Bill Summary for H 500 (2017-2018)

Printer-friendly: Click to view

Summary date: 

Mar 28 2017

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.

View: All Summaries for BillTracking:

Bill summary

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

Enacts new GS 18B-1120, authorizing breweries, wineries, and distilleries to store their beverages at a noncontiguous storage location approved by the Alcohol and Tobacco Tax and Trade Bureau.

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

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

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

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

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

Amends GS 18B-1104(7) to require holders of brewery permits to receive the appropriate permit under GS 18B-1001 prior to sale at the brewery or any additional retail location authorized, to require any beverages sold by the brewery to be approved by the ABC Commission for sale in North Carolina, and to authorize the breweries to sell any alcoholic beverages approved for sale in North Carolina by the ABC Commission. Authorizes holders of brewery permits to further receive malt beverages manufactured by the permittee in some other state for transshipment to wholesalers licensed under GS Chapter 18B. Authorizes holders of brewery permits that produce agricultural products used by the brewery in the manufacture of malt beverages to sell the malt beverages owned by the brewery and approved by the ABC Commission for sale in North Carolina at the brewery for on- or off-premise consumption, in accordance with an obtained permit, regardless of the results of any local malt beverage election. Authorizes holders of brewery permits to obtain a malt beverage wholesaler permit to sell, deliver and ship up to 200,000 (currently, 25,000) barrels of their malt beverages per year, with certain specified sales not counting toward the sales quantity limitation. Authorizes the brewery to further sell malt beverages produced under GS 18B-1104(6) at three other locations. Authorizes the brewery to restrict the sale of malt beverages at off-premises retail locations using the same business name of the brewery to malt beverages produced by the brewery.

Amends GS 105-113.68 to eliminate the 25,000 barrel restriction on breweries in the definition ofwholesaler or importer.

Amends GS 18B-1305 to authorize a small brewery to terminate a franchise agreement without good cause at any time. Provides for the distribution authorization to revert back to the small brewery upon notice of termination. Provides for the fair compensation by the small brewery to the wholesaler, as negotiated between them, and provides for arbitration in the event the parties cannot agree upon fair compensation. Definessmall brewery as a brewery that produces fewer than 200,000 barrels per year.

Amends GS 18B-1309 to exempt determination of fair compensation from the mediation provisions in that statute.

Directs the Legislative Research Commission to study whether it is necessary to rewrite GS Chapter 18B to reflect the changing alcoholic beverage industry, and to report its findings to the 2018 Regular Session of the 2017 General Assembly.

Directs the ABC Commission to adopt temporary rules to implement the provisions of this section (likely means Act).

Makes technical changes.