GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION LAW 2022-51
SENATE BILL 470
AN ACT to MAKE TECHNICAL CHANGES TO S.L. 2021‑150, ABC OMNIBUS LEGISLATION, TO MAKE OTHER CHANGES TO THE ALCOHOL LAWS, AND TO MAKE A CORRECTION TO THE NAME OF THE PROPANE TRADE ASSOCIATION.
The General Assembly of North Carolina enacts:
ABC TECHNICAL CORRECTIONS
SECTION 1.(a) Section 1.3 of S.L. 2021‑150 reads as rewritten:
"SECTION 1.3. The ABC
Commission shall adopt rules to determine how long a product purchased by an
online order pursuant to G.S. 18B‑800(c3) may be set aside before
being returned to inventory at an ABC
store.store, and as necessary
to implement this Part."
SECTION 1.(b) Section 1.4 of S.L. 2021‑150 reads as rewritten:
"SECTION 1.4. This
Part becomes effective October 1,
2021, 2022, and applies to
sales on or after that date."
SECTION 2. G.S. 18B‑1105(a)(4)a. reads as rewritten:
"a. The name of the
purchaser of the bottle or the name of any individual, business entity,
ABC Board, or ABC store or club on whose behalf the bottle is
SECTION 3. G.S. 18B‑1113.1 reads as rewritten:
"§ 18B‑1113.1. Authorization of optional nonresident spirituous liquor vendor permit.
(a) The following businesses may apply for and obtain a nonresident spirituous liquor vendor permit:
(1) 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 this State.
(2) A brokerage.
(3) A liquor importer/bottler.
(b) The holder of a
nonresident spirituous liquor vendor permit may
sell, deliver, deliver
and ship spirituous liquor that has been approved for sale in this State to
the permit holder's (i) employees in the State and (ii) brokerage if the
brokerage also holds a nonresident spirituous liquor vendor permit for the
purposes of conducting special events pursuant to G.S. 18B‑1114.7.
The permit holder may not ship or deliver more spirituous liquor to its
employees or brokerage than is necessary for any consumer tasting event
scheduled within one calendar month of the shipment or delivery. Nothing in
this section shall be interpreted to require a business to possess or obtain a
nonresident spirituous liquor vendor permit to do business in the State or to
obtain a spirituous liquor special event permit pursuant to G.S. 18B‑1114.7.
(c) For purposes of this
"brokerage" means a business that brokers the sale of
spirituous liquor on behalf of a distillery or liquor importer/bottler, and "distillery"
means the holder of a distillery permit issued under G.S. 18B‑1105
or 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 this State."
SECTION 4. G.S. 18B‑101 is amended by adding a new subdivision to read:
"(5d) "Brokerage" means a business that brokers the sale of spirituous liquor on behalf of the holder of a distillery permit issued under G.S. 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 this State, or a liquor importer or bottler."
SECTION 5.(a) G.S. 18B‑1114.7(a) reads as rewritten:
"(a) Authorization. – The
holder of a supplier representative permit, brokerage representative permit,
nonresident spirituous liquor vendor permit, or distillery permit issued under
G.S. 18B‑1105 may obtain a spirituous liquor special event permit
allowing the permittee to give free tastings of its spirituous liquors at ABC
stores where the local board has approved the tasting, at shopping
or at trade shows, conventions, street festivals, holiday festivals,
agricultural festivals, balloon races, farmers markets, local fund‑raisers,
and other similar events approved by the Commission. Additionally, the holder
of a spirituous liquor special event permit may sell mixed beverages or provide
at no cost spirituous liquor distilled or produced at the distillery in
closed containers at trade shows, conventions, agricultural festivals, farmers
markets, local fund‑raisers, and other similar events approved by the
Commission. The permit shall 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
SECTION 5.(b) G.S. 18B‑1114.7(c)(1a) is repealed.
SECTION 6. G.S. 18B‑1105(d) reads as rewritten:
"(d) Control of Location
of Sale and Consumption on Premises. – Notwithstanding G.S. 18B‑301(e),
except as otherwise prohibited by federal law or the holder of the distillery
permit, an alcoholic beverage authorized to be sold or consumed under this
section may be sold, possessed, or consumed on any part of the licensed
premises of the
distillery. distillery that is open to the public. This
section subsection shall not be construed to allow spirituous
liquor in closed containers sold for off‑premises consumption to be
consumed at the distillery."
SECTION 7.(a) G.S. 18B‑603(d)(2) is repealed.
SECTION 7.(b) G.S. 18B‑603(d)(3a) is amended by adding a new sub‑subdivision to read:
"c. On‑premises fortified wine permits to any establishment that meets the requirements of G.S. 18B‑1001(5)."
