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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).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-08-31-h890-cstqf-34-v5-2a14f0a4f1/, SHA-256 26c9c0f0870025c33b3d55d52c3f08726cc5d1f9b46f7d10e9ce15edd4fe39e8.

Full text

                         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



                                    *H890-CSTQf-34*
     General Assembly Of North Carolina                                                     Session 2021
 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

     Page 2                                     House Bill 890                     H890-CSTQf-34 [v.5]
     General Assembly Of North Carolina                                                                         Session 2021
 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.

     H890-CSTQf-34 [v.5]                                  House Bill 890                                                 Page 3
     General Assembly Of North Carolina                                                    Session 2021
 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.

     Page 4                                     House Bill 890                    H890-CSTQf-34 [v.5]
     General Assembly Of North Carolina                                                    Session 2021
 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,

     H890-CSTQf-34 [v.5]                       House Bill 890                                    Page 5
     General Assembly Of North Carolina                                                      Session 2021
 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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     General Assembly Of North Carolina                                                    Session 2021
 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.

     H890-CSTQf-34 [v.5]                       House Bill 890                                    Page 7
     General Assembly Of North Carolina                                                    Session 2021
 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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     General Assembly Of North Carolina                                                    Session 2021
 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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     General Assembly Of North Carolina                                                        Session 2021
 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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     General Assembly Of North Carolina                                                     Session 2021
 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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     General Assembly Of North Carolina                                                    Session 2021
 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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     General Assembly Of North Carolina                                                    Session 2021
 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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     General Assembly Of North Carolina                                                   Session 2021
 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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     General Assembly Of North Carolina                                                    Session 2021
 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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     General Assembly Of North Carolina                                                     Session 2021
 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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     General Assembly Of North Carolina                                                     Session 2021
 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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     General Assembly Of North Carolina                                                    Session 2021
 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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     General Assembly Of North Carolina                                                    Session 2021
 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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     General Assembly Of North Carolina                                                    Session 2021
 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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     General Assembly Of North Carolina                                                    Session 2021
 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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     General Assembly Of North Carolina                                                    Session 2021
 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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     General Assembly Of North Carolina                                                     Session 2021
 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


     H890-CSTQf-34 [v.5]                        House Bill 890                                    Page 23
     General Assembly Of North Carolina                                                    Session 2021
 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


     Page 24                                   House Bill 890                    H890-CSTQf-34 [v.5]
     General Assembly Of North Carolina                                                   Session 2021
 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."

     H890-CSTQf-34 [v.5]                       House Bill 890                                  Page 25
     General Assembly Of North Carolina                                                  Session 2021
 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.




     Page 26                                   House Bill 890                   H890-CSTQf-34 [v.5]


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