GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2017
H 2
HOUSE BILL 500
Committee Substitute Favorable 4/25/17
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Short Title: ABC Omnibus Legislation. |
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Sponsors: |
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Referred to: |
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March 29, 2017
A BILL TO BE ENTITLED
AN ACT to make various changes to the alcoholic beverage control commission laws.
The General Assembly of North Carolina enacts:
AUTHORIZE SALE OF GROWLERS BY RETAIL PERMITTEES
SECTION 1.(a) G.S. 18B‑1001 reads as rewritten:
"§ 18B‑1001. Kinds of ABC permits; places eligible.
When the issuance of the permit is lawful in the jurisdiction in which the premises are located, the Commission may issue the following kinds of permits:
(1) On‑Premises Malt
Beverage Permit. – An on‑premises malt beverage permit authorizes (i) the
retail sale of malt beverages for consumption on the premises, (ii) the retail
sale of malt beverages in the manufacturer's original container for consumption
off the premises, and (iii) the retail sale of malt beverages in a cleaned,
sanitized, resealable cleaned and sanitized container that is filled
or refilled and sealed for consumption off the premises and that identifies the
permittee and the date the container was filled or refilled. It also authorizes
the holder of the permit to ship malt beverages in closed containers to
individual purchasers inside and outside the State. The permit may be issued
for any of the following:
a. Restaurants;Restaurants.
b. Hotels;Hotels.
c. Eating establishments;establishments.
d. Food businesses;businesses.
e. Retail businesses;businesses.
f. Private clubs;clubs.
g. Convention centers;centers.
h. Community theatres;theatres.
i. Breweries as authorized by G.S. 18B‑1104(7) and (8).
(2) Off‑Premises Malt
Beverage Permit. – An off‑premises malt beverage permit authorizes (i)
the retail sale of malt beverages in the manufacturer's original container for
consumption off the premises, (ii) the retail sale of malt beverages in a cleaned,
sanitized, resealable cleaned and sanitized container that is filled
or refilled and sealed for consumption off the premises and that identifies the
permittee and the date the container was filled or refilled, and (iii) the
holder of the permit to ship malt beverages in closed containers to individual
purchasers inside and outside the State. The permit may be issued for any of
the following:
a. Restaurants.
b. Hotels.
c. Eating establishments.
d. Food businesses.
e. Retail businesses.
f. The holder of a brewing, distillation, and fermentation course authorization under G.S. 18B‑1114.6. A school obtaining a permit under this subdivision is authorized to sell malt beverages manufactured during its brewing, distillation, and fermentation program at one noncampus location in a county where the permittee holds and offers classes on a regular full‑time basis in a facility owned by the permittee.
(3) On‑Premises
Unfortified Wine Permit. – An on‑premises unfortified wine permit
authorizes (i) the retail sale of unfortified wine for consumption on the
premises, either alone or mixed with other beverages, (ii) the retail sale of
unfortified wine in the manufacturer's original container for consumption off
the premises, and (iii) the retail sale of unfortified wine dispensed from a
tap connected to a pressurized container utilizing carbon dioxide or similar
gas into a cleaned, sanitized, resealable cleaned and sanitized container
that is filled or refilled and sealed for consumption off the premises and that
identifies the permittee and the date the container was filled or refilled. The
permit also authorizes the permittee to transfer unfortified wine, not more
than four times per calendar year, to another on‑premises unfortified
wine permittee that is under common ownership or control as the transferor.
