Bill Summaries: H500 (2017-2018 Session)

  • Summary date: Jun 26 2018 - View summary

    AN ACT TO MAKE VARIOUS CHANGES TO THE ALCOHOLIC BEVERAGE CONTROL LAWS. Enacted June 26, 2018. Effective June 26, 2018, except as otherwise provided.

  • Summary date: Jun 15 2018 - View summary

    Conference committee substitute makes the following changes to 4th edition. 

    Amends GS 18B-1114.1 and 18B-1114.5, allowing wineries and breweries to sell branded merchandise at special events with the appropriate permit.  Amends GS 18B-1307, allowing a supplier to match and reassign to a designee the right to purchase the ownership interest of a wholesaler's business, subject to the designee purchasing the ownership interest at the price and on the conditions applicable to the purchase proposed by the transferee, if the total annual gross sales of the supplier's malt beverages sold by the selling wholesaler total no more than 5% of the selling wholesaler's total annual gross sales of wine and malt beverages in dollars. 

    Deletes amendment to GS 18B-1304, which made it unlawful for a supplier or its agent to induce or coerce or so attempt a wholesaler to accept delivery of any item or service which has not been specifically ordered. 

    Adds severability clause. 

  • Summary date: Jun 14 2018 - View summary

    The conference report is to be summarized.

  • Summary date: Jun 12 2018 - View summary

    Senate amendments make the following changes to 3rd edition. Amendment #1 amends GS 18B-1000(4a) and GS 18B-1001, removing the definition of motion picture theater and removing the provisions which allowed for motion picture theaters to sell malt beverages, wine, and mixed drinks. 

    Amendment #2 deletes proposed changes to GS 18B-108, removing provision which would have allowed for the sale of alcoholic beverages on passenger-only ferries and allowed for the sale of alcoholic beverages to the Department of Transportation to be sold on ferries. 

  • Summary date: Jun 7 2018 - View summary

    Senate committee substitute makes the following changes to the 2nd edition. 

    Deletes the content of the previous edition and replaces it with the following. 

    Section 1

    Amends GS 18B-1121 to allow a licensed commercial permittee, or its agent or employee, to consume samples of alcoholic beverages that it is licensed to sell for purposes of sensory analysis, quality control, or education, at (1) the permitte's premises licensed for commercial activity, (2) the permittee's premises licensed for retail activity if the permittee is authorized to hold a retail permit and the permittee has obtained the appropriate retail permit, (3) the premises of a special one-time permittee, or (4) the premises of a special event where a commercial permittee is participating under a winery or malt beverage special event permit.

    Section 2

    Requires the ABC Commission (Commission) to amend the Distressed Liquor Rules (as specified in the act) to no longer require the presence of a distiller representative for the Commission, a privately-owned bonded warehouse, or a local board to destroy distressed liquor. Requires that the existing Distressed Liquor Rules be implemented as provided until the Rules are amended.

    Section 3

    Requires the Commission to adopt a rule to amend the Mixed Beverages Tax Stamp Rule (as specified in the act) to not require a mixed beverages tax stamp to be affixed to the original paper labeling of each container, and allow the stamp to be affixed to any vertical portion of the container. Requires that the existing Mixed Beverages Tax Stamp Rule be implemented as provided until the Rule is amended.

    Section 4

    Amends GS 18B-1000, which contains the definitions for GS Chapter 18B, to add and define the following terms: (1) motion picture theater as a movie theater, screening room, or other venue used primarily for showing copyrighted motion pictures, if it is open to the public, with movie ticket sales revenue at a level greater than revenue from sales of alcohol and gross receipts from food and nonalcoholic beverages no less than 30% of the total gross receipts from food and nonalcoholic and alcoholic beverages; (2) sports and entertainment venue as stadiums, ballparks, and similar facilities with a permanently constructed seating capacity of 3,000 or more, excluding those located on the campus of a school, college, or university. Amends the definition of restaurant to add that if it is located on an 18-hole golf course, the premises must include the parking lot and the playing area of the golf course. Amends the definition of sports club by adding that the premises of a sports club substantially engaged in the business of providing an 18-hole golf course must include the parking lot and the playing area of the golf course.

    Amends GS 18B-1001 to add motion picture theaters and sports and entertainment venues to the list of establishments to which on-premises malt beverage permits, on-premises unfortified wine permits, and mixed beverages permits may be issued. Also adds motion picture theaters to where on-premises fortified wine permits may be issued. Makes additional technical changes.

    Section 5

    Amends GS 14-309.6 to define a nonprofit organization to mean an organization or association recognized by the Department of Revenue as tax-exempt pursuant to GS 105-130.11(a) or any bona fide branch, chapter, or affiliate of that organization. Makes conforming changes to GS 14-309.15.

