HB 921 — ABC and Gaming Omnibus Bill.

18B-800(c2) reads as rewritten:

"(c2) Orders of Eligible Distillery Products by Mixed Beverages Permittees.

– A local board shall fulfill an order by a mixed beverages permittee for individual bottles or cases of spirituous liquor produced by an eligible a distillery that are listed as a regular code item for sale in the State.

If a local board cannot fulfill an order of a mixed beverages permittee for individual bottles or cases of spirituous liquor produced by an eligible a distillery that are listed as a regular code item for sale in the State because the product ordered is not in the local board's stock inventory or the order cannot otherwise be fulfilled within the time period requested by the permittee, the either of the following shall occur:

(1) The permittee may request to have an eligible distillery that produces the ordered product ship the product directly to the local board.

The local board shall notify the Commission within 48 hours of the request for the order and request authorization for direct shipment.

The Commission shall then determine if the eligible distillery desires to directly ship the ordered product directly to the local board, and if so so, the Commission shall authorize the eligible distillery to ship the spirituous liquor ordered to the local board for the fulfillment of the mixed beverages permittee's order.

Merchandise authorized to be shipped by direct shipment under this subsection subdivision shall be consigned by the State ABC warehouse to the distiller's account in care of the local board.

The local board shall acknowledge receipt of the merchandise on the shipping documents and forward them to the State ABC warehouse for processing through the accounting system as though the merchandise were shipped from the State ABC warehouse.

As used in this subsection, subdivision, an "eligible distillery" is a distillery (i) that sells, to consumers at the distillery, to exporters, to local boards, and to private or public agencies or establishments of other states or nations, fewer than 10,000 proof gallons of in-house brand spirituous liquors distilled or produced and manufactured by it at the permit holder's distillery per year, and (ii) that is either the holder of a distillery permit pursuant to G.S.

18B-1105 or is a business located outside the State that is licensed or permitted to manufacture spirituous liquor in the jurisdiction where the business is located and whose products are lawfully sold in this State.

(2) If the permittee does not request direct shipment pursuant to subdivision (1) of this subsection, the local board shall provide a waiver to be obtained by the permittee in person at the ABC store with the portion of the permittee's order that the local board was able to fulfill, if any.

The waiver shall authorize the permittee to purchase the product from any other ABC store in the State that is designated as a mixed beverage ABC store pursuant to G.S.

18B-404(c).

The Commission shall create a standard waiver form to include the name of the permittee and the permittee's establishment, the permit number of the permitted establishment, the name and code item of the ordered product, the date on which the local board was unable to fulfill the order, and the signature of a representative of the local board that could not fulfill the order or the manager of the ABC store that provided the waiver form.

The waiver shall be valid for 90 calendar days from the date of issuance.

The permittee may purchase the ordered product as provided on the waiver at any other ABC store in the State that is designated as a mixed beverage ABC store pursuant to G.S.

18B-404(c) upon presentation and relinquishment of the waiver at the ABC store." SECTION 4.(b) G.S.

18B-404(c) reads as rewritten:

House Bill 921-Second Edition Page 3 General Assembly Of North Carolina Session 2025 "(c) Designated Store.

– A Except as provided in G.S.

18B-800(c2)(2), a mixed beverage permittee may purchase spirituous liquor from 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." SECTION4.(c) ThissectionbecomeseffectiveAugust1,2026,andapplies toorders placed by a mixed beverage permittee on or after that date.

7 ALLOW CONSUMER TASTINGS OF MIXED BEVERAGES AT ABC STORES UNDER A SPIRITUOUS LIQUOR SPECIAL EVENT PERMIT SECTION 5.

18B-1114.7(c)18B-1116(a)(4) readsis asrepealed. rewritten:

"(c)ALLOW AdditionalMIXED LimitationsBEVERAGE onPERMITTEES TastingsTO inPURCHASE SPIRITUOUS LIQUOR FROM ANY DESIGNATED ABC Stores.STORE IN THE STATE SECTION 4.(a) G.S.

– Consumer tastings conducted in an ABC store shall have the following additional limitations:

… (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 a consumer tasting event shall not exceed one-half ounce of spirituous liquor in any calendar day.day, including any spirituous liquor in mixed beverages offered for consumer tasting pursuant to subdivision (4a) of this subsection.

(4a) The permit holder conducting the event may prepare and offer for tasting mixed beverages containing the spirituous liquor offered for tasting at the ABC store.

A mixed beverage offered for tasting pursuant to this subdivision shall contain no more than 0.25 ounces of spirituous liquor.

…." INCLUDE WHIPPED CREAM IN THE DEFINITION OF ALCOHOL CONSUMABLE SECTION 6.(a) G.S.

18B-101(4a) reads as rewritten:

"(4a) "Alcohol consumable" means any manufactured and packaged ice cream, whipped cream, ice pop, gum-based, or gelatin-based food product containing at least one-half of one percent (0.5%) alcohol by volume." SECTION 6.(b) This section becomes effective December 1, 2026, and applies to offenses committed on or after that date.

PROVIDE MIXED BEVERAGES PERMITTEES WITH PRIOR NOTICE OF APPORTIONED PRODUCT LOTTERY SECTION 7.(a) G.S.

18B-800 is amended by adding a new subsection to read:

"(c6) Prior Notice of Lottery.

– At least 30 days prior to the date it plans to conduct a lottery or other random drawing to sell apportioned products to mixed beverage permittee customers of an ABC store, the local board conducting the lottery or other random drawing shall provide each mixed beverage permittee with written notice of the lottery or other random drawing by email or first-class mail.

