SB 938 — Privatize Spirituous Liquor.
Last action — Passed 1st Reading
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✓Introduced
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2In Committee
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3Passed Senate
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4Passed House
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5To Executive
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6Enacted
This bill is in committee in the Senate. Introduced April 29, 2026. It must pass committee before a floor vote.
Next likely step: a committee vote, then a floor vote in the Senate.
Prognosis
Where this bill stands today.
Odds of enactment
LowHow often bills like it became law.
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In Committee
Current position in the legislative process.
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1 sponsor
0 primary, 1 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (1 R).
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
Bill Text
What changed in the latest version
172 added · 173 removedPlain-language change summary
Senate Bill 938 has been amended to clarify the process for ABC boards to cease operations of state-run liquor stores by July 1, 2028, and to ensure the transfer of associated properties. The changes also streamline the process for cities to hold elections related to off-premises liquor sales. These adjustments are important as they aim to provide clearer guidelines for local governments, potentially improving the management and sale of liquor in communities.
FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA AprSESSION 29,2025 2026S S.B.1 SENATE BILL 938 Short Title:
938 SESSION 2025 PRINCIPAL CLERK S D SENATE BILL DRS45502-SAxf-19 Short Title:
Rules and Operations of the Senate April 30, 2026 A BILL TO BE ENTITLED AN ACT TO CEASE STATE AND LOCALLOCALOPERATION OPERATION OF SPIRITUOUS LIQUOR SALES AND TO TRANSITION TO PRIVATELY OWNED PACKAGE STORES.
SALE AND CESSATION OF STATE AND LOCAL OPERATION OF SPIRITUOUS LIQUOR SALES AND TRANSITION TO PRIVATELY OWNED PACKAGE STORES SECTION 1.(a) On or after July 1, 2028, but no later than July 1, 2029, the local ABC boards shall cease operations of any ABC stores and transfer all real property owned bybythe the board and any fixtures and inventory used in the operation of ABC stores by public sale to the highest qualified bidder or bidders.
(3) If a city or county has authorized the establishment and operation of an ABC storein accordance with Article6of Chapter 18B oftheGeneral StatutesStatutesprior prior to July 1, 2027, and that city or county votes against off-premises spirituous liquor sales before JulyJuly1, 1, 2028, the local ABC board applicable to that city or county shall do both of the following:
Nothing in this subsection shall be construed as relieving local ABC boards of, or assigning to the State, any liabilities arising or remaining from the transfers required under this *DRS45502-SAxf-19**S938-v-1* General Assembly Of North Carolina Session 2025 subsection.
SECTION 1.(b) No later than March 1, 2028, the ABC Commission shall develop a process to allowanyallowanyperson person that wishes to bid ononpropertyoffered propertyoffered forsalepursuant to subdivision (1) or (2) of subsection (a) of this section to apply for a qualification letter from the Commission.
AMEND ABC ELECTIONS TO ALLOW OFF-PREMISES SPIRITUOUS LIQUOR ELECTIONS AND PHASE OUT ABC STORE ELECTIONS Page 2 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 SECTION 2.(a) Article 6 of Chapter 18B of the General Statutes reads as rewritten:
… (d) CityCityABC ABCStore StoreOff-PremisesOff-Premises Spirituous Liquor Elections.
–A– citymayA holdcitymayhold an ABC store off-premises spirituous liquor election only if all of the following criteria are met:
Provided, that if a city that qualifies for an election under this subsection approves the sale of mixed beverages, a mixed beverages permitteein thesmaller citycitymaypurchaseliquor maypurchaseliquor from anABC storethat is designated as a mixed beverage ABC store operated by any local board a package store operating in the same county as the permittee.
18B-404(c), the sales of liquor shall be made bybyany any local board designated by the State ABC Commission.
DRS45502-SAxf-19Senate Bill 938-First Edition Page 3 General Assembly Of North Carolina Session 2025 (e3) Repealed by Session Laws 2024-41, s.
(2) The city may hold a mixed beverage election if the city has at least 500 registered voters and a countycountyin in which a portion of the citycityis is located operates ABCstores,allowstheoff-premisessaleofspirituousliquor,oramunicipality in either county in which the city is located operates an ABC store.allows the off-premises sale of spirituous liquor.