    Modifies and adds to GS 14-309.15 (Raffles). Adds new provision requiring that each regional or county chapter of a nonprofit organization be eligible to conduct raffles in accordance with the statute independently of its parent organization. Authorizes a nonprofit organization to hold no more than four raffles per year (was, limits nonprofit organizations to two raffles per year). Increases the maximum total cash prize that can be offered or paid by any nonprofit organization to $250,000 from $125,000. Makes conforming changes. 

    Amends GS 18B-308 (Sale and consumption at bingo games), removing raffles from the scope of the prohibition on the sale and consumption of alcohol under the statute. 

    Enacts GS 18B-903A, providing for reissuance of permits to a nonprofit organization that has received a limited special occasion permit pursuant to GS 18B-1001(9), or a special one-time permit pursuant to GS 18B-1002(a)(2) or (a)(5) within the preceding 18 months so long as the same individual representing the organization requests the reissuance of the permit for the same location. Details information required for reissuance, including the location and description of the event. Makes a reissued limited special occasion permit valid for 48 hours before and after the occasion for which the permit was issued and a reissued special one-time permit valid only for the period stated on the permit. Provides that the reissuance application fee is the same as the initial fee set out in GS 18B-902 and nonrefundable. Prohibits the Commission from investigating the applicant and the premises for which the reissuance is requested more than once every three years. Permits the Commission to request the assistance of local ABC officers in investigating applications. Makes it a Class 1 misdemeanor to knowingly make a false statement in the application for a permit reissuance. Also makes knowingly making a false statement on the reissuance application grounds for denying, suspending, revoking, or taking other action against the permit provided in GS 18B-104. Effective December 1, 2018, and applies to offenses committed on or after that date.

    Amends GS 18B-1002(a)(5), concerning special permits for local governments and nonprofit or political organizations to serve wine, malt beverages, and spirits at a ticketed fundraiser event. Adds a provision providing that the issuance of this permit allows nonprofit organizations to offer alcoholic beverages in the manufacturer's original closed container as a prize in a raffle or sell alcoholic beverages in the manufacturer's original closed container at auction at the ticketed event to allow the nonprofit organization to raise funds. 

    Unless otherwise indicated, this section is effective October 1, 2018.

    Section 6

    Amends GS 18B-1114.7(b), which places limitations on consumer liquor tasting events to also allow the permit holder to sell branded merchandise at consumer tasting events.

    Section 7

    Amends GS 18B-108 by adding that alcoholic beverages (malt beverages, unfortified wine, and fortified wine) may be sold on passenger-only ferries.

    Section 7.1

    Amends GS 18B-1307 to allow an individual's interest in a malt beverage wholesaler business to be transferred or assigned to a designated family member (under current law the transfer or assignment can happen only when the wholesaler dies). Expands the definition of designated family member to also include a niece or nephew. Provides that nothing in (b) concerning the approval of certain transfers and mergers is intended to or should be construed to authorize a supplier to match and reassign to a designee the right to purchase the ownership interest, subject to the designee purchasing the ownership interest. Makes additional conforming changes.

    Amends GS 18B-1119 to prohibit a supplier or an officer, director, employee or affiliate of a supplier from acquiring, possessing, or otherwise maintaining an ownership interest in a wholesaler except as expressly authorized by GS Chapter 18B. Deletes existing provisions concerning a supplier or an officer, director, employee, or affiliate of a supplier financially assisting a proposed purchaser.

    Amends GS 18B-1304 to make it illegal for a supplier, or an office, agent, or representative of a supplier to induce, coerce, or attempt to do so, any wholesaler to accept delivery of any alcoholic beverage, or any other item or service, that has not been specifically ordered or requested by the wholesaler.

    Section 8

    Except where otherwise provided, the act is effective when it becomes law.

    Makes conforming changes to the act's long title. 

  • Summary date: Apr 25 2017 - View summary

    House committee substitute makes the following changes to the 1st edition.

    Amends new subdivision c. of GS 18A-1104(7) in Section 8 of the bill to limit the sale of alcoholic beverages in an area that have been approved by the Commission for sale in North Carolina to require that the alcoholic beverage also is approved for sale in that area.

    Modifies new subdivision (7a) of GA 18B-1104 authorizing farm breweries in Section 10 of the bill to limit the application of that subdivision to areas where the sale of malt beverages has not been authorized (was, any area regardless of approval of sale of malt beverages) and adds additional requirement that the brewery receive approval from the governing body of the city or county where the brewery is located.  Approval may only be granted by resolution adopted by the governing body at a regular meeting after a public hearing for which published notice has been given once a week for two successive calendar weeks at least 10 but not more than 25 days before the date of the hearing (the date of publication is excluded from calculating the days for notice requirement purposes).

    Revises Section 11(a) of the bill to now amend laws governing brewery sales at additional retail locations (was, self-distribution by breweries) to delete previous changes to subdivision (8) and (8a) of GS 18B-1104 and instead amends subdivision (8) to authorize breweries to sell malt beverages produced under subdivision (6a) of that statute (contract breweries).