For purposes of this subsection, the term "apportioned products" means containers of spirituous liquor that are made available to local boards only by random drawings conducted by the Commission." SECTION 7.(b) This section becomes effective July1, 2026, and applies to lotteries or other random drawings to sell apportioned products on or after that date.

AUTHORIZE TEMPORARY AND VARIABLE PRICING PROMOTIONS SECTION 8.(a) Article 10 of Chapter 18B of the General Statutes is amended by adding a new section to read:

"§ 18B-1004.1.

Variable pricing.

Notwithstanding any provision of this Chapter to the contrary, an establishment holding an on-premises malt beverage permit, on-premises unfortified wine permit, on-premises fortified wine permit, mixed beverages permit, or any combination thereof may offer temporary pricing Page 4 House Bill 921-Second Edition General Assembly Of North Carolina Session 2025 adjustments on alcoholic beverages sold by the establishment subject to all of the following conditions:

(1) The price adjustment shall be applicable for a specified and limited duration of time within a single business day.

(2) All pricing adjustments shall be publicly posted within the licensed premises and shall be made available to the Commission or a law enforcement officer with jurisdiction upon request.

(3) Pricing adjustments shall comply with all applicable State and federal laws, rules, and regulations concerning the responsible service of alcohol.

(4) Advertising of the price and type of alcoholic beverages is allowed through either or both of the following:

a.

On outside signage located on the permittee's premises, subject to any applicable local ordinances regulating outdoor signage.

b.

Via newspapers, radio, television, and other mass media." SECTION 8.(b) This section becomes effective October 1, 2026, and applies to alcoholic beverages sold on or after that date.

CLARIFY PERMISSION TO TAKE MIXED BEVERAGES ONTO PERMITTED PREMISES IN A SOCIAL DISTRICT SECTION 9.

G.S.

18B-300.1(f) reads as rewritten:

"(f) Limitations on Open Containers.

– Except where otherwise allowed by local ordinance, the possession and consumption of an open container of an alcoholic beverage in a social district is subject to all of the following requirements:

… (6) Notwithstanding G.S.

18B-300 and G.S.

18B-301, a permittee or non-permittee business may allow a customer to possess and consume on the business's premises alcoholic beverages purchased from a permittee in the social district.

A permittee business that is not permitted to sell mixed beverages may allow a customer to possess and consume on the business's premises mixed beverages purchased from a mixed beverages permittee in the social district." CLARIFY WHEN SPECIAL ONE-TIME PERMITS ARE REQUIRED FOR NONPROFIT ORGANIZATIONS SECTION 10.

G.S.

18B-1002(a) reads as rewritten:

"(a) Kinds of Permits.

– In addition to the other permits authorized by this Chapter, the Commission may issue permits for the following activities:

… (2) A permit may be issued to a nonprofit organization to allow the retail sale of malt beverages, unfortified wine, fortified wine, or mixed beverages, or to allow brown-bagging, at a single fund-raising event of that organization.

A permit for this purpose shall not be issued for the sale of anykind of alcoholic beverage in a jurisdiction where the sale of that alcoholic beverage is not lawful.

A permit is not required under this subdivision for an event conducted by a nonprofit organization that meets any of the following:

a.

The event is held on premises permitted under G.S.

18B-1001(1), 18B-1001(2),18B-1001(3),18B-1001(4), 18B-1001(5),18B-1001(6), or 18B-1001(10) and the wine, malt beverages, and spirituous liquor sold at the event are sold by the retail permittee from the retail permittee's inventory.

House Bill 921-Second Edition Page 5 General Assembly Of North Carolina Session 2025 b.

The event is held on a premises that does not hold a permit under this Chapter and the wine, malt beverages, and spirituous liquor sold or served at the event is provided by one of the following in a manner allowed under that permit:

1.

A mobile bar services permittee pursuant to G.S.

18B-1001(12a).

2.

A mixed beverage catering permittee pursuant to G.S.

18B-1001(12).

3.

A malt beverage special event permittee pursuant to G.S.

18B-1114.5.

4.

Awineryspecialevent permittee pursuant to G.S.

18B-1114.1.

5.

A spirituous liquor special event permittee pursuant to G.S.

18B-1114.7.

… (5) A permit may be issued to a unit of local government, or to a nonprofit organization or a political organization to serve wine, malt beverages, and spirituous liquor at a ticketed event held to allow the unit of local government or organization to raise funds.

A permit is not required under this subdivision for a ticketed event conducted by a unit of local government, a nonprofit organization, or a political organization that meets any of the following:

a.

The event is held on premises permitted under G.S.

18B-1001(1), 18B-1001(2),18B-1001(3),18B-1001(4), 18B-1001(5),18B-1001(6), or 18B-1001(10) and the wine, malt beverages, and spirituous liquor sold at the event are sold by the retail permittee from the retail permittee's inventory.

b.

The event is held on a premises that does not hold a permit under this Chapter and the wine, malt beverages, and spirituous liquor sold or served at the event is provided by one of the following in a manner allowed under that permit:

1.

A mobile bar services permittee pursuant to G.S.

18B-1001(12a).

2.

A mixed beverage catering permittee pursuant to G.S.

18B-1001(12).

3.

A malt beverage special event permittee pursuant to G.S.

18B-1114.5.

4.

Awineryspecialevent permittee pursuant to G.S.

18B-1114.1.

5.

A spirituous liquor special event permittee pursuant to G.S.

18B-1114.7.

