Bill Summaries: H 890 ABC OMNIBUS LEGISLATION.

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  • Summary date: Sep 13 2021 - More information

    AN ACT TO MAKE VARIOUS CHANGES TO THE ALCOHOLIC BEVERAGE CONTROL COMMISSION LAWS. SL 2021-150. Enacted Sept. 10, 2021. Effective Sept. 10, 2021, except as otherwise provided.


  • Summary date: Sep 8 2021 - More information

    Senate amendments make the following changes to the 4th edition. 

    Part XXV.

    Amendment #1 changes the effective date from August 1, 2021, to October 1, 2021, for the changes to GS 105-164.13, which exempts from sales tax sales of machinery, equipment, parts, and accessories for use in the manufacture of the following specified items by the following specified permittees, as well as supplies and ingredients used or consumed in the manufacture: unfortified winery permittees for the manufacture of unfortified wine; fortified winery permittees for the manufacture of fortified wine; brewery permittees for the manufacture of malt beverages; and distillery permittees for the manufacture of spirituous liquor.

    Part XXIX.

    Amendment #2 removes Part 29 from the act, with enacted GS 18B-1002.2, establishing an international trade market event permit, set the permit fee at $250, and allowed any international trade market event permit issued in 2021 to be used for three international trade market events of no more than 21 days per event. 


  • Summary date: Sep 1 2021 - More information

    Senate committee substitute makes the following changes to the 3rd edition.

    Part I.

    Revises new subsection (c3) of GS 18B-800, which authorizes ABC stores to accept online orders and payments, to specifically require online orders to include the name and unique identifier number of the individual placing the order who must be at least 21 years of age as shown on the form of identification authorized under specified state law who is otherwise legally authorized to purchase alcoholic beverages. Requires an ABC store employee to confirm that the online order is picked up in person at the store by the individual who placed the order by verifying the individual's identification that conforms to the identifying information contained in the online order. Eliminates the provision which required an online order that is not picked up within a time period determined by the ABC Commission to be returned to inventory in the ABC store and the person who placed the order refunded.

    Makes the provisions of Part I. effective October 1, 2021 (was, July 1, 2021).

    Part II.

    Amends the proposed changes to GS 18B-800(c1), which allow special order bottles to be affixed with personalized labeling, to specify that the label is to be affixed by the manufacturer, distiller, broker, or supplier of spirituous liquor. Requires that the label not cover any portion of the manufacturer's original label. Adds to the meaning of personalized label, previously limited to including the purchaser's name on the label, to include the purchaser's name or any individual, business entity, club, ABC Board or ABC store on whose behalf the bottle was purchased; "bottled for," "distilled for," "in honor of," or other similar language; or dates, locations, occasions, and other similar information.

    Amends the proposed changes to GS 18B-1105(a)(4), which allow visitors touring a distillery to purchase bottles of spirituous liquor sold by a distillery permittee with personalized labels, to mirror the changes made to GS 18B-800(c1) concerning personalized labeling for special orders.

    Makes the provisions of Part II. effective October 1, 2021 (was, July 1, 2021).

    Part III.

    Eliminates the proposed changes to GS 18B-1114.7, which added to the limitations and requirements of consumer tastings held by a spirituous liquor special event permits.

    Instead, enacts GS 18B-1006(n2), authorizing the ABC Commission to issue mixed beverage or mixed beverage catering permits without approval at an election to qualified establishments defined in GS 18B-1000(4) (defining hotel) and (6) (defining restaurant) that are located in a county that has more than two man-made lakes that has approved the sale of malt beverages and unfortified wine but not mixed beverages, so long as the establishment is open to the public and includes on its premises a hotel with accommodations for 20 or more overnight guests, agritourism activities, and firearm sports. 

    Part IV.

    Makes the proposed changes to GS Chapter 105 regarding local licenses set forth in Part IV. effective October 1, 2021 (was, July 1, 2021). 

    Part V.

    Makes new Article 62B, GS Chapter 106, which establishes the NC Spirituous Liquor Advisory Council, effective October 1, 2021 (was, September 1, 2021). Directs the Commissioner of Agriculture to make initial appointments to the Council by October 1, 2021 (was, September 1, 2021).

    Part VI.

    Makes the proposed changes to GS 18B-1105(a)(5), regarding the sale of spirituous liquor distilled at a distillery to visitors touring the distillery for consumption on premises, effective October 1, 2021 (was, July 1, 2021).

    Enacts GS 18B-1113.1, allowing the following to apply for and obtain a nonresident spirituous liquor vendor permit: (1) licensed or permitted out-of-State businesses who manufacture spirituous liquor whose products are lawfully sold in the State; (2) a brokerage, as defined; or (3) a liquor importer/bottler. Provides that a nonresident spirituous liquor vendor permit allows the permittee to sell, deliver, and ship spirituous liquor that has been approved for sale in the State to the permittee's employees in the State, or brokerage if the brokerage also holds the same permit for special event purposes. Bars the permittee from shipping or delivering more spirituous liquor to its employees or brokerage than is necessary for any consumer tasting event scheduled within one calendar month of the shipment or delivery. Specifies that the permitee is not required to do business in the State or to obtain a spirituous liquor special event permit. Sets the permit application fee at $100. Makes conforming changes to GS 18B-900. Amends GS 105-113.83A to require nonresident spirituous liquor vendor permittees to register with the Secretary of Revenue.

