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

Further amends GS 115C-375.3 to require the governing bodies of public school units, instead of local boards of education and boards of directors of charter schools to: (1) require the implementation of the procedures that are in the guidelines for the development and implementation of individual diabetes care plans; and (2) make available necessary information and staff development in order to support and assist students with diabetes according to their individual care plans. Changes the statute’s catchline and makes technical changes.

Amends GS 115C-150.12C (applicable to schools for deaf and blind students), GS 115C-238.66 (applicable to regional schools), and GS 116-239.8 (applicable to laboratory schools) to require compliance with GS 115C-375.3, including the guidelines for individual diabetes care plans adopted by the State Board of Education for assisting and supporting students enrolled in the school with diabetes and the annual notification requirements related to Type 1 and Type 2 diabetes awareness. Makes conforming organizational changes.

Amends the appropriation to the Department of Public Instruction so that it is for the 2026-27 (was, 2025-26) fiscal year.

Changes the act’s effective date to July 1, 2026 (was, 2025), applicable beginning with 2026-27 (was, 2025-26) school year.

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

Extends the effective date of the act’s changes to GS 18B-101(4a) (adding whipped cream to alcohol consumable), GS 18B-800 (prior notice of lottery), new GS 18B-1004.1 (variable pricing), and GS 18B-905 (temporary permits) by one year.

Removes the following provisions:

• Section repealing GS 18B-1116(a)(4), which prohibits manufacturers, bottlers, and wholesalers of alcoholic beverages from providing draft line cleaning services to alcoholic beverage retailers unless the retailer pays fair market value for the services.
• Changes to GS 18B-802, GS 18B-112, GS 153A-145.7, GS 160A-205.3, and GS 18B-1004(c) which would have allowed ABC stores to be open on Sunday with local government approval.

Section 2.

Makes the following changes to the mobile bar services permit under GS 18B-1001(12a). Expands the authorizations under the permit to allow the permittee to serve alcoholic beverages to guests at an event occurring on premises owned or possessed by the holder of the permit. Limits the persons from whom a permittee may purchase malt beverages and unfortified wine to retailers (currently, retailers or wholesalers). Limits where a permittee can purchase fortified wine and spirituous liquor from to an ABC store (currently, can also purchase from a wholesaler). Now prevents a permittee from storing alcoholic beverages under its permit on premises owned or possessed by the permit holder (currently, cannot serve alcohol on those premises). Makes clarifying changes. Prevents a permittee form selling tickets or charging individuals for entry to any event at which the permittee is providing mobile bar services.

Adds new Section 3, consisting of the following.

Modifies Section 6 of SL 1969-626, as amended, so that 10% of the net profits of the Town of Angier's Alcoholic Control Board are now allocated to recreation programs within the town (currently, paid to the library). Specifies that any undistributed funds prior to the effective date of the act will be distributed for the purpose of recreation programs in the town, instead of to the library.

Adds new Section 4, consisting of the following.

Now allows a mixed beverage permit holder who is unable to have their order filled by a local ABC board to obtain a waiver that authorizes the permit holder to obtain the product from any other ABC store in the State that is designated as a mixed beverage store. Provides for a standard waiver form. Specifies that the waiver is valid for 90 days from its date of issue. Makes clarifying and technical changes. Makes conforming change to GS 18B-404(c) to account for waiver option. Applies to orders placed by a mixed beverage permittee on or after August 1, 2026.

Adds new Section 5, consisting of the following.

Allows, in GS 18B-1114.7, a permit holder conducting a consumer tasting in an ABC store to prepare and offer for tasting mixed beverages containing the spirituous liquor offered for tasting at the ABC store so long as it is no more than .25 ounces of the liquor. Specifies that the .5 ounce per day limit on spirituous liquor samples also applies to mixed beverages.

Section 8 places the proposed changes to GS 18B-1005 that were in Section 9 into new GS 18B-1004.1 instead. Amends the conditions on temporary pricing adjustments to also allow them to be provided to a law enforcement officer with jurisdiction. Also specifies that outside advertising signs are subject to local ordinances regulating outdoor signage.

Makes the following changes to Section 10 (was, Section 11).

Expands the types of events conducted by nonprofit organizations or units of local government where no permit is required under GS 18B-1002(a)(kinds of permits) to include: (1) when the event is held on a premises that does not hold a permit under GS Chapter 18B and the wine, malt beverages, and spirituous liquor sold or served at the event is provided by either a mobile bar services, mixed beverages catering, malt beverage special event, winery special event, or spirituous liquor event permit holder in a manner  allowed under that permit. Clarifies that the permit exceptions for local governments apply when the ticketed event is conducted by a unit of local government, nonprofit organization, or political organization (was, just nonprofit organization). Makes technical and organizational changes.

