GENERAL ASSEMBLY OF NORTH CAROLINA
1993 SESSION
CHAPTER 415
The General Assembly of North Carolina enacts:
Section 1. G.S. 18B-101(13a) reads as rewritten:
"(13a) 'Special ABC area' means an area in a
city or county, either unincorporated or incorporated, with less than 500
permanent residents that:
(1) Borders on
another state;
(2) Where ABC
stores are permitted in one or more cities in the county;
(3) Where the
on-premises or off-premises sale of unfortified wines and malt beverages by
qualified persons and establishments, including persons and establishments
qualified under G.S. 18B-603(c) or G.S. 18B-603(d), is permitted countywide or
in two or more cities in the county; and such area that meets all of the
following requirements:
a. Has fewer than 500 permanent residents.
b. Is located in a county that borders another state, that has at least one city that has approved the operation of an ABC store, and in which the sale of unfortified wine and malt beverages is permitted countywide or in at least two cities.
(a)c. Contains more than 500 contiguous
acres and is made up of privately-owned land and land owned by an
association or a club having that is exempt from income tax on
its membership income under Article 4 of Chapter 105 of the General Statutes,
has more than 200 members and members, was created for
municipal and recreational purposes; purposes, and, (b) Which for
three or more years years, has levied assessments or dues and
provided municipal services; and services.
(c) Is
incorporated as a municipality or has within such area a private association or
club that has been determined or is treated by the Internal Revenue Service to
be exempt from tax on member source or exempt function income."
Sec. 2. G.S. 18B-101 is amended by adding a new subdivision to read:
"(14a) 'Tourism ABC establishment' means a restaurant or hotel that meets both of the following requirements:
a. Is located within 1.5 miles of the end of an entrance or exit ramp of a junction on a national scenic parkway designed to attract local, State, national, and international tourists between Milepost 305 and 460.
b. Is located in a county in which the on-premises sale of malt beverages or unfortified wine is authorized in at least one city."
Sec. 3. G.S. 18B-200(d) reads as rewritten:
"(d) Employees. - The
Commission may authorize the chairman to employ, discharge, and otherwise
supervise subordinate personnel of the Commission. The Commission shall
appoint at least one hearing officer with authority employee to
make investigations, hold hearings, and hearings requested under G.S.
18B-1205, and represent the Commission in contested case hearings or perform
any other duties authorized by Chapter 150B."
Sec. 4. G.S. 18B-201(a) reads as rewritten:
"(a) Financial Interests
Restricted. - No person shall be appointed to or employed by the Commission, a
local board, or the ALE Division, Division if that person or a
member of his household that person's family related to him that
person by blood or marriage to the first degree has or controls,
directly or indirectly, a financial interest in any commercial alcoholic
beverage enterprise, including any business required to have an ABC
permit. The Commission may exempt from this provision any person, other
than a Commission member, when the financial interest in question is so
insignificant or remote that it is unlikely to affect the person's official
actions in any way. Exemptions may be granted only to individuals, not to
groups or classes of people, and each exemption shall be in writing, be
available for public inspection, and contain a statement of the financial
interest in question."
Sec. 5. G.S. 18B-503 reads as rewritten:
"§ 18B-503. Disposition of seized alcoholic beverages.
(a) Storage. - A law-enforcement officer who seizes alcoholic beverages as evidence of an ABC law violation shall provide for the storage of those alcoholic beverages until the commencement of the trial or administrative hearing relating to the violation, unless some other disposition is authorized under this section.
(b) Disposition Before
Trial. - After giving notice to each defendant, to any other known owner, and
to the Commission, a judge may make order any of the following
dispositions of alcoholic beverages seized as evidence of an ABC law violation:
(1) He shall order the The
destruction of any malt beverages except that amount needed for evidence at
trial.
(2) He may order the The
sale of any alcoholic beverages other than malt beverages or nontaxpaid
alcoholic beverages, and other than any alcoholic beverages needed for evidence
at trial, if the trial is likely to be delayed for more than 90 days, or if the
quantity or nature of the alcoholic beverages is such that storage is
impractical or unduly expensive.
(3) He may order The
destruction of the alcoholic beverages if storage or sale is not practical.
(4) He may order
continued Continued storage of the alcoholic beverages.