(i) one-third or more of the employment is travel related, (ii) spending on travel exceeds four hundred million dollars ($400,000,000) per year, and where the entirety of two townships consists of one island (and several smaller islands not making up Page 4 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 more than one percent (1%) of the total land area of the two townships) where that island:
For purposes of this subsection, the name and boundaryboundaryof of a township is as it is shown on the Redistricting Census 2000 TIGER Files with modifications made by the Legislative Services Office on its computer database as of May 1, 2001.
In order for an establishment to qualifyqualifyfor for a permit under this subsection, the establishment's gross receipts from food and nonalcoholic beverages shall be greater than its gross receipts from alcoholic beverages.
DRS45502-SAxf-19Senate Bill 938-First Edition Page 5 General Assembly Of North Carolina Session 2025 [ ] FOR [ ] AGAINST … "§ 18B-603.
(1a) The Commission maymayissue issue off-premises spirituous liquor permits to qualified persons and establishments in the jurisdiction.
(3) The Commission maymayissue issue brown-bagging permits to restaurants, hotels, and community theatres in the county in which the election was held, whether the election was held by the county or by a city or other jurisdiction within the county.
Page 6 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 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 G.S.
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 countycountyin in which permits were issued pursuant to this subsection prior to August 1, 1993.
– 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 or township at that or anyanyprevious previous or subsequent election, and regardless of anyanylocal local act making sales unlawful in that city or township, unless the local act was ratified before the effective date of Article II, Section 24(1)(j) of the Constitution of North Carolina.
– A city or township alcoholic beverage election shall not affect the lawfulness of sale in any part of the countycountyoutside outside that city or township.
Except for the authority to hold the election, however, the procedures of this Chapter shall apply to any subsequent election." SECTION 2.(b) Any city or county that has authorized the establishment and operation of an ABC store in accordance with Article 6 of Chapter 18B of the General Statutes priorto JulyJuly1, 1, 2027, shall bedeemedto have authorizedauthorizedtheoff-premises theoff-premises saleofspirituous liquor for purposes of Article 6 of Chapter 18B of the General Statutes, as amended by subsection (a) DRS45502-SAxf-19Senate Bill 938-First Edition Page 7 General Assembly Of North Carolina Session 2025 of this section, unless the city or county votes against authorizing off-premises spirituous liquor sales before July 1, 2028.
SECTION 2.(c) If anyanycityor citycountyholds or county holds an off-premises spirituous liquor election on or after July 1, 2027, but prior to July 1, 2028, and the off-premises sale of spirituous liquor is approved, no off-premises sale of spirituous liquor shall be allowed until July 1, 2028.
SECTIONSECTION2.(d) 2.(d)ThissectionbecomeseffectiveJuly1,2027,andapplies ThissectionbecomeseffectiveJulyto 1,elections 2027, and appliestoelections held on or after that date.
The general manager of a local board maymayreceive receiveanyother any other benefits to which all employees of the local board are entitled.
– Members of an immediate family shall not be employed within the local board if such employment will result in one member of the immediate family supervising another Page 8 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 member of the immediate family, or if one member of the immediate family will occupy a position which has influence over another member's employment, promotion, salary administration, or other related management or personnel considerations.
DRS45502-SAxf-19Senate Bill 938-First Edition Page 9 General Assembly Of North Carolina Session 2025 (8) Employ local ABC officers or make other provision for enforcement of ABC laws as provided in Article 5.
– A local board shall have the duty to comply with all rules adopted by the Commission pursuant to this Chapter and meet all standards for performance and training established bybytheCommission theCommission pursuant to G.S.
18B-203(a)(20)and18B-203(a)(20)and(21).Failureto (21).Failureto complywith Commission rules shall be cause for removal.Chapter.
Expenditures shall not exceed theamount of funds receivedorreceived or in reserve for thepurposeto which the funds are appropriated.
It is the intent of this section that all monies received and expended bybyalocal alocal boardshould beincluded in thebudget.
Therefore,notwithstandingTherefore,notwithstandinganyotherprovision any otherprovision of law, no local board may expend any monies, regardless of their source, except in accordance with a budget adopted under this section.
– Upon receipt of the budget requests and revenue estimates and the financial information supplied by the finance officer, the budget officer shall preparea budget forconsiderationbyforconsiderationbythelocal thelocal board in such form and detail as may have been prescribed by the budget officer or the local board.
