ABC OMNIBUS LEGISLATION. (NEW)

View NCGA Bill Details2017-2018 Session
Senate Bill 155 (Public) Filed Wednesday, March 1, 2017
AN ACT TO MAKE VARIOUS CHANGES TO THE ALCOHOLIC BEVERAGE CONTROL COMMISSION LAWS.
Intro. by Gunn, Blue, Harrington.

Status: Ch. SL 2017-87 (Senate Action) (Jun 30 2017)

SOG comments (3):

Identical bill

Identical to H 460, filed 3/23/17.

Change long title

Senate committee substitute to 1st edition changed long title.  Long title was AN ACT TO AMEND ALCOHOLIC BEVERAGE CONTROL PERMITS AND ALLOW RESTAURANTS TO SELL ALCOHOLIC BEVERAGES BEFORE NOON ON SUNDAYS, SUBJECT TO LOCAL GOVERNMENT APPROVAL.

Change long and short titles

House committee substitute to the 2nd edition changed long and short title.  Long title was AN ACT TO AMEND ALCOHOLIC BEVERAGE CONTROL PERMITS, TO ALLOW RESTAURANTS TO SELL ALCOHOLIC BEVERAGES BEFORE NOON ON SUNDAYS, SUBJECT TO LOCAL GOVERNMENT APPROVAL, AND TO AUTHORIZE REBATES ON ALCOHOLIC BEVERAGES. Short title was ECONOMIC & JOB GROWTH FOR NC DISTILLERIES.

Bill History:

S 155/S.L. 2017-87

Bill Summaries:

  • Summary date: Jul 3 2017 - More information

    AN ACT TO MAKE VARIOUS CHANGES TO THE ALCOHOLIC BEVERAGE CONTROL COMMISSION LAWS. Enacted June 30, 2017. Effective June 30, 2017, except as otherwise provided.


  • Summary date: Jun 27 2017 - More information

    House amendment #1 makes the following changes to the 4th edition.

    Deletes the proposed changes to GS 18B-1105(a)(2), maintaining existing law that authorizes distillery permitees to sell, deliver, and ship spirits in closed containers at wholesale to exporters and local boards within the State, and, subject to the laws of other jurisdictions, at wholesale or retail to private or public agencies or establishments of other states or nations. Makes a conforming deletion.

    Deletes proposed GS 18B-804(b2), which allowed the distiller to set the retail price of spirits sold for delivery outside the State pursuant to new GS 18B-1105(a)(2a).


  • Summary date: Jun 26 2017 - More information

    House committee substitute makes the following change to the 3rd edition.

    Extends the time by which the Alcoholic Beverage Control (ABC) Commission must adopt rules to implement the provisions of Section 5, amending GS 18B-1001 to authorize the sale of non-resealable malt beverages by specified permittees, to no later than 120 days (previously, 60 days) after the act becomes law.

     


  • Summary date: Jun 22 2017 - More information

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

    Changes the act's long and short titles. Modifies the previous provisions and adds new provisions as follows.

    Amends proposed GS 18B-1114.7, concerning spirituous liquor special event permits. Removes two of the 12 limitations previously set forth for consumer tastings conducted pursuant to the permit. Removes the provision prohibiting venues from allowing more than three different permit holders to conduct a consumer tasting at any event without board approval. Also removes the provision requiring permit holders to provide written notice of a consumer tasting to the Alcoholic Beverage Control (ABC) Commission (Commission) at least 48 hours before the tasting. Modifies the provision authorizing permit holders (previously, permit holders conducting the events) to provide point-of-sale advertising materials and advertising specialties to consumers at consumer tastings.

    Amends GS 18B-112 by adding a new subsection (b1) authorizing the Eastern Band of Cherokee Indians tribe to adopt an ordinance allowing for the sale of alcohol beginning at 10:00 AM on Sunday pursuant to the licensed premises' permit issued under the authority of GS 18B-112(d).

    Makes conforming changes to further amend GS 18B-1004(c), providing for new GS 18B-112(b1).

    Deletes the proposed changes to GS 75-40(b), concerning rebates. Also deletes previous directives to the Commission to amend its rules no later than December 31, 2017, to permit each of six listed things, including rebate offers by members of the alcoholic beverage industry for the purchase of alcoholic beverages from specified suppliers, and to eliminate any rule or requirement that does any of four listed things, including prohibiting offers and advertisements of "2 for 1," "buy 1 get 1 free," "buy 1 get another for a __ (nickel, penny, etc.)," and any other similar statement.

    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 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, which authorizes breweries, wineries, and distilleries to store their beverages at a noncontiguous storage location approved by the Alcohol and Tobacco Tax and Trade Bureau. Requires the permitee to notify the Commission of any storage location used pursuant to this provision. Adds that any storage location used pursuant to this provision is considered part of the premises of the brewery, winery, or distillery manufacturing the alcoholic beverages.