    Amends GS 18B-1114.1 and GS 18B-1114.5 to allow vendor representative permittees to obtain a winery special event permit or a malt beverage special event permit pursuant to each respective statute. Makes technical changes to each statute. 

    Eliminates the proposed changes to GS 18B-1114.7 concerning spirituous liquor special event permits. Instead, amends the statute as follows. Allows nonresident spirituous liquor vendor permittees to obtain a spirituous liquor special event permit. Expands the locations at which spirituous liquor special event permittees can give free tastings of its spirituous liquors to include farmers markets. Expands permittee authorities to include selling mixed beverages or spirituous liquor distilled or produced at the distillery in closed containers at trade shows, conventions, agricultural festivals, farmers markets, local fundraisers, and other similar events approved by the Commission. Adds to the limitations on consumer tastings to (1) restrict the permit holder or their authorized agent to providing tasting samples of products from one distillery per booth, kiosk, or display, and (2) prohibiting consumer tastings between 2:00 a.m. and 7:00 a.m., or before noon on Sundays unless authorized by local ordinance. Specifies that a permit holder's authorized agent cannot offer tasting samples to or allow consumption of tasting samples by any consumer who is visibly intoxicated (currently, prohibits the permit holder only). Specifies that the permit holder nor the permit holder's authorized agent (was, the permit holder only) can offer tasting samples to or allow consumption of tasting samples by any consumer under 21 (was, under the legal age for consuming spirituous liquor). 

    Enacts new subsection (b1) to GS 18B-1114.7, enumerating 10 limitations for the sale of mixed beverages with a consumer tasting under a spirituous liquor special event permit, including: (1) prohibiting such sales at shopping malls, street festivals, holiday festivals, or balloon races; (2) requiring the mixed beverages to contain only spirituous liquor distilled or produced at the distillery; (3) requiring the permit holder or the permit holder's authorized agent conducting the tasting or an employee of the permit holder or the permit holder's authorized agent conducting the tasting who is at least 21 to prepare the mixed beverages; (4) limiting sales to one mixed beverage per customer per calendar day, per distillery; and (5) prohibiting sales between 2:00 a.m. and 7:00 a.m., or before noon on Sundays unless authorized by local ordinance. 

    Enacts new subsection (b2) to GS 18B-1114.7, expanding the authority under a spirituous liquor special event permit to include providing spirituous liquor in closed 50 milliliter mini-bottle containers at no cost in conjunction with a consumer tasting, subject to 10 enumerated limitations, including: (1) requiring the spirituous liquor to be distilled or produced at the distillery; (2) limiting sales to one 50 milliliter mini-bottle of spirituous liquor per customer per calendar day, per distillery (allows a customer to possess a purchased mini-bottle while at the event); and (3) limiting the provision of spirituous liquor in closed containers to the hours between 9:00 a.m. and 9:00 p.m., except noon to 9:00 p.m. on Sundays, including holidays that are not on a Sunday.

    Adds to GS 18B-1114.7(c), which places limitations on consumer tastings conducted in an ABC store, to require the permit to be issued in the name of the distillery, or the name of the nonresident spirituous liquor vendor or the name of the business the supplier representative or brokerage representative represents. Finally, enacts new subsection (d) to define distillery under GS 18B-1114.7 to mean the holder of a distillery permit issued under GS 18B-1005 or a business located outside of the State that is licensed or permitted to manufacture spirituous liquor in the jurisdiction where the business is located and whose products are lawfully sold in the State. 

    Makes further conforming changes to GS 18B-1105(a)(5) regarding authorities of a distillery permittee. 

    Makes the above provisions effective 90 days after the date the act becomes law.

    Makes the proposed changes to GS Chapter 130A, which exclude distilleries and wineries from the sanitation rules adopted by the Public Health Commission for establishments that prepare or serve drink or food for pay, and the related directives, effective October 1, 2021 (was, July 1, 2021).

    Adds nonresident spirituous liquor vendor permits to the commercial permits that the Commission may issue under GS 18B-1100, adding to the proposed new authority to issue commercial spirituous liquor special event permits. 

    Part VII.

    Regarding the directive for the ABC Commission to implement the Growler Size Rule, 14B NCAC 15C .0307, as described and adopt a rule to amend the Growler Size Rule consistent with the directive, eliminates the provision which excepted rules adopted pursuant to this directive from Part 3, Article 2A of GS Chapter 150B (concerning the review of rules by the Rules Review Commission). Also eliminates the provision directing that rules adopted pursuant to the directive become effective as provided in GS 150B-21.3(b1) as though 10 or more written objections had been received as provided in GS 150B-21.3(b2). 

    Part VIII.

    Eliminates the content of previous Part VIII., which amends GS 18B-800, concerning local ABC boards' authority to fulfill orders by a mixed beverage permittee for individual bottles or cases of spirituous liquor produced by an eligible distillery that are listed as a regular code item for sale in the state; GS 18B-1001(19), regarding spirituous liquor tasting permits; and GS 18B-1105(a)(4), expanding the subdivision to further authorize distillery permittees to sell spirituous liquor produced at the distillery in closed containers to visitors who tour the distillery for consumption off the premises in the same manner as that distilled at the distillery.

    Makes the proposed changes to GS 18B-1105(a)(4) (previously organized in Part IX of the act), regarding the sale of bottles of spirituous liquor by a distillery permittee to visitors touring the distillery, with the parameters of the tour at the discretion of the distillery, effective October 1, 2021 (was, July 1, 2021). 

