2023 ABC Bills filed

Several ABC-related bills have been filed recently, including this year’s ABC Omnibus Bill.  Below is more information about various provisions which could impact the ABC industry.

SB489: Clarifications to ABC Statute

            This bill corrects the definition of a “bar”, so that breweries, wineries, and distilleries are no longer excluded from the definition of a “bar”.  This will allow breweries and wineries to obtain mixed beverage bar permits.  The bill also clarifies that a permittee with a transitional permit (due to a change in ownership, such as an asset sale) may purchase malt beverages or wine for resale, as well as spirits for use in mixed beverages (i.e., eliminating any requirement that the permittee with a transitional permit must purchase under the prior permittee’s permit).

SB490: ABC Omnibus Bill

            This year’s Omnibus Bill makes a number of additional changes primarily with respect to distilleries and mixed beverage permit holders. It removes the “Mixed Beverage Tax” on premixed cocktails between 0.5% and 11% ABV that are sold to mixed beverage permittees in closed packaging (i.e., ready to drink pre-canned liquor cocktails).  The current $300 cap on point of sales advertising materials and promotional displays would be raised to $1,000, which the North Carolina Craft Brewers Guild indicates may disadvantage small producers. 

To-go and delivery sales of mixed beverages would be allowed by mixed beverage permit holders, with limitations on quantities.  Mixed beverage permittees could purchase product at any ABC store in their same county (which eliminates the “designated store” requirement that previously existed).  Additionally, since a number of mixed beverage permittees have been dinged for a violation after a tax stamp has detached from a bottle of spiritous liquor after purchase from the local ABC Board, this bill allows mixed beverage permittees to cover tax stamps with a clear adhesive to ensure the stamp remains affixed to the bottle. 

This bill also allows Spiritous Liquor Special Event permit holders to sell two mixed beverages per customer per calendar day (per distillery) at spiritous liquor special events (other than shopping malls, street festivals, holiday festivals, or balloon races).

Finally, the transitional permit period (for an ownership change, such as an asset sale) would be increased from 60 to 120 days, providing a less disruptive permitting process for new owners of a business.

SB526: Wholesale Discounts

            Beer and wine wholesalers could offer quantity discounts to retail permittees.  Wholesalers could also charge a set fee on the sale of less than a full case of product, which may disadvantage small producers and self-distributing breweries, according to the North Carolina Craft Brewers Guild. 

SB551: COVID Safe Harbor

            During the COVID state of emergency, safe harbor protections gave North Carolina businesses protection from the legal consequences of customers or employees contracting COVID on business premises.  Now that the state of emergency has expired, these protections would become permanent.

For more information: Scott K. Burger; Andrew Wright

Updated: May 5, 2023