Bill Summary for H 536 (2019-2020)

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Summary date: 

Jun 27 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 2nd edition makes the following changes.

Eliminates all provisions of the following: Part V (amended GS 18B-1006 concerning the sale of alcoholic beverages at public college or university stadiums, athletic facilities, or arenas); Part VI (amended GS 18B-108 concerning sales of alcoholic beverages on trains and ferries); Part VII (amended GS 18B-1000 and GS 18B-1001, authorizing bars to obtain on-premises ABC permits, with related amendments to GS 130A-248); Part VIII (amended GS 18B-1105, allowing distilleries to sell spirituous liquor distilled by the distillery directly to out-of-state consumers); Part XV (amended GS 18B-802 and enacted GS 153A-145.9 and GS 160A-205.5 to provide local flexibility in ABC store hours and days of operation). Makes conforming organizational changes.

Part VIII.

Modifies proposed GS 18B-1010, changing the four-drink limit that an on-premises malt beverage, wine, or fortified wine permit holder can sell and deliver to a single patron for consumption on the premises to two alcoholic beverage drinks per single patron.

Part X.

Eliminates the proposed changes to GS 130A-250, which exempted licensed breweries not engaged in food preparation from food and lodging facility sanitation regulations. 

Instead, amends GS 130A-247 to define brewery to mean an establishment licensed under GS 18B-1104 that is not engaged in the preparation of food (excluding beverages) on the premises, and amends GS 130A-248 to exempt ABC permitted establishments meeting the definition of a brewery, as defined, from compliance with sanitation laws under Article 8, as specified. Makes conforming changes to GS 130A-250 to explicitly exempt breweries, as defined, from the food and lodging facilities laws in Part 6 of Article 8.

Part XI.

Enacts GS 18B-700(c1) to prohibit the creation of any new local ABC boards in any county where a local board operates an ABC store unless the new board enters into an agreement to merge with an existing board. Specifies that the new provision does not prohibit local boards from serving multiple cities and/or counties.

Amends GS 18B-600 to allow a jurisdiction in a county where an ABC board is already in operation to hold an ABC store election if the jurisdiction has already negotiated a merger if approved, and the details of the planned merger have been made available to all registered voters in the jurisdiction. Explicitly limits elections to cities in which at least one other city in the same county operates an ABC store.

Amends GS 18B-703 to restrict dissolution of a merger if a city or county is merging with a different local board or the city or county is ceasing operation of all ABC stores within the city or county.

Applies to elections held on or after July 1, 2019.

Part XII.

Modifies the proposed changes to GS 18B-1114.7 to make organizational changes and add to the limitations set forth for consumer tastings conducted in an ABC store. Now provides the following: (1) the spirituous liquor used in the tasting must be purchased by the permit holder from any ABC store at a price set by the ABC Commission, with the permittee responsible for removing remaining liquor from the event from the premises; (2) the local board must limit tasting to between 1:00 p.m. and 7:00 p.m. on any day the store is authorized to sell spirituous liquor, and for no more than three hours; (3) the local board must limit the tasting events per ABC store to three tastings per calendar year and two different permit holders per tasting event; (4) the total samples offered to or consumed by each customer cannot exceed one-half ounce in any calendar day; (5) permit holders conducting the event cannot conduct any sales of branded merchandise or apparel to consumers at the event; (6) prohibits local boards or permit holders from advertising or promoting the tasting event to the public except as specified; (7) requires the permit holder to provide at least 48 hours' written notice to the ABC Commission of the tasting event; (8) allows local boards to impose additional conditions, so long as they are written and noticed as specified; and (9) prohibits permit holders from providing consideration or any unlawful inducement to a local board, its board members, or its employees for any purposes related to the tasting event.

Part XIII.

Amends proposed GS 18B-404(e), to exclude payment by charge card or credit card from the term electronic payment (previously, included in the term).

Part XV.

Amends the proposed definition of multi-tenant establishment set forth in GS 18B-1000 to exclude a shopping mall with more than 50% of the shopping mall's square footage enclosed and air conditioned.

Amends the conditions for common area entertainment permits, established in proposed GS 18B-1001(21), to require alcoholic beverages sold for consumption in a designated common area to be dispensed only in a container that clearly identifies the licensed premises from which the beverage was purchased (previously, required dispensing in a paper or plastic cup bearing the name, logo, or name and logo of the licensed premises from which the beverage was purchased). Makes conforming changes. 

Part XVI.

Amends proposed GS 18B-1001.4 to give the ABC Commission 15 business days to approve, deny, or request modifications to a delivery service permit holder's proposed training program. Specifies that the new statute does not require a technology services company to obtain a delivery service permit if the company does not employ or contract with delivery drivers, but instead provides software or an application that connects consumers and licensed retailers for the delivery of alcoholic beverages from the licensed retailer.

Directs the ABC Commission to begin accepting delivery service permit applications and approving training programs by September 1, 2019.


Amends GS 18B-1001 to allow sports and entertainment venues to obtain an on-premises fortified wine permit and a special occasion permit.

Part XIX.

Amends GS 18B-303 to allow a mixed beverage permittee or its employee to purchase and transport any amount of fortified wine or spirituous liquor for use by the mixed beverage permittee without obtaining a purchase-transportation permit. Allows a local board employee to transport to a mixed beverage permittee any amount of fortified wine or spirituous liquor purchased by the permittee without obtaining a purchase-transportation permit. Deems independent contractors employed pursuant to GS 18B-701(a)(1), as amended, neither an employee of a mixed beverage permittee or a local board under these provisions. Makes conforming changes to GS 18B-403. Applies to fortified wine and spirituous liquor purchased on or after July 1, 2019.

Part XX.

Directs the ABC Commission to submit a quarterly report beginning October 15, 2019, to the specified NCGA committee detailing the progress made in bidding and selecting an independent contractor for the receipt, storage, and distribution of spirituous liquor at and from the State warehouse in accordance with GS 18B-204(a)(3). Sets out the parameters for the report. Terminates the reporting requirements upon the earlier date of the award of the contract for services described in GS 18B-204(a)(3) or January 1, 2022.

Part XXI.

Amends GS 18B-800, requiring ABC stores to allow the purchase of individual liquor bottles on the ABC Commission’s approved list by special order through a process established by rule by the ABC Commission. Further, allows ABC stores to sell in stores any bottles it receives in excess of what was purchased by the customer requesting the special order. Applies to special orders placed on or after July 1, 2019.

Requires the ABC Commission to develop and implement an online system to facilitate the sale and purchase of spirituous liquor items and special order list items by and among local ABC boards.

Part XXII.

Amends GS 18B-701(a), authorizing a local ABC board to charge a fee for the provision of delivery, by its employees or an independent contractor, of liquor to a mixed beverages permittee. Explicitly authorizes a mixed beverages permittee to contract with an independent contractor for the provisions of spirituous liquor deliveries from an ABC board's store or warehouse to the permittee's premises. Makes technical and clarifying changes. Applies to deliveries made on or after July 1, 2019.

Directs the Commission to adopt rules to implement the statute, including parameters for the delivery fee and requirements for independent contractors making deliveries.