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H 921
North Carolina House•Introduced
Summary
H 921, “ABC & Gaming Omnibus Bill”, was introduced in the House on Apr 10, 2025 by Rep. Ray Pickett (R) with 3 co-sponsors. It was referred to Finance, and last saw action on May 19, 2026: Re-ref Com On Finance.
Record
Text
H 921 has 3 co-sponsors.
h921/amended.txtGENERAL ASSEMBLY OF NORTH CAROLINASESSION 2025H 2HOUSE BILL 921Committee Substitute Favorable 5/19/26Short Title: ABC & Gaming Omnibus Bill. (Public)Sponsors:Referred to:April 14, 20251A BILL TO BE ENTITLED2 AN ACT TO MAKE VARIOUS CHANGES TO THE ALCOHOL LAWS OF THIS STATE,3 TO REVISE THE LAW GOVERNING GAME NIGHTS, AND TO REMOVE THE4 LIMITATIONS ON RAFFLES FOR 50/50 RAFFLES CONDUCTED BY NONPROFIT5 ORGANIZATIONS OR GOVERNMENT ENTITIES.6 The General Assembly of North Carolina enacts:78 REVISE LAW GOVERNING DISPLAY OF SPIRITUOUS LIQUOR DISTILLED OR9 PRODUCED IN NORTH CAROLINA10SECTION 1. G.S. 18B-800(e) reads as rewritten:11 "(e) Each ABC store shall display spirits which are distilled or produced in North Carolina12 in an area dedicated solely to North Carolina products.products or otherwise in the store so long13 as the product is identified as a North Carolina product by a price tag or shelf tag."1415 MODIFY MOBILE BAR SERVICES PERMIT16SECTION 2. G.S. 18B-1001(12a) reads as rewritten:17"(12a) Mobile Bar Services Permit. – A mobile bar services permit may be issued to18a business that provides bartending services for events. The permit authorizes19the permittee to (i) bring malt beverages, unfortified wine, fortified wine, and20spirituous liquor onto the premises of a business that is not an ABC permittee21and to serve the alcoholic beverages to guests at the event. event and (ii) serve22alcoholic beverages to guests at an event occurring on premises owned or23possessed by the holder of the permit. The permittee may purchase malt24beverages and unfortified wine from either a retailer or a wholesaler. only25from a retailer. The permittee may purchase fortified wine and spirituous26liquor only from either an ABC store or a wholesaler. The an ABC store. If27the permittee serves spirituous liquor, it shall purchase only be spirituous28liquor purchased from an ABC store that is designated as a mixed beverage29ABC store operated by any local board operating in the same county where30the permittee's principal office is located. The permittee may not store and31serve alcoholic beverages pursuant to a mobile bar services permit on the32premises of any location owned or possessed by the permittee. The permittee33shall notify the Commission, in writing, of the location of any event where the34permittee will serve alcoholic beverages not less than one week before the35event and event. If an event takes place on premises not owned or possessed36by the permittee, the permittee shall have the permission of the owner or*H921-v-2*General Assembly Of North Carolina Session 20251possessor of the property on which the event is to be held. Any person serving2alcoholic beverages at the event shall be at least 21 years of age. Alcoholic If3the event takes place on premises not owned or possessed by the permittee,4alcoholic beverages may be transported by the mobile bar services permit5holder to the premises of the event no earlier than 8:00 A.M. At A.M. on the6day of the event, and, at the conclusion of the event, all alcoholic beverages7must be removed from the premises no later than 12:00 noon of the following8day. A limited special occasion permit shall not be required for an event at9which alcoholic beverages are exclusively provided by the holder of a mobile10bar services permit. The holder of a mobile bar services permit may bring11alcoholic beverages onto the premises and serve the alcoholic beverages at an12event regardless of whether there is a charge or fee for guests to attend the13event. This permit does not allow the retail sale of individual alcoholic14beverages to guests at an event. A permittee shall not sell tickets or charge15individuals for entry to any event at which the permittee is providing mobile16bar services."1718 TOWN OF ANGIER ABC BOARD DISTRIBUTIONS19SECTION 3.(a) Section 6 of Chapter 626, Session Laws of 1969, as amended by20 Chapter 144, Session Laws of 1971, reads as rewritten:21 "Sec. 6. The net profits, as determined by quarterly audit, shall be distributed and used as22 follows:23 1. Ten per cent (10%) of the net profit shall be paid to the Angier Community24 Library.allocated to recreation programs within the town limits of the Town of Angier.25 2. Ten per cent (10%) of the net profit may be used by the town Alcoholic Control26 Board, in its discretion, for educational programs as to the effect of the use of alcoholic beverages27 and for the rehabilitation of alcoholics. Whenever a person becomes an inebriate from the use of28 alcoholic beverages and has been committed by the Clerk of Court of Harnett County, as provided29 in G.S. 35-2, and such person is indigent so that expenses of his care and cure shall constitute a30 valid charge against the county, as provided in G.S. 35-2, the town Alcoholic Control Board shall31 pay to the county such charges; provided, that the town Alcoholic Control Board shall not be32 required to pay any such charges except where it has agreed with the Clerk of Superior Court to33 pay such charges prior to the person's commitment. The town Alcoholic Control Board is34 authorized to participate in and to make contributions to public and private organizations which35 have rehabilitation programs for alcoholics, when the organization and its programs have been36 approved by the board. Nothing herein shall be construed as limiting the Alcoholic Control37 Board's discretion in establishing its educational and rehabilitation program and expenditures38 therefor within the ten per cent (10%) net profits herein allocated.39 3. The remainder of the net profits shall be allocated to the general fund of the town of40 Angier. The governing body of the town is hereby authorized to appropriate such funds for any41 proper governmental purpose. Out of the funds allocated to it, the governing body of the town is42 authorized, at its discretion, to expend up to twenty-five per cent (25%) of such funds for43 recreational programs in the town."44SECTION 3.(b) Any undistributed funds accrued by the town Alcoholic Control45 Board prior to the effective date of this act for distribution to the Angier Community Library46 shall be distributed for the purpose of recreation programs within the town limits of the Town of47 Angier.4849 ALLOW MIXED BEVERAGE PERMITTEES TO PURCHASE SPIRITUOUS LIQUOR50 FROM ANY DESIGNATED ABC STORE IN THE STATE IF THE PERMITTEE'S51 LOCAL BOARD CANNOT FULFILL AN ORDERPage 2 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251SECTION 4.(a) G.S. 18B-800(c2) reads as rewritten:2 "(c2) Orders of Eligible Distillery Products by Mixed Beverages Permittees. – A local3 board shall fulfill an order by a mixed beverages permittee for individual bottles or cases of4 spirituous liquor produced by an eligible a distillery that are listed as a regular code item for sale5 in the State. If a local board cannot fulfill an order of a mixed beverages permittee for individual6 bottles or cases of spirituous liquor produced by an eligible a distillery that are listed as a regular7 code item for sale in the State because the product ordered is not in the local board's stock8 inventory or the order cannot otherwise be fulfilled within the time period requested by the9 permittee, the either of the following shall occur:10(1) The permittee may request to have an eligible distillery that produces the11ordered product ship the product directly to the local board. The local board12shall notify the Commission within 48 hours of the request for the order and13request authorization for direct shipment. The Commission shall then14determine if the eligible distillery desires to directly ship the ordered product15directly to the local board, and if so so, the Commission shall authorize the16eligible distillery to ship the spirituous liquor ordered to the local board for17the fulfillment of the mixed beverages permittee's order. Merchandise18authorized to be shipped by direct shipment under this subsection subdivision19shall be consigned by the State ABC warehouse to the distiller's account in20care of the local board. The local board shall acknowledge receipt of the21merchandise on the shipping documents and forward them to the State ABC22warehouse for processing through the accounting system as though the23merchandise were shipped from the State ABC warehouse. As used in this24subsection, subdivision, an "eligible distillery" is a distillery (i) that sells, to25consumers at the distillery, to exporters, to local boards, and to private or26public agencies or establishments of other states or nations, fewer than 10,00027proof gallons of in-house brand spirituous liquors distilled or produced and28manufactured by it at the permit holder's distillery per year, and (ii) that is29either the holder of a distillery permit pursuant to G.S. 18B-1105 or is a30business located outside the State that is licensed or permitted to manufacture31spirituous liquor in the jurisdiction where the business is located and whose32products are lawfully sold in this State.33(2) If the permittee does not request direct shipment pursuant to subdivision (1)34of this subsection, the local board shall provide a waiver to be obtained by the35permittee in person at the ABC store with the portion of the permittee's order36that the local board was able to fulfill, if any. The waiver shall authorize the37permittee to purchase the product from any other ABC store in the State that38is designated as a mixed beverage ABC store pursuant to G.S. 18B-404(c).39The Commission shall create a standard waiver form to include the name of40the permittee and the permittee's establishment, the permit number of the41permitted establishment, the name and code item of the ordered product, the42date on which the local board was unable to fulfill the order, and the signature43of a representative of the local board that could not fulfill the order or the44manager of the ABC store that provided the waiver form. The waiver shall be45valid for 90 calendar days from the date of issuance. The permittee may46purchase the ordered product as provided on the waiver at any other ABC47store in the State that is designated as a mixed beverage ABC store pursuant48to G.S. 18B-404(c) upon presentation and relinquishment of the waiver at the49ABC store."50SECTION 4.(b) G.S. 18B-404(c) reads as rewritten:House Bill 921-Second Edition Page 3General Assembly Of North Carolina Session 20251 "(c) Designated Store. – A Except as provided in G.S. 18B-800(c2)(2), a mixed beverage2 permittee may purchase spirituous liquor from an ABC store that is designated as a mixed3 beverage ABC store operated by any local board operating in the same county as the permittee."4SECTION 4.(c) This section becomes effective August 1, 2026, and applies to orders5 placed by a mixed beverage permittee on or after that date.67 ALLOW CONSUMER TASTINGS OF MIXED BEVERAGES AT ABC STORES8 UNDER A SPIRITUOUS LIQUOR SPECIAL EVENT PERMIT9SECTION 5. G.S. 18B-1114.7(c) reads as rewritten:10 "(c) Additional Limitations on Tastings in ABC Stores. – Consumer tastings conducted in11 an ABC store shall have the following additional limitations:12…13(4) Notwithstanding subdivision (3) of subsection (b) of this section, the total14amount of the tasting samples offered to and consumed by each consumer at15a consumer tasting event shall not exceed one-half ounce of spirituous liquor16in any calendar day.day, including any spirituous liquor in mixed beverages17offered for consumer tasting pursuant to subdivision (4a) of this subsection.18(4a) The permit holder conducting the event may prepare and offer for tasting19mixed beverages containing the spirituous liquor offered for tasting at the20ABC store. A mixed beverage offered for tasting pursuant to this subdivision21shall contain no more than 0.25 ounces of spirituous liquor.22…."2324 INCLUDE WHIPPED CREAM IN THE DEFINITION OF ALCOHOL CONSUMABLE25SECTION 6.(a) G.S. 18B-101(4a) reads as rewritten:26"(4a) "Alcohol consumable" means any manufactured and packaged ice cream,27whipped cream, ice pop, gum-based, or gelatin-based food product containing28at least one-half of one percent (0.5%) alcohol by volume."29SECTION 6.(b) This section becomes effective December 1, 2026, and applies to30 offenses committed on or after that date.3132 PROVIDE MIXED BEVERAGES PERMITTEES WITH PRIOR NOTICE OF33 APPORTIONED PRODUCT LOTTERY34SECTION 7.(a) G.S. 18B-800 is amended by adding a new subsection to read:35 "(c6) Prior Notice of Lottery. – At least 30 days prior to the date it plans to conduct a lottery36 or other random drawing to sell apportioned products to mixed beverage permittee customers of37 an ABC store, the local board conducting the lottery or other random drawing shall provide each38 mixed beverage permittee with written notice of the lottery or other random drawing by email or39 first-class mail. For purposes of this subsection, the term "apportioned products" means40 containers of spirituous liquor that are made available to local boards only by random drawings41 conducted by the Commission."42SECTION 7.(b) This section becomes effective July 1, 2026, and applies to lotteries43 or other random drawings to sell apportioned products on or after that date.4445 AUTHORIZE TEMPORARY AND VARIABLE PRICING PROMOTIONS46SECTION 8.(a) Article 10 of Chapter 18B of the General Statutes is amended by47 adding a new section to read:48 "§ 18B-1004.1. Variable pricing.49 Notwithstanding any provision of this Chapter to the contrary, an establishment holding an50 on-premises malt beverage permit, on-premises unfortified wine permit, on-premises fortified51 wine permit, mixed beverages permit, or any combination thereof may offer temporary pricingPage 4 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251 adjustments on alcoholic beverages sold by the establishment subject to all of the following2 conditions:3(1) The price adjustment shall be applicable for a specified and limited duration4of time within a single business day.5(2) All pricing adjustments shall be publicly posted within the licensed premises6and shall be made available to the Commission or a law enforcement officer7with jurisdiction upon request.8(3) Pricing adjustments shall comply with all applicable State and federal laws,9rules, and regulations concerning the responsible service of alcohol.10(4) Advertising of the price and type of alcoholic beverages is allowed through11either or both of the following:12a. On outside signage located on the permittee's premises, subject to any13applicable local ordinances regulating outdoor signage.14b. Via newspapers, radio, television, and other mass media."15SECTION 8.(b) This section becomes effective October 1, 2026, and applies to16 alcoholic beverages sold on or after that date.1718 CLARIFY PERMISSION TO TAKE MIXED BEVERAGES ONTO PERMITTED19 PREMISES IN A SOCIAL DISTRICT20SECTION 9. G.S. 18B-300.1(f) reads as rewritten:21 "(f) Limitations on Open Containers. – Except where otherwise allowed by local22 ordinance, the possession and consumption of an open container of an alcoholic beverage in a23 social district is subject to all of the following requirements:24…25(6) Notwithstanding G.S. 18B-300 and G.S. 18B-301, a permittee or26non-permittee business may allow a customer to possess and consume on the27business's premises alcoholic beverages purchased from a permittee in the28social district. A permittee business that is not permitted to sell mixed29beverages may allow a customer to possess and consume on the business's30premises mixed beverages purchased from a mixed beverages permittee in the31social district."3233 CLARIFY WHEN SPECIAL ONE-TIME PERMITS ARE REQUIRED FOR34 NONPROFIT ORGANIZATIONS35SECTION 10. G.S. 18B-1002(a) reads as rewritten:36 "(a) Kinds of Permits. – In addition to the other permits authorized by this Chapter, the37 Commission may issue permits for the following activities:38…39(2) A permit may be issued to a nonprofit organization to allow the retail sale of40malt beverages, unfortified wine, fortified wine, or mixed beverages, or to41allow brown-bagging, at a single fund-raising event of that organization. A42permit for this purpose shall not be issued for the sale of any kind of alcoholic43beverage in a jurisdiction where the sale of that alcoholic beverage is not44lawful. A permit is not required under this subdivision for an event conducted45by a nonprofit organization that meets any of the following:46a. The event is held on premises permitted under G.S. 18B-1001(1),4718B-1001(2), 18B-1001(3), 18B-1001(4), 18B-1001(5), 18B-1001(6),48or 18B-1001(10) and the wine, malt beverages, and spirituous liquor49sold at the event are sold by the retail permittee from the retail50permittee's inventory.House Bill 921-Second Edition Page 5General Assembly Of North Carolina Session 20251b. The event is held on a premises that does not hold a permit under this2Chapter and the wine, malt beverages, and spirituous liquor sold or3served at the event is provided by one of the following in a manner4allowed under that permit:51. A mobile bar services permittee pursuant to6G.S. 18B-1001(12a).72. A mixed beverage catering permittee pursuant to8G.S. 18B-1001(12).93. A malt beverage special event permittee pursuant to10G.S. 18B-1114.5.114. A winery special event permittee pursuant to G.S. 18B-1114.1.125. A spirituous liquor special event permittee pursuant to13G.S. 18B-1114.7.14…15(5) A permit may be issued to a unit of local government, or to a nonprofit16organization or a political organization to serve wine, malt beverages, and17spirituous liquor at a ticketed event held to allow the unit of local government18or organization to raise funds. A permit is not required under this subdivision19for a ticketed event conducted by a unit of local government, a nonprofit20organization, or a political organization that meets any of the following:21a. The event is held on premises permitted under G.S. 18B-1001(1),2218B-1001(2), 18B-1001(3), 18B-1001(4), 18B-1001(5), 18B-1001(6),23or 18B-1001(10) and the wine, malt beverages, and spirituous liquor24sold at the event are sold by the retail permittee from the retail25permittee's inventory.26b. The event is held on a premises that does not hold a permit under this27Chapter and the wine, malt beverages, and spirituous liquor sold or28served at the event is provided by one of the following in a manner29allowed under that permit:301. A mobile bar services permittee pursuant to31G.S. 18B-1001(12a).322. A mixed beverage catering permittee pursuant to33G.S. 18B-1001(12).343. A malt beverage special event permittee pursuant to35G.S. 18B-1114.5.364. A winery special event permittee pursuant to G.S. 18B-1114.1.375. A spirituous liquor special event permittee pursuant to38G.S. 18B-1114.7.39For purposes of this subdivision "nonprofit organization" means an40organization that is exempt from taxation under Section 501(c)(3), 501(c)(4),41501(c)(6), 501(c)(8), 501(c)(10), 501(c)(19), or 501(d) of the Internal42Revenue Code or is exempt under similar provisions of the General Statutes43as a bona fide nonprofit charitable, civic, religious, fraternal, patriotic, or44veterans' organization or as a nonprofit volunteer fire department, or as a45nonprofit volunteer rescue squad or a bona fide homeowners' or property46owners' association. For purposes of this subdivision "political organization"47means an organization covered by the provisions of G.S. 163-96(a)(1) or (2)48or a campaign organization established by or for a person who is a candidate49who has filed a notice of candidacy, paid the filing fees or filed the required50petition, and been certified as a candidate. The issuance of this permit shall51also allow the use for culinary purposes of spirituous liquor lawfullyPage 6 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251purchased for use in mixed beverages. The issuance of this permit shall also2allow a nonprofit organization to offer alcoholic beverages in the3manufacturer's original closed container as a prize in a raffle or sell alcoholic4beverages in the manufacturer's original closed container at auction at the5ticketed event to allow the nonprofit organization to raise funds.6…."78 REVISE REQUIREMENTS FOR RECEIVING A TEMPORARY PERMIT9SECTION 11.(a) G.S. 18B-905 reads as rewritten:10 "§ 18B-905. Temporary permits.11 When an application has been received in proper form, with the required application fee, the12 Commission may issue a temporary permit for any of the activities for which permits are13 authorized under G.S. 18B-1001 and 18B-1100. If the person has applied to the applicable local14 government for the Inspection/Zoning Compliance and Local Government Opinion forms15 required for the application but has not received approvals or denials from the local government,16 the applicant may submit a sworn affidavit with the application stating that the person has applied17 to the local government for the Inspection/Zoning Compliance and Local Government Opinion18 approvals in lieu of those approvals. The person shall send the local government approvals or19 denials to the Commission within three business days of receiving the approvals or denials. A20 temporary permit may be revoked summarily by the Commission without complying with the21 provisions of Chapter 150B. Revocation of a temporary permit or withdrawal by the Commission22 of a pending application by a permittee possessing a temporary permit shall be effective upon23 service of the notice of revocation or withdrawal upon the permittee at either the permittee's24 residence or the address given for the business in the permit application or upon the expiration25 of five business days after the notice of the revocation or withdrawal has been mailed to the26 permittee at either the permittee's residence or the address given for the business in the permit27 application. No further notice shall be required."28SECTION 11.(b) This section becomes effective October 1, 2026, and applies to29 applications received on or after that date.3031 REVISE LAW REGULATING THE SALE AND DELIVERY OF MORE THAN ONE32 DRINK AT A TIME TO A SINGLE PATRON33SECTION 12.(a) G.S. 18B-1010(a) reads as rewritten:34 "(a) Except as otherwise provided in this section, the The holder of an on-premises malt35 beverage permit, on-premises unfortified wine permit, on-premises fortified wine permit, or36 mixed beverages permit issued under G.S. 18B-1001 permit, or a permittee otherwise authorized37 to sell malt beverages, unfortified wine, fortified wine, or mixed beverages for on-premises38 consumption, may sell and deliver not more than two alcoholic beverage drinks at one time to a39 single patron with the following limitations:patron.40(1) Not more than two alcoholic beverage drinks at one time if the alcoholic41beverage drinks are any of the following:42a. A malt beverage.43b. Unfortified wine.44c. Fortified wine.45(2) Not more than one alcoholic beverage at one time if an alcoholic beverage46drink is a mixed beverage or contains spirituous liquor."47SECTION 12.(b) G.S. 18B-1001(10) reads as rewritten:48"(10) Mixed Beverages Permit. – A mixed beverages permit authorizes the retail49sale of mixed beverages for consumption on the premises. The permit also50authorizes a mixed beverages permittee to obtain an antique spirituous liquor51permit under subdivision (20) of this section and to use for culinary purposesHouse Bill 921-Second Edition Page 7General Assembly Of North Carolina Session 20251spirituous liquor lawfully purchased for use in mixed beverages. The permit2may be issued for any of the following:3a. Restaurants.4b. Hotels.5c. Private clubs.6d. Convention centers.7e. Community theatres.8f. Nonprofit organizations.9g. Political organizations.10h. Sports and entertainment venues.11i. Bars.12j. The holder of a distillery permit authorized under G.S. 18B-1105.13k. Breweries.14l. Wineries.15Additionally, a mixed beverages permit authorizes a permittee that is a16restaurant, hotel, private club, bar, brewery, winery, or the holder of a17distillery permit to sell at retail mixed beverages for consumption off the18premises, including delivery by the permittee or a delivery service permittee.19A mixed beverage sold for consumption off the premises must be sold with20food and shall be (i) a premixed cocktail in the manufacturer's original closed21container, or (ii) packaged in a container with a secure lid or cap, and in a22manner designed to prevent consumption without removal of the lid or cap.23The container shall be no greater than 24 fluid ounces. In accordance with24G.S. 20-138.7, the transportation of a mixed beverage in a motor vehicle shall25not be unlawful if the container is an unopened manufacturer's original26container or is transported in a locked container, in the trunk, or in the area27behind the last upright seat in a motor vehicle not equipped with a trunk.28Notwithstanding G.S. 18B-1010, the sale of more than one mixed beverage29drink two mixed beverage drinks at one time shall not be unlawful if the mixed30beverage drinks are sold for delivery or consumption off the permittee's31premises. No mixed beverage ordered for off-premises consumption shall be32provided to any person other than the purchaser of the mixed beverage, except33that in the case of delivery, the delivery service permittee through its34employees or agents may provide the mixed beverage to a person other than35the purchaser if the permittee or the permittee's employees or agents verify36that the person is over 21 years of age using age verification software requiring37the recipient to provide a form of photographic identification authorized in38G.S. 18B-302(d)(1)."39SECTION 12.(c) This section becomes effective October 1, 2026, and applies to40 alcoholic beverages sold on or after that date.4142 REVISE LAW GOVERNING POSSESSION AND CONSUMPTION OF FORTIFIED43 WINE AND SPIRITUOUS LIQUOR WITHOUT AN ABC PERMIT44SECTION 13.(a) G.S. 18B-301 reads as rewritten:45 "§ 18B-301. Possession and consumption of fortified wine and spirituous liquor.46 (a) Possession at Home. – It shall be lawful, without an ABC permit, for any person at47 least 21 years old to possess for lawful purposes any amount of fortified wine and spirituous48 liquor at his the person's home or a temporary residence, such as a hotel room.49 (b) Possession on Other Property. – It shall be lawful, without an ABC permit, for a50 person to possess for his or her personal use and the use of his or her guests not more than eightPage 8 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251 liters of fortified wine or spirituous liquor, or eight liters of the two combined, at the following2 places:3(1) The residence of any other person with that person's consent;consent.4(2) Any other property not primarily used for commercial purposes and that is not5a permitted premises and is not open to the public at the time the alcoholic6beverage is possessed, if the owner or other person in charge of the property7consents to that possession and consumption;consumption.8(3) An establishment with a brown-bagging permit as defined in9G.S. 18B-1001(7).10 (b1) Possession in a Social District or Common Area. – It shall be lawful, without an ABC11 permit, for a person to possess an open container of fortified wine or spirituous liquor in a social12 district or a designated consumption area under a common area entertainment permit in13 compliance with the provisions of G.S. 18B-300.1 or G.S. 18B-1001.5, respectively.14 (c) Special Occasions. – It shall be lawful for a person to possess, without a permit and15 not for sale, any amount of fortified wine or spirituous liquor for a private party, private reception,16 or private special occasion, at any of the following places:17(1) His The person's home or a temporary residence, such as a hotel room;room.18(2) Any other property not primarily used for commercial purposes, which is19under his the person's exclusive control and supervision, and which is not open20to the public during the event;event.21(3) The licensed premises of any business for which the Commission has issued22a special occasions permit under G.S. 18B-1001(8), if he the person is the host23of that private function and has the permission of the permittee.24 (d) Consumption. – It shall be lawful for a person to consume fortified wine and25 spirituous liquor in any place where it is lawful for him the person to possess those alcoholic26 beverages under subsections (a) through (c).27 …."28SECTION 13.(b) This section becomes effective October 1, 2026, and applies to29 fortified wine and spirituous liquor possessed and consumed on or after that date.3031 ADD TWO MEMBERS TO THE ABC COMMISSION32SECTION 14.(a) G.S. 18B-200 reads as rewritten:33 "§ 18B-200. North Carolina Alcoholic Beverage Control Commission.34 (a) Creation of Commission; compensation. – The North Carolina Alcoholic Beverage35 Control Commission is created to consist of a chairman chair and two four associate members.36 The Commission shall be administratively located within the Department of Public Safety but37 shall exercise its powers independently of the Secretary of Public Safety. The chairman shall38 devote his full time to his official duties and receive a salary fixed by the General Assembly in39 the Current Operations Appropriations Act. The chair of the Commission shall be employed40 full-time and shall receive a salary fixed by the General Assembly. The associate members shall41 be compensated for per diem, subsistence and travel as provided in Chapter 138 of the General42 Statutes.43 (b) Appointment of Members. – Members The members of the Commission shall be44 appointed as follows:45(1) The chair of the Commission Commission, who shall be appointed by the46Governor to serve at the pleasure of the Governor.47(2) Two associate members, who shall be appointed by the Governor to serve at48his pleasure.the pleasure of the Governor.49(3) One associate member, who shall be a current or former holder of a retail or50commercial ABC permit, who shall be appointed by the President Pro51Tempore of the Senate to serve at the pleasure of the President Pro Tempore.House Bill 921-Second Edition Page 9General Assembly Of North Carolina Session 20251(4) One associate member, who shall be a current or former holder of a retail or2commercial ABC permit, who shall be appointed by the Speaker of the House3of Representatives to serve at the pleasure of the Speaker.4 (c) Vacancy. – The Governor appointing authority shall fill any vacancy on the5 Commission by appointing a successor to serve at the Governor's pleasure. the pleasure of the6 appointing authority. If the chairman's chair's seat becomes vacant, the Governor may designate7 either the new member or an existing member of the Commission as the chairman.chair.8 (d) Employees. – The Commission may authorize the chairman chair to employ,9 discharge, and otherwise supervise subordinate personnel of the Commission. The Commission10 shall appoint at least one employee to make investigations, hold hearings requested under11 G.S. 18B-1205, and represent the Commission in contested case hearings or perform any other12 duties authorized by Chapter 150B."13SECTION 14.(b) G.S. 18B-201(a) reads as rewritten:14 "(a) Financial Interests Restricted. – No person shall be appointed to or employed by the15 Commission, a local board, board or the ALE Division if that person or a member of that person's16 family related to that person by blood or marriage to the first degree has or controls, directly or17 indirectly, a financial interest in any commercial alcoholic beverage enterprise, including any18 business required to have an ABC permit. The Commission may exempt from this provision any19 person, other than a Commission member, person when the financial interest in question is so20 insignificant or remote that it is unlikely to affect the person's official actions in any way.21 Exemptions may be granted only to individuals, not to groups or classes of people, and each22 exemption shall be in writing, be available for public inspection, and contain a statement of the23 financial interest in question."24SECTION 14.(c) This section becomes effective December 1, 2026.2526 THREE-YEAR STATUTE OF LIMITATIONS FOR ABC VIOLATIONS27SECTION 15.(a) G.S. 18B-104 reads as rewritten:28 "§ 18B-104. Administrative penalties.29 (a) Penalties. – For Unless otherwise provided by law, for any violation of the ABC laws,30 the Commission may take any of the following actions against a permittee:31(1) Suspend the permittee's permit for a specified period of time not longer than32three years.33(2) Revoke the permittee's permit.34(3) For all violations not listed in subdivision (3a) of this subsection, fine the35permittee up to five hundred dollars ($500.00) for the first violation, up to36seven hundred fifty dollars ($750.00) for the second violation within three37years, and up to one thousand dollars ($1,000) for the third violation within38three years of the first violation.39(3a) If the violations involve acts of violence, controlled substances, or prostitution40occurring on the licensed premises, fine the permittee up to seven hundred41fifty dollars ($750.00) for the first violation, up to one thousand dollars42($1,000) for a second violation within three years, and up to one thousand two43hundred fifty dollars ($1,250) for a third violation within three years of the44first violation. Additionally, the Commission may impose conditions on the45operating hours of the business for violations listed in this subdivision.46(4) Suspend the permittee's permit under subdivision (1) of this subsection and47impose a fine under subdivision (3) or (3a).