H.B. 890
GENERAL ASSEMBLY OF NORTH CAROLINA
May 4, 2021
SESSION 2021 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH40538-ML-109B
Short Title: ABC Omnibus Legislation. (Public)
Sponsors: Representative Moffitt.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO MAKE VARIOUS CHANGES TO THE ALCOHOLIC BEVERAGE CONTROL
3 COMMISSION LAWS.
4 The General Assembly of North Carolina enacts:
5
6 PART I. ALLOW ONLINE ORDERS FROM ABC STORES
7 SECTION 1.1. G.S. 18B-800(a) reads as rewritten:
8 "(a) Spirituous Liquor. – Except as provided in Articles 10 and 11 of this Chapter,
9 spirituous liquor may be sold only in ABC stores operated by local boards. For purposes of this
10 subsection, the term "sold only in ABC stores operated by local boards" includes online orders
11 placed in accordance with subsection (c3) of this section."
12 SECTION 1.2. G.S. 18B-800 is amended by adding a new subsection to read:
13 "(c3) Online Orders. – An ABC store may accept an online order, including payment, for
14 alcoholic beverages sold in its store. An order placed online pursuant to this subsection shall be
15 picked up in person at the store by a person who is 21 years of age or older. A person shall not
16 be prosecuted for a violation of G.S. 18B-302(a)(2) for an online sale under this subsection of
17 fortified wine or spirituous liquor to a person less than 21 years old unless the person knew the
18 purchaser was less than 21 years old at the time the online order was placed."
19 SECTION 1.3. This Part becomes effective July 1, 2021, and applies to sales on or
20 after that date.
21
22 PART II. ALLOW PERSONALIZED LABEL ON SPIRITUOUS LIQUOR PURCHASE
23 SECTION 2.1. G.S. 18B-800(c1) reads as rewritten:
24 "(c1) Special Orders of Special Items. – Through the process established by rule of the
25 Commission for special orders of spirituous liquor that are on the special item list approved by
26 the Commission, ABC stores shall allow the purchase of individual bottles of spirituous liquor.
27 ABC stores may sell in store any bottles it receives from a special item case in excess of what
28 was purchased by the requesting customer. Bottles purchased pursuant to this subsection may be
29 affixed with personalized labeling that includes any other labeling requirements set by law. For
30 purposes of this subsection, the term "personalized labeling" means the inclusion of the name of
31 the purchaser on the label."
32 SECTION 2.2. G.S. 18B-1105(a)(4) reads as rewritten:
33 "(4) Sell spirituous liquor distilled at the distillery in closed containers to visitors
34 who tour the distillery for consumption off the premises. Sales under this
35 subdivision are allowed only in a county where the establishment of a county
36 or municipal ABC store has been approved pursuant to G.S. 18B-602(g) and
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1 are subject to the time and day restrictions in G.S. 18B-802. Spirituous liquor
2 sold under this subdivision shall (i) be listed as a code item for sale in the
3 State, (ii) be sold at the price set by the Commission for the code item pursuant
4 to G.S. 18B-804(b), and (iii) have affixed to its bottle any labeling
5 requirements set by law. A bottle of spirituous liquor sold under this
6 subdivision may have personalized labeling affixed to it that includes any
7 other labeling requirements set by law. For purposes of this subdivision, the
8 term "personalized labeling" means the inclusion of the name of the purchaser
9 on the label."
10 SECTION 2.3. This Part becomes effective July 1, 2021, and applies to spirituous
11 liquor sold on or after that date.
12
13 PART III. PERMIT FOR ABC STORE TASTINGS/CLARIFICATION
14 SECTION 3.1. G.S. 18B-1114.7(c) is amended by adding a new subdivision to read:
15 "(1a) The permit shall be issued in the name of the business listed on the application
16 for the permit."
17 SECTION 3.2. This Part becomes effective July 1, 2021, and applies to permits
18 issued on or after that date.
19
20 PART IV. [RESERVED]
21
22 PART V. ESTABLISH NORTH CAROLINA SPIRITUOUS LIQUOR COUNCIL
23 SECTION 5.1. Chapter 106 of the General Statutes is amended by adding a new
24 Article to read:
25 "Article 62B.
26 "Spirituous Liquor Council.
27 "§ 106-755.3. North Carolina Spirituous Liquor Council – Creation; powers and duties.
28 There is created the North Carolina Spirituous Liquor Council (Council) of the Department
29 of Agriculture and Consumer Services. The Council shall have all of the following powers and
30 duties:
31 (1) To identify and implement methods for improving North Carolina's rank as a
32 spirituous liquor-producing State.
