Bill Summary for H 536 (2019-2020)

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Summary date: 

Jul 8 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 3rd edition makes the following changes.

Changes the effective date of the following sections from July 1, 2019, to September 1, 2019: Section 2 (amending GS 18B-1104, concerning contract brewing); Section 8 (enacting GS 18B-1010, concerning the sale and delivery of drinks to a single person); Section 9 (repealing GS 18B-308 and GS 14-309.14(3), and amending GS 18B-112, concerning the sale and consumption of alcohol at bingo games); Section 11 (amending GS 18B-600, GS 18B-700, and GS 18B-703, concerning alcoholic beverage elections for new ABC boards); Section 14 (enacting GS 18B-907, concerning electronic forms and payment); Section 19 (amending GS 18B-303 and GS 18B-403, concerning mixed beverage permittees and purchase-transportation permits); Section 21(a) (enacting GS 18B-800(c1), concerning special orders of spirituous liquor); and Section 22(a) (amending GS 18B-701, concerning local ABC board powers). Additionally, changes the effective date of the act from July 1, 2019, to September 1, 2019, except as otherwise provided.

Part V. 

Modifies the proposed changes to GS 18B-1105 to maintain the current requirement restricting sales of spirituous liquor distilled at a distillery for on-premises consumption to visitors who tour the distillery (previously, eliminated the distillery tour qualification). Additionally, maintains current law requiring spirituous liquor sold at distilleries for visitors who tour the distillery to be at a price set by the ABC Commissioner for the code item under specified state law.

Further amends GS 18B-1116, which makes it unlawful for any manufacturer, bottler, or wholesaler of alcoholic beverages or specified affiliates to directly or indirectly take specified actions, including (1) having any direct or indirect financial interest in the business of any alcoholic beverage retailer in this state or in the premises where the business of any alcoholic beverage retailer in this state is conducted or (2) lending or giving any alcoholic beverage retailer in this state, their employee, or the owner of the premises where the business of any alcoholic beverage retailer in this state is conducted any money, service, equipment, furniture, fixtures, or any other thing of value. Expands the proposed changes to now provide that a distillery is not subject to these provisions concerning financial interests in, and lending or giving things of value to, a wholesaler or retailer (was, only a retailer) with respect to the distillery's transactions with the retail business allowed on its premises. Specifies that the distillery is subject to the provisions with respect to its transactions with all other wholesalers and retailers. 

Part XXI.

Amends proposed GS 18B-800(c1), making clarifying changes to the subsection's descriptor to specify the provisions concern special orders of special items. Further amends GS 18B-800, enacting subsection (c2). Requires a local board to fulfill an order by a mixed beverages permittee for individual bottles or cases of spirituous liquor produced by an eligible distillery that are listed a regular code item for sale in the state, and allows for direct shipment from an eligible distillery to the local board to fulfill the order if the local board cannot fulfill the order due to lack of inventory or time, subject to notification and authorization of the ABC Commission. Defines an eligible distillery to be a distillery that sells fewer than 10,000 proof gallons of in-house brand spirituous liquor distilled and manufactured by it at the permit holder's distillery per year, as specified, and that is either the holder of a distillery permit or is a business located outside the state licensed or permitted similarly in the state in which it is located and lawfully sells products in the state. Details the procedure for direct shipments, including the State ABC warehouse consigning the authorized merchandise to the distiller's account in care of the local board. Applies to special orders placed on or after September 1, 2019. Modifies the directive requiring the ABC Commission to develop and implement an online system to facilitate the sale and purchase of regular approved list items and special order list items of spirituous liquor by and among local ABC boards, now specifying a justification of the directive to be facilitating the sale of any remainders of a special items case (was, more specifically, by a local ABC board). Adds a new directive to require the ABC Commission to amend its rules consistent with Part XXI of the act, as amended.