(3a) of this subsection.48 …49 (f) Statute of Limitations. – The Commission shall not seek any administrative penalties50 under this section unless the Commission, within three years of the Commission receiving from51 law enforcement a permittee's alleged violation of the ABC laws, sends the permittee a notice ofPage 10 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251 alleged violation or files a petition for a contested case against the permittee in accordance with2 G.S. 18B-906. Any contested case commenced or maintained by the Commission in violation of3 this subsection shall be dismissed. This subsection does not prohibit the Commission from4 refiling a contested case that was dismissed without prejudice in accordance with G.S. 1A-1,5 Rule 41(a) of the Rules of Civil Procedure, provided that the Commission refiles the contested6 case within three years of the Commission receiving from law enforcement the permittee's7 alleged violation of the ABC laws or within one year of the dismissal without prejudice,8 whichever is later. This subsection does not apply to orders of suspension or revocation pursuant9 to G.S. 18B-900(f), 18B-904(e)(2), or 18B-904(e)(4)."10SECTION 15.(b) G.S. 18B-1001.4(f) reads as rewritten:11 "(f) Penalties for Violations in Residence Halls. – Notwithstanding G.S. 18B-104, if If a12 delivery service permittee commits a violation of this Chapter when delivering to a residence hall13 located on the premises of an institution of higher education the delivery service permittee shall14 be subject to a fine of up to one thousand dollars ($1,000) for the first violation, up to one15 thousand five hundred dollars ($1,500) for a second violation within three years of the first16 violation, and up to two thousand dollars ($2,000) for a third or subsequent violation within three17 years of the first violation. In any case in which there are two or more violations within three18 years by a delivery service permittee when delivering to a residence hall on the premises of an19 institution of higher education in which the Commission is entitled to suspend or revoke a permit,20 the Commission may accept from the permittee an offer in compromise to pay a penalty of not21 more than ten thousand dollars ($10,000). The Commission may either accept a compromise or22 revoke a permit, but not both. The Commission may accept a compromise and suspend the permit23 in the same case."24SECTION 15.(c) This section is effective when it becomes law and applies to25 contested cases commenced or maintained on or after that date.2627 TAX RELIEF FOR SMALL BREWERIES AND MICRODISTILLERIES28SECTION 16.(a) G.S. 105-113.68 reads as rewritten:29 "§ 105-113.68. Definitions; scope.30 (a) Definitions. – The following definitions apply in this Article:31…32(4b) Barrel. – Defined in G.S. 81A-9.33(4c) Bonded premises. – Defined in 26 U.S.C. § 5002.34(4d) Controlled group. – Any group of incorporated or nonincorporated businesses35that have common ownership interests, including individuals, partnerships,36and corporations. A business is considered to be part of a controlled group if37more than fifty percent (50%) of the business is owned either by, or in38common with, another business or other businesses.39(4e) Distillery permittee. – A distillery that holds a distillery permit issued by the40ABC Commission under G.S. 18B-1105.41…42(7a) Microdistillery. – A distillery that withdraws no more than 50,000 proof43gallons of spirituous liquor annually from bonded premises. If a distillery is44part of a controlled group, the controlled group must withdraw no more than4550,000 proof gallons of spirituous liquor annually from bonded premises.46…47(8a) Proof gallon. – A liquid gallon of distilled spirits that is fifty percent (50%)48alcohol at 60 degrees Fahrenheit.49…50(10a) Small brewery. – A brewery that produces no more than 600,000 barrels of51malt beverages annually. If a brewery is part of a controlled group, theHouse Bill 921-Second Edition Page 11General Assembly Of North Carolina Session 20251controlled group must produce no more than 600,000 barrels of malt2beverages annually.3…."4SECTION 16.(b) Part 5 of Article 2C of Chapter 105 of the General Statutes is5 amended by adding a new section to read:6 "§ 105-113.85A. Credit allowed.7 (a) Credit. – When filing a return, a taxpayer is allowed a credit as provided for in this8 section against the tax imposed by this Article. A credit authorized under this section must be9 subtracted from the tax due prior to calculating any discount under G.S. 105-113.85. A credit is10 authorized for the following:11(1) A local ABC Board or distillery in an amount equal to the tax due in the period12covered by the return that is attributable to the sale of spirituous liquor13produced by a registered microdistillery.14(2) A wholesaler or importer in an amount equal to the tax due in the period15covered by the return that is attributable to the sale of malt beverages produced16by a registered small brewery.17 (b) Registration. – The credit authorized under this section is available on products18 attributable to a microdistillery or a small brewery that are sold during a month in which the19 microdistillery or small brewery is registered under this section. The Secretary shall prescribe20 the manner in which a person may register as a microdistillery or small brewery. Registration21 must be accompanied by a written certificate signed under penalty of perjury that the person22 qualifies as a microdistillery or small brewery, as applicable. The Secretary may request any23 information necessary to verify that the person qualifies or continues to qualify for registration24 under this subsection.25 The Secretary shall keep a record of all persons registered under this subsection sorted by26 designation. The list shall state the name and business address of each person registered. The27 Secretary shall make available the list required under this subsection on the Department's28 website. A person registered under this subsection that no longer qualifies as a microdistillery or29 small brewery shall promptly notify the Secretary. A person must be removed from the list if the30 Secretary determines that the person no longer qualifies as a microdistillery or small brewery or31 if the person fails to respond to the Secretary's request for information verifying the person's32 continued eligibility for registration under this subsection.33 (c) Forfeiture. – A taxpayer may rely on the list published by the Department under34 subsection (b) of this section when taking the credit authorized under this section; however, the35 taxpayer forfeits the credit taken under this section on product produced by a person registered36 under subsection (b) of this section for any month in which the Department determines the credit37 was not allowed as provided for under this subsection. If the Department determines that a38 taxpayer avoided tax by taking a credit in violation of this subsection, the taxpayer is liable for39 all past taxes avoided as a result of any forfeited credits plus interest at the rate established under40 G.S. 105-241.21, computed from the date the taxes would have been due if the forfeited credits41 had not been taken. The Secretary shall also charge the taxpayer with a penalty equal to42 twenty-five percent (25%) of the amount of taxes avoided. The past taxes, penalty, and interest43 are due 30 days after the date the credits are forfeited; a taxpayer that fails to pay the past taxes,44 penalty, and interest by the due date is subject to the penalties provided in G.S. 105-236. A credit45 is not allowed on spirituous liquor, antique spirituous liquor, or malt beverages which are:46(1) Sold by the distillery or brewery that produced the product in any month in47which the distillery or brewery was registered but did not qualify as a48microdistillery or small brewery, as applicable.49(2) Sold by a person other than the distillery or brewery that produced the product50in any month in which the person knew the distillery or brewery was registered51but did not qualify as a microdistillery or small brewery, as applicable."Page 12 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251SECTION 16.(c) This section becomes effective January 1, 2027, and applies to2 malt beverages and spirituous liquor first sold or otherwise disposed of on or after that date;3 however, the Secretary of Revenue may begin registering persons as a microdistillery or small4 brewery under G.S. 105-113.85A(b), as enacted by this section, on September 1, 2026.56 ESTABLISH SERVICE BUSINESS PERMIT7SECTION 17.(a) G.S. 18B-300(a1) reads as rewritten:8 "(a1) Consumption on Premises During Time of Permit Revocation or Suspension. – It shall9 be unlawful to consume or for a permittee or his a permittee's agent or employee to allow the10 consumption of malt beverages or unfortified wine on the premises of any business during the11 period of time that any on-premises permit or service business permit issued to the business12 authorizing the sale and or consumption of malt beverages or unfortified wine has been13 suspended or revoked by the Commission. The prohibition in this subsection does not apply to14 the premises upon which the business was located at the time the permit was suspended or15 revoked if the business ceases to operate in that location and the owner of the property is not the16 permittee, provided that the permittee is not engaged in any other business or other activity on17 the premises during the period of suspension or revocation."18SECTION 17.(b) G.S. 18B-603 is amended by adding a new subsection to read:19 "(i) Service Business Permits. – The Commission may only issue service business permits20 provided for in G.S. 18B-1001(26) to qualified persons and establishments located within a21 jurisdiction in which on-premises malt beverage permits or on-premises unfortified wine permits22 may be issued, subject to the following restrictions:23(1) If on-premises malt beverage permits, but not on-premises unfortified wine24permits, may be issued in the jurisdiction, the service business permittee may25furnish only malt beverages to customers.26(2) If on-premises unfortified wine permits, but not on-premises malt beverage27permits, may be issued in the jurisdiction, the service business permittee may28furnish only unfortified wine to customers.29(3) If on-premises malt beverage permits and on-premises unfortified wine30permits may be issued in the jurisdiction, the service business permittee may31furnish malt beverages and unfortified wine to customers."32SECTION 17.(c) G.S. 18B-902 reads as rewritten:33 "§ 18B-902. Application for permit; fees.34 …35 (d) Fees. – An application for an ABC permit shall be accompanied by payment of the36 following application fee:37…38(57) Service business permit – $50.00.39 …40 (h) Recycling Plan Required. – Each applicant for an on-premises malt beverage permit,41 on-premises unfortified wine permit, service business permit, on-premises fortified wine permit,42 or a mixed beverages permit shall prepare and submit with the application a plan for the collection43 and recycling of all recyclable beverage containers of all beverages to be furnished or sold at44 retail on the premises. Each applicant for a mobile bar services permit shall prepare and submit45 with the application a plan for the collection and recycling of all recyclable beverage containers46 of all beverages to be served at an event pursuant to the permit. A permittee who is not able to47 find a recycler for its beverage containers may apply to the Alcoholic Beverage Control48 Commission for a one-year stay of the requirement to implement a recycling program in49 compliance with G.S. 18B-1006.1. The application shall be made in a form specified by the50 Commission, shall detail the efforts made by the permittee to provide for the collection and51 recycling of beverage containers, and shall specify the impediments to implementation of aHouse Bill 921-Second Edition Page 13General Assembly Of North Carolina Session 20251 recycling plan. The Commission shall submit all such applications to the Division of2 Environmental Assistance and Outreach of the Department of Environmental Quality for review3 and certification. The Division of Environmental Assistance and Outreach shall investigate each4 application and prepare a summary of its investigation and shall submit the summary to the5 Commission along with a notation indicating certification or denial of the application. A6 permittee whose application for a stay is certified by the Division of Environmental Assistance7 and Outreach shall not be required to comply with the recycling requirement of the alcoholic8 beverage laws and regulations during the one-year stay period so certified."9SECTION 17.(d) G.S. 18B-903 reads as rewritten:10 "§ 18B-903. Duration of permit; renewal and transfer.11 (a) Duration. – Once issued, ABC permits shall be valid for the following periods, unless12 earlier surrendered, suspended or revoked:13(1) On-premises and off-premises malt beverage, unfortified wine, and fortified14wine permits; service business permits; culinary permits; and all permits listed15in G.S. 18B-1100 shall remain valid indefinitely.16…17 (b1) Registration. – Each person holding a malt beverage, fortified wine, or unfortified18 wine permit unfortified wine, or service business permit issued pursuant to G.S. 18B-902(d)(1)19 through G.S. 18B-902(d)(6) or G.S. 18B-902(d)(57) shall register by May 1 of each year on a20 form provided by the Commission, in order to provide information needed by the State in21 enforcing this Chapter and to support the costs of that enforcement. The For permits issued22 pursuant to G.S. 18B-902(d)(1) through G.S. 18B-902(d)(6), the registration required by this23 subsection shall be accompanied by an annual registration and inspection fee of four hundred24 dollars ($400.00) for each permit held. For permits issued pursuant to G.S. 18B-902(d)(57), the25 registration required by this subsection shall be accompanied by an annual registration and26 inspection fee of fifty dollars ($50.00) for each permit held. The fee shall be paid by May 1 of27 each year. A registration fee shall not be refundable. Failure to pay the annual registration and28 inspection fee shall result in revocation of the permit.29 (b2) Recycling Plan Required. – Each person holding an on-premises malt beverage30 permit, on-premises unfortified wine permit, service business permit, on-premises fortified wine31 permit, or a mixed beverages permit shall submit, along with the annual registration or renewal32 application, either a current plan for the collection and recycling of all recyclable beverage33 containers of all beverages furnished or sold at retail on the premises, or an application for a34 waiver pursuant to G.S. 18B-902(h). Each person holding a mobile bar services permit shall35 submit, along with the annual renewal application, either a current plan for the collection and36 recycling of all recyclable beverage containers of all beverages to be served at an event pursuant37 to the permit, or an application for a waiver pursuant to G.S. 18B-902(h).38 …."39SECTION 17.(e) G.S. 18B-1000 reads as rewritten:40 "§ 18B-1000. Definitions concerning establishments.41 The following requirements and definitions shall apply to this Chapter:42…43(7a) Service business. – An establishment that is primarily engaged in the business44of providing services to the general public that require an occupational license45issued by the State.46(7a)(7b) Sports and entertainment venue. – Stadiums, ballparks, and other similar47facilities with a permanently constructed seating capacity of 3,000 or more48which are not located on the campus of a school, college, or university.49…."50SECTION 17.(f) G.S. 18B-1001 is amended by adding a new subdivision to read:Page 14 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251"(26) Service Business Permit. – A service business permit authorizes the permittee2to furnish complimentary malt beverages and unfortified wine to customers,3in conjunction with the provision of the service, for consumption on the4permittee's premises at no extra charge to the customers. The permittee may5furnish alcoholic beverages to customers only in accordance with6G.S. 18B-603(i). The permittee may not serve more than two servings of7alcoholic beverages to any individual customer in any calendar day. For8purposes of this subdivision, a serving of malt beverage is 16 fluid ounces,9and a serving of unfortified wine is 8 fluid ounces. Notwithstanding10G.S. 18B-1006(h), the permittee may purchase malt beverages and unfortified11wine only from a retailer. The permit may be issued to service businesses."12SECTION 17.(g) G.S. 18B-1006.1(a) reads as rewritten:13 "(a) Holders of on-premises malt beverage permits, on-premises unfortified wine permits,14 service business permits, on-premises fortified wine permits, and mixed beverages permits shall15 separate, store, and provide for the collection for recycling of all recyclable beverage containers16 of all beverages furnished or sold at retail on the premises. A permittee has satisfied the17 requirements of this section if it implements a recycling program that meets the minimum18 standards of the model recycling program developed by the Commission pursuant to19 G.S. 130A-309.14(m). Failure to comply with the requirements of this section shall not be20 grounds for revocation of a permit. A conviction for violation of this section shall not constitute21 an alcoholic beverage offense within the meaning of G.S. 18B-900(a)(4)."22SECTION 17.(h) This section becomes effective July 1, 2026.2324 COUNTY MIXED BEVERAGE ELECTION AMENDMENT25SECTION 18.(a) G.S. 18B-600(b) reads as rewritten:26 "(b) County Elections. – Any county may hold a malt beverage, unfortified wine, or ABC27 store election. A county may hold a mixed beverage election only if (i) the county already28 operates at least one county ABC store or a city located in the county operates at least one ABC29 store or (ii) a county election on ABC stores is to be held at the same time as the mixed beverage30 election. If a county does not operate at least one ABC store, a mixed beverages permittee may31 purchase liquor from an ABC store that is designated as a mixed beverage ABC store operated32 by any local board operating in the same county as the permittee."33SECTION 18.(b) This section is retroactively effective October 1, 2024.3435 BROWN-BAGGING TECHNICAL CORRECTION36SECTION 19. G.S. 18B-603(d) reads as rewritten:37 "(d) Mixed Beverage Elections. – If a mixed beverage election is held under38 G.S. 18B-602(h) and the sale of mixed beverages is approved, the Commission may issue permits39 to qualified persons and establishments in the jurisdiction that held the election as follows:40…41(4) The Commission may issue brown-bagging permits for bars, private clubs42clubs, and congressionally chartered veterans organizations but may no longer43issue and may not renew brown-bagging permits for restaurants, hotels, and44community theatres. A restaurant, hotel, or community theatre may not be45issued a mixed beverage permit under subdivision (1) until it surrenders its46brown-bagging permit.47…."4849 AIRPORT TECHNICAL CORRECTION50SECTION 20. G.S. 18B-300.3 reads as rewritten:House Bill 921-Second Edition Page 15General Assembly Of North Carolina Session 20251 "§ 18B-300.3. Possession and consumption of alcoholic beverages in the security-screened2area of airports.3 (a) During the hours of airport operation, any establishment permitted under subdivision4 (1), (3), (5), or (10) of G.S. 18B-1000 G.S. 18B-1001 and operating in the Transportation5 Security Administration-screened portion of an airport may, with the written approval of the6 airport authority, sell the alcoholic beverages it is permitted to sell for consumption throughout7 the Transportation Security Administration-screened portion of the establishment's respective8 airport terminal.9 (b) An alcoholic beverage served for consumption throughout an establishment's airport10 terminal shall be served in a container that meets all of the following requirements:11(1) The container is not comprised of glass.12(2) The container displays, in no less than 12-point font, the statement, "Drink13Responsibly – Be 21."14(3) The container shall not hold more than 16 fluid ounces.15 (c) A customer may purchase and consume alcoholic beverages throughout the interior16 of the Transportation Security Administration-screened portion of the respective airport terminal,17 provided that the purchase is from an approved establishment permitted under subdivision (1),18 (3), (5), or (10) of G.S. 18B-1000.G.S. 18B-1001.19 (d) This section applies only to airports that service airplanes boarding at least 150,00020 passengers annually."2122 ALLOW ALCOHOL SALES AT MILLENNIAL CAMPUSES AT UNIVERSITY OF23 NORTH CAROLINA INSTITUTIONS AND AT THE HORACE WILLIAMS CAMPUS24 OF THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL25SECTION 21. G.S. 18B-1006(a) reads as rewritten:26 "(a) School and College Campuses. – No permit for the sale of alcoholic beverages shall27 be issued to a business on the campus or property of a public school, college, or university. This28 subsection shall not apply to the following:29…30(5) Restaurants, eating establishments, food businesses, or retail businesses on the31property defined by G.S. 116-198.33(4).subdivision (4), (4a), or (4b) of32G.S. 116-198.33.33…."3435 ALLOW THE SALE OF PREMIXED COCKTAILS FOR ON-PREMISES AND36 OFF-PREMISES CONSUMPTION AND ALLOW WHOLESALERS TO DISTRIBUTE37 PREMIXED COCKTAILS38SECTION 22.(a) G.S. 18B-100 reads as rewritten:39 "§ 18B-100. Purpose of Chapter.40 This Chapter is intended to establish a uniform system of control over the sale, purchase,41 transportation, manufacture, consumption, and possession of alcoholic beverages in North42 Carolina, and to provide procedures to insure ensure the proper administration of the ABC laws43 under a uniform system throughout the State. This Chapter shall be liberally construed to the end44 that the sale, purchase, transportation, manufacture, consumption, and possession of alcoholic45 beverages shall be prohibited except as authorized in this Chapter. If any provision of this46 Chapter, or its application to any person or circumstance, is determined by a court or other47 authority of competent jurisdiction to be invalid or unconstitutional, such provision shall be48 stricken and the remaining provisions shall be construed in accordance with the intent of the49 General Assembly to further limit rather than expand commerce in alcoholic beverages, and with50 respect to malt beverages, unfortified wine, premixed cocktails, and fortified wine, the remaining51 provisions shall be construed to enhance strict regulatory control over taxation, distribution, andPage 16 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251 sale of alcoholic beverages through the three-tier regulatory system and the franchise laws2 imposed by this Chapter.3 Except as provided in this Chapter, local ordinances establishing different rules on the4 manufacture, sale, purchase, transportation, possession, consumption, or other use of alcoholic5 beverages, or requiring additional permits or fees, are prohibited."6SECTION 22.(b) G.S. 18B-101 reads as rewritten:7 "§ 18B-101. Definitions.8 As used in this Chapter, unless the context requires otherwise:9…10(4) "Alcoholic beverage" means any beverage containing at least one-half of one11percent (0.5%) alcohol by volume, including malt beverages, unfortified wine,12premixed cocktails, fortified wine, spirituous liquor, mixed beverages, and13any alcohol consumable.14…15(5c) "Bailment surcharge" means the charge imposed on each case of liquor or16premixed cocktails shipped from a Commission warehouse as provided in17G.S. 18B-208. This bailment surcharge is in addition to the bailment charge18imposed by G.S. 18B-804(b)(2).G.S. 18B-804(b)(2) and G.S. 18B-804(e)(2).19(5d) "Brokerage" means a business that brokers the sale of spirituous liquor or20premixed cocktails on behalf of the holder of a distillery permit issued under21G.S. 18B-1105, a business located outside the State that is licensed or22permitted to manufacture spirituous liquor or premixed cocktails in the23jurisdiction where the business is located and whose products are lawfully sold24in this State, or a liquor importer or bottler.25…26(10) "Mixed beverage" means either of the following:a drink composed in whole27or in part of spirituous liquor and served in a quantity less than the quantity28contained in a closed package. The term "mixed beverage" does not include29premixed cocktails.30a. A drink composed in whole or in part of spirituous liquor and served31in a quantity less than the quantity contained in a closed package.32b. A premixed cocktail sold by a mixed beverages permittee, regardless33of whether the premixed cocktail is sold in an open container or a34closed container.35…36(12c) "Premixed cocktail" means a single-serving drink in the manufacturer's37original closed container of 24 fluid ounces or less containing at least one-half38of one percent (0.5%), and no more than thirteen percent (13%), nine and39nine-tenths percent (9.9%), alcohol by volume and consisting of spirituous40liquor premixed with any or all of the following: nonalcoholic beverages,41flavoring, or coloring. A premixed cocktail may contain water, fruit juices,42fruit adjuncts, sugar, carbon dioxide, preservatives, and other similar products43manufactured by fermenting fruit or fruit juices.44…45(14) "Spirituous liquor" or "liquor" means distilled spirits or ethyl alcohol, and any46alcohol consumable containing distilled spirits or ethyl alcohol, including47spirits of wine, whiskey, rum, brandy, gin and all other distilled spirits and48mixtures of cordials, cordials and liqueur, and premixed cocktails, in closed49containers regardless of their dilution. The terms "spirituous liquor" and50"liquor" do not include premixed cocktails.51…."House Bill 921-Second Edition Page 17General Assembly Of North Carolina Session 20251SECTION 22.(c) G.S. 18B-105 reads as rewritten:2 "§ 18B-105. Advertising.3 …4 (c) A beer or wine beer, wine, or premixed cocktail wholesaler may give, furnish, loan,5 rent, or sell retailer advertising specialty items and product displays to a retail permittee, so long6 as the items have not been customized for an individual retail permittee, and provided that the7 value of the items per brand does not exceed six hundred dollars ($600.00) per year. For the8 purposes of this subsection, the following definitions apply:9(1) Product displays. – Racks, bins, barrels, casks, shelving, and similar items10from which malt beverages, wine, premixed cocktails, or spirituous liquor are11displayed and sold.12…13 (d) The holder of a supplier representative permit, brokerage representative permit,14 nonresident spirituous liquor vendor permit, or distillery permit issued under G.S. 18B-1105 may15 give, furnish, loan, rent, or sell retailer advertising specialty items and product displays to a local16 board, so long as the items have not been customized for an individual local board, and provided17 that the value of the items per brand does not exceed one thousand dollars ($1,000) per year. For18 the purposes of this subsection, the following definitions apply:19(1) Product displays. – Racks, bins, barrels, casks, shelving, and similar items20from which malt beverages, wine, premixed cocktails, or spirituous liquor are21displayed and sold.22…."23SECTION 22.(d) G.S. 18B-106 reads as rewritten:24 "§ 18B-106. Alcoholic beverages for use on oceangoing ships.25 (a) Delivery Permitted. – Alcoholic beverages for use outside the United States on26 oceangoing vessels shall be delivered as follows:27…28(2) Malt beverages, unfortified wine, premixed cocktails, and fortified wine may29be sold and delivered by any wholesaler or retailer licensed in this in this30State to an officer or agent of an oceangoing vessel. The Commission may31require the officer or agent to obtain a permit before purchasing alcoholic32beverages under this subdivision.33 …34 (c) Rules. – The Commission may issue rules relating to applications for permits and35 otherwise regulate the importation, sale, and delivery of alcoholic beverages under this section36 to insure that ensure that those beverages are used only on oceangoing vessels outside the United37 States."38SECTION 22.(e) G.S. 18B-107(a) reads as rewritten:39 "(a) Purchase and Storage. – The Commission may issue permits authorizing air carriers40 offering regularly scheduled or chartered flights in foreign, interstate, or intrastate commerce to41 purchase malt beverages, unfortified wine, premixed cocktails, and fortified wine from any42 wholesaler or retailer licensed in this State, and to transport those alcoholic those alcoholic43 beverages. The Commission may also authorize air carriers to store, at facilities approved by the44 Commission, alcoholic beverages to be sold or served pursuant to subsection (b).subsection (b)45 of this section."46SECTION 22.(f) G.S. 18B-108 reads as rewritten:47 "§ 18B-108. Sales on trains.48 Alcoholic beverages may be sold on railroad trains in this State upon compliance with Article49 2C of Chapter 105 of the General Statutes. Malt beverages, unfortified wine, premixed cocktails,50 and fortified wine may be sold and delivered by any wholesaler or retailer licensed in this StatePage 18 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251 to an officer or agent of a rail line that carries at least 60,000 passengers annually or is at least2 100 miles long and connects to the national rail network."3SECTION 22.(g) G.S. 18B-109(b) reads as rewritten:4 "(b) Armed Forces Installation and Indian Country Lands. – No person shall have malt5 beverages or unfortified wine malt beverages, unfortified wine, or premixed cocktails shipped6 directly from a point outside this State to: (i) an installation of the Armed Forces of the United7 States within this State if those alcoholic beverages are for resale on the installation; (ii) the8 Eastern Band of Cherokee Indians for resale on Indian Country lands within this State under the9 jurisdiction of the Eastern Band of Cherokee Indians; or (iii) the Catawba Indian Nation for resale10 on Indian Country lands within this State under the jurisdiction of the Catawba Indian Nation."11SECTION 22.(h) G.S. 18B-112 reads as rewritten:12 "§ 18B-112. Tribal alcoholic beverage control.13 …14 (b) Compliance Required. – The Eastern Band of Cherokee Indians and the Catawba15 Indian Nation shall comply with the following provisions of this Chapter to the extent they apply16 to or can be made applicable to each tribe:17(1) The following provisions of Article 1. – General Provisions.18a. G.S. 18B-101(4), (7), (7c), (9), (10), (11), (12), (12a), (12c), (13),19(14)(14a), (14), (14a), (14b), and (15).20…21 Any provision of Articles 12 and 13 Articles 12, 13, and 14 of this Chapter which has not22 been made applicable to the Eastern Band of Cherokee Indians and the Catawba Indian Nation23 by this section shall act as a bar to engaging in any activity authorized by that Article or section.24 (b1) In accordance with G.S. 18B-1004(c), the Eastern Band of Cherokee Indians and the25 Catawba Indian Nation may adopt an ordinance allowing for the sale of malt beverages,26 unfortified wine, premixed cocktails, fortified wine, and mixed beverages beginning at 10:0027 A.M. on Sunday pursuant to the licensed premises' permit issued under the authority of28 G.S. 18B-112(d).29 …30 (d) Establishment of Tribal Commissions. – In accordance with the provisions of 1831 U.S.C. § 1161, the Eastern Band of Cherokee Indians and the Catawba Indian Nation are each32 authorized to establish a tribal alcoholic beverage control commission to regulate the purchase,33 possession, consumption, sale, and delivery of alcoholic beverages on any land designated as34 Indian Country pursuant to 18 U.S.C. § 1151 under the jurisdiction of the Eastern Band of35 Cherokee Indians. Each tribal commission shall have exclusive authority to issue ABC permits36 to retail and commercial establishments located wholly on Indian Country lands under the37 jurisdiction of the tribe and to regulate the purchase, possession, consumption, sale, and delivery38 of alcoholic beverages at permitted outlets and premises. Permits issued by the tribal commission39 pursuant to this section shall be deemed issued by the State for the purposes of sales and delivery40 of beer and wine malt beverages, wine, and premixed cocktails by wholesalers to the retail outlets41 located on Indian Country lands. The fees generated by the tribal alcoholic beverage control42 commission for the issuance of retail permits may be retained by each tribe to offset costs of43 operating the tribal alcoholic beverage control commission.44 …45 (f) Authority of the North Carolina Alcoholic Beverage Control Commission. – The46 North Carolina Alcoholic Beverage Control Commission shall have the authority to enter into47 agreements with the tribal alcoholic beverage control commission to provide for the sale,48 delivery, and distribution of spirituous liquor and premixed cocktails to the tribal alcoholic49 beverage control commission. The tribal alcoholic beverage control commission shall purchase50 spirituous liquor and premixed cocktails for resale by the tribal alcoholic beverage control51 commission exclusively from the North Carolina Alcoholic Beverage Control Commission at theHouse Bill 921-Second Edition Page 19General Assembly Of North Carolina Session 20251 same price and on the same basis that such spirits alcoholic beverages are purchased by local2 boards. To the extent there is a conflict between the tribal alcoholic beverage control3 commission's authority or purpose and the North Carolina Alcoholic Beverage Control4 Commission's authority or purpose, the North Carolina Alcoholic Beverage Control Commission5 shall prevail. This subsection shall not be construed to prohibit retail permittees from purchasing6 premixed cocktails from premixed cocktail wholesaler permittees licensed under this Chapter.7 …."8SECTION 22.