For purposes of this subdivision "nonprofit organization" means an organization that is exempt from taxation under Section 501(c)(3), 501(c)(4), 501(c)(6), 501(c)(8), 501(c)(10), 501(c)(19), or 501(d) of the Internal Revenue Code or is exempt under similar provisions of the General Statutes as a bona fide nonprofit charitable, civic, religious, fraternal, patriotic, or veterans' organization or as a nonprofit volunteer fire department, or as a nonprofit volunteer rescue squad or a bona fide homeowners' or property owners' association.

For purposes of this subdivision "political organization" means an organization covered by the provisions of G.S.

163-96(a)(1) or (2) or a campaign organization established by or for a person who is a candidate who has filed a notice of candidacy, paid the filing fees or filed the required petition, and been certified as a candidate.

The issuance of this permit shall also allow the use for culinary purposes of spirituous liquor lawfully Page 6 House Bill 921-Second Edition General Assembly Of North Carolina Session 2025 purchased for use in mixed beverages.

The issuance of this permit shall also allow a nonprofit organization to offer alcoholic beverages in the manufacturer's original closed container as a prize in a raffle or sell alcoholic beverages in the manufacturer's original closed container at auction at the ticketed event to allow the nonprofit organization to raise funds.

…." 8 REVISE REQUIREMENTS FOR RECEIVING A TEMPORARY PERMIT SECTION 11.(a) G.S.

18B-905 reads as rewritten:

"§ 18B-905.

Temporary permits.

When an application has been received in proper form, with the required application fee, the Commission may issue a temporary permit for any of the activities for which permits are authorized under G.S.

18B-1001 and 18B-1100.

If the person has applied to the applicable local government for the Inspection/Zoning Compliance and Local Government Opinion forms required for the application but has not received approvals or denials from the local government, theapplicant maysubmit asworn affidavit with the applicationstatingthat thepersonhas applied to the local government for the Inspection/Zoning Compliance and Local Government Opinion approvals in lieu of those approvals.

The person shall send the local government approvals or denials to the Commission within three business days of receiving the approvals or denials.

A temporary permit may be revoked summarily by the Commission without complying with the provisions ofChapter 150B.

Revocationof a temporarypermit or withdrawal bythe Commission of a pending application by a permittee possessing a temporary permit shall be effective upon service of the notice of revocation or withdrawal upon the permittee at either the permittee's residence or the address given for the business in the permit application or upon the expiration of five business days after the notice of the revocation or withdrawal has been mailed to the permittee at either the permittee's residence or the address given for the business in the permit application.

No further notice shall be required." SECTION 11.(b) This section becomes effective October 1, 2026, and applies to applications received on or after that date.

REVISE LAW REGULATING THE SALE AND DELIVERY OF MORE THAN ONE DRINK AT A TIME TO A SINGLE PATRON SECTION 12.(a) G.S.

18B-1010(a) reads as rewritten:

"(a) Except as otherwise provided in this section, the The holder of an on-premises malt beverage permit, on-premises unfortified wine permit, on-premises fortified wine permit, or mixed beverages permit issued under G.S.

18B-1001 permit, or a permittee otherwise authorized to sell malt beverages, unfortified wine, fortified wine, or mixed beverages for on-premises consumption, may sell and deliver not more than two alcoholic beverage drinks at one time to a single patron with the following limitations:patron.

(1) Not more than two alcoholic beverage drinks at one time if the alcoholic beverage drinks are any of the following:

a.

A malt beverage.

b.

Unfortified wine.

c.

Fortified wine.

(2) Not more than one alcoholic beverage at one time if an alcoholic beverage drink is a mixed beverage or contains spirituous liquor." SECTION 12.(b) G.S.

18B-1001(10) reads as rewritten:

"(10) Mixed Beverages Permit.

– A mixed beverages permit authorizes the retail sale of mixed beverages for consumption on the premises.

The permit also authorizes a mixed beverages permittee to obtain an antique spirituous liquor permit under subdivision (20) of this section and to use for culinary purposes House Bill 921-Second Edition Page 7 General Assembly Of North Carolina Session 2025 spirituous liquor lawfully purchased for use in mixed beverages.

The permit may be issued for any of the following:

a.

Restaurants.

b.

Hotels.

c.

Private clubs.

d.

Convention centers.

e.

Community theatres.

f.

Nonprofit organizations.

g.

Political organizations.

h.

Sports and entertainment venues.

i.

Bars.

j.

The holder of a distillery permit authorized under G.S.

18B-1105.

k.

Breweries.

l.

Wineries.

Additionally, a mixed beverages permit authorizes a permittee that is a restaurant, hotel, private club, bar, brewery, winery, or the holder of a distillery permit to sell at retail mixed beverages for consumption off the premises, including delivery by the permittee or a delivery service permittee.

A mixed beverage sold for consumption off the premises must be sold with food and shall be (i) a premixed cocktail in the manufacturer's original closed container, or (ii) packaged in a container with a secure lid or cap, and in a manner designed to prevent consumption without removal of the lid or cap.

The container shall be no greater than 24 fluid ounces.

In accordance with G.S.

20-138.7, the transportation of a mixed beverage in a motor vehicle shall not be unlawful if the container is an unopened manufacturer's original container or is transported in a locked container, in the trunk, or in the area behind the last upright seat in a motor vehicle not equipped with a trunk.

Notwithstanding G.S.

18B-1010, the sale of more than one mixed beverage drink two mixedbeveragedrinks at onetimeshallnot beunlawfulifthemixed beverage drinks are sold for delivery or consumption off the permittee's premises.

No mixed beverage ordered for off-premises consumption shall be provided to anyperson other than the purchaser of the mixed beverage, except that in the case of delivery, the delivery service permittee through its employees or agents may provide the mixed beverage to a person other than the purchaser if the permittee or the permittee's employees or agents verify thatthepersonisover21yearsofageusingageverificationsoftwarerequiring the recipient to provide a form of photographic identification authorized in G.S.