The budget officer shall also publish a statement that the budget has been submitted to the local board and is available for Page 10 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 public inspection in the office of the general manager of the local board.
– Not earlier than 10 days after the day the budget is presented to the board and not later than July 1, the local board shall adopt a budget making appropriations for the budget year in such sums as the board maymayconsider consider sufficient and proper, whether greater or less than the sums recommended in the budget.
18B-805(b)(2),(3),(4),and (5).Any(5).Anyexpenditureto expenditureto becharged against working capital funds shall be authorized by resolution of the local board, which resolution shall be deemed an amendment to the budget setting up an appropriation for the object of expenditure authorized.
The local board may authorize the budget officer to authorize expenditures from working capital funds subject to such limitations and procedures as it maymayprescribe. prescribe.
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AnyAnysuch such expenditure shall be deemed an amendment and reported to the board at its next regular meeting and recorded in the minutes.
DRS45502-SAxf-19Senate Bill 938-First Edition Page 11 General Assembly Of North Carolina Session 2025 (i) Interim Budget.
– In case the adoption of the budget is delayed until after July 1, the local board shall make interim appropriations for the purpose of paying salaries, debt service payments, and the usual ordinary expenses of the local board for the interval between the beginningbeginningofthebudget ofthebudget year and the adoptionof thebudget.
– Except as otherwise provided, the local board shall designate (i) a part-timeorfull-timeemployeeoftheboardotherthanthegeneralmanageror(ii)theThefinancepart-timeorfull-timeemployeeoftheboardotherthanthegeneralmanageror(ii) theThefinance officer of the appointing authority with consent of the appointing authority to be shall be the finance officer for the local board.
The finance officer shall perform such other duties as maymaybe be assigned bybylaw, law,bythe by the general manager, budget officer, or local board, or by rules and regulations of the Commission.
– After making the distributions provided in subsection (k1) of this section, the local board shall paypaythe the remaining funds to the general fund of the citycityor or county for which the board is established, unless some other distribution or some other schedule is Page 12 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 provided for by law.
No obligation may be incurred for a capital project unless the budget authorizes the obligation and an unencumbered balance remains in the appropriation sufficient to pay the sums obligated bybythe the transaction.
If an obligation is evidenced bybya a contract or agreement requiring the payment of money or by a purchase order for supplies and materials, the contract, agreement, or purchase order shall include on its face a certificate stating that the instrument has been preaudited to assure compliance with this subsection.
_______________________ (Signature of finance officer)." An obligation incurred in violation of this subsection is invalid and maymaynot not be enforced.
– The local board may, as permitted by this subsection, approve a bill, invoice, or other claim against the local board that DRS45502-SAxf-19Senate Bill 938-First Edition Page 13 General Assembly Of North Carolina Session 2025 has been disapproved by the finance officer.
No certificate is required for expenditures of fiftyfiftydollars dollars ($50.00) or less from a petty cash fund, provided the expenditure is accounted for by a receipt for the expended item.
– A local board maymaydeposit deposit monies at interest in any bank or trust company in this State in the form of savings accounts or certificates of deposit.
– The Commission shall adopt, and each local board shall comply with, fiscal control rules concerning the borrowing of money, maintenance Page 14 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 of working capital, investments, appointment of a budget officer, appointment of a financial officer, daily deposit of funds, bonding of employees, auditing of operations, and the schedule, manner and other procedures for distribution of profits.
The Commission may vary these rules and regulations according to any other criteria reasonably related to the purpose or complexity of the financial operationsinvolved.The CommissionhastheauthoritytoinquireintoandinvestigatetheinternalCommissionhastheauthoritytoinquireinto andinvestigatetheinternal control procedures of a local board and may require any modifications in internal control procedures which, in the opinion of the Commission, are necessary or desirable to prevent embezzlements or mishandling of public monies.
(2) The citycityor orcountyis county is ceasing operation of all ABC stores has voted against the off-premises sale of spirituous liquor within the city or county.
DRS45502-SAxf-19Senate Bill 938-First Edition Page 15 General Assembly Of North Carolina Session 2025 (g) Operation Follows General Law.
– With the approval of the Commission, two or more governing bodies of counties and/or municipalities with ABC systems may enter into a written agreement whereby one or more ABC stores located within the counties and/or municipalities that are parties to the agreement shall be controlled and operated bybythe the local ABC board specified in the agreement, even though said ABC store or stores are located outside the boundaries of the county or municipality of the local ABC board that will be operating the ABC store or stores that are subject to the agreement.