(i) G.S. 18B-203(a) reads as rewritten:9 "(a) Powers. – The Commission shall have authority to:10(1) Administer the ABC laws;laws.11(2) Provide for enforcement of the ABC laws, in conjunction with the ALE12Division;Division.13(3) Set the prices of alcoholic beverages sold in local ABC stores as provided in14Article 8;8. This subdivision shall not be construed to allow the Commission15to set the prices of premixed cocktails sold outside of local ABC stores.16(4) Require reports and audits from local boards as provided in17G.S. 18B-205;G.S. 18B-205.18(5) Determine what brands of alcoholic beverages may be sold in this State;State.19(6) Contract for State ABC warehousing, as provided in20G.S. 18B-204;G.S. 18B-204.21(7) Dispose of damaged alcoholic beverages, as provided in22G.S. 18B-806;G.S. 18B-806.23(8) Remove for cause any member or employee of a local board;board.24(9) Supervise or disapprove purchasing by any local board and inspect all records25of purchases by local boards;boards.26(10) Approve or disapprove rules adopted by any local board;board.27(11) Approve or disapprove the opening and location of ABC stores, as provided28in Article 8;8.29(12) Issue ABC permits, and impose sanctions against permittees;permittees.30(13) Provide for the testing of alcoholic beverages, as provided in31G.S. 18B-206;G.S. 18B-206.32(14) Fix the amount of bailment charges and bailment surcharges to be assessed on33liquor and premixed cocktails shipped from a Commission34warehouse;warehouse.35(15) Collect bailment charges and bailment surcharges from local boards;boards.36(16) Notwithstanding any law to the contrary, enter into contracts for design and37construction of a warehouse or warehouses and supervise work and materials38used in the construction, as provided in G.S. 18B-204;G.S. 18B-204.39(17) Provide for the distribution of spirituous liquor and premixed cocktails to: (i)40installations of the Armed Forces of the United States within this State for41resale on the installation; (ii) the Eastern Band of Cherokee Indians for resale42on Indian Country lands within this State under the jurisdiction of the Eastern43Band of Cherokee Indians; and (iii) to the Catawba Indian Nation for resale44on Indian Country lands within the State under the jurisdiction of the Catawba45Indian Nation. This subdivision shall not be construed to limit the ability of46licensed premixed cocktail wholesalers to sell and distribute premixed47cocktails to: (i) installations of the Armed Forces of the United States within48this State for resale on the installation; (ii) the Eastern Band of Cherokee49Indians for resale on Indian Country lands within this State under the50jurisdiction of the Eastern Band of Cherokee Indians; or (iii) the CatawbaPage 20 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251Indian Nation for resale on Indian Country lands within the State under the2jurisdiction of the Catawba Indian Nation.3(18) Provide for the distribution and posting of warning signs to local ABC boards4regarding the dangers of alcohol consumption during pregnancy as required5under G.S. 18B-808;G.S. 18B-808.6…."7SECTION 22.(j) G.S. 18B-204 reads as rewritten:8 "§ 18B-204. State warehouse.9 (a) Contracting for Private Warehouse. – The Commission shall provide for the receipt,10 storage, and distribution of spirituous liquor and premixed cocktails by one of the following11 methods:12(1) By negotiated contract with a privately owned warehouse.13(2) By negotiated contract with privately owned warehouses in several regions of14the State. The Commission shall choose locations for the warehouses to15promote efficient distribution of spirituous liquor and premixed cocktails to16all local boards, to maintain control of that liquor, the liquor and premixed17cocktails, and to insure ensure the Commission's supervision of warehousing18procedures.19(3) By the construction of a warehouse, and by contracting for receipt, storage20and distribution of spirituous liquor and premixed cocktails by an independent21contractor, by negotiated contract or by the use of procedures for purchase and22contract by State agencies, for the operation of that warehouse.23 (a1) Distribution of Spirituous Liquor; Liquor and Premixed Cocktails; No24 Discrimination. – The Commission shall make a good-faith effort, without discrimination, to25 make all spirituous liquor and premixed cocktails distributed by the Commission available to all26 local boards. The Commission shall adopt rules regarding the ordering of spirituous liquor and27 premixed cocktails by local boards and may suspend distribution to a local board of any limited28 product required to be recorded pursuant to subsection (a3) of this section for a violation of any29 rule concerning the ordering of the limited product.30 …31 (b) Audits and Inspections. – Contracts entered into pursuant to this section shall provide32 all of the following:33…34(3) That all warehouse accounts relating to the receipt, storage, or distribution of35spirituous liquor and premixed cocktails be subject to audit by the State36Auditor.37 (c) Emergency or Temporary Operation. – If the independent operator of a warehouse38 changes, or if some other occurrence results in substantially impeded distribution of spirituous39 liquor or premixed cocktails from a warehouse, the Commission may operate that warehouse on40 an interim emergency or temporary basis.41 …."42SECTION 22.(k) G.S. 18B-206(c) reads as rewritten:43 "(c) Testing. – The Commission may test malt beverages, unfortified wine, premixed44 cocktails, fortified wine, and spirituous liquor possessed or offered for sale in this State to45 determine whether they meet the standards set by the Commission. If the Commission chooses46 to test an alcoholic beverage, that test may be performed by the Commission, the Commission47 may arrange for the State Chemist to perform the testing, or the Commission may have the testing48 performed in some other manner. The manufacturer of tested alcoholic beverages shall pay the49 costs of the test. In lieu of testing an alcoholic beverage, the Commission may rely on testing by50 a federal agency or an agency of another state or may accept test results from a federal agency,51 an agency of another state, or the manufacturer of the alcoholic beverage or his authorized agent.House Bill 921-Second Edition Page 21General Assembly Of North Carolina Session 20251 A manufacturer who submits test results shall also submit a fee of ten dollars ($10.00) for each2 test result to cover administrative costs."3SECTION 22.(l) G.S. 18B-209 reads as rewritten:4 "§ 18B-209. Authority to sample spirituous liquor and premixed cocktail products.5 Notwithstanding G.S. 18B-201(d) and G.S. 133-32, and any other provision of law, members6 and employees of the Commission may consume samples of spirituous liquor and premixed7 cocktail products under consideration for approval for sale in this State, free of charge. No person8 may consume more than one 0.25 ounce tasting sample of each product for this purpose. Such a9 sample shall not constitute a gift for purposes of G.S. 133-32. Tastings may be conducted10 pursuant to this section on property owned by the ABC Commission."11SECTION 22.(m) G.S. 18B-211 reads as rewritten:12 "§ 18B-211. Special purchase allowance limitation.13 The Commission shall notify industry members and local boards at least 60 days in advance14 of the effective date of an approved retail price reduction for a spirituous liquor or premixed15 cocktail product. The price of the spirituous liquor or the premixed cocktail for local boards shall16 be reduced only for the 30 days that the approved retail price reduction is in effect."17SECTION 22.(n) G.S. 18B-300, as amended by Section 17(a) of this act, reads as18 rewritten:19 "§ 18B-300. Purchase, possession and consumption of malt beverages and unfortified20wine.malt beverages, unfortified wine, and premixed cocktails.21 (a) Generally. – Except as otherwise provided in this Chapter, the purchase, consumption,22 and possession of malt beverages and unfortified wine malt beverages, unfortified wine, and23 premixed cocktails by individuals 21 years old and older for their own use is permitted without24 restriction.25 (a1) Consumption on Premises During Time of Permit Revocation or Suspension. – It shall26 be unlawful to consume or for a permittee or a permittee's agent or employee to allow the27 consumption of malt beverages or unfortified wine malt beverages, unfortified wine, or premixed28 cocktails on the premises of any business during the period of time that any on-premises permit29 or service business permit issued to the business authorizing the sale or consumption of malt30 beverages or unfortified wine malt beverages, unfortified wine, or premixed cocktails has been31 suspended or revoked by the Commission. The prohibition in this subsection does not apply to32 the premises upon which the business was located at the time the permit was suspended or33 revoked if the business ceases to operate in that location and the owner of the property is not the34 permittee, provided that the permittee is not engaged in any other business or other activity on35 the premises during the period of suspension or revocation.36 (b) Consumption at Off-Premises Establishment. – It shall be unlawful to consume, or37 for a permittee to allow the consumption of, malt beverages or unfortified wine malt beverages,38 unfortified wine, or premixed cocktails on any premises having only an off-premises permit for39 the kind of alcoholic beverage being consumed.40 (c) Local Ordinance. – A city or county may by ordinance:ordinance do any of the41 following:42(1) Regulate or prohibit the consumption of malt beverages and unfortified wine43malt beverages, unfortified wine, and premixed cocktails on the public streets44in that city or county by persons who are not occupants of motor vehicles and45on property owned, occupied, or controlled by that city or county;county.46(2) Regulate or prohibit the possession of open containers of malt beverages and47unfortified wine malt beverages, unfortified wine, and premixed cocktails on48public streets in that city or county by persons who are not occupants of motor49vehicles and on property owned, occupied, or controlled by that city or county;50andcounty.Page 22 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251(3) Regulate or prohibit the possession of malt beverages and unfortified wine2malt beverages, unfortified wine, and premixed cocktails on public streets,3alleys, or parking lots which are temporarily closed to regular traffic for4special events.5 For the purposes of this subsection, an open container means a container whose seal has been6 broken or a container other than the manufacturer's unopened original container. As provided by7 G.S. 18B-102(a), possession or consumption of alcoholic beverages is unlawful except as8 authorized by the ABC law."9SECTION 22.(o) G.S. 18B-300.1 reads as rewritten:10 "§ 18B-300.1. Authorization and regulation of social districts.11 …12 (j) Interaction with Other Permits. – The Commission shall issue permits for special13 events occurring partially or entirely within the boundaries of a social district as follows:14…15(2) A permittee holding a winery special event permit, malt beverage special16event permit, or spirituous liquor special event permit permit, or premixed17cocktail special event permit pursuant to G.S. 18B-1114.1, 18B-1114.5, and1818B-1114.7, and 18B-1114.9, respectively, may sell and serve products at19special events taking place in a social district.20(3) A permittee holding a mixed beverages catering permit pursuant to21G.S. 18B-1001(12) may serve spirituous liquor and premixed cocktails to22guests at events taking place in a social district."23SECTION 22.(p) G.S. 18B-301(f) reads as rewritten:24 "(f) Unlawful Possession or Use. – As illustration, but not limitation, of the general25 prohibition stated in G.S. 18B-102(a), it shall be unlawful for:26(1) Any person to consume fortified wine, premixed cocktails, spirituous liquor,27or mixed beverages or to offer such beverages to another person at any of the28following places:29a. Unless a consumer tasting authorized by G.S. 18B-1114.7 is being30conducted, on the premises of an ABC store.31b. Upon any property used or occupied by a local board.32c. On any public road, street, highway, or sidewalk, unless a consumer33tasting authorized by G.S. 18B-1114.7 or G.S. 18B-1114.9 is being34conducted.35(2) Any person to display publicly at an athletic contest fortified wine, spirituous36liquor, or mixed beverages;beverages.37(3) Any person to permit any fortified wine, spirituous liquor, or mixed beverages38to be possessed or consumed upon any premises not authorized by this39Chapter;Chapter.40(4) Any person to possess or consume any fortified wine, spirituous liquor, or41mixed beverages upon any premises where such possession or consumption is42not authorized by law, or where the person has been forbidden to possess or43consume that beverage by the owner or other person in charge of the44premises;premises.45(5) Any person to possess on any of the premises described in subsections (a)46through (c) of this section a greater amount of fortified wine or spirituous47liquor than authorized by this Chapter;Chapter.48(6) Any permittee, other than a mixed beverage or culinary permittee, to possess49spirituous liquor or mixed beverages on his the permittee's licensed premises.50(7) Any person to possess on his or her person or consume malt beverages or51unfortified wine malt beverages, unfortified wine, or premixed cocktails uponHouse Bill 921-Second Edition Page 23General Assembly Of North Carolina Session 20251any property owned or leased by a local board of education and used by the2local board of education for school purposes. Provided, however, the3prohibition in G.S. 18B-102(a) and this subdivision shall not apply on4property owned by a local board of education which was leased for 99 years5or more to a nonprofit auditorium authority created prior to 1991 whose6governing board is appointed by a city board of aldermen, a county board of7commissioners, or a local school board."8SECTION 22.(q) G.S. 18B-302 reads as rewritten:9 "§ 18B-302. Sale to or purchase by underage persons.10 (a) Sale. – It is unlawful for any person to do any of the following:11(1) Sell malt beverages or unfortified wine malt beverages, unfortified wine, or12premixed cocktails to anyone less than 21 years old.13(2) Sell fortified wine, spirituous liquor, or mixed beverages to anyone less than1421 years old.15 (a1) Give. – It is unlawful for any person to do any of the following:16(1) Give malt beverages or unfortified wine malt beverages, unfortified wine, or17premixed cocktails to anyone less than 21 years old.18(2) Give fortified wine, spirituous liquor, or mixed beverages to anyone less than1921 years old.20 (b) Purchase, Possession, or Consumption. – It is unlawful for a person less than 21 years21 old to do any of the following:22(1) Purchase, attempt to purchase, or possess malt beverages or unfortified23wine.malt beverages, unfortified wine, or premixed cocktails.24(2) Purchase, attempt to purchase, or possess fortified wine, spirituous liquor, or25mixed beverages.26(3) Consume any alcoholic beverage.27 …."28SECTION 22.(r) G.S. 18B-401(a) reads as rewritten:29 "(a) Opened Containers. – Except as authorized by a common carrier vehicle permit under30 G.S. 18B-1001(23), it shall be unlawful for a person to transport fortified wine premixed31 cocktails, fortified wine, or spirituous liquor in the passenger area of a motor vehicle in other32 than the manufacturer's unopened original container. It shall be unlawful for a person who is33 driving a motor vehicle on a highway or public vehicular area to consume in the passenger area34 of that vehicle any malt beverage or unfortified wine. Violation of this subsection shall constitute35 a Class 3 misdemeanor."36SECTION 22.(s) G.S. 18B-404 reads as rewritten:37 "§ 18B-404. Additional provisions for purchase and transportation by mixed beverage38permittees.39 …40 (e) Electronic Payment. – A local board shall accept electronic payments for any41 spirituous liquor and premixed cocktails purchased by a mixed beverages permittee. A local42 board may not charge a fee for accepting electronic payments under this subsection. For purposes43 of this subsection, the term "electronic payment" means payment by debit card or by electronic44 funds transfer as defined in G.S. 105-228.90, but does not include payment by charge card or45 credit card.46 …47 (g) Premixed Cocktails. – A mixed beverage permittee may purchase premixed cocktails48 from either a premixed cocktail wholesaler permittee licensed under this Chapter or an ABC store49 designated as a mixed beverage ABC store. The premixed cocktail wholesaler permittee may50 offer delivery services to retail permittees authorized to sell premixed cocktails."51SECTION 22.(t) G.S. 18B-503(e) reads as rewritten:Page 24 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251 "(e) Sale Procedure. – The procedure for the sale of seized alcoholic beverages shall be as2 follows:3(1) Wine. – The sale of unfortified wine or fortified wine shall be by public4auction unless those wines would likely become spoiled or lose value in the5time required to arrange a public auction. If spoilage or loss of value is likely,6the judge ordering the sale or the Commission may authorize sale at the7prevailing wholesale price, as determined by the Commission, to one or more8persons holding the appropriate retail wine permits in the county in which the9wine was seized, or in a neighboring county if there are no such persons in the10county in which the wine was seized.11(2) Premixed cocktails. – The sale of premixed cocktails shall be by public12auction unless those premixed cocktails would likely become spoiled or lose13value in the time required to arrange a public auction. If spoilage or loss of14value is likely, the judge ordering the sale or the Commission may authorize15either of the following:16a. Sale at the prevailing wholesale price, as determined by the17Commission, to one or more persons holding a retail permit18authorizing the sale of premixed cocktails in the county in which the19premixed cocktails were seized, or in a neighboring county if there are20no such persons in the county in which the premixed cocktails were21seized.22b. Sale to the local ABC board serving the city or county in which the23premixed cocktails were seized, or, if there is no local board for that24city or county, to the nearest local board. The sale price shall be at least25ten percent (10%) less than the price the local board would pay for the26same premixed cocktails bought through the State warehouse.27(3) Spirituous liquor. – Spirituous liquor may be sold only to the local ABC board28serving the city or county in which the liquor was seized, or, if there is no local29board for that city or county, to the nearest local board. The sale price shall be30at least ten percent (10%) less than the price the local board would pay for the31same liquor bought through the State warehouse."32SECTION 22.(u) G.S. 18B-600(h) reads as rewritten:33 "(h) Railroad Passenger Terminus Location Elections. – Notwithstanding any other34 provision of this section, any city or town that is the passenger terminus of a rail line that carries35 at least 60,000 passengers annually may hold an election authorized by subdivisions (a)(1) and36 (a)(2) of this section. Any election held under this subsection shall be for the on-premises sale of37 malt beverages and premixed cocktails and the on-premises sale of unfortified wine and premixed38 cocktails pursuant to G.S. 18B-602(a)(2) and G.S. 18B-602(d)(2)."39SECTION 22.(v) G.S. 18B-602 reads as rewritten:40 "§ 18B-602. Form of ballots.41 (a) Malt Beverage Elections. – Any one or more of the propositions listed below may be42 placed on the ballot for a malt beverage election. Each voter may vote on each proposition on the43 ballot. The propositions to be used shall be chosen by the governing body or petitioner requesting44 the election. The propositions shall read as follows:45(1) To permit the "on-premises" and "off-premises" sale of malt46beverages.beverages and premixed cocktails.47[ ] FOR48[ ] AGAINST49(2) To permit the "on-premises" sale only of malt beverages.beverages and50premixed cocktails.51[ ] FORHouse Bill 921-Second Edition Page 25General Assembly Of North Carolina Session 20251[ ] AGAINST2(3) To permit the "off-premises" sale only of malt beverages.beverages and3premixed cocktails.4[ ] FOR5[ ] AGAINST6(4) To permit the "on-premises" sale of malt beverages and premixed cocktails by7Class A hotels, motels, and restaurants only; and to permit "off-premises"8sales by other permittees.9[ ] FOR10[ ] AGAINST11 (b) Determining Results of Malt Beverage Election. – The kind of malt alcoholic12 beverage sales described in each proposition that receives a majority of votes "FOR" shall be13 allowed. If propositions (2) and (4) are both on the ballot and (2) receives a majority of votes14 "FOR," then sales shall be permitted according to that proposition regardless of the vote on (4).15 If one of the propositions receiving a majority of votes "FOR" is proposition (1), then the kind16 of sales described in that proposition shall be allowed regardless of the vote on any other17 proposition at that election.18 …19 (d) Unfortified Wine Elections. – Any one or more of the propositions listed below may20 be placed on the ballot for an unfortified wine election. Each voter may vote on each proposition21 on the ballot. The propositions to be used shall be chosen by the governing body or petitioner22 requesting the election. The propositions shall read as follows:23(1) To permit the "on-premises" and "off-premises" sale of unfortified wine.wine24and premixed cocktails.25[ ] FOR26[ ] AGAINST27(2) To permit the "on-premises" sale only of unfortified wine.wine and premixed28cocktails.29[ ] FOR30[ ] AGAINST31(3) To permit the "off-premises" sale only of unfortified wine.wine and premixed32cocktails.33[ ] FOR34[ ] AGAINST35 (e) Determining Results of Unfortified Wine Election. – The kind of unfortified wine36 alcoholic beverage sales described in each proposition that receives a majority of votes "FOR"37 shall be allowed. If one of the propositions receiving a majority of votes "FOR" is proposition38 (1), then the kind of sales described in that proposition shall be allowed, regardless of the vote39 on any other proposition at that election.40 …41 (h) Mixed Beverage Elections. – The ballot for a mixed beverage election shall state the42 proposition as follows:43 To permit the sale of mixed beverages in hotels, restaurants, private clubs, community44 theatres, and convention centers and the "on-premises" and "off-premises" sale of malt beverages45 and unfortified wine malt beverages, unfortified wine, and premixed cocktails in qualified46 establishments.47 [ ] FOR48 [ ] AGAINST"49SECTION 22.(w) G.S. 18B-603, as amended by Section 17(b) of this act, reads as50 rewritten:51 "§ 18B-603. Effect of alcoholic beverage elections on issuance of permits.Page 26 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251 …2 (d) Mixed Beverage Elections. – If a mixed beverage election is held under3 G.S. 18B-602(h) and the sale of mixed beverages is approved, the Commission may issue permits4 to qualified persons and establishments in the jurisdiction that held the election as follows:5…6(3a) The Commission may issue either any of the following permits in any7jurisdiction that has voted to permit the sale of mixed beverages, regardless of8any other local act concerning sales of those kinds of alcoholic beverages:9a. On-premises malt beverage permits to any establishment that meets10the requirements of G.S. 18B-1001(1).11b. On-premises unfortified wine permits to any establishment that meets12the requirements of G.S. 18B-1001(3).13c. On-premises fortified wine permits to any establishment that meets the14requirements of G.S. 18B-1001(5).15…16 (d2) If a county or city holds a mixed beverage election and an ABC store election at the17 same time and the voters approve the sale of mixed beverages but do not approve the18 establishment of an ABC store, the Commission may issue mixed beverages permits in that19 county or city.20 …21 (h) Permits Based on Existing Permits. – In any county which borders on the Atlantic22 Ocean and where (i) the sale of malt beverage on and off premises, the sale of unfortified wine23 on and off premises, the sale of mixed beverages, and the operation of an ABC system has been24 allowed in at least six cities in the county, or in any county adjacent to that county in which an25 ABC system has been allowed, or (ii) the sale of malt beverage on and off premises, the sale of26 unfortified wine on and off premises, the sale of mixed beverages, and the operation of an ABC27 system has been allowed in at least eight cities in the county, the Commission may issue permits28 to sports clubs as defined in G.S. 18B-1000(8) throughout the county.29 The Commission may issue any of the following permits:30(1) On and Off Premises Malt Beverage;Beverage.31(2) On and Off Premises Unfortified Wine;Wine.32(3) On and Off Premises Fortified Wine; orWine.33(4) Mixed Beverages.34 The Commission may also issue on-premises malt beverage, unfortified wine, fortified wine35 wine, and mixed beverages permits to a sports club located in a county adjacent to any county36 that has approved the sale of mixed beverages pursuant to G.S. 18B-603(d1), if the county in37 which the sports club is located borders another state and has at least one city that has approved38 the sale of mixed beverages. Sports clubs holding mixed beverages permits shall purchase their39 spirituous liquor at the nearest ABC system store that is located in the county. Sports clubs40 holding malt beverage, unfortified wine, fortified wine, or mixed beverages permits may41 purchase premixed cocktails from a premixed cocktail wholesaler permittee licensed under this42 Chapter or at the nearest ABC system store that is located in the county.43 The Commission may further issue on-premises malt beverage and on-premises unfortified44 wine permits to a sports club located in a county bordering on another state that is adjacent to45 any county in which permits were issued pursuant to this subsection prior to August 1, 1993. The46 sports clubs must be located in the unincorporated areas of a county, in which the sale of malt47 beverages and unfortified wine is not permitted, and where there are six or more municipalities48 in that county where the sale of malt beverages and unfortified wine is permitted.49 (i) Service Business Permits. – The Commission may only issue service business permits50 provided for in G.S. 18B-1001(26) to qualified persons and establishments located within aHouse Bill 921-Second Edition Page 27General Assembly Of North Carolina Session 20251 jurisdiction in which on-premises malt beverage permits or on-premises unfortified wine permits2 may be issued, subject to the following restrictions:3(1) If on-premises malt beverage permits, but not on-premises unfortified wine4permits, may be issued in the jurisdiction, the service business permittee may5furnish only malt beverages and premixed cocktails to customers.6(2) If on-premises unfortified wine permits, but not on-premises malt beverage7permits, may be issued in the jurisdiction, the service business permittee may8furnish only unfortified wine and premixed cocktails to customers.9(3) If on-premises malt beverage permits and on-premises unfortified wine10permits may be issued in the jurisdiction, the service business permittee may11furnish malt beverages beverages, premixed cocktails, and unfortified wine to12customers."13SECTION 22.(x) G.S. 18B-701(a) reads as rewritten:14 "(a) Powers. – A local board shall have authority to do all of the following:15(1) Buy, sell, transport, and possess alcoholic beverages as necessary for the16operation of its ABC stores. In providing delivery of spirituous liquor and17premixed cocktails to a mixed beverages permittee, as required by18G.S. 18B-404(f), the local board may use its employees or contract with one19or more independent contractors and may charge a fee to the permittee. A20mixed beverage permittee may contract with an independent contractor to21provide delivery of spirituous liquor and premixed cocktails from an ABC22board's store or warehouse to the permittee's premises.23(1a) Contract with an independent contractor to provide delivery of its spirituous24liquor and premixed cocktails from the local board's warehouse to the local25board's ABC stores, provided all of the following conditions are met:26…27e. The independent contractor contractually assumes liability for any28damage, breakage, or theft of the spirituous liquor alcoholic beverages29to be delivered from the time possession is taken by the independent30contractor from the local board until delivery of the spirituous liquor31alcoholic beverages to the ABC store is acknowledged in writing by32the manager or an employee of that ABC store.33…."34SECTION 22.(y) G.S. 18B-707 reads as rewritten:35 "§ 18B-707. Authority to sample spirituous liquor and premixed cocktail products.36 Notwithstanding G.S. 18B-201(d) and G.S. 133-32, and any other provision of law, members37 of a local board and general managers or store managers of ABC stores may consume samples38 of spirituous liquor and premixed cocktail products under consideration for approval for sale by39 the local board, free of charge. No person may consume more than one 0.25 ounce tasting sample40 of each product for this purpose. Such a sample shall not constitute a gift for purposes of41 G.S. 133-32. Tastings may be conducted pursuant to this section on property owned by the local42 board but may not be conducted in publicly accessible areas of any ABC store."43SECTION 22.(z) G.S. 18B-708 reads as rewritten:44 "§ 18B-708. Sale of certain spirituous liquors and premixed cocktails below distiller's price.45 (a) Notwithstanding G.S. 18B-804(b), G.S. 18B-804(b) and (e), the Commission may46 authorize a local board to sell certain spirituous liquors and premixed cocktails below the price47 paid by the local board for the spirituous liquors, alcoholic beverages, including the bailment48 charge and surcharge, upon request from the local board. Before allowing the local board to sell49 spirituous liquor or premixed cocktails below the price paid by the local board, the Commission50 shall verify that allowing the price reduction will not cause the local board to operate at an annualPage 28 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251 net loss or, if the local board was already operating at a loss, will not cause the local board to2 incur additional annual net revenue losses.3 …."4SECTION 22.