    Part IX.

    Eliminates the proposed changes to GS 18B-1105(a)(2) to allow distillery permittees to sell, deliver, and ship spirituous liquor in closed containers at wholesale or retail to consumers of other states or nations.

    Amends the proposed changes to GS 18B-1105(a)(1) (previously organized as Part XI. of the act), which authorizes distillery permittees to possess ingredients used in the distillation and production of spirituous liquor, adding that possession of ingredients also includes possession of spirituous liquor not distilled or produced at the distillery that is used for research and development or sample comparison of spirituous liquor. Makes the changes effective October 1, 2021 (was, July 1, 2021).

    Amends GS 18B-1001(19), adding to the authorities of a spirituous liquor tasting permit to allow the authorized consumer tasting events to be conducted on any part of the licensed premises of the distillery, except as prohibited by federal law. Effective October 1, 2021.

    Eliminates the proposed changes to GS 18B-1105(a)(5), authorizing distillery permittees conducting consumer tastings pursuant to GS 18B-1114.7 to conduct the tastings on any part of the licensed premises of the distillery.

    Amends new GS 18B-1105(d) (previously organized as Part XI. of the act), which explicitly allows for an alcoholic beverage sold or consumed under the statute to be sold or consumed on any part of the licensed premises of the distillery, to include possession of the beverage sold on any part of the licensed premises, notwithstanding GS 18B-301(e) which bars consumption at the place of sale. Adds that the new provisions do not allow spirituous liquor in closed containers sold for off-premises consumption to be consumed at the distillery. Makes the changes effective October 1, 2021 (was, July 1, 2021).

    Eliminates the directive requiring the ABC Commission to implement the Identification Rule (14B NCAC 15B .0224) as described, and adopt a rule to amend the Identification Rule consistent with the described directive. 

    Part X.

    Amends GS 18B-302(d) which sets forth defenses of a seller against violations for selling specified alcoholic beverages to persons under 21. Expands the existing defenses of showing that either the purchaser produced a special identification card meeting certain criteria, or used a biometric identification system demonstrated by the purchaser's age to be at least that required for the purchase and the purchaser had previously registered with the seller or their agent a special identification card meeting certain criteria, to allow for showing the same for purchasers with special identification cards issued by the state agency of any other state authorized to issue similar official state identification cards for that state as those issued under GS 20-37.7. Effective December 1, 2021. 

    Part XI.

    Makes the proposed repeal of GS 18B-1010(b) (previously organized as Part XIII.), which provides that not more than one alcoholic beverage drink may be sold to a single patron at one time if the beverages are sold (1) at a stadium, athletic facility, or arena on the campus or property of a public college or university or (2) during a sports event sponsored by a public college or university, effective on the date the act becomes law (was, July 1, 2021).

    Adds the following new content.

    Part XII.

    Amends GS 18B-1004 to make it unlawful to sell malt beverages, unfortified wine, fortified wine, or mixed beverages between 2:00 a.m. and 7:00 a.m., or to consume those alcoholic beverages between 2:30 a.m. and 7:00 a.m. in any place issued a permit under GS 18B-1105 (commercial distillery permittee authorizations), in addition to any place issued a permit under GS 18B-1001 (listing 21 kinds of ABC permits).

    Part XIII.

    Amends GS 18B-602 to include in the ballot language for a mixed beverage election the on-premises and off-premises sale of malt beverages and unfortified wine in qualified establishments. 

    Amends GS 18B-603(d), regarding issuance of permits in a jurisdiction that has held a mixed beverage election where the sale has been approved, authorizing the Commission to issue on-premises malt beverage permits or on-premises unfortified wine permits to any establishment that meets the permitting requirements of GS 18B-1001(1) or (3), respectively, regardless if any other local act concerning sales of those kinds of alcoholic beverages. Applies to jurisdictions that have approved the sale of mixed beverages prior to the effective date of the section unless the governing body adopts a resolution within 60 days of the section's effective date requesting an election to be held under GS 18B-601. Provides that if a resolution is adopted, GS 18B-602(a)(2) and (d)(2) (providing the ballot questions for on-premises sales of malt beverages and on-premises sale of unfortified wine only) must be voted on with the results controlling the issuance of on-premises malt beverage permits and on-premises unfortified wine permits in that jurisdiction unless other law applies. Makes changes to consistently refer to a "jurisdiction" which has voted to permit mixed beverage sales upon holding an election. 

    Makes the above provisions effective 90 days after the date the act becomes law.

    Part XIV. 

    Amends GS 18B-600 to allow a town to hold a mixed beverage election if the town has at least 200 registered voters, has a total area of less than one square mile, operated an ABC store, and is located in a county that has at least three cities that have approved the sale of mixed beverages (alternatively to the authority given to towns which meet the description under current law applicable to counties bordering the Neuse River and Pamlico Sound). 

    Part XV.

    Enacts GS 18B-800(c4) to authorize ABC stores to sell alcoholic beverages authorized for sale in a refrigerated unit, as defined. Effective October 1, 2021. 

    Part XVI.

    Amends GS 18B-903(c1), concerning alternating brewery proprietorships in which a holder of a brewery permit leases or otherwise makes available its facility to another brewery permittee, to specify that a host brewery can hold unfortified winery, fortified winery, and distillery permits pursuant to GS 18B-1101, -1102, and -1105, if authorized by federal law.