(c) Disposition After Trial. - After the criminal charge is resolved, a judge may order the following dispositions of seized alcoholic beverages:
(1) If the owner or possessor of the alcoholic beverages is found guilty of a criminal charge relating to those alcoholic beverages, the judge may order the sale or destruction of any alcoholic beverages that were held until trial.
(2) If the owner or
possessor of the alcoholic beverages is found not guilty, or if charges are
dismissed or otherwise resolved in his favor, favor of the owner or
possessor, the judge shall order the alcoholic beverages returned to that
owner or possessor, except as provided in subdivision (3).
(3) If the owner or
possessor of the alcoholic beverages is found not guilty, or if charges are
otherwise resolved in his favor, favor of the owner or possessor, but
possession of the alcoholic beverages by him that owner or possessor would
be unlawful, the judge shall order the alcoholic beverages either sold or
destroyed.
(4) If ownership of the alcoholic beverages remains uncertain after trial or after the charges have been dismissed, the judge may order the alcoholic beverages held, or the alcoholic beverages sold and the proceeds held, for a specified time, until ownership of the alcoholic beverages can be determined.
(d) Holding for Administrative
Hearings. - If alcoholic beverages used as evidence in a criminal proceeding
are also needed as evidence at an administrative hearing, a judge shall not
order any of the dispositions set out in subsection (c), but shall order the
alcoholic beverages held for the administrative hearing and for a determination
of final disposition by the Commission or one of its hearing officers. A
hearing officer for the Commission. The Commission may, before or
after an administrative hearing, order any of the dispositions authorized under
subsections (b) and (c). If no related criminal proceeding has commenced,
the Commission or its hearing officers shall not order sale or
destruction of alcoholic beverages until notice has been given to the district
attorney for the district where the alcoholic beverages were seized or any
violation of ABC laws related to the seizure of the alcoholic beverages is
likely to be prosecuted.
(e) Sale Procedure. - The
sale of unfortified wine or fortified wine shall be by public auction unless
those wines would likely become spoiled or lose value in the time required to
arrange a public auction. If spoilage or loss of value is likely, the
judge or hearing officer ordering the sale or the Commission may
authorize sale at the prevailing wholesale price, as determined by the
Commission, to one or more persons holding the appropriate retail wine permits
in the county in which the wine was seized, or in a neighboring county if there
are no such persons in the county in which the wine was seized.
Spirituous liquor may be sold only to the local ABC board serving the city or
county in which the liquor was seized, or, if there is no local board for that
city or county, to the nearest local board. The sale price shall be at
least ten percent (10%) less than the price the local board would pay for the
same liquor bought through the State warehouse.
(f) Sale Proceeds. -
An agency selling alcoholic beverages seized under the provisions of this
Chapter shall keep the proceeds in a separate account until some other
disposition is ordered by a judge or a Commission hearing officer. If, in the
Commission. In a criminal proceeding, if the owner or
possessor of the alcoholic beverages is found guilty of a violation relating to
seizure of the alcoholic beverages, or if he the owner or
possessor is found not guilty, or if guilty or the charge is
dismissed or otherwise resolved in his favor, favor of the owner or
possessor, but the possession of the alcoholic beverages by him that
owner or possessor would be unlawful, or if the ownership of the alcoholic
beverages cannot be determined, the proceeds from the sale of those alcoholic
beverages shall be paid to the school fund of the county in which the alcoholic
beverages were seized. If the owner or possessor of alcoholic beverages
seized for violation of the ABC laws is found not guilty of criminal charges
relating to the seizure of those beverages, or if beverages or the
charge is dismissed or otherwise resolved in his favor, favor of the
owner or possessor, and if possession of the alcoholic beverages by him that
owner or possessor was lawful when the beverages were seized, the proceeds
from the sale of those alcoholic beverages shall be paid to him. the
owner or possessor. The agency making the sale may deduct and retain
from the amount to be placed in the county school fund the costs of storing the
seized alcoholic beverages and of conducting the sale, but may not deduct those
costs from the amount to be turned over to an owner or possessor of the
alcoholic beverages.
(g) Court Action by
Owner. - Any person who has claims any of the following claims
resulting from the seizure of alcoholic beverages may bring an action in
the superior court of the county in which the alcoholic beverages were seized:
(1) Alcoholic To
be the owner of alcoholic beverages owned by him are wrongfully held; that
are wrongfully held.