(aa) G.S. 18B-800, as amended by Section 4(a) of this act, reads as5 rewritten:6 "§ 18B-800. Sale of alcoholic beverages in ABC stores.7 (a) Spirituous Liquor. – Except as provided in Articles 10 and 11 of this Chapter,8 spirituous liquor may be sold only in ABC stores operated by local boards. For purposes of this9 subsection, the term "sold only in ABC stores operated by local boards" includes online orders10 placed in accordance with subsection (c3) of this section.11 (a1) Premixed Cocktails. – In addition to spirituous liquor, ABC stores may sell premixed12 cocktails.13 (b) Fortified Wine. – In addition to spirituous liquor, liquor and premixed cocktails, ABC14 stores may sell fortified wine. ABC stores may also sell wine products, irrespective of alcohol15 content by volume, which were classified as fortified wine by the ABC Commission prior to July16 7, 2004.17 (b1) Consumer Specialty Items. – ABC stores may sell branded consumer specialty items18 such as bottle or can openers, cork screws, muddlers, ashtrays, shopping bags, individual can19 coolers, drinking glasses, clothing, or key chains that are packaged with a spirituous liquor or20 premixed cocktail product. A branded consumer specialty item shall not include a tobacco, vapor,21 or hemp product or tobacco, vapor, or hemp paraphernalia. The Commission may approve the22 retail price for a spirituous liquor or premixed cocktail product packaged by the producer with23 one or more branded specialty items at a different price than an individual bottle or container of24 the same spirituous liquor or premixed cocktail product. The local board shall not remove a25 spirituous liquor or premixed cocktail product packaged by the producer with one or more26 branded specialty items from the package.27 …28 (c2) Orders of Distillery Products by Mixed Beverages Permittees. – A local board shall29 fulfill an order by a mixed beverages permittee for individual bottles or cases of spirituous liquor30 and premixed cocktails produced by a distillery that are listed as a regular code item for sale in31 the State. If a local board cannot fulfill an order of a mixed beverages permittee for individual32 bottles or cases of spirituous liquor or premixed cocktails produced by a distillery that are listed33 as a regular code item for sale in the State because the product ordered is not in the local board's34 stock inventory or the order cannot otherwise be fulfilled within the time period requested by the35 permittee, either of the following shall occur:36(1) The permittee may request to have an eligible distillery that produces the37ordered product ship the product directly to the local board. The local board38shall notify the Commission within 48 hours of the request for the order and39request authorization for direct shipment. The Commission shall then40determine if the eligible distillery desires to directly ship the ordered product41directly to the local board, and if so, the Commission shall authorize the42eligible distillery to ship the spirituous liquor or premixed cocktails ordered43to the local board for the fulfillment of the mixed beverages permittee's order.44Merchandise authorized to be shipped by direct shipment under this45subdivision shall be consigned by the State ABC warehouse to the distiller's46account in care of the local board. The local board shall acknowledge receipt47of the merchandise on the shipping documents and forward them to the State48ABC warehouse for processing through the accounting system as though the49merchandise were shipped from the State ABC warehouse. As used in this50subdivision, an "eligible distillery" is a distillery (i) that sells, to consumers at51the distillery, to exporters, to local boards, and to private or public agencies orHouse Bill 921-Second Edition Page 29General Assembly Of North Carolina Session 20251establishments of other states or nations, fewer than 10,000 proof gallons of2in-house brand spirituous liquors and premixed cocktails distilled or produced3and manufactured by it at the permit holder's distillery per year, and (ii) that4is either the holder of a distillery permit pursuant to G.S. 18B-1105 or is a5business located outside the State that is licensed or permitted to manufacture6spirituous liquor and premixed cocktails in the jurisdiction where the business7is located and whose products are lawfully sold in this State.8(2) If the permittee does not request direct shipment pursuant to subdivision (1)9of this subsection, the local board shall provide a waiver to be obtained by the10permittee in person at the ABC store with the portion of the permittee's order11that the local board was able to fulfill, if any. The waiver shall authorize the12permittee to purchase the product from any other ABC store in the State that13is designated as a mixed beverage ABC store pursuant to G.S. 18B-404(c).14The Commission shall create a standard waiver form to include the name of15the permittee and the permittee's establishment, the permit number of the16permitted establishment, the name and code item of the ordered product, the17date on which the local board was unable to fulfill the order, and the signature18of a representative of the local board that could not fulfill the order or the19manager of the ABC store that provided the waiver form. The waiver shall be20valid for 90 calendar days from the date of issuance. The permittee may21purchase the ordered product as provided on the waiver at any other ABC22store in the State that is designated as a mixed beverage ABC store pursuant23to G.S. 18B-404(c) upon presentation and relinquishment of the waiver at the24ABC store.25 …."26SECTION 22.(bb) G.S. 18B-801(d) reads as rewritten:27 "(d) Insolvent ABC System. – If an ABC system is insolvent, the local board may apply28 to the Commission for an order to close the system. Upon receipt of an application, or upon its29 own motion, the Commission shall investigate the system, and if it finds that further operation of30 the ABC stores will not be profitable, it may order the system closed. If the Commission orders31 a local system to close, the Commission may:may do any of the following:32(1) After consultation with the local board, its creditors, and other interested33parties, schedule a phase out of the system's business activities;activities.34(2) Represent the local board in negotiations with creditors and other interested35parties;parties.36(3) Require an accounting or auditing of the local system;system.37(4) Take possession or arrange for the disposition of any liquor or premixed38cocktails for which the local board has not paid;paid.39(5) Apply to the Superior Court to be appointed as receiver for the local board40with all powers and duties of a receiver for a corporation under Article 38 of41Chapter 1 of the General Statutes, except that the Commission shall not be42required to post the bond required by G.S. 1-504; orG.S. 1-504.43(6) Take any other reasonable steps to promote an orderly closing of the system."44SECTION 22.(cc) G.S. 18B-804 reads as rewritten:45 "§ 18B-804. Alcoholic beverage pricing.46 (a) Uniform Price of Spirituous Liquor. – The retail price of spirituous liquor sold in ABC47 stores and permitted distilleries shall be uniform throughout the State, unless otherwise provided48 by the ABC law. The retail price of premixed cocktails sold in ABC stores shall be uniform49 throughout the State.50 (b) Sale Price of Spirituous Liquor. – The sale of spirituous liquor, including antique51 spirituous liquor, sold at the uniform State price shall consist of the following components:Page 30 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251…2(8) If the spirituous liquor is sold to a mixed beverage permittee or mobile bar3services permittee for resale in mixed beverages, a charge of twenty dollars4($20.00) on each four liters and a proportional sum on lesser quantities. This5subdivision shall not apply to premixed cocktails sold to a mixed beverage6permittee in a closed package for resale in or from the closed package, and a7mixed beverages tax stamp shall not be required on these closed packages.8(9) If the spirituous liquor is sold to a guest room cabinet permittee for resale, a9charge of twenty dollars ($20.00) on each four liters and a proportional sum10on lesser quantities.11 …12 (e) Sale Price of Premixed Cocktails. – The retail price of premixed cocktails sold in13 ABC stores shall be established by the Commission and shall be uniform throughout the State.14 This price shall not affect the price of premixed cocktails sold outside of ABC stores. The sale15 of premixed cocktails sold at the uniform State price in ABC stores shall consist of the following16 components:17(1) The distiller's price.18(2) The freight and bailment charges of the State warehouse as determined by the19Commission.20(3) A markup for local boards as determined by the Commission.21(4) The tax levied under G.S. 105-113.80(d).22(5) An additional markup for local boards equal to three and one-half percent (3231/2%) of the sum of subdivisions (1), (2), and (3) of this subsection.24(6) A charge of one cent (1¢) on each bottle containing 50 milliliters or less and25five cents (5¢) on each bottle containing more than 50 milliliters. For any26nonbottled product, a charge of one cent (1¢) on each stock keeping unit27containing not more than 50 milliliters and five cents (5¢) on each stock28keeping unit containing more than 50 milliliters.29(7) The bailment surcharge.30(8) An additional charge for local boards of one cent (1¢) on each bottle31containing 50 milliliters or less and five cents (5¢) on each bottle containing32more than 50 milliliters. For any nonbottled product, a charge of one cent (1¢)33on each stock keeping unit containing not more than 50 milliliters and five34cents (5¢) on each stock keeping unit containing more than 50 milliliters.35(9) A rounding adjustment, the formula of which may be determined by the36Commission, so that the sale price will be divisible by five."37SECTION 22.(dd) G.S. 18B-805 reads as rewritten:38 "§ 18B-805. Distribution of revenue.39 …40 (b) Primary Distribution. – Before making any other distribution, a local board shall first41 pay the following from its gross receipts:42…43(4) Each month the local board shall pay to the county commissioners of the44county where the charge is charges are collected the proceeds from the charge45charges required by G.S. 18B-804(b)(6), G.S. 18B-804(b)(6) and (e)(6), to be46spent by the county commissioners for the purposes stated in subsection (h)47of this section.48 (c) Other Statutory Distributions. – After making the distributions required by subsection49 (b), a local board shall make the following quarterly distributions from the remaining gross50 receipts.House Bill 921-Second Edition Page 31General Assembly Of North Carolina Session 20251(1) Before making any other distribution under this subsection, the local board2shall set aside the clear proceeds of the three and one-half percent (3 ½%)3markup provided for in G.S. 18B-804(b)(5) and (e)(5) and the charge charges4provided for in G.S. 18B-804(b)(6b), G.S. 18B-804(b)(6b) and (e)(8), to be5distributed as part of the remaining gross receipts under subsection (e) of this6section.7…8 (i) Calculation of Statutory Distributions When Liquor or Premixed Cocktails Sold at9 Less Than Uniform Price. – If a local board sells liquor or premixed cocktails at less than the10 uniform State price, distributions required by subsections (b) and (c) shall be calculated as though11 the liquor was or premixed cocktails were sold at the uniform price."12SECTION 22.(ee) G.S. 18B-900 reads as rewritten:13 "§ 18B-900. Qualifications for permit.14 (a) Requirements. – To be eligible to receive and to hold an ABC permit, a person must15 satisfy all of the following requirements:16…17(2) Be a resident of North Carolina, unless any of the following apply:18…19c. The person is applying for a nonresident malt beverage vendor permit,20a nonresident wine vendor permit, a nonresident premixed cocktail21vendor permit, a nonresident spirituous liquor vendor permit, or a22vendor representative permit.23…24 To avoid undue hardship, however, the Commission may decline to take action under25 G.S. 18B-104 against a permittee who is in violation of subdivisions (3), (4), or (5) of this26 subsection.27 …28 (d) Manager of Off-Premises Establishment. – Although the manager of an establishment29 operated by a corporation and holding off-premises permits for malt beverages, unfortified wine,30 or fortified wine is not otherwise required to meet the requirements of this section, the manager31 must be at least 19 years old and must meet the requirements of subdivisions (3), (4), (5) and (6)32 of subsection (a) of this section.33 …."34SECTION 22.(ff) G.S. 18B-902, as amended by Section 17(c) of this act, reads as35 rewritten:36 "§ 18B-902. Application for permit; fees.37 …38 (d) Fees. – An application for an ABC permit shall be accompanied by payment of the39 following application fee:40…41(20) Malt beverage importer permit – $300.00.42(21) Malt beverage wholesaler permit – $300.00.43(21a) Premixed cocktail wholesaler permit – $300.00.44…45(25) Nonresident malt beverage vendor permit – $100.00.46(26) Nonresident wine vendor permit – $100.00.47(26a) Nonresident premixed cocktail vendor permit – $100.00.48…49(44) Spirituous liquor special event permit – $200.00.50(44a) Premixed cocktail special event permit – $200.00.51…."Page 32 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251SECTION 22.(gg) G.S. 18B-903, as amended by Section 17(d) of this act, reads as2 rewritten:3 "§ 18B-903. Duration of permit; renewal and transfer.4 …5 (c) Change in Ownership. –6…7(2) Notwithstanding subsection (e) of this section, any person who through8contract, lease, management agreement, or change of ownership or transfer of9business as provided in subdivision (1) of this subsection becomes lawfully10entitled to use and control of the premises of an establishment that holds11permits immediately prior to such change of ownership may continue to12operate the establishment, as successor to the prior permittee, to the same13extent as the predecessor permittee until the person receives a temporary or14new permit, including purchasing malt beverages, unfortified wine, premixed15cocktails, or fortified wine to be resold for on-premises or off-premises16consumption, or spirituous liquor for use in mixed beverages sold by the17establishment, as applicable under the permit, subject to the following18limitations:19…."20SECTION 22.(hh) G.S. 18B-1001, as amended by Sections 2, 12(b), 17(f), 23(a),21 and 24 of this act, reads as rewritten:22 "§ 18B-1001. Kinds of ABC permits; places eligible.23 When the issuance of the permit is lawful in the jurisdiction in which the premises are located,24 the Commission may issue the following kinds of permits:25(1) On-Premises Malt Beverage Permit. – An on-premises malt beverage permit26authorizes (i) the retail sale of malt beverages for consumption on the27premises, either alone or mixed with other beverages, (ii) the retail sale of malt28beverages in the manufacturer's original container for consumption off the29premises, and (iii) the retail sale of malt beverages in a cleaned and sanitized30container that is filled or refilled and sealed for consumption off the premises31and that identifies the permittee and the date the container was filled or32refilled. refilled, and (iv) the retail sale of premixed cocktails in the33manufacturer's original container for consumption on or off the premises. The34permit also authorizes the permittee to transfer malt beverages, beverages and35premixed cocktails, not more than four times per calendar year, to another36on-premises malt beverage permittee that is under common ownership or37control as the transferor. Except as authorized by this subdivision, transfers of38malt beverages or premixed cocktails by on-premises malt beverage39permittees, purchases of malt beverages or premixed cocktails by a retail40permittee from another retail permittee for the purpose of resale, and sales of41malt beverages or premixed cocktails by a retail permittee to another retail42permittee for the purpose of resale are unlawful. In addition, a particular brand43of malt beverages or premixed cocktails may be transferred only if both the44transferor and transferee are located within the territory designated between45the brewery or distiller and the wholesaler on file with the Commission. Prior46to or contemporaneous with any such transfer, the transferor shall notify each47wholesaler who distributes the transferred product of the transfer. The notice48shall be in writing or verifiable electronic format and shall identify the49transferor and transferee, the date of the transfer, quantity, and items50transferred. It also authorizes the holder of the permit to ship malt beveragesHouse Bill 921-Second Edition Page 33General Assembly Of North Carolina Session 20251or premixed cocktails in closed containers to individual purchasers inside and2outside the State. The permit may be issued for any of the following:3a. Restaurants.4b. Hotels.5c. Eating establishments.6d. Food businesses.7e. Retail businesses.8f. Private clubs.9g. Convention centers.10h. Community theatres.11i. Breweries as authorized by subdivisions (7) and (8) of12G.S. 18B-1104(a).13j. Sports and entertainment venues.14k. Bars.15l. The holder of a distillery permit authorized under G.S. 18B-1105.16m. Wineries as authorized by G.S. 18B-1101(5a) and G.S. 18B-1102(5a).17(2) Off-Premises Malt Beverage Permit. – An off-premises malt beverage permit18authorizes (i) the retail sale of malt beverages or premixed cocktails in the19manufacturer's original container for consumption off the premises, (ii) the20retail sale of malt beverages in a cleaned and sanitized container that is filled21or refilled and sealed for consumption off the premises and that identifies the22permittee and the date the container was filled or refilled, and (iii) the holder23of the permit to ship malt beverages or premixed cocktails in closed containers24to individual purchasers inside and outside the State. The permit also25authorizes the permittee to transfer malt beverages, beverages and premixed26cocktails, not more than four times per calendar year, to another off-premises27malt beverage permittee that is under common ownership or control as the28transferor. Except as authorized by this subdivision, transfers of malt29beverages or premixed cocktails by off-premises malt beverage permittees,30purchases of malt beverages or premixed cocktails by a retail permittee from31another retail permittee for the purpose of resale, and sales of malt beverages32or premixed cocktails by a retail permittee to another retail permittee for the33purpose of resale are unlawful. In addition, a particular brand of malt34beverages or premixed cocktails may be transferred only if both the transferor35and transferee are located within the territory designated between the brewery36or distiller and the wholesaler on file with the Commission. Prior to or37contemporaneous with any such transfer, the transferor shall notify each38wholesaler who distributes the transferred product of the transfer. The notice39shall be in writing or verifiable electronic format and shall identify the40transferor and transferee, the date of the transfer, quantity, and items41transferred. The permit may be issued for any of the following:42a. Restaurants.43b. Hotels.44c. Eating establishments.45d. Food businesses.46e. Retail businesses.47f. The holder of a brewing, distillation, and fermentation course48authorization under G.S. 18B-1114.6. A school obtaining a permit49under this subdivision is authorized to sell malt beverages50manufactured during its brewing, distillation, and fermentation51program at one noncampus location in a county where the permitteePage 34 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251holds and offers classes on a regular full-time basis in a facility owned2by the permittee.3(3) On-Premises Unfortified Wine Permit. – An on-premises unfortified wine4permit authorizes (i) the retail sale of unfortified wine for consumption on the5premises, either alone or mixed with other beverages, (ii) the retail sale of6unfortified wine in the manufacturer's original container for consumption off7the premises, (iii) the retail sale of unfortified wine dispensed from a tap8connected to a pressurized container utilizing carbon dioxide or similar gas9into a cleaned and sanitized container that is filled or refilled and sealed for10consumption off the premises and that identifies the permittee and the date the11container was filled or refilled, and (iv) wine tastings conducted at a12consumer's private residence or a location not holding a permit under this13section where consumers are educated about selection, serving, and storing of14wine by the permittee or the permittee's employee or agent utilizing wine from15the permit holder's inventory and consumers may purchase wine for future16delivery or pick up at the permittee's permitted premises. premises, and (v) the17retail sale of premixed cocktails in the manufacturer's original container for18consumption on or off the premises. The permit also authorizes the permittee19to transfer unfortified wine, wine or premixed cocktails, not more than four20times per calendar year, to another on-premises unfortified wine permittee that21is under common ownership or control as the transferor. Except as authorized22by this subdivision, transfers of wine or premixed cocktails by on-premises23unfortified wine permittees, purchases of wine or premixed cocktails by a24retail permittee from another retail permittee for the purpose of resale, and25sale of wine or premixed cocktails by a retail permittee to another retail26permittee for the purpose of resale are unlawful. In addition, a particular brand27of wine or premixed cocktails may be transferred only if both the transferor28and transferee are located within the territory designated between the winery29or distiller and the wholesaler on file with the Commission. Prior to or30contemporaneous with any such transfer, the transferor shall notify each31wholesaler who distributes the transferred product of the transfer. The notice32shall be in writing or verifiable electronic format and shall identify the33transferor and transferee, the date of the transfer, quantity, and items34transferred. The holder of the permit is authorized to ship unfortified wine or35premixed cocktails in closed containers to individual purchasers inside and36outside the State. Orders received by a winery by telephone, internet, mail,37facsimile, or other off-premises means of communication shall be shipped38pursuant to a wine shipper permit and not pursuant to this subdivision. The39permit may be issued for any of the following:40a. Restaurants.41b. Hotels.42c. Eating establishments.43d. Private clubs.44e. Convention centers.45f. Cooking schools.46g. Community theatres.47h. Wineries.48i. Wine producers.49j. Retail businesses.50k. Sports and entertainment venues.51l. Bars.House Bill 921-Second Edition Page 35General Assembly Of North Carolina Session 20251m. The holder of a distillery permit authorized under G.S. 18B-1105.2n. Breweries.3Additionally, an on-premises unfortified wine permit authorizes a permittee4that is a restaurant, eating establishment, hotel, private club, bar, brewery,5winery, or wine producer to sell at retail single-serving unfortified wine drinks6for consumption off the premises, including delivery by the permittee or a7delivery service permittee. Single-serving unfortified wine drinks sold for8consumption off the premises must be sold with food and shall be packaged9in a container with a secure lid or cap and in a manner designed to prevent10consumption without removal of the lid or cap. The container shall be no11greater than 24 fluid ounces. In accordance with G.S. 20-138.7, the12transportation of single-serving unfortified wine drinks in a motor vehicle13shall not be unlawful if the container is an unopened manufacturer's original14container or is transported in a locked container, in the trunk, or in the area15behind the last upright seat in a motor vehicle not equipped with a trunk.16Notwithstanding G.S. 18B-1010, the sale of more than two single-serving17unfortified wine drinks at one time shall not be unlawful if the single-serving18unfortified wine drinks are sold for delivery or consumption off the permittee's19premises. No single-serving unfortified wine by the drink ordered for20off-premises consumption shall be provided to any person other than the21purchaser of the single-serving unfortified wine drink, except that in the case22of delivery, the delivery service permittee through its employees or agents23may provide the single-serving unfortified wine drink to a person other than24the purchaser if the permittee or the permittee's employees or agents verify25that the person is over 21 years of age using age verification software requiring26the recipient to provide a form of photographic identification authorized in27G.S. 18B-302(d)(1).28(4) Off-Premises Unfortified Wine Permit. – An off-premises unfortified wine29permit authorizes (i) the retail sale of unfortified wine or premixed cocktails30in the manufacturer's original container for consumption off the premises, (ii)31the retail sale of unfortified wine dispensed from a tap connected to a32pressurized container utilizing carbon dioxide or similar gas into a cleaned33and sanitized container that is filled or refilled and sealed for consumption off34the premises and that identifies the permittee and the date the container was35filled or refilled, and (iii) the holder of the permit to ship unfortified wine or36premixed cocktails in closed containers to individual purchasers inside and37outside the State. The permit may be issued for retail businesses. The permit38also authorizes the permittee to transfer unfortified wine, wine or premixed39cocktails, not more than four times per calendar year, to another off-premises40unfortified wine permittee that is under common ownership or control as the41transferor. Except as authorized by this subdivision, transfers of wine or42premixed cocktails by off-premises unfortified wine permittees, purchases of43wine or premixed cocktails by a retail permittee from another retail permittee44for the purpose of resale, and sale of wine or premixed cocktails by a retail45permittee to another retail permittee for the purpose of resale are unlawful. In46addition, a particular brand of wine or premixed cocktails may be transferred47only if both the transferor and transferee are located within the territory48designated between the winery or distiller and the wholesaler on file with the49Commission. Prior to or contemporaneous with any such transfer, the50transferor shall notify each wholesaler who distributes the transferred product51of the transfer. The notice shall be in writing or verifiable electronic formatPage 36 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251and shall identify the transferor and transferee, the date of the transfer,2quantity, and items transferred. The permit may also be issued to the holder3of a viticulture/enology course authorization under G.S. 18B-1114.4. A4school obtaining a permit under this subdivision is authorized to sell wines5manufactured during its viticulture/enology program at one non-campus6location in a county where the permittee holds and offers classes on a regular7full-time basis in a facility owned by the permittee. The permit may also be8issued for a winery or a wine producer for sale of its own unfortified wine9during hours when the winery or wine producer's premises is open to the10public, subject to any local ordinance adopted pursuant to G.S. 18B-1004(d)11concerning hours for the retail sale of unfortified wine. A winery obtaining a12permit under this subdivision is authorized to sell wine manufactured by the13winery at one additional location in the county under the same conditions14specified in G.S. 18B-1101(5) for the sale of wine at the winery; provided,15however, that no other alcohol sales shall be authorized at the additional16location. Orders received by a winery by telephone, internet, mail, facsimile,17or other off-premises means of communication shall be shipped pursuant to a18wine shipper permit and not pursuant to this subdivision.19(5) On-Premises Fortified Wine Permit. – An on-premises fortified wine permit20authorizes (i) the retail sale of fortified wine for consumption on the premises,21either alone or mixed with other beverages, and (ii) the retail sale of fortified22wine in the manufacturer's original container for consumption off the23premises. premises, and (iii) the retail sale of premixed cocktails in the24manufacturer's original container for consumption on or off the premises. The25permit also authorizes the permittee to transfer fortified wine, wine or26premixed cocktails, not more than four times per calendar year, to another27on-premises fortified wine permittee that is under common ownership or28control as the transferor. Except as authorized by this subdivision, transfers of29wine or premixed cocktails by on-premises fortified wine permittees,30purchases of wine or premixed cocktails by a retail permittee from another31retail permittee for the purpose of resale, and sale of wine or premixed32cocktails by a retail permittee to another retail permittee for the purpose of33resale are unlawful. In addition, a particular brand of wine or premixed34cocktails may be transferred only if both the transferor and transferee are35located within the territory designated between the winery or distiller and the36wholesaler on file with the Commission. Prior to or contemporaneous with37any such transfer, the transferor shall notify each wholesaler who distributes38the transferred product of the transfer. The notice shall be in writing or39verifiable electronic format and shall identify the transferor and transferee, the40date of the transfer, quantity, and items transferred. The holder of the permit41is authorized to ship fortified wine or premixed cocktails in closed containers42to individual purchasers inside and outside the State. Orders received by a43winery by telephone, internet, mail, facsimile, or other off-premises means of44communication shall be shipped pursuant to a wine shipper permit and not45pursuant to this subdivision. The permit may be issued for any of the46following:47a. Restaurants.48b. Hotels.49c. Private clubs.50d. Community theatres.51e. Wineries.House Bill 921-Second Edition Page 37General Assembly Of North Carolina Session 20251f. Convention centers.2g. Bars.3h. The holder of a distillery permit authorized under G.S. 18B-1105.4i. Sports and entertainment venues.5j. Breweries.6Additionally, an on-premises fortified wine permit authorizes a permittee that7is a restaurant, hotel, private club, bar, brewery, or winery to sell at retail8single-serving fortified wine drinks for consumption off the premises,9including delivery by the permittee or a delivery service permittee.10Single-serving fortified wine drinks sold for consumption off the premises11must be sold with food and shall be packaged in a container with a secure lid12or cap and in a manner designed to prevent consumption without removal of13the lid or cap. The container shall be no greater than 24 fluid ounces. In14accordance with G.S. 20-138.7, the transportation of single-serving fortified15wine drinks in a motor vehicle shall not be unlawful if the container is an16unopened manufacturer's original container or is transported in a locked17container, in the trunk, or in the area behind the last upright seat in a motor18vehicle not equipped with a trunk. Notwithstanding G.S. 18B-1010, the sale19of more than two single-serving fortified wine drinks at one time shall not be20unlawful if the single-serving fortified wine drinks are sold for delivery or21consumption off the permittee's premises. No single-serving fortified wine by22the drink ordered for off-premises consumption shall be provided to any23person other than the purchaser of the single-serving fortified wine drink,24except that in the case of delivery, the delivery service permittee through its25employees or agents may provide the single-serving fortified wine drink to a26person other than the purchaser if the permittee or the permittee's employees27or agents verify that the person is over 21 years of age using age verification28software requiring the recipient to provide a form of photographic29identification authorized in G.S. 18B-302(d)(1).30(6) Off-Premises Fortified Wine Permit. – An off-premises fortified wine permit31authorizes the retail sale of fortified wine or premixed cocktails in the32manufacturer's original container for consumption off the premises and it33authorizes the holder of the permit to ship fortified wine or premixed cocktails34in closed containers to individual purchasers inside and outside the State. The35permit may be issued for food businesses. The permit may also be issued for36a winery for sale of its own fortified wine. Orders received by a winery by37telephone, internet, mail, facsimile, or other off-premises means of38communication shall be shipped pursuant to a wine shipper permit and not39pursuant to this subdivision. The permit also authorizes the permittee to40transfer fortified wine, wine or premixed cocktails, not more than four times41per calendar year, to another off-premises fortified wine permittee that is42under common ownership or control as the transferor. Except as authorized43by this subdivision, transfers of wine or premixed cocktails by off-premises44fortified wine permittees, purchases of wine or premixed cocktails by a retail45permittee from another retail permittee for the purpose of resale, and sale of46wine or premixed cocktails by a retail permittee to another retail permittee for47the purpose of resale are unlawful. In addition, a particular brand of wine or48premixed cocktails may be transferred only if both the transferor and49transferee are located within the territory designated between the winery or50distiller and the wholesaler on file with the Commission. Prior to or51contemporaneous with any such transfer, the transferor shall notify eachPage 38 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251wholesaler who distributes the transferred product of the transfer. The notice2shall