    Part XVII.

    Amends the definition of restaurant under GS 18B-1000 to further specify that to qualify as a restaurant, the gross receipts from food and nonalcoholic beverages must be at least 30% of the total gross receipts from food, nonalcoholic beverages, and alcoholic beverages sold for on-premises consumption (previously, did not specify that the total gross receipts calculated include alcoholic beverages sold for on-premises consumption only).

    Part XVIII.

    Adds to the authorities of commercial distillery permittees under GS 18B-1105, allowing for the sale of mixed beverages containing only spirituous liquor produced at the distillery for consumption on the premises, regardless of the results of any mixed beverage election, if the distillery is located on a property used for bona fide farm purposes.

    Part XIX.

    Adds to the types of permits the Commission can issue under GS 18B-1001, if lawful in the jurisdiction where the premises is located, an airport central storage permit. Makes the permit issuable to the owner of a bonded storage warehouse that meet specified TSA security standards. Authorizes the permittee to contract with retail permittees holding certain ABC permits with one or more retail locations at airports which service airplanes boarding at least 150,000 passengers annually to store at and transport from a central receiving facility alcoholic beverages to be sold or served at the retail permittee's airport locations, as specified. Sets the permit application fee at $400. Adds the permit to the commercial permits the Commission can issue under GS 18B-1100.

    Enacts GS 18B-1011 authorizing holders of four specified types of ABC permits (including holders of an on-premises malt beverage permit, an on-premises unfortified wine permit, an on-premises fortified wine permit, or a mixed beverages permit), for premises located within airport terminals, to contract with an airport central storage permittee for storage at the airport central storage permittee's licensed premises of the permittee's alcoholic beverages to be sold at the retail permittee's airport locations,  as well as transport from the storage facility to the retail permittee's premises or support location, as authorized by the Commission. Deems the storage location an extension of the retail permittee's licensed premises. Amends GS 18B-1203 and GS 18B-1303 to allow a wholesaler to distribute wine and malt beverages to a retail permittee's off-site airport storage premises.

    Makes the above changes effective 90 days after the date the act becomes law. 

    Part XX.

    Enacts GS 153A-145.9, concerning counties, and GS 160A-205.4, concerning cities, authorizing the adoption of an ordinance designating a social district for use in accordance with new GS 18B-904.1, as enacted.

    Enacts GS 18B-90, establishing requirements for city or county designated social districts, defined as a defined outdoor area in which a person can consumer alcoholic beverages sold by a permittee, which is defined as an establishment holding an on-premises malt beverage, unfortified wine, or fortified wine permit, a mixed beverages permit, or a distillery permit. Requirements for social districts include specified signage, city or county management and maintenance plans, and the submission of a detailed map of the social district's boundaries and hours to the ABC Commission. Establishes requirements for the sale of alcoholic beverages by a permittee located in or contiguous to a social district, including limiting sales to its licensed premises, meeting container specifications, and prohibiting entry or reentry on its licensed premises with an alcoholic beverage not sold by the permittee. Establishes requirements for the possession and consumption of an alcoholic beverage in a social district including limiting possession and consumption to the days and hours set by the respective city or county ordinance designating the social district and disposal of any alcoholic beverage prior to exiting the social district unless reentering the licensed premises where the beverage was purchases. Authorizes the ABC Commission to adopt rules imposing additional requirements. 

    Part XXI. 

    Enacts GS 153A-145.10, concerning counties, and GS 160A-205.5, concerning cities, authorizing counties and cities to adopt an ordinance authorizing permittees holding an ABC permit under Articles 10 or 11 of GS Chapter 18B (governing retail and commercial activity) to use an area that is not part of the permittee's licensed premises for the outdoor possession and consumption of alcoholic beverages sold by the permittee. 

    Amends GS 18B-904, enacting new subsection (h) to allow a permittee holding a permit issued under Article 10 or 11 that permits the on-premises consumption of alcoholic beverages to use an area not part of the licensed premises for the outdoor possession and consumption of alcoholic beverages sold by the permittee. Establishes 8 requirements and restrictions for the extension area, including that (1) the city or county in which the licensed premises is located has adopted an ordinance authorizing permittees to expand their licensed premises, (2) the permittee has obtained written permission for the expansion from the owner of the property to which the premises will be extended if not owned by the permittee, (3) the permittee has provided written notification and the written permission of the property owner (if applicable) to the district office of the ALE Division, and local law enforcement agency with jurisdiction over the licensed premises, (4) the permittee has marked off the extended area in an easily distinguishable way, and (5) the extended area is not used to increase occupant load, as defined. 

    Part XXII.

    Amends GS 18B-502 to specify that the "licensed premises for which an ABC permit has been issued" that ALE agents, ABC Commission employees, local ABC officers, and officers of local law-enforcement agencies contracted to provide ABC enforcement are granted authority to investigate the operation of, includes a social district and an extended area, as authorized by this act. 

    Part XXIII.

    Amends GS 18B-103 to allow the trade or exchange of lawfully purchased spirituous liquor if: (1) the transaction only involves the trade or exchange of lawfully purchased spirituous liquor for other lawfully purchased spirituous liquor; (2) the trade or exchange is only between individuals, for personal use only, and not for resale; (3) the spirituous liquor to be traded or exchanged is or has been approved by the Alcoholic Beverage Control Commission (ABC Commission) for sale in this state and is not unfit for human consumption; and (4) the spirituous liquor is not an antique spirituous liquor. 

