House committee substitute to the 1st edition makes the following changes.
Extends the effective date of the act’s changes to GS 18B-101(4a) (adding whipped cream to alcohol consumable), GS 18B-800 (prior notice of lottery), new GS 18B-1004.1 (variable pricing), and GS 18B-905 (temporary permits) by one year.
Removes the following provisions:

Section repealing GS 18B-1116(a)(4), which prohibits manufacturers, bottlers, and wholesalers of alcoholic beverages from providing draft line cleaning services to alcoholic beverage retailers unless the retailer pays fair market value for the services.
Changes to GS 18B-802, GS 18B-112, GS 153A-145.7, GS 160A-205.3, and GS 18B-1004(c) which would have allowed ABC stores to be open on Sunday with local government approval.

Section 2.
Makes the following changes to the mobile bar services permit under GS 18B-1001(12a). Expands the authorizations under the permit to allow the permittee to serve alcoholic beverages to guests at an event occurring on premises owned or possessed by the holder of the permit. Limits the persons from whom a permittee may purchase malt beverages and unfortified wine to retailers (currently, retailers or wholesalers). Limits where a permittee can purchase fortified wine and spirituous liquor from to an ABC store (currently, can also purchase from a wholesaler). Now prevents a permittee from storing alcoholic beverages under its permit on premises owned or possessed by the permit holder (currently, cannot serve alcohol on those premises). Makes clarifying changes. Prevents a permittee form selling tickets or charging individuals for entry to any event at which the permittee is providing mobile bar services.
Adds new Section 3, consisting of the following.
Modifies Section 6 of SL 1969-626, as amended, so that 10% of the net profits of the Town of Angier's Alcoholic Control Board are now allocated to recreation programs within the town (currently, paid to the library). Specifies that any undistributed funds prior to the effective date of the act will be distributed for the purpose of recreation programs in the town, instead of to the library.
Adds new Section 4, consisting of the following.
Now allows a mixed beverage permit holder who is unable to have their order filled by a local ABC board to obtain a waiver that authorizes the permit holder to obtain the product from any other ABC store in the State that is designated as a mixed beverage store. Provides for a standard waiver form. Specifies that the waiver is valid for 90 days from its date of issue. Makes clarifying and technical changes. Makes conforming change to GS 18B-404(c) to account for waiver option. Applies to orders placed by a mixed beverage permittee on or after August 1, 2026.
Adds new Section 5, consisting of the following.
Allows, in GS 18B-1114.7, a permit holder conducting a consumer tasting in an ABC store to prepare and offer for tasting mixed beverages containing the spirituous liquor offered for tasting at the ABC store so long as it is no more than .25 ounces of the liquor. Specifies that the .5 ounce per day limit on spirituous liquor samples also applies to mixed beverages.
Section 8 places the proposed changes to GS 18B-1005 that were in Section 9 into new GS 18B-1004.1 instead. Amends the conditions on temporary pricing adjustments to also allow them to be provided to a law enforcement officer with jurisdiction. Also specifies that outside advertising signs are subject to local ordinances regulating outdoor signage.
Makes the following changes to Section 10 (was, Section 11).
Expands the types of events conducted by nonprofit organizations or units of local government where no permit is required under GS 18B-1002(a)(kinds of permits) to include: (1) when the event is held on a premises that does not hold a permit under GS Chapter 18B and the wine, malt beverages, and spirituous liquor sold or served at the event is provided by either a mobile bar services, mixed beverages catering, malt beverage special event, winery special event, or spirituous liquor event permit holder in a manner  allowed under that permit. Clarifies that the permit exceptions for local governments apply when the ticketed event is conducted by a unit of local government, nonprofit organization, or political organization (was, just nonprofit organization). Makes technical and organizational changes.
Makes the following changes to Section 12 (was, Section 13).
Expands the permit holders subject to the two-beverage at a time sale limit in GS 18B-1010(a) to include those authorized to sell malt beverages, unfortified wine, fortified wine, or mixed beverages for on-premises consumption. Makes conforming change to the drink sale limit in GS 18B-1001(10) (pertaining to mixed beverage permit holders for sales of mixed beverage drinks for delivery on consumption off premises). Applies to alcoholic beverages sold on or after October 1, 2026.