be in writing or verifiable electronic format and shall identify the3transferor and transferee, the date of the transfer, quantity, and items4transferred.5(7) Brown-Bagging Permit. – A brown-bagging permit authorizes each individual6patron of an establishment, with the permission of the permittee, to bring up7to eight liters of premixed cocktails, fortified wine wine, or spirituous liquor,8or eight liters of the two three combined, onto the premises and to consume9those alcoholic beverages on the premises. The permit may be issued for any10of the following:11a. Restaurants.12b. Hotels.13c. Private clubs.14d. Community theatres.15e. Congressionally chartered veterans organizations.16f. Bars.17(8) Special Occasion Permit. – A special occasion permit authorizes the host of a18reception, party or other special occasion, with the permission of the19permittee, to bring premixed cocktails, fortified wine wine, and spirituous20liquor onto the premises of the business and to serve the same to his those21alcoholic beverages to the host's guests. The permit may be issued for any of22the following:23a. Restaurants.24b. Hotels.25c. Eating establishments.26d. Private clubs.27e. Convention centers.28f. Bars.29g. Sports and entertainment venues.30(9) Limited Special Occasion Permit. – A limited special occasion permit31authorizes the permittee to bring premixed cocktails, fortified wine wine, and32spirituous liquor onto the premises of a business, with the permission of the33owner of that property, and to serve those alcoholic beverages to the34permittee's guests at a reception, party, or other special occasion being held35there. The permit may be issued to any individual other than the owner or36possessor of the premises. An applicant for a limited special occasion permit37shall have the written permission of the owner or possessor of the property on38which the special occasion is to be held.39(10) Mixed Beverages Permit. – A mixed beverages permit authorizes the retail40sale of mixed beverages and premixed cocktails for consumption on the41premises. The permit also authorizes a mixed beverages permittee to obtain42an antique spirituous liquor permit under subdivision (20) of this section and43to use for culinary purposes spirituous liquor lawfully purchased for use in44mixed beverages. The permit may be issued for any of the following:45a. Restaurants.46b. Hotels.47c. Private clubs.48d. Convention centers.49e. Community theatres.50f. Nonprofit organizations.51g. Political organizations.House Bill 921-Second Edition Page 39General Assembly Of North Carolina Session 20251h. Sports and entertainment venues.2i. Bars.3j. The holder of a distillery permit authorized under G.S. 18B-1105.4k. Breweries.5l. Wineries.6Additionally, a mixed beverages permit authorizes a permittee that is a7restaurant, hotel, private club, bar, brewery, winery, or the holder of a8distillery permit to sell at retail mixed beverages and premixed cocktails for9consumption off the premises, including delivery by the permittee or a10delivery service permittee. A mixed beverage sold for consumption off the11premises must be sold with food and shall be (i) a premixed cocktail in the12manufacturer's original closed container, or (ii) packaged in a container with13a secure lid or cap, and in a manner designed to prevent consumption without14removal of the lid or cap. The container shall be no greater than 24 fluid15ounces. In accordance with G.S. 20-138.7, the transportation of a mixed16beverage in a motor vehicle shall not be unlawful if the container is an17unopened manufacturer's original container or is transported in a locked18container, in the trunk, or in the area behind the last upright seat in a motor19vehicle not equipped with a trunk. Notwithstanding G.S. 18B-1010, the sale20of more than two mixed beverage drinks or two premixed cocktails at one time21shall not be unlawful if the mixed beverage drinks or premixed cocktails are22sold for delivery or consumption off the permittee's premises. No mixed23beverage or premixed cocktail ordered for off-premises consumption shall be24provided to any person other than the purchaser of the mixed beverage,25beverage or premixed cocktail, except that in the case of delivery, the delivery26service permittee through its employees or agents may provide the mixed27beverage or premixed cocktail to a person other than the purchaser if the28permittee or the permittee's employees or agents verify that the person is over2921 years of age using age verification software requiring the recipient to30provide a form of photographic identification authorized in31G.S. 18B-302(d)(1).32…33(12) Mixed Beverages Catering Permit. – A mixed beverages catering permit may34be issued to a hotel, restaurant, or distillery. A mixed beverages catering35permit issued to a hotel or restaurant authorizes the hotel or a restaurant to36bring spirituous liquor and premixed cocktails onto the premises where the37hotel or restaurant is catering food for an event and to serve the liquor and38premixed cocktails to guests at the event. A mixed beverages catering permit39issued to a distillery allows the distillery to bring spirituous liquor and40premixed cocktails onto the premises where a hotel or restaurant is catering41food for an event and serve the liquor and premixed cocktails to guests at the42event, regardless of whether the hotel or restaurant also holds a mixed43beverages catering permit.44(12a) Mobile Bar Services Permit. – A mobile bar services permit may be issued to45a business that provides bartending services for events. The permit authorizes46the permittee to (i) bring malt beverages, unfortified wine, premixed cocktails,47fortified wine, and spirituous liquor onto the premises of a business that is not48an ABC permittee and to serve the alcoholic beverages to guests at the event,49and (ii) serve alcoholic beverages to guests at an event occurring on premises50owned or possessed by the holder of the permit. The permittee may purchase51malt beverages and unfortified wine only from a retailer. The permittee mayPage 40 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251purchase fortified wine and spirituous liquor only from an ABC store. If the2permittee serves spirituous liquor, it shall only be spirituous liquor purchased3from an ABC store that is designated as a mixed beverage ABC store operated4by any local board operating in the same county where the permittee's5principal office is located. The permittee may purchase premixed cocktails6either from a retailer or from an ABC store that is designated as a mixed7beverage ABC store operated by any local board operating in the same county8where the permittee's principal office is located. The permittee may store and9serve alcoholic beverages pursuant to a mobile bar services permit on the10premises of any location owned or possessed by the permittee. The permittee11shall notify the Commission, in writing, of the location of any event where the12permittee will serve alcoholic beverages not less than one week before the13event. If an event takes place on premises not owned or possessed by the14permittee, the permittee shall have the permission of the owner or possessor15of the property on which the event is to be held. Any person serving alcoholic16beverages at the event shall be at least 21 years of age. If the event takes place17on premises not owned or possessed by the permittee, alcoholic beverages18may be transported by the mobile bar services permit holder to the premises19of the event no earlier than 8:00 A.M. on the day of the event, and, at the20conclusion of the event, all alcoholic beverages must be removed from the21premises no later than 12:00 noon of the following day. A limited special22occasion permit shall not be required for an event at which alcoholic23beverages are exclusively provided by the holder of a mobile bar services24permit. The holder of a mobile bar services permit may bring alcoholic25beverages onto the premises and serve the alcoholic beverages at an event26regardless of whether there is a charge or fee for guests to attend the event.27This permit does not allow the retail sale of individual alcoholic beverages to28guests at an event. A permittee shall not sell tickets or charge individuals for29entry to any event at which the permittee is providing mobile bar services.30(13) Guest Room Cabinet Permit. – A guest room cabinet permit authorizes a guest31room cabinet permittee to sell to its room guests, from securely locked32cabinets, malt beverages, unfortified wine, premixed cocktails, fortified wine,33and spirituous liquor. A permittee shall designate and maintain at least ten34percent (10%) of the permittee's guest rooms as rooms that do not have a guest35room cabinet. A permittee may dispense alcoholic beverages from a guest36room cabinet only in accordance with written policies and procedures filed37with and approved by the Commission. A permittee shall provide a reasonable38number of vending machines, coolers, or similar machines on premises for the39sale of soft drinks to hotel guests.40A guest room cabinet permit may be issued to any of the following:41a. A hotel (i) holding a mixed beverages permit and (ii) located in a42county subject to G.S. 18B-600(f).43b. A hotel (i) holding a mixed beverages permit and (ii) located in a44county that has a population in excess of 150,000 by the last federal45census.46c. A private club (i) holding a mixed beverages permit, (ii) having47management contracts for the rental of living units, and (iii) located in48a county defined in G.S. 18B-101(13a)b.2.49d. An 18-hole golf course (i) holding a mixed beverages permit or located50in a county where ABC stores have heretofore been established but in51which the sale of mixed beverages has not been approved, (ii) havingHouse Bill 921-Second Edition Page 41General Assembly Of North Carolina Session 20251management contracts for the rental of living units, and (iii) located in2a county that has a population in excess of 20,000 people by the last3federal census.4…5(16) Wine Shop Permit. – A wine shop permit authorizes (i) the retail sale of malt6beverages, unfortified wine, premixed cocktails, and fortified wine in the7manufacturer's original container for consumption off the premises, (ii) the8retail sale of malt beverages or unfortified wine dispensed from a tap9connected to a pressurized container utilizing carbon dioxide or similar gas in10a cleaned and sanitized container that is filled or refilled and sealed for11consumption off the premises and that identifies the permittee and the date the12container was filled or refilled, (iii) wine tastings on the premises conducted13and supervised by the permittee in accordance with subdivision (15) of this14section, and (iv) wine tastings conducted at a consumer's private residence or15a location not holding a permit under this section where consumers are16educated about selection, serving, and storing of wine by the permittee or the17permittee's employee or agent utilizing wine from the permit holder's18inventory and consumers may purchase wine for future delivery or pick-up at19the permittee's permitted premises. It also authorizes the holder of the permit20to ship malt beverages, unfortified wine, premixed cocktails, and fortified21wine in closed containers to individual purchasers inside and outside the State.22The permit may be issued for retail businesses whose primary purpose is23selling malt beverages and wine beverages, wine, and premixed cocktails for24consumption off the premises and regularly and customarily educating25consumers through tastings, classes, and seminars about the selection, serving,26and storing of wine. The holder of the permit is authorized to sell unfortified27wine for consumption on the premises, provided that, except as otherwise28provided in this subdivision, the sale of wine for consumption on the premises29does not exceed forty percent (40%) of the establishment's total sales for any3030-day period. The holder of a wine-tasting permit not engaged in the31preparation or sale of food on the premises is not subject to Part 6 of Article 832of Chapter 130A of the General Statutes. A holder of a wine shop permit shall33also be eligible to hold a malt beverage shop permit under G.S. 18B341001(16a). If the holder of a wine shop permit also holds a malt beverage shop35permit, then the sales of alcoholic beverages for consumption on the premises36may not exceed forty percent (40%) of the establishment's total sales for any3730-day period.38(16a) Malt Beverage Shop Permit. – A malt beverage shop permit authorizes (i) the39retail sale of malt beverages, unfortified wine, premixed cocktails, and40fortified wine in the manufacturer's original container for consumption off the41premises, (ii) the retail sale of malt beverages dispensed from a tap connected42to a pressurized container utilizing carbon dioxide or similar gas in a cleaned43and sanitized container that is filled or refilled and sealed for consumption off44the premises and that identifies the permittee and the date the container was45filled or refilled, and (iii) malt beverage tastings on the premises conducted46and supervised by the permittee in accordance with subdivision (18) of this47section. It also authorizes the holder of the permit to ship malt beverages,48unfortified wine, premixed cocktails, and fortified wine in closed containers49to individual purchasers inside and outside the State. The permit may be issued50for retail businesses whose primary purpose is selling malt beverages for51consumption off the premises and regularly and customarily educatingPage 42 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251consumers through tastings, classes, and seminars about the selection, serving,2and storing of malt beverages. The holder of the permit is authorized to sell3malt beverages for consumption on the premises, provided that, except as4otherwise provided in this subdivision, the sale of malt beverages, combined,5for consumption on the premises does not exceed forty percent (40%) of the6establishment's total sales for any 30-day period. The holder of a malt7beverage tasting permit not engaged in the preparation or sale of food on the8premises is not subject to Part 6 of Article 8 of Chapter 130A of the General9Statutes. A holder of a malt beverage shop permit shall also be eligible to hold10a wine shop permit under G.S. 18B 1001(16). If the holder of a malt beverage11shop permit also holds a wine shop permit, then the sales of alcoholic12beverages for consumption on the premises may not exceed forty percent13(40%) of the establishment's total sales for any 30-day period.14…15(19) Spirituous liquor tasting permit. – The holder of any distillery permit16authorized by G.S. 18B-1105 may conduct a consumer tasting event on the17premises of the distillery subject to the following conditions:18a. Any person pouring spirituous liquor at a tasting shall be an employee19of the distillery and at least 21 years of age.20b. The person pouring the spirituous liquor shall be responsible for21checking the identification of patrons being served at the tasting.22c. Each consumer is limited to tasting samples of 0.25 ounce of each23spirituous liquor which total no more than 1.5 ounces of spirituous24liquor in any calendar day.25d. The consumer shall not be charged for any spirituous liquor tasting26sample.27e. The spirituous liquor used in the consumer tasting event shall be28distilled or produced at the distillery where the event is being held by29the permit holder conducting the event.30f. A consumer tasting event shall not be allowed when the sale of31spirituous liquor the alcoholic beverage offered for tasting is otherwise32prohibited.33g. Tasting samples are not to be offered to, or allowed to be consumed34by, any person under the legal age for consuming spirituous liquor.35h. Consumer tasting events authorized under this subdivision may be36conducted on any part of the licensed premises of the distillery, except37as prohibited by federal law.38The distillery permit holder shall be solely liable for any violations of this39Chapter occurring in connection with the tasting. The Commission shall adopt40rules to assure that the tastings are limited to samplings and not a subterfuge41for the unlawful sale or distribution of spirituous liquor and that the tastings42are not used by industry members for unlawful inducements to retail permit43holders. For purposes of this subdivision, the term "spirituous liquor" includes44premixed cocktails.45…46(22) Airport Central Storage Permit. – A permit under this subdivision may be47issued to the owner of a bonded storage warehouse that meets the federal48Transportation Security Administration (TSA) security standards (49 C.F.R.49§§ 1542.1 through 1542.307). This permit authorizes the permittee to contract50with retail permittees holding permits issued pursuant to G.S. 18B-1001(1),51(3), (5), and (10) with one or more retail locations at airports which serviceHouse Bill 921-Second Edition Page 43General Assembly Of North Carolina Session 20251airplanes boarding at least 150,000 passengers annually to do the following:2(i) store at a central receiving facility located on or within 5 miles of the airport3property and outside the retail permittee's licensed premises alcoholic4beverages to be sold or served at the retail permittee's airport locations as5approved by the Commission and (ii) transport alcoholic beverages from the6central receiving facility to the retail permittee's premises or support locations7within the airport terminal pursuant to subsections (d) and (e) of8G.S. 18B-1115. Alcoholic beverages stored pursuant to this subdivision shall9be the property of the retail permittee. The portion of the airport central storage10permitted premises where the retail permittee's alcoholic beverages are stored11shall be deemed an extension of the retail permittee's permitted premises for12storage only and subject to inspection pursuant to G.S. 18B-503.13(23) Common Carrier Vehicle Permit. – Notwithstanding the results of any local14election, a permit under this subdivision may be issued to a business primarily15engaged in this State in the intrastate operation of common carriers of16passengers and operating under a certificate of authority issued by the North17Carolina Utilities Commission. A common carrier vehicle permit authorizes18the sale or service of malt beverages, unfortified wine, premixed cocktails,19fortified wine, and mixed beverages in the passenger area of a common carrier20of passengers for consumption by passengers in the passenger area during21journeys of 75 miles or longer that do not terminate within 10 miles of the22origin of the journey. The permit issued to the business shall cover all common23carriers of passengers owned by the business. The permit or a copy of the24permit shall be prominently displayed on each common carrier of passengers25on which alcoholic beverages are served or sold. Notwithstanding26G.S. 18B-101(12a), the passenger area of a permittee's common carrier of27passengers constitutes the premises for the permit. This permit shall not allow28consumption of alcohol on a common carrier of passengers by any employee29of the permittee. A permittee may not sell or serve alcoholic beverages to a30passenger between the hours of 2:00 A.M. and 7:00 A.M., and a passenger31may not be allowed to consume alcoholic beverages between the hours of 2:3032A.M. and 7:00 A.M. Notwithstanding G.S. 18B-1004(c) or any local33ordinance, alcoholic beverages may not be sold or consumed before 10:0034A.M. on Sundays. For purposes of this subdivision, a common carrier of35passengers has the same meaning as in G.S. 20-4.01(27)d.36(24) Cotenant Permit. – A permit under this subdivision may be issued to a37restaurant that occupies the same building as another ABC permittee, provided38that the building has no other tenants and the building does not have a common39area that is open to the public but not part of the premises of one of the two40permittees. The permit authorizes the permittee to allow customers to bring41open containers of malt beverages, unfortified wine, premixed cocktails,42fortified wine, or mixed beverages from the premises of the other ABC43permittee who occupies the same building onto the premises of the permit44holder.45(25) Bring Your Own Beverage Permit. – A permit issued under this subdivision46may be issued to an adult live entertainment business as defined in47G.S. 14-202.10. This permit authorizes the permittee to allow patrons to bring48closed containers of malt beverages and unfortified wine malt beverages,49unfortified wine, and premixed cocktails onto the premises and consume the50malt beverages and unfortified wine malt beverages, unfortified wine, and51premixed cocktails on the premises.Page 44 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251(26) Service Business Permit. – A service business permit authorizes the permittee2to furnish complimentary malt beverages and unfortified wine malt beverages,3unfortified wine, and premixed cocktails to customers, in conjunction with the4provision of the service, for consumption on the permittee's premises at no5extra charge to the customers. The permittee may furnish alcoholic beverages6to customers only in accordance with G.S. 18B-603(i). The permittee may not7serve more than two servings of alcoholic beverages to any individual8customer in any calendar day. For purposes of this subdivision, a serving of9malt beverage or premixed cocktail is 16 fluid ounces, and a serving of10unfortified wine is 8 fluid ounces. Notwithstanding G.S. 18B-1006(h), the11permittee may purchase malt beverages and unfortified wine malt beverages,12unfortified wine, and premixed cocktails only from a retailer. The permit may13be issued to service businesses."14SECTION 22.(ii) G.S. 18B-1001.4 reads as rewritten:15 "§ 18B-1001.4. Authorization of delivery service permit.16 (a) Authorization. – The holder of a delivery service permit, or the permit holder's17 employee or independent contractor, may deliver malt beverages, unfortified wine, or fortified18 wine premixed cocktails, fortified wine, or mixed beverages on behalf of a retailer holding a19 permit issued pursuant to subdivisions (1) through (6) (6), (10), and (16) of G.S. 18B-1001, and20 mixed beverages on behalf of a retailer holding a permit issued pursuant to subdivision (3), (5),21 or (10) of G.S. 18B-1001 when delivered in accordance with the requirements of those22 subdivisions, G.S. 18B-1001 to a location designated by the purchaser. Any delivery of23 single-serving wine drinks or mixed beverages pursuant to subdivision (3), (5), or (10) of24 G.S. 18B-1001 shall be delivered in accordance with the requirements of those subdivisions. A25 delivery service permittee may also facilitate delivery through technology services that connect26 consumers and licensed retailers through the use of the internet, mobile applications, and other27 similar technology.28 …29 (e) Scope and Construction. – A delivery service permit is not required for a common30 carrier lawfully transporting or shipping alcoholic beverages. Nothing in this section shall be31 construed as exempting the delivery of alcoholic beverages pursuant to a delivery service permit32 from the requirements set forth in Article 4 of Chapter 18B of the General Statutes. Nothing in33 this section shall be construed to require a technology services company to obtain a delivery34 service permit if the company does not employ or contract with delivery drivers, but rather35 provides software or an application that connects consumers and licensed retailers for the36 delivery of alcoholic beverages from the licensed retailer. Nothing in this section shall be37 construed to require a retailer that holds a permit issued pursuant to subdivisions (1) through (6),38 (10), and (16) of G.S. 18B-1001 to obtain a delivery service permit in order for employees of the39 retail permittee to deliver malt beverages, unfortified wine, premixed cocktails, or fortified wine40 to a location designated by the purchaser, purchaser; however, the other provisions of this section41 apply to the retailer.42 …."43SECTION 22.(jj) G.S. 18B-1002, as amended by Section 10 of this act, reads as44 rewritten:45 "§ 18B-1002. Special one-time permits.46 (a) Kinds of Permits. – In addition to the other permits authorized by this Chapter, the47 Commission may issue permits for the following activities:48…49(2) A permit may be issued to a nonprofit organization to allow the retail sale of50malt beverages, unfortified wine, premixed cocktails, fortified wine, or mixed51beverages, or to allow brown-bagging, at a single fund-raising event of thatHouse Bill 921-Second Edition Page 45General Assembly Of North Carolina Session 20251organization. A permit for this purpose shall not be issued for the sale of any2kind of alcoholic beverage in a jurisdiction where the sale of that alcoholic3beverage is not lawful. A permit is not required under this subdivision for an4event conducted by a nonprofit organization that meets any of the following:5a. The event is held on premises permitted under G.S. 18B-1001(1),618B-1001(2), 18B-1001(3), 18B-1001(4), 18B-1001(5), 18B-1001(6),7or 18B-1001(10) and the wine, malt beverages, premixed cocktails,8and spirituous liquor sold at the event are sold by the retail permittee9from the retail permittee's inventory.10b. The event is held on a premises that does not hold a permit under this11Chapter and the wine, malt beverages, premixed cocktails, and12spirituous liquor sold or served at the event is provided by one of the13following in a manner allowed under that permit:141. A mobile bar services permittee pursuant to15G.S. 18B-1001(12a).162. A mixed beverage catering permittee pursuant to17G.S. 18B-1001(12).183. A malt beverage special event permittee pursuant to19G.S. 18B-1114.5.204. A winery special event permittee pursuant to G.S. 18B-1114.1.215. A spirituous liquor special event permittee pursuant to22G.S. 18B-1114.7.23…24(5) A permit may be issued to a unit of local government, or to a nonprofit25organization or a political organization to serve wine, malt beverages,26premixed cocktails, and spirituous liquor at a ticketed event held to allow the27unit of local government or organization to raise funds. A permit is not28required under this subdivision for a ticketed event conducted by a unit of29local government, a nonprofit organization, or a political organization that30meets any of the following:31a. The event is held on premises permitted under G.S. 18B-1001(1),3218B-1001(2), 18B-1001(3), 18B-1001(4), 18B-1001(5), 18B-1001(6),33or 18B-1001(10) and the wine, malt beverages, premixed cocktails,34and spirituous liquor sold at the event are sold by the retail permittee35from the retail permittee's inventory.36b. The event is held on a premises that does not hold a permit under this37Chapter and the wine, malt beverages, premixed cocktails, and38spirituous liquor sold or served at the event is provided by one of the39following in a manner allowed under that permit:401. A mobile bar services permittee pursuant to41G.S. 18B-1001(12a).422. A mixed beverage catering permittee pursuant to43G.S. 18B-1001(12).443. A malt beverage special event permittee pursuant to45G.S. 18B-1114.5.464. A winery special event permittee pursuant to G.S. 18B-1114.1.475. A spirituous liquor special event permittee pursuant to48G.S. 18B-1114.7.49For purposes of this subdivision "nonprofit organization" means an50organization that is exempt from taxation under Section 501(c)(3), 501(c)(4),51501(c)(6), 501(c)(8), 501(c)(10), 501(c)(19), or 501(d) of the InternalPage 46 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251Revenue Code or is exempt under similar provisions of the General Statutes2as a bona fide nonprofit charitable, civic, religious, fraternal, patriotic, or3veterans' organization or as a nonprofit volunteer fire department, or as a4nonprofit volunteer rescue squad or a bona fide homeowners' or property5owners' association. For purposes of this subdivision "political organization"6means an organization covered by the provisions of G.S. 163-96(a)(1) or (2)7or a campaign organization established by or for a person who is a candidate8who has filed a notice of candidacy, paid the filing fees or filed the required9petition, and been certified as a candidate. The issuance of this permit shall10also allow the use for culinary purposes of spirituous liquor lawfully11purchased for use in mixed beverages. The issuance of this permit shall also12allow a nonprofit organization to offer alcoholic beverages in the13manufacturer's original closed container as a prize in a raffle or sell alcoholic14beverages in the manufacturer's original closed container at auction at the15ticketed event to allow the nonprofit organization to raise funds.16(6) A permit may be issued to a professional sports organization to allow the retail17sale of malt beverages, unfortified wine, premixed cocktails, fortified wine, or18mixed beverages for consumption on the premises at a professional sporting19event held at a stadium (i) with a seating capacity of at least 40,000 people20and (ii) that is owned or leased by a constituent institution of The University21of North Carolina located in a county with a population of at least 900,00022people according to the most recent federal decennial census. For purposes of23this subdivision, the term "professional sports organization" means an24organization that is a member of an association or league of professional25sports organizations that (i) has 6 or more members, (ii) has total combined26revenues from all members that exceeds ten million dollars ($10,000,000) per27year, and (iii) governs the conduct of its members and regulates the contests28and exhibitions in which its member organizations regularly engage.29 …30 (d) Administrative Procedure. – Denial or revocation of a permit under this section shall31 not entitle the applicant or permittee to a hearing under Chapter 150B.Chapter 150B of the32 General Statutes."33SECTION 22.(kk) G.S. 18B-1004 reads as rewritten:34 "§ 18B-1004. Hours for sale and consumption.35 (a) Hours. – Except as otherwise provided in this section, it shall be unlawful to sell malt36 beverages, unfortified wine, premixed cocktails, fortified wine, or mixed beverages between the37 hours of 2:00 A.M. and 7:00 A.M., or to consume any of those alcoholic beverages between the38 hours of 2:30 A.M. and 7:00 A.M., in any place that has been issued a permit under39 G.S. 18B-1001 or G.S. 18B-1105.40 …41 (d) Local Option. – A city may adopt an ordinance prohibiting in the city the retail sale42 of malt beverages, unfortified wine, premixed cocktails, and fortified wine during any or all of43 the hours from 12:00 Noon on Sunday until 7:00 A.M. on the following Monday. A county may44 adopt an ordinance prohibiting, in the parts of the county outside any city, the retail sale of malt45 beverages, unfortified wine, premixed cocktails, and fortified wine during any or all of the hours46 from 12:00 Noon on Sunday until 7:00 A.M. on the following Monday. Neither a city nor a47 county, however, may prohibit those sales in establishments having brown-bagging or mixed48 beverages permits.49 (e) This section does not prohibit at any time the wholesale delivery and sale of50 unfortified wine, premixed cocktails, fortified wine, and malt beverages to retailers issued51 permits pursuant to G.S. 18B-1001 or G.S. 18B-1002(a)(2) or (5)."House Bill 921-Second Edition Page 47General Assembly Of North Carolina Session 20251SECTION 22.