Bill Summary for H 768 (2021-2022)

Printer-friendly: Click to view

Summary date: 

Jun 23 2022

Bill Information:

View NCGA Bill Details2021
House Bill 768 (Public) Filed Monday, May 3, 2021
Intro. by Moffitt.

View: All Summaries for BillTracking:

Bill summary

Senate committee substitute deletes the content of the 2nd edition and replaces it with the following.

Section 1

Repeals GS 18B-1103, which allowed a winery holding an unfortified winery permit and that produces its wine principally from honey, grapes or other fruit or grain grown in this State to obtain a limited winery permit under which the winery could give visitors free tasting samples of the wine.

Section 2

Amends GS 18B-902 by adding a $300 fee for a packaging and logistics permit.

Enacts new GS 18B-1110.1 which allows the holder of a packaging and logistics permit to perform six specified activities, including: (1) receiving, in closed containers, malt beverages, unfortified wine, fortified wine, and spirituous liquor from a supplier, for the purpose of packaging, repacking, labeling, relabeling, storage, and shipping; (2) subject to record-keeping requirements, transport into or out of the State in closed containers the maximum amounts of malt beverages, unfortified wine, fortified wine, and spirituous liquor allowed under federal law, if the transportation is related to the packaging, labeling, sale, or storage allowed by this statute, and (3) sell, deliver, and ship malt beverages, unfortified wine, and fortified wine as provided in this statute in closed containers to suppliers and wholesalers licensed under GS Chapter 18B. Specifies that the permit does not allow the holder to manufacture alcoholic beverages except for packaging, repackaging, labeling, and relabeling. Prohibits the permit holder from selling, delivering, or shipping malt beverages, unfortified wine, fortified wine, or spirituous liquor directly to consumers or to retail establishments in the State. Specifies that this statue does not abrogate the provisions of GS 18B-1119 (supplier's financial interest in wholesaler). Specifies that malt beverage and wine distribution agreements applicable between a wholesaler and an original supplier are governed by Articles 12 (Wine Distribution Agreements) and 13 (Beer Franchise Law) of GS Chapter 18B. 

Effective August 1, 2022.

Section 3

Repeals GS 18B-403 which sets out provisions governing the issuance and use of a purchase transportation permit. Makes a conforming change to GS 18B-101 by removing the listed exclusion for a purchase transportation permit. Makes conforming changes to GS 18B-600, GS 18B-901, GS 18B-1001, GS 18B-1002, and GS 18B-1007.

Repeals GS 18B-303 which limited what a person purchases at one time without a permit to: (1) not more than 80 liters of malt beverages, except draft malt beverages in kegs for off-premises consumption; (2) any amount of draft malt beverages by a permittee in kegs for on-premise consumption; (3) not more than 50 liters of unfortified wine; and (4) not more than eight liters of either fortified wine or spirituous liquor, or eight liters of the two combined. Included exceptions, including specified exceptions for individuals with a purchase-transportation permit and mixed beverage permittees, or their employees. Makes conforming changes to GS 18B-1002.1 and GS 18B-1006.

Repeals GS 18B-400 which provided that a person may transport at one time the same amount of alcoholic beverages allowed to be bought under GS 18B-303(a), with exceptions allowed for those with a purchase-transportation permit and distillery representatives.

Amends GS 18B-401 by removing the cap on how much fortified wine or spiritous liquor (or combination thereof) may be transported by each passenger in a for-hire passenger vehicle.

Repeals GS 18B-402 which limited the amount of alcoholic beverages purchased out of state that a person may bring into North Carolina to the same amounts that may be legally transported within the State under GS 18B-400 or GS 18B-403 (also repealed in this act), with a cap on spirituous liquor of four liters.

Repeals GS 18B-403.1 concerning purchase-transportation permits for keg or kegs of malt beverages.

Repeals the following subsections of GS 18B-404: (1): (a) which allowed a mixed beverages permittee may designate an employee to purchase and transport spirituous liquor as authorized by the permittee's permit; (2): (b) which provided that if mixed beverages sales have been approved for an establishment the specified statutes, or for an establishment located in a township in which mixed beverages have been approved the purchase-transportation permit for that establishment may be issued by the local board of any city located in the same county as the establishment, provided the city has approved the sale of mixed beverages and specified that otherwise a licensed establishment may obtain a mixed beverages purchase-transportation permit only from the local board for the jurisdiction in which it is located; and (3): (d) which required a purchase-transportation permit for a mixed beverages permittee to authorize the purchase and transportation only of 355 milliliter or larger containers. Makes conforming changes to GS 18B-603 and GS 18B-1006.