    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 permit 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 to native 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 Commission for sale in North Carolina, and to authorize the breweries to sell any alcoholic beverages approved for sale in North Carolina by the Commission and approved for sale in that area. 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, in an area where the sale of malt beverages has not been authorized, to sell the malt beverages owned by the brewery and approved by the 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, upon receiving approval from the governing body of the city where the brewery is located, or if not within a city, the governing body of the county where the brewery is located. Requires city or county approval, whichever is applicable, be done by resolution of the governing body at a public meeting after proper notice and public hearing, as specified. Authorizes holders of brewery to sell malt beverages produced under subdivision (6a) of that statute (contract breweries), and clarifies that a sale at any additional retail location under subdivision (8) is not considered a wholesale sale for purposes of Article 13.

    Amends GS 18B-1104 to direct the Commission to confirm by October 1 of each year that the holder of a brewery permit complies with GS 18B-900(a)(8). Authorizes the Commission to suspend a person's brewery permit until the Commission receives notice from the Department of Revenue that the person is in compliance. Directs brewery permit holders who obtain a malt beverage wholesaler permit to report to the Commission within 60 days of a request by the Commission six specified pieces of information regarding the amount of malt beverages sold. Prohibits the Commission from requesting more than one sales report from a brewery within a 12-month period. Requires the Commission to keep all information provided confidential except as required by law or requested from the Department of Revenue. Adds that this information is not public record. Makes technical and organizational changes.

    Amends GS 18B-1105 to direct the Commission to confirm by October 1 of each year that the holder of a distillery permit complies with GS 18B-900(a)(8). Authorizes the Commission to suspend a person's distillery permit until the Commission receives notice from the Department of Revenue that the person is in compliance.

    Makes conforming changes to GS 18B-903(c1), GS 18B-1001(l), GS 18B-1114.5(a), GS 18B-1116(a), and GS 18B-1305(a1). Also makes technical changes to GS 18B-1116.

    Amends GS 105-113.70 to clarify provisions concerning the issuance of and qualifications for ABC permitees for local licensing. Provides that no documentation is required of an applicant except as set out in the statute. Establishes that issuance of a local license is mandatory if the applicant holds the corresponding ABC permit and provides: (1) a copy of the most recently completed State application form for an ABC permit exclusive of any attachments, (2) the ABC permit for visual inspection, and (3) payment of the prescribed tax. Makes conforming changes. 

    Amends GS 18B-1114.1, adding farmers' markets to the list of locations at which a winery can provide free tastings of its wine and sell its wine by the glass or in closed containers pursuant to a winery special event permit.

    Directs the Commission to adopt temporary rules to implement the act, which are to remain in effect until permanent rules that replace the temporary rules become effective. Adds that any rule or policy adopted by the Commission that does not comply with the act are void.


  • Summary date: May 31 2017 - More information

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

    Amends the long title.

    Amends GS 18B-301. Deletes proposed amendments regarding consumer tastings at ABC stores authorized by GS 18B-1114.7, preserving the language regarding consumption on public roads, streets, highways, or sidewalks. Makes conforming changes.

    Amends proposedGS 18B-1114.7 (Authorization of spirituous liquor special event permit). Further authorizes holders of supplier representative permits and brokerage representative permits to obtain spirituous liquor special event permits. Deletes language authorizing holders of spirituous liquor special event permits to give free tastings at ABC stores. Authorizes the permit holder's authorized agent to conduct the consumer tasting or pour the spirituous liquor, but provides that the permit holder is solely responsible for any violations of GS Chapter 18B (Regulation of Alcoholic Beverages) in connection with the tasting. Limits the total amount of tasting samples to and consumed by each consumer in any calendar day to 1 ounce (was, 1.5 ounces). Makes conforming changes by deleting language regarding consumer tastings at ABC stores.

    Amends GS 18B-1002. Authorizes the Alcoholic Beverage Control Commission to issue a permit to collectors of antique spirituous liquor to authorize them to bring into the State, transport, or possess as a collector a greater amount of those alcoholic beverages than is otherwise authorized by this Chapter, or to sell those alcoholic beverages in a manner prescribed by the Commission.

    Amends proposed GS 18B-1002.1 (Special auction permit). Replaces the current list of alcoholic beverages that may be auctioned under this statute's permit with items described in GS 18B-1002(a)(4) (wine, decorative decanters of spirituous liquor, and antique spirituous liquor). Deletes language regarding methods of bidding, jurisdictions in which the permit may be issued, and when the Commission may deny a one-time special auction permit.

    Amends proposed GS 153A-145.7 and GS 160A-205.3. Amends the captions to read Hours of certain alcohol sales. Authorizes an ordinance to be adopted by a county or city under those statutes allowing for the sale of malt beverages, unfortified wine, fortified wine, and mixed beverages beginning at 10:00 AM on Sunday pursuant to licensed premises' permits (was, authorized ordinances allowing licensed restaurants, not licensed premises, to sell beverages pursuant to specified permits).

    Amends GS 75-40, regarding consumer rebates. Authorizes the inclusion of a person, firm, or corporation's designated agent's telephone number or email address on a rebate form as an alternative to the current requirement of including the telephone number or email address of the person, firm, or corporation offering the rebate.