(2) Alcoholic To
be the owner of alcoholic beverages owned by him that are
needed as evidence in another proceeding; proceeding.
(3) He is To be entitled
to proceeds from a sale of seized alcoholic beverages; beverages.
(4) He is To be entitled
to restitution for alcoholic beverages wrongfully destroyed."
Sec. 6. G.S. 18B-504(e) reads as rewritten:
"(e) Disposition after Trial. - The presiding judge in a criminal proceeding for violation of ABC laws may take the following actions after resolution of a charge against the owner or possessor of property subject to forfeiture under this section:
(1) If the owner or possessor of the property is found guilty of an ABC offense, the judge may order the property forfeited.
(2) If the owner or
possessor of the property is found not guilty, or if the charge is dismissed or
otherwise resolved in his favor, favor of the owner or possessor, the
judge shall order the property returned to the owner or possessor.
(3) If ownership of the
property remains uncertain after trial, the judge may order the property held
for a specified time to determine ownership. If the judge finds that
ownership cannot be determined with reasonable effort, he the judge shall
order the property forfeited.
(4) Regardless of the disposition of the charge, if the property is something that may not be possessed lawfully, the judge shall order it forfeited.
(5) If the property is
also needed as evidence at an administrative hearing, the judge shall provide
that his the order does not go into effect until the Commission or
one of its hearing officers determines that the property is no longer
needed for the administrative proceeding."
Sec. 7. G.S. 18B-603(d)(4) reads as rewritten:
"(4) The Commission may issue brown-bagging permits for private clubs and congressionally chartered veterans organizations but may no longer issue and may not renew brown-bagging permits for restaurants, hotels, and community theatres. A restaurant, hotel, or community theatre may not be issued a mixed beverage permit under subdivision (1) until it surrenders its brown-bagging permit."
Sec. 8. G.S. 18B-603(f) reads as rewritten:
"(f) Permits Not Dependent on Elections. - The Commission may issue the following kinds of permits without approval at an election:
(1) Special occasion permits;
(2) Limited special occasion permits;
(3) Brown-bagging permits
for private clubs; clubs and congressionally chartered veterans
organizations;
(4) Culinary permits, except as restricted by subdivision (d)(5);
(5) Special one-time permits issued under G.S. 18B-1002;
(6) All permits listed in G.S.
18B-1100. G.S. 18B-1100;
(7) On-premises malt beverage permits and on-premises unfortified wine permits for a tourism ABC establishment."
Sec. 9. G.S. 18B-603(h) reads as rewritten:
"(h) Permits Based on Existing Permits. - In any county in which the sale of malt beverage on and off premises, the sale of unfortified wine on and off premises, the sale of mixed beverages, and the operation of an ABC system has been allowed in at least six cities in the county, or in any county adjacent to that county in which an ABC system has been allowed and which borders on the Atlantic Ocean, the Commission may issue permits to sports clubs as defined in G.S. 18B-1000(8) throughout the county. The Commission may issue the following permits:
(1) On and Off Premises Malt Beverage;
(2) On and Off Premises Unfortified Wine;
(3) On and Off Premises Fortified Wine; or
(4) Mixed Beverage. Beverages.
Retail establishments holding mixed beverage permits shall
purchase their spirituous liquor at the nearest municipal ABC system
store. The Commission may also issue on-premises malt beverage,
unfortified wine, fortified wine and mixed beverages permits to a sports club
located in a county adjacent to any county that has approved the sale of mixed
beverages pursuant to the last paragraph of G.S. 18B-603(d), if the county in
which the sports club is located borders another state and has at least one
city that has approved the sale of mixed beverages. Sports clubs holding
mixed beverages permits shall purchase their spirituous liquor at the nearest municipal
ABC system store that has been designated for such purchases. store
that is located in the county.
The Commission may further issue on-premises malt beverage and on-premises unfortified wine permits to a sports club located in a county bordering on another state that is adjacent to any county in which permits were issued pursuant to this subsection prior to August 1, 1993. The sports clubs must be located in the unincorporated areas of a county, in which the sale of malt beverages and unfortified wine is not permitted, and where there are six or more municipalities in that county where the sale of malt beverages and unfortified wine is permitted."
