Bill Summary for H 363 (2019-2020)

Summary date: 

Apr 3 2019

Bill Information:

View NCGA Bill Details2019-2020 Session
House Bill 363 (Public) Filed Thursday, March 14, 2019
AN ACT TO CONFIRM THE STATE'S SUPPORT OF THE THREE-TIER SYSTEM FOR DISTRIBUTION OF MALT BEVERAGES AND THE FRANCHISE LAWS, TO MAKE ADJUSTMENTS TO MODERNIZE THE EXEMPTIONS TO THE THREE-TIER SYSTEM, AND TO PROMOTE THE GROWTH OF SMALL AND MID-SIZED INDEPENDENT CRAFT BREWERIES.
Intro. by Lewis, Bell, Jackson, Reives.

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Bill summary

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

Modifies the whereas clauses. 

Modifies the proposed changes to GS 18B-1104(a)(8) regarding the authority of a brewery permit holder to obtain a malt beverage wholesaler permit. Further specifies that the ABC Commission has no authority to grant an exemption to or otherwise allow a brewery permittee (previously not specified) more than three additional retail locations authorized. Clarifies that malt beverages manufactured by a supplier permitee (previously permittee was not specified) that owns 5% or more of a brewery permittee acting under the authorization is included in the determination of whether the brewery permittee complies with the barrelage limitations, as proposed. 

Amends GS 18B-1116 to require that any exemption entered by the ABC Commission in which any brewery or any officer, director, or affiliate of the brewery has a direct or indirect financial interest in the business of any retailer beyond the number of additional retail locations authorized by GS 18B-1104, as amended, must prohibit the brewery's malt beverages from being sold to or purchased by that retailer.

Adds that the act does not apply to any exemption order or amendment entered by the ABC Commission prior to the act's effective date that is renewed or issued after the effective date of the act.

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