(ll) G.S. 18B-1006 reads as rewritten:2 "§ 18B-1006. Miscellaneous provisions on permits.3 (a) School and College Campuses. – No permit for the sale of alcoholic beverages shall4 be issued to a business on the campus or property of a public school, college, or university. This5 subsection shall not apply to the following:6…7(7) The sale of malt beverages, unfortified wine, premixed cocktails, or fortified8wine at the following:9a. Performing arts centers located on property owned or leased by the10public college or university.11b. Any stadiums that support a NASCAR-sanctioned one-fourth mile12asphalt flat oval short track, that are owned or leased by the public13college or university.14…15 (b) Lockers at Clubs. – A private club or congressionally-chartered veterans organization16 which has been issued a brown-bagging permit may, but is not required to, provide lockers for17 its members to store their alcoholic beverages. If lockers are provided, however, they shall not18 be shared but shall be for individual members. Each locker and each bottle of alcoholic beverages19 on the premises shall be labelled with the name of the member to whom it belongs. No more than20 eight liters each of malt beverages or unfortified wine malt beverages, unfortified wine, or21 premixed cocktails may be stored by a member at one time. No more than eight liters of either22 fortified wine or spirituous liquor, or eight liters of the two combined, may be stored by a member23 at one time.24 …25 (h) Purchase Restrictions. – A retail permittee may purchase malt beverages, unfortified26 wine, premixed cocktails, or fortified wine only from a wholesaler who maintains a place of27 business in this State and has the proper permit.28 (i) Tour Boats. – The Commission may issue permits to boats that conduct regularly29 scheduled tours upon the rivers or waterways of this State under the following conditions:30…31(3) A boat may hold the permits listed in G.S. 18B-1001(1), (3), (5), (7), and (10),32but no off-premises sales may be made pursuant to those permits;permits.33(4) A boat shall have a home port in an area where issuance of any of the permits34listed in subdivision (3) of this subsection is legal, and all passengers shall35enter the boat at the home port or at other ports listed on a preannounced36itinerary. The boat's permits are valid during tours that leave and return to the37boat's home port, and apply regardless of whether the boat crosses into an area38where sales are not legal, if the boat docks only at a port listed on the39preannounced itinerary, except in an emergency; andemergency.40…41 (j) Recreation Districts. – Notwithstanding the provisions of Article 6 of this Chapter,42 the Commission may issue permits for the sale of malt beverages, unfortified wine, premixed43 cocktails, fortified wine, and mixed beverages to qualified businesses in a recreation district.44 A "recreation district" is an area that meets any of the following requirements:45…46 (r) Distillery Estate Districts. –47…48(2) Notwithstanding any other provision of law, a mixed beverages permittee49located in a distillery estate district and under common ownership and control50with the distillery in the distillery estate district may sell spirituous liquor51produced at the distillery located in the distillery estate district in mixedPage 48 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251beverages and premixed cocktails as if it were being sold at the distillery.2Spirituous liquor sold pursuant to this subdivision shall be listed as a code3item for sale in the State but shall not be required to be sent to the State4warehouse or be stamped with a mixed beverages tax stamp.5(3) Notwithstanding any other provision of law, a distillery in a distillery estate6district may, without approval from the Commission, conduct consumer7tastings of spirituous liquor produced at the distillery subject to the8requirements of G.S. 18B-1114.7(b) anywhere in the distillery estate district,9including outdoors and on the premises of another ABC permittee located in10the distillery estate district.11(3a) Notwithstanding any other provision of law, a distillery in a distillery estate12district may, without approval from the Commission, conduct consumer13tastings of premixed cocktails produced at the distillery anywhere in the14distillery estate district, including outdoors and on the premises of another15ABC permittee located in the distillery estate district.16(4) Notwithstanding any other provision of law, on- and off-premises unfortified17wine permittees located in a distillery estate district and under common18ownership and control with the distillery in the distillery estate district may19sell bottles of spirituous liquor and containers of premixed cocktails produced20at the distillery at retail for consumption off the premises as if those bottles or21containers were being sold in the distillery following a tour. Sales under this22subdivision may occur between the hours of 9:00 A.M. and 9:00 P.M. on23Monday through Saturday of each week, from 12:00 noon to 9:00 P.M. on24Sundays, and from 9:00 A.M. to 9:00 P.M. on each of the following holidays25that do not fall on a Sunday: New Year's Day, Fourth of July, Labor Day and26Thanksgiving Day. Spirituous liquor other than premixed cocktails sold under27this subdivision shall (i) be listed as a code item for sale in the State, (ii) be28sold at the price set by the Commission for the code item pursuant to29G.S. 18B-804(b), and (iii) have affixed to its bottle any labeling requirements30set by law. The distillery shall be responsible for remitting to the Department31of Revenue the spirituous liquor and premixed cocktail excise tax pursuant to32G.S. 105-113.80 on bottles and containers sold pursuant to this subdivision.33The on- or off-premises unfortified wine permittees shall be responsible for34remitting to the Department of Revenue the sales and use tax on bottles and35containers sold in those establishments.36…."37SECTION 22.(mm) G.S. 18B-1007 reads as rewritten:38 "§ 18B-1007. Additional requirements for mixed beverages permittees.39 (a) Purchases. – A mixed beverages permittee may purchase spirituous liquor for resale40 as mixed beverages and a guest room cabinet permittee may purchase spirituous liquor for resale41 from a guest room cabinet only at an ABC store that is designated as a mixed beverage ABC42 store operated by any local board operating in the same county as the permittee. A mixed43 beverages permittee may purchase premixed cocktails for resale from either an ABC store or a44 premixed cocktail wholesaler, and a guest room cabinet permittee may purchase premixed45 cocktails for resale from a guest room cabinet from either an ABC store that is designated as a46 mixed beverage ABC store operated by any local board operating in the same county as the47 permittee or a premixed cocktail wholesaler.48 …49 (d) When a temporary mixed beverages permit has been issued to a new permittee for the50 continuation of a business at the same location, the permittee going out of business may sell51 existing mixed beverages and premixed cocktails inventory to the new permittee, and theHouse Bill 921-Second Edition Page 49General Assembly Of North Carolina Session 20251 Commission may request that the local ABC board restamp the mixed beverages inventory with2 the mixed beverages tax stamp assigned by the local board to the new mixed beverages permittee.3 Any existing premixed cocktail inventory does not need to be stamped with the mixed beverages4 tax stamp.5 …."6SECTION 22.(nn) G.S. 18B-1009(a), as amended by Section 27 of this act, reads as7 rewritten:8 "(a) Nothing in this Chapter shall be construed to prohibit a retail permittee from selling9 for consumption, malt beverages and premixed cocktails in the seating areas of stadiums,10 ballparks, theaters, amphitheaters, and other similar public places with a seating capacity of 3,00011 or more during concerts or professional sporting events, provided that:that all of the following12 apply:13(1) The seating areas are designated as part of the retail permittee's licensed14premises;premises.15(2) The retail permittee has notified the Commission, in writing, of its intent to16sell malt beverages beverages, premixed cocktails, or both in the seating areas17at concerts or sporting events;events.18(3) Service of food and nonalcoholic beverages is available in the seating19areas;areas.20(4) The retail permittee has certified to the Commission that it has trained its21employees:employees to do all of the following:22a. To identify Identify underage persons and intoxicated persons;23andpersons.24b. To refuse Refuse to sell malt alcoholic beverages to those persons as25required by G.S. 18B-305; andG.S. 18B-305.26(5) The employees do not verbally shout or hawk the sale of malt alcoholic27beverages."28SECTION 22.(oo) G.S. 18B-1100 reads as rewritten:29 "§ 18B-1100. Commercial permits.30 The Commission may issue the following commercial permits:31…32(23) Airport central storage permit.33(24) Premixed cocktail wholesaler permit.34(25) Nonresident premixed cocktail vendor permit.35(26) Premixed cocktail special event permit."36SECTION 22.(pp) G.S. 18B-1105 reads as rewritten:37 "§ 18B-1105. Authorization of distillery permit.38 (a) The holder of a distillery permit may do any of the following:39(1) Manufacture, purchase, import, possess and transport ingredients and40equipment used in the distillation or production of spirituous liquor. liquor and41premixed cocktails. The authorization to possess ingredients set forth in this42subdivision includes the possession of spirituous liquor and premixed43cocktails not distilled or produced at the distillery that is are used for the44production, research and development, or sample comparison of spirituous45liquor.liquor or premixed cocktails.46(2) Sell, deliver and ship spirituous liquor in closed containers at wholesale to (i)47exporters and local boards within the State, and, (ii) subject to the laws of48other jurisdictions, at wholesale or retail to consumers in other states or49nations, or private or public agencies or establishments of other states or50nations, except that the holder of a distillery permit may not sell, deliver, orPage 50 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251ship spirituous liquor at retail to consumers in jurisdictions that require2reciprocity in order to allow such sales, deliveries, or shipments.3(2a) Sell, deliver, and ship premixed cocktails in closed containers to wholesalers4licensed under this Chapter as authorized by the ABC laws, except that5premixed cocktails may be sold to exporters and nonresident wholesalers only6when the purchase is not for resale in this State. Additionally, premixed7cocktails may be sold, delivered, and shipped, subject to the laws of other8jurisdictions, at wholesale or retail to consumers in other states or nations, or9private or public agencies or establishments of other states or nations, except10that the holder of a distillery permit may not sell, deliver, or ship premixed11cocktails at retail to consumers in jurisdictions that require reciprocity in order12to allow such sales, deliveries, or shipments.13(2b) Sell, deliver, and ship premixed cocktails in closed containers at wholesale to14local boards within the State.15(3) Transport into or out of the distillery the maximum amount of liquor and16premixed cocktails allowed under federal law, if the transportation is related17to the distilling process.18(4) Sell spirituous liquor and premixed cocktails distilled or produced at the19distillery in closed containers to visitors who tour the distillery for20consumption off the premises. The length, content, and other parameters of21the tour shall be at the discretion of the distillery, and the distillery shall not22be required to maintain records related to tours. Sales under this subdivision23are allowed only in a county where the establishment of a county or municipal24ABC store has been approved pursuant to G.S. 18B-602(g) and may occur25between the hours of 9:00 A.M. and 9:00 P.M. on Monday through Saturday26of each week, from 12:00 noon to 9:00 P.M. on Sundays, and from 9:00 A.M.27to 9:00 P.M. on each of the following holidays that do not fall on a Sunday:28New Year's Day, Fourth of July, Labor Day, and Thanksgiving Day.29Spirituous liquor other than premixed cocktails sold under this subdivision30shall (i) be listed as a code item for sale in the State, (ii) be sold at the price31set by the Commission for the code item pursuant to G.S. 18B-804(b), and32(iii) have affixed to its bottle any labeling requirements set by law. A bottle of33spirituous liquor or a premixed cocktail container sold under this subdivision34may have personalized labeling. The personalized labeling shall comply with35any other labeling requirements set by law. The personalized labeling shall36not cover any portion of the manufacturer's original label. For purposes of this37subdivision, the term "personalized labeling" means the inclusion of any of38the following on the label:39a. The name of the purchaser of the bottle or container or the name of40any individual, business entity, or club on whose behalf the bottle or41container is purchased.42b. "Bottled for," "distilled for," "in honor of," or other similar language.43c. Dates, locations, occasions, and other similar information.44(4a) In an area where the sale of mixed beverages is authorized by law, sell mixed45beverages and premixed cocktails for consumption on the premises, or for46consumption off the premises in accordance with the requirements for sale for47consumption off the premises described in G.S. 18B-1001(10). If a distillery48elects to sell mixed beverages or premixed cocktails containing spirituous49liquor other than that produced at the distillery, the distillery shall obtain a50mixed beverages permit pursuant to G.S. 18B-1001.House Bill 921-Second Edition Page 51General Assembly Of North Carolina Session 20251(4b) If the distillery is located on a property used for bona fide farm purposes, as2defined in G.S. 160D-102(3), sell mixed beverages and premixed cocktails3containing only spirituous liquor produced at the distillery for consumption4on the premises, or for consumption off the premises in accordance with the5requirements for sale for consumption off the premises described in6G.S. 18B-1001(10), regardless of the results of any local mixed beverage7election.8(4c) In an area where the sale of mixed beverages has not been approved by a local9election, sell mixed beverages and premixed cocktails containing only10spirituous liquor produced at the distillery for consumption on the premises,11or for consumption off the premises in accordance with the requirements for12sale for consumption off the premises described in G.S. 18B-1001(10), upon13obtaining a mixed beverages permit under14G.S. 18B-1001.G.S. 18B-1001(10). If a distillery elects to sell mixed15beverages pursuant to this subdivision, the distillery shall obtain a mixed16beverages permit pursuant to G.S. 18B-1001(10).17(5) Conduct consumer tastings, sell mixed beverages, and provide spirituous18liquor in closed containers in accordance with G.S. 18B-1114.7.19(5a) Conduct consumer tastings and sell premixed cocktails in open or closed20containers in accordance with G.S. 18B-1114.9, except that premixed21cocktails offered for tasting or sale pursuant to this subdivision are not22required to be purchased from a premixed cocktail wholesaler if the premixed23cocktails contain only spirituous liquor produced at the distillery.24(6) Sell malt beverages, unfortified wine, premixed cocktails, and fortified wine,25for consumption on the premises upon obtaining the appropriate permit under26G.S. 18B-1001.27 (a1) A distillery participating in an alternating proprietorship may sell any product it28 produces or distills at the permitted location pursuant to subdivision (4), (4a), (4b), (4c), or (5)29 (5), or (5a) of subsection (a) of this section at any time the sale of spirituous liquor that type of30 alcoholic beverage is allowed on the premises pursuant to those subdivisions. The distilleries in31 an alternating proprietorship may contract for the host distillery to manage sales of spirituous32 liquor and premixed cocktails for the other distillery pursuant to subdivision (4), (4a), (4b), (4c),33 or (5) (5), or (5a) of subsection (a) of this section, but each distillery shall be responsible for34 maintaining appropriate records and remitting the appropriate taxes. Only the host distillery shall35 be required to have a mixed beverage permit, if required, if the host distillery sells the other36 distillery's spirituous liquor in mixed beverages.37 …38 (d) Control of Location of Sale and Consumption on Premises. – Notwithstanding39 G.S. 18B-301(e), except as otherwise prohibited by federal law or the holder of the distillery40 permit, an alcoholic beverage authorized to be sold or consumed under this section may be sold,41 possessed, or consumed on any part of the licensed premises of the distillery that is open to the42 public. This subsection shall not be construed to allow spirituous liquor or premixed cocktails in43 closed containers sold for off-premises consumption to be consumed at the distillery."44SECTION 22.(qq) G.S. 18B-1105.1 reads as rewritten:45 "§ 18B-1105.1. Authorization of liquor importer/bottler permit.46 The holder of a liquor importer/bottler permit may:47(1) Receive spirituous liquor and premixed cocktails in closed containers into48foreign trade zones at the State Port facilities in Morehead City and49Wilmington from ships docked at the State Port facilities for the purpose of50bottling, packaging, or labeling.Page 52 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251(2) Bottle, package, or label in this State spirituous liquor and premixed cocktails2imported or received into a foreign trade zone pursuant to this section.3(3) Receive spirituous liquor in closed containers into the foreign trade zones at4the State Port facilities in Morehead City and Wilmington from ships docked5at the State Port facilities for storage, sale, shipment, and transshipment to the6State or a local ABC board warehouse or, subject to the laws of other7jurisdictions, to private or public agencies or establishments of other states or8nations.9(4) Subject to the record-keeping requirements of G.S. 18B-1115, transport into10or out of the foreign trade zones at the State Port facilities in Morehead City11and Wilmington, the maximum amount of liquor allowed under federal law,12if the transportation is related to the bottling, packaging, labeling, sale, or13storage permitted by this section.14(5) Receive spirituous liquor in closed containers into the State for storage, sale,15shipment, and transshipment to the State warehouse or, subject to the laws of16other jurisdictions, to private or public agencies or establishments of other17states or nations.18(6) Receive premixed cocktails in closed containers into the State for storage,19sale, shipment, and transshipment to the State warehouse, to premixed cocktail20wholesalers for purposes of resale, or, subject to the laws of other21jurisdictions, to private or public agencies or establishments of other states or22nations."23SECTION 22.(rr) Article 11 of Chapter 18B of the General Statutes is amended by24 adding a new section to read:25 "§ 18B-1109.1. Authorization of premixed cocktail wholesaler permit.26 The holder of a premixed cocktail wholesaler permit may do any or all of the following:27(1) Receive, possess, and transport shipments of premixed cocktails.28(2) Sell, deliver, and ship, in closed containers and in quantities of one case or29container or more, premixed cocktails of any brand filed pursuant to30G.S. 18B-1403(a) to wholesalers or retailers licensed under this Chapter, as31authorized by the ABC laws.32(3) Furnish and sell premixed cocktails filed pursuant to G.S. 18B-1403(a) to its33employees subject to the rules of the Commission and the Department of34Revenue.35(4) In locations where the sale is legal, furnish premixed cocktails of any brand36filed pursuant to G.S. 18B-1403(a) to guests and any other person who does37not hold an ABC permit, for promotional purposes, subject to the rules of the38Commission."39SECTION 22.(ss) G.S. 18B-1110(a) reads as rewritten:40 "(a) Authorization. – The holder of a bottler permit may:may do any or all of the41 following:42(1) Receive, possess and transport shipments of malt beverages, unfortified wine43and fortified wine;unfortified wine, premixed cocktails, and fortified wine.44(2) Bottle, sell, deliver and ship malt beverages, unfortified wine, premixed45cocktails, and fortified wine in closed containers to wholesalers licensed under46this Chapter as authorized by the ABC laws;laws.47(3) Furnish or sell packages which do not conform to the manufacturer's48marketing standards, if State taxes have been or will be paid, to its employees49for the use of the employees or their families and guests in this State.50 A sale or gift under subdivision (3) shall not be considered a retail or wholesale sale under51 the ABC law."House Bill 921-Second Edition Page 53General Assembly Of North Carolina Session 20251SECTION 22.(tt) G.S. 18B-1110.1 reads as rewritten:2 "§ 18B-1110.1. Authorization of packaging and logistics permit.3 (a) Authorization. – The holder of a packaging and logistics permit may:4(1) Receive, in closed containers, malt beverages, unfortified wine, premixed5cocktails, fortified wine, and spirituous liquor from a supplier for the purpose6of packaging, repackaging, storage, shipping, and for the purpose of labeling7or relabeling the outer packaging, such as a box or carton.8(2) Package or repackage malt beverages, unfortified wine, premixed cocktails,9fortified wine, and spirituous liquor received from a supplier, and label or10relabel the outer packaging.11(3) Subject to the record-keeping requirements of G.S. 18B-1115, transport into12or out of the State in closed containers the maximum amounts of malt13beverages, unfortified wine, premixed cocktails, fortified wine, and spirituous14liquor allowed under federal law, if the transportation is related to the15packaging, labeling, sale, or storage permitted by this section.16(4) Deliver and ship malt beverages, unfortified wine, premixed cocktails, and17fortified wine as provided in this section in closed containers to suppliers and18wholesalers licensed under this Chapter.19(5) Deliver and ship spirituous liquor and premixed cocktails as provided in this20section in closed containers at wholesale to exporters and local boards within21the State.22(6) Subject to the laws of other jurisdictions, deliver and ship malt beverages,23unfortified wine, premixed cocktails, fortified wine, and spirituous liquor as24provided in this section to out-of-state suppliers or at wholesale or retail to25private or public agencies or establishments of other states or nations.26 (b) Limitation. – A packaging and logistics permit does not authorize the permit holder27 to engage in the manufacture of alcoholic beverages except for packaging, repackaging, labeling,28 and relabeling as provided in subsection (a) of this section. A holder of a packaging and logistics29 permit may not sell, deliver, or ship malt beverages, unfortified wine, premixed cocktails,30 fortified wine, or spirituous liquor directly to consumers or to retail establishments in this State.31 Nothing in this section shall be interpreted to abrogate the provisions of G.S. 18B-1119.32 (c) Distribution Agreements. – Malt beverage and wine beverage, wine, and premixed33 cocktail distribution agreements applicable between a wholesaler and an original supplier are34 governed by Articles 12 and 13 12, 13, and 14 of this Chapter."35SECTION 22.(uu) G.S. 18B-1111(a) reads as rewritten:36 "(a) Authorized Acts. – The holder of a salesman permit may sell and transport malt37 beverages for a malt beverage wholesaler or wholesaler, sell and transport unfortified and38 fortified wine for a wine wholesaler.wholesaler, or sell and transport premixed cocktails for a39 premixed cocktail wholesaler."40SECTION 22.(vv) Article 11 of Chapter 18B of the General Statutes is amended by41 adding a new section to read:42 "§ 18B-1113.2. Authorization of nonresident premixed cocktail vendor permit.43 The holder of a nonresident premixed cocktail vendor permit may sell, deliver, and ship44 premixed cocktails in this State only to wholesalers, importers, and bottlers licensed under this45 Chapter, as authorized by the ABC laws. The premixed cocktails must come to rest at the licensed46 premises of a premixed cocktail wholesaler in this State before being resold to a retailer licensed47 under this Chapter. A nonresident premixed cocktail vendor permit may be issued to a liquor48 importer/bottler or a business outside North Carolina that is licensed or permitted to manufacture49 premixed cocktails in the jurisdiction where the business is located and whose products are50 lawfully sold in this State."51SECTION 22.(ww) G.S. 18B-1113.1 reads as rewritten:Page 54 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251 "§ 18B-1113.1. Authorization of optional nonresident spirituous liquor vendor permit.2 (a) The following businesses may apply for and obtain a nonresident spirituous liquor3 vendor permit:4(1) A business located outside the State that is licensed or permitted to5manufacture spirituous liquor in the jurisdiction where the business is located6and whose products are lawfully sold in this State.7(2) A brokerage.8(3) A liquor importer/bottler.9 (b) The holder of a nonresident spirituous liquor vendor permit may deliver and ship10 spirituous liquor or premixed cocktails that has have been approved for sale in this State to the11 permit holder's (i) employees in the State and (ii) brokerage if the brokerage also holds a12 nonresident spirituous liquor vendor permit for the purposes of conducting special events13 pursuant to G.S. 18B-1114.7. The permit holder may not ship or deliver more spirituous liquor14 or premixed cocktails to its employees or brokerage than is necessary for any consumer tasting15 event scheduled within one calendar month of the shipment or delivery. Nothing in this section16 shall be interpreted to require a business to possess or obtain a nonresident spirituous liquor17 vendor permit to do business in the State or State, to obtain a spirituous liquor special event18 permit pursuant to G.S. 18B-1114.7.G.S. 18B-1114.7, or to obtain a premixed cocktail special19 event permit pursuant to G.S. 18B-1114.9.20 (c) For purposes of this section, "distillery" means the holder of a distillery permit issued21 under G.S. 18B-1105 or a business located outside the State that is licensed or permitted to22 manufacture spirituous liquor in the jurisdiction where the business is located and whose products23 are lawfully sold in this State."24SECTION 22.(xx) G.S. 18B-1114.7 is amended by adding a new subsection to read:25 "(e) For purposes of this section, "spirituous liquor" includes premixed cocktails."26SECTION 22.(yy) Article 11 of Chapter 18B of the General Statutes is amended by27 adding a new section to read:28 "§ 18B-1114.9. Authorization of premixed cocktail special event permit.29 (a) Authorization. – The holder of a distillery permit, a liquor importer/bottler permit, a30 nonresident spirituous liquor vendor permit, or a nonresident premixed cocktail vendor permit31 may obtain a premixed cocktail special event permit allowing the permittee to give free tastings32 of its premixed cocktails; to sell branded merchandise such as glassware, cups, signs, t-shirts,33 hats, and other apparel; and to sell its premixed cocktails in open or closed containers at shopping34 malls and at trade shows, conventions, liquor festivals, street festivals, holiday festivals,35 agricultural festivals, farmers markets, balloon races, local fundraisers, and other similar events36 approved by the Commission. Except as provided in G.S. 18B-1105(a)(5a), all premixed37 cocktails sampled or sold pursuant to this section must be purchased from a licensed premixed38 cocktail wholesaler.39 (b) Limitation. – A premixed cocktail special event permit is valid only in a jurisdiction40 that has approved the sale of malt beverages, unfortified wine, fortified wine, or mixed beverages.41 A premixed cocktail special event shall not be used as subterfuge for premixed cocktail suppliers42 to ship directly to retail permittees unless otherwise authorized by law."43SECTION 22.(zz) G.S. 18B-1115 reads as rewritten:44 "§ 18B-1115. Commercial transportation.45 (a) Permit Required. – Unless a person holds a permit which otherwise allows him the46 person to transport more than 80 liters of malt beverages other than draft malt beverages in kegs,47 80 liters of premixed cocktails, 50 liters of unfortified wine, or eight liters of fortified wine or48 spirituous liquor, or is a retailer authorized to transport alcoholic beverages under G.S. 18B-405,49 each person transporting alcoholic beverages in excess of those quantities shall have the permit50 described in this section.House Bill 921-Second Edition Page 55General Assembly Of North Carolina Session 20251 (b) When Transportation Legal. – No person may obtain a permit under this section to2 transport spirituous liquor unless the transportation is for delivery to a federal reservation over3 which North Carolina has ceded jurisdiction to the United States, for delivery to an ABC store,4 or for transport through this State to another state. This subsection does not apply to premixed5 cocktails.6 …7 (e) Transportation of Spirituous Liquor. – In addition to the requirements of subsection8 (d), (d) of this section, motor vehicle carriers engaged in transporting spirituous liquor shall:9(1) Deposit with the Commission a surety bond for one thousand dollars ($1,000)10conditioned that the carrier will not unlawfully transport spirituous liquor into11or through this State. The bond, which shall be approved by the Commission,12shall be payable to the State of North Carolina. If the bonded carrier is13convicted of a violation covered by the bond, the proceeds of the forfeited14bond shall be paid to the school fund of the county in which the liquor was15seized.16(2) Include in its bill of lading, invoice or other memorandum of shipment the17North Carolina code numbers of the spirituous liquor being transported.18(3) Include in its bill of lading, invoice or other memorandum of shipment the19route which the vehicle will follow, and the vehicle shall not vary substantially20from that stated route.21 This subsection does not apply to premixed cocktails.22 (f) Malt Beverages and Wine Beverages, Wine, and Premixed Cocktails Transported by23 Boats. – The owner or operator of any boat may transport malt beverages, unfortified wine wine,24 premixed cocktails, and fortified wine over the waters of this State if he the owner or operator25 satisfies all requirements of subsection (d).(d) of this section.26 …."27SECTION 22.(aaa) G.S. 18B-1118 reads as rewritten:28 "§ 18B-1118. Purchase restrictions.29 The holder of a malt beverage wholesaler, wine wholesaler, premixed cocktail wholesaler,30 malt beverage importer, wine importer, or bottler permit may not purchase malt beverages or31 wine beverages, wine, or premixed cocktails for resale in this State from a nonresident who does32 not have the proper nonresident vendor permit."33SECTION 22.(bbb) G.S. 18B-1119 reads as rewritten:34 "§ 18B-1119. Supplier's financial interest in wholesaler.35 (a) A supplier or an officer, director, employee or affiliate of a supplier may not acquire,36 possess, or otherwise maintain an ownership interest in its wholesaler except as expressly37 authorized by this Chapter.38 …39 (c) A supplier or an officer, director, employee or affiliate of a supplier may have a40 security interest in the inventory or property of its wholesaler to secure payment for such41 inventory or other loans for other purposes.42 (d) For purposes of this section, "supplier" means a manufacturer, bottler, importer, or43 owner of one or more brands of malt beverages, unfortified wine, premixed cocktails, or fortified44 wine distributed by its wholesaler. The term "supplier" does not include a wholesaler that meets45 either of the following criteria:46(1) The wholesaler also possesses a wine importer permit or permit, a malt47beverages importer permit permit, or a liquor importer/bottler permit and does48not directly or through an affiliated entity also possess a nonresident wine49vendor permit or permit, a nonresident malt beverages vendor permit permit,50or a nonresident premixed cocktail vendor permit issued pursuant to this51Chapter.Page 56 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251(2) The wholesaler is an importer in another state, provided such malt beverages,2unfortified wine, premixed cocktails, or fortified wine are transferred to it3through an unaffiliated and independent third party."4SECTION 22.(ccc) G.S. 18B-1307(b) reads as rewritten:5 "(b) Approval of Certain Transfers and Mergers. – Upon notice to and approval by the6 supplier, an individual owning an interest in a wholesaler may sell, assign or transfer that interest,7 including the wholesaler's rights under its franchise agreement with the supplier, to any qualified8 person. Likewise, a wholesaler may merge with another wholesaler in the State, transferring to9 the new wholesaler entity the merging wholesaler's existing franchise rights. Within 30 days of10 receipt of notice of the intended sale, assignment, transfer, or merger, the supplier shall request11 any additional relevant, material information reasonably necessary for deciding whether to12 approve the transaction. The supplier shall have 30 days from receipt of that information to object13 to the sale, assignment, transfer, or merger. The supplier may object only if the proposed14 transferee, or the wholesalership resulting from the merger, fails to meet qualifications and15 standards that are nondiscriminatory, material, reasonable and consistently applied to North16 Carolina wholesalers by the supplier. The burden shall be upon the supplier to prove that the17 proposed transferee or merged wholesaler is not qualified. In determining whether the proposed18 transferee or merged wholesaler is a qualified person, the supplier shall consider, but is not19 limited to, the following factors:20(1) Whether the proposed transferee has the financial capacity to purchase the21wholesaler or the specified interest upon terms that will not jeopardize the22future operation of the business, or whether the new entity resulting from a23merger will have such financial capacity to operate successfully, and whether24under such ownership the wholesaler will be able to provide financial support25necessary to the successful operation of the business, including market26spending, capital expenditures, and any equity capitalization or refinancing27requirements.28(2) Whether the proposed transferee, or the new entity resulting from a merger,29has the proven business experience to hire and maintain a management team30to successfully operate the business.31(3) If the proposed transferee does not have experience in the beer business,32whether the transferee has other experience to enable it to operate a33distributorship successfully and whether the transferee is willing to participate34in training provided by the supplier.35(4) Whether the proposed transferee, or a party to the merger, already is a36wholesaler for the supplier in a different territory and, if so, whether sufficient37time and attention can be devoted to an additional market area.38 In determining whether a proposed transferee, or the entity resulting from a merger, is a39 qualified person, a supplier must consider the business on its own merits and may not designate40 a specifically identified person as the only purchaser who will be approved. Nothing in this41 subsection is intended to or should be construed to authorize a supplier to match and reassign to42 a designee the right to purchase the ownership interest, subject to the designee purchasing the43 ownership interest. Provided, however, a supplier may match and reassign to a designee the right44 to purchase the ownership interest, subject to the designee purchasing the ownership interest at45 the price and on the conditions applicable to the purchase proposed by the transferee, if the total46 annual gross sales of the supplier's malt beverages sold by the selling wholesaler total no more47 than five percent (5%) of the selling wholesaler's total annual gross sales of wine and malt48 beverages wine, malt beverages, and premixed cocktails in dollars."49SECTION 22.