H.B. 870
GENERAL ASSEMBLY OF NORTH CAROLINA
Apr 25, 2023
SESSION 2023 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH40428-MLf-130A
Short Title: ABC Law Omnibus Bill. (Public)
Sponsors: Representative Pickett.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO PROHIBIT PATRONS OF CERTAIN ESTABLISHMENTS FROM BRINGING
3 MALT BEVERAGES AND UNFORTIFIED WINE ONTO THE PREMISES AND
4 CONSUMING THE MALT BEVERAGES OR UNFORTIFIED WINE UNLESS THE
5 ESTABLISHMENT HOLDS A PERMIT; TO ALLOW MIXED BEVERAGES
6 PERMITTEES TO PURCHASE SPIRITUOUS LIQUOR FROM ANY ABC STORE
7 DESIGNATED TO MAKE SALES TO MIXED BEVERAGES PERMITTEES; TO
8 ALLOW RESTAURANTS AND BARS HOLDING MIXED BEVERAGES PERMITS TO
9 SELL SPIRITUOUS LIQUOR WITH PERSONALIZED LABELING IN CLOSED
10 CONTAINERS FOR CONSUMPTION OFF THE PREMISES; TO ELIMINATE THE
11 PHYSICAL MIXED BEVERAGES TAX STAMP AND TO ENSURE COMPLIANCE
12 WITH THE CHARGE ASSESSED ON SPIRITUOUS LIQUOR SOLD TO MIXED
13 BEVERAGE PERMITTEES THROUGH RECORD KEEPING; TO ALLOW
14 ON-PREMISES ABC PERMIT HOLDERS TO CONDUCT CERTAIN SALES AND
15 ADVERTISING; TO DIRECT THE ALCOHOLIC BEVERAGE CONTROL
16 COMMISSION TO IMPLEMENT A SYSTEM FOR APPLICANTS, PERMITTEES, AND
17 LOCAL ABC BOARDS TO CONDUCT BUSINESS WITH THE COMMISSION
18 ELECTRONICALLY; TO DIRECT THE ALCOHOLIC BEVERAGE CONTROL
19 COMMISSION TO AMEND THE DEFINITION OF COOPERATIVE ADVERTISING
20 ESTABLISHED BY RULE; AND TO DIRECT THE ALCOHOLIC BEVERAGE
21 CONTROL COMMISSION TO IMPLEMENT A CENTRALIZED ELECTRONIC
22 INVENTORY MANAGEMENT SYSTEM.
23 The General Assembly of North Carolina enacts:
24
25 PART I. REQUIRE PERMIT FOR PERSONS TO BRING MALT BEVERAGES AND
26 UNFORTIFIED WINE ON THE PREMISES OF CERTAIN ESTABLISHMENTS
27 SECTION 1.(a) G.S. 18B-1001 is amended by adding a new subdivision to read:
28 "(24) Bring Your Own Beverage Permit. – A bring your own beverage permit
29 authorizes each individual patron of an establishment listed in this
30 subdivision, with the permission of the permittee, to bring malt beverages,
31 unfortified wine, or malt beverages and unfortified wine onto the premises and
32 consume the malt beverages, unfortified wine, or malt beverages and
33 unfortified wine on the premises. The permit may be issued for any of the
34 following:
35 a. Restaurants.
36 b. Eating establishments.
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 General Assembly Of North Carolina Session 2023
1 c. Food businesses.
2 d. Retail businesses.
3 e. Private clubs.
4 f. Convention centers.
5 g. Community theatres.
6 h. Breweries as authorized by subdivisions (7) and (8) of
7 G.S. 18B-1104(a).
8 i. Sports and entertainment venues.
9 j. Private bars.
10 k. The holder of a distillery permit authorized under G.S. 18B-1105."
11 SECTION 1.(b) G.S. 18B-300 is amended by adding a new subsection to read:
12 "(b1) Consumption of Malt Beverages and Unfortified Wine Brought onto Premises. – It
13 shall be unlawful for an individual patron of an establishment listed in subdivision (24) of
14 G.S. 18B-1001 to bring malt beverages, unfortified wine, or malt beverages and unfortified wine
15 onto the premises and to consume those malt beverages, unfortified wine, or malt beverages and
16 unfortified wine on the premises unless (i) the establishment holds a permit issued under
17 subdivision (1), (3), (10), or (24) of G.S. 18B-1001 and (ii) the permittee provides permission to
18 bring and consume on the premises the malt beverages, unfortified wine, or malt beverages and
19 unfortified wine."
20 SECTION 1.(c) G.S. 18B-902(d) is amended by adding a new subdivision to read:
21 "(52) Bring your own beverage permit – $500.00."
22 SECTION 1.(d) This section becomes effective July 1, 2023.
23
24 PART II. EXPAND NUMBER OF ABC STORES FROM WHICH MIXED BEVERAGES
25 PERMITTEES MAY PURCHASE SPIRITUOUS LIQUOR
26 SECTION 2.(a) G.S. 18B-600 reads as rewritten:
27 "§ 18B-600. Places eligible to hold alcoholic beverage elections.