Makes the following changes to Section 12 (was, Section 13).

Expands the permit holders subject to the two-beverage at a time sale limit in GS 18B-1010(a) to include those authorized to sell malt beverages, unfortified wine, fortified wine, or mixed beverages for on-premises consumption. Makes conforming change to the drink sale limit in GS 18B-1001(10) (pertaining to mixed beverage permit holders for sales of mixed beverage drinks for delivery on consumption off premises). Applies to alcoholic beverages sold on or after October 1, 2026.

Section 13 (was, Section 14).

Removes provisions deleting the exception for personal use of fortified wine and spirituous liquor without an ABC permit on another person’s noncommercial property with their consent in GS 18B-301(b). Instead modifies the exception so it applies to property that is not a permitted premises (currently, can’t be used for commercial purposes) where the alcohol is being used with the owner’s consent. Modifies the special occasions exception for a private party, private reception, or private special occasion so that other property that is not the person’s home or temporary residence can be primarily used for commercial purposes, so long as it meets the other components of the exception (i.e., that the property is under the person’s exclusive control and supervision  and is not open to the public during the event). Makes technical changes. Applies to fortified wine and spirituous liquor possessed or consumed on or after October 1, 2026.

Adds the following new Sections 14-21.

Section 14

Amends GS 18B-200 by increasing the number of associate members on the North Carolina Alcoholic Beverage Control Commission (Commission) from two to four. No longer specifies that the chair’s salary must be fixed in the Current Operations Appropriations Act, just requiring it to be fixed by the NCGA. Makes the Governor responsible for appointing the chair and two associate members. Makes one associate member, who must be a current or former holder of a retail or commercial ABC permit, appointed by the President Pro Tempore of the Senate, and one associate member who also must be a current or former holder of a retail or commercial ABC permit, appointed by the Speaker of the House. Members serve at the pleasure of the appointing entity. Makes conforming changes.

Amends GS 18B-201 to no longer prohibit a person from being employed by the Commission if they or a member of their family controls a financial interest in any commercial alcoholic beverage enterprise. Makes conforming changes.

Effective December 1, 2026.

Section 15

Amends GS 18B-104, concerning administrative penalties, to prohibit the Commission from seeking any administrative penalties under the statue unless the Commission, within three years of receiving a permittee’s alleged violation of the ABC laws from law enforcement, sends a notice to the permittee of the alleged violation or files a petition for a contested case against the permittee. Allows contested cases commenced or maintained in violation of this provision to be dismissed. Specifies that this provision does not apply to orders of suspension or revocation under the specified statutes. Makes conforming changes to GS 18B-1001.4.

Section 16

Enacts new GS 105-113.85A allowing a taxpayer a credit against the taxes under Article 2C (Alcoholic Beverage License and Excise Taxes) for: (1) a local ABC Board or distillery in an amount equal to the tax due in the period covered by the return that is attributable to the sale of spirituous liquor produced by a registered microdistillery; or (2) a wholesaler or importer in an amount equal to the tax due in the period covered by the return that is attributable to the sale of malt beverages produced by a registered small brewery. Set out registration requirements and requires the Secretary of Revenue to keep a record of all registered persons and make it available online. Allows a taxpayer to rely on the list when taking the credit, but specifies that the taxpayer forfeits the credit on product produced by a registered person for any month in which it is determined that the credit was not allowed. Makes taxpayers who avoided tax by taking a credit in violation of the statute liable for all past avoided taxes plus interest and also allows charging a penalty. Does not allow a credit on spirituous liquor, antique spirituous liquor, or malt beverages that are: (1) sold by the distillery or brewery that produced the product in any month in which the distillery or brewery was registered but did not qualify as a microdistillery or small brewery, as applicable, or (2) sold by a person other than the distillery or brewery that produced the product in any month in which the person knew the distillery or brewery was registered but did not qualify as a microdistillery or small brewery, as applicable. Amends GS 105-113.68 by defining relevant terms, including defining microdistillery as a distiller that withdraws no more than 50,000 proof gallons of spirituous liquor annually from bonded premises; if a distillery is part of a controlled group (as defined), the group must withdraw no more than 50,000 proof galls of spirituous liquor annually from bonded premises. Defines a small brewery as a brewery that produces no more than 600,000 barrels of malt beverages annually; if it is part of a controlled group, the controlled group must produce no more than 600,000 barrels of malt beverages annually.