(ddd) Chapter 18B of the General Statutes is amended by adding a50 new Article to read:51"Article 14.House Bill 921-Second Edition Page 57General Assembly Of North Carolina Session 20251"Premixed Cocktail Franchise Law.2 "§ 18B-1400. Purpose.3 Pursuant to the authority of the State under the Twenty-First Amendment to the United States4 Constitution, the General Assembly finds that regulation of the business relations between5 premixed cocktail manufacturers and importers and the wholesalers of such products, for6 purposes of sales of premixed cocktails outside of ABC stores, is necessary to:7(1) Maintain stability and healthy competition in the premixed cocktail industry8in this State.9(2) Promote and maintain a sound, stable, and viable three-tier system of10distribution of premixed cocktails to the public.11(3) Promote the compelling interest of the public in fair business relations12between premixed cocktail suppliers and wholesalers, and in the continuation13of premixed cocktail franchise agreements on a fair basis.14(4) Maintain a uniform system of control over the sale, purchase, and distribution15of premixed cocktails in the State.16(5) Prevent unfair or unlawful trade practices by enabling wholesalers to refuse17to participate in such practices without fear of arbitrary or unlawful retribution18from suppliers.19(6) Provide wholesalers with rights and remedies in addition to those existing by20contract or common law.21(7) Govern all agreements between suppliers and wholesalers, including any22renewals or amendments.23(8) Protect wholesalers against unfair treatment by suppliers.24(9) Preserve investments made by wholesalers in franchise agreements through25minimization of arbitrary termination.26(10) Promote consumer choice by ensuring an independent wholesale distribution27tier that enables wholesalers to distribute competing products of other28suppliers.29(11) Prevent vertical integration of the premixed cocktail market.30 "§ 18B-1401. Definitions.31 The following definitions apply in this Article:32(1) Supplier. – A manufacturer, bottler, or importer of premixed cocktails,33including anyone who holds a distillery permit, a liquor importer/bottler34permit who imports or bottles premixed cocktails, or a nonresident premixed35cocktail vendor permit.36(2) Wholesaler. – The holder of a premixed cocktail wholesaler permit.37 "§ 18B-1402. Franchise agreement.38 (a) Nature of Agreement. – A franchise agreement is a commercial relationship between39 a wholesaler and supplier of a definite or indefinite duration, whether written or oral, including40 any of the following:41(1) A relationship whereby a wholesaler is granted the right to offer and sell the42brands of premixed cocktails offered by the supplier.43(2) An agreement whereby a supplier grants to a wholesaler a license to use a44trade name, trademark, service mark, or related characteristic and in which45there is a community of interest in the marking of the products of the supplier46by lease or otherwise.47 (b) Existence of Agreement. – A franchise agreement as described in subsection (a) of48 this section exists when any of the following apply:49(1) The supplier has shipped premixed cocktails to a wholesaler or accepted an50order for premixed cocktails from the wholesaler.Page 58 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251(2) A wholesaler has paid or the supplier has accepted payment for an order of2premixed cocktails intended for sale within this State.3(3) The supplier and wholesaler have filed with the Commission a distribution4agreement as required by G.S. 18B-1403.5(4) A supplier acquires the right to manufacture a premixed cocktail product, or6the trade name for such product, or the right to distribute a product, for which7a wholesaler has a franchise agreement.8 "§ 18B-1403. Filing of distribution agreement; no discrimination.9 (a) Filing. – It is unlawful for a supplier to provide premixed cocktails to a wholesaler10 unless the Commission has received notification from the supplier designating the brands of the11 supplier which the wholesaler is authorized to sell and the territory in which such sales may take12 place. If the supplier sells several brands, the agreement need not apply to all brands. A franchise13 agreement applies to all supplier products under the same brand name, and different categories14 of products manufactured under a common identifying trade name are considered to be the same15 brand. No supplier may provide by a distribution agreement for the distribution of a brand to16 more than one wholesaler for the same territory. A wholesaler shall not distribute any brand of17 premixed cocktail to a retailer whose premises are located outside the territory specified in the18 wholesaler's distribution agreement for that brand, except to a retail permittee's off-site airport19 storage premises pursuant to G.S. 18B-1011. A wholesaler may, however, with the approval of20 the Commission, distribute premixed cocktails outside its designated territory during periods of21 temporary service interruption when requested to do so by the supplier and the wholesaler whose22 service is interrupted.23 (b) ABC Store Exception. – Notwithstanding subsection (a) of this section, nothing in24 this Article shall prohibit a supplier from selling premixed cocktails to the ABC Commission for25 resale in ABC stores. A supplier's sales to the Commission shall not constitute a distribution of26 the brand within any wholesaler's franchised territory for purposes of this Article.27 (c) No Discrimination. – A wholesaler shall service all retail permit holders within the28 wholesaler's designated territory without discrimination and shall make a good-faith effort to29 make available to each retail permit holder in the territory each brand of premixed cocktail which30 the wholesaler has been authorized to distribute in that area. The provisions of this subsection31 shall not apply to retail permit holder private label brands, which, at the retail permit holder's32 direction, may be sold either exclusively to the retailer that owns the brand name or to all retail33 permit holders within each territory without discrimination. For purposes of this subsection, the34 term "retail permit holder private label brand" means a premixed cocktail product that is labeled35 with a brand name owned by a retailer.36 (d) No Price Maintenance. – A franchise agreement shall not, either expressly or by37 implication or in its operation, establish or maintain the resale price of any brand of premixed38 cocktails by a wholesaler.39 "§ 18B-1404. Prohibitions.40 It is unlawful for a supplier, or an officer, agent, or representative of a supplier, to do any of41 the following:42(1) Coerce or attempt to coerce or persuade a wholesaler to violate any provision43of the ABC laws or rules of the Department of Revenue.44(2) Alter in a material way, terminate, fail to renew, or cause a wholesaler to45resign from a franchise agreement with a wholesaler except for good cause46and with the notice required by G.S. 18B-1405.47(3) Withdraw money from or otherwise access a wholesaler's bank accounts48without the wholesaler's consent.49(4) Present a franchise agreement, amendment, or renewal to a wholesaler that50attempts to waive compliance with any provision of this Article or that51requires a wholesaler to waive compliance with any provision of this Article.House Bill 921-Second Edition Page 59General Assembly Of North Carolina Session 20251A wholesaler entering into a franchise agreement containing provisions in2conflict with this Article shall not be deemed to waive rights protected by, or3in compliance with, any provision of this Article.4(5) Induce or coerce, or attempt to induce or coerce, any wholesaler to assent to5any franchise agreement, amendment, or renewal that does not comply with6this Article and the laws of this State.7(6) Coerce or attempt to coerce a wholesaler, or its designated or anticipated8successor, to sign a franchise agreement, amendment, or renewal to a9franchise agreement by threatening to refuse to approve or delay issuing an10approval for the sale, transfer, or merger of a wholesaler's business.11(7) Terminate, cancel, or nonrenew or attempt to terminate, cancel, or nonrenew12a franchise agreement on the basis that the wholesaler fails to agree or consent13to an amendment to the franchise agreement.14(8) Prohibit a wholesaler from distributing the product of any other supplier,15except that a supplier may prohibit a wholesaler from distributing the product16of another supplier if reasonable grounds exist for prohibiting the wholesaler's17acquisition of the product and the acquisition would result in the wholesaler18acquiring eighty percent (80%) or more by volume of all premixed cocktail19products sold in the territory being acquired at the time of the acquisition.20(9) Refuse to approve or require a wholesaler to terminate a brand manager or21successor manager without good cause. A supplier has good cause only if the22person designated for approval by the wholesaler fails to meet reasonable23standards and qualifications.24(10) Discriminate in price, allowance, rebate, refund, payment term, commission,25discount, or service between wholesalers licensed in North Carolina. As used26in this subdivision, "discriminate" means the granting of a more favorable27price, allowance, rebate, refund, payment term, commission, discount, or28service to one North Carolina wholesaler than to another North Carolina29wholesaler based on the quantity of premixed cocktails purchased or for any30other reason, but "discriminate" shall exclude the granting of more favorable31freight and transportation costs, price promotions on premixed cocktail32products for special events in a particular market not to exceed 14 consecutive33days, point-of-sale advertising materials, sponsorships, consumer specialty34items, consumer sweepstakes, and novelties. A supplier may, however, offer35a lower price or discount in order to match that of a competing supplier on a36similar category of premixed cocktail products in the entire State or in a37particular market. This subdivision shall not apply to a supplier's sales to the38ABC Commission.39 "§ 18B-1405. Cause for termination of franchise agreement.40 (a) Meaning of Good Cause. – Good cause for altering or terminating a franchise41 agreement, or failing to renew or causing a wholesaler to resign from such an agreement, exists42 when the wholesaler fails to comply with provisions of the agreement which are reasonable,43 material, not unconscionable, and which are not discriminatory when compared with the44 provisions imposed, by their terms or in the manner of enforcement, on other similarly situated45 wholesalers by the supplier. The meaning of good cause set out in this section may not be46 modified or superseded by provisions in a written franchise agreement prepared by a supplier if47 those provisions purport to define good cause in a manner different than specified in this section.48 In any dispute over alteration, termination, failure to renew, or causing a wholesaler to resign49 from a franchise agreement, the burden is on the supplier to establish that good cause exists for50 the action.Page 60 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251 (b) Notice of Cause. – At least 90 days before altering, terminating, or failing to renew a2 franchise agreement for good cause, the supplier must give the wholesaler written notice of the3 intended action and the specific reasons for it. If the cause for the alteration, termination, or4 failure to renew is subject to correction by the wholesaler, and the wholesaler makes such5 correction within 45 days of receipt of the notice, the notice shall be void.6 (c) Termination for Cause without Advance Notice. – A supplier may terminate or fail to7 renew a franchise agreement for any of the following reasons and the termination shall be8 complete upon receipt by the wholesaler of a written notice of the termination and the reason:9(1) Insolvency of the wholesaler, the dissolution or liquidation of the wholesaler,10or the filing of any petition by or against the wholesaler under any bankruptcy11or receivership law which materially affects the wholesaler's ability to remain12in business.13(2) Revocation of the wholesaler's State or federal permit or license for more than1430 days.15(3) Conviction of the wholesaler, or of a partner or individual who owns ten16percent (10%) or more of the partnership or stock of the wholesaler, of a17felony which might reasonably be expected to adversely affect the goodwill18or interest of the wholesaler or supplier. The provisions of this subdivision19shall not apply, however, if the wholesaler or its existing partners or20stockholders shall have the right to purchase the interest of the offending21partner or stockholder, and such purchase is completed within 30 days of the22conviction.23(4) Fraudulent conduct by the wholesaler in its dealings with the supplier or its24products.25(5) Failure of the wholesaler to pay for the supplier's products according to the26established terms of the supplier.27(6) Assignment, sale, or transfer of the wholesaler's business or control of the28wholesaler without the written consent of the supplier, except as provided in29G.S. 18B-1407.30 (d) Absence of Good Cause. – Good cause for alteration, termination, or failure to renew31 a franchise agreement does not include:32(1) The failure or refusal of the wholesaler to engage in any trade practice,33conduct, or activity which would violate federal or State law.34(2) The failure or refusal of the wholesaler to take any action which would be35contrary to the provisions of this Article.36(3) A change in the ownership of the supplier or the acquisition by another37supplier of the distillery, brand, or trade name or trademark, or acquisition of38the right to distribute a product, from the original supplier.39(4) Sale or transfer of the rights to manufacture, distribute, or use the trade name40of the brand to a successor supplier.41(5) Failure of the wholesaler to meet standards of operation or performance that42have been imposed or revised unilaterally by the supplier without a fair43opportunity for the individual wholesaler to bargain as to the terms, unless the44supplier has implemented the standards on a national basis and those standards45are consistently applied to all similarly situated North Carolina wholesalers in46a nondiscriminatory manner.47(6) The establishment of a franchise agreement between a wholesaler and another48supplier, or similar acquisition by a wholesaler of the right to distribute a49brand of another supplier.50(7) The desire of a supplier to consolidate its franchises.51 "§ 18B-1406. Remedies for wrongful termination.House Bill 921-Second Edition Page 61General Assembly Of North Carolina Session 20251 (a) Injunctive Relief. – A wholesaler whose franchise agreement is altered, terminated,2 or not renewed in violation of this Article may bring an action to enjoin such unlawful alteration,3 termination, or failure to renew. The action may be brought in the county in which the wholesaler4 has its principal place of business or in any county in which the wholesaler receives or distributes5 the products in issue. Any injunction issued pursuant to this subsection shall require the6 wholesaler to supply the customers in its territory with their reasonable retail requirements and7 to otherwise serve the territory.8 (b) Monetary Damages. – In lieu of injunctive relief, a wholesaler whose franchise9 agreement is altered, terminated, or not renewed in violation of this Article shall be entitled to10 recover monetary damages from the supplier. The amount to which the wholesaler is entitled11 shall be the value of the wholesaler's business distributing the supplier's products, including:12(1) The laid-in costs to the wholesaler of the inventory of the supplier's products,13including any State and local taxes paid on the inventory by the wholesaler,14plus a reasonable charge for handling of the products upon surrender of the15inventory to the supplier.16(2) The fair market value of all assets, including ancillary businesses of the17wholesaler used in distributing the supplier's products. The total compensation18to be paid to the wholesaler shall be reduced, however, by any amount19received by the wholesaler from sale of assets of the business used in20distributing the supplier's products as well as by the value such assets have to21the wholesaler unrelated to the supplier's products. "Fair market value" means22the highest dollar amount at which a seller would be willing to sell and a buyer23willing to buy at a time prior to the alteration, termination, or failure to renew,24when each possesses all information relevant to the transaction.25 "§ 18B-1407. Transfer or merger of wholesaler's business.26 (a) Right of Transfer to Designated Family Member. – An individual's interest in a27 wholesaler business, including the rights under the franchise agreement with the supplier, may28 be transferred or assigned to a designated family member. The transfer or assignment shall not29 be effective until written notice is given to the supplier, but the supplier's consent is not required30 for the transfer or assignment. "Designated family member" means the wholesaler's spouse, child,31 grandchild, parent, brother, sister, niece, or nephew. With respect to an incapacitated individual32 having an ownership interest in a wholesaler, the term "designated family member" also means33 the person appointed by the court as the conservator of such individual's property. The term also34 includes the appointed and qualified personal representative and the testamentary trustee of a35 deceased wholesaler.36 (b) Approval of Certain Transfers and Mergers. – Upon notice to and approval by the37 supplier, an individual owning an interest in a wholesaler may sell, assign, or transfer that38 interest, including the wholesaler's rights under its franchise agreement with the supplier, to any39 qualified person. Likewise, a wholesaler may merge with another wholesaler in the State,40 transferring to the new wholesaler entity the merging wholesaler's existing franchise rights.41 Within 30 days of receipt of notice of the intended sale, assignment, transfer, or merger, the42 supplier shall request any additional relevant, material information reasonably necessary for43 deciding whether to approve the transaction. The supplier shall have 30 days from receipt of that44 information to object to the sale, assignment, transfer, or merger. The supplier may object only45 if the proposed transferee, or the wholesalership resulting from the merger, fails to meet46 qualifications and standards that are nondiscriminatory, material, reasonable, and consistently47 applied to North Carolina wholesalers by the supplier. The burden shall be upon the supplier to48 prove that the proposed transferee or merged wholesaler is not qualified. In determining whether49 the proposed transferee or merged wholesaler is a qualified person, the supplier shall consider,50 but is not limited to, the following factors:Page 62 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251(1) Whether the proposed transferee has the financial capacity to purchase the2wholesaler or the specified interest upon terms that will not jeopardize the3future operation of the business, or whether the new entity resulting from a4merger will have such financial capacity to operate successfully, and whether5under such ownership the wholesaler will be able to provide financial support6necessary to the successful operation of the business, including market7spending, capital expenditures, and any equity capitalization or refinancing8requirements.9(2) Whether the proposed transferee, or the new entity resulting from a merger,10has the proven business experience to hire and maintain a management team11to successfully operate the business.12(3) If the proposed transferee does not have experience in the premixed cocktail13business, whether the transferee has other experience to enable it to operate a14distributorship successfully and whether the transferee is willing to participate15in training provided by the supplier.16(4) Whether the proposed transferee, or a party to the merger, already is a17wholesaler for the supplier in a different territory and, if so, whether sufficient18time and attention can be devoted to an additional market area.19 In determining whether a proposed transferee, or the entity resulting from a merger, is a20 qualified person, a supplier must consider the business on its own merits and may not designate21 a specifically identified person as the only purchaser who will be approved. Nothing in this22 subsection is intended to or should be construed to authorize a supplier to match and reassign to23 a designee the right to purchase the ownership interest, subject to the designee purchasing the24 ownership interest. Provided, however, a supplier may match and reassign to a designee the right25 to purchase the ownership interest, subject to the designee purchasing the ownership interest at26 the price and on the conditions applicable to the purchase proposed by the transferee, if the total27 annual gross sales of the supplier's premixed cocktails sold by the selling wholesaler total no28 more than five percent (5%) of the selling wholesaler's total annual gross sales of wine, malt29 beverages, and premixed cocktails in dollars.30 (c) Damages. – A supplier who disapproves or prevents a proposed assignment or change31 of ownership or merger in violation of this section shall be liable to the wholesaler who proposed32 to make the sale, assignment, transfer, or merger for the difference between the disapproved sale33 price and a subsequent actual price of a sale of the same assets completed within a reasonable34 period. If, however, the proposed transfer or sale was to a business associate at a bargain price,35 the amount of compensation shall be at least the fair market value of the interest proposed to be36 sold or transferred, minus the proceeds of an actual sale of the interest completed within a37 reasonable time.38 "§ 18B-1408. Article part of all franchise agreements.39 The provisions of this Article shall be part of all franchise agreements as defined in40 G.S. 18B-1402 and may not be altered by the parties. A wholesaler's rights under this Article41 may not be waived or superseded by the provisions of a written franchise agreement prepared by42 a supplier that are in any way inconsistent with or contrary to any part of this Article. The rights43 of a wholesaler under this Article shall remain in effect regardless of a provision in a written44 franchise agreement prepared by a supplier that purports to require arbitration of a franchise45 dispute or that purports to require legal remedies to be sought in a different jurisdiction.46 "§ 18B-1409. Mediation at direction of Alcoholic Beverage Control Commission.47 If a dispute arises between a wholesaler and supplier under this Article, and such dispute48 appears likely to lead to litigation, the Commission, upon request of any party or on its own49 initiative, may require the parties to participate in mediation in an effort to resolve the dispute.50 This authority shall be in addition to the Commission's authority to issue declaratory rulings51 pursuant to G.S. 150B-4. The Commission may designate the mediator, in which case theHouse Bill 921-Second Edition Page 63General Assembly Of North Carolina Session 20251 Commission shall pay the mediator's fee, or the Commission may direct the parties to agree upon2 and share the costs of a mediator. If the parties then cannot agree upon a mediator, the3 Commission shall designate the mediator, and the fees shall be divided evenly by the parties. The4 Commission shall direct that the mediation be completed within a specified period of time.5 Except for injunctive relief, no lawsuit or other legal action concerning the dispute may be filed6 until the mediation is completed and is unsuccessful, unless necessary to avoid expiration of a7 statute of limitation."8SECTION 22.(eee) G.S. 66-58 reads as rewritten:9 "§ 66-58. Sale of merchandise or services by governmental units.10 (a) Except as provided in this section, it is unlawful for any unit, department, or agency11 of the State government, or any division or subdivision of the unit, department, or agency, or any12 individual employee or employees of the unit, department, or agency in his, her, or their capacity13 as employee or employees thereof to engage directly or indirectly in the sale of goods, wares, or14 merchandise in competition with citizens of the State, or to engage in the operation of restaurants,15 cafeterias or other eating places in any building owned by or leased in the name of the State, or16 to maintain service establishments for the rendering of services to the public ordinarily and17 customarily rendered by private enterprises, or to provide transportation services, or to contract18 with any person, firm, or corporation for the operation or rendering of the businesses or services19 on behalf of the unit, department, or agency, or to purchase for or sell to any person, firm, or20 corporation any article of merchandise in competition with private enterprise. The leasing or21 subleasing of space in any building owned, leased, or operated by any unit, department, agency,22 division, or subdivision of the State for the purpose of operating or rendering of any of the23 businesses or services referred to in this section is prohibited.24 (b) Subsection (a) of this section does not apply to any of the following:25…26(29) The ABC Commission and local ABC boards for purposes of the sale of27premixed cocktails.28 …."29SECTION 22.(fff) G.S. 105-113.68 reads as rewritten:30 "§ 105-113.68. Definitions; scope.31 (a) Definitions. – The following definitions apply in this Article:32…33(8) Person. – Defined in G.S. 105-228.90.34(8a) Premixed cocktail. – Defined in G.S. 18B-101.35…36(13) Wholesaler or importer. – When used with reference to a wholesaler or an37importer of wine or wine, malt beverages, or premixed cocktails, the term38includes (i) a resident winery and a wine producer that sells its wines, or wine39produced for the permittee under contract, at wholesale to a retailer or at retail40and retail, (ii) a resident brewery that sells its malt beverages, or malt41beverages produced for the permittee under contract, at wholesale to a retailer42or at retail. retail, and (iii) a resident distillery that sells its premixed cocktails,43or premixed cocktails produced for the permittee under contract, at wholesale44to a retailer or at retail. This subdivision applies to a person that holds any of45the following permits issued by the ABC Commission:46…47g. Malt beverages wholesaler permit under G.S. 18B-1109.48h. Wine producer permit under G.S. 18B-1114.3.49i. Premixed cocktail wholesaler permit under G.S. 18B-1109.1.50…Page 64 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251 (b) Scope. – All alcoholic beverages shall be taxed as provided in this Article regardless2 whether they meet all criteria of these definitions."3SECTION 22.(ggg) G.S. 105-113.79 reads as rewritten:4 "§ 105-113.79. City wholesaler license.5 A city may require city malt beverage and wine beverage, wine, and premixed cocktail6 wholesaler licenses for businesses located inside the city, but may not require a license for a7 business located outside the city, regardless whether that business sells or delivers malt beverages8 or wine beverages, wine, or premixed cocktails inside the city. The city may charge an annual9 tax of not more than thirty-seven dollars and fifty cents ($37.50) for a city malt beverage10 wholesaler or a city wine wholesaler license.license under this section."11SECTION 22.(hhh) G.S. 105-113.80 reads as rewritten:12 "§ 105-113.80. Excise taxes on malt beverages, wine, and liquor.liquor, and premixed13cocktails.14 (a) Malt Beverage. – An excise tax of sixty-one and seventy-one hundredths cents15 (61.71¢) per gallon is levied on the sale of malt beverages.16 (b) Wine. – An excise tax of twenty-six and thirty-four hundredths cents (26.34¢) per17 liter is levied on the sale of unfortified wine, and an excise tax of twenty-nine and thirty-four18 hundredths cents (29.34¢) per liter is levied on the sale of fortified wine.19 (c) Liquor. – An excise tax of thirty percent (30%) is levied on spirituous liquor and20 antique spirituous liquor sold in ABC stores, permitted distilleries, and in establishments holding21 an on- or off-premises unfortified wine permit in a distillery estate district pursuant to22 G.S. 18B-1006(r). Pursuant to G.S. 18B-804(b), the price of liquor on which this tax is computed23 is the spirituous liquor or antique spirituous liquor seller's price plus (i) the State ABC warehouse24 freight and bailment charges and (ii) a markup for local ABC boards, unless otherwise specified25 by law.26 (d) Premixed Cocktails. – An excise tax of two dollars and fifty cents ($2.50) per gallon27 is levied on the sale of premixed cocktails."28SECTION 22.(iii) G.S. 105-113.81 reads as rewritten:29 "§ 105-113.81. Exemptions.30 (a) Major Disaster. – Wholesalers and importers of malt beverages and wine beverages,31 wine, and premixed cocktails are not required to remit excise taxes on malt beverages or wine32 beverages, wine, or premixed cocktails rendered unsalable by a major disaster. To qualify for33 this exemption, the wholesaler or importer shall prove to the satisfaction of the Secretary that a34 major disaster occurred. A major disaster is the destruction, spoilage, or rendering unsalable of35 50 or more cases, or the equivalent, of malt beverages beverages or premixed cocktails or 25 or36 more cases, or the equivalent, of wine.37 (b) Sales to Oceangoing Vessels. – Wholesalers and importers of malt beverages and38 wine beverages, wine, and premixed cocktails are not required to remit excise taxes on malt39 beverages and wine beverages, wine, and premixed cocktails sold and delivered for use on40 oceangoing vessels. An oceangoing vessel is a ship that plies the high seas in interstate or foreign41 commerce, in the transport of freight or passengers, or both, for hire exclusively. To qualify for42 this exemption the beverages shall be delivered to an officer or agent of the vessel for use on that43 vessel. Sales made to officers, agents, crewmen, or passengers for their personal use are not44 exempt.45 (c) Sales to Armed Forces of the United States. – Wholesalers and importers of malt46 beverages and wine beverages, wine, and premixed cocktails are not required to remit excise47 taxes on malt beverages and wine beverages, wine, and premixed cocktails sold to the Armed48 Forces of the United States. The Secretary may require malt beverages and wine beverages, wine,49 and premixed cocktails sold to the Armed Forces of the United States to be marked "For Military50 Use Only" to facilitate identification of those beverages.House Bill 921-Second Edition Page 65General Assembly Of North Carolina Session 20251 (d) Out-of-State Sales. – Wholesalers and importers of malt beverages and wine2 beverages, wine, and premixed cocktails are not required to remit excise taxes on malt beverages3 and wine beverages, wine, and premixed cocktails shipped out of this State for resale outside the4 State.5 (e) Tasting. – Resident breweries, wineries, and distilleries are not required to remit6 excise taxes on malt beverages, wine, premixed cocktails, or spirituous liquor given free of7 charge to customers, visitors, and employees on the manufacturer's licensed premises for8 consumption on those premises.9 …."10SECTION 22.