28 …
29 (e) City Mixed Beverage Elections. – A city may hold a mixed beverage election if the
30 city has at least 500 registered voters. Provided, that if a city that qualifies for an election under
31 this subsection approves the sale of mixed beverages, a mixed beverages permittees permittee in
32 the city may purchase liquor from the any ABC store designated by the any local ABC board that
33 has been approved by the Commission for this purpose.to make sales to mixed beverages
34 permittees.
35 (e1) Small City Mixed Beverage Elections. – A city may also hold a mixed beverage
36 election if the city has at least 300 registered voters and is located in a county with at least one
37 other city that has approved the sale of mixed beverages. Provided, that if a city that qualifies for
38 an election under this subsection approves the sale of mixed beverages, a mixed beverages
39 permittees permittee in the smaller city may purchase liquor from the any ABC store designated
40 by any local ABC board in any other city that has approved the sale of mixed beverages.to make
41 sales to mixed beverages permittees.
42 This subsection shall not apply to Alamance, Avery, Burke, Caldwell, Carteret, Cleveland,
43 Henderson, Onslow, Polk, Robeson, Rowan, Rutherford, and Wilkes Counties.
44 (e2) Ski Resorts ABC Elections. – Notwithstanding any other provisions of this section,
45 any city that provides governmental services to as many as 1,000 snow skiers weekly during the
46 normal ski season from December 1 through March 15, may hold an election authorized by
47 subdivision (a)(1), (2), or (4) of this section. If the sale of mixed beverages is approved, the sales
48 of liquor shall be made by any ABC store designated by any local board designated by the State
49 ABC Commission.to make sales to mixed beverages permittees.
50 (e3) Small Town Mixed Beverage Elections. – A town may hold a mixed beverage election
51 if the town (i) has at least 200 registered voters, is located in a county bordering the Neuse River
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1 and Pamlico Sound that has not approved the sale of mixed beverages, and that county has only
2 one city that has approved the sale of mixed beverages or (ii) has at least 200 registered voters,
3 has a total area of less than 1 square mile, operates an ABC store, and is located in a county that
4 has at least three cities that have approved the sale of mixed beverages. Provided, that if a town
5 that qualifies for an election under this subsection approves the sale of mixed beverages, a mixed
6 beverages permittees permittee in the town may purchase liquor from the any ABC store
7 designated by any local ABC board in any other city that has approved the sale of mixed
8 beverages.to make sales to mixed beverages permittees.
9 (e4) Multicounty/City ABC Elections. – If a city is located in two or more counties, the
10 following provisions shall apply:
11 (1) The city may hold a malt beverage or unfortified wine election if any county
12 in which a portion of the city is located has already held such an election, the
13 vote in the last election of the particular type was against the sale of that type
14 of alcoholic beverage, and the city has a population of 500 or more.
15 (2) The city may hold a mixed beverage election if the city has at least 500
16 registered voters and a county in which a portion of the city is located operates
17 ABC stores, or a municipality in either county in which the city is located
18 operates an ABC store.
19 (3) If an election is held by a city under this subsection, all of the city voters may
20 vote in the election. If the vote is for approval, alcoholic beverages may be
21 sold on the basis of that approval and under the provisions of this Chapter. If
22 the sale of mixed beverages is approved, the a mixed beverage permittees shall
23 permittee may purchase their liquor from one or more any ABC stores located
24 within the city that have been store designated by the any local boards for
25 those purchases. board to make sales to mixed beverages permittees. The
26 remaining gross receipts shall be distributed in accordance with existing law
27 applicable to those ABC stores, except that after the applicable distributions
28 have been made pursuant to G.S. 18B-805(b), (c), and (d), the local share of
29 the mixed beverages surcharge and the guest room cabinet surcharge required
30 by G.S. 18B-804(b)(8) and (9) shall be distributed one-half to the general fund
31 of the city where the mixed beverage permittees are located and one-half to
32 the local ABC boards from whose stores liquor is purchased.
33 (e5) Small Resort Town ABC Elections. – A town may hold a mixed beverage election if
34 it:
35 (1) Was incorporated after 1990 and prior to the effective date of this subsection;
36 (2) Has at least 100 residents;
37 (3) Is located in a county that borders another state and that has two other
38 municipalities which have ABC stores; and
39 (4) At the time of the election, has corporate boundaries that border or include
40 land in three counties.
41 Provided, that if a town that qualifies for an election under this subsection approves the sale
42 of mixed beverages, a mixed beverages permittees permittee in the town may purchase liquor
43 from the any ABC store designated by any local ABC board in any other city that has approved
44 the sale of mixed beverages.to make sales to mixed beverages permittees.
45 …."
46 SECTION 2.(b) G.S. 18B-1007(a) reads as rewritten:
47 "(a) Purchases. – A mixed beverages permittee may purchase spirituous liquor for resale
48 as mixed beverages and a guest room cabinet permittee may purchase spirituous liquor for resale
49 from a guest room cabinet only at an any ABC store designated by a any local board.board to
50 make sales to mixed beverages permittees."