    Directs the ABC Commission to amend its rules no later than December 31, 2017, to permit each of six listed things, including rebate offers by members of the alcoholic beverage industry for the purchase of alcoholic beverages from specified suppliers.

    Directs the ABC Commission to amend its rules no later than December 31, 2017, to eliminate any rule or requirement that does any of four listed things, including prohibiting offers and advertisements of "2 for 1," "buy 1 get 1 free," "buy 1 get another for a __ (nickel, penny, etc.)," and any other similar statement.

    Makes an organizational change.


  • Summary date: Mar 1 2017 - More information

    Section 1

    Amends GS 18B-1105(a), setting forth authorized acts by a holder of a distillery permit, to provide that a permitted distillery may sell spirituous liquor in closed containers at wholesale or retail for delivery outside the State, subject to the laws of other jurisdictions (previously, authorized to sell, deliver, and ship spirituous liquor in closed containers at wholesale or retail to private or public agencies or establishments of other states or nations subject to the laws of other jurisdictions). Increases the maximum amount of spirituous liquor a permitted selling distillery can sell to a consumer at a distillery within a 12-month period under the restrictions set out in subdivision (4) of subsection (a) from one to five bottles. Authorizes a permitted distillery to conduct consumer tastings in accordance with GS 18B-1114.7 (enacted by this act).

    Amends GS 18B-804, setting forth a policy of uniform retail pricing for spirituous liquor sold in ABC stores and permitted distilleries, to establish that when a permitted distillery sells spirituous liquor for delivery outside the state pursuant to GS 18B-1105(a)(a2) (enacted above), the distiller sets the retail price for the liquor. 

    Amends GS 18B-800, providing that spirituous liquor can only be sold in ABC stores operated by local boards, except as provided in Articles 10 and 11 of GS 18B (was, only Article 10; Article 11 is amended by this act).

    Directs the Alcoholic Beverage Control Commission to adopt temporary rules to amend its rules consistent with Section 1 of this act. 

    Effective July 1, 2017.

    Section 2

    Enacts GS 18B-1114.7 to authorize the holder of a distillery permit issued under GS 18B-1105 to obtain a spirituous liquor special event permit. Provides that the special event permit will allow the permitee to give free tastings of its spirituous liquor at ABC stores and various other public places including trade shows, conventions, shopping malls, street festivals and local fund-raisers as approved by the Commission. Sets out 13 limitations for consumer tastings, including limiting the total amount of tasting samples a consumer can consume to 1.5 ounces per day and prohibiting the permit holder from offering tastings samples to or allowing consumption of tasting samples by someone who is visibly intoxicated. Prohibits a permit holder conducting a consumer tasting at an ABC store from providing any consideration to the local board, its members, or its employees for any purpose related to the tasting. 

    Amends GS 18B-301, concerning the lawful possession and consumption of fortified wine and spirituous liquor, to establish that is lawful to consume spirituous liquor at an ABC store if a consumer tasting is being conducted as authorized by GS 18B-1114.7. Makes conforming changes to the prohibitions set out in subsection (f) to allow any person to consume or offer to another person to consume liquor on the premises of an ABC store, upon property used or occupied by a local board, and on any public road, street, highway, or sidewalk where a consumer tasting authorized by GS 18B-1114.7 is being conducted.

    Sets fees for an ABC permit application under GS 18B-902(d) to be $200 for a spirituous liquor special event permit and $750 for a special auction permit.

    Section 3

    Enacts GS 18B-1002.1 to allow a permit to be issued to an auction firm or auctioneer licensed by the North Carolina Auctioneers Commission (Commission) under GS Chapter 85B to allow the licensed auction firm or auctioneer to sell any quantity of malt beverages, unfortified and fortified wine, and spirituous liquors at auction. Allows an auction held under this statute to receive competing bids in person or by telephone, fax, or online. Limits the issuance of permits under this statute to jurisdictions that allow the sale of malt beverages, unfortified wine, or fortified wine, respectively, and jurisdictions that have approved the establishment of ABC stores. Provides an auction permit is only valid for the auction specified in the permit, and any sales under the permit are subject to the alcoholic beverage purchase amount restrictions of GS 18B-303. Clarifies that an applicant that is denied a permit or a permitee that has the permit revoked is not entitled to a hearing under GS Chapter 150B (APA).

    Amends GS 18B-603 to allow the North Carolina Alcoholic Beverage Commission to issue special auction permits under GS 18B-1002.1 without approval at an election. Makes technical changes.

    Effective October 1, 2017.

    Section 4

    Enacts GS 153A-145.7 and GS 160A-205.3 to allow a county or city to adopt an ordinance allowing licensed restaurants to sell alcoholic beverages for on-premises consumption beginning at 10:00AM on Sunday morning pursuant to the restaurant's on-premises malt beverage, unfortified wine or fortified wine permits, or mixed beverages permit. Makes conforming changes to GS 18B-1004, which sets out the hours for the sale and consumption of alcoholic beverages.


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