Except as authorized by this subdivision, transfers of wine by on‑premises
unfortified wine permittees, purchases of wine by a retail permittee from
another retail permittee for the purpose of resale, and sale of wine by a
retail permittee to another retail permittee for the purpose of resale are
unlawful. In addition, a particular brand of wine may be transferred only if
both the transferor and transferee are located within the territory designated
between the winery and the wholesaler on file with the Commission. Prior to or
contemporaneous with any such transfer, the transferor shall notify each
wholesaler who distributes the transferred product of the transfer. The notice
shall be in writing or verifiable electronic format and shall identify the
transferor and transferee, the date of the transfer, quantity, and items
transferred. The holder of the permit is authorized to ship unfortified wine in
closed containers to individual purchasers inside and outside the State. Orders
received by a winery by telephone, Internet, mail, facsimile, or other off‑premises
means of communication shall be shipped pursuant to a wine shipper permit and
not pursuant to this subdivision. The permit may be issued for any of the
following:
a. Restaurants;Restaurants.
b. Hotels;Hotels.
c. Eating establishments;Eating
establishments.
d. Private clubs;Private
clubs.
e. Convention centers;Convention
centers.
f. Cooking schools;Cooking
schools.
g. Community theatres;Community
theatres.
h. Wineries;Wineries.
i. Wine producers.
(4) Off‑Premises Unfortified
Wine Permit. – An off‑premises unfortified wine permit authorizes (i) the
retail sale of unfortified wine in the manufacturer's original container for
consumption off the premises, (ii) the retail sale of unfortified wine
dispensed from a tap connected to a pressurized container utilizing carbon
dioxide or similar gas into a cleaned, sanitized, resealable cleaned
and sanitized container that is filled or refilled and sealed for
consumption off the premises and that identifies the permittee and the date the
container was filled or refilled, and (iii) the holder of the permit to ship
unfortified wine in closed containers to individual purchasers inside and
outside the State. The permit may be issued for retail businesses. The permit
also authorizes the permittee to transfer unfortified wine, not more than four
times per calendar year, to another off‑premises unfortified wine
permittee that is under common ownership or control as the transferor. Except
as authorized by this subdivision, transfers of wine by off‑premises
unfortified wine permittees, purchases of wine by a retail permittee from
another retail permittee for the purpose of resale, and sale of wine by a
retail permittee to another retail permittee for the purpose of resale are
unlawful. In addition, a particular brand of wine may be transferred only if
both the transferor and transferee are located within the territory designated
between the winery and the wholesaler on file with the Commission. Prior to or
contemporaneous with any such transfer, the transferor shall notify each
wholesaler who distributes the transferred product of the transfer. The notice
shall be in writing or verifiable electronic format and shall identify the
transferor and transferee, the date of the transfer, quantity, and items
transferred. The permit may also be issued to the holder of a
viticulture/enology course authorization under G.S. 18B‑1114.4. A
school obtaining a permit under this subdivision is authorized to sell wines
manufactured during its viticulture/enology program at one non‑campus
location in a county where the permittee holds and offers classes on a regular
full‑time basis in a facility owned by the permittee. The permit may also
be issued for a winery or a wine producer for sale of its own unfortified wine
during hours when the winery or wine producer's premises is open to the public,
subject to any local ordinance adopted pursuant to G.S. 18B‑1004(d)
concerning hours for the retail sale of unfortified wine. A winery obtaining a
permit under this subdivision is authorized to sell wine manufactured by the
winery at one additional location in the county under the same conditions
specified in G.S. 18B‑1101(5) for the sale of wine at the winery;
provided, however, that no other alcohol sales shall be authorized at the
additional location. Orders received by a winery by telephone, Internet, mail,
facsimile, or other off‑premises means of communication shall be shipped
pursuant to a wine shipper permit and not pursuant to this subdivision.
