statutes that would be applicable but for
18 this act remain applicable to those prosecutions.
19 SECTION 31.3. Except as otherwise provided, this act is effective when it becomes
20 law.
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