    Requires the ABC Commission to adopt temporary rules to implement the act's provisions. Specifies that such temporary rules remain in effect until permanent rules that replace the temporary rules become effective.

    Effective October 1, 2021.

    Part XXIV.

    Amends GS 18B-204 by requiring the Commission to make a good-faith effort, without discrimination, to make all spirituous liquor it distributes available to all local boards. Requires the adoption of rules on the ordering of spirituous liquor by local boards. Authorizes the Commission to suspend distribution to a local board of any limited product required to be recorded by the Commission under new provisions, as enacted, for a violation of any rule concerning the ordering of the limited product. Prohibits a contractor that has entered into a warehousing contract under the statute from providing a local board with information that gives one board an advantage over another board on product selection, availability, or otherwise obtaining spirituous liquor distributed by the Commission. Violations are grounds to terminate the contract. Requires the Commission to keep a record of, and monthly update the record of, all products that the Commission either (1) limits distribution of due to limited availability or (2) allocates the distribution of to local boards. Requires the record to be available to local boards and sets out information that must be included in the records for all limited distribution or allocated products received by the Commission. Makes additional technical and clarifying changes. Effective January 1, 2021.

    Part XXV.

    Enacts a new sales tax exemption to GS 105-164.13 to exempt from sales tax sales of machinery, equipment, parts, and accessories for use in the manufacture of the following specified items by the following specified permittees, as well as supplies and ingredients used or consumed in the manufacture: unfortified winery permittees for the manufacture of unfortified wine; fortified winery permittees for the manufacture of fortified wine; brewery permittees for the manufacture of malt beverages; and distillery permittees for the manufacture of spirituous liquor. Effective August 1, 2021.

    Part XXVI.

    Amends GS 18B-1001.4 to specify that retailers that hold either an on-premises malt beverage permit, an off-premises malt beverage permit, an on-premises unfortified wine permit, an off-premises unfortified wine permit, an on-premises fortified wine permit, an off-premises fortified wine permit, or a wine shop permit, are not required to obtain a delivery service permit in order for employees of the retail permittee to deliver malt beverages, unfortified wine, or fortified wine to a location designated by the purchaser. Specifies that other provisions of the act related to delivery service permits apply to these retailers. 

    Part XXVII.

    Amends GS 18B-101 to include alcohol consumables under the definition of alcoholic beverage. Defines alcohol consumable as any manufactured and packaged ice cream, ice pop, gum-based, or gelatin-based food product containing at least 0.5% alcohol by volume. Further amends GS 18B-101, modifying the definitions of fortified wine, malt beverage, spirituous liquor or liquor, and unfortified wine to include any alcohol consumables. Applies to offenses committed on or after December 1, 2021.

    Amends GS 18B-206 to more generally allow the ABC Commission to set standards and adopt rules for alcoholic beverages (was, specifically for malt beverages, unfortified wine, fortified wine, and spirituous liquor). Makes conforming changes. 

    Amends GS 18B-804 concerning setting the sale price of spirituous liquor by adding (1) a charge of one cent, for non-bottled products, on each stock keeping unit containing no more than 50 milliliters and five cents on each stock keeping unit containing more than 50 milliliters; and (2) an additional charge for local boards, for non-bottled products, of one cent on each stock keeping unit containing no more than 50 milliliters and five cents on each stock keeping unit containing more than 50 milliliters. Makes conforming changes by no longer referring to those impacted charges as bottle charges. Amends GS 18B-805 by making conforming changes to the provisions concerning a local board's distribution of revenue, to refer to charges instead of bottle charges. Applies to spirituous liquor sold on or after December 1, 2021.

    Part XXVIII.

    Amends GS 18B-1001 (ABC permits) to add subdivision (22) establishing a common carrier vehicle permit for businesses operating common carriers under a certificate of authority by the North Carolina Utilities Commission to authorize the sale or service of alcohol in the passenger area of a common carrier on journeys of 75 miles or greater and which do not end within 10 miles of where the journey starts. Sets out limitations on hours in which alcohol can be sold, served, or consumed. Sets the permit fee at $1,000. Amends GS 18B-401 (prohibiting transportation of open containers and consumption of alcohol in vehicles) to make conforming changes. Effective 90 days after the date the act becomes law.

    Part XXIX.

    Enacts GS 18B-1002.2, establishing an international trade market event permit. Provides for permit issuance to a managed food services company, defined as a company that contracts to provide food services in an international trade market and that possesses a mixed beverages permit for a location within the premises described in the application, to sell or serve malt beverages, unfortified wine, fortified wine, or mixed beverages on specifically defined premises in an international trade market at which the managed food services company is providing services for consumption on premises. Defines international trade market as an annual or biannual credentialed event lasting not less than five consecutive days and open only to members of a particular trade or industry. Provides for the permit to be used at two international trade market events of no more than 21 days per event during the duration of the permit. Specifies premises description requirements for the permit application, which can include multiple buildings and public or private outdoor areas, including streets and sidewalks, subject to local acts. Grants permittees discretion over prohibited area locations and times. Requires clear signage for the defined premises at each event. Establishes a 30-day notification requirement for each international trade market event and duration. Requires notification of the ABC Commission of any change in premises bounds prior to permit expiration. Subjects authority under the permit to local restrictions and authorizations regarding the sale of the type of alcoholic beverage offered for sale or service. Sets the permit fee at $250.

