Bill Summary for H 211 (2021)

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Summary date: 

Jun 23 2022

Bill Information:

View NCGA Bill Details2021
House Bill 211 (Public) Filed Wednesday, March 3, 2021
AN ACT TO RECODIFY AND CLARIFY THE STATUTES GOVERNING COMMON AREA ENTERTAINMENT PERMITS AND SOCIAL DISTRICTS AND TO CLARIFY A REAL PROPERTY OWNER DENIED WATER OR SEWER SERVICE TO PROPERTY SUBJECT TO AN ANNEXATION AGREEMENT BETWEEN LOCAL GOVERNMENTS IS ALLOWED TO SEEK OTHER SERVICE OR PETITION THE COURT FOR RELIEF.
Intro. by Moffitt, Setzer, Mills, Zenger.

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Bill summary

Senate committee substitute replaces the content of the 4th edition as follows.

Section 1

Adds a new subsection to GS 18B-301 making it lawful to possess an open container of fortified wine or spirituous liquor without an ABC permit in a social district or a designated consumption area under a common area entertainment permit which complies with GS 18B-300.1 or GS 18B-1001.5, respectively, as enacted by the act.

Section 2

Repeals GS 18B-1000(4a) (defining multi-tenant establishment) and GS 18B-1001(21) (providing for a common area entertainment permit for multi-tenant establishments). Replaces the provisions with the following. 

Enacts GS 18B-1001.5, creating a common area entertainment permit (common permit), issuable to the owner or property owners' association of a multi-tenant establishment that has at least two tenants within the establishment that are ABC permittees, defined as a business that is a tenant of a multi-tenant establishment that holds at least one of the following ABC permits: an on-premises malt beverage permit, an on-premises unfortified wine permit, an on-premises fortified wine permit, a mixed beverage permit, a wine shop permit, or a distillery permit (previous GS 18B-1001(21) did not include wine shop permittees). States legislative policy and specifies that the statute does not limit the consumption or possession of alcoholic beverages otherwise allowed under GS Chapter 18B. Includes defined terms. Defines multi-tenant establishment as a building or structure, or multiple buildings and structures on the same property, or within the same planned development project, that may be subject to a common declaration of restrictive covenants administered by a common property owners' association, and under common ownership, control, or property owners' association governance, that contains or contain multiple businesses that sell food, goods, services, or a combination of food, goods, and services, and that include or are connected by common areas; includes a mixed-use development, as defined. Allows customers of a permittee to exit the permittee's licensed premises with an open container of the alcoholic beverage sold by the tenant and consume the beverage within the confines of any indoor or outdoor designated consumption area. Requires the owner or property owners' association of a multi-tenant establishment that holds a common permit to designate one or more areas as designated consumption areas, including the premises of any business that is open to customers and allows outside alcoholic beverages on its premises, privately maintained streets, parking spaces, sidewalk, and courtyards. Allows permittees to be included in the designated area that excludes open containers from other permittees.

Requires clearly marking the boundaries of the designated consumption area, with discretion to the property owner or owners' association; excludes vertical boundaries. Requires the owner or owners' association to submit to the ABC Commission for review and approval a plat or site map of the designated consumption areas clearly marked or a detailed map of the relevant buildings on the property with the designated consumption area clearly marked. Requires submission of the plat or map for each permit renewal and within at least 10 days prior to any adjustments to the designated consumption area. Limits consumption of customer-purchased beverages within the designated consumption area to the hours that the beverages may be sold under GS 18B-1004, which prohibits the sale and consumption of malt beverages, unfortified wine, fortified wine, or mixed beverages between the hours of 2:00 a.m. and 7:00 a.m. in any place that has been issued a permit under GS 18B-1001 or GS 18B-1105, and before noon on Sundays, subject to further local limitations. Allows the owner or owners' association to further limit the days and hours of consumption in the designated consumption area. Requires posting authorized consumption days and hours on the property. Establishes requirements for the sale of open containers by permittees for customers exiting the premises to the designated consumption area, including container criteria, such as clearly identifying the permittee and the designated consumption area, limiting the container to 16 fluid ounces, including a "drink responsibly" statement on the container, and by January 1, 2024, requiring containers not be glass. Subjects sales to the drink limitations of GS 18B-1010. Sets forth six limitations for consumption of open containers in the designated area, unless otherwise allowed by law and permitted in the designated area, including complying with container requirements and number limitations set out in GS 18B-1010. Permits possession of closed containers in the designated consumption area as authorized by the Chapter.