SECTION 8. G.S. 18B‑904(h) reads as rewritten:
"(h) Extension of Licensed Premises. – A permittee holding a permit issued under Article 10 or 11 of this Chapter that allows the on‑premises consumption of alcoholic beverages may utilize an area that is not part of the permittee's licensed premises for the outdoor possession and consumption of alcoholic beverages sold by the permittee subject to all of the following requirements:
(3) The permittee has
provided written notification, including the diagram required under subdivision
(5) of this subsection and, if applicable, a copy of the written permission
required under subdivision (2) of this subsection, to the Commission, the
district office of the ALE Division, and local law enforcement
with jurisdiction over the licensed premises.
(6) The extended area shall
not be used to increase the occupant load of the licensed
exclusive of the extended area. For purposes of this section,
"occupant load" is as used in Section 1004 of the 2018 North Carolina
SECTION 9.(a) G.S. 18B‑101(4a), as enacted by Section 27.1 of S.L. 2021‑150, reads as rewritten:
consumable" means any manufactured and packaged
ice cream, ice pop,
gum‑based, or gelatin‑based food product containing at least one‑half
of one percent (0.5%) alcohol by volume."
SECTION 9.(b) This section is effective retroactively to September 10, 2021, and expires on December 1, 2022.
ELIMINATE TOUR BOAT ALCOHOLIC BEVERAGE SALE GROSS RECEIPTS CAP
SECTION 10. G.S. 18B‑1006(i) reads as rewritten:
"(i) Tour Boats. – The Commission may issue permits to boats that conduct regularly scheduled tours upon the rivers or waterways of this State under the following conditions:
(1) A boat shall offer food
and non‑alcoholic beverages for sale on each
tour.tour on which
alcoholic beverages are served. (2) A boat's gross receipts from sales of alcoholic
beverages shall be no more than twenty-five percent (25%) of its total gross
ADD DEFINITION OF "SUPPLIER"
SECTION 11. G.S. 18B‑1119 reads as rewritten:
"§ 18B‑1119. Supplier's financial interest in wholesaler.
(a) A supplier or an
officer, director, employee or affiliate of a supplier may not acquire,
possess, or otherwise maintain an ownership interest in
a its wholesaler
except as expressly authorized by this Chapter.
(b) Repealed by Session Laws 2018‑100, s. 7(b), effective June 26, 2018.
(c) A supplier or an officer, director, employee or affiliate of a supplier may have a security interest in the inventory or property of its wholesaler to secure payment for such inventory or other loans for other purposes.
(d) For purposes of this section, "supplier" means a manufacturer, bottler, importer, or owner of one or more brands of malt beverages, unfortified wine, or fortified wine distributed by its wholesaler. The term "supplier" does not include a wholesaler that meets either of the following criteria:
(1) The wholesaler also possesses a wine importer permit or a malt beverages importer permit issued pursuant to this Chapter.
(2) The wholesaler 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."
ABC COMMISSION RULEMAKING EXCEPTION WITH RESPECT TO APPROVAL OF ALCOHOLIC BEVERAGES
SECTION 12. G.S. 150B‑1(d) is amended by adding a new subdivision to read:
"(32) The Alcoholic Beverage Control Commission with respect to approval of alcoholic beverages to be sold in local ABC stores through the State warehouse and by special order pursuant to Article 8 of Chapter 18B of the General Statutes."
ALLOW ABC COMMISSION TO OFFER DELIVERY SERVICE COURSES
SECTION 13.(a) G.S. 18B‑1001.4(b) reads as rewritten:
"(b) Training and Payment. – Prior to making any deliveries, each individual delivering alcoholic beverages pursuant to a delivery service permit shall successfully complete a course conducted or approved by the Commission related to the delivery of alcoholic beverages. Upon receipt of a proposed training program from a holder of a delivery service permit, the Commission shall have 15 business days to approve, deny, or request modifications to the proposed training program. An individual delivering alcoholic beverages pursuant to a delivery service permit shall not handle or possess funds used to purchase an alcoholic beverage that is to be delivered, but may facilitate the sales transaction in a manner that does not involve taking possession of funds."
SECTION 13.(b) This section becomes effective October 1, 2022.
ALLOW EMPTY SPIRITUOUS LIQUOR BOTTLES TO BE USED FOR DISPLAY PURPOSES
SECTION 14.(a) G.S. 18B‑1006.1 reads as rewritten:
"§ 18B‑1006.1. Additional requirement for certain permittees to recycle beverage containers.