The Commission shall ensure that all local boards complycomplywith with established performance standards by conducting regular or special audits, conducting performance evaluations, or taking other measures, which may include inspections by Commission auditors or alcohol law enforcement agents.
– The Commission, upon determining that a local boardis failingfailingto to meet performance standards establishedpursuantestablished pursuant to G.S.
(c) Remedies.–IftheCommissiondeterminesthattheestablishedperformancestandardsRemedies.– IftheCommissiondeterminesthattheestablishedperformancestandards identified in the statement of findings cannot be met after a performance improvement plan has been implemented and adequate time has been given, but in no case less than 12 months, the Commission shall take appropriate action to avoid insolvency.
133-32, and anyanyother other provision of law, members of a local board and general managers or store managers of ABC stores may consume samples Page 16 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 of spirituous liquor products under consideration for approval for sale by the local board, free of charge.
Before allowing the local board to sell spirituous liquor below the price paid by the local board, the Commission shall verifyverifythat that allowing the price reduction will not cause the local board to operate at an annual net loss or, if the local board was already operating at a loss, will not cause the local board to incur additional annual net revenue losses.
DRS45502-SAxf-19Senate Bill 938-First Edition Page 17 General Assembly Of North Carolina Session 2025 (d) Notwithstanding subsection (c) of this section, no local board may authorize a package store at any location within the corporate limits of a municipality if the governing body of the municipality has passed a resolution objecting to the location of the proposed package store and the resolution is based upon information and evidence presented to the governing body of the municipality at a public hearing.
Upon notice given to the Commission by an affected municipality, any statutory and administrative time limits allowed for objections to, or public hearings concerning the location of,apackagestoreshall beextendedby45days to allowamunicipalitysufficientallowamunicipalitysufficienttimeto timeto conduct a public hearing and submit its objection and resolution to the Commission." SECTION 3.(b) Notwithstanding the population requirements of G.S.
Page 18 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 (21a) Liquor wholesaler permit – $1,000.
The Commission shall not require any additional DRS45502-SAxf-19Senate Bill 938-First Edition Page 19 General Assembly Of North Carolina Session 2025 documentation besides the written or electronic notice to satisfy this requirement.
… Page 20 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 (4b) Package store.
– An establishment establishment, other than a package store, that is engaged in anyanyretail retail business, regardless of whether food is sold on the premises.
and 7:00 A.M., or to consume any of those alcoholic beverages DRS45502-SAxf-19Senate Bill 938-First Edition Page 21 General Assembly Of North Carolina Session 2025 between the hours of 2:30 A.M.
– A city may adopt an ordinance prohibiting in the city the retail sale of malt beverages, unfortified wine, and fortified wine wine, and spirituous liquor during any or all of the hours from 12:00 Noon on SundaySundayuntil until 7:00 A.M.
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 distillerydistillerypermit permitmaynot 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.
(4) Sell spirituous liquor distilled or produced at the distillerydistilleryin in closed containers to visitors who tour the distillery for consumption off the premises.
Sales under this subdivision are allowed only in a county where the Page 22 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 establishment of a county or municipal ABC store off-premises sale of spirituous liquor has been approved pursuant to G.S.
The authorization of this subdivision applies to a distillery that sells, to consumers at the distillery, to wholesalers, to package stores, and to exporters, fewer than 100,000 proof gallons of spirituous liquor produced bybyit it per year.
(1) The number of proof gallons of spirituous liquor sold bybythe the permit holder that were produced by the permit holder.
(1) Receive Import spirituous liquor in closed containers into foreign trade zones at the State Port facilities in Morehead City and Wilmington from ships DRS45502-SAxf-19Senate Bill 938-First Edition Page 23 General Assembly Of North Carolina Session 2025 docked at the State Port facilities for the purpose of bottling, packaging, or labeling.from outside the United States in closed containers.
(4) In locations where the sale is legal, furnish spirituous liquor of anyanybrand brand filed pursuant to G.S.
– The holder of a salesman permit may (i) sell and transport malt beverages for a malt beverage wholesaler or wholesaler, (ii) sell and transport unfortified and Page 24 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 fortified wine for a wine wholesaler.wholesaler, or (iii) sell and transport spirituous liquor for a liquor wholesaler.
