DRS35158-LK-117 (2/27)

GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2003

S D

SENATE DRS35158-LK-117 (2/27)

Short Title: Beer/Wine Shippers Permits.		(Public)
Sponsors:	Senator Metcalf.
Referred to:

A BILL TO BE ENTITLED

AN ACT to authorize the alcoholic beverage commission to issue beer and wine shippers permits to allow the direct shipment of malt beverages and wines to residents of north carolina.

The General Assembly of North Carolina enacts:

SECTION 1. G.S. 18B‑902(d) reads as rewritten:

"(d) Fees. – An application for an ABC permit shall be accompanied by payment of the following application fee:

(1) On‑premises malt beverage permit – $400.00.

(2) Off‑premises malt beverage permit – $400.00.

(3) On‑premises unfortified wine permit – $400.00.

(4) Off‑premises unfortified wine permit – $400.00.

(5) On‑premises fortified wine permit – $400.00.

(6) Off‑premises fortified wine permit – $400.00.

(7) Brown‑bagging permit – $400.00, unless the application is for a restaurant seating less than 50, in which case the fee shall be $200.00.

(8) Special occasion permit – $400.00.

(9) Limited special occasion permit – $50.00.

(10) Mixed beverages permit – $1,000.

(11) Culinary permit – $200.00.

(12) Unfortified winery permit – $300.00.

(13) Fortified winery permit – $300.00.

(14) Limited winery permit – $300.00.

(15) Brewery permit – $300.00.

(16) Distillery permit – $300.00.

(17) Fuel alcohol permit – $100.00.

(18) Wine importer permit – $300.00.

(19) Wine wholesaler permit – $300.00.

(20) Malt beverage importer permit – $300.00.

(21) Malt beverage wholesaler permit – $300.00.

(22) Bottler permit – $300.00.

(23) Salesman permit – $100.00.

(24) Vendor representative permit – $50.00.

(25) Nonresident malt beverage vendor permit – $100.00.

(26) Nonresident wine vendor permit – $100.00.

(27) Any special one‑time permit under G.S. 18B‑1002 – $50.00.

(28) Winery special event permit – $200.00.

(29) Mixed beverages catering permit – $200.00.

(30) Guest room cabinet permit – $1,000.

(31) Liquor importer/bottler permit – $500.00.

(32) Cider and vinegar manufacturer permit – $200.00.

(33) Brew on premises permit – $400.00.

(34) Wine producer permit – $300.00.

(35) Wine tasting permit – $100.00.

(36) Malt beverage shipper permit – $100.00.

(37) Wine shipper permit – $50.00."

SECTION 2. G.S. 18B‑1100 reads as rewritten:

"§ 18B‑1100. Commercial permits.

The Commission may issue the following commercial permits:

(1) Unfortified winery

(2) Fortified winery

(3) Limited winery

(4) Brewery

(5) Distillery

(6) Fuel alcohol

(7) Wine importer

(8) Wine wholesaler

(9) Malt beverages importer

(10) Malt beverages wholesaler

(11) Bottler

(12) Salesman

(13) Vendor representative

(14) Nonresident malt beverage vendor

(15) Nonresident wine vendor

(16) Winery special show

(17) Liquor importer/bottler permit

(18) Cider and vinegar manufacturer.

(19) Wine producer permit.

(20) Malt beverage shipper permit.

(21) Wine shipper permit."

SECTION 3. Chapter 18B of the General Statutes is amended by adding a new section to read:

"§ 18B-1114.3. Authorization of malt beverage shipper permit.

(a) Holders of malt beverage shipper permits may sell and ship not more than two cases of malt beverage per month to any person in North Carolina to whom alcoholic beverages may be lawfully sold. All sales and shipments shall be for personal consumption only and not for resale. A case of malt beverages shall mean any combination of packages containing not more than 288 ounces of malt beverage. Any brewery located within or outside the State may apply to the Commission for issuance of a malt beverage shipper permit that shall authorize the shipment of brands of malt beverages identified in the application. Any person located within or without the State who is authorized to sell malt beverages at retail in their state of domicile and who is not a brewery may nevertheless apply for a malt beverage shipper permit. Any brewery that applies for a malt beverage shipper permit or authorizes any other person, other than a retail off-premises permittee, to apply for a permit to ship the brewery's brands of malt beverage shall notify any wholesale permittees that have been authorized to distribute those brands within this State that an application has been filed for a malt beverage shipper permit. The notice shall be given in writing and in a form prescribed by the Commission. The Commission may adopt rules necessary to implement the provisions of this section, including rules to allow the malt beverage shipper permittee to amend the brands of malt beverages identified in the permit application.

(b) Any applicant for a malt beverage shipper permit that does not own or have the right to control the distribution of the brands of malt beverage identified in the permit application may be issued the permit if the applicant obtains the written consent of the brewery whose brands of malt beverage are contained in the application. Any retail off-premises malt beverage permittee who purchases malt beverages from anyone authorized to sell malt beverages in North Carolina shall be presumed to have the authorization of the winery or supplier to ship its brands. Any brewery that has supplied written authorization to a malt beverage shipper permittee to sell and ship its brands of malt beverage shall not be restricted by any provision of this section from withdrawing the authorization at any time. If the authorization is withdrawn, the brewery shall promptly notify the Commission of its decision to withdraw from the malt beverage shipper permittee the authority to sell and ship any of its brands, and the permittee shall promptly file with the Commission an amendment to its permit application eliminating the withdrawn brand or brands.

