A BILL TO BE ENTITLED
AN ACT to regulate the sale of fortified malt beverages.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 18B‑101 reads as rewritten:
"§ 18B‑101.  Definitions.
As used in this Chapter, unless the context requires otherwise:
…
(6a)	"Finance officer" means the local board employee, other than a general manager, who is responsible for keeping the accounts of the local board, receiving and depositing receipts, disbursing funds, and any other duties assigned by the local board or Commission.
(6b)	"Fortified malt beverage" means a beverage that meets all of the following requirements:
a.	Contains at least nine percent (9%) alcohol by volume and no more than fifteen percent (15%) alcohol by volume.
b.	Is treated by processing, filtration, or another method of manufacture that is not generally recognized as a traditional process in the production of a beer as described in 27 C.F.R. § 25.55.
c.	Contains an added flavor containing alcohol or any other ingredient containing alcohol.
d.	The manufacturer is required to file a formula for approval with the United States Alcohol and Tobacco Trade and Tax Bureau pursuant to 27 C.F.R. § 25.55.
(7)	"Fortified wine" means any wine, of more than sixteen percent (16%) and no more than twenty‑four percent (24%) alcohol by volume, made by fermentation from grapes, fruits, berries, rice, or honey; or by the addition of pure cane, beet, or dextrose sugar; or by the addition of pure brandy from the same type of grape, fruit, berry, rice, or honey that is contained in the base wine and produced in accordance with the regulations of the United States.
…
(9)	"Malt beverage" means beer, lager, fortified malt beverage, malt liquor, ale, porter, and any other brewed or fermented beverage except unfortified or fortified wine as defined by this Chapter, containing at least one‑half of one percent (0.5%), and not more than fifteen percent (15%), alcohol by volume. Any malt beverage containing more than six percent (6%) alcohol by volume shall bear a label clearly indicating the alcohol content of the malt beverage.
…."
SECTION 2.  G.S. 18B‑800 reads as rewritten:
"§ 18B‑800.  Sale of alcoholic beverages in ABC stores.
(a)	Spirituous Liquor. – Except as provided in Article 10 of this Chapter, spirituous liquor may be sold only in ABC stores operated by local boards.
(a1)	Fortified Malt Beverages. – Except as provided in Article 10 of this Chapter, and notwithstanding any other provision of law, fortified malt beverages may be sold only in ABC stores operated by local boards.
(b)	Fortified Wine. – In addition to spirituous liquor and fortified malt beverages, ABC stores may sell fortified wine. ABC stores may also sell wine products, irrespective of alcohol content by volume, which were classified as fortified wine by the ABC Commission prior to July 7, 2004.
…."
SECTION 3.  G.S. 18B‑804 is amended by adding a new subsection to read:
"(e)	Sale Price of Fortified Malt Beverage. – The sale price of fortified malt beverages shall include the tax levied on beer by G.S. 105‑113.80(a) as well as State and local sales taxes."
SECTION 4.  This act becomes effective July 1, 2014.