18B-302(d)(1)." SECTION 12.(c) This section becomes effective October 1, 2026, and applies to alcoholic beverages sold on or after that date.

REVISE LAW GOVERNING POSSESSION AND CONSUMPTION OF FORTIFIED WINE AND SPIRITUOUS LIQUOR WITHOUT AN ABC PERMIT SECTION 13.(a) G.S.

18B-301 reads as rewritten:

"§ 18B-301.

Possession and consumption of fortified wine and spirituous liquor.

(a) Possession at Home.

– It shall be lawful, without an ABC permit, for any person at least 21 years old to possess for lawful purposes any amount of fortified wine and spirituous liquor at his the person's home or a temporary residence, such as a hotel room.

(b) Possession on Other Property.

– It shall be lawful, without an ABC permit, for a person to possess for his or her personal use and the use of his or her guests not more than eight Page 8 House Bill 921-Second Edition General Assembly Of North Carolina Session 2025 liters of fortified wine or spirituous liquor, or eight liters of the two combined, at the following places:

(1) The residence of any other person with that person's consent;consent.

(2) Anyother property not primarilyused for commercial purposes and that is not a permitted premises and is not open to the public at the time the alcoholic beverage is possessed, if the owner or other person in charge of the property consents to that possession and consumption;consumption.

(3) An establishment with a brown-bagging permit as defined in G.S.

18B-1001(7).

(b1) Possession in a Social District or Common Area.

– It shall be lawful, without an ABC permit, for a person to possess an open container of fortified wine or spirituous liquor in a social district or a designated consumption area under a common area entertainment permit in compliance with the provisions of G.S.

18B-300.1 or G.S.

18B-1001.5, respectively.

(c) Special Occasions.

– It shall be lawful for a person to possess, without a permit and notforsale,anyamountoffortifiedwineorspirituousliquorforaprivateparty,privatereception, or private special occasion, at any of the following places:

(1) His The person's home or a temporary residence, such as a hotel room;room.

(2) Any other property not primarily used for commercial purposes, which is underhistheperson's exclusivecontrolandsupervision,andwhichisnotopen to the public during the event;event.

(3) The licensed premises of any business for which the Commission has issued a special occasions permit under G.S.

18B-1001(8), if he the person is the host of that private function and has the permission of the permittee.

(d) Consumption.

– It shall be lawful for a person to consume fortified wine and spirituous liquor in any place where it is lawful for him the person to possess those alcoholic beverages under subsections (a) through (c).

…." SECTION 13.(b) This section becomes effective October 1, 2026, and applies to fortified wine and spirituous liquor possessed and consumed on or after that date.

ADD TWO MEMBERS TO THE ABC COMMISSION SECTION 14.(a) G.S.

18B-200 reads as rewritten:

"§ 18B-200.

North Carolina Alcoholic Beverage Control Commission.

(a) Creation of Commission;

compensation.

– The North Carolina Alcoholic Beverage Control Commission is created to consist of a chairman chair and two four associate members.

The Commission shall be administratively located within the Department of Public Safety but shall exercise its powers independently of the Secretary of Public Safety.

The chairman shall devote his full time to his official duties and receive a salary fixed by the General Assembly in the Current Operations Appropriations Act.

The chair of the Commission shall be employed full-time and shall receive a salary fixed by the General Assembly.

The associate members shall be compensated for per diem, subsistence and travel as provided in Chapter 138 of the General Statutes.

(b) Appointment of Members.

– Members The members of the Commission shall be appointed as follows:

(1) The chair of the Commission Commission, who shall be appointed by the Governor to serve at the pleasure of the Governor.

(2) Two associate members, who shall be appointed by the Governor to serve at his pleasure.the pleasure of the Governor.

(3) One associate member, who shall be a current or former holder of a retail or commercial ABC permit, who shall be appointed by the President Pro Tempore of the Senate to serve at the pleasure of the President Pro Tempore.

House Bill 921-Second Edition Page 9 General Assembly Of North Carolina Session 2025 (4) One associate member, who shall be a current or former holder of a retail or commercial ABC permit, who shall be appointed by the Speaker of the House of Representatives to serve at the pleasure of the Speaker.

(c) Vacancy.

– The Governor appointing authority shall fill any vacancy on the Commission by appointing a successor to serve at the Governor's pleasure.

the pleasure of the appointing authority.

If the chairman's chair's seat becomes vacant, the Governor may designate either the new member or an existing member of the Commission as the chairman.chair.

(d) Employees.

– The Commission may authorize the chairman chair to employ, discharge, and otherwise supervise subordinate personnel of the Commission.

The Commission shall appoint at least one employee to make investigations, hold hearings requested under G.S.

18B-1205, and represent the Commission in contested case hearings or perform any other duties authorized by Chapter 150B." SECTION 14.(b) G.S.

18B-201(a) reads as rewritten:

"(a) Financial Interests Restricted.

– No person shall be appointed to or employed by the Commission, a local board, board or the ALE Division if that person or a member of that person's family related to that person by blood or marriage to the first degree has or controls, directly or indirectly, a financial interest in any commercial alcoholic beverage enterprise, including any business required to have an ABC permit.

The Commission may exempt from this provision any person, other than a Commission member, person when the financial interest in question is so insignificant or remote that it is unlikely to affect the person's official actions in any way.

Exemptions may be granted only to individuals, not to groups or classes of people, and each exemption shall be in writing, be available for public inspection, and contain a statement of the financial interest in question." SECTION 14.(c) This section becomes effective December 1, 2026.