Sec. 10. G.S. 18B-900(c) reads as rewritten:
"(c) Who Must Qualify; Exceptions. - For an ABC permit to be issued to and held for a business, each of the following persons associated with that business must qualify under subsection (a):
(1) The owner of a sole proprietorship;
(2) Each member of a firm, association or general partnership;
(2a) Each general partner in a limited partnership;
(3) Each officer, director and
owner of more than twenty-five percent (25%) or more of the stock
of a corporation except that the requirement of subdivision (a)(1) does not
apply to such an officer, director, or stockholder unless he is a manager or is
otherwise responsible for the day-to-day operation of the business;
(4) The manager of an establishment operated by a corporation other than an establishment with only off-premises malt beverage, off-premises unfortified wine, or off-premises fortified wine permits;
(5) Any manager who has been empowered as attorney-in-fact for a nonresident individual or partnership."
Sec. 11. G.S. 18B-902 reads as rewritten:
"§ 18B-902. Application for permit; fees.
(a) Form. - An application for an ABC permit shall be on a form prescribed by the Commission and shall be notarized. The application shall be signed and sworn to by each person required to qualify under G.S. 18B-900(c).
(b) Investigation. - Before issuing a new permit, the Commission, with the assistance of the ALE Division, shall investigate the applicant and the premises for which the permit is requested. The Commission may request the assistance of local ABC officers in investigating applications. An applicant shall cooperate fully with the investigation.
(c) False Information. - Knowingly making a false statement in an application for an ABC permit shall be grounds for denying, suspending, revoking or taking other action against the permit as provided in G.S. 18B-104 and shall also be unlawful.
(d) Fees. - An application for an ABC permit shall be accompanied by payment of the following application fee:
(1) On-premises malt beverage permit - $200.00.
(2) Off-premises malt beverage permit - $200.00.
(3) On-premises unfortified wine permit - $200.00.
(4) Off-premises unfortified wine permit - $200.00.
(5) On-premises fortified wine permit - $200.00.
(6) Off-premises fortified wine permit - $200.00.
(7) Brown-bagging permit - $200.00, unless the application is for a restaurant seating less than 50, in which case the fee shall be $100.00.
(8) Special occasion permit - $200.00.
(9) Limited special occasion permit - $25.00.
(10) Mixed beverages permit - $750.00.
(11) Culinary permit - $100.00.
(12) Unfortified winery permit -
$100.00. $150.00.
(13) Fortified winery permit -
$100.00. $150.00.
(14) Limited winery permit -
$100.00. $150.00.
(15) Brewery permit - $100.00. $150.00.
(16) Distillery permit - $100.00. $150.00.
(17) Fuel alcohol permit - $10.00. $50.00.
(18) Wine importer permit -
$100.00. $150.00.
(19) Wine wholesaler permit -
$100.00. $150.00.
(20) Malt beverage importer permit -
$100.00. $150.00.
(21) Malt beverage wholesaler permit -
$100.00. $150.00.
(22) Bottler permit - $100.00. $150.00.
(23) Salesman permit - $25.00.
(24) Vendor representative permit - $25.00.
(25) Nonresident malt beverage vendor
permit - $25.00. $50.00.
(26) Nonresident wine vendor permit -
$25.00. $50.00.
(27) Any special one-time permit under G.S. 18B-1002 - $25.00.
(28) Winery special event permit - $100.00.
(29) Mixed beverages catering permit - $100.00.
(30) Guest room cabinet permit - $750.00.
(e) Fee for Combined Applications.
- If application is made at the same time for retail malt beverage, unfortified
wine and fortified wine permits for a single business location, the total fee
for those applications shall be two hundred dollars ($200.00). If
application is made at the same time for brown-bagging and special occasion
permits for a single business location, the total fee for those applications
shall be three hundred dollars ($300.00). If application is made at the
same time for wine and malt beverage importer permits, the total fee for those
applications shall be one hundred fifty dollars ($100.00). ($150.00).
If application is made at the same time for wine and malt beverage
wholesaler permits, the total fee for those applications shall be one hundred fifty
dollars ($100.00). ($150.00). If application is made in the
same year for vendor representative permits to represent more than one vendor,
only one fee shall be paid. If application is made at the same time for
nonresident malt beverage vendor and nonresident wine vendor permits, the total
fee for those applications shall be twenty-five dollars ($25.00).
