Bill Summary for S 470 (2021-2022)

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Summary date: 

Nov 17 2021

Bill Information:

View NCGA Bill Details2021
Senate Bill 470 (Public) Filed Thursday, April 1, 2021
Intro. by Johnson, Hise.

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Bill summary

House committee substitute deletes the content of the 3rd edition and now provides the following.

Amends Section 1.3 of SL 2021-150 (ABC Omnibus Legislation), which directs the ABC Commission to adopt rules to determine how long a product purchased by an online order pursuant to GS 18B-800(c3), as enacted by SL 2021-150, may be set aside before being returned to inventory at an ABC store. Expands the directive to require the ABC Commission to also adopt rules as necessary to implement Part I. of SL 2021-150, which makes changes to GS Chapter 18B to provide for online orders at ABC stores. Additionally, makes Part I. of SL 2021-150 effective January 1, 2022 (was, October 1, 2021), and apply to sales on or after that date. 

Amends GS 18B-1105(a)(4), as amended by Section 2.2 of SL 2021-150, which defines personalized labeling for purposes of describing labels which distilleries may have on spirituous liquor they sell to touring visitors. No longer allows the inclusion of the name of any ABC Board or ABC store on whose behalf the bottle is purchased within the meaning of personalized labeling

Amends GS 18B-1113.1, as enacted by Section 6.2 of SL 2021-150, which sets forth authorities of nonresident spirituous liquor vendor permittees. Removes the authority to sell spirituous liquor to their employees and certain brokerage, but maintains the authority to deliver and ship spirituous liquor approved for sale in the State to the permittee's employees and certain brokerage. Eliminates the definition provided for the term brokerage, which was defined to mean a business that brokers the sale of spirituous liquor on behalf of a distillery or liquor importer/bottler. Instead, adds and defines the term in the Chapter's defined terms set forth in GS 18B-101, now defining the term to mean a business that brokers the sale of spirituous liquor on behalf of the holder of a distillery permit issued under GS 18B-1105, a business located outside the State that is licensed or permitted to manufacture spirituous liquor in the jurisdiction where the business is located and whose products are lawfully sold in the State, or a liquor importer or bottler. 

Amends GS 18B-1114.7, as amended by Section 6.2 of SL 2021-150, which details the criteria and authorities of a spirituous liquor special event permittee. Specifies that the permittee can provide at no cost (was, sell) spirituous liquor distilled or produced at the distillery in closed containers at trade shows, conventions, agricultural festivals, farmers markets, local fundraisers, and other similar ABC Commission-approved events. Adds that the permit muse be issued in the name of the distillery, or if issued to a supplier representative, brokerage representative, or nonresident spirituous liquor vendor, in the name of the nonresident spirituous liquor vendor or the name of the business the supplier representative or brokerage representative represents. Repeals identical language regarding issuance enacted as GS 18B-1114.7(c)(1a) by Section 6.2 of SL 2021-150, regarding consumer tastings and permit issuance. Makes technical corrections.

Amends GS 18B-1105(d), as enacted by Section 9.3 of SL 2021-150, to specify that alcoholic beverages permitted to be sold or consumed on the licensed premises of a distillery applies to distilleries open to the public. Makes technical changes. 

Adds to new GS 18B-603(d)(3a), as enacted by Section 13.1 of SL 2021-150, regarding permits the ABC Commission may issue following approval in a mixed beverages election, adding authority to issue on-premises fortified wine permits to establishments meeting the requirements for that permit under GS 18B-1005 (currently, authority was limited to issuing on-premises malt beverage permits and on-premises unfortified wine permits). Repeals existing subdivision (d)(2), which lists permits which may be issued following a mixed beverages election to mixed beverage permittees.

Amends GS 153A-145.9 and GS 160A-205.4, as enacted by Sections 20.1 and 20.2 of SL 2021-150, to authorize counties and cities to adopt an ordinance designating one or more social districts (was, limited to one). Makes conforming changes to GS 18B-904.1, as enacted Section 20.3 of SL 2021-150, which provides for the regulation of social districts.