THREE-YEAR STATUTE OF LIMITATIONS FOR ABC VIOLATIONS SECTION 15.(a) G.S.

18B-104 reads as rewritten:

"§ 18B-104.

Administrative penalties.

(a) Penalties.

– For Unless otherwise provided bylaw, for anyviolation of the ABC laws, the Commission may take any of the following actions against a permittee:

(1) Suspend the permittee's permit for a specified period of time not longer than three years.

(2) Revoke the permittee's permit.

(3) For all violations not listed in subdivision (3a) of this subsection, fine the permittee up to five hundred dollars ($500.00) for the first violation, up to seven hundred fifty dollars ($750.00) for the second violation within three years, and up to one thousand dollars ($1,000) for the third violation within three years of the first violation.

(3a) If theviolations involveacts ofviolence,controlledsubstances, or prostitution occurring on the licensed premises, fine the permittee up to seven hundred fifty dollars ($750.00) for the first violation, up to one thousand dollars ($1,000) for a second violation within three years, and up to one thousand two hundred fifty dollars ($1,250) for a third violation within three years of the first violation.

Additionally, the Commission may impose conditions on the operating hours of the business for violations listed in this subdivision.

(4) Suspend the permittee's permit under subdivision (1) of this subsection and impose a fine under subdivision (3) or (3a).(3a) of this subsection.

… (f) Statute of Limitations.

– The Commission shall not seek any administrative penalties under this section unless the Commission, within three years of the Commission receiving from law enforcement a permittee's alleged violation of the ABC laws, sends the permittee a notice of Page 10 House Bill 921-Second Edition General Assembly Of North Carolina Session 2025 alleged violation or files a petition for a contested case against the permittee in accordance with G.S.

18B-906.

Any contested case commenced or maintained by the Commission in violation of this subsection shall be dismissed.

This subsection does not prohibit the Commission from refiling a contested case that was dismissed without prejudice in accordance with G.S.

1A-1, Rule 41(a) of the Rules of Civil Procedure, provided that the Commission refiles the contested case within three years of the Commission receiving from law enforcement the permittee's alleged violation of the ABC laws or within one year of the dismissal without prejudice, whichever is later.

This subsection does not apply to orders of suspension or revocation pursuant to G.S.

18B-900(f), 18B-904(e)(2), or 18B-904(e)(4)." SECTION 15.(b) G.S.

18B-1001.4(f) reads as rewritten:

"(f) Penalties for Violations in Residence Halls.

– Notwithstanding G.S.

18B-104, if If a deliveryservice permittee commits a violation of this Chapter when deliveringto a residence hall located on the premises of an institution of higher education the delivery service permittee shall be subject to a fine of up to one thousand dollars ($1,000) for the first violation, up to one thousand five hundred dollars ($1,500) for a second violation within three years of the first violation, and up to two thousand dollars ($2,000) for a third or subsequent violation within three years of the first violation.

In any case in which there are two or more violations within three years by a delivery service permittee when delivering to a residence hall on the premises of an institution ofhigher education in whichthe Commission is entitledto suspendorrevoke apermit, the Commission may accept from the permittee an offer in compromise to pay a penalty of not more than ten thousand dollars ($10,000).

The Commission may either accept a compromise or revoke apermit, but not both.

TheCommission mayaccept a compromiseand suspendthepermit in the same case." SECTION 15.(c) This section is effective when it becomes law and applies to contested cases commenced or maintained on or after that date.

TAX RELIEF FOR SMALL BREWERIES AND MICRODISTILLERIES SECTION 16.(a) G.S.

105-113.68 reads as rewritten:

"§ 105-113.68.

Definitions;

scope.

(a) Definitions.

– The following definitions apply in this Article:

… (4b) Barrel.

– Defined in G.S.

81A-9.

(4c) Bonded premises.

– Defined in 26 U.S.C.

§ 5002.

(4d) Controlled group.

– Any group of incorporated or nonincorporated businesses that have common ownership interests, including individuals, partnerships, and corporations.

A business is considered to be part of a controlled group if more than fifty percent (50%) of the business is owned either by, or in common with, another business or other businesses.

(4e) Distillery permittee.

– A distillery that holds a distillery permit issued by the ABC Commission under G.S.

18B-1105.

… (7a) Microdistillery.

– A distillery that withdraws no more than 50,000 proof gallons of spirituous liquor annually from bonded premises.

If a distillery is part of a controlled group, the controlled group must withdraw no more than 50,000 proof gallons of spirituous liquor annually from bonded premises.

… (8a) Proof gallon.

– A liquid gallon of distilled spirits that is fifty percent (50%) alcohol at 60 degrees Fahrenheit.

… (10a) Small brewery.

– A brewery that produces no more than 600,000 barrels of malt beverages annually.

If a brewery is part of a controlled group, the House Bill 921-Second Edition Page 11 General Assembly Of North Carolina Session 2025 controlled group must produce no more than 600,000 barrels of malt beverages annually.

…." SECTION 16.(b) Part 5 of Article 2C of Chapter 105 of the General Statutes is amended by adding a new section to read:

"§ 105-113.85A.

Credit allowed.

(a) Credit.

– When filing a return, a taxpayer is allowed a credit as provided for in this section against the tax imposed by this Article.

A credit authorized under this section must be subtracted from the tax due prior to calculating any discount under G.S.

105-113.85.

A credit is authorized for the following:

(1) Alocal ABC Board ordistilleryin anamount equal to thetax duein theperiod covered by the return that is attributable to the sale of spirituous liquor produced by a registered microdistillery.