Effective January 1, 2027, and applies to malt beverages and spirituous liquor first sold or otherwise disposed of on or after that date; however, the Secretary of Revenue may begin registering persons as a microdistillery or small brewery under GS 105-113.85A(b), as enacted by this section, on September 1, 2026.

Section 17

Amends GS 18B-1000 to define a service business as an establishment that is primarily engaged in the business of providing services to the general public that require an occupational license issued by the State. Amends GS 18B-1001 to define a service business permit as one that authorizes the permittee to furnish complimentary malt beverages and unfortified wine to customers, in conjunction with the provision of the service, for consumption on the permittee's premises at no extra charge to the customers. Allows the permittee to furnish alcoholic beverages to customers only in accordance with GS 18B-603(i). Prohibits serving more than two servings (as defined) of alcoholic beverages to any individual customer in any calendar day. Allows the permittee to purchase malt beverages and unfortified wine only from a retailer. Allows the permit to be issued to service businesses.

Amends GS 18B-603 to allow the Commission to issue service business permits to qualified persons and establishments located within a jurisdiction in which on-premises malt beverage permits or on-premises unfortified wine permits may be issued, subject to the following: (1) if on-premises malt beverage permits, but not on-premises unfortified wine permits, may be issued in the jurisdiction, the service business permittee may furnish only malt beverages to customers; (2) if on-premises unfortified wine permits, but not on-premises malt beverage permits, may be issued in the jurisdiction, the service business permittee may furnish only unfortified wine to customers; or (3) if on-premises malt beverage permits and on-premises unfortified wine permits may be issued in the jurisdiction, the service business permittee may furnish malt beverages and unfortified wine to customers. Makes conforming changes to GS 18B-300. Amend GS 18B-902 by setting the application fee for a service business permit at $50. Also requires a service business permit application to have a recycling plan. Amends GS 18B-903 to make service business permits valid indefinitely. Requires registration for the service business permit to include an annual registration and inspection fee of $50 per permit held. Makes conforming changes. Amends GS 18B-1006.1 to make service business permit holders subject to the statute’s recycling requirements.

Effective July 1, 2026.

Section 18

Amends GS 18B-600 to extend when a county may hold a mixed beverage election to include when the a city located in the county operates at least one ABC store. Adds that if a county does not operate at least one ABC store, a mixed beverages permittee may purchase liquor from an ABC store that is designated as a mixed beverage ABC store operated by any local board operating in the same county as the permittee. Effective October 1, 2024.

Section 19

Amends GS 18B-603 to specify that the Commission may issue brown-bagging permit for bars.

Section 20

Amends GS 18B-300.3 by correcting statutory cross-references.

Section 21

Amends GS 18B-1006 by exempting from the prohibition on issuing a permit for the sale of alcoholic beverages to a business on the campus or property of a public school, college, or university, any restaurants, eating establishments, food businesses, or retail businesses on the property of the Horace Williams Campus or Millennial Campus (as defined).

Adds new Section 22, consisting of the following.

Expands the purpose of GS Chapter 18B to include regulation over taxation, distribution, and sale over premixed cocktails as one of the alcoholic beverages through the three-tier regulatory system and franchise laws imposed by the chapter. Modifies mixed beverage in GS 18B-101 (definitions pertaining to GS Chapter 18B) so that it means a drink composed in whole or in part of spirituous liquor and served in a quantity less than the quantity contained in a closed package. It no longer includes premixed cocktails. Modifies terms premixed cocktail so that the its maximum amount of alcohol by volume is 9.9% (currently 13%), spirituous liquor or liquor, alcoholic beverage, bailment surcharge, and brokerage.

Clarifies that GS 18B-203 (powers and duties of the Commission) does not give the Commission authority to set prices of premixed cocktails outside of ABC stores. Nor does it limit the authority of licensed premixed cocktail wholesalers to sell and distribute premixed cocktails to the specified Native American tribes and US Armed Forces installations. Makes technical changes. Makes conforming changes to account for expanded scope of GS Chapter 18B.

Authorizes a mixed beverages permittee to purchase premixed cocktails from either a licensed wholesaler or a designated ABC store and makes conforming changes to account for expanded scope of GS Chapter 18B in GS 18B-404 (pertaining to purchase and transportation by mixed beverage permittees).