Section 13 (was, Section 14).
Removes provisions deleting the exception for personal use of fortified wine and spirituous liquor without an ABC permit on another person’s noncommercial property with their consent in GS 18B-301(b). Instead modifies the exception so it applies to property that is not a permitted premises (currently, can’t be used for commercial purposes) where the alcohol is being used with the owner’s consent. Modifies the special occasions exception for a private party, private reception, or private special occasion so that other property that is not the person’s home or temporary residence can be primarily used for commercial purposes, so long as it meets the other components of the exception (i.e., that the property is under the person’s exclusive control and supervision  and is not open to the public during the event). Makes technical changes. Applies to fortified wine and spirituous liquor possessed or consumed on or after October 1, 2026.
Adds the following new Sections 14-21.
Section 14
Amends GS 18B-200 by increasing the number of associate members on the North Carolina Alcoholic Beverage Control Commission (Commission) from two to four. No longer specifies that the chair’s salary must be fixed in the Current Operations Appropriations Act, just requiring it to be fixed by the NCGA. Makes the Governor responsible for appointing the chair and two associate members. Makes one associate member, who must be a current or former holder of a retail or commercial ABC permit, appointed by the President Pro Tempore of the Senate, and one associate member who also must be a current or former holder of a retail or commercial ABC permit, appointed by the Speaker of the House. Members serve at the pleasure of the appointing entity. Makes conforming changes.
Amends GS 18B-201 to no longer prohibit a person from being employed by the Commission if they or a member of their family controls a financial interest in any commercial alcoholic beverage enterprise. Makes conforming changes.
Effective December 1, 2026.
Section 15
Amends GS 18B-104, concerning administrative penalties, to prohibit the Commission from seeking any administrative penalties under the statue unless the Commission, within three years of receiving a permittee’s alleged violation of the ABC laws from law enforcement, sends a notice to the permittee of the alleged violation or files a petition for a contested case against the permittee. Allows contested cases commenced or maintained in violation of this provision to be dismissed. Specifies that this provision does not apply to orders of suspension or revocation under the specified statutes. Makes conforming changes to GS 18B-1001.4.
Section 16
Enacts new GS 105-113.85A allowing a taxpayer a credit against the taxes under Article 2C (Alcoholic Beverage License and Excise Taxes) for: (1) a local ABC Board or distillery in an amount equal to the tax due in the period covered by the return that is attributable to the sale of spirituous liquor produced by a registered microdistillery; or (2) a wholesaler or importer in an amount equal to the tax due in the period covered by the return that is attributable to the sale of malt beverages produced by a registered small brewery. Set out registration requirements and requires the Secretary of Revenue to keep a record of all registered persons and make it available online. Allows a taxpayer to rely on the list when taking the credit, but specifies that the taxpayer forfeits the credit on product produced by a registered person for any month in which it is determined that the credit was not allowed. Makes taxpayers who avoided tax by taking a credit in violation of the statute liable for all past avoided taxes plus interest and also allows charging a penalty. Does not allow a credit on spirituous liquor, antique spirituous liquor, or malt beverages that are: (1) sold by the distillery or brewery that produced the product in any month in which the distillery or brewery was registered but did not qualify as a microdistillery or small brewery, as applicable, or (2) sold by a person other than the distillery or brewery that produced the product in any month in which the person knew the distillery or brewery was registered but did not qualify as a microdistillery or small brewery, as applicable. Amends GS 105-113.68 by defining relevant terms, including defining microdistillery as a distiller that withdraws no more than 50,000 proof gallons of spirituous liquor annually from bonded premises; if a distillery is part of a controlled group (as defined), the group must withdraw no more than 50,000 proof galls of spirituous liquor annually from bonded premises. Defines a small brewery as a brewery that produces no more than 600,000 barrels of malt beverages annually; if it is part of a controlled group, the controlled group must produce no more than 600,000 barrels of malt beverages annually.