33 (2) To assure orderly growth and development of North Carolina's spirituous
34 liquor industry.
35 (3) To achieve public awareness of the quality of North Carolina spirituous liquor.
36 (4) To coordinate the interaction of North Carolina's spirituous liquor industry
37 with other segments of the State's economy such as tourism, retail trade, and
38 horticulture.
39 (5) To conduct methods of quality assurance of North Carolina's spirituous liquor
40 industry to create a sound foundation for further growth.
41 (6) To assist in the coordination of the activities of the various State agencies and
42 other organizations contributing to the development of the spirituous liquor
43 industry.
44 (7) To receive and disburse funds.
45 (8) To enter into contracts for the purpose of developing new or improved markets
46 or marketing methods for spirituous liquor products.
47 (9) Contract for research services to improve farming practices related to the
48 growing of ingredients necessary for alcohol distillation in North Carolina.
49 (10) To enter into agreements with any local, State, or national organizations or
50 agencies engaged in education for the purpose of disseminating information
51 on spirituous liquor projects.
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1 (11) To enter into contracts with commercial entities for the purpose of developing
2 marketing, advertising, and other promotional programs designed to promote
3 the orderly growth of the North Carolina spirituous liquor industry.
4 (12) To acquire any licenses or permits necessary for performance of the duties of
5 the Council.
6 (13) To develop a plan that identifies problems and constraints of the spirituous
7 liquor industry, proposes solutions to those problems, and delineates planning
8 mechanisms for the orderly growth of the industry.
9 (14) Beginning September 1, 2022, to annually report to the chairs of the Senate
10 Appropriations Committee on Agriculture, Natural, and Economic Resources,
11 the chairs of the House of Representatives Appropriations Committee on
12 Agriculture and Natural and Economic Resources, the Joint Legislative
13 Oversight Committee on Agriculture and Natural and Economic Resources,
14 and the Fiscal Research Division on the activities of the Council, the status of
15 the spirituous liquor industry in North Carolina and the United States, progress
16 on the development and implementation of the plan required under
17 subdivision (13) of this section, and any contracts or agreements entered into
18 by the Council for research, education, or marketing.
19 "§ 106-755.4. North Carolina Spirituous Liquor Council – Composition; terms;
20 reimbursement.
21 (a) The North Carolina Spirituous Liquor Council (Council) shall consist of 10 members
22 who shall be appointed by the Commissioner of Agriculture to serve two-year terms. The
23 members appointed shall be chosen from among individuals who have education or experience
24 in the spirituous liquor industry or in the field of tourism. No member of the Council may serve
25 for more than two consecutive terms. Initial terms shall commence September 1, 2021.
26 (b) The Council shall meet at least twice each calendar year, during which time the
27 Council shall discuss issues related to the Council's powers and duties, including ways in which
28 to promote and advertise North Carolina distilleries and ways in which to improve, use, and
29 distribute State maps showing distillery locations. After each meeting, the Council shall report
30 to the Commissioner of Agriculture with its recommendations. Notwithstanding any other
31 provision of law, Council members shall receive no salary, per diem, subsistence, travel
32 reimbursement, or other stipend or reimbursement as a result of serving on the Council.
33 (c) The Council shall elect from its membership a chair and vice-chair. Vacancies
34 resulting from the resignation of a member or otherwise shall be filled in the same manner in
35 which the original appointment was made, and the term shall be for the balance of the unexpired
36 term. A majority of the members of the Council shall constitute a quorum for the transaction of
37 business. The affirmative vote of a majority of the members present at meetings of the Council
38 shall be necessary for action to be taken by the Council.
39 (d) The Commissioner of Agriculture shall provide professional and clerical staff and
40 other services and supplies, including meeting space, as needed for the Council to carry out its
41 duties."
42 SECTION 5.2. Notwithstanding any provision of law to the contrary, the initial
43 appointments to the North Carolina Spirituous Liquor Council established under G.S. 106-755.3,
44 as enacted by Section 5.1 of this act, shall begin on September 1, 2021, and five members shall
45 be appointed for a term to end September 1, 2022, and five members shall be appointed for a
46 term to end September 1, 2023. Thereafter, members shall be appointed for two-year terms in
47 accordance with G.S. 106-755.4, as enacted by Section 5.1 of this act.