(a) Holders of on‑premises malt beverage permits, on‑premises unfortified wine permits, on‑premises fortified wine permits, and mixed beverages permits shall separate, store, and provide for the collection for recycling of all recyclable beverage containers of all beverages sold at retail on the premises. A permittee has satisfied the requirements of this section if it implements a recycling program that meets the minimum standards of the model recycling program developed by the Commission pursuant to G.S. 130A‑309.14(m). Failure to comply with the requirements of this section shall not be grounds for revocation of a permit. A conviction for violation of this section shall not constitute an alcoholic beverage offense within the meaning of G.S. 18B‑900(a)(4).
(b) Notwithstanding subsection (a) of this section, recyclable spirituous liquor containers may be used for display purposes as provided by the Commission. The permit holder shall notify the Commission of any such containers to be used for display purposes, and each container used for display purposes shall be stamped with a mixed beverages tax stamp. When a container is no longer used for display purposes, the permit holder shall recycle the container as provided in subsection (a) of this section."
SECTION 14.(b) The Alcoholic Beverage Control Commission shall adopt rules, or amend its rules, consistent with the provisions of this section. The Commission may adopt permanent rules as required under this section using the procedure set forth in G.S. 150B‑21.1.
AMEND "RESTAURANT" DEFINITION FOR ABC PERMITTING
SECTION 15. G.S. 18B‑1000(6) reads as rewritten:
"(6) Restaurant. – An
establishment substantially engaged in the business of preparing and serving
meals. To qualify as a restaurant, an establishment's gross receipts from food
and nonalcoholic beverages shall be not less than thirty percent (30%) of the
total gross receipts from food, nonalcoholic beverages, and alcoholic beverages
sold for on‑premises consumption. A restaurant shall also have a kitchen
and an inside dining area with seating for at least
36 10 people.
It is not necessary for an establishment to maintain kitchen operations at
all times it is open to the public to qualify as a restaurant. If the
restaurant is located on an 18‑hole golf course, the premises shall
include the parking lot and the playing area of the golf course, including the
teeing areas, greens, fairways, roughs, hazards, and cart paths."
EXEMPT BAR AREAS FROM HEALTH INSPECTION
SECTION 16. G.S. 130A‑250 is amended by adding a new subdivision to read:
"(20) The bar area or other similar area in an establishment where alcoholic beverages are prepared, poured, or mixed before service to customers and food is not prepared, except for the preparation of garnishes for alcoholic beverages."
ALLOW BRANDED PLUG‑IN COOLERS IN ABC STORES
SECTION 17. Article 8 of Chapter 18B of the General Statutes is amended by adding a new section to read:
"§ 18B‑809. Use of branded plug‑in coolers.
No rule or decision of the Commission may limit or restrict the giving, lending, or selling by industry members of branded plug‑in coolers used to hold and display products, provided that coolers are under the dollar limits set forth by the Commission for product displays. A branded plug‑in cooler shall have permanent and conspicuous branding that is permanently attached or securely affixed to the cooler."
AMEND BAR DEFINITION
SECTION 18. If House Bill 768, 2021 Regular Session, becomes law, G.S. 18B‑1000(1), as amended by Section 6(a) of that act, reads as rewritten:
"(1) Bar. – An
establishment that is primarily engaged in the business of selling alcoholic
and that does not serve prepared food as defined in G.S. 105‑164.3(179).
for consumption on the premises. A bar shall not include a brewery,
winery, or distillery."
ALLOW 50‑MILLILITER CONTAINERS OF MALT BEVERAGES
SECTION 19. Article 11 of Chapter 18B of the General Statutes is amended by adding a new section to read:
"§ 18B‑1122. Minimum standard of fill for malt beverages.
Malt beverages may be produced, bottled, imported, distributed, and sold in sealed containers which are 50 milliliters or more in volume. The Commission shall not limit or restrict the size of an individual malt beverage container allowed for sale in this State, provided that the container is not less than 50 milliliters."
UPDATE PROPANE TRADE ASSOCIATION NAME
SECTION 20.(a) G.S. 119‑63.3(1) reads as rewritten:
Association. – The
North Carolina Propane Gas Association, Inc., Alliance. – Southeast
Propane Alliance, Inc., a North Carolina nonprofit corporation."
SECTION 20.(b) The Revisor of Statutes shall replace the phrase "Association" with "Alliance" in Article 5A of Chapter 119 of the General Statutes.
SECTION 21. Except as otherwise provided, this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 1st day of July, 2022.
s/ Phil Berger
President Pro Tempore of the Senate
s/ Tim Moore
Speaker of the House of Representatives
s/ Roy Cooper
Approved 4:01 p.m. this 7th day of July, 2022