(f) Fee Not Refundable. - The fee required by subsection (d) shall not be refunded.
(g) Fees to Treasurer. - All fees collected by the Commission under this or any other section of this Chapter shall be remitted to the State Treasurer for the General Fund."
Sec. 12. G.S. 18B-904(f) reads as rewritten:
"(f) Local Government
Objections. - In any hearing in which the suitability of a location or
applicant is an issue, a local government official may be designated by the
local governing authority to make recommendations pursuant to G.S. 18B-901(b)
and may testify at the hearing without further qualification or
authorization. The governing body of a city or county may
designate an official of the city or county, by name or by position, to make
recommendations concerning the suitability of a person or of a location for an
ABC permit. The governing body of a city or county shall notify the Commission
of an official designated under this subsection. An official designated
under this subsection shall be allowed to testify at a contested case hearing
in which the suitability of a person or of a location for an ABC permit is an
issue without further qualification or authorization."
Sec. 13. G.S. 18B-906 reads as rewritten:
"§ 18B-906. Applicability of Administrative Procedure Act.
(a) Act Applies. - An ABC
permit is a 'license' within the meaning of G.S. 150A-2, 150B-2, and
a Commission action on issuance, suspension suspension, or
revocation of an ABC permit, other than a temporary permit issued under G.S.
18B-905, is a 'contested case' subject to the provisions of Chapter 150A 150B
except as provided in subsection (b). this section.
(b) Exception on Hearing Location. - Hearings on ABC permits shall be held in Ahoskie, Asheville, Bryson City, Charlotte, Elizabeth City, Fayetteville, Franklin, Goldsboro, Greensboro, Greenville, Hickory, Jacksonville, Kinston, New Bern, Raleigh, Statesville, Wilmington, and Winston-Salem. Hearings shall be held within 100 miles, as best can be determined by the Commission, of the county seat of the county in which the licensed business or proposed business is located. The hearing may be held, however, at any place upon agreement of the Commission and all other parties.
(c) Exception on New Evidence. - In making a final decision in a contested case in which an issue is whether to deny an application for an ABC permit because either the applicant or the location for the proposed ABC permit is unsuitable, the Commission may hear evidence of acts that occurred after the date the contested case hearing was held if the evidence is admissible under G.S. 150B-29(a). New evidence heard under this subsection is not grounds for reversal or remand under G.S. 150B-51(a)."
Sec. 14. G.S. 18B-1000 is amended by inserting a new subdivision in the appropriate alphabetical order to read:
"(5a) Residential private club. - A private club that is located in a privately owned, primarily residential and recreational development."
Sec. 15. G.S. 18B-1000(8) reads as rewritten:
"(8) Sports club. - An
establishment substantially engaged in the business of providing athletic
facilities. an 18-hole golf course, a tennis court, or both. The
sports club can either be open to the general public or for to members
and their guests. Sports clubs shall only include golf courses. To
qualify as a sports club, an establishment's gross receipts for club activities
shall be greater than its gross receipts for alcoholic beverages. This
provision does not prohibit a sports club from operating a
restaurant. Receipts for food shall be included in with the club activity
fee."
Sec. 16. G.S. 18B-1004(e) reads as rewritten:
"(e) This section does not
prohibit at any time the wholesale delivery and sale of unfortified wine,
fortified wine, and malt beverages to retailers issued permits pursuant to G.S.
18B-1001. G.S. 18B-1001 or G.S. 18B-1002(a)(2) or (5)."
Sec. 17. G.S. 18B-1006(h) reads as rewritten:
"(h) Purchase
Restrictions. - A retail permittee may purchase malt beverages, unfortified
wine, or fortified wine only from a wholesaler or importer who maintains
a place of business in this State and has the proper permit."
Sec. 18. G.S. 18B-1006(j) reads as rewritten:
"(j) Recreation/Sports
Recreation Districts. - The Notwithstanding the
provisions of Article 6 of this Chapter, the Commission may issue permits
for the sale of malt beverages and beverages, unfortified wine
wine, fortified wine, and mixed beverages to qualified businesses in a
recreation in recreation/sports districts when they are wholly located
in a County where there are two or more municipalities that are wholly located
in the County that allow the sale of alcoholic beverages while the sale of any
alcoholic beverages is prohibited in the nonincorporated areas of the County,
and the area to be included in the recreation/sports district has been
previously identified by one of those municipalities through a resolution of
intent for annexation. The issuance of the permits shall be upon the formal
written request of the City indicating the intent to annex the area or upon
formal written request of the County Commissioners with the request designating
the geographic boundaries of the district in which the permits may be issued.