    Allows any international trade market event permit issued in 2021 to be used for three international trade market events of no more than 21 days per event. Sets expiration of 2021 permits on April 30, 2022.

    Part XXX.

    Enacts GS 18B-404(f) to require local boards to offer delivery service to mixed beverage permittees, and allowing local boards to use its employees or to contract with one or more independent contractors in providing such delivery. Authorizes local boards to charge a delivery fee to the permittee. Allows local boards in a Tier 1 or Tier 2 county to request an exemption from the Commission. Requires the Commission to grant the exemption request if the local board can show evidence of unreasonable hardship or difficulty incurred by implementing delivery service. Amends GS 18B-701 to allow the local board to contract with more than one independent contractor in delivery spirituous liquor to a mixed beverage permittee. Makes conforming changes. Effective July 1, 2022. 

    Part XXXI.

    Amends GS 18B-1006, changing the criteria that must be met for the Commission to issue permits to boats that conduct regularly scheduled tours on State rivers or waterways. Now requires that the boat must offer food and non-alcoholic beverages for sale on each tour (replacing the requirement for the boat to serve meals on each tour and have a dining area with seating for at least 36 people). Additionally, now requires a boat’s gross receipts from sales of alcoholic beverages to not exceed 25% of its total gross receipts (replacing the requirement for a boat’s gross receipts from food and non-alcoholic beverages to be greater than its gross receipts from alcoholic beverages). Effective October 1, 2021.

    Part XXXII.

    Expands GS 14-309.26, which authorizes exempt organizations to conduct game nights at qualified facilities, as those terms are defined in GS 14-309.25, subject to the provisions of Part 4 of Article 37, which govern game nights. Adds a new subsection to authorize an exempt organization, defined in GS 14-309.25 to require continuous existence for at least five years, that is exempt from taxation under section 501(c)(3) of the Internal Revenue Code and operates a specialized community residential center for individuals with developmental disabilities licensed under GS Chapter 122C, to conduct a game night in a location that is not a qualified facility so long as the game night is conducted in accordance with the provisions of Part 4 and the exempt organization has been issued a special one-time permit under GS 18B-1002(a)(5) to be used for the game night.

    Part XXXIII.

    Maintains the directive for the Commission to adopt rules or amend its rules consistent with the act, and the savings clause for offenses committed before the effective date of the act, and organizes them into new Part XXXIII. 


  • Summary date: May 11 2021 - More information

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

    Part I.

    Revises new subsection (a3) of GS 18B-800 to now authorize ABC stores to accept online orders and payments for alcoholic beverages sold in its store so long as the person picking up the order, who is legally entitled to purchase alcoholic beverages, is the person who placed the order. Adds that an online order that is not picked up within a time period determined by the ABC Commission must be returned to inventory in the ABC store and the person who placed the order refunded.

    Directs the ABC Commission to adopt rules to determine how long a product purchased by an online order pursuant to new GS 18B-800(c3) to be set aside before being returned to inventory at an ABC store. 

    Part V.

    Revises new Article 62B to GS Chapter 18B as follows. Adds to the required membership of the North Carolina Spirituous Liquor Advisory Council required to be appointed by the Commissioner of Agriculture, at least one representative of the NC Association of ABC Boards.

    Part VI.

    Revises the proposed changes to GS 18B-1105(a)(5), regarding the sale of spirituous liquor distilled at a distillery to visitors touring the distillery for consumption on premises, establishing hours during which sales are permitted as follows, rather than permitting sales within the time and day restrictions of permittees under GS 18B-1004 (current law requires sales within the time and day restrictions of ABC stores set forth in GS 18B-802). Authorizes sales between 9:00 a.m. and 9:00 p.m. Monday through Saturday, between 12:00 p.m. to 9:00 p.m. on Sundays, and between 9:00 a.m. and 9:00 p.m. on New Year's Day, Fourth of July, Labor Day, and Thanksgiving Day, if these holidays do not fall on a Sunday. 

    Modifies the proposed changes to GS 18B-1114.7 to eliminate currently authorized locations of free tastings by spirituous liquor special event permittees (which may be holders of supplier representative permits, brokerage representative permits, or distillery permits), to no longer include shopping malls, street festivals, holiday festivals, and balloon races. Revises the expanded authority of the permittee to allow selling mixed beverages containing spirituous liquor or sell  spirituous liquor in closed containers at the same premises described for free tastings, as amended, to specify that these sales must contain or be of the spirituous liquor distilled or produced at the distillery. Adds a new limit, requiring the sale of spirituous liquor in closed containers under a spirituous liquor special event permit to be limited to 50 milliliter mini-bottle per customer.

    Makes changes to the heading provided to Part XIII.


  • Summary date: May 10 2021 - More information

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

    Part I.

    Revises new subsection (a3) of GS 18B-800 to now authorize ABC stores to accept online orders and payments for alcoholic beverages sold in its store so long as the person picking up the order is legally entitled to purchase alcoholic beverages (was so long as the person picking up the order is 21).

    Adds the following content to Part IV (previously reserved). Enacts new subsection (c) to GS 105-113.71 authorizing the Town of Cary to decline requiring a person who receives an ABC permit to obtain the corresponding local license from the municipality engaged in the activity authorized by the permit. Makes conforming and clarifying changes. Makes conforming changes and clarifying changes to GS 105-113.70. Makes conforming and clarifying changes to GS 105-113.77 to specify that the taxes set forth for corresponding city ABC licenses do not apply where cities decline to require a license pursuant to new GS 105-113.71(c).