    Deletes Section 11(b) (amending GS 105-13.68), Section 12 (amending law governing termination of franchise agreement for small breweries), and Section 13 (requiring the LRC to study a rewrite of Chapter 18B) and renumbers the remaining sections of the bill accordingly.

  • Summary date: Mar 28 2017 - View summary

    Amends GS 18B-1001 to permit holders of specified alcoholic beverage sale permits to engage in the retail sale of malt beverages and unfortified wine, respectively, for off-premises consumption in a cleaned and sanitized container (currently requires the container to be cleaned, sanitized, and resealable). Does not affect the current authorization for retail sale of beverages for consumption on the premises, or of beverages in the manufacturer's original container. Makes technical changes. Requires the Alcoholic Beverage Control (ABC) Commission to adopt rules to implement these changes no later than 60 days after the act becomes law; allows for the adoption of temporary rules.

    Enacts new GS 18B-1120, authorizing breweries, wineries, and distilleries to store their beverages at a noncontiguous storage location approved by the Alcohol and Tobacco Tax and Trade Bureau.

    Amends GS 18B-1001(3), as amended by this Act, to authorize the issuance of an on-premises unfortified wine permit to retail businesses.

    Amends GS 18B-1104 to authorize the holder of a brewery to give its products to customers, visitors, and employees (currently employees and guests) for consumption on its premises, and clarifies that this provision does not exclude customers and visitors at the brewery as part of a paid or complimentary brewery tour.

    Enacts new GS 18B-1121 (Authority to sample for sensory analysis, quality control, or educational purposes), authorizing commercial permittees under GS Chapter 18B, Article 11, to consume samples of alcoholic beverages it is licensed to sell, free of charge, for purposes of sensory analysis, quality control, or education.

    Amends GS 18B-306 (Making wines and malt beverages for private use) to further authorize individuals to make, possess, and transport wines and malt beverages for organized affairs, exhibits, and competitions. Eliminates references tonative wine, and deletes the provisions specifying what methods of making wines and malt beverages are allowed for private use. Prohibits the sale of wine and malt beverages made under this statute. Authorizes the production of wine or malt beverages (currently, beverages) under this statute without an Alcoholic Beverage Control permit. Makes additional technical and organizational changes.

    Amends GS 18B-1116 to extend the exemption to the prohibitions concerning financial interest in and lending things of value to wholesalers or retailers, for breweries qualifying under GS 18B-1104(8), to those qualifying under GS 18B-1104(7), with respect to transactions with retail business on their premises or other retail locations allowed under GS 18B-1104(8), as described below.

    Amends GS 18B-1104(7) to require holders of brewery permits to receive the appropriate permit under GS 18B-1001 prior to sale at the brewery or any additional retail location authorized, to require any beverages sold by the brewery to be approved by the ABC Commission for sale in North Carolina, and to authorize the breweries to sell any alcoholic beverages approved for sale in North Carolina by the ABC Commission. Authorizes holders of brewery permits to further receive malt beverages manufactured by the permittee in some other state for transshipment to wholesalers licensed under GS Chapter 18B. Authorizes holders of brewery permits that produce agricultural products used by the brewery in the manufacture of malt beverages to sell the malt beverages owned by the brewery and approved by the ABC Commission for sale in North Carolina at the brewery for on- or off-premise consumption, in accordance with an obtained permit, regardless of the results of any local malt beverage election. Authorizes holders of brewery permits to obtain a malt beverage wholesaler permit to sell, deliver and ship up to 200,000 (currently, 25,000) barrels of their malt beverages per year, with certain specified sales not counting toward the sales quantity limitation. Authorizes the brewery to further sell malt beverages produced under GS 18B-1104(6) at three other locations. Authorizes the brewery to restrict the sale of malt beverages at off-premises retail locations using the same business name of the brewery to malt beverages produced by the brewery.

    Amends GS 105-113.68 to eliminate the 25,000 barrel restriction on breweries in the definition ofwholesaler or importer.

    Amends GS 18B-1305 to authorize a small brewery to terminate a franchise agreement without good cause at any time. Provides for the distribution authorization to revert back to the small brewery upon notice of termination. Provides for the fair compensation by the small brewery to the wholesaler, as negotiated between them, and provides for arbitration in the event the parties cannot agree upon fair compensation. Definessmall brewery as a brewery that produces fewer than 200,000 barrels per year.

    Amends GS 18B-1309 to exempt determination of fair compensation from the mediation provisions in that statute.

    Directs the Legislative Research Commission to study whether it is necessary to rewrite GS Chapter 18B to reflect the changing alcoholic beverage industry, and to report its findings to the 2018 Regular Session of the 2017 General Assembly.

    Directs the ABC Commission to adopt temporary rules to implement the provisions of this section (likely means Act).

    Makes technical changes.