Establishes a procedure in GS 18B-503 for the sale of seized premixed cocktails by public auction unless they would likely become spoiled or lose value in the time required to arrange a public auction. Then authorizes sale to a retailer or the local ABC board, as described. Makes technical changes.

Authorizes, in GS 18B-603 (effect of elections on issuance of permits) sports clubs holding the described alcoholic beverages permits to purchase premixed cocktails from a wholesaler as described, or the nearest ABC store in the county. Makes conforming changes to account for the expanded scope of GS 18B and option for local voters to approve the sale of mixed beverages. Makes technical changes.

Removes the changes made by the first edition and makes the following changes to GS 18B-804 (alcoholic beverage pricing). Requires the retail price of premixed cocktails sold in ABC stores to be established by the Commission and to be uniform throughout the State. Lists nine required components of the uniform State price. Removes provisions exempting premixed cocktails sold to a mixed beverage permittee in a closed package from the $20 charge for the described resales. Expands the charges a local board is required to pay from its gross receipts and the distributions it is required to make under GS 18B-805 to include the same charges for premixed cocktails set forth in various sections of new GS 18B-804(e). Makes conforming changes to account for expanded scope of GS Chapter 18B.

Adds new premixed cocktail wholesaler permit fee ($300), nonresident premixed cocktail permit fee ($100), and premixed cocktail special event permit fee ($200) to the schedule of permits and fees in GS 18B-902.

Expands the types of alcoholic beverages authorized under the ACB permits listed in GS 18B-1001 as amended by Sections 2, 12, 17, 23, and 24 of the act, to include premixed cocktails. Allows for the sale of more than two premixed cocktails at a time by a mixed beverages permittee so long as they are sold for delivery or consumption off the permitee’s premises. Authorizes a mobile services bar permittee to purchase premixed cocktails either from a retailer or designated ABC store in the same county where its principal office is located. Makes conforming and technical changes.

Makes conforming changes to account for expanded scope of GS Chapter 18B in GS 18B-1001.4 (authorization of delivery service permit) and requires that any deliveries of single-serving wine drinks or mixed beverages must comply with the relevant subsections of GS 18B-1001. Makes technical changes.

Makes the following changes to GS 18B-1006 (miscellaneous permit provisions). Expands the types of beverages exempt from the bar on the sale of permitted alcoholic beverages on school campuses to include premixed cocktails at the specified events. Limits members of the described private clubs from storing more than eight liters of premixed cocktails in a locker provided by the club. Allows for the sale of premixed cocktails in recreation districts. Authorizes a distillery in a distillery estate district to conduct consumer tastings without the Commission’s approval anywhere in a distillery estate district. Makes conforming changes, including to account for expanded scope of GS Chapter 18B. Makes technical changes. Authorizes a mixed beverage permittee in GS 18B-1007 to purchase premixed cocktails for resale either from an ABC store or wholesaler and a guest room cabinet permittee to purchase premixed cocktails for resale from either an ABC store as described or a wholesaler.

Authorizes the sale of premixed cocktails under a distillery permit authorized under GS 18B-1105. Provides for the sale, delivery, and shipment of premixed cocktails to (1) wholesalers both in and out of the State and (2) local boards within the State, as specified. Exempts premixed cocktails from the State fixed prices for spirituous liquor and labeling requirements required by law. Allows permit holders to conduct consumer tastings and to sell premixed cocktails, as specified. Makes technical and conforming changes.

Retains the first edition’s changes to GS 18B-1105.1 (authorization of liquor importer/bottle permit), but now allows for premixed cocktail permit holders to sell to private or public agencies or establishments of other states or nations, as described. Makes conforming changes to account for expanded scope of GS Chapter 18B. Prevents a person from transporting more than 80 liters of premixed cocktails in GS 18B-1115 (commercial transportation), makes conforming changes to account for expanded scope of GS Chapter 18B, and otherwise retains the changes made to the statute by the first edition.

Clarifies that GS 18B-1113.1 does not require a business to obtain or possess a premixed cocktail special event permit to do business in the State. Removes provisions defining distillery. Makes conforming changes to account for expanded scope of GS Chapter 18B. Amends GS 18B-1114.7 so that spirituous liquor includes premixed cocktails in the statute.

