Bill Summary for H 890 (2021)

Summary date: 

May 7 2021

Bill Information:

View NCGA Bill Details2021
House Bill 890 (Public) Filed Tuesday, May 4, 2021
AN ACT TO MAKE VARIOUS CHANGES TO THE ALCOHOLIC BEVERAGE CONTROL COMMISSION LAWS.
Intro. by Moffitt, Boles, Willingham, Saine.

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Bill summary

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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