For the purposes of this act a recreation/sports district
shall not exceed one-half mile in diameter and shall host at least five
sporting events each year. district. A 'recreation district' is an
area that is located in a county that has not approved the issuance of permits,
has at least two cities that have approved the sale of malt beverages, wine,
and the operation of an ABC store, and contains a facility of at least 450
acres where five or more public auto racing events are held each year.
The recreation district includes the area within a half-mile radius of the
racing facility."
Sec. 19. G.S. 18B-1006(k) reads as rewritten:
"(k) Special Residential
Private Club and Sports Club Permits. - The Commission may issue the
permits listed in G.S. 18B-1001 to qualified persons and establishments
located within a private club located in a private development, 18B-1001,
without approval at an election: election, to a residential
private club or a sports club that is located in a county that meets the
requirements set in any of the following subdivisions:
(1) In any county which
has Has a population of less than 45,000 by the last federal census,
and in which there are has at least three but not more than four
cities that have approved the sale of malt beverages or unfortified wine;
and wine, has a.Only only one city in the county that
has approved the on-premises sale of malt beverages, and b. At has
at least two cities in the county have that approved the
operation of ABC stores before the ratification date of this section; or July
10, 1992.
(2) In any county
bordering on Borders a county that has called elections pursuant to
G.S. 18B-600(f); and 18B-600(f), and:
a. Has
not approved the a.The issuance of permits permits, other
than malt beverage permits, in unincorporated areas of the county has
not been approved, county, and b. Not has no more than
three cities in the county have that approved the operation of
ABC stores before the ratification date of this section. July 10,
1992; or
b. Both the county and the two cities within the county have approved the operation of ABC stores.
(3) Is bordered by four counties that have not approved the issuance of permits and have at least one city that has approved the operation of an ABC store.
(4) Has not approved the issuance of permits, has at least three cities that have approved the issuance of only either off-premises malt beverage or both off-premises malt beverage and off-premises unfortified wine permits, and has only one city that, as of July 1, 1993, had approved the operation of an ABC store.
The mixed beverages transportation purchase-transportation
permit authorized by G.S. 18B-404(b) shall be issued by a local board
operating a store located in the county. A private club located in the
county is defined as a club or lodge located in a privately owned, primarily
residential and recreational development, which is open only to members by
invitation of the club's board of directors and the guests of these members."
Sec. 20. G.S. 18B-1104(7) reads as rewritten:
"(7) In areas where the
sale is legal, sell the brewery's malt beverages at the brewery upon receiving
a permit under G.S. 18B-1001(1). The brewery also may obtain a malt
beverage wholesaler permit to sell, deliver, and ship at wholesale only malt
beverages manufactured by the brewery. This The authorization
of this subdivision applies to a brewery that sells, to consumers at the
brewery, to wholesalers, to retailers, and to exporters, fewer than
310,000 gallons of malt beverages produced by it per year."
Sec. 21. G.S. 18B-1106(a) reads as rewritten:
"(a) Authorization. - The holder of a wine importer permit may:
(1) Import fortified and unfortified wines from outside the United States in closed containers;
(2) Store those wines;
(3) Sell those wines at
wholesale to wine wholesalers for purposes of resale."
Sec. 22. G.S. 18B-1108 reads as rewritten:
"§ 18B-1108. Authorization of malt beverages importer permit.
The holder of a malt beverages importer permit may:
(1) Import malt beverages from outside the United States in closed containers;
(2) Store those malt beverages;
(3) Sell those malt
beverages at wholesale to malt beverage wholesalers for purposes
of resale."
Sec. 23. G.S. 18B-1113 reads as rewritten:
"§ 18B-1113. Authorization of nonresident malt beverage vendor permit.