(2) A wholesaler or importer in an amount equal to the tax due in the period coveredbythereturnthatisattributableto thesaleofmaltbeveragesproduced by a registered small brewery.

(b) Registration.

– The credit authorized under this section is available on products attributable to a microdistillery or a small brewery that are sold during a month in which the microdistillery or small brewery is registered under this section.

The Secretary shall prescribe the manner in which a person may register as a microdistillery or small brewery.

Registration must be accompanied by a written certificate signed under penalty of perjury that the person qualifies as a microdistillery or small brewery, as applicable.

The Secretary may request any information necessary to verify that the person qualifies or continues to qualify for registration under this subsection.

The Secretary shall keep a record of all persons registered under this subsection sorted by designation.

The list shall state the name and business address of each person registered.

The Secretary shall make available the list required under this subsection on the Department's website.

A person registered under this subsection that no longer qualifies as a microdistillery or small brewery shall promptly notify the Secretary.

A person must be removed from the list if the Secretary determines that the person no longer qualifies as a microdistillery or small brewery or if the person fails to respond to the Secretary's request for information verifying the person's continued eligibility for registration under this subsection.

(c) Forfeiture.

– A taxpayer may rely on the list published by the Department under subsection (b) of this section when taking the credit authorized under this section;

however, the taxpayer forfeits the credit taken under this section on product produced by a person registered under subsection (b) of this section for any month in which the Department determines the credit was not allowed as provided for under this subsection.

If the Department determines that a taxpayer avoided tax by taking a credit in violation of this subsection, the taxpayer is liable for all past taxes avoided as a result of any forfeited credits plus interest at the rate established under G.S.

105-241.21, computed from the date the taxes would have been due if the forfeited credits had not been taken.

The Secretary shall also charge the taxpayer with a penalty equal to twenty-five percent (25%) of the amount of taxes avoided.

The past taxes, penalty, and interest are due 30 days after the date the credits are forfeited;

a taxpayer that fails to pay the past taxes, penalty, and interest bythe due date is subject to the penalties provided in G.S.

105-236.

A credit is not allowed on spirituous liquor, antique spirituous liquor, or malt beverages which are:

(1) Sold by the distillery or brewery that produced the product in any month in which the distillery or brewery was registered but did not qualify as a microdistillery or small brewery, as applicable.

(2) Sold bya person other than the distilleryor brewerythat produced the product inanymonthinwhichthepersonknewthedistilleryorbrewerywas registered but did not qualify as a microdistillery or small brewery, as applicable." Page 12 House Bill 921-Second Edition General Assembly Of North Carolina Session 2025 SECTION 16.(c) This section becomes effective January 1, 2027, and applies to malt beverages and spirituous liquor first sold or otherwise disposed of on or after that date;

however, the Secretary of Revenue may begin registering persons as a microdistillery or small brewery under G.S.

105-113.85A(b), as enacted by this section, on September 1, 2026.

6 ESTABLISH SERVICE BUSINESS PERMIT SECTION 17.(a) G.S.

18B-300(a1) reads as rewritten:

"(a1) ConsumptiononPremisesDuringTimeofPermit RevocationorSuspension.

–Itshall be unlawful to consume or for a permittee or his a permittee's agent or employee to allow the consumption of malt beverages or unfortified wine on the premises of any business during the period of time that any on-premises permit or service business permit issued to the business authorizing the sale and or consumption of malt beverages or unfortified wine has been suspended or revoked by the Commission.

The prohibition in this subsection does not apply to the premises upon which the business was located at the time the permit was suspended or revoked if the business ceases to operate in that location and the owner of the property is not the permittee, provided that the permittee is not engaged in any other business or other activity on the premises during the period of suspension or revocation." SECTION 17.(b) G.S.

18B-603 is amended by adding a new subsection to read:

"(i) Service Business Permits.

–TheCommission mayonlyissueservicebusiness permits provided for in G.S.

18B-1001(26) to qualified persons and establishments located within a jurisdiction in which on-premises malt beverage permits or on-premises unfortified wine permits may be issued, subject to the following restrictions:

(1) If on-premises malt beverage permits, but not on-premises unfortified wine permits, may be issued in the jurisdiction, the service business permittee may furnish only malt beverages to customers.

(2) If on-premises unfortified wine permits, but not on-premises malt beverage permits, may be issued in the jurisdiction, the service business permittee may furnish only unfortified wine to customers.

(3) If on-premises malt beverage permits and on-premises unfortified wine permits may be issued in the jurisdiction, the service business permittee may furnish malt beverages and unfortified wine to customers." SECTION 17.(c) G.S.

18B-902 reads as rewritten:

"§ 18B-902.

Application for permit;

fees.

… (d) Fees.

– An application for an ABC permit shall be accompanied by payment of the following application fee:

… (57) Service business permit – $50.00.

… (h) Recycling Plan Required.

– Each applicant for an on-premises malt beverage permit, on-premises unfortified wine permit, service business permit, on-premises fortified wine permit, oramixedbeveragespermitshallprepareandsubmitwiththeapplicationaplanforthecollection and recycling of all recyclable beverage containers of all beverages to be furnished or sold at retail on the premises.

Each applicant for a mobile bar services permit shall prepare and submit with the application a plan for the collection and recycling of all recyclable beverage containers of all beverages to be served at an event pursuant to the permit.

A permittee who is not able to find a recycler for its beverage containers may apply to the Alcoholic Beverage Control Commission for a one-year stay of the requirement to implement a recycling program in compliance with G.S.

18B-1006.1.

