Bill Summary for H 500 (2017-2018)

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Summary date: 

Jun 7 2018

Bill Information:

View NCGA Bill Details2017-2018 Session
House Bill 500 (Public) Filed Tuesday, March 28, 2017
AN ACT TO MAKE VARIOUS CHANGES TO THE ALCOHOLIC BEVERAGE CONTROL LAWS.
Intro. by McGrady, Brawley, Hardister, Harrison.

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Bill summary

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

Deletes the content of the previous edition and replaces it with the following. 

Section 1

Amends GS 18B-1121 to allow a licensed commercial permittee, or its agent or employee, to consume samples of alcoholic beverages that it is licensed to sell for purposes of sensory analysis, quality control, or education, at (1) the permitte's premises licensed for commercial activity, (2) the permittee's premises licensed for retail activity if the permittee is authorized to hold a retail permit and the permittee has obtained the appropriate retail permit, (3) the premises of a special one-time permittee, or (4) the premises of a special event where a commercial permittee is participating under a winery or malt beverage special event permit.

Section 2

Requires the ABC Commission (Commission) to amend the Distressed Liquor Rules (as specified in the act) to no longer require the presence of a distiller representative for the Commission, a privately-owned bonded warehouse, or a local board to destroy distressed liquor. Requires that the existing Distressed Liquor Rules be implemented as provided until the Rules are amended.

Section 3

Requires the Commission to adopt a rule to amend the Mixed Beverages Tax Stamp Rule (as specified in the act) to not require a mixed beverages tax stamp to be affixed to the original paper labeling of each container, and allow the stamp to be affixed to any vertical portion of the container. Requires that the existing Mixed Beverages Tax Stamp Rule be implemented as provided until the Rule is amended.

Section 4

Amends GS 18B-1000, which contains the definitions for GS Chapter 18B, to add and define the following terms: (1) motion picture theater as a movie theater, screening room, or other venue used primarily for showing copyrighted motion pictures, if it is open to the public, with movie ticket sales revenue at a level greater than revenue from sales of alcohol and gross receipts from food and nonalcoholic beverages no less than 30% of the total gross receipts from food and nonalcoholic and alcoholic beverages; (2) sports and entertainment venue as stadiums, ballparks, and similar facilities with a permanently constructed seating capacity of 3,000 or more, excluding those located on the campus of a school, college, or university. Amends the definition of restaurant to add that if it is located on an 18-hole golf course, the premises must include the parking lot and the playing area of the golf course. Amends the definition of sports club by adding that the premises of a sports club substantially engaged in the business of providing an 18-hole golf course must include the parking lot and the playing area of the golf course.

Amends GS 18B-1001 to add motion picture theaters and sports and entertainment venues to the list of establishments to which on-premises malt beverage permits, on-premises unfortified wine permits, and mixed beverages permits may be issued. Also adds motion picture theaters to where on-premises fortified wine permits may be issued. Makes additional technical changes.

Section 5

Amends GS 14-309.6 to define a nonprofit organization to mean an organization or association recognized by the Department of Revenue as tax-exempt pursuant to GS 105-130.11(a) or any bona fide branch, chapter, or affiliate of that organization. Makes conforming changes to GS 14-309.15.

Modifies and adds to GS 14-309.15 (Raffles). Adds new provision requiring that each regional or county chapter of a nonprofit organization be eligible to conduct raffles in accordance with the statute independently of its parent organization. Authorizes a nonprofit organization to hold no more than four raffles per year (was, limits nonprofit organizations to two raffles per year). Increases the maximum total cash prize that can be offered or paid by any nonprofit organization to $250,000 from $125,000. Makes conforming changes. 

Amends GS 18B-308 (Sale and consumption at bingo games), removing raffles from the scope of the prohibition on the sale and consumption of alcohol under the statute. 

Enacts GS 18B-903A, providing for reissuance of permits to a nonprofit organization that has received a limited special occasion permit pursuant to GS 18B-1001(9), or a special one-time permit pursuant to GS 18B-1002(a)(2) or (a)(5) within the preceding 18 months so long as the same individual representing the organization requests the reissuance of the permit for the same location. Details information required for reissuance, including the location and description of the event. Makes a reissued limited special occasion permit valid for 48 hours before and after the occasion for which the permit was issued and a reissued special one-time permit valid only for the period stated on the permit. Provides that the reissuance application fee is the same as the initial fee set out in GS 18B-902 and nonrefundable. Prohibits the Commission from investigating the applicant and the premises for which the reissuance is requested more than once every three years. Permits the Commission to request the assistance of local ABC officers in investigating applications. Makes it a Class 1 misdemeanor to knowingly make a false statement in the application for a permit reissuance. Also makes knowingly making a false statement on the reissuance application grounds for denying, suspending, revoking, or taking other action against the permit provided in GS 18B-104. Effective December 1, 2018, and applies to offenses committed on or after that date.

Amends GS 18B-1002(a)(5), concerning special permits for local governments and nonprofit or political organizations to serve wine, malt beverages, and spirits at a ticketed fundraiser event. Adds a provision providing that the issuance of this permit allows nonprofit organizations to offer alcoholic beverages in the manufacturer's original closed container as a prize in a raffle or sell alcoholic beverages in the manufacturer's original closed container at auction at the ticketed event to allow the nonprofit organization to raise funds. 

Unless otherwise indicated, this section is effective October 1, 2018.

Section 6

Amends GS 18B-1114.7(b), which places limitations on consumer liquor tasting events to also allow the permit holder to sell branded merchandise at consumer tasting events.

Section 7

Amends GS 18B-108 by adding that alcoholic beverages (malt beverages, unfortified wine, and fortified wine) may be sold on passenger-only ferries.

Section 7.1

Amends GS 18B-1307 to allow an individual's interest in a malt beverage wholesaler business to be transferred or assigned to a designated family member (under current law the transfer or assignment can happen only when the wholesaler dies). Expands the definition of designated family member to also include a niece or nephew. Provides that nothing in (b) concerning the approval of certain transfers and mergers is intended to or should be construed to authorize a supplier to match and reassign to a designee the right to purchase the ownership interest, subject to the designee purchasing the ownership interest. Makes additional conforming changes.

Amends GS 18B-1119 to prohibit a supplier or an officer, director, employee or affiliate of a supplier from acquiring, possessing, or otherwise maintaining an ownership interest in a wholesaler except as expressly authorized by GS Chapter 18B. Deletes existing provisions concerning a supplier or an officer, director, employee, or affiliate of a supplier financially assisting a proposed purchaser.

Amends GS 18B-1304 to make it illegal for a supplier, or an office, agent, or representative of a supplier to induce, coerce, or attempt to do so, any wholesaler to accept delivery of any alcoholic beverage, or any other item or service, that has not been specifically ordered or requested by the wholesaler.

Section 8

Except where otherwise provided, the act is effective when it becomes law.

Makes conforming changes to the act's long title.