Bill Summary for H 909 (2015-2016)

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Summary date: 

May 21 2015

Bill Information:

View NCGA Bill Details2015-2016 Session
House Bill 909 (Public) Filed Wednesday, April 15, 2015
AN ACT TO MAKE VARIOUS CHANGES TO THE ALCOHOLIC BEVERAGE CONTROL COMMISSION LAWS.
Intro. by Hager, J. Bell.

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Bill summary

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

Amends the short and long titles. 

Adds the following provisions.

Amends GS 18B-101, which defines terms as they are used in GS Chapter 18B, Regulation of Alcoholic Beverages. Adds a definition for powdered alcohol, meaning any powder or crystalline substance capable of being converted into a liquid alcoholic beverage fit for human consumption. Adds new subsection (a1) to GS 18B-102 to make it unlawful for any person to manufacture, sell, transport, import, deliver, furnish, purchase, consume, or possess powdered alcohol.

Amends GS 18B-112, Tribal alcoholic beverage control, to provide that the Eastern Band of Cherokee Indians are authorized to issue the specified permits found in GS 18B-603(f) without approval at elections, including, special occasion permits, limited special occasion permits, and certain culinary permits, and in doing so the definitions found in GS 18B-1000 apply.

Provides that the Eastern Band of Cherokee Indians are authorized to issue specified wine shipping permits found in GS 18B-1001.1, 1001.2, and 1001.3. Also provides for the issuance of permits for commercial activity in GS Chapter 18B, Article 11 as follows: (1) the tribal alcoholic beverage control commission can issue commercial activity permits to any qualifying applicant that establishes a commercial business wholly on Indian Country Land and retains the sole enforcement authority over such permittee to the extent the conduct occurs on Indian Country lands; (2) the Eastern Band of Cherokee Indians must recognize any permit issued by the NC Alcoholic Beverage Control Commission allowing commercial activity in the same manner as if such permit was issued by the tribal alcoholic beverage control commission, as well as vice versa; and (3) the NC Alcoholic Beverage Control Commission retains exclusive enforcement authority over all permits it issues to commercial activity permittees for violations of its rules or of GS Chapter 18B. Makes conforming changes. 

Adds language providing that provisions of GS Chapter 18B, Articles 12 and 13, that have not been made applicable to the Eastern Band of Cherokee Indians act as a bar to engaging in the specified activity by the Eastern Band of Cherokee Indians.

Amends GS 18B-101(14a), concerning the definition of a tourism ABC establishment, to provide that the Eastern Band of Cherokee Indian's tribal alcoholic beverage control commission maintains the exclusive authority to issue specified permits between Milepost 460 and the southern terminus of the national scenic byway at Milepost 469 for any restaurant or hotel that is located wholly on Indian Country lands. 

Enacts new subdivision (5) to GS 18B-1105(a) authorizing distillery permit holders to sell spirituous liquor distilled on the premises to visitors to the distillery for consumption off the premises, if the distillery makes less than 100,000 proof gallons per year. Restricts sales under this subdivision to areas where establishing an ABC store has been approved under GS 18B-602(g). Directs that the spirits sold at a distillery under this subdivision be sold at a price set by the ABC Commission, including all excise taxes, bottle charges, and sales tax, and requires that the taxes and bottle charges be remitted to the Department of Revenue. Requires that spirits sold under this subdivision have a label on the bottle that has the words "North Carolina Distillery Tour Commemorative Spirit" in addition to any other labeling required by law. Limits the amount of liquor that a consumer may purchase under this subdivision per calendar year and limits the hours and days of retail sales of spirituous liquor under this subdivision to the hours and days of the sales provision in GS 18B-802.

Amends GS 105-113.68 to add and define distillery permittee to the definitions for GS Chapter 105, Article 2C, Alcoholic Beverage License And Excise Taxes.

Amends GS 105-113.80 to specify that liquor sold in permitted distilleries is subject to the 30% excise tax.

Amends GS 105-113.81(e) to provide that breweries, wineries, and distilleries are not required to remit excise taxes on malt beverages, wine, or spirituous liquor given free at tastings. 

Amends GS 105-113.83(a) to make conforming changes, providing that distillery permittees are required to submit collected excise taxes monthly to the Secretary of Revenue.

Amends GS 18B-1001, deleting references to specified provisions of the NC Administrative Code that before deletion had the effect of only authorizing the sale of malt beverages, pursuant to on-premises malt beverage permits and off-premises malt beverage permits, when the packaging and sealing of the product was done in compliance with those specified provisions. Makes technical changes. Adds language concerning on-premises and off-premises unfortified wine permits and wine shop permits, authorizing the retail sale of unfortified wine dispensed from a tap connected to a pressurized container utilizing carbon dioxide or similar gas into a cleaned, sanitized, resealable container that is filled or refilled and sealed for consumption off the premises and that identifies the permittee and the date the container was filled or refilled.

Adds language that provides that the NC Alcoholic Beverage Control Commission rules regulating the retail sale of malt beverages in growlers also apply to the retail sale of unfortified wine in growlers until such time that the Commission adopts administrative rules implementing this act.

Enacts new GS 18B-903(c1), concerning the duration of ABC permits and renewal and transfer of such permits, providing that nothing in this statute limits alternating brewery proprietorships where the holder of a brewery permit leases or otherwise makes available its facility to another holder of a brewery permit. Sets out provisions concerning the issue of title to the malt beverages during the different stages of the brewing process. Authorizes alternating brewery proprietorships as long as they are not used as a means to distribute production quantities between affiliated breweries in order to obtain a malt beverage wholesaler permit as specified.

Amends GS 18B-1104, concerning brewery permits, adding language which provides that permit holders are not prohibited from selling malt beverages to a nonresident wholesaler, vendor, bottler, or similar party for resale in North Carolina if such malt beverages are shipped from the brewery to licensed wholesalers.  Also provides that brewery permit holders can receive and sell malt beverages made in or outside of the state under contract at the brewery as well as at affiliated retail outlets of the brewery located on or adjacent to the brewery. Sets out other provisions regarding the sale of malt beverages. Provides that contract brewing is authorized as long as it is not used as a means to distribute production quantities between affiliated breweries in order to obtain a malt beverage wholesaler permit as specified.

Amends GS 18B-1001(13) concerning guest room ABC permits, providing that 18-hole golf courses that (1) hold a mixed beverages permit or are located in a county where ABC stores are established and the sale of mixed beverages are not approved, (2) have management contracts for the rental of living units, and (3) are located in a county with a population greater than 20,000 by the last federal census can be issued a guest room cabinet permit. Makes technical and clarifying changes.