The application shall be made in a form specified by the Commission, shall detail the efforts made by the permittee to provide for the collection and recycling of beverage containers, and shall specify the impediments to implementation of a House Bill 921-Second Edition Page 13 General Assembly Of North Carolina Session 2025 recycling plan.

The Commission shall submit all such applications to the Division of Environmental Assistance and Outreach of the Department of Environmental Quality for review and certification.

The Division of Environmental Assistance and Outreach shall investigate each application and prepare a summary of its investigation and shall submit the summary to the Commission along with a notation indicating certification or denial of the application.

A permittee whose application for a stay is certified by the Division of Environmental Assistance and Outreach shall not be required to comply with the recycling requirement of the alcoholic beverage laws and regulations during the one-year stay period so certified." SECTION 17.(d) G.S.

18B-903 reads as rewritten:

"§ 18B-903.

Duration of permit;

renewal and transfer.

(a) Duration.

– Once issued, ABC permits shall be valid for the following periods, unless earlier surrendered, suspended or revoked:

(1) On-premises and off-premises malt beverage, unfortified wine, and fortified winepermits;

servicebusinesspermits;

culinarypermits;

and all permits listed in G.S.

18B-1100 shall remain valid indefinitely.

… (b1) Registration.

– Each person holding a malt beverage, fortified wine, or unfortified wine permit unfortified wine, or service business permit issued pursuant to G.S.

18B-902(d)(1) through G.S.

18B-902(d)(6) or G.S.

18B-902(d)(57) shall register by May 1 of each year on a form provided by the Commission, in order to provide information needed by the State in enforcing this Chapter and to support the costs of that enforcement.

The For permits issued pursuant to G.S.

18B-902(d)(1) through G.S.

18B-902(d)(6), the registration required by this subsection shall be accompanied by an annual registration and inspection fee of four hundred dollars ($400.00) for each permit held.

For permits issued pursuant to G.S.

18B-902(d)(57), the registration required by this subsection shall be accompanied by an annual registration and inspection fee of fifty dollars ($50.00) for each permit held.

The fee shall be paid by May 1 of each year.

A registration fee shall not be refundable.

Failure to pay the annual registration and inspection fee shall result in revocation of the permit.

(b2) Recycling Plan Required.

– Each person holding an on-premises malt beverage permit, on-premises unfortified wine permit, service business permit, on-premises fortified wine permit, or a mixed beverages permit shall submit, along with the annual registration or renewal application, either a current plan for the collection and recycling of all recyclable beverage containers of all beverages furnished or sold at retail on the premises, or an application for a waiver pursuant to G.S.

18B-902(h).

Each person holding a mobile bar services permit shall submit, along with the annual renewal application, either a current plan for the collection and recycling of all recyclable beverage containers of all beverages to be served at an event pursuant to the permit, or an application for a waiver pursuant to G.S.

18B-902(h).

…." SECTION 17.(e) G.S.

18B-1000 reads as rewritten:

"§ 18B-1000.

Definitions concerning establishments.

The following requirements and definitions shall apply to this Chapter:

… (7a) Service business.

– An establishment that is primarily engaged in the business of providing services to the general public that require an occupational license issued by the State.

(7a)(7b) Sports and entertainment venue.

– Stadiums, ballparks, and other similar facilities with a permanently constructed seating capacity of 3,000 or more which are not located on the campus of a school, college, or university.

…." SECTION 17.(f) G.S.

18B-1001 is amended by adding a new subdivision to read:

Page 14 House Bill 921-Second Edition General Assembly Of North Carolina Session 2025 "(26) Service Business Permit.

– A service business permit authorizes the permittee to furnish complimentary malt beverages and unfortified wine to customers, in conjunction with the provision of the service, for consumption on the permittee's premises at no extra charge to the customers.

The permittee may furnish alcoholic beverages to customers only in accordance with G.S.

18B-603(i).

The permittee may not serve more than two servings of alcoholic beverages to any individual customer in any calendar day.

For purposes of this subdivision, a serving of malt beverage is 16 fluid ounces, and a serving of unfortified wine is 8 fluid ounces.

Notwithstanding G.S.

18B-1006(h), the permittee maypurchase malt beverages and unfortified wine only from a retailer.

The permit may be issued to service businesses." SECTION 17.(g) G.S.

18B-1006.1(a) reads as rewritten:

"(a) Holders of on-premises malt beverage permits, on-premises unfortified wine permits, service business permits, on-premises fortified wine permits, and mixed beverages permits shall separate, store, and provide for the collection for recycling of all recyclable beverage containers of all beverages furnished or sold at retail on the premises.

A permittee has satisfied the requirements of this section if it implements a recycling program that meets the minimum standards of the model recycling program developed by the Commission pursuant to G.S.

130A-309.14(m).

Failure to comply with the requirements of this section shall not be grounds for revocation of a permit.

A conviction for violation of this section shall not constitute an alcoholic beverage offense within the meaning of G.S.

18B-900(a)(4)." SECTION 17.(h) This section becomes effective July 1, 2026.

COUNTY MIXED BEVERAGE ELECTION AMENDMENT SECTION 18.(a) G.S.

18B-600(b) reads as rewritten:

"(b) County Elections.

– Any county may hold a malt beverage, unfortified wine, or ABC store election.

A county may hold a mixed beverage election only if (i) the county already operates at least one county ABC store or a city located in the county operates at least one ABC store or (ii) a county election on ABC stores is to be held at the same time as the mixed beverage election.

If a county does not operate at least one ABC store, a mixed beverages permittee may purchase liquor from 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." SECTION 18.(b) This section is retroactively effective October 1, 2024.

BROWN-BAGGING TECHNICAL CORRECTION SECTION 19.

G.S.