…
(16) Wine Shop Permit. – A wine
shop permit authorizes (i) the retail sale of malt beverages, unfortified wine,
and fortified wine in the manufacturer's original container for consumption off
the premises, (ii) the retail sale of malt beverages or unfortified wine
dispensed from a tap connected to a pressurized container utilizing carbon
dioxide or similar gas in a cleaned, sanitized, resealable cleaned
and sanitized container that is filled or refilled and sealed for
consumption off the premises and that identifies the permittee and the date the
container was filled or refilled, and (iii) wine tastings on the premises
conducted and supervised by the permittee in accordance with subdivision (15)
of this section. It also authorizes the holder of the permit to ship malt
beverages, unfortified wine, and fortified wine in closed containers to
individual purchasers inside and outside the State. The permit may be issued
for retail businesses whose primary purpose is selling malt beverages and wine
for consumption off the premises and regularly and customarily educating
consumers through tastings, classes, and seminars about the selection, serving,
and storing of wine. The holder of the permit is authorized to sell unfortified
wine for consumption on the premises, provided that the sale of wine for
consumption on the premises does not exceed forty percent (40%) of the
establishment's total sales for any 30‑day period. The holder of a wine‑tasting
permit not engaged in the preparation or sale of food on the premises is not
subject to Part 6 of Article 8 of Chapter 130A of the General Statutes.
…."
SECTION 1.(b) The Alcoholic Beverage Control (ABC) Commission shall adopt rules to implement the provisions of this section by no later than 60 days after this act becomes law. The ABC Commission may adopt temporary rules to comply with the deadline set in this subsection. Any temporary rules adopted in accordance with this subsection shall remain in effect until permanent rules that replace the temporary rules become effective.
AUTHORIZE OFF‑SITE STORAGE LOCATION FOR BREWERIES, WINERIES, AND DISTILLERIES
SECTION 2. Article 11 of Chapter 18B of the General Statutes is amended by adding a new section to read:
"§ 18B‑1120. Noncontiguous storage locations.
A brewery, winery, or distillery may store any alcoholic beverages it manufactures pursuant to a permit issued under this Article at a noncontiguous storage location approved by the Alcohol and Tobacco Tax and Trade Bureau. For purposes of Article 5 of this Chapter, the term "premises" includes a storage location used pursuant to this section."
AUTHORIZE SALE OF UNFORTIFIED WINE ON PREMISES BY RETAIL BUSINESSES
SECTION 3. G.S. 18B‑1001(3), as amended by Section 1 of this act, reads as rewritten:
"(3) On‑Premises Unfortified Wine Permit. – An on‑premises unfortified wine permit authorizes (i) the retail sale of unfortified wine for consumption on the premises, either alone or mixed with other beverages, (ii) the retail sale of unfortified wine in the manufacturer's original container for consumption off the premises, and (iii) the retail sale of unfortified wine dispensed from a tap connected to a pressurized container utilizing carbon dioxide or similar gas into a cleaned and sanitized container that is filled or refilled and sealed for consumption off the premises and that identifies the permittee and the date the container was filled or refilled. The permit also authorizes the permittee to transfer unfortified wine, not more than four times per calendar year, to another on‑premises unfortified wine permittee that is under common ownership or control as the transferor. Except as authorized by this subdivision, transfers of wine by on‑premises unfortified wine permittees, purchases of wine by a retail permittee from another retail permittee for the purpose of resale, and sale of wine by a retail permittee to another retail permittee for the purpose of resale are unlawful. In addition, a particular brand of wine may be transferred only if both the transferor and transferee are located within the territory designated between the winery and the wholesaler on file with the Commission. Prior to or contemporaneous with any such transfer, the transferor shall notify each wholesaler who distributes the transferred product of the transfer. The notice shall be in writing or verifiable electronic format and shall identify the transferor and transferee, the date of the transfer, quantity, and items transferred. The holder of the permit is authorized to ship unfortified wine in closed containers to individual purchasers inside and outside the State. Orders received by a winery by telephone, Internet, mail, facsimile, or other off‑premises means of communication shall be shipped pursuant to a wine shipper permit and not pursuant to this subdivision. The permit may be issued for any of the following:
…
j. Retail businesses."
AUTHORIZE TASTINGS DURING BREWERY TOURS
SECTION 4. G.S. 18B‑1104(6) reads as rewritten:
"§ 18B‑1104. Authorization of brewery permit.