    Part V.

    Revises new Article 62B to GS Chapter 18B as follows. No longer statutorily creates the NC Spirituous Liquor Council of the Department of Agriculture and Consumer Services. Instead, directs the Commissioner of Agriculture to appoint a North Carolina Spirituous Liquor Advisory Council, consisting of individuals who have education or experience in the spirituous liquor industry or in the field of tourism. Now sets forth Council membership to include members of the spirituous liquor industry, at least one representative of the NC Restaurant and Lodging Association, and at least one representative of the ABC Commission, and any other person selected by the Commissioner. Maintains that Council members are to receive no compensation or reimbursement for service. Makes conforming deletions of previous provisions regarding membership, terms, meetings, and staffing. Revises and eliminates Council powers and duties as follows. Now includes the duty to increase (was, achieve) public awareness of the quality of NC spirituous liquor, and eliminates the power or duty to: (1) receive and disburse funds; (2) enter into contracts for the purpose of developing new or improved markets or marketing methods for spirituous liquor products; (3) contract for research services to improve farming practices related to the growing of ingredients necessary for alcohol distillation in North Carolina; (4) enter into contracts with commercial entities for the purpose of developing marketing, advertising, and other promotional programs designed to promote the orderly growth of the North Carolina spirituous liquor industry; (5) acquire any licenses or permits necessary for performance of the duties of the Council; and (6) annually report to specified NCGA committee chairs and division. Now requires the Commissioner to make initial appointment to the Council by September 1, 2021. Deletes the previous provisions regarding initial appointments. 

    Part VI.

    Revises the proposed changes to GS 18B-1105(a)(5) to more specifically authorize a distillery permittee to sell only spirituous liquor distilled or produced at the distillery (was to sell its spirituous liquor), in addition to conducting consumer tastings, pursuant to GS 18B-1114.7, as amended.

    Part VII.

    Makes technical changes to the effective date provisions of Part VII, regarding the implementation and required amendment of the Growler Rule (14B NCAC 15C .0307).

    Part IX.

    Eliminates the proposed changes to GS 18B-1105(a)(2) and instead maintains existing law, which authorizes distillery permittees to sell spirituous liquor distilled or produced at the distillery in closed containers to visitors who tour the distillery for consumption off the premises. Adds new language to require length, content, and other parameters of the tour to be at the discretion of the distillery. Further adds that the distillery cannot be required to maintain records related to tours. 

    Part XI.

    Makes technical corrections to Section 11.1, which amends GS 18B-1105(a)(2) regarding distillery permittees, to provide for existing law. Makes technical corrections to the lead-in language.

    Makes technical changes to the effective date provision for the proposed changes to GS 1105(a)(5) set forth in Section 11.2 to refer to consumer tastings rather than events held by distillery permittees.

    Part XII.

    Makes technical changes to the effective date provisions of Section 12.1, regarding the implementation and required amendment of the Identification Rule (14B NCAC 15B .0224).


  • Summary date: May 7 2021 - More information

    Part I.

    Amends GS 18B-800(a), which provides that spirituous liquor can only be sold in ABC stores operated by local boards, to define "sold only in ABC stores operated by local boards" to include online order placed in accordance with new subsection (c3), as enacted. Enacts new subsection (c3) to authorize ABC stores to accept online orders and payments for alcoholic beverages sold in its store so long as the person picking up the order is 21. Limits liability under GS 18B-302(a)(2) to when the person knew the purchaser was less than 21 years old at the time the online order was placed. Effective July 1, 2021.

    Part II.

    Amends GS 18B-800(c1) to allow special order bottles to be affixed with personalized labeling, including the name of the purchaser on the label, that includes any other labeling requirements set by law.

    Amends GS 18B-1105(a)(4) regarding bottles of spirituous liquor sold by a distillery permittee to visitors touring the distillery, to allow the bottles to have a personalized label, including the name of the purchaser on the label, that includes any other labeling requirements set by law.

    Effective July 1, 2021.

    Part III.

    Adds to the limitations and requirements of consumer tastings held by a spirituous liquor special event permit under GS 18B-1114.7, to include that the permit must be issued in the name of the business listed on the permit application. 

    Effective July 1, 2021.

    Part V.

    Enacts new Article 62B to GS Chapter 18B, creating the NC Spirituous Liquor Council (Council) of the Department of Agriculture and Consumer Services (DACS). Enumerates powers and duties of the Council, including identification and implementation method for improving NC's rank as a spirituous liquor-producing State, enter into contracts for developing new or improved markets or marketing methods for spirituous liquor products, contracting for research services to improve farming practices related to growing necessary ingredients for alcohol distillation, and annual reporting to specified NCGA committee chairs and division. Details membership of the 10-member Council and provides for two-year terms, with initial terms commencing September 1, 2021; prohibits serving more than two consecutive terms. Provides for meetings and reporting by the Council, as well as staffing of the Council. Effective September 1, 2021. Provides for appointment of initial members to staggered terms. 

    Part VI.

    Further amends GS 18B-1105(a)(4) regarding bottles of spirituous liquor sold by a distillery permittee, changing a statutory cross-reference regarding hour restrictions of sales to refer to restrictions imposed on permittees instead of ABC stores. Effective July 1, 2021.