Effective January 1, 2027, and applies to malt beverages and spirituous liquor first sold or otherwise disposed of on or after that date; however, the Secretary of Revenue may begin registering persons as a microdistillery or small brewery under GS 105-113.85A(b), as enacted by this section, on September 1, 2026.
Section 17
Amends GS 18B-1000 to define a service business as an establishment that is primarily engaged in the business of providing services to the general public that require an occupational license issued by the State. Amends GS 18B-1001 to define a service business permit as one that authorizes the permittee to furnish complimentary malt beverages and unfortified wine to customers, in conjunction with the provision of the service, for consumption on the permittee's premises at no extra charge to the customers. Allows the permittee to furnish alcoholic beverages to customers only in accordance with GS 18B-603(i). Prohibits serving more than two servings (as defined) of alcoholic beverages to any individual customer in any calendar day. Allows the permittee to purchase malt beverages and unfortified wine only from a retailer. Allows the permit to be issued to service businesses.
Amends GS 18B-603 to allow the Commission to issue service business permits to qualified persons and establishments located within a jurisdiction in which on-premises malt beverage permits or on-premises unfortified wine permits may be issued, subject to the following: (1) if on-premises malt beverage permits, but not on-premises unfortified wine permits, may be issued in the jurisdiction, the service business permittee may furnish only malt beverages to customers; (2) if on-premises unfortified wine permits, but not on-premises malt beverage permits, may be issued in the jurisdiction, the service business permittee may furnish only unfortified wine to customers; or (3) if on-premises malt beverage permits and on-premises unfortified wine permits may be issued in the jurisdiction, the service business permittee may furnish malt beverages and unfortified wine to customers. Makes conforming changes to GS 18B-300. Amend GS 18B-902 by setting the application fee for a service business permit at $50. Also requires a service business permit application to have a recycling plan. Amends GS 18B-903 to make service business permits valid indefinitely. Requires registration for the service business permit to include an annual registration and inspection fee of $50 per permit held. Makes conforming changes. Amends GS 18B-1006.1 to make service business permit holders subject to the statute’s recycling requirements.
Effective July 1, 2026.
Section 18
Amends GS 18B-600 to extend when a county may hold a mixed beverage election to include when the a city located in the county operates at least one ABC store. Adds that if a county does not operate at least one ABC store, a mixed beverages permittee may purchase liquor from an ABC store that is designated as a mixed beverage ABC store operated by any local board operating in the same county as the permittee. Effective October 1, 2024.
Section 19
Amends GS 18B-603 to specify that the Commission may issue brown-bagging permit for bars.
Section 20
Amends GS 18B-300.3 by correcting statutory cross-references.
Section 21
Amends GS 18B-1006 by exempting from the prohibition on issuing a permit for the sale of alcoholic beverages to a business on the campus or property of a public school, college, or university, any restaurants, eating establishments, food businesses, or retail businesses on the property of the Horace Williams Campus or Millennial Campus (as defined).
Adds new Section 22, consisting of the following.
Expands the purpose of GS Chapter 18B to include regulation over taxation, distribution, and sale over premixed cocktails as one of the alcoholic beverages through the three-tier regulatory system and franchise laws imposed by the chapter. Modifies mixed beverage in GS 18B-101 (definitions pertaining to GS Chapter 18B) so that it means a drink composed in whole or in part of spirituous liquor and served in a quantity less than the quantity contained in a closed package. It no longer includes premixed cocktails. Modifies terms premixed cocktail so that the its maximum amount of alcohol by volume is 9.9% (currently 13%), spirituous liquor or liquor, alcoholic beverage, bailment surcharge, and brokerage.
Clarifies that GS 18B-203 (powers and duties of the Commission) does not give the Commission authority to set prices of premixed cocktails outside of ABC stores. Nor does it limit the authority of licensed premixed cocktail wholesalers to sell and distribute premixed cocktails to the specified Native American tribes and US Armed Forces installations. Makes technical changes. Makes conforming changes to account for expanded scope of GS Chapter 18B.