(a1) Theholderofa nonresident spirituous liquorvendorpermit maysell,maysell,deliver, deliver, andship spirituous liquor that has been approved for sale in this State to wholesalers, importers, and bottlers licensed under this Chapter, as authorized by the ABC laws.
(c) For purposes of this section, "distillery" means the holder of a distillerydistillerypermit permit issued under G.S.
DRS45502-SAxf-19Senate Bill 938-First Edition Page 25 General Assembly Of North Carolina Session 2025 (1) The sale of mixed beverages in conjunction with a consumer tasting is not authorized at package stores, shopping malls, street festivals, holiday festivals, or balloon races.
(2) The mixed beverages shall contain onlyonlyspirituous spirituous liquor distilled or produced at the distillery.
(4) The permit holder or the permit holder's authorized agent may onlyonlysell sell mixed beverages containingcontainingproducts products from one distillerydistilleryper per booth, kiosk, or display.
(5) The mixed beverage shall be prepared only by either (i) the permit holder or the permit holder's authorized agent conductingconductingthe the consumer tastingtastingor or (ii) an employee of the permit holder or the permit holder's authorized agent conducting the consumer tasting who is at least 21 years of age.
(8) Thepermitholderorthepermitholder'sauthorizedagentshallnotsellorserve mixed beverages to anyconsumerunder21yearsofage.Thepersonpreparinganyconsumerunder21 yearsofage.Thepersonpreparing the mixed beverage shall be responsible for verifying the age of the consumer being served by checking the identification of the consumer.
(1) The spirituous liquor used in the consumer tasting event shall be purchased by the permit holder from anyanyABC ABC store at the price set bybythe the Commission.
(4) Notwithstanding subdivision (3) of subsection (b) of this section, the total amount of the tasting samples offered to and consumed by each consumer at Page 26 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 a consumer tasting event shall not exceed one-half ounce of spirituous liquor in any calendar day.
(8) TheCommission shall adopt rules to ensurethatlocal ABC boardsthatchooseboardsthat choose to allow tastings provide holders of distillery permits issued under G.S.
(d) For purposes of this section, "distillery" means the holder of a distillerydistillerypermit permit issued under G.S.
(1) Deposit with the Commission a suretysuretybond bond for one thousand dollars ($1,000) conditioned that the carrier will not unlawfullyunlawfullytransport transport spirituous liquor into DRS45502-SAxf-19Senate Bill 938-First Edition Page 27 General Assembly Of North Carolina Session 2025 or through this State.
The agreement may be of a definite or indefinite duration and is not Page 28 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 required to be in writing.
The shipment, preparation for shipment, or acceptance of anyanyorder order by any distillery or its agent for any spirituous liquor or beverages to a liquor wholesaler within this State.
The payment bybya a liquor wholesaler and the acceptance of payment by any distillery or its agent for the shipment of any order of spirituous liquor intended for sale within this State.
(4) Territoryorsalesterritory.–TheareaofprimarysalesresponsibilityexpresslyTerritoryorsalesterritory. or implicitly designated by any agreement between any liquor wholesaler and distillery for a brand offered by any distillery.
–Theareaofprimarysalesresponsibilityexpressly or implicitly designated by any agreement between any liquor wholesaler and distillery for a brand offered by any distillery.
(4) Unlawfully discriminate on the basis of race, color, creed, sex, religion, or national origin in awardingormaintainingawardingormaintainingagreements agreementscovered coveredbythisbythis Article.
(a) Each agreement shall designate the sales territoryterritoryof of the wholesaler.
No distillerydistillerymay may enter into more than one agreement for each brand of spirituous liquor or beverage it offers in any territory.
A wholesaler shall not distribute any brand of spirituous liquor to a package store whose premises are located outside the territoryterritorydesignated designated in the wholesaler's agreement for that brand.
Unless the distillery and liquor wholesaler agree otherwise in writing, the territory designated as the wholesaler's "area of primary sales responsibility" as of the effective date of this section shall be DRS45502-SAxf-19Senate Bill 938-First Edition Page 29 General Assembly Of North Carolina Session 2025 the wholesaler's designated sales territory.
Renderservices comparablein quality,quality,quantity,or quantity, or volumeto thesales volumes maintained and services rendered by other wholesalers of the same brands within the State.