Includes a manufacturer, bottler, importer, or owner of premixed cocktail in supplier under GS 18B-1119 (supplier’s financial interest in wholesaler). Excludes a wholesaler that (1) holds a liquor importer/bottler permit and does not directly or through an affiliated entity also possess a nonresident wine vendor permit, a nonresident malt beverages vendor permit, or a nonresident premixed cocktail vendor permit issued pursuant to GS Chapter 18B or (2) is an importer in another state, so long as premixed cocktails, or the other alcoholic beverages already described are transferred to it through an independent third party.

Makes the following changes to new Article 14 (Premixed Cocktail Franchise Law). Clarifies that the new article’s purpose pertains to the sales of premixed cocktails outside of ABC stores. Modifies term supplier in GS 18B-1401. Makes technical and clarifying changes to GS 18B-1402. Clarifies that new Article 14 does not prohibit the sale of premixed cocktails to the Commission for resale in ABC stores in GS 18B-1403, and makes organizational changes. Exempts a supplier’s sale to the Commission from GS 18B-1404’s bar on discrimination in price, and other described matters between wholesalers licensed in the State. Makes technical change to GS 18B-1405 (cause for termination of a franchise agreement). Specifies that new Article 14 is effective when it becomes law, and applies to distribution agreements entered into and transactions conducted on or after that date.

Removes provisions from GS 115-113.80 using a markup for local ABC boards to calculate the price of the excise tax on premixed cocktails. Instead, imposes an excise tax of $2.50 per gallon on premixed cocktails. Makes conforming changes to statute’s title.

Reorganizes changes to GS 105-113.83A (a1) into new GS 105-113.83A (a2). Extends the effective date of the act’s changes to GS 105-113.83A(a) by one year.

Removes provisions from the first edition that would have allowed a local ABC store to operate on Sundays in GS 153A-145.7 and GS 160A-205.3. Makes conforming changes to account for expanded scope of GS Chapter 18B.

Establishes a nonresident premixed cocktail vendor permit in new GS 10B-1113.2 to sell, deliver, and ship premixed cocktails in this State only to State-licensed wholesalers, importers, as authorized by the ABC laws. Requires the premixed cocktails to rest at the licensed premises of a premixed cocktail wholesaler in this State before being resold to a retailer licensed under GS Chapter 18B. Specifies that a nonresident premixed cocktail vendor permit may be issued to a liquor importer/bottler outside of the State under the circumstances described. Establishes a premixed cocktail special event permit under new GS 18B-1114.9 allowing a holder of a distillery permit, a liquor importer/bottler permit, a nonresident spirituous liquor vendor permit, or a nonresident premixed cocktail vendor permit to obtain that permit to allow the permittee give free tastings of its premixed cocktails; to sell branded merchandise; and to sell its premixed cocktails in open or closed containers at malls, trade shows, liquor festivals and other described events. Requires the beverages sold at such events to be purchased from a licensed premixed cocktail wholesaler. Clarifies that the special event permit is only valid in a jurisdiction that has approved the sale of malt beverages, unfortified wine, fortified wine, or mixed beverages. Prevents the permit from being used as subterfuge for premixed cocktail suppliers to ship directly to retail permittees unless otherwise authorized by law. Makes conforming changes to GS 18B-900 to account for new nonresident premixed cocktail vendor permit. Makes conforming changes to GS 18B-1100 (commercial permits) to account for new nonresident premixed cocktail vendor permit, premixed cocktail vendor permit, and premixed cocktail special event permit.

• Makes conforming changes to account for expanded scope of GS Chapter 18B and/or technical changes to: GS 18B-106 (alcoholic beverages for use on ongoing ships); GS 18B-107(a) (authority of the ABC Commission [Commission]) to issue permits authorizing air carriers to offer in-flight alcoholic beverages, as specified); GS 18B-108 (sales on trains); GS 18B-109(b) (barring sales on armed forces installations and Native American lands, as specified); GS 18B-206(c) (Commission testing); GS 18B-209 (Commission’s authority to sample products); GS 18B-211 (special allowance limitations); GS 18B-300 (possession and consumption of specified alcoholic beverages); GS 18B-300.1 (authorization and regulation of social districts); GS 18B-302 (sale or purchase by underage persons); GS 18B-401(a) (opened containers); GS 18B-600(h) (railroad passenger terminus locations); GS 18B-602 (form of ballots); GS 18B-701(a)(local board powers); GS 18B-707 (local authority to sample alcohol products); GS 18B-708 (sales of alcoholic beverages below distiller’s price); GS 18B-800 as amended by Section 4 of the act (sale of alcoholic beverages in ABC stores); GS 18B-903 (c) (changes in ownership) as amended by Section 17 of the act, GS 18B-1002 (special one-time permits) as amended by Section 10 of the act; GS 18B-1004 (hours for sale and consumption); GS 18B-1009(a) as amended by Section 27 of the act; GS 18B-1110(a) (holders of bottle permits); GS 18B-1111(u) (authorized acts for holders of salesmen permits); GS 18B-1118 (purchase restrictions); GS 18B-1307(b)(approval of certain transfers and mergers); GS 105-113.81 (exemptions); GS 105-251.2(b) (expanding listing of alcohol vendors required to provide information to the Secretary of the Treasury to include premixed cocktail wholesalers).

