HB 692 — Restaurants and Bars/Buy from Distiller.

Bill Text

Compared against the N.C. General Statutes as published AI-generated reading aid — verify against the official bill.

The bill allows restaurants and bars with mixed beverages permits to purchase spirituous liquor directly from distilleries for resale.

• N.C.G.S. § 18B-1105(a)(2)

  the holder of a distillery permit may not sell, deliver, or ship spirituous liquor at retail to consumers in jurisdictions that require reciprocity in order to allow such sales, deliveries, or shipments. → restaurants and bars holding a mixed beverages permit issued under G.S. 18B-1001, and, (ii) (iii) subject to the laws of other jurisdictions, at wholesale or retail to consumers in other states or nations, or private or public agencies or establishments of other states or nations, except that the holder of a distillery permit may not sell, deliver, or ship spirituous liquor at retail to consumers in jurisdictions that require reciprocity in order to allow such sales, deliveries, or shipments.

  This change permits distilleries to sell spirituous liquor directly to mixed beverages permit holders, expanding their customer base.

• N.C.G.S. § 18B-804(b1)

  However, For sales pursuant to G.S. 18B-1105(a)(4), the holder of the distillery permit shall not be required to remit the components ofthepriceset forth bysubdivisions (2),(3),(5),(6),(6a),(6b), and(7) ofsubsection (b) of this section. → However, for sales to restaurants and bars pursuant to G.S. 18B-1105(a)(2), the holder of the distillery permit shall not be required to remit the components of the price set forth by subdivisions (2), (3), (5), (6), (6a), (6b), and (7) of subsection (b) of this section and the holder of the distillery permit shall remit the component set forth in subdivision (8) of subsection (b) of this section in accordance with G.S. 18B-1105(e).

  This adjustment clarifies the pricing obligations for distilleries selling to restaurants and bars, indicating they must remit a specific surcharge.

• N.C.G.S. § 18B-1007(a)

  A mixed beverages permittee may purchase spirituous liquor for resale as mixed beverages and a guest room cabinet permittee may purchase spirituous liquor for resale from a guest room cabinet only at an ABC store that is designated as a mixed beverage ABC store operated by any local board operating in the same county as the permittee. → A restaurant or bar holding a mixed beverages permit may purchase spirituous liquor for resale as mixed beverages at an ABC store designated by a local board, at a distillery pursuant to G.S. 18B-1105(a)(2), or at an ABC store designated by a local board and at a distillery pursuant to G.S. 18B-1105(a)(2).

  This change allows restaurants and bars to purchase spirituous liquor from distilleries, not just ABC stores.

• N.C.G.S. § 18B-1105

  (e) Distribution of Mixed Beverages Surcharge. – Each month, in addition to any other applicable fees or taxes, a distillery permit holder shall make the following payments for spirituous liquor sold directly to a restaurant or bar under subdivision (2) of subsection (a) of this section: (1) To the Department of Revenue, one-half of the mixed beverages surcharge required by G.S. 18B-804(b)(8). (2) To the Department of Health and Human Services, five percent (5%) of the mixed beverages surcharge required by G.S. 18B-804(b)(8). The Department shall spend the funds described in this subdivision in accordance with the purposes set forth in G.S. 18B-805(b)(3). The remaining portion of the mixed beverages surcharge required by G.S. 18B-804(b)(8) shall be retained by the distillery permit holder.

  This addition establishes a requirement for distillery permit holders to pay a mixed beverages surcharge when selling directly to restaurants or bars.

Action History

1. April 19, 2023

   Passed 1st Reading

2. April 19, 2023

   Ref to the Com on Alcoholic Beverage Control, if favorable, Rules, Calendar, and Operations of the House

3. April 18, 2023

   Filed

Sponsors

• Ray Pickett · Primary
• Saine · Cosponsor
• Autry · Cosponsor
• Amber M. Baker · Cosponsor
• Mary Belk · Cosponsor
• Terry M. Brown Jr. · Cosponsor
• Deb Butler · Cosponsor
• Becky Carney · Cosponsor
• Allen Chesser · Cosponsor
• Carla D. Cunningham · Cosponsor
• Pricey Harrison · Cosponsor
• Zack Hawkins · Cosponsor
• Chris Humphrey · Cosponsor
• Ya Liu · Cosponsor
• Tim Longest · Cosponsor
• Jeffrey C. McNeely · Cosponsor
• Marcia Morey · Cosponsor
• David Willis · Cosponsor
• Wray · Cosponsor
• Jeff Zenger · Cosponsor
• Jake Johnson · Cosponsor
• Neal Jackson · Cosponsor

Subjects