Deems non-permittee businesses within a designated consumption area not responsible for the enforcement of the Chapter. Provides signage requirements for non-permittees that allow consumption on their premises during times when the designated consumption area is active, and requires allowing law enforcement access to the customer-accessible areas during that time. Requires the owner or owners' association to comply with the statute, but deems them not responsible for the enforcement of the Chapter, and limits actions against them by the ABC Commission to knowing violations or knowingly allowing violation of the Chapter. 

Section 3

Repeals GS 18B-904.1 (authorization for cities and counties to adopt ordinances designating a social district). Replaces the provisions with the following.

Enacts GS 18B-300.1, authorizing a city or county to adopt an ordinance designating one or more social districts, meaning a defined area in which a person may consume alcoholic beverages sold by a permittee, defined as an establishment holding any of the following permits: an on-premises malt beverage permit, an on-premises unfortified wine permit, an on-premises fortified wine permit, a mixed beverage permit, a wine shop permit, or a distillery permit (previous GS 18B-904.1 did not include wine shop permittees, and limited cities and counties to designating one social district). States legislative policy and specifies that the statute does not limit the consumption or possession of alcoholic beverages otherwise allowed under GS Chapter 18B. Includes defined terms.

Details four requirements for designated social districts, including (1) posting the social district's area, hours (limited to the hours permitted under GS 18B-1004), and other information related to enforcement and consumption; (2) requiring the city or county or its designee, permitted to be a private entity, to establish, approve, and post management and maintenance plans, boundaries, and hours of the social district to its website; (3) requiring ABC Commission approval of the social district's detailed map, hours, and days, with further approval only required if the geographic footprint is amended; and (4) requiring the city or county or its designee, permitted to be a private entity, to develop or approve and distribute uniform signs to non-permittee businesses included in the district that allow beverages on their premises while the district is active, which must be displayed at all times when the district is active. Requires the governing body of the city or county to approve any management and maintenance plans. Allows the city or county to establish guidelines in the ordinance establishing the social district or in its management and maintenance plan to allow for suspension of regular district days and hours in all or part of the social district during events requiring other permits. Allows permittees to be included in the social district who choose to exclude open containers purchased from other permittees. Prohibits customers from bringing beverages into a non-permittee business that does not display the uniform sign. Prohibits requiring non-permittee businesses to participate or be included in a social district or allow customers to bring beverages on its premises.

Establishes requirements for the sale of open containers by permittees for customers exiting the premises to the social district, including container criteria, such as clearly identifying the permittee and the social district, limiting the container to 16 fluid ounces, including a "drink responsibly" statement on the container, and prohibiting glass containers. Subjects sales to the drink limitations of GS 18B-1010. Sets forth six limitations for consumption of open containers in the social district, except where otherwise allowed by local ordinance, including complying with container requirements and number limitations set out in GS 18B-1010. Permits possession of closed containers in the social district as authorized by the Chapter. Deems non-permittees within a social district not responsible for the enforcement of the Chapter. Provides signage requirements for non-permittees that allow consumption on their premises, and requires allowing law enforcement access to the customer-accessible areas during that time. Allows permittees and non-permitted businesses in a multi-tenant establishment located within a social district to participate in the district regardless of a common permit. Establishes special event permits for events taking place partially or entirely within a social district, subject to permittee authority, notice, and hour limitations specified. 

Makes conforming changes to the following: GS 18B-502, GS 18B-904, GS 153A-145.9, and GS 160A-205.4.

Section 4

Enacts GS 18B-300.2, allowing a local government that has established a social district to enter into a memorandum of understanding (MOU) with an owner or owners' association of a multi-tenant establishment that has a common permit with a designated consumption area bordering the social district boundary, allowing for possession and consumption of approved open containers of both the social district and the designated consumption area during mutual active times, subject to the requirements of social districts and common permits and designated consumption areas set forth in GS 18B-300.1 and GS 18B-1001.5, as enacted. Prohibits customers from taking glass containers into a contiguous social district or the area of an overlapping social district outside the designated consumption area. Requires the holder of the common permit to submit a copy of the MOU to the ABC Commission, signed by both parties. Allows termination of the MOU by either party notifying the other party and the ABC Commission in writing. 

Changes the act's titles.