Authorizes a mixed beverages permittee to purchase premixed cocktails from either a licensed wholesaler or a designated ABC store and makes conforming changes to account for expanded scope of GS Chapter 18B in GS 18B-404 (pertaining to purchase and transportation by mixed beverage permittees).
Establishes a procedure in GS 18B-503 for the sale of seized premixed cocktails by public auction unless they would likely become spoiled or lose value in the time required to arrange a public auction. Then authorizes sale to a retailer or the local ABC board, as described. Makes technical changes.
Authorizes, in GS 18B-603 (effect of elections on issuance of permits) sports clubs holding the described alcoholic beverages permits to purchase premixed cocktails from a wholesaler as described, or the nearest ABC store in the county. Makes conforming changes to account for the expanded scope of GS 18B and option for local voters to approve the sale of mixed beverages. Makes technical changes.
Removes the changes made by the first edition and makes the following changes to GS 18B-804 (alcoholic beverage pricing). Requires the retail price of premixed cocktails sold in ABC stores to be established by the Commission and to be uniform throughout the State. Lists nine required components of the uniform State price. Removes provisions exempting premixed cocktails sold to a mixed beverage permittee in a closed package from the $20 charge for the described resales. Expands the charges a local board is required to pay from its gross receipts and the distributions it is required to make under GS 18B-805 to include the same charges for premixed cocktails set forth in various sections of new GS 18B-804(e). Makes conforming changes to account for expanded scope of GS Chapter 18B.
Adds new premixed cocktail wholesaler permit fee ($300), nonresident premixed cocktail permit fee ($100), and premixed cocktail special event permit fee ($200) to the schedule of permits and fees in GS 18B-902.
Expands the types of alcoholic beverages authorized under the ACB permits listed in GS 18B-1001 as amended by Sections 2, 12, 17, 23, and 24 of the act, to include premixed cocktails. Allows for the sale of more than two premixed cocktails at a time by a mixed beverages permittee so long as they are sold for delivery or consumption off the permitee’s premises. Authorizes a mobile services bar permittee to purchase premixed cocktails either from a retailer or designated ABC store in the same county where its principal office is located. Makes conforming and technical changes.
Makes conforming changes to account for expanded scope of GS Chapter 18B in GS 18B-1001.4 (authorization of delivery service permit) and requires that any deliveries of single-serving wine drinks or mixed beverages must comply with the relevant subsections of GS 18B-1001. Makes technical changes.
Makes the following changes to GS 18B-1006 (miscellaneous permit provisions). Expands the types of beverages exempt from the bar on the sale of permitted alcoholic beverages on school campuses to include premixed cocktails at the specified events. Limits members of the described private clubs from storing more than eight liters of premixed cocktails in a locker provided by the club. Allows for the sale of premixed cocktails in recreation districts. Authorizes a distillery in a distillery estate district to conduct consumer tastings without the Commission’s approval anywhere in a distillery estate district. Makes conforming changes, including to account for expanded scope of GS Chapter 18B. Makes technical changes. Authorizes a mixed beverage permittee in GS 18B-1007 to purchase premixed cocktails for resale either from an ABC store or wholesaler and a guest room cabinet permittee to purchase premixed cocktails for resale from either an ABC store as described or a wholesaler.
Authorizes the sale of premixed cocktails under a distillery permit authorized under GS 18B-1105. Provides for the sale, delivery, and shipment of premixed cocktails to (1) wholesalers both in and out of the State and (2) local boards within the State, as specified. Exempts premixed cocktails from the State fixed prices for spirituous liquor and labeling requirements required by law. Allows permit holders to conduct consumer tastings and to sell premixed cocktails, as specified. Makes technical and conforming changes.
Retains the first edition’s changes to GS 18B-1105.1 (authorization of liquor importer/bottle permit), but now allows for premixed cocktail permit holders to sell to private or public agencies or establishments of other states or nations, as described. Makes conforming changes to account for expanded scope of GS Chapter 18B. Prevents a person from transporting more than 80 liters of premixed cocktails in GS 18B-1115 (commercial transportation), makes conforming changes to account for expanded scope of GS Chapter 18B, and otherwise retain