A BILL TO BE ENTITLED
AN ACT to require the merger of ABC systems located in a county with two or more abc systems; to repeal the purchase‑transportation permit requirement for spirituous liquor; to require the abc commission to submit a quarterly report on its process for obtaining a contract for state warehouse services; to allow the purchase of individual bottles when placing a special order of spirituous liquor; to allow local abc boards to charge a delivery fee when delivering spirituous liquor to mixed beverages permittees; to allow local governments the option of operating abc stores on sundays; and to allow spirituous liquor tastings at abc stores, as recommended by the joint legislative program evaluation oversight committee.
The General Assembly of North Carolina enacts:

part i. require consolidation in counties with multiple abc systems
SECTION 1.(a)  By June 30, 2021, to ensure that no county has multiple ABC systems, all ABC systems located in a county with two or more ABC systems shall merge in accordance with the requirements set forth in G.S. 18B‑703. Notwithstanding the provisions of any local act, this section applies to all ABC systems. For purposes of this section, the term "ABC system" is as defined in G.S. 18B‑101.
SECTION 1.(b)  G.S. 18B‑700 is amended by adding a new subsection to read:
"(c1)	Limit on Number of Boards. – Notwithstanding any provision of law to the contrary, there shall be no more than one local ABC board in each county. If a jurisdiction holds an ABC store election under G.S. 18B‑602(g), the establishment of ABC stores is approved, and the jurisdiction that held the election is located in a county where an ABC board is already in operation, the jurisdiction that held the election shall merge its local ABC board with the existing ABC board in accordance with G.S. 18B‑703. Nothing in this subsection shall be construed as prohibiting a local ABC board from serving multiple cities, counties, or cities and counties."
SECTION 1.(c)  G.S. 18B‑703(e) reads as rewritten:
"(e)	Dissolution. – With the approval of the Commission, and subject to the limitation set forth in G.S. 18B‑700(c1), the cities or counties that have merged their ABC systems may dissolve the merged operation at any time and resume their prior separate operations or merge with a different ABC system in accordance with the requirements of this section."
SECTION 1.(d)  Subsections (b) and (c) of this section become effective June 30, 2021. The remainder of this section is effective when it becomes law.

part ii. repeal purchase‑transportation permit requirement for spirituous liquor
SECTION 2.(a)  G.S. 18B‑303 reads as rewritten:
"§ 18B‑303.  Amounts of alcoholic beverages that may be purchased.
(a)	Purchases Allowed. – Without a permit, a person may purchase at one time:
…
(4)	Fortified wine and spirituous liquor in any amount.
…
(c)	Greater Amounts. – Amounts of alcoholic beverages greater than those listed in subdivision (a)(3) may be purchased with a purchase‑transportation permit under G.S. 18B‑403."
SECTION 2.(b)  G.S. 18B‑403 reads as rewritten:
"§ 18B‑403.  Purchase‑transportation permit.
(a)	Amounts. – With a purchase‑transportation permit, a person may purchase and transport an amount of alcoholic beverages greater than the amount specified in G.S. 18B‑303(a). A permit authorizes the holder to transport from the place of purchase to the destination within North Carolina indicated on the permit at one time the following amount of alcoholic beverages:
(1)	A maximum of 100 liters of unfortified wine.

…
(e)	Restrictions on Permit. – A purchase may be made only from the store named on the permit. One copy of the permit shall be kept by the issuing person, one by the purchaser, and one by the store from which the purchase is made. The purchaser shall display his copy of the permit to any law‑enforcement officer upon request.
…
(g)	Special Occasion Purchase‑Transportation Permit. – When a person holds a special occasion for which a permit under G.S. 18B‑1001(8) or (9) is required, the purchase‑transportation permit issued to him may provide for the storage at and transportation to and from the site of the special occasion of unfortified wine for a period of no more than 48 hours before and after the special occasion. The purchase‑transportation permit authorizes that person to transport only the amounts of those alcoholic beverages authorized by subsection (a). The Commission may adopt rules to govern issuance of these extended purchase‑transportation permits."
SECTION 2.(c)  This section becomes effective July 1, 2019, and applies to fortified wine and spirituous liquor purchased on or after that date.

part iii. abc commission/quarterly report on process for obtaining a contract for state warehouse services
SECTION 3.(a)  Beginning October 15, 2019, and quarterly thereafter, the ABC Commission shall submit a written report to the chairs of the Joint Legislative Oversight Committee on Justice and Public Safety detailing the progress made in bidding and selecting an independent contractor for the receipt, storage, and distribution of spirituous liquor at and from the State warehouse in accordance with G.S. 18B‑204(a)(3). The report required under this section shall include all of the following:
(1)	The schedule for developing and issuing the Request for Proposal (RFP), including detailed explanations as to how the Commission is meeting the milestones identified on the schedule.
(2)	An identification of State agencies, departments, and other entities providing the Commission with technical assistance on RFP development and contract negotiations, including a detailed description of the assistance that is being provided.
(3)	A description of the Commission's consultation with local ABC boards, as that term is defined in G.S. 18B‑101, to ensure the boards' concerns and expectations are addressed during the RFP development and contract negotiations.
(4)	A copy of the RFP when it is released for bid.
(5)	A copy of the final contract entered into pursuant to G.S. 18B‑204(a)(3).
(6)	An implementation schedule for transitioning from the existing contract for services described in G.S. 18B‑204(a)(3) to the new contract.
SECTION 3.(b)  The reporting requirement set forth in subsection (a) of this section expires upon the earlier of the date of the award of the contract for services described in G.S. 18B‑204(a)(3) or January 1, 2022.