Repeals GS 18B-405 which allowed holders of a permit for the retail sale of malt beverages, unfortified wine, or fortified wine, to transport in the course of his business any amount of the alcoholic beverage he is authorized to sell, without a purchase-transportation permit or a commercial transportation permit.

Repeals GS 18B-406 which made it illegal to transport a greater amount of alcoholic beverage than permitted by Article 4 (Transportation), unless the transportation is authorized under Article 11 (Commercial Activity).

Repeals GS 18B-701(a)(7), thereby removing a local ABC board's authority to issue purchase-transportation permits.

Amends GS 18B-1115 as follows: (1) removes the provision requiring a permit for each person transporting alcoholic beverages in excess of the specified amounts of malt beverages other than those in kegs, unfortified wine, fortified wine or spirituous liquor; (2) remove the prohibition on obtaining a permit to transport spirituous liquor unless the transportation is for delivery to a federal reservation over which North Carolina has ceded jurisdiction to the US, for delivery to an ABC store, or for transportation through this State to another; and (3) make gender neutral and makes a technical change.

Section 4

Revises the provisions of GS 18B-903(c), relating to the change in ownership of the premises of an ABC permitted establishment, which requires all ABC permits to automatically expire if ownership changes. Places the existing provisions regarding automatic expiration in new subdivision (1) of the subsection, including existing thresholds for acquired shares or stock of a partnership or corporation that constitutes a change in ownership. Enacts new language in subdivision (2) to allow any person who becomes lawfully entitled to the use and control of the premises of a permitted establishment to continue its operation to the same extent as the prior permittee, so long as the person submits an application for a new permit to the ABC Commission within 60 days after the change in ownership. Mandates that the permit expires automatically if the person does not apply for a new permit within 60 days after the change in ownership. Makes conforming changes.

Section 5

Enacts GS 18B-1006(a)(11), establishing a new exception to the prohibition against issuing permits to a business on the campus or property of a public school, college, or university. Allows for the sale of malt beverages, unfortified wine, fortified wine, or mixed beverages for consumption on the premises at a professional sporting event held at a stadium owned by a community college that is located in a township that has previously voted to allow the operation of ABC stores, if the Board of Trustees of the community college has voted to allow the issuance of permits for use at the stadium. Requires the Board of Trustees to give the ABC Commission written notice of its vote to allow the issuance of permits. Allows for the issuance of any ABC permits described in GS 18B-1001 (providing 23 distinct ABC permits), 18B-1002(a)(2) (providing a special one-time permit for nonprofit organizations for a fundraising event), or GS 18B-1002(a)(5) (providing for a special one-time permit for a local government or nonprofit for fundraising for the local government). Defines 'premises of a stadium' as the area within 500 feet of the furthest exterior building wall, perimeter fence, or permanent fixed perimeter; designated by the stadium in a map or written description and included in the permit application; and designated in a manner that enable the stadium to ensure compliance with GS Chapter 18B. 

Section 6

Replaces the definition of private bar under Article 10, Retail Activity, GS Chapter 18B. Defines the term as an establishment that is primarily engaged in the business of selling alcoholic beverages and that does not serve prepared food; excludes a brewery, winery, or distillery (previously, defined as an establishment organized and operated for-profit that is not open to the public but is open only to the members of the organization and their guests for the purpose of allowing its members and their guests to socialize and engage in recreation). 

Section 7

Amends GS 18B-1001(12) to allow a mixed beverages catering permit to also be issued to a distillery (currently, limited to hotels and restaurants). Specifies that a mixed beverages catering permit issued to a distillery allows the distillery to bring spirituous liquor onto the premises where a hotel or restaurant is catering food for an event and serve the liquor to guests at the event, regardless of whether the hotel or restaurant holds the same permit.

Section 8

Amends GS 18B-1105, expanding the authority of distillery permittees to allow a permittee to sell mixed beverages containing spirituous liquor produced at that distillery for consumption on the premises, upon obtaining a mixed beverages permit under GS 18B-1001, in an area where the sale of mixed beverages has not been approved by a local election. 

Changes the act's titles.