The holder of a nonresident malt beverage vendor permit may
sell, deliver deliver, and ship malt beverages in this State only
to wholesalers, importers importers, and bottlers licensed under
this Chapter, as authorized by the ABC laws. The malt beverages must
come to rest at the licensed premises of a malt beverage wholesaler in this
State before being resold to a retailer. A nonresident malt beverage
vendor permit may be issued to a brewery, importer an importer, or
a bottler outside North Carolina who desires to sell, deliver deliver,
and ship malt beverages into this State."
Sec. 24. G.S. 18B-1114 reads as rewritten:
"§ 18B-1114. Authorization of nonresident wine vendor permit.
The holder of a nonresident wine vendor permit may sell, deliver
deliver, and ship unfortified and fortified wine in this State only
to wholesalers, importers importers, and bottlers licensed under
this Chapter, as authorized by the ABC laws. The unfortified and
fortified wine must come to rest at the licensed premises of a wine wholesaler
in this State before being resold to a retailer. A nonresident wine
vendor permit may be issued to a winery, a wholesaler, an importer,
or a bottler outside North Carolina who desires to sell, deliver deliver,
and ship unfortified and fortified wine into this State."
Sec. 25. G.S. 18B-1116(a) reads as rewritten:
"(a) Prohibitions. - It shall be unlawful for any manufacturer, bottler, or wholesaler of any alcoholic beverages, or for any officer, director, or affiliate thereof, either directly or indirectly to:
(1) Require that an alcoholic beverage retailer purchase any alcoholic beverages from that person to the full or partial exclusion of any other alcoholic beverages offered for sale by other persons in this State; or
(2) Have any direct or indirect financial interest in the business of any alcoholic beverage retailer in this State or in the premises where the business of any alcoholic beverage retailer in this State is conducted; or
(3) Lend or give to any alcoholic beverage retailer in this State or his employee or to the owner of the premises where the business of any alcoholic beverage retailer in this State is conducted, any money, service, equipment, furniture, fixtures or any other thing of value.
A brewery qualifying under G.S. 18B-1104(7) to act as a wholesaler or retailer of its own malt beverages is not subject to the provisions of this subsection concerning financial interests in, and lending or giving things of value to, a wholesaler or retailer with respect to the brewery's transactions with the retail business on its premises. The brewery is subject to the provisions of this subsection, however, with respect to its transactions with all other wholesalers and retailers."
Sec. 26. G.S. 105-113.68(a)(13) reads as rewritten:
"(13) 'Wholesaler or importer' when used
with reference to wholesalers or importers of wine or malt beverages includes
resident wineries that sell their wines at retail and resident breweries that
produce fewer than 62,000 310,000 gallons of malt beverages per
year."
Sec. 27. G.S. 18B-805(c)(2) reads as rewritten:
"(2) The local board shall spend for law enforcement an amount set by the board which shall be at least five percent (5%) of the gross receipts remaining after the distribution required by subdivision (1). The local board may contract with the ALE Division to provide the law enforcement required by this subdivision. Notwithstanding the provisions of any local act, this provision shall apply to all local boards."
Sec. 28. G.S. 18B-1303(b) reads as rewritten:
"(b) No Discrimination. - A wholesaler shall service all retail permit holders within his designated territory without discrimination and shall make a good faith effort to make available to each retail permit holder in the territory each brand of malt beverage which the wholesaler has been authorized to distribute in that area."
Sec. 29. G.S. 18B-604(b) reads as rewritten:
"(b) Effect of Favorable County Vote on City. - If a majority of voters vote in favor of certain alcoholic beverage sales in a county election, sale of that kind of alcoholic beverage shall be lawful throughout the county, regardless of the vote in any city at that or any previous or subsequent election, and regardless of any local act making sales unlawful in that city, unless the local act was ratified before the effective date of Article II, Section 24(1)(j) of the Constitution of North Carolina. A county malt beverage or unfortified [wine] election in favor of a particular ballot proposition which is more restrictive than the form of sale already allowed in a city within that county shall not affect the legality of those previously authorized sales in the city."
Sec. 30. Section 11 of this act becomes effective September 1, 1993, and applies to applications for ABC permits filed on or after that date. The remaining sections of this act are effective upon ratification.
In the General Assembly read three times and ratified this the 20th day of July, 1993.
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Dennis A. Wicker
President of the Senate
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Daniel Blue, Jr.
Speaker of the House of Representatives