(c) The direct shipment of malt beverages by malt beverage shipper permittees made pursuant to this section shall be by approved common carrier only. The Commission shall adopt rules under which common carriers may apply for approval to provide common carriage of malt beverages shipped by holders of permits issued pursuant to this section. These rules shall include provisions that require:

(1) The recipient to demonstrate, upon delivery, that he is at least 21 years of age.

(2) The recipient to sign an electronic or paper form or other acknowledgment of receipt as approved by the Commission.

(3) The Commission-approved common carrier to submit any information that the Commission may require.

The Commission-approved common carrier shall refuse delivery when the proposed recipient appears to be under the age of 21 years and refuses to present valid identification. All malt beverage shipper permittees shipping malt beverages pursuant to this section shall affix a notice in 16-point type or larger to the outside of each package of malt beverage shipped within or to the State in a conspicuous location stating: 'CONTAINS ALCOHOLIC BEVERAGES; SIGNATURE OF PERSON AGED 21 YEARS OR OLDER REQUIRED FOR DELIVERY'. Any delivery of malt beverages to a minor by a common carrier shall constitute a violation by the common carrier. The common carrier and the malt beverage shipper permittee shall be liable only for their independent acts.

(d) For purposes of Chapter 105 of the General Statutes, each shipment of malt beverages by a malt beverage shipper permittee shall constitute a sale in North Carolina. The permittee shall collect the taxes due to the State and remit any excise taxes or any sales taxes to the Department of Revenue."

SECTION 4. Chapter 18B of the General Statutes is amended by adding a new section to read:

"§ 18B-1114.4. Authorization of wine shipper permit.

(a) Holders of wine shipper permits may sell and ship not more than two cases of wine per month to any person in North Carolina to whom alcoholic beverages may be lawfully sold. All sales and shipments shall be for personal consumption only and not for resale. A case of wine shall mean any combination of packages containing not more than nine liters of wine. Any winery located within or outside the State may apply to the Commission for issuance of a wine shipper permit that shall authorize the shipment of brands of wines identified in the application. Any person located within or without the State who is authorized to sell wines at retail in their state of domicile and who is not a winery may nevertheless apply for a wine shipper permit. Any winery that applies for a wine shipper permit or authorizes any other person, other than a retail off-premises permittee, to apply for a permit to ship the winery's brands of wine shall notify any wholesale permittees that have been authorized to distribute those brands within this State that an application has been filed for a wine shipper permit. The notice shall be given in writing and in a form prescribed by the Commission. The Commission may adopt rules necessary to implement the provisions of this section, including rules to allow the wine shipper permittee to amend the brands of wines identified in the permit application.

(b) The direct shipment of wine by wine shipper permittees made pursuant to this section shall be by approved common carrier only. The Commission shall adopt rules under which common carriers may apply for approval to provide common carriage of wines shipped by holders of permits issued pursuant to this section. These rules shall include provisions that require:

(1) The recipient to demonstrate, upon delivery, that he is at least 21 years of age.

(2) The recipient to sign an electronic or paper form or other acknowledgment of receipt as approved by the Commission.

(3) The Commission-approved common carrier to submit any information that the Commission may require.

The Commission-approved common carrier shall refuse delivery when the proposed recipient appears to be under the age of 21 years and refuses to present valid identification. All wine shipper permittees shipping wines pursuant to this section shall affix a notice in 16-point type or larger to the outside of each package of wine shipped within or to the State in a conspicuous location stating: 'CONTAINS ALCOHOLIC BEVERAGES; SIGNATURE OF PERSON AGED 21 YEARS OR OLDER REQUIRED FOR DELIVERY'. Any delivery of wines to a minor by a common carrier shall constitute a violation by the common carrier. The common carrier and the wine shipper permittee shall be liable only for their independent acts.

(c) For purposes of Chapter 105 of the General Statutes, each shipment of wines by a wine shipper permittee shall constitute a sale in North Carolina. The permittee shall collect the taxes due to the State and remit any excise taxes or any sales taxes to the Department of Revenue."

SECTION 5. G.S. 18B‑102.1(a) reads as rewritten:

"(a) It is unlawful for any person who is an out‑of‑state retail or wholesale ~~dealer in~~dealer in the business of selling alcoholic ~~beverages~~ beverages who does not hold a malt beverage shipper permit or a wine shipper permit to ship or cause to be shipped any alcoholic beverage directly to any North Carolina resident who does not hold a valid wholesaler's permit under Article 11 of this Chapter."

SECTION 6. G.S. 18B‑109(a) reads as rewritten:

"(a) General Prohibition. – No person shall have any alcoholic beverage mailed or shipped to him from outside this State unless he has the appropriate ABC ~~permit.~~permit or unless the shipper holds a malt beverage shipper permit or a wine shipper permit."

SECTION 7. This act is effective when it becomes law.