(jjj) G.S. 105-113.83 is amended by adding a new subsection to read:11 "(a2) Premixed Cocktails. – The excise tax on premixed cocktails levied under12 G.S. 105-113.80(d) is payable by the resident wholesaler or importer who first handles the13 beverages in this State. The taxes on premixed cocktails are payable only once on the same14 beverages. The wholesaler or importer must file a monthly report, and the report is due on or15 before the fifteenth day of the month following the month covered by the report. The report must16 include the sales records for the month for which the taxes are paid, indicate the amount of excise17 tax due, and indicate separately any transactions to which the excise tax does not apply."18SECTION 22.(lll) G.S. 105-113.83A(a) reads as rewritten:19 "(a) Registration Required. – A person who holds a wine shipper permit issued under20 G.S. 18B-1001.1 or one or more of the following ABC permits issued under Article 11 of Chapter21 18B of the General Statutes must register with the Secretary:22…23(12) Nonresident spirituous liquor vendor.24(13) Premixed cocktail wholesaler.25(14) Nonresident premixed cocktail vendor."26SECTION 22.(mmm) G.S. 105-251.2(b) is amended by adding a new subdivision27 to read:28"(5) A premixed cocktail wholesaler, as defined in G.S. 18B-1401."29SECTION 22.(nnn) G.S. 153A-145.7 reads as rewritten:30 "§ 153A-145.7. Hours of certain alcohol sales.31 In accordance with G.S. 18B-1004(c), a county may adopt an ordinance allowing for the sale32 of malt beverages, unfortified wine, premixed cocktails, fortified wine, and mixed beverages33 beginning at 10:00 A.M. on Sunday pursuant to the licensed premises' permit issued under34 G.S. 18B-1001."35SECTION 22.(ooo) G.S. 160A-205.3 reads as rewritten:36 "§ 160A-205.3. Hours of certain alcohol sales.37 In accordance with G.S. 18B-1004(c), a city may adopt an ordinance allowing for the sale of38 malt beverages, unfortified wine, premixed cocktails, fortified wine, and mixed beverages39 beginning at 10:00 A.M. on Sunday pursuant to the licensed premises' permit issued under40 G.S. 18B-1001."41SECTION 22.(ppp) The rules of the Alcoholic Beverage Control Commission42 pertaining to the possession, consumption, and sale of malt beverages shall apply equally to43 premixed cocktails. The Commission shall amend its rules as soon as practicable to be consistent44 with this section.45SECTION 22.(qqq) Section 22(ddd) of this act is effective when it becomes law and46 applies to distribution agreements entered into and transactions conducted on or after that date.47 The remainder of this section becomes effective October 1, 2026, and applies to premixed48 cocktails sold on or after that date.4950 ALLOW WINERIES TO SELL MALT BEVERAGES FOR ON-PREMISES51 CONSUMPTIONPage 66 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251SECTION 23.(a) G.S. 18B-1001(1) reads as rewritten:2"(1) On-Premises Malt Beverage Permit. – An on-premises malt beverage permit3authorizes (i) the retail sale of malt beverages for consumption on the4premises, either alone or mixed with other beverages, (ii) the retail sale of malt5beverages in the manufacturer's original container for consumption off the6premises, and (iii) the retail sale of malt beverages in a cleaned and sanitized7container that is filled or refilled and sealed for consumption off the premises8and that identifies the permittee and the date the container was filled or9refilled. The permit also authorizes the permittee to transfer malt beverages,10not more than four times per calendar year, to another on-premises malt11beverage permittee that is under common ownership or control as the12transferor. Except as authorized by this subdivision, transfers of malt13beverages by on-premises malt beverage permittees, purchases of malt14beverages by a retail permittee from another retail permittee for the purpose15of resale, and sales of malt beverages by a retail permittee to another retail16permittee for the purpose of resale are unlawful. In addition, a particular brand17of malt beverages may be transferred only if both the transferor and transferee18are located within the territory designated between the brewery and the19wholesaler on file with the Commission. Prior to or contemporaneous with20any such transfer, the transferor shall notify each wholesaler who distributes21the transferred product of the transfer. The notice shall be in writing or22verifiable electronic format and shall identify the transferor and transferee, the23date of the transfer, quantity, and items transferred. It also authorizes the24holder of the permit to ship malt beverages in closed containers to individual25purchasers inside and outside the State. The permit may be issued for any of26the following:27a. Restaurants.28b. Hotels.29c. Eating establishments.30d. Food businesses.31e. Retail businesses.32f. Private clubs.33g. Convention centers.34h. Community theatres.35i. Breweries as authorized by subdivisions (7) and (8) of36G.S. 18B-1104(a).37j. Sports and entertainment venues.38k. Bars.39l. The holder of a distillery permit authorized under G.S. 18B-1105.40m. Wineries as authorized by G.S. 18B-1101(5a) and41G.S. 18B-1102(5a)."42SECTION 23.(b) G.S. 18B-1101 reads as rewritten:43 "§ 18B-1101. Authorization of unfortified winery permit.44 The holder of an unfortified winery permit may:45…46(5) Regardless of the results of any local wine election, sell the wine owned by47the winery at the winery for on- or off-premise consumption upon obtaining48the appropriate permit under G.S. 18B-1001;49(5a) Regardless of the results of any local malt beverage election, sell malt50beverages for on-premise consumption upon obtaining the appropriate permit51under G.S. 18B-1001;House Bill 921-Second Edition Page 67General Assembly Of North Carolina Session 20251…."2SECTION 23.(c) G.S. 18B-1102 reads as rewritten:3 "§ 18B-1102. Authorization of fortified winery permit.4 The holder of a fortified winery permit may:5…6(5) Regardless of the results of any local wine election, sell the winery's wine for7on-or off-premise consumption upon obtaining the appropriate permit under8G.S. 18B-1001.9(5a) Regardless of the results of any local malt beverage election, sell malt10beverages for on-premise consumption upon obtaining the appropriate permit11under G.S. 18B-1001.12 …."13SECTION 23.(d) This section is effective when it becomes law.1415 ALLOW OFF-PREMISES WINE TASTINGS AND CLARIFY THAT WINE SHOP16 PERMITTEES MAY HOLD MALT BEVERAGE SHOP PERMITS AND THAT MALT17 BEVERAGE SHOP PERMITTEES MAY HOLD WINE SHOP PERMITS18SECTION 24. G.S. 18B-1001 reads as rewritten:19 "§ 18B-1001. Kinds of ABC permits; places eligible.20 When the issuance of the permit is lawful in the jurisdiction in which the premises are located,21 the Commission may issue the following kinds of permits:22…23(3) On-Premises Unfortified Wine Permit. – An on-premises unfortified wine24permit authorizes (i) the retail sale of unfortified wine for consumption on the25premises, either alone or mixed with other beverages, (ii) the retail sale of26unfortified wine in the manufacturer's original container for consumption off27the premises, and (iii) the retail sale of unfortified wine dispensed from a tap28connected to a pressurized container utilizing carbon dioxide or similar gas29into a cleaned and sanitized container that is filled or refilled and sealed for30consumption off the premises and that identifies the permittee and the date the31container was filled or refilled. refilled, and (iv) wine tastings conducted at a32consumer's private residence or a location not holding a permit under this33section where consumers are educated about selection, serving, and storing of34wine by the permittee or the permittee's employee or agent utilizing wine from35the permit holder's inventory and consumers may purchase wine for future36delivery or pickup at the permittee's permitted premises. The permit also37authorizes the permittee to transfer unfortified wine, not more than four times38per calendar year, to another on-premises unfortified wine permittee that is39under common ownership or control as the transferor. Except as authorized40by this subdivision, transfers of wine by on-premises unfortified wine41permittees, purchases of wine by a retail permittee from another retail42permittee for the purpose of resale, and sale of wine by a retail permittee to43another retail permittee for the purpose of resale are unlawful. In addition, a44particular brand of wine may be transferred only if both the transferor and45transferee are located within the territory designated between the winery and46the wholesaler on file with the Commission. Prior to or contemporaneous with47any such transfer, the transferor shall notify each wholesaler who distributes48the transferred product of the transfer. The notice shall be in writing or49verifiable electronic format and shall identify the transferor and transferee, the50date of the transfer, quantity, and items transferred. The holder of the permit51is authorized to ship unfortified wine in closed containers to individualPage 68 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251purchasers inside and outside the State. Orders received by a winery by2telephone, Internet, mail, facsimile, or other off-premises means of3communication shall be shipped pursuant to a wine shipper permit and not4pursuant to this subdivision. The permit may be issued for any of the5following:6a. Restaurants.7b. Hotels.8c. Eating establishments.9d. Private clubs.10e. Convention centers.11f. Cooking schools.12g. Community theatres.13h. Wineries.14i. Wine producers.15j. Retail businesses.16k. Sports and entertainment venues.17l. Bars.18m. The holder of a distillery permit authorized under G.S. 18B-1105.19n. Breweries.20Additionally, an on-premises unfortified wine permit authorizes a permittee21that is a restaurant, eating establishment, hotel, private club, bar, brewery,22winery, or wine producer to sell at retail single-serving unfortified wine drinks23for consumption off the premises, including delivery by the permittee or a24delivery service permittee. Single-serving unfortified wine drinks sold for25consumption off the premises must be sold with food and shall be packaged26in a container with a secure lid or cap and in a manner designed to prevent27consumption without removal of the lid or cap. The container shall be no28greater than 24 fluid ounces. In accordance with G.S. 20-138.7, the29transportation of single-serving unfortified wine drinks in a motor vehicle30shall not be unlawful if the container is an unopened manufacturer's original31container or is transported in a locked container, in the trunk, or in the area32behind the last upright seat in a motor vehicle not equipped with a trunk.33Notwithstanding G.S. 18B-1010, the sale of more than two single-serving34unfortified wine drinks at one time shall not be unlawful if the single-serving35unfortified wine drinks are sold for delivery or consumption off the permittee's36premises. No single-serving unfortified wine by the drink ordered for37off-premises consumption shall be provided to any person other than the38purchaser of the single-serving unfortified wine drink, except that in the case39of delivery, the delivery service permittee through its employees or agents40may provide the single-serving unfortified wine drink to a person other than41the purchaser if the permittee or the permittee's employees or agents verify42that the person is over 21 years of age using age verification software requiring43the recipient to provide a form of photographic identification authorized in44G.S. 18B-302(d)(1).45…46(16) Wine Shop Permit. – A wine shop permit authorizes (i) the retail sale of malt47beverages, unfortified wine, and fortified wine in the manufacturer's original48container for consumption off the premises, (ii) the retail sale of malt49beverages or unfortified wine dispensed from a tap connected to a pressurized50container utilizing carbon dioxide or similar gas in a cleaned and sanitized51container that is filled or refilled and sealed for consumption off the premisesHouse Bill 921-Second Edition Page 69General Assembly Of North Carolina Session 20251and that identifies the permittee and the date the container was filled or2refilled, and (iii) wine tastings on the premises conducted and supervised by3the permittee in accordance with subdivision (15) of this section. section, and4(iv) wine tastings conducted at a consumer's private residence or a location5not holding a permit under this section where consumers are educated about6selection, serving, and storing of wine by the permittee or the permittee's7employee or agent utilizing wine from the permit holder's inventory and8consumers may purchase wine for future delivery or pickup at the permittee's9permitted premises. It also authorizes the holder of the permit to ship malt10beverages, unfortified wine, and fortified wine in closed containers to11individual purchasers inside and outside the State. The permit may be issued12for retail businesses whose primary purpose is selling malt beverages and wine13for consumption off the premises and regularly and customarily educating14consumers through tastings, classes, and seminars about the selection, serving,15and storing of wine. The holder of the permit is authorized to sell unfortified16wine for consumption on the premises, provided that that, except as otherwise17provided in this subdivision, the sale of wine for consumption on the premises18does not exceed forty percent (40%) of the establishment's total sales for any1930-day period. The holder of a wine-tasting permit not engaged in the20preparation or sale of food on the premises is not subject to Part 6 of Article 821of Chapter 130A of the General Statutes. A holder of a wine shop permit shall22also be eligible to hold a malt beverage shop permit under23G.S. 18B-1001(16a). If the holder of a wine shop permit also holds a malt24beverage shop permit, then the sales of alcoholic beverages for consumption25on the premises may not exceed forty percent (40%) of the establishment's26total sales for any 30-day period.27(16a) Malt Beverage Shop Permit. – A malt beverage shop permit authorizes (i) the28retail sale of malt beverages, unfortified wine, and fortified wine in the29manufacturer's original container for consumption off the premises, (ii) the30retail sale of malt beverages dispensed from a tap connected to a pressurized31container utilizing carbon dioxide or similar gas in a cleaned and sanitized32container that is filled or refilled and sealed for consumption off the premises33and that identifies the permittee and the date the container was filled or34refilled, and (iii) malt beverage tastings on the premises conducted and35supervised by the permittee in accordance with subdivision (18) of this36section. It also authorizes the holder of the permit to ship malt beverages,37unfortified wine, and fortified wine in closed containers to individual38purchasers inside and outside the State. The permit may be issued for retail39businesses whose primary purpose is selling malt beverages for consumption40off the premises and regularly and customarily educating consumers through41tastings, classes, and seminars about the selection, serving, and storing of malt42beverages. The holder of the permit is authorized to sell malt beverages for43consumption on the premises, provided that that, except as otherwise provided44in this subdivision, the sale of malt beverages, combined, for consumption on45the premises does not exceed forty percent (40%) of the establishment's total46sales for any 30-day period. The holder of a malt beverage tasting permit not47engaged in the preparation or sale of food on the premises is not subject to48Part 6 of Article 8 of Chapter 130A of the General Statutes. A holder of a malt49beverage shop permit shall also be eligible to hold a wine shop permit under50G.S. 18B-1001(16). If the holder of a malt beverage shop permit also holds a51wine shop permit, then the sales of alcoholic beverages for consumption onPage 70 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251the premises may not exceed forty percent (40%) of the establishment's total2sales for any 30-day period.3…."45 CLARIFY SAFE HARBOR FOR LATE ABC PERMIT RENEWALS6SECTION 25.(a) G.S. 18B-903 reads as rewritten:7 "§ 18B-903. Duration of permit; renewal and transfer.8 (a) Duration. – Once issued, ABC permits shall be valid for the following periods, unless9 earlier surrendered, suspended or revoked:10…11(5) All other ABC permits shall be valid for one year, from May 1 to April 30.May1231 of the following year, as provided in subsection (b3) of this section.13 (b) Renewal. – Application for renewal of an ABC permit shall be on a form provided by14 the Commission. An application for renewal shall be accompanied by an application fee. The15 application fee shall be the same amount as the initial fee set in G.S. 18B-902, except that the16 renewal application fee for each wine shop permit or malt beverage shop permit shall be five17 hundred dollars ($500.00), and the renewal application fee for each mixed beverages permit and18 each guest room cabinet permit shall be one thousand dollars ($1,000). The fee shall be paid by19 May 1 of each year. A renewal fee shall not be refundable.20 (b1) Registration. – Each person holding a malt beverage, fortified wine, or unfortified21 wine permit issued pursuant to G.S. 18B-902(d)(1) through G.S. 18B-902(d)(6) shall register by22 May 1 of each year on a form provided by the Commission, in order to provide information23 needed by the State in enforcing this Chapter and to support the costs of that enforcement. The24 registration required by this subsection shall be accompanied by an annual registration and25 inspection fee of four hundred dollars ($400.00) for each permit held. The fee shall be paid by26 May 1 of each year. A registration fee shall not be refundable. Failure to pay the annual27 registration and inspection fee shall result in revocation of the permit.28 …29 (b3) Safe Harbor; Late Fees. – Notwithstanding subsection (a) of this section, no permit30 issued under Article 10 of this Chapter, other than a special occasion permit, limited special31 occasion permit, special one-time permit, or special auction permit, shall expire or be revoked or32 cancelled by the Commission shall not revoke a permit for failure to pay a renewal application33 fee or an annual registration and inspection fee until June 1 of each year. year, and the permittee34 shall be allowed to operate under the permit until that date. No later than five business days after35 April 30 of each year, the Commission shall notify permittees who have not paid any required36 renewal application fees or annual registration and inspection fees as of April 30. April 30 by37 email or first-class mail. The Commission shall charge a late fee of twenty-five percent (25%) of38 the renewal application fee or registration and inspection fee for a permit for which the renewal39 application fee or registration and inspection fee is submitted after April 30.40 …."41SECTION 25.(b) G.S. 18B-900(a)(6) reads as rewritten:42"(6) Not have had an alcoholic beverage permit revoked within three years, except43where the revocation was based solely on a permittee's failure to pay the44annual registration and inspection fee required in G.S. 18B-903(b1)."45SECTION 25.(c) This section is retroactively effective June 28, 2024.4647 MODIFY THE PROHIBITIONS ON ABC PERMITTEES EMPLOYING CERTAIN48 INDIVIDUALS49SECTION 26.(a) G.S. 18B-1003(c) reads as rewritten:50 "(c) Certain Employees Prohibited. – A permittee shall not knowingly employ in the sale51 or distribution of alcoholic beverages any person who has been:House Bill 921-Second Edition Page 71General Assembly Of North Carolina Session 20251(1) Convicted of a felony within three years;2(2) Convicted of a felony more than three years previously and has not had his3the person's citizenship restored;4(3) Convicted of an alcoholic beverage offense within two years; or5(4) Convicted of a misdemeanor controlled substances offense within two years;6(5) A past permit holder under Chapter 18B of the General Statutes whose permit7had been revoked within the last 18 months and who had been the permit8holder at the location where the person would be employed.9 For purposes of this subsection, "conviction" has the same meaning as in G.S. 18B-900(b).10 To avoid undue hardship, the Commission may, in its discretion, exempt persons on a11 case-by-case basis from this subsection. If the Commission has notified a permittee of a potential12 violation of this subsection and the permittee claims undue hardship within 30 days of receipt of13 the notification, the permittee may continue to employ the person in question until the final14 determination of undue hardship."15SECTION 26.(b) The ABC Commission shall adopt rules to amend its rules16 consistent with this section.17SECTION 26.(c) This section is effective when it becomes law and applies to18 individuals employed by ABC permittees and undue hardship proceedings initiated or pending19 on or after that date.2021 ALLOW IN-STAND SALES AT CONCERTS22SECTION 27. G.S. 18B-1009 reads as rewritten:23 "§ 18B-1009. In-stand sales.24 (a) Nothing in this Chapter shall be construed to prohibit a retail permittee from selling25 for consumption, malt beverages in the seating areas of stadiums, ballparks, theaters,26 amphitheaters, and other similar public places with a seating capacity of 3,000 or more during27 concerts or professional sporting events, provided that:28(1) The seating areas are designated as part of the retail permittee's licensed29premises;30(2) The retail permittee has notified the Commission, in writing, of its intent to31sell malt beverages in the seating areas at concerts or sporting events;32(3) Service of food and nonalcoholic beverages is available in the seating areas;33(4) The retail permittee has certified to the Commission that it has trained its34employees:35a. To identify underage persons and intoxicated persons; and36b. To refuse to sell malt beverages to those persons as required by37G.S. 18B-305; and38(5) The employees do not verbally shout or hawk the sale of malt beverages.39 (b) The North Carolina Alcoholic Beverage Control Commission shall adopt rules for the40 suspension of alcohol sales in the latter portion of concerts or professional sporting events in41 order to protect public safety at these events."4243 AMEND DEFINITION OF TOURISM ABC ESTABLISHMENT44SECTION 28. G.S. 18B-101(14a) reads as rewritten:45"(14a) "Tourism ABC establishment" means a restaurant or hotel that is in a county46in which the on-premises or off-premises sale of malt beverages or unfortified47wine is authorized in at least one city and that meets both either of the48following requirements:49a. Is located on property, a property line of which is located within 1.550miles 2 miles of the end of an entrance or exit ramp of a junction on a51national scenic parkway designed to attract local, State, national, andPage 72 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251international tourists between the State line and Milepost 469,2provided that the Eastern Band of Cherokee Indians tribal alcoholic3beverage control commission established under G.S. 18B-112 shall4have exclusive authority to issue permits pursuant to this subdivision5between Milepost 460 and the southern terminus of the national scenic6byway at Milepost 469 for any restaurant or hotel that is located7wholly on Indian Country lands.8b. Is located in a county in which the on-premises or off-premises sale of9malt beverages or unfortified wine is authorized in at least one city.on10property, a property line of which is located within 3 miles of the State11line, that is adjacent to a North Carolina scenic byway."1213 PREVENT USAGE OF MARKUPS TO SET MINIMUM PRICING FOR SPECIFIC14 PRODUCTS15SECTION 29. G.S. 18B-804, as amended by Section 22(cc) of this act, reads as16 rewritten:17 "§ 18B-804. Alcoholic beverage pricing.18 …19 (b) Sale Price of Spirituous Liquor. – The sale of spirituous liquor, including antique20 spirituous liquor, sold at the uniform State price shall consist of the following components:21(1) The distiller's or the antique spirituous liquor seller's price.22(2) The freight and bailment charges of the State warehouse as determined by the23Commission.24(3) A markup for local boards as determined by the Commission.25(4) The tax levied under G.S. 105-113.80(c), which shall be levied on the sum of26subdivisions (1), (2), and (3).27(5) An additional markup for local boards equal to three and one-half percent (328½%) of the sum of subdivisions (1), (2), and (3).29(6) A charge of one cent (1¢) on each bottle containing 50 milliliters or less and30five cents (5¢) on each bottle containing more than 50 milliliters. For any31nonbottled product, a charge of one cent (1¢) on each stock keeping unit32containing not more than 50 milliliters and five cents (5¢) on each stock33keeping unit containing more than 50 milliliters.34(6a) The bailment surcharge.35(6b) An additional charge for local boards of one cent (1¢) on each bottle36containing 50 milliliters or less and five cents (5¢) on each bottle containing37more than 50 milliliters. For any nonbottled product, a charge of one cent (1¢)38on each stock keeping unit containing not more than 50 milliliters and five39cents (5¢) on each stock keeping unit containing more than 50 milliliters.40(7) A rounding adjustment, the formula of which may be determined by the41Commission, so that the sale price will be divisible by five.42(8) If the spirituous liquor is sold to a mixed beverage permittee or mobile bar43services permittee for resale in mixed beverages, a charge of twenty dollars44($20.00) on each four liters and a proportional sum on lesser quantities.45(9) If the spirituous liquor is sold to a guest room cabinet permittee for resale, a46charge of twenty dollars ($20.00) on each four liters and a proportional sum47on lesser quantities.48 …49 (b2) Uniform Markups, Charges, and Adjustments. – All charges, surcharges, markups,50 and adjustments determined by the Commission pursuant to subsection (b) of this section shall51 be uniform and applicable to all spirituous liquor approved for sale in the State. The CommissionHouse Bill 921-Second Edition Page 73General Assembly Of North Carolina Session 20251 shall not apply charges, surcharges, markups, or adjustments based on the type or amount of2 spirituous liquor in order to establish a minimum price for a product or class of products.3 …."45 REVISE LAW GOVERNING GAME NIGHTS6SECTION 30.(a) G.S. 14-309.28 reads as rewritten:7 "§ 14-309.28. Limits on game night events.8 The following limitations apply to game night events:9(1) The number of game night events conducted or sponsored by an exempt10organization shall be limited to four 24 events per year.11…12(5) A qualified facility authorized to host a game night under this Part shall not13host more than two 24 game nights in any calendar month.year."14SECTION 30.(b) This section becomes effective October 1, 2026, and applies to15 game nights conducted on or after that date.1617 REVISE LAW GOVERNING RAFFLES18SECTION 31.(a) G.S. 14-309.15 reads as rewritten:19 "§ 14-309.15. Raffles.20 (a) It is lawful for any nonprofit organization, candidate, political committee, or any21 government entity within the State, to conduct raffles in accordance with this section. Each22 regional or county chapter of a nonprofit organization is eligible to conduct raffles in accordance23 with this section independently of its parent organization. Any person who conducts a raffle in24 violation of any provision of this section is guilty of a Class 2 misdemeanor. Upon conviction25 that person shall not conduct a raffle for a period of one year. It is lawful to participate in a raffle26 conducted pursuant to this section. It is not a violation of State law to advertise a raffle conducted27 in accordance with this section. A raffle conducted pursuant to this section is not "gambling."28 For the purpose of this section, "candidate" and "political committee" have the meaning provided29 by Article 22A of Chapter 163 of the General Statutes, who have filed organization reports under30 that Article, and who are in good standing with the appropriate board of elections. Receipts and31 expenditures of a raffle by a candidate or political committee shall be reported in accordance32 with Article 22A of Chapter 163 of the General Statutes, and ticket purchases are contributions33 within the meaning of that Article.34 (b) For purposes of this section "raffle" means a The following definitions apply in this35 section:36(1) 50/50 raffle. – A raffle conducted by a nonprofit organization or any37government entity within the State whereby funds collected by sale of raffle38tickets are split evenly between the prize winner or winners and the nonprofit39organization or government entity after the raffle drawing.40(2) Candidate. – As defined in Article 22A of Chapter 163 of the General Statutes.41This term only includes candidates who have filed organization reports under42that Article and who are in good standing with the appropriate board of43elections.44(3) Net proceeds of a raffle. – The receipts less the cost of prizes awarded.45(4) Political committee. – As defined in Article 22A of Chapter 163 of the General46Statutes. This term only includes political committees that have filed47organization reports under that Article and that are in good standing with the48appropriate board of elections.49(5) Raffle. – A game in which the prize is won by random drawing of the name50or number of one or more persons purchasing chances.51 (c) A nonprofit organization may hold no more than five raffles per year.Page 74 House Bill 921-Second EditionGeneral Assembly Of North Carolina Session 20251 (d) Except as provided in subsection (g) of this section, the maximum cash prize that may2 be offered or paid for any one raffle is one hundred twenty-five thousand dollars ($125,000) and3 if merchandise is used as a prize, and it is not redeemable for cash, the maximum fair market4 value of that prize may be one hundred twenty-five thousand dollars ($125,000). The total cash5 prizes offered or paid by any nonprofit organization shall not exceed two hundred fifty thousand6 dollars ($250,000) in any calendar year. The total fair market value of all prizes offered by any7 nonprofit organization, either in cash or in merchandise that is not redeemable for cash, shall not8 exceed two hundred fifty thousand dollars ($250,000) in any calendar year.9 (e) Raffles shall not be conducted in conjunction with bingo.10 (f) As used in this subsection, "net proceeds of a raffle" means the receipts less the cost11 of prizes awarded. No less than ninety percent (90%) of the net proceeds of a raffle shall be used12 by the nonprofit organization for charitable, religious, educational, civic, or other nonprofit13 purposes. None of the net proceeds of the raffle shall be used to pay any person to conduct the14 raffle, or to rent a building where the tickets are received or sold or the drawing is conducted.15 (g) Real property may be offered as a prize in a raffle. Any nonprofit organization16 offering real property as a prize in a raffle shall provide the property free from all liens, provide17 an owner affidavit and indemnity agreement, and provide a title commitment for the property18 and shall make that commitment available for inspection upon request. The total appraised value19 of all real estate prizes offered by any nonprofit organization shall not exceed two million two20 hundred fifty thousand dollars ($2,250,000) in any calendar year.21 (h) Notwithstanding any other subsection of this section, it is lawful for a federally22 insured depository institution to conduct a savings promotion raffle under G.S. 53C-6-20,23 54-109.64, 54B-140, or 54C-180.24 (i) The restrictions set forth in subsections (c) through (g) of this section do not apply to25 50/50 raffles conducted by nonprofit organizations or government entities within the State."26SECTION 31.(b) This section becomes effective August 1, 2026, and applies to27 offenses committed on or after that date.2829 SEVERABILITY CLAUSE AND EFFECTIVE DATE30SECTION 32.(a) If any provision of this act or the application thereof to any person31 or circumstances is held invalid, such invalidity shall not affect other provisions or applications32 of this act that can be given effect without the invalid provision or application and, to this end,33 the provisions of this act are declared to be severable.34SECTION 32.(b) Except as otherwise provided, this act is effective when it becomes35 law.House Bill 921-Second Edition Page 75
ABC & Gaming Omnibus Bill
Sponsors
Rep. Ray Pickett (R) sponsors H 921, and 3 members have co-sponsored it.
Committees
H 921 went before 2 committees: Alcoholic Beverage Control and Finance.
History
H 921 has taken 6 actions since Apr 10, 2025, the latest on May 19, 2026.
| Chamber | Action | |||
|---|---|---|---|---|
May 19, 2026 | House | Reptd Fav Com Substitute | ||
May 19, 2026 | House | Ruled Material | ||
May 19, 2026 | House | Re-ref Com On Finance | ||
Apr 14, 2025 | House | Passed 1st Reading | ||
Apr 14, 2025 | House | Ref to the Com on Alcoholic Beverage Control, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House |
Votes
H 921 has not gone to a roll call.
Source: ncleg.gov · legiscan.com