• Retains the first edition’s changes to GS 18B-105 (advertising), GS 18B-1110.1(a) (authorizations to holder of packing and logistics permits), GS 105-113.68 (definitions and scope pertaining to alcoholic beverage licenses and excise taxes), GS 105-113.79 (city wholesaler license); and makes conforming changes to account for expanded scope of GS Chapter 18B.

• Removes the first edition’s changes to GS 18B-112 (tribal alcoholic beverage control), GS 18B-204 (state warehouses), and makes conforming changes to account for the expanded scope of GS Chapter 18B and new Article 14.  Clarifies that such changes should not be construed to prohibit retail permittees from purchasing premixed cocktails from licensed wholesalers.

• Makes technical changes to GS 18B-801(d) (insolvent ABC systems).

Specifies that the Commission’s rules pertaining to possession, consumption, and sale of malt beverages apply equally to premixed cocktails. Directs the Commission to amend its rules as soon as practicable to be consistent with the act.

Except as otherwise provided, effective October 1, 2026, and applies to premixed cocktails sold on or after that date.

Adds the following new Section 23-31.

Section 23

Amends GS 18B-1001 to allow an on-premises malt beverage permit to be issued to wineries. Amends GS 18B-1101 to allow the holder of an unfortified winery permit to sell malt beverages for on-premises consumption upon obtaining the appropriate permit, regardless of the result of any local malt beverage election. Amends GS 18B-1102 to allow the holder of a fortified winery permit to sell malt beverages for on-premises consumption upon obtaining the appropriate permit, regardless of the result of any local malt beverage election.

Section 24

Amends GS 18B-1001 by adding that an on-premises unfortified wine permit and a wine shop permit allows wine tastings conducted at a consumer’s private residence or a location that does not have a permit where consumers are educated about selection, servicing, and storing of wine by the permittee or their employee or agent using wine from the permit holder’s inventory and consumers may purchase wine for future deliver or pick-up at the permittee’s permitted premises. Adds that a wine shop permit holder is also eligible to hold a malt beverage shop permit and that if they hold both permits, then the sales of alcoholic beverages for consumption on the premises may not exceed 40% of the establishment’s total sales for any 30-day period; makes conforming changes to the provision applicable to the holder of a malt beverage shop permit who also holds a wine shop permit.

Section 25

Amends GS 18B-903 by extending the expiration date of ABC permits other than on‑premises and off‑premises malt beverage, unfortified wine, and fortified wine permits, culinary permits, permits listed in GS 18B‑1100, limited special occasion permits, special one‑time permits, and temporary permits, from April 30 to May 30. Requires the application renewal fees to be paid by May 1. Removes inspection fees. Prohibits a permit issued under Article 10 (retail activity), other than a special occasion permit, limited special occasion permit, special one-tie permit, or special auction permit from expiring or being revoked or cancelled for failure to pay a renewal application fee or annual registration fee until June 1 of each year, and the permittee must be allowed to operate under the permit until that date. Allows notification that a permittee has not paid any required renewal application fee or annual registration fee to be sent by email or first-class mail. Makes conforming changes to GS 18B-900. Effective retroactively to June 28, 2024.

Section 26

Amends GS 18B-1003 by no longer prohibiting an ABC permittee from employing in the sale or distribution of alcoholic beverages any person who has been convicted of a misdemeanor controlled substances offense within two years. Adds that if the Commission notifies a permittee of a potential violation of the prohibition on employing certain persons who have committed offenses, and the permittee claims undue hardship within 30 days of the notification, then the permittee may continue to employ the person until the final determination of undue hardship.

Requires the Commission to adopt rules to amend it’s rules consistent with this section.

Applies to individuals employed by ABC permittees and undue hardship proceedings initiated or pending on or after the date that this act becomes law.

