A BILL TO BE ENTITLED
AN ACT to authorize a city or county to designate social districts where persons may possess and consume alcoholic beverages purchased from certain abc permittees and to authorize a city or county to allow certain abc permittees to extend their licensed premises for purposes of maintaining social distancing.
The General Assembly of North Carolina enacts:

part i. authorization of social districts
SECTION 1.1.  Article 6 of Chapter 153A of the General Statutes is amended by adding a new section to read:
"§ 153A‑145.9.  Authorization of social district.
A county may adopt an ordinance designating a social district for use in accordance with G.S. 18B‑904.1."
SECTION 1.2.  Article 8 of Chapter 160A of the General Statutes is amended by adding a new section to read:
"§ 160A‑205.4.  Authorization of social district.
A city may adopt an ordinance designating a social district for use in accordance with G.S. 18B‑904.1."
SECTION 1.3.  Article 9 of Chapter 18B of the General Statutes is amended by adding a new section to read:
"§ 18B‑904.1.  Authorization and regulation of social districts.
(a)	Definitions. – The following definitions apply in this section:
(1)	Permittee. – An establishment holding any of the following permits issued by the Commission:
a.	An on‑premises malt beverage permit issued pursuant to G.S. 18B‑1001(1).
b.	An on‑premises unfortified wine permit issued pursuant to G.S. 18B‑1001(3).
c.	An on‑premises fortified wine permit issued pursuant to G.S. 18B‑1001(5).
d.	A mixed beverages permit issued pursuant to G.S. 18B‑1001(10).
e.	A distillery permit issued pursuant to G.S. 18B‑1100(5).
(2)	Social district. – A defined outdoor area in which a person may consume alcoholic beverages sold by a permittee. This term does not include the permittee's licensed premises or an extended area allowed under G.S. 18B‑904(h).
(b)	Authorization. – Pursuant to G.S. 153A‑145.9, a county may adopt an ordinance designating a social district in the parts of the county outside any city. Pursuant to G.S. 160A‑205.4, a city may adopt an ordinance designating a social district.
(c)	Requirements for Designation. – A social district designated under this section shall meet all of the following requirements:
(1)	The social district shall be clearly defined with signs posted in a conspicuous location indicating which area is included in the social district, the days and hours during which alcoholic beverages may be consumed in the social district, the telephone number for the ALE Division and the local law enforcement agency with jurisdiction over the area comprising the social district, and a clear statement that an alcoholic beverage purchased for consumption in a social district shall (i) only be consumed in the social district and (ii) be disposed of before the person in possession of the alcoholic beverage exits the social district unless the person is reentering the licensed premises where the alcoholic beverage was purchased. The hours set by a city or county during which alcoholic beverages may be consumed in a social district shall be in accordance with G.S. 18B‑1004.
(2)	The city or county shall establish management and maintenance plans for the social district and post these plans, along with a rendering of the boundaries of the social district and days and hours during which alcoholic beverages may be consumed in the social district, on the website for the city or county. The social district shall be maintained in a manner that protects the health and safety of the general public.
(3)	The city or county shall submit to the Commission a detailed map of the social district with the boundaries of the social district clearly marked and the days and hours during which alcoholic beverages may be consumed in the social district.
(d)	Requirements for Sale of Alcoholic Beverages. – A permittee located in or contiguous to a social district may sell alcoholic beverages for consumption within the social district it is located in or contiguous to in accordance with the following requirements:
(1)	The permittee shall only sell and serve alcoholic beverages on its licensed premises.
(2)	The permittee shall only sell alcoholic beverages for consumption in the social district in a container that meets all of the following requirements:
a.	The container clearly identifies the permittee from which the alcoholic beverage was purchased.
b.	The container clearly displays a logo or some other mark that is unique to the social district in which it will be consumed.
c.	The container is not comprised of glass.
d.	The container displays, in no less than 12‑point font, the statement, "Drink Responsibly – Be 21."
e.	The container shall not hold more than 16 fluid ounces.
(3)	The permittee shall not allow a person to enter or reenter its licensed premises with an alcoholic beverage not sold by the permittee.
(e)	Requirements for Possession and Consumption of Alcoholic Beverages. – The possession and consumption of an alcoholic beverage in a social district is subject to all of the following requirements:
(1)	Only alcoholic beverages purchased from a permittee located in or contiguous to the social district may be possessed and consumed.
(2)	Alcoholic beverages shall only be in containers meeting the requirements set forth in subsection (d) of this section.
(3)	Alcoholic beverages shall only be possessed and consumed during the days and hours set by the city or county in accordance with subsection (b) of this section.
(4)	A person is not allowed to consume more than one alcoholic beverage at a time while within the social district. Nothing in this subdivision shall be construed as authorizing the sale and delivery of alcoholic beverage drinks in excess of the limitation set forth in G.S. 18B‑1010.
(5)	A person shall dispose of any alcoholic beverage in the person's possession prior to exiting the social district unless the person is reentering the licensed premises where the alcoholic beverage was purchased.
(f)	Additional Requirements. – The Commission may adopt rules to impose requirements in addition to the requirements set forth in subsections (c) through (e) of this section."

