Bill Summary – FastDemocracy

H.B. 692
                           GENERAL ASSEMBLY OF NORTH CAROLINA
                                                                                                Apr 18, 2023
                                       SESSION 2023                                       HOUSE PRINCIPAL CLERK
     H                                                                                                   D
                                    HOUSE BILL DRH40330-ML-119
     Short Title:    Restaurants & Bars/Buy from Distiller.                                        (Public)
     Sponsors:       Representative Pickett.
     Referred to:
                                       A BILL TO BE ENTITLED
 AN ACT TO ALLOW RESTAURANTS AND BARS HOLDING A MIXED BEVERAGES
     PERMIT TO PURCHASE SPIRITUOUS LIQUOR FROM A DISTILLERY PERMIT
     HOLDER FOR RESALE AS MIXED BEVERAGES.
 The General Assembly of North Carolina enacts:
              SECTION 1. G.S. 18B-1105(a)(2) reads as rewritten:
              "(2) Sell, deliver and ship spirituous liquor in closed containers at wholesale to (i)
                      exporters and local boards within the State, (ii) restaurants and bars holding a
                      mixed beverages permit issued under G.S. 18B-1001, and, (ii) (iii) subject to
                      the laws of other jurisdictions, at wholesale or retail to consumers in other
                      states or nations, or private or public agencies or establishments of other states
                      or nations, except that the holder of a distillery permit may not sell, deliver,
                      or ship spirituous liquor at retail to consumers in jurisdictions that require
                      reciprocity in order to allow such sales, deliveries, or shipments."
              SECTION 2. G.S. 18B-804(b1) reads as rewritten:
     "(b1) Price of Spirituous Liquor Sold at Distillery. – When the holder of a distillery permit
 sells spirituous liquor distilled at the distillery pursuant to G.S. 18B-1105(a)(4), or to a restaurant
 or bar pursuant to G.S. 18B-1105(a)(2), the retail price of the spirituous liquor shall be the
 uniform State price set by subsection (a) of this section. However, For sales pursuant to
 G.S. 18B-1105(a)(4), the holder of the distillery permit shall not be required to remit the
 components of the price set forth by subdivisions (2), (3), (5), (6), (6a), (6b), and (7) of subsection
 (b) of this section. For sales to restaurants and bars pursuant to G.S. 18B-1105(a)(2), the holder
 of the distillery permit shall not be required to remit the components of the price set forth by
 subdivisions (2), (3), (5), (6), (6a), (6b), and (7) of subsection (b) of this section and the holder
 of the distillery permit shall remit the component set forth in subdivision (8) of subsection (b) of
 this section in accordance with G.S. 18B-1105(e)."
              SECTION 3. G.S. 18B-1007(a) reads as rewritten:
     "(a) Purchases. – A Except as otherwise provided in this subsection, a mixed beverages
 permittee may purchase spirituous liquor for resale as mixed beverages and a guest room cabinet
 permittee may purchase spirituous liquor for resale from a guest room cabinet only at an ABC
 store designated by a local board. A restaurant or bar holding a mixed beverages permit may
 purchase spirituous liquor for resale as mixed beverages at an ABC store designated by a local
 board, at a distillery pursuant to G.S. 18B-1105(a)(2), or at an ABC store designated by a local
 board and at a distillery pursuant to G.S. 18B-1105(a)(2)."
              SECTION 4. G.S. 18B-1105 is amended by adding a new subsection to read:
                                    *DRH40330-ML-119*
     General Assembly Of North Carolina                                                     Session 2023
     "(e) Distribution of Mixed Beverages Surcharge. – Each month, in addition to any other
 applicable fees or taxes, a distillery permit holder shall make the following payments for
 spirituous liquor sold directly to a restaurant or bar under subdivision (2) of subsection (a) of this
 section:
             (1)     To the Department of Revenue, one-half of the mixed beverages surcharge
                     required by G.S. 18B-804(b)(8).
             (2)     To the Department of Health and Human Services, five percent (5%) of the
                     mixed beverages surcharge required by G.S. 18B-804(b)(8). The Department
                     shall spend the funds described in this subdivision in accordance with the
                     purposes set forth in G.S. 18B-805(b)(3).
     The remaining portion of the mixed beverages surcharge required by G.S. 18B-804(b)(8)
 shall be retained by the distillery permit holder."
             SECTION 5. The Alcoholic Beverage Control Commission (Commission) shall
 develop and implement a process for allowing a holder of a distillery permit issued under
 G.S. 18B-1105 to affix a mixed beverages tax stamp to spirituous liquor sold directly to a
 restaurant or bar in accordance with G.S. 18B-1105(a)(2), as amended by Section 1 of this act.
 The Commission shall revise 14B NCAC 15A .1901, as appropriate, to implement the
 requirement set forth in this section.
             SECTION 6. This act becomes effective July 1, 2023, and applies to sales made on
 or after that date.
     Page 2                                                                         DRH40330-ML-119
Statutes affected: 
Filed: 18B-1105, 18B-804, 18B-1007
Edition 1: 18B-1105, 18B-804, 18B-1007