Further amends GS 18B-904.1, which provides for the regulation of social districts, to include wine shop permittees in the definition given for a permittee under the statute. Additionally, modifies the definition given for a social district, now allowing for a social district to include both indoor and outdoor areas of business that are not ABC permittees, if the businesses allow guests to consume alcoholic beverages on their premises during the days and hours set by the local government (was, limited to outdoor areas). Adds a new provision to specify that the alcoholic beverage sale requirements under subsection (d) of the statute do not authorize the sale and delivery of alcoholic beverage drinks in excess of the limitation set in GS 18B-1010 (which sets limits of one or two drinks for a single patron based on the type of drink or location of sale). Adds to the requirements for alcoholic beverage consumption and possession under subsection (e) of the statute, specifying that consumption and possession must be during the days and hours set by the county or city and cannot exceed the hours for consumption authorized by GS 18B-1004. Now prohibits possession and consumption at one time alcoholic beverages in excess of the number of alcoholic beverages that can be sold and delivered by a retail permittee under GS 18B-1010 (previously, specified that subsection (e) did not authorize the sale and delivery of alcoholic beverages in excess of the limitation set forth in GS 18B-1010). 

Amends GS 18B-904(h), as enacted by Section 21.3 of SL 2021-150, which authorizes and regulates the extension of licensed premises for on-premises consumption, to require the permittee to also provide the required written notification to the ABC Commission in addition to the district office of the ALE Division and local law enforcement. Distinguishes that the prohibition from the extended area being used to increase the occupant load of the licensed premises is exclusive of the extended area. 

Removes ice cream from the definition provided for alcohol consumable in GS 18B-101(4a), as enacted by Section 27.1 of SL 2021-150. Effective retroactively to September 10, 2021, and expiring on December 1, 2022. 

Amends GS 18B-1006(i), as amended by Section 31.1 of SL 2021-150, which authorizes the ABC Commission to issue permits to boats that conduct regularly scheduled tours. Revises the conditions for which permits may be issued to tour boats to eliminate the requirement that a boat's gross receipts from sales of alcoholic beverages be no more than 25% of its total gross receipts. Specifies that a boat is required to offer food and non-alcoholic beverages for sale on each tour on which alcoholic beverages are served. 

Amends Section 33.1 of SL 2021-150 to require the Department of Public Safety, in addition to the ABC Commission, to adopt rules or amend its rules consistent with SL 2021-150, with authority to use the procedures set forth in GS 150B-21.1.

Amends GS 18B-1119, which bars a supplier or its employees, agents, or affiliates from acquiring, possessing, or otherwise maintaining an ownership interest in a wholesaler except as expressly authorized in the Chapter. More specifically prohibits maintaining an ownership interest in its wholesaler (was, a wholesaler). Now defines supplier under the statute to mean a manufacturer, bottler, importer, or owner of one or more brands of malt beverages, unfortified wine, or fortified wine distributed by its wholesaler; excludes a wholesaler that either: (1) possesses a wine importer permit or a malt beverages importer permit; or (2) is an importer in another state, provided such malt beverages, unfortified wine, or fortified wine are transferred to it through an unaffiliated and independent third party.

Adds to the exemptions from the rulemaking provisions of Article 2A of the Administrative Procedure Act, as set out in GS 150B-1, the ABC Commission with respect to: (1) approval of alcoholic beverages to be sold in local ABC stores through the State warehouse and by special order pursuant to Article 8, GS Chapter 18B; and (2) setting prices of alcoholic beverages sold in local ABC stores under Article 8, GS Chapter 18B. 

Amends GS 18B-1001.4 to require individuals delivering alcoholic beverages pursuant to a delivery service permit to complete a course conducted or approved by the ABC Commission (was, a course approved by the Commission only) related to the delivery of alcoholic beverages. Effective December 1, 2021, and applies to individuals successfully completing a course conducted or approved by the ABC Commission related to the delivery of alcoholic beverages on or after that date. 

Amends GS 18B-1006.1 to permit recyclable spirituous liquor containers to be used for display purposes as provided by the ABC Commission, subject to the permittee notifying the Commission of such use. Requires that each container used for display purposes be stamped with a mixed beverages tax stamp, and recycling containers no longer used for display be recycled pursuant to the statute's existing provisions. Authorizes the ABC Commission to adopt rules or amend its rules consistent with these changes, with the Commission permitted to use the procedure set forth in GS 150B-21.1.

Changes the act's titles.