(a) Except as provided in subsection (f) of this section, a distillery shall provide a wholesaler with at least 90 days' prior written notice of anyanyintention intention to amend, terminate, cancel, or not renew any agreement.
(c) When thereasons relatetoconditions thatcannot berectifiedbythewholesalerwithin the 60-day period, the wholesaler may request a hearing before the Commission to determine if the distillery has good cause for the amendment, termination, cancellation, or nonrenewal of the Page 30 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 agreement.
(b) Notwithstanding subsection (a) of this section, no distillery may withhold consent to, or in any manner retain a right of prior approval of, the transfer of the wholesaler's business to a member or members of the familyfamilyof of the wholesaler.
DRS45502-SAxf-19Senate Bill 938-First Edition Page 31 General Assembly Of North Carolina Session 2025 (4) Impose a monetary penalty up to fifteen thousand dollars ($15,000) for a first offenseanduptothirty-fivethousanddollars($35,000)forthesecondoffense.
(d) Notwithstanding the choice of forum agreed to by the parties, venue for all actions under this Article shall be determined bybythe the trial judge based upon the convenience of witnesses and the promotion of the ends of justice.
Thepurchaser of adistillery,anda distillery,and anysuccessorto theimportrights ofa distillery,isdistillery, is obligated to all of the terms and conditions of an agreement in effect on the date of the purchase or other acquisition of the right to distribute a brand, except for good cause, which includes any of the following:
Page 32 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 (1) To restrict the sale of any equity or indebtedness or the transfer of any securities of any wholesaler or in any way prevent or attempt to prevent the transfer, sale, or issuance of shares of stock or indebtedness to employees, personnel of the wholesaler, or heirs of the principal owner, as long as basic financialrequirementsofthedistilleryarecompliedwithandthesale,transfer, or issuance does not have the effect of accomplishing a sale of the wholesaler.
Is locatedin acountyacountythat that bordersanotherstate,that has at least one city that has approved the operation of an ABC store, in which the off-premises sale of spirituous liquor is lawful, and in which the sale of unfortified wine and malt beverages is permitted countywide or in one city;
Borders on a countycountywhere where ABC stores have heretofore been established by petition pursuant to law;
and … DRS45502-SAxf-19Senate Bill 938-First Edition Page 33 General Assembly Of North Carolina Session 2025 c.
Permits issued bybythe the tribal commission pursuant to this section shall be deemed issued by the State for the purposes of sales and delivery of beer and wine beer, wine, and spirituous liquor by wholesalers to the retail outlets located on Indian Country lands.
Page 34 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 (18) Provide for the distribution and posting of warning signs to local ABC boards and spirituous liquor permittees regardingregardingthe the dangers of alcohol consumption during pregnancy as required under G.S.
…." DRS45502-SAxf-19Senate Bill 938-First Edition Page 35 General Assembly Of North Carolina Session 2025 SECTION 12.
– A mixed beverage permittee maymaypurchase purchase spirituous liquor from an ABC store that is designated as a mixed beverage ABC store operated by any local board board, or a package store, operating in the same county as the permittee.
If spoilage or loss of value is likely, the judge 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 or spirituous liquor permits in the county in which the wine or spirituous liquor was seized, or in a neighboring countycountyif if there are no such persons in the county in which the wine or spirituous liquor was seized.
Spirituous liquor may be sold only to the local ABC board serving the citycityor or county in which the liquor was seized, or, if there is no local board for that citycityor or county, to the nearest local board.
(a) Each ABC store or package store shall displaydisplayor or cause to be displayed warning signs that meet the requirements of this section on the store's premises to inform the public of the effects of alcohol consumption during pregnancy.
Page 36 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 "Article 10.
DRS45502-SAxf-19Senate Bill 938-First Edition Page 37 General Assembly Of North Carolina Session 2025 … "§ 18B-101.
… (7a) "General manager" means the local board employee who is responsible for the oversight of dailydailyoperations operations of the ABC system and anyanyother other duties assigned by the local board or Commission.
Is locatedin acountyacountythat that bordersanotherstate,that has at least one city that has approved the operation of an ABC store, in which the off-premises sale of spirituous liquor is lawful, and in which the sale of unfortified wine and malt beverages is permitted countywide or in one city;
Borders on a countycountywhere where ABC stores have heretofore been established by petition pursuant to law;
… Page 38 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 "§ 18B-110.