48 SECTION 5.3. Section 5.1 of this act becomes effective September 1, 2021.
49
50 PART VI. WINERY AND DISTILLERY LAW REVISIONS
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1 SECTION 6.1.(a) G.S. 18B-1105(a)(4), as amended by Section 2.2 of this act, reads
2 as rewritten:
3 "(4) Sell spirituous liquor distilled at the distillery in closed containers to visitors
4 who tour the distillery for consumption off the premises. Sales under this
5 subdivision are allowed only in a county where the establishment of a county
6 or municipal ABC store has been approved pursuant to G.S. 18B-602(g) and
7 are subject to the time and day restrictions in G.S. 18B-802. G.S. 18B-1004.
8 Spirituous liquor sold under this subdivision shall (i) be listed as a code item
9 for sale in the State, (ii) be sold at the price set by the Commission for the
10 code item pursuant to G.S. 18B-804(b), and (iii) have affixed to its bottle any
11 labeling requirements set by law. A bottle of spirituous liquor sold under this
12 subdivision may have personalized labeling affixed to it that includes any
13 other labeling requirements set by law. For purposes of this subdivision, the
14 term "personalized labeling" means the inclusion of the name of the purchaser
15 on the label."
16 SECTION 6.1.(b) This section becomes effective July 1, 2021, and applies to sales
17 on or after that date.
18 SECTION 6.2.(a) G.S. 18B-1114.7 reads as rewritten:
19 "§ 18B-1114.7. Authorization of spirituous liquor special event permit.
20 (a) Authorization. – The holder of a supplier representative permit, brokerage
21 representative permit, or distillery permit issued under G.S. 18B-1105 may obtain a spirituous
22 liquor special event permit allowing the permittee to give free tastings of its spirituous liquors at
23 ABC stores where the local board has approved the tasting, trade shows, conventions, shopping
24 malls, street festivals, holiday festivals, agricultural festivals, farmers markets, balloon races,
25 local fund-raisers, and other similar events approved by the Commission. Additionally, the holder
26 of a supplier representative permit, brokerage representative permit, or distillery permit issued
27 under G.S. 18B-1105 may obtain a spirituous liquor special event permit allowing the permittee
28 to sell mixed beverages containing its spirituous liquor or sell its spirituous liquor in closed
29 containers at trade shows, conventions, shopping malls, street festivals, holiday festivals,
30 agricultural festivals, farmers markets, balloon races, local fund-raisers, and other similar events
31 approved by the Commission.
32 (b) General Limitations. – Except as otherwise provided in subsection (c) of this section,
33 any consumer tasting is subject to the following limitations:
34 (1) The permit holder or the permit holder's authorized agent shall conduct the
35 consumer tasting event and the permit holder shall be solely responsible for
36 any violations of this Chapter occurring in connection with the consumer
37 tasting.event.
38 (2) The spirituous liquor shall be poured only by either (i) the permit holder
39 conducting the consumer tasting or (ii) an employee or authorized agent of the
40 permit holder conducting the consumer tasting who is at least 21 years of age.
41 (3) Each consumer shall be limited to one tasting sample containing 0.25 ounces
42 of any product made available for sampling at the consumer tasting, and the
43 total amount of the tasting samples offered to and consumed by each consumer
44 shall not exceed 1.0 ounce of spirituous liquor in any calendar day. The
45 limitation set forth in this subdivision does not apply to the sale of spirituous
46 liquor in closed containers or mixed beverages.
47 (4) The permit holder shall not sell its spirituous liquor to, offer tasting samples
48 to, or allow consumption of tasting samples by, any consumer who is visibly
49 intoxicated.
50 (5) The permit holder shall not sell its spirituous liquor to, offer tasting samples
51 to, or allow consumption of tasting samples by, any consumer under the legal
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1 age for consuming spirituous liquor. The person pouring the spirituous liquor
2 shall be responsible for verifying the age of the consumer being served by
3 checking the identification of the consumer.
4 (6) The permit holder shall not charge a consumer for any tasting sample. The
5 limitation in this subdivision does not apply to the sale of spirituous liquor in
6 closed containers or mixed beverages.
7 (7) Repealed by Session Laws 2019-182, s. 6(a), effective September 1, 2019.
8 (8) A consumer tasting shall not be allowed unless the venue is located in a
9 jurisdiction that has approved the sale of mixed beverages.
10 (9) The permit holder may provide point-of-sale advertising materials and
11 advertising specialties and may sell branded merchandise such as glassware,
12 cups, signs, t-shirts, hats, and other apparel to consumers at the consumer
13 tasting.
14 (10) The permit holder shall maintain for a period of at least one year a record of
15 each consumer tasting conducted. The record shall include the date of the
16 consumer tasting, the time of the consumer tasting,