18B-603(d) reads as rewritten:

"(d) Mixed Beverage Elections.

– If a mixed beverage election is held under G.S.

18B-602(h)andthesaleofmixedbeveragesisapproved,theCommissionmayissuepermits to qualified persons and establishments in the jurisdiction that held the election as follows:

… (4) The Commission may issue brown-bagging permits for bars, private clubs clubs, and congressionallychartered veterans organizations but maynolonger issue and may not renew brown-bagging permits for restaurants, hotels, and community theatres.

A restaurant, hotel, or community theatre may not be issued a mixed beverage permit under subdivision (1) until it surrenders its brown-bagging permit.

…." AIRPORT TECHNICAL CORRECTION SECTION 20.

G.S.

18B-300.3 reads as rewritten:

House Bill 921-Second Edition Page 15 General Assembly Of North Carolina Session 2025 "§ 18B-300.3.

Possession and consumption of alcoholic beverages in the security-screened area of airports.

(a) During the hours of airport operation, any establishment permitted under subdivision (1), (3), (5), or (10) of G.S.

18B-1000 G.S.

18B-1001 and operating in the Transportation Security Administration-screened portion of an airport may, with the written approval of the airport authority, sell the alcoholic beverages it is permitted to sell for consumption throughout the Transportation Security Administration-screened portion of the establishment's respective airport terminal.

(b) An alcoholic beverage served for consumption throughout an establishment's airport terminal shall be served in a container that meets all of the following requirements:

(1) The container is not comprised of glass.

(2) The container displays, in no less than 12-point font, the statement, "Drink Responsibly – Be 21." (3) The container shall not hold more than 16 fluid ounces.

(c) A customer may purchase and consume alcoholic beverages throughout the interior oftheTransportation SecurityAdministration-screenedportion oftherespectiveairport terminal, provided that the purchase is from an approved establishment permitted under subdivision (1), (3), (5), or (10) of G.S.

18B-1000.G.S.

18B-1001.

(d) This section applies only to airports that service airplanes boarding at least 150,000 passengers annually." ALLOW ALCOHOL SALES AT MILLENNIAL CAMPUSES AT UNIVERSITY OF NORTH CAROLINA INSTITUTIONS AND AT THE HORACE WILLIAMS CAMPUS OF THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL SECTION 21.

G.S.

18B-1006(a) reads as rewritten:

"(a) School and College Campuses.

– No permit for the sale of alcoholic beverages shall be issued to a business on the campus or property of a public school, college, or university.

This subsection shall not apply to the following:

… (5) Restaurants, eatingestablishments, foodbusinesses,orretail businessesonthe property defined by G.S.

116-198.33(4).subdivision (4), (4a), or (4b) of G.S.

116-198.33.

…." ALLOW THE SALE OF PREMIXED COCKTAILS FOR ON-PREMISES AND OFF-PREMISES CONSUMPTION AND ALLOW WHOLESALERS TO DISTRIBUTE PREMIXED COCKTAILS SECTION 22.(a) G.S.

18B-100 reads as rewritten:

"§ 18B-100.

Purpose of Chapter.

This Chapter is intended to establish a uniform system of control over the sale, purchase, transportation, manufacture, consumption, and possession of alcoholic beverages in North Carolina, and to provide procedures to insure ensure the proper administration of the ABC laws under a uniform system throughout the State.

This Chapter shall be liberally construed to the end that the sale, purchase, transportation, manufacture, consumption, and possession of alcoholic beverages shall be prohibited except as authorized in this Chapter.

If any provision of this Chapter, or its application to any person or circumstance, is determined by a court or other authority of competent jurisdiction to be invalid or unconstitutional, such provision shall be stricken and the remaining provisions shall be construed in accordance with the intent of the General Assemblyto further limit rather than expand commerce in alcoholic beverages, and with respect to malt beverages, unfortified wine, premixed cocktails, and fortified wine, the remaining provisions shall be construed to enhance strict regulatory control over taxation, distribution, and Page 16 House Bill 921-Second Edition General Assembly Of North Carolina Session 2025 sale of alcoholic beverages through the three-tier regulatory system and the franchise laws imposed by this Chapter.

Except as provided in this Chapter, local ordinances establishing different rules on the manufacture, sale, purchase, transportation, possession, consumption, or other use of alcoholic beverages, or requiring additional permits or fees, are prohibited." SECTION 22.(b) G.S.

18B-101 reads as rewritten:

"§ 18B-101.

Definitions.

As used in this Chapter, unless the context requires otherwise:

… (4) "Alcoholic beverage" means any beverage containing at least one-half of one percent (0.5%)alcoholbyvolume,includingmaltbeverages,unfortifiedwine, premixed cocktails, fortified wine, spirituous liquor, mixed beverages, and any alcohol consumable.

… (5c) "Bailment surcharge" means the charge imposed on each case of liquor or premixed cocktails shipped from a Commission warehouse as provided in G.S.

18B-208.

This bailment surcharge is in addition to the bailment charge imposed by G.S.

18B-804(b)(2).G.S.

18B-804(b)(2) and G.S.

18B-804(e)(2).

(5d) "Brokerage" means a business that brokers the sale of spirituous liquor or premixed cocktails on behalf of the holder of a distillery permit issued under G.S.

18B-1105, a business located outside the State that is licensed or permitted to manufacture spirituous liquor or premixed cocktails in the jurisdictionwherethebusinessislocatedandwhoseproductsarelawfullysold in this State, or a liquor importer or bottler.

… (10) "Mixed beverage" means either of the following:a drink composed in whole or in part of spirituous liquor and served in a quantity less than the quantity contained in a closed package.