Section 27

Amends GS 18B-1009 to also allow a retail permittee to sell malt beverages in the seating areas of theaters, and amphitheaters, in addition to the already allowed seating areas of stadium, and ballparks,  with a seating capacity of 3,000 or more and allows the sale during concerts or professional sporting events (was, limited to professional sporting events). Makes conforming changes.

Section 28

Amends GS 18B-101 by amending the definition of the term Tourism ABC establishment to now mean a restaurant or hotel that is in a county in which the on-premises or off-premises sale of malt beverages or unfortified wine is authorized in at least one city and that is either located on the specified property along a national scenic parkway, the description of which has been amended, or is located on property, a property line of which is located within three miles of the State line, that is adjacent to NC scenic byway (was, in a county in which the on-premises or off-premises sale of malt beverages or unfortified wine is authorized in at least one city).

Section 29

Further amends GS 18B-804, concerning the pricing of alcoholic beverages, to require that all charges, surcharges, markups, and adjustments determined by the Commission under the statute must be uniform and applicable to all spirituous liquor approved for sale in the State. Prohibits the Commission from applying charges, surcharges, markups, or adjustments based on the type or amount of spirituous liquor in order to establish a minimum price for a product or class of products.

Section 30

Amends GS 14-309.28 to expand upon the allowable number of game night events conducted or sponsored by an exempt organization from four to 24 events per year. Also allows a qualified facility to host no more than 24 game nights in any calendar year (was, a facility authorized to host a game night must not host more than two game nights in any calendar month).  Applies to game nights conducted on or after October 1, 2026.

Section 31

Amends GS 14-309.15, concerning raffles as follows. Adds and defines the term 50/50 raffle; makes organizational and technical changes. Adds that the statute’s restrictions on number of raffles, maximum cash prizes, holding raffles in conjunction with bingo, the amount of the proceeds that must be used in specified way, and on offering real property as a raffle prize, do not apply to 50/50 raffles conducted by nonprofit organizations or government entities within the state. Applies to offenses conducted on or after August 1, 2026.

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

Makes organizational, clarifying, and technical changes.

House committee substitute to the 1st edition adds the following content.

Section 86.5

Amends GS 116B-6 as follows. Removes outdated language and establishes the Escheat Account as a special fund in the Reserve Trust Fund. Allows the State Education Assistance Authority, in addition to the powers vested under Article 23 of GS Chapter 116 (was, under GS 116-201 and GS 116-209.23) to pledge or vest a security interest in all or any part of the Escheat Account, by resolution adopted or trust agreement approved by it, as security for or insurance respecting the payment of bonds or other obligations. Makes additional conforming, clarifying, and technical changes.

Section 90.5

Amends GS 164-10 by amending the Legislative Services Office’s duties related to the General Statutes by now requiring it to cause to be published, under its supervision, an accurate transcription of all laws of a general and permanent nature enacted by the NCGA. Lists as its related duties: (1) including in one or more publication of the General Statutes complete and accurate annotations to the statutes, an index, and other material the Office considers necessary and proper; and (2) periodically update the General Statutes to include laws enacted since their most recent publication and to update annotations to the General Statutes and other material the Office considers necessary and proper. Removes specified deadlines and requirements for supplements. Makes additional organizational, clarifying, and technical changes.

Amends GS 164-11 by removing references to pocket supplements to the General Statutes. Makes additional conforming and clarifying changes.

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

Section 1.6.

Clarifies, in GS 143-166.30 (concerning the forfeiture of benefits from the Supplemental Retirement Income Plan for State Law-Enforcement Officers for certain felonies), and GS 143-166.50 (forfeiture of benefits from the Supplemental Retirement Income Plan for Local Government Law-Enforcement Officers), that either plan administrator can only prohibit withdrawals by the officer for up to sixty days to allow for a post-conviction forfeiture determinations (was, authorization to bar withdrawals for up to sixty days from the date of conviction).

Adds the following new content.

Part IV.

Section 4.6.

Removes provisions of GS 116B-78 (agreements to locate property between property finders and owners or apparent owners) that limit fees for agreements subject to GS 28A-22-11 (agreements with heirs). Makes conforming and organizational changes.

Section 4.7.

Updates statutory citation for the School Budget and Fiscal Control Act in GS 159-7.

Section 4.8.

Replaces references to the “Commission” with “Municipal Incorporations Subcommittee” where found in Part 2 (the procedure for incorporation review) of Article 20 (the Joint Legislative Committee on Local Government) in GS Chapter 120 (NCGA).

Makes organizational changes to Part IV to account for newly inserted sections.