    Amends GS 18B-1114.7, expanding the authorized locations of free tastings by spirituous liquor special event permittees (which may be holders of supplier representative permits, brokerage representative permits, or distillery permits) to include farmers markets. Expands the authority of the permittee to allow selling mixed beverages containing spirituous liquor or sell its spirituous liquor in closed containers at the same premises described for free tastings. Makes changes to the limitations of permittees to refer to the event rather than tastings to reflect this expansion, as applicable; however, specifies that the tasting sample restrictions do not apply to the sale of spirituous liquor in closed containers or mixed beverages. Makes conforming changes to GS 18B-1105(a)(5) regarding authorities of a distillery permittee. Effective July 1, 2021.

    Amends GS 130A-247 to add and define distillery and winery, defined as licensed establishments that do not engage in the preparation of food (defined to exclude beverages) on the premises. Amends GS 130A-248 to exclude distilleries and wineries from the sanitation rules adopted by the Public Health Commission for establishments that prepare or serve drink or food for pay. Adds distilleries and wineries to the exemptions set forth in GS 130A-250. Provides a savings clause for penalties imposed and fees charged before the effective date of the act. Grants organizational authority to the Revisor of Statutes as necessary. Effective September 1, 2021. 

    Expands types of commercial permits under GS 18B-1100 to allow the ABC Commission to issue a spirituous liquor special event permit. Effective May 1, 2022. 

    Part VII. 

    Directs the ABC Commission to implement the Growler Size Rule, 14B NCAC 15C .0307, by defining growler as a rigid glass, ceramic, plastic, aluminum, or stainless steel container with a closure or cap with a secure sealing that is no larger than 4 liters into which a malt beverage or unfortified wine is prefilled, filled, or refilled for off-premises consumption. Directs the ABC Commission to amend the Growler Size Rule consistent with this directive.

    Part VII.

    Expands GS 18B-800(c2), which allows local ABC boards to fulfill orders by a mixed beverage permittee for individual bottles or cases of spirituous liquor produced by an eligible distillery that are listed as a regular code item for sale in the state. Modifies the definition set forth for eligible distillery under the subsection to include a distillery permittee (or the like in another jurisdiction) that sells fewer than 10,000 proof gallons of in-house brand spiritous liquors distilled or produced and manufactured by it at the permit holder's distillery per year (currently limited to those liquors distilled and manufactured by the permittee at the distillery per year). Adds to the requirements for ABC stores to display NC distilled spirits in a designated area to include spirits produced in North Carolina. 

    Expands GS 18B-1001(19), regarding spirituous liquor tasting permits, to allow those permittees to use the spirituous liquor produced at the distillery in addition to that distilled at the distillery where the event is being held.

    Expands GS 18B-1105(a)(4) to further authorize distillery permittees to sell spirituous liquor produced at the distillery in closed containers to visitors who tour the distillery for consumption off the premises in the same manner as that distilled at the distillery. 

    Effective July 1, 2021.

    Part IX.

    Further amends GS 18B-1105(a)(4) regarding bottles of spirituous liquor sold by a distillery permittee to visitors touring the distillery, to allow for the sale to visitors of the distillery (no longer requiring visitors to take a tour). Effective July 1, 2021. 

    Part X.

    Expands GS 18B-1105(a)(2) to allow distillery permittees to sell, deliver, and ship spirituous liquor in closed containers at wholesale or retail to consumers of other states or nations, unless the jurisdiction of the consumer required reciprocity in order to allow such sales, deliveries, or shipments. Effective July 1, 2021.

    Part XI.

    Further amends GS 18B-1105(a)(1) to also allow distillery permittees to manufacture, purchase, import, possess, and transport ingredients and equipment used in the production of spirituous liquor (was, limited to the distillation or the manufacturing of law alcohol beverage coolers). Adds that the authority to possess ingredients includes possession of spirituous liquor not distilled or produced at the distillery that is used for the production of spirituous liquor. Effective July 1, 2021.

    Further amends GS 18B-1105(a)(5) to authorize distillery permittees conducting consumer tastings pursuant to GS 18B-1114.7 to conduct the tastings on any part of the licensed premises of the distillery. Effective July 1, 2021.

    Adds a new subsection to GS 18B-1105 to allow an alcoholic beverage authorized to be sold or consumed under the statute to be sold or consumed on any part of the licensed premises of the distillery. Effective July 1, 2021. 

    Part XII.

    Directs the ABC Commission to implement the Identification Rule (14B NCAC 15B .0224) by making it the duty of the permittee and his employees to determine the age of any person consuming or possessing alcoholic beverages on the licensed premises, with acceptable identification to include a drivers license, special identification card issued by the Division of Motor Vehicles of any state, a military identification card, or a passport. Requires the ABC Commission to adopt a rule to amend the Identification Rule consistent with the described directive. 

    Part XIII.

    Effective July 1, 2021, repeals GS 18B-1010(b) which provides that not more than one alcoholic beverage drink may be sold to a single patron at one time if the beverages are sold (1) at a stadium, athletic facility, or arena on the campus or property of a public college or university or (2) during a sports event sponsored by a public college or university.

    Part XIV.

    Directs the ABC Commission to adopt or amend rules consistent with the act pursuant to the Administrative Procedure Act. 

    Provides a savings clause for prosecutions for offenses committed before the effective date of the act.


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