Permits issued bybythe the tribal commission pursuant to this section shall be deemed issued by the State for the purposes of sales and delivery of beer and wine beer, wine, and spirituous liquor by wholesalers to the retail outlets located on Indian Country lands.
– The North Carolina Alcoholic Beverage Control Commission shall have the authority to enter into agreements with the tribal alcoholic beverage control commission to provide for the sale, delivery,anddelivery, and distributionofspirituous liquorto thetribal alcoholicbeveragecontrol commission.
To the extent there is a conflict between the tribal alcoholic beverage control commission's authority or purpose and the North Carolina Alcoholic Beverage Control Commission's authorityauthorityor or purpose, the North Carolina Alcoholic Beverage Control Commission shall prevail.
DRS45502-SAxf-19Senate Bill 938-First Edition Page 39 General Assembly Of North Carolina Session 2025 An aggrieved party has a claim for relief for damages against a permittee or local Alcoholic Beverage Control Board if:
(9) Supervise or disapprove purchasing by anyanylocal local board and inspect all records of purchases by local boards;
and (iii) to the Catawba Indian Nation for resale on Indian Page 40 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 Country lands within the State under the jurisdiction of the Catawba Indian Nation.
18B-808;subsection(c)18B-808;subsection (c) of this section.
The Commission shall choose locations for the warehouses to promote efficient distribution of spirituous liquor to all local boards, to DRS45502-SAxf-19Senate Bill 938-First Edition Page 41 General Assembly Of North Carolina Session 2025 maintain control of that liquor, and to insure the Commission's supervision of warehousing procedures.
The Commission shall adopt rules regarding the ordering of spirituous liquor bybylocal local boards and maymaysuspend suspend distribution to a local board of any limited product required to be recorded pursuant to subsection (a3) of this section for a violation of any rule concerning the ordering of the limited product.
– The Commission shall maintain a record of all products that the Commission either (i) limits distribution of due to limited availabilityavailabilityor or (ii) allocates the distribution of to local boards.
– The Commission may require local boards to use generally accepted accounting standards and a chart of accounts prescribed by the Commission in the Page 42 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 operation of ABC stores, and to record all information necessary and useful to the Commission in auditing the operation of ABC systems and administering the ABC law.
… DRS45502-SAxf-19Senate Bill 938-First Edition Page 43 General Assembly Of North Carolina Session 2025 "§ 18B-305.
If spoilage or loss of value is likely, the judge 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 or spirituous liquor permits in the county in which the wine or spirituous liquor was seized, or in a neighboring countycountyif if there are no such persons in the county in which the wine or spirituous liquor was seized.
Spirituous liquor may be sold only to the local ABC board serving the citycityor or county in which the liquor was seized, or, if there is no local board for that citycityor or county, to the nearest local board.
––A Ajudgeorderingforfeitureof judgeordering forfeitureof property mayorder any one of the following dispositions:
Page 44 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 (1) Sale at public auction;
the agency that seized the property, the ALE Branch, the Commission, the local board of the jurisdiction in which the propertypropertywas was seized, and the Department of Justice;
The permittee shall purchase spirituous liquor from an ABC store that is designated as a mixed beverage ABC store operated by any local board a package storeoperatingin thesamecountythesamecountywherethe wherethe permittee's principal office is located.
DRS45502-SAxf-19Senate Bill 938-First Edition Page 45 General Assembly Of North Carolina Session 2025 (13) Guest Room Cabinet Permit.
(1a) An area that is located in a countycountythat that has not approved the issuance of mixed beverages permits;
and contains a facilityfacilityof of at least 90 acres where five or more motorsports-related events are held each year.
The Commission shall issue a permit under the authority set forth in this subdivision only to a facility where five or more motorsports-related events are held, or a qualified business contractingcontractingwith with orlocatedat afacilitywherefiveormoremotorsports-related events are held, and the sale and consumption of alcoholic beverages shall only occur during a motorsports-related event held at the facility.
18B-1001(10), without approval at an election, to qualified establishments defined in Page 46 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 G.S.
and to sell its malt beverages by theglass orin closedcontainersatclosedcontainers at shoppingmalls andat tradeshows,conventions,tradeshows, conventions, malt beverage festivals, street festivals, holiday festivals, agricultural festivals, farmers markets, balloon races, local fund-raisers, and other similar events approved by the Commission.