Part V.

Section 5.1.

Authorizes the State Treasurer (Treasurer) to employ individuals to enforce GS Chapter 116B (escheats) in GS 116B-8. Removes provisions authorizing the Treasurer to employ a title search attorney and governing any contracts with auditors under the Chapter.

Section 5.2.

Modifies term property finder in GS 116B-52 to mean the described persons who primarily seek (was, seek) to recover property as specified.

Section 5.3.

Removes the requirement that the abandoned property under GS 116B-59 (notice by holders to apparent owners) either be a security or other equity interest, or be valued at $50 or more to trigger the notice provisions of the statute.

Section 5.4.

Requires, in GS 116B-60 (reports of abandoned property), that reports of abandoned property be verified if: (1) the amount is over $25 (was, $50), or (2) the property is a security or other equity interest in a business association as described, a business association’s debt, or any dividend, or other sum held or owing by a business association for or to its shareholders or other parties with an interest in the business as specified. Makes conforming changes. Authorizes the Treasure to request additional clarifying information or other information required to be reported. Requires the property holder to respond with the information within thirty days of receiving the request. Makes the following changes to GS 116B-67 (claim for property paid or delivered to the Treasurer). Allows the Treasurer to require the holder to verify whether or not the claimant is the owner. Now requires the holder to attest to their decision, as described, within 30 days of the Treasurer’s request. Requires the certification to be made by the described officers and employees (was, certification only applied to corporations), and is binding upon the holder. Makes conforming changes to GS 116B-77.

Part VI.

Section 6.1.

Directs that funds currently being withheld by the Department of Revenue (Department) from the Town of Speed’s sales tax distributions to be released by the Department to the Town within 45 days after the Local Government Commission’s approval of a plan of action to distribute the Town’s assets and liabilities. However, if the conditions of GS 159-34(h) (release of sales tax funds for municipality) are met before the Local Government Commission approves a plan of action, the Department of Revenue may act under the statute to release the funds.

Section 6.2.

Extends the sunset on the suspension of the Town of Spencer Mountain from June 30, 2026, to June 30, 2029.

Section 6.3.

Requires any county or municipality receiving a notice of noncompliance under GS 159-34 (annual independent audits) to appear before the Local Government Commission as soon as practicable after July 1 (currently, must appear at the Commission’s next scheduled meeting).

Section 6.4.

Removes the Treasurer as an ex officio nonvoting member from the Board of Directors of the NC Global TransPark Authority in GS 63A-3.

Section 6.5.

Directs the Treasurer’s State and Local Government Finance Division (Division) to study and report on the need to update the Local Government Budget and Fiscal Control Act (Article 3 of GS Chapter 159), including the five matters specified. Directs the Division to consult with the listed stakeholders, including the UNC School of Government, and at least two executive branch agencies that interact directly with local governments on financial matters, of which one must be the Department of Environmental Quality. Requires the Division to submit an initial report of its findings to the specified NCGA committees and division by January 31, 2027, with a final report due to the specified NCGA committees by October 1, 2027.

Section 6.6.

Changes the authority that issues an actuarial note for NCGA committee changes or floor amendments to legislation that would substantially affect the cost to or the revenues of any retirement system, or program of hospital, medical, disability, or related benefits for teachers and State employees from the Fiscal Research Division to an actuary employed by the subject system or program in GS 120-114 (NCGA actuarial notes). Requires that an actuary employed by a system or program whose service purchase provisions are modified by a resolution provide an estimate of the cost impact of those provisions (currently, Fiscal Research Division provides that cost estimate). Removes the process for requesting an actuarial note to a bill or resolution from the Fiscal Research Division.

Part VII.

Adds charter schools to institution for elementary and secondary education in GS 159D-37 (definitions pertaining to the Private Capital Facilities Finance Act). Removes exclusion from the term project for facilities used for sectarian instruction, religious worship or religious schools. Includes LLC’s in special purpose institution and makes technical change to statutory cross reference. Removes provisions in GS 159D-38 (capital facilities finance agency) requiring the Governor to designate a chair and vice-chair. Instead, designates the Treasurer as chair. Removes provisions from GS 159D-45 describing the requirements of a notice of hearing for the issuance of bonds, and instead just requires that the notice be consistent with the requirements for reasonable public notice set forth 26 USC 147(f) and any regulations promulgated thereunder. Specifies that no public hearing is required in connection with the refinancing of any project previously approved. 

Makes organizational changes to the effective date to account for newly inserted parts.