part iv. abc special orders/allow purchase of individual bottles
SECTION 4.(a)  G.S. 18B‑800 reads as rewritten:
"§ 18B‑800.  Sale of alcoholic beverages in ABC stores.
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(c)	Commission Approval. – Except as otherwise provided in subsection (c1) of this section, no ABC store may sell any alcoholic beverage which has not been approved by the Commission for sale in this State.
(c1)	Special Orders; Fee. – Through the process established by rule of the Commission for special orders of spirituous liquor that is not on the list approved by the Commission, ABC stores shall allow the purchase of individual bottles of spirituous liquor through that process. ABC stores may sell in store any bottles it receives in excess of what was purchased by the requesting customer. The Commission may establish and charge a fee to a customer placing a special order in an amount sufficient to cover the actual costs incurred by ABC stores in processing the special order.
…."
SECTION 4.(b)  This section becomes effective July 1, 2019, and applies to special orders placed on or after that date.

part v. local abc boards/allow delivery fee
SECTION 5.(a)  G.S. 18B‑701(a) reads as rewritten:
"(a)	Powers. – A local board shall have authority to do all of the following:
(1)	Buy, sell, transport, and possess alcoholic beverages as necessary for the operation of its ABC stores. If a local board provides delivery of spirituous liquor to a mixed beverages permittee, the local board may charge a fee to the permittee sufficient to cover the actual costs incurred by the local board in making the delivery.
(2)	Adopt rules for its ABC system, subject to the approval of the Commission.
(3)	Hire and fire employees for the ABC system.
(4)	Designate one employee as manager of the ABC system and determine his responsibilities.
(5)	Require bonds of employees as provided in the rules of the Commission.
(6)	Operate ABC stores as provided in Article 8.
(7)	Issue purchase‑transportation permits as provided in Article 4.
(8)	Employ local ABC officers or make other provision for enforcement of ABC laws as provided in Article 5.
(9)	Borrow money as provided in G.S. 18B‑702.
(10)	Buy and lease real and personal property, and receive property devised or given, as necessary for the operation of the ABC system.
(11)	Invest surplus funds as provided in G.S. 18B‑702.
(12)	Dispose of property in the same manner as a city council may under Article 12 of Chapter 160A of the General Statutes.
…."
SECTION 5.(b)  This section becomes effective July 1, 2019, and applies to deliveries made on or after that date.

part vi. allow local government option/abc store sales on sunday
SECTION 6.(a)  G.S. 18B‑802(b) reads as rewritten:
"(b)	Days. – No ABC store shall be open, and no ABC store employee shall sell alcoholic beverages, New Year's Day, Fourth of July, Labor Day, Thanksgiving Day, or Christmas Day. Except as otherwise provided under G.S. 153A‑145.8 or G.S. 160A‑205.4, no ABC store shall be open, and no ABC store employee shall sell alcoholic beverages, on any Sunday. A local board may otherwise determine the days on which its stores shall be closed."
SECTION 6.(b)  Article 6 of Chapter 153A of the General Statutes is amended by adding a new section to read:
"§ 153A‑145.8.  Allow ABC stores to operate on Sunday.
If a county operates at least one ABC store, the county may adopt an ordinance allowing ABC stores under the operation of the county to be open and selling alcoholic beverages on Sundays. A county must consult with its county ABC board prior to adopting an ordinance under this section."
SECTION 6.(c)  Article 8 of Chapter 160A of the General Statutes is amended by adding a new section to read:
"§ 160A‑205.4.  Allow ABC stores to operate on Sunday.
If a city operates at least one ABC store, the city may adopt an ordinance allowing ABC stores under the operation of the city to be open and selling alcoholic beverages on Sundays. A city must consult with its city ABC board prior to adopting an ordinance under this section."
SECTION 6.(d)  This section becomes effective July 1, 2019.

part vii. abc stores/allow in‑store spirituous liquor tastings
SECTION 7.(a)  G.S. 18B‑1114.7(a) reads as rewritten:
"(a)	Authorization. – The holder of a supplier representative permit, brokerage representative permit, or distillery permit issued under G.S. 18B‑1105 may obtain a spirituous liquor special event permit allowing the permittee to give free tastings of its spirituous liquors at ABC stores where the local ABC board has approved the tasting, trade shows, conventions, shopping malls, street festivals, holiday festivals, agricultural festivals, balloon races, local fund‑raisers, and other similar events approved by the Commission."
SECTION 7.(b)  G.S. 18B‑301(f)(1) reads as rewritten:
"(1)	Any person to consume fortified wine, spirituous liquor, or mixed beverages or to offer such beverages to another person at any of the following places:
a.	Unless a consumer tasting authorized by G.S. 18B‑1114.7 is being conducted, on the premises of an ABC store.
b.	Upon any property used or occupied by a local board.
c.	On any public road, street, highway, or sidewalk, unless a consumer tasting authorized by G.S. 18B‑1114.7 is being conducted."
SECTION 7.(c)  This section becomes effective July 1, 2019.

part viii. rules
SECTION 8.  The Alcoholic Beverage Control Commission shall amend its rules consistent with the provisions of this act.

part ix. effective date
SECTION 9.  Except as otherwise provided, this act is effective when it becomes law.