51
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1 PART III. ALLOW RESTAURANTS AND BARS HOLDING MIXED BEVERAGES
2 PERMITS TO SELL PRIVATE LABEL LIQUOR
3 SECTION 3.(a) G.S. 18B-1001(10) reads as rewritten:
4 "(10) Mixed Beverages Permit. – A mixed beverages permit authorizes the retail
5 sale of mixed beverages for consumption on the premises. The permit also
6 authorizes a mixed beverages permittee to obtain an antique spirituous liquor
7 permit under subdivision (20) of this section and to use for culinary purposes
8 spirituous liquor lawfully purchased for use in mixed beverages. The permit
9 also authorizes restaurants and bars holding a mixed beverages permit to sell
10 in closed containers and for consumption off the premises spirituous liquor
11 with personalized labeling in accordance with G.S. 18B-1007(f). The permit
12 may be issued for any of the following:
13 a. Restaurants.
14 b. Hotels.
15 c. Private clubs.
16 d. Convention centers.
17 e. Community theatres.
18 f. Nonprofit organizations.
19 g. Political organizations.
20 h. Sports and entertainment venues.
21 i. Private bars.
22 j. The holder of a distillery permit authorized under G.S. 18B-1105."
23 SECTION 3.(b) G.S. 18B-1007 is amended by adding a new subsection to read:
24 "(f) Resale of Spirituous Liquor with Personalized Labeling. – A restaurant or bar holding
25 a mixed beverages permit may purchase spirituous liquor with personalized labeling for resale in
26 closed containers and for consumption off premises only pursuant to the process set forth in
27 G.S. 18B-800(c1) and subject to the following requirements:
28 (1) The label shall be from the distillery who distilled the spirituous liquor.
29 (2) A restaurant or bar shall purchase the equivalent of an entire barrel of
30 spirituous liquor under the authority set forth in this subsection and shall not
31 purchase more than the equivalent of three barrels of spiritous liquor per
32 calendar year under the authority set forth in this subsection. For purposes of
33 this subdivision, the term "barrel," when used in connection with spiritous
34 liquor, is a unit of 53 liquid gallons.
35 (3) Spirituous liquor sold in a closed container under this subsection shall be sold
36 at the price set in accordance with G.S. 18B-804(b), and the restaurant or bar
37 selling the spirituous liquor shall be responsible for all applicable taxes.
38 (4) A restaurant or bar shall remove the mixed beverages tax stamp affixed to any
39 spiritous liquor it sells under the authority set forth in this subsection.
40 (5) Notwithstanding any provision of law to the contrary, sales under this
41 subsection may occur between the hours of 9:00 A.M. and 9:00 P.M. on
42 Monday through Saturday of each week, from 12:00 noon to 9:00 P.M. on
43 Sundays, and from 9:00 A.M. to 9:00 P.M. on each of the following holidays
44 that do not fall on a Sunday: New Year's Day, Fourth of July, Labor Day, and
45 Thanksgiving Day."
46 SECTION 3.(c) G.S. 18B-804(a) reads as rewritten:
47 "(a) Uniform Price of Spirituous Liquor. – The retail price of spirituous liquor sold in ABC
48 stores and stores, permitted distilleries distilleries, and restaurants and bars under
49 G.S. 18B-1007(f) shall be uniform throughout the State, unless otherwise provided by the ABC
50 law."
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1 SECTION 3.(d) This section becomes effective July 1, 2023, and applies to sales
2 made on or after that date.
3
4 PART IV. ELIMINATE PHYSICAL MIXED BEVERAGES TAX STAMP
5 SECTION 4.(a) G.S. 18B-1007, as amended by Section 2(b) and Section 3(b) of this
6 act, reads as rewritten:
7 "§ 18B-1007. Additional requirements for mixed beverages permittees.
8 (a) Purchases. – A mixed beverages permittee may purchase spirituous liquor for resale
9 as mixed beverages and a guest room cabinet permittee may purchase spirituous liquor for resale
10 from a guest room cabinet at any ABC store designated by any local board to make sales to mixed
11 beverages permittees.
12 (b) Handling Bottles. – It shall be unlawful for a mixed beverages permittee or the
13 permittee's agent or employee to do any of the following:
14 (1) Store any other spirituous liquor with liquor possessed for resale in mixed
15 beverages or from a guest room cabinet.
16 (2) Refill any spirituous liquor container having a mixed beverages tax stamp with
17 any other alcoholic beverage, or add to the contents of such a container any
18 other alcoholic beverage.
19 (3) Transfer from one container to another a mixed beverages tax stamp.
20 (4) Possess any container of spirituous liquor not bearing a mixed beverages tax
21 stamp, except for containers being brought onto the premises by the host of a
22 private function under a special occasion permit.
23 (c) Price List. – Each mixed beverages permittee shall have available for its customers
24 the printed prices of the most common or popular mixed beverages offered for sale by the
25 permittee. Violation of this subsection shall not be a criminal offense, but shall be punishable
26 under G.S. 18B-104.
27 (d) Transfer of Mixed Beverages Inventory. – When a temporary mixed beverages permit
28 has been issued to a new permittee for the c