Except for a brewery DRS45502-SAxf-19Senate Bill 938-First Edition Page 47 General Assembly Of North Carolina Session 2025 operating under the provisions of G.S.
105-113.71(c), a person holding any of the following retail ABC permits for an establishment locatedin a citycityshall shall obtainfrom thecitythe acitylicenseforthatcityacitylicenseforthat activity.
TheannualThe annual tax for each license is as stated.
ABC Permit Tax for Corresponding License On-premises malt beverage..................................................................................................$15.00 Off-premises malt beverage.....................................................................................................5.00 Page 48 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 On-premises unfortified wine, on-premises fortified wine, or both......................................................................................15.00 Off-premises unfortified wine, off-premises fortified wine, or both.....................................................................................10.00 Off-premises spirituous liquor...............................................................................................15.00 … "§ 105-113.78.
A city may require city malt beverage and wine beverage, wine, and liquor wholesaler licenses for businesses located inside the city, but maymaynot not require a license for a business located outside the city, regardless whether that business sells or delivers malt beverages or wine beverages, wine, or spirituous liquor inside the city.
– Wholesalers and importers of malt beverages and wine beverages, wine, and spirituous liquor are not required to remit excise taxes on malt beverages and wine beverages, wine, and spirituous liquor sold and delivered for use on DRS45502-SAxf-19Senate Bill 938-First Edition Page 49 General Assembly Of North Carolina Session 2025 oceangoing vessels.
An oceangoingoceangoingvessel vessel is a ship that plies the high seas in interstate or foreign commerce, in the transport of freight or passengers, or both, for hire exclusively.
… Page 50 DRS45502-SAxf-19Senate Bill 938-First Edition General Assembly Of North Carolina Session 2025 (g) UseofFunds.
– FundsdistributedtoacountyorcityunderthissectionFundsdistributedtoacountyorcityunderthissectionfortaxeslevied fortaxeslevied on malt beverages, unfortified wine, and fortified wine may be used for any public purpose.
(2) Eight million five hundred thousand dollars ($8,500,000) to the Alcoholic Beverage Control Commission to be used for the operatingoperatingand and administrative costs of the Commission.
A report is due annuallyannuallyor or monthly, as specified in this section, and must be filed regardless of whether alcoholic beverages were sold or otherwise disposed of in this State.
105-113.80(c) is payable monthlymonthlybythe by the local ABC board by a resident wholesaler or importer who first handles the liquor in this State and bybya a distillery.
distillerydistilleryif if the liquor is sold to the consumer at the distillery.
The Secretary may request the alcohol vendor to provide on a return, a report, or otherwise, for a permittee to which the alcohol vendor provides alcohol, a permittee's name,licensenumber, and business address andanyotherinformation pertainingpertainingto to thepermittee in possession of the alcohol vendor that the Secretary deems necessary to determine the permittee's compliance with this Chapter.
DRS45502-SAxf-19Senate Bill 938-First Edition Page 51 General Assembly Of North Carolina Session 2025 (3) A wholesaler, as defined in G.S.
The Secretary may request the alcohol vendor to provide on a return, a report, or otherwise, for a permittee to which the alcohol vendor provides alcohol, a permittee's name,licensenumber, and business address andanyotherinformation pertainingpertainingto to thepermittee in possession of the alcohol vendor that the Secretary deems necessary to determine the permittee's compliance with this Chapter.
EFFECTIVE DATE SECTIONSECTION30. 30.
Except asotherwiseprovided,this act becomeseffectiveJulybecomeseffectiveJuly1,2027. 1,2027.
Page 52 DRS45502-SAxf-19Senate Bill 938-First Edition
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Action History
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Passed 1st Reading
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Ref To Com On Rules and Operations of the Senate
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Filed
Sponsors
- Jim Burgin · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →0 sponsors · 1 co-sponsors · 178 not signed on
Sponsors (0)
None.
Co-sponsors (1)
- Jim Burgin Republican
Not signed on (178)
178 members have not signed on to this bill.
Show all 178 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
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- SB 938 is sponsored by Jim Burgin (Republican).
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- This bill is in committee in the Senate. Introduced April 29, 2026. It must pass committee before a floor vote.
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