GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2007

S                                                                                                                                                     1

SENATE BILL 1478

Short Title:     Manufacturer Coupons/Purchasing ABC Products.		(Public)
Sponsors:	Senator Jones.
Referred to:	Commerce, Small Business and Entrepreneurship.

March 26, 2007

A BILL TO BE ENTITLED

AN ACT to limit manufacturer, bottler, and wholesaler rebates and coupons.

The General Assembly of North Carolina enacts:

SECTION 1.  Article 10 of Chapter 18B of the General Statutes is amended by adding a new section to read:

"§ 18B‑1010.  Manufacturer, bottler, and wholesaler rebates and coupons prohibited; restricted use of discounts in advertising.

(a) It shall be unlawful for any manufacturer, bottler, or wholesaler of any alcoholic beverages to advertise by means of a coupon or rebate offering a discount off the purchase of a malt beverage or wine.

(b) Notwithstanding subsection (a) of this section, a permittee who holds an on‑premises or off‑premises malt beverage or wine permit under G.S. 18B‑1001(1) through (6), or a wine shop permit under G.S. 18B‑1001(16), may advertise by means of a coupon, a membership card, a discount card, or a retailer's loyalty card in the following circumstances:

(1) The permittee may provide a discount coupon for use by a customer when purchasing a malt beverage or wine sold at the permittee's retail location for off‑premises consumption.

(2) The permittee may require a customer to use the permittee's membership card, discount card, or loyalty card in order for the customer to receive a discounted price when purchasing a malt beverage or wine sold at the permittee's retail location for off‑premises consumption.

(3) No discount coupons may be honored for the purchase of an alcoholic beverage for any individual below 21 years old.

(4) Advertising for an alcoholic beverage shall not include a coupon offering a free alcoholic beverage.

(5) A discount coupon may not provide a discount exceeding fifty percent (50%) of the advertised retail price of the item.

(6) A permittee shall not advertise or distribute discount coupons in a publication produced for or by a higher education institution.

(7) In any advertisement displaying a discount coupon, the permittee shall include the following statement in close proximity and in a similar font to the discount coupon "Drink Responsibly–Be 21."

(c) Scope. – This section shall not authorize cooperation between a retailer and an industry member in violation of G.S. 18B‑1116.

(d) A violation of this section is a Class 2 misdemeanor."

SECTION 2.  This act becomes effective December 1, 2007, and applies to offenses committed on or after that date.