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.