Bill Summary for H 536 (2019-2020)

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Summary date: 

May 1 2019

Bill Information:

View NCGA Bill Details2019-2020 Session
House Bill 536 (Public) Filed Tuesday, April 2, 2019
Intro. by McGrady, Boles, Fisher, Hardister.

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Bill summary

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

Part I.

Makes additional changes to GS 18B-1303(b) to make the language gender-neutral.

Part II.

Modifies and makes clarifying changes to the proposed changes to GS 18B-1104(a) concerning the authorization to receive and sell malt beverages produced inside or outside the state under contract with a contract brewery. Now provides that the contract brewery that manufactures the malt beverages is responsible for all aspects associated with manufacturing the product. Establishes that, subject to the rules of the ABC Commission (Commission) and the Department of Revenue (Department), the brewery, not the contract brewery, is responsible for registering the contracted product with the Commission, submitting the appropriate reports regarding the malt beverages, and remitting the appropriate taxes if required by rule (clarifying previously proposed language; was not previously subject to Commission or Department rules).

Part VII.

Amends GS 130A-248 to exclude from the scope of the sanitation laws of Article 8 any ABC permitted establishment which prepares or serves food or drink to the public that meets the definition of bar. Adds bar to the defined terms set forth in GS 130A-247 and defines the term by referencing the definition set forth in GS Chapter 18B. Makes conforming changes to exempt bars from the provisions of Part 6, Regulation of Food and Lodging Facilities, of Article 8.

Part XI.

Eliminates the proposed changes to GS 18B-1005.1, regarding certain unlawful conduct or entertainment on a licensed premises.

Part XII.

Modifies proposed GS 18B-1010, which authorizes the sale and delivery by certain ABC permit holders, to no longer exclude from the authorization sales at a stadium, athletic facility, arena, or other establishment with a seating capacity of 3,000 or more.

Part XV.

Amends GS 18B-802, to now provide that the only authorized operating hours of an ABC store are between 9:00 a.m. and 9:00 p.m. on Monday through Saturday, and 12:00 p.m. and 5:00 p.m. on Sunday (previously provided 9:00 p.m. to 9:00 a.m. on Monday through Saturday and 12:00 p.m to 5:00 p.m. on Sunday as prohibited hours).

Part XVI.

Further amends GS 18B-1114.7(b) to add that any consumer tasting conducted in an ABC store is the sole responsibility of the permit holder. Further, prohibits local ABC board employees from participating in or conducting a tasting in an ABC store. 

Part XVII.

Amends proposed GS 18B-404, which allows for the electronic payment for spirituous liquor purchased by a mixed beverages permittee, by amending the definition of the term electronic payment to now mean payment by charge card, credit card, debit card, or by electronic funds transfer.

Changes the effective date of the statute from July 1, 2019, to October 1, 2019.


Amends proposed GS 18B-907, which allows for the electronic submission of payments and forms, by amending the definition of the term electronic payment to now mean payment by charge card, credit card, debit card, or by electronic funds transfer. No longer specifies that the fee that may be charged to cover costs if processing forms and accepting payment electronically is exempt as otherwise provided in GS 18B-404(e).

Part XX.

Amends proposed GS 18B-1001.4 by adding that a delivery service permittee must not deliver alcoholic beverages to a residence hall located on the premises of an institution of higher education, unless the governing body of that institution of higher education has given the permittee written authorization to do so. Makes additional clarifying changes to the statute. Makes the statute and the changes to GS 18B-902, which added a $400 delivery service permit fee, effective October 1, 2019.

Part XXI.

Adds a new Part to the act that amends GS 18B-1104 as follows. Allows a brewery permit holder to sell the malt beverages owned by the brewery at the brewery for on or off-premise consumption upon obtaining the appropriate permit, regardless of the results of any local malt beverage elections. Makes a conforming deletion by removing the provision that allowed, in an area where the sale of malt beverages has not been authorized, the permit holder that was a brewery producing agricultural products used by the brewery in the manufacture of malt beverages to sell the beverages when receiving specified approval for the city or county’s governing board. Effective October 1, 2019. Makes conforming changes to the act by renumbering the existing parts.