House committee substitute to the 5th edition makes the following changes. Amends the act’s short title.

Deletes: (1) previous Section 8, related to apportioned spirituous liquors; (1) previous Section 20 which added two members to the Commission; (2) previous Section 24 which amended GS 18B-804 by setting minimum prices for spirituous liquor; (3) previous Section 25 which enacted new GS 18B-300.3, concerning a pricing flexibility local option; and (4) previous Section 31 which amended GS 18B-1006, to allow limited distillery sales in recreation districts. Makes conforming changes to the act’s section numbers, which are reflected below.

Section 3

Remove the proposed changes in Section 3 related to the operation of ABC stores on Sundays. Removes the proposed changes to GS 18B-802, except still removes the prohibition on selling alcohol on New Year's Day, Fourth of July, and Labor Day.

Section 9

Changes the effective date of changes to GS 18B-800 concerning the sale of consumer specialty items, gift cards, and barrels to July 1, 2024 (was, December 1, 2023).

Section 13

Further amends GS 18B-903 by adding the following and making conforming changes. Specifies that the transfer by a person of any ownership interest to a revocable or irrevocable trust established by the person does not constitute a change in ownership for purposes of subdivision (1) of this subsection (concerning the automatic expiration of all permits for an establishment) if the person transferring the ownership interest to the trust continues to operate the establishment. Provides that if the person who transferred the ownership interest ceases to operate the establishment following the transfer of the ownership interest to the trust, this does constitute a change in ownership for subdivision (1) of this subsection. Requires the trustee to notify the Alcoholic Beverage Commission (Commission) within 30 days if the person who transferred the ownership interest ceases to operate the establishment.

Section 14

Changes the title of the section. Removes the changes to the definition of bar under GS 18B-1000 which removed the provision excluding from the term bar, a brewery, winery, or distillery.

Further amends GS 18B-1001 by specifying that an on-premises malt beverage permit authorizes the retail sale of malt beverages for consumption on the premises, either alone or mixed with other beverages.

Removes the changes to GS 130A-247 that defined bar to means an establishment with a permit to sell alcoholic beverages pursuant to subdivision (1), (3), (5), or (10) of GS 18B-1001 and that does not prepare or serve food as defined in this Part other than beverage garnishes, ice, or food that does not require time or temperature control for safety as set out in GS 130A-248(a) and rules adopted to implement that section, and that is in an unopened original commercial package, except for food used as a beverage garnish.

Removes the section’s effective date of October 1, 2023, making it effective when the act becomes law.

Section 16

Changes the effective date of the Section, concerning the new cotenant and bring your own beverage permits, as well as the regulation of outside beverages at adult live entertainment businesses, from October 1, 2023, to July 1, 2024.

Section 17

Changes the effective date of the Section, concerning the new mobile bar services permit, from October 1, 2023, to July 1, 2024.

Section 19

Change the effective date of the Section, which makes changes to GS 18B-502 concerning the requirement for alcohol law enforcement to notify permit holders of violations, from December 1, 2023, to September 1, 2024.

Section 20

Changes the effective date of the Section, concerning distillery estate districts, from October 1, 2023, to July 1, 2024.

Section 23

Changes the effective day of the Section, concerning a tax cap on qualifying spirituous liquor purchases from January 1, 2024, to January 1, 2025. Changes the title of the Section.

Section 25

Changes the effective date of the Section, concerning the home maker special event permit, from December 1, 2023, to October 1, 2024.

Adds the following new content.

Section 30

Amends GS 18B-701 to give a local ABC board the authority to contract with an independent contractor for the delivery of its spirituous liquor from the local board's warehouse to the local board's ABC stores, if: (1) the local board enters into a written contract with the independent contractor; (2) the independent contractor gives the local board proof that he is a contract carrier with a surety bond; (3) the contract may be terminated at will by either party without cause; (4) the independent contractor maintains in force an indemnity and fidelity insurance policy with the local board named as an additional insured in an amount sufficient to insure the value of the alcoholic beverages to be transported and delivered by the independent contractor; and (5) the independent contractor contractually assumes liability for any damage, breakage, or theft of the spirituous liquor to be delivered from the time possession is taken by the independent contractor from the local board until delivery of the spirituous liquor to the ABC store is acknowledged in writing by the store’s manager or an employee. Defines the term contract carrier.

Requires the Commission to amend its rules to replace the term "motor vehicle carrier" as used in 14B NCAC 15A.1903 for the delivery of mixed beverage permittee orders, with the term “contract carrier." Also allows the Commission to further define by rule the term “contract carrier.”

Section 31

Enacts new GS 18B-300.3 which allows, during the hours of airport operation, any bar, food business, private club, or wine producer permitted GS 18B-1000 and operating in the Transportation Security Administration-screened portion of an airport to, with the airport authority’s written approval, sell the alcoholic beverages it is permitted to sell for consumption throughout the Transportation Security Administration-screened portion of the establishment's respective airport terminal. Requires an alcoholic beverage served for consumption throughout an establishment's airport terminal to be served in a container that meets specified requirements, including displaying "Drink Responsibly–Be 21." Allows a customer to purchase and consume alcoholic beverages throughout the interior of the Transportation Security Administration-screened portion of the respective airport terminal, if it is purchased from an approved establishment. Applies only to airports that service airplanes boarding at least 150,000 passengers annually.

Section 32

Amends GS 18B-116 by making it illegal for any manufacturer, bottler, or wholesaler of any alcoholic beverages, or for any officer, director, or affiliate thereof, to provide draft line cleaning services to an alcoholic beverage retailer unless the retailer pays the fair market value for that service. Effective January 1, 2025.

Section 33

Amends the definition of sports club in GS 18B-1000 to include establishment is substantially engaged in the business of providing four or more pickleball courts.

Section 34

Amends GS 95-25.5 by lowering the age at which a person can work in an ABC permitted establishment from 16 to 15.

Section 35

Amends GS 105-113.83 as follows. Requires that the excise tax on Alcoholic Beverage be paid when a report is due. Specifies that a report is due annually or monthly, as specified, and must be filed regardless of whether alcoholic beverages were sold or otherwise disposed of in this State. Provides that a report covers liabilities that accrue in the reporting period; liabilities accrue in the reporting period in which the alcoholic beverage is first sold or otherwise disposed of in this State. Requires the local ABC board and distillery, a wholesaler or importer and a brewery or winery to file a monthly report. Makes additional conforming and technical changes.

Section 36

Amends GS 18B-901 to limit the Commission’s discretion as to whether to issue a permit to a cigar bar to the factors in GS Chapter 18B. Prohibits the Commission from considering whether the cigar bar may allow smoking indoors under GS 130A-496 in deciding whether to issue the cigar bar a permit.

Amends GS 130A-496 which allows smoking in a cigar bar if smoke from the cigar bar does not migrate into an enclosed area where smoking is prohibited by adding that a cigar bar that does not serve prepared food is not required to be located in a freestanding structure occupied solely by the cigar bar, if smoke from the cigar bar does not migrate into an enclosed area where smoking is prohibited pursuant to this Article, whether or not located in the same structure. Makes conforming changes to GS 130A-498 concerning local ordinances or other rules, laws, or policies that restrict or prohibit smoking.

Section 37

Amends GS 18B-701 to give local ABC boards authority to contract with a third party to make an ATM available in one or more ABC stores operated by the board. Amends GS 18B-800 to allow ABC stores to make an ATM available to customers if approved by the local board.

Makes additional technical changes and updates internal cross-references in the act to reflect deleted content.