The holder of a brewery permit may:
…
(6) Give its products to its
employees and guests customers, visitors, and employees for
consumption on its premises. Nothing in this subdivision shall be construed
as excluding customers and visitors at the brewery as part of a paid or
complimentary tour of the brewery."
AUTHORIZE CERTAIN PERSONS TO SAMPLE ALCOHOLIC BEVERAGES FOR PURPOSES OF SENSORY ANALYSIS, QUALITY CONTROL, OR EDUCATION
SECTION 5. Article 11 of Chapter 18B of the General Statutes is amended by adding a new section to read:
"§ 18B‑1121. Authority to sample for sensory analysis, quality control, or educational purposes.
Except as otherwise prohibited under Article 3 of this Chapter, a commercial permittee licensed under this Article, or its agent or employee, may consume samples of alcoholic beverages it is licensed to sell, free of charge, on its premises for purposes of sensory analysis, quality control, or education."
AMEND HOMEBREWING LAWS
SECTION 6. G.S. 18B‑306 reads as rewritten:
"§ 18B‑306. Making wines and malt beverages for private use.
(a) Authority. – An individual may make,
possess, and transport native wines and malt beverages for his the
individual's own use and for use, the use of his the
individual's family and guests. Native wines shall be made principally
from honey, grapes, or other fruit or grain grown in this State, or from wine
kits containing honey, grapes, or other fruit or grain concentrates, and shall
have only that alcoholic content produced by natural fermentation. Malt
beverages may be made by use of malt beverage kits containing grain extracts or
concentrates.guests, or the use at organized affairs, exhibitions, or
competitions. For purposes of this section, the term "organized affairs,
exhibitions, or competitions" includes homemaker's contests, tastings, and
judgings.
(b) Selling Prohibited. – Wines and malt beverages made pursuant to this section may not be sold or offered for sale.
(c) Kits. – Wine kits and malt beverage kits may be sold in this State.
(d) Permit. – No ABC permit is required to make wines or malt beverages pursuant to this section."
CLARIFY LAW GOVERNING RELATIONSHIP BETWEEN BREWERIES AND AFFILIATED RETAILERS
SECTION 7. G.S. 18B‑1116(a) reads as rewritten:
"(a) Prohibitions. – It shall be unlawful for any manufacturer, bottler, or wholesaler of any alcoholic beverages, or for any officer, director, or affiliate thereof, either directly or indirectly to:
(1) Require that an alcoholic beverage retailer purchase any alcoholic beverages from that person to the full or partial exclusion of any other alcoholic beverages offered for sale by other persons in this State; or
(2) Have any direct or indirect financial interest in the business of any alcoholic beverage retailer in this State or in the premises where the business of any alcoholic beverage retailer in this State is conducted; or
(3) Lend or give to any alcoholic beverage retailer in this State or his employee or to the owner of the premises where the business of any alcoholic beverage retailer in this State is conducted, any money, service, equipment, furniture, fixtures or any other thing of value.
A brewery qualifying under G.S.
18B‑1104(8) to act as a wholesaler or retailer of its own malt beverages G.S. 18B‑1104(7)
or (8) is not subject to the provisions of this subsection section
concerning financial interests in, and lending or giving things of value
to, a wholesaler or retailer with respect to the brewery's transactions with
the retail business on its premises.premises or other retail
locations allowed under G.S. 18B‑1104(8). The brewery is subject
to the provisions of this subsection, however, with respect to its transactions
with all other wholesalers and retailers."
AUTHORIZE BREWERY TAPROOMS TO SELL OTHER ALCOHOLIC BEVERAGES UPON RECEIVING THE APPROPRIATE PERMIT
SECTION 8. G.S. 18B‑1104(7) reads as rewritten:
"(7) In an area where the
sale of any type of alcoholic beverage is authorized by law, and upon
receiving the appropriate permit under G.S. 18B‑1001, sell the
at the brewery, and any additional retail location authorized under
subdivision (8) of this section, any or all of the following:
a. The brewery's malt beverages or malt beverages
that have been approved by the Commission for sale in North Carolina.
b. Malt beverages manufactured by the
permittee in some other state that have been approved by the Commission for
sale in North Carolina only at the brewery upon receiving a permit under G.S.
