House committee substitute makes the following changes to the 2nd edition.

Changes the act's long and short titles. Modifies the previous provisions and adds new provisions as follows.

Amends proposed GS 18B-1114.7, concerning spirituous liquor special event permits. Removes two of the 12 limitations previously set forth for consumer tastings conducted pursuant to the permit. Removes the provision prohibiting venues from allowing more than three different permit holders to conduct a consumer tasting at any event without board approval. Also removes the provision requiring permit holders to provide written notice of a consumer tasting to the Alcoholic Beverage Control (ABC) Commission (Commission) at least 48 hours before the tasting. Modifies the provision authorizing permit holders (previously, permit holders conducting the events) to provide point-of-sale advertising materials and advertising specialties to consumers at consumer tastings.

Amends GS 18B-112 by adding a new subsection (b1) authorizing the Eastern Band of Cherokee Indians tribe to adopt an ordinance allowing for the sale of alcohol beginning at 10:00 AM on Sunday pursuant to the licensed premises' permit issued under the authority of GS 18B-112(d).

Makes conforming changes to further amend GS 18B-1004(c), providing for new GS 18B-112(b1).

Deletes the proposed changes to GS 75-40(b), concerning rebates. Also deletes previous directives to the Commission to amend its rules no later than December 31, 2017, to permit each of six listed things, including rebate offers by members of the alcoholic beverage industry for the purchase of alcoholic beverages from specified suppliers, and to eliminate any rule or requirement that does any of four listed things, including prohibiting offers and advertisements of "2 for 1," "buy 1 get 1 free," "buy 1 get another for a __ (nickel, penny, etc.)," and any other similar statement.

Amends GS 18B-1001 to permit holders of specified alcoholic beverage sale permits to engage in the retail sale of malt beverages and unfortified wine, respectively, for off-premises consumption in a cleaned and sanitized container (currently requires the container to be cleaned, sanitized, and resealable). Does not affect the current authorization for retail sale of beverages for consumption on the premises, or of beverages in the manufacturer's original container. Makes technical changes. Requires the Commission to adopt rules to implement these changes no later than 60 days after the act becomes law; allows for the adoption of temporary rules. 

Enacts new GS 18B-1120, which authorizes breweries, wineries, and distilleries to store their beverages at a noncontiguous storage location approved by the Alcohol and Tobacco Tax and Trade Bureau. Requires the permitee to notify the Commission of any storage location used pursuant to this provision. Adds that any storage location used pursuant to this provision is considered part of the premises of the brewery, winery, or distillery manufacturing the alcoholic beverages.

Amends GS 18B-1001(3), as amended by this Act, to authorize the issuance of an on-premises unfortified wine permit to retail businesses.

Amends GS 18B-1104 to authorize the holder of a brewery permit to give its products to customers, visitors, and employees (currently employees and guests) for consumption on its premises, and clarifies that this provision does not exclude customers and visitors at the brewery as part of a paid or complimentary brewery tour.

Enacts new GS 18B-1121 (Authority to sample for sensory analysis, quality control, or educational purposes), authorizing commercial permittees under GS Chapter 18B, Article 11, to consume samples of alcoholic beverages it is licensed to sell, free of charge, for purposes of sensory analysis, quality control, or education.

Amends GS 18B-306 (Making wines and malt beverages for private use) to further authorize individuals to make, possess, and transport wines and malt beverages for organized affairs, exhibits, and competitions. Eliminates references to native wine, and deletes the provisions specifying what methods of making wines and malt beverages are allowed for private use. Prohibits the sale of wine and malt beverages made under this statute. Authorizes the production of wine or malt beverages (currently, beverages) under this statute without an Alcoholic Beverage Control permit. Makes additional technical and organizational changes.

Amends GS 18B-1116 to extend the exemption to the prohibitions concerning financial interest in and lending things of value to wholesalers or retailers, for breweries qualifying under GS 18B-1104(8), to those qualifying under GS 18B-1104(7), with respect to transactions with retail business on their premises or other retail locations allowed under GS 18B-1104(8), as described below.

Amends GS 18B-1104(7) to require holders of brewery permits to receive the appropriate permit under GS 18B-1001 prior to sale at the brewery or any additional retail location authorized, to require any beverages sold by the brewery to be approved by the Commission for sale in North Carolina, and to authorize the breweries to sell any alcoholic beverages approved for sale in North Carolina by the Commission and approved for sale in that area. Authorizes holders of brewery permits to further receive malt beverages manufactured by the permittee in some other state for transshipment to wholesalers licensed under GS Chapter 18B. Authorizes holders of brewery permits that produce agricultural products used by the brewery in the manufacture of malt beverages, in an area where the sale of malt beverages has not been authorized, to sell the malt beverages owned by the brewery and approved by the Commission for sale in North Carolina at the brewery for on- or off-premise consumption, in accordance with an obtained permit, regardless of the results of any local malt beverage election, upon receiving approval from the governing body of the city where the brewery is located, or if not within a city, the governing body of the county where the brewery is located. Requires city or county approval, whichever is applicable, be done by resolution of the governing body at a public meeting after proper notice and public hearing, as specified. Authorizes holders of brewery to sell malt beverages produced under subdivision (6a) of that statute (contract breweries), and clarifies that a sale at any additional retail location under subdivision (8) is not considered a wholesale sale for purposes of Article 13.

Amends GS 18B-1104 to direct the Commission to confirm by October 1 of each year that the holder of a brewery permit complies with GS 18B-900(a)(8). Authorizes the Commission to suspend a person's brewery permit until the Commission receives notice from the Department of Revenue that the person is in compliance. Directs brewery permit holders who obtain a malt beverage wholesaler permit to report to the Commission within 60 days of a request by the Commission six specified pieces of information regarding the amount of malt beverages sold. Prohibits the Commission from requesting more than one sales report from a brewery within a 12-month period. Requires the Commission to keep all information provided confidential except as required by law or requested from the Department of Revenue. Adds that this information is not public record. Makes technical and organizational changes.

Amends GS 18B-1105 to direct the Commission to confirm by October 1 of each year that the holder of a distillery permit complies with GS 18B-900(a)(8). Authorizes the Commission to suspend a person's distillery permit until the Commission receives notice from the Department of Revenue that the person is in compliance.

Makes conforming changes to GS 18B-903(c1), GS 18B-1001(l), GS 18B-1114.5(a), GS 18B-1116(a), and GS 18B-1305(a1). Also makes technical changes to GS 18B-1116.

Amends GS 105-113.70 to clarify provisions concerning the issuance of and qualifications for ABC permitees for local licensing. Provides that no documentation is required of an applicant except as set out in the statute. Establishes that issuance of a local license is mandatory if the applicant holds the corresponding ABC permit and provides: (1) a copy of the most recently completed State application form for an ABC permit exclusive of any attachments, (2) the ABC permit for visual inspection, and (3) payment of the prescribed tax. Makes conforming changes. 

Amends GS 18B-1114.1, adding farmers' markets to the list of locations at which a winery can provide free tastings of its wine and sell its wine by the glass or in closed containers pursuant to a winery special event permit.

Directs the Commission to adopt temporary rules to implement the act, which are to remain in effect until permanent rules that replace the temporary rules become effective. Adds that any rule or policy adopted by the Commission that does not comply with the act are void.