part ii. make permanent the expansion of licensed premises for purposes of outdoor seating
SECTION 2.1.  Article 6 of Chapter 153A of the General Statutes is amended by adding a new section to read:
"§ 153A‑145.10.  Authorization of expanded area for ABC licensed premises.
In accordance with G.S. 18B‑904(h), a county may adopt an ordinance authorizing permittees holding a permit under Article 10 or 11 of Chapter 18B of the General Statutes to 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."
SECTION 2.2.  Article 8 of Chapter 160A of the General Statutes is amended by adding a new section to read:
"§ 160A‑205.5.  Authorization of expanded area for ABC licensed premises.
In accordance with G.S. 18B‑904(h), a city may adopt an ordinance authorizing permittees holding a permit under Article 10 or 11 of Chapter 18B of the General Statutes to 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."
SECTION 2.3.  G.S. 18B‑904 reads as rewritten:
"§ 18B‑904.  Miscellaneous provisions concerning permits.
…
(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:
(1)	If the licensed premises is located in a city, an ordinance has been adopted by the city authorizing permittees to expand their licensed premises. If the licensed premises is located outside of a city, an ordinance has been adopted by the county authorizing permittees to expand their licensed premises.
(2)	If the property to which the premises will be extended to is not owned by the permittee, the owner of the property has provided written permission to the permittee allowing the use of the property for the purpose set forth in this subsection.
(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 district office of the ALE Division, and local law enforcement agency, with jurisdiction over the licensed premises.
(4)	The permittee shall visibly and vertically mark off the extended area so a reasonable person could distinguish between the extended area and any sidewalk or walkway.
(5)	The permittee shall maintain a diagram on the licensed premises detailing the size and location of the extended area. The diagram required under this subdivision shall have the boundaries of the extended area clearly marked, specify the types of barriers used to mark the boundaries of the extended area, and specify the number of tables and seats placed in the extended area.
(6)	The extended area shall only be used to increase the ability of customers of the permittee to maintain social distancing and shall not be used to increase the occupant load for the licensed premises.
(7)	The extended area shall comply with all applicable laws governing accessibility.
(8)	Except as allowed under G.S. 18B‑904.1 or to reenter the licensed premises, a person shall not exit an extended area with an alcoholic beverage purchased from the permittee.
(9)	Any additional requirements imposed by the Commission through the adoption of rules."

part iii. specify that ale authority to inspect premises includes social districts and extended areas
SECTION 3.  G.S. 18B‑502(a) reads as rewritten:
"(a)	Authority. – To procure evidence of violations of the ABC law, alcohol law‑enforcement agents, employees of the Commission, local ABC officers, and officers of local law‑enforcement agencies that have contracted to provide ABC enforcement under G.S. 18B‑501(f) shall have authority to investigate the operation of each licensed premises for which an ABC permit has been issued, to make inspections that include viewing the entire premises, and to examine the books and records of the permittee. The inspection authorized by this section may be made at any time it reasonably appears that someone is on the premises. Alcohol law‑enforcement agents are also authorized to be on the premises to the extent necessary to enforce the provisions of Article 68 of Chapter 143 of the General Statutes. For purposes of this subsection, the phrase "licensed premises for which an ABC permit has been issued" includes a social district authorized under G.S. 18B‑904.1 and an extended area authorized under G.S. 18B‑904(h)."

part iv. rulemaking, savings clause, and effective date
SECTION 4.1.  The Alcoholic Beverage Control Commission shall adopt rules, or amend its rules, consistent with the provisions of this act. The Commission may use the procedure set forth in G.S. 150B‑21.1 to adopt or amend any rules as required under this subsection.
SECTION 4.2.  Prosecutions for offenses committed before the effective date of this act are not abated or affected by this act, and the statutes that would be applicable but for this act remain applicable to those prosecutions.
SECTION 4.3.  This act is effective when it becomes law.