18B‑1001(1).Carolina.
c. Any other alcoholic beverages approved by the Commission for sale in North Carolina, if sale of the alcoholic beverage is otherwise authorized in that area."
AUTHORIZE BREWERIES WITH PRODUCTION FACILITIES IN OTHER STATES TO DISTRIBUTE TO WHOLESALERS
SECTION 9. G.S. 18B‑1104(4) reads as rewritten:
"(4) Receive malt
beverages manufactured by the permittee in some other state for transshipment
to (i) dealers in other states.states or (ii) wholesalers
licensed under this Chapter as authorized by the ABC laws."
AUTHORIZE FARM BREWERIES
SECTION 10. G.S. 18B‑1104 is amended by adding a new subdivision to read:
"(7a) In an area where the sale of malt beverages has not been authorized, a brewery that produces agricultural products, including barley, other grains, hops, or fruit, used by the brewery in the manufacture of malt beverages may sell the malt beverages owned by the brewery and approved by the Commission for sale in North Carolina at the brewery for on‑ or off‑premise consumption upon (i) obtaining the appropriate permit under G.S. 18B‑1001 and (ii) receiving approval from the governing body of the city where the brewery is located or, if the brewery is not located in a city, the governing body of the county where the brewery is located. Approval may be granted only pursuant to a resolution of the governing body adopted at a regular meeting. Before adopting a resolution approving the sale of malt beverages under this subdivision, a governing board shall hold a public hearing. A notice of the public hearing shall be given once a week for two successive calendar weeks in a newspaper having general circulation in the area. The notice of the public hearing shall be published the first time not less than 10 days nor more than 25 days before the date fixed for the hearing. In computing such period, the day of publication is not to be included but the day of the hearing shall be included."
AMEND LAW GOVERNING BREWERY SALES AT ADDITIONAL RETAIL LOCATIONS
SECTION 11. G.S. 18B‑1104 reads as rewritten:
"§ 18B‑1104. Authorization of brewery permit.
The holder of a brewery permit may:
…
(8) Obtain a malt beverage
wholesaler permit to sell, deliver, and ship at wholesale only malt beverages manufactured
by the brewery. The authorization of this subdivision applies to a brewery that
sells, to consumers at the brewery, to wholesalers, to retailers, and to
exporters, fewer than 25,000 barrels, as defined in G.S. 81A‑9, of
malt beverages produced by it per year. A brewery not exceeding the sales
quantity limitations in this subdivision may also sell the malt beverages
manufactured by the brewery brewery, and malt beverages produced
under subdivision (6a) of this section, at not more than three other
locations in the State, where the sale is legal, upon obtaining the appropriate
permits under G.S. 18B‑1001. A brewery operating any additional
retail location pursuant to this subdivision under a different trade name
than that used at the brewery shall also offer for sale at that location a
reasonable selection of competitive malt beverage products. A sale at any
additional retail location under this subdivision shall not be considered a
wholesale sale for the purposes of Article 13 of this Chapter.
A sale or gift under subdivision (5) or (6) shall not be considered a retail or wholesale sale under the ABC laws."
RULES
SECTION 12.(a) Except as otherwise provided, the Alcoholic Beverage Control (ABC) Commission shall adopt temporary rules to implement the provisions of this act. Temporary rules adopted in accordance with this section shall remain in effect until permanent rules that replace the temporary rules become effective.
SECTION 12.(b) Any rule or policy adopted by the ABC Commission that does not comply with the provisions of this act shall be null, void, and without effect.
EFFECT OF HEADINGS
SECTION 13. The headings to the sections of this act are a convenience to the reader and are for reference only. The headings do not expand, limit, or define the text of this act.
EFFECTIVE DATE
SECTION 14. This act is effective when it becomes law.