Senate Bill 838-First Edition

GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2007

S 1

SENATE BILL 838

Short Title: ABC Law Changes.-AB		(Public)
Sponsors:	Senator Bingham.
Referred to:	Commerce, Small Business and Entrepreneurship.

March 19, 2007

A BILL TO BE ENTITLED

AN ACT to increase the fines for penalties and offers in compromise for Alcoholic beverage control Law violations, to require agents of the division of alcohol law enforcement to serve and EXECUTE Alcoholic beverage control and North carolina state Lottery commission orders, notices, and demands, to change ABC permit registration and inspection fee revocations to suspensions, to allow local governments and nonprofit organizations to have special one‑time permits to sell and serve Malt beverages, wines, mixed beverages, and spirituous liquors at fund-raisers, to make technical corrections to commercial permits, and to allow winemaking on premises permits at unfortified wineries as recommended by the Alcoholic beverage Commission.

The General Assembly of North Carolina enacts:

SECTION 1. G.S. 18B‑104(a)(3) reads as rewritten:

"(3) Fine the permittee up to ~~five hundred dollars ($500.00)~~ one thousand dollars ($1,000) for the first violation, up to ~~seven hundred fifty dollars ($750.00)~~ one thousand five hundred dollars ($1,500) for the second violation, and up to ~~one thousand dollars ($1,000)~~ two thousand dollars ($2,000) for the third violation; or".

SECTION 2. G.S. 18B‑104(b) reads as rewritten:

"(b) Compromise. – In any case in which the Commission is entitled to suspend or revoke a permit, the Commission may accept from the permittee an offer in compromise to pay a penalty of not more than ~~five thousand dollars ($5,000)~~ twenty-five-thousand dollars ($25,000). The Commission may either accept a compromise or revoke a permit, but not both. The Commission may accept a compromise and suspend the permit in the same case."

SECTION 3. G.S. 18B‑500(d) reads as rewritten:

"(d) Service of Commission Orders. – Alcohol law‑enforcement agents ~~may~~ shall serve and execute notices, orders, or demands issued by the Alcoholic Beverage Control Commission or the North Carolina State Lottery Commission for the surrender of permits or relating to any administrative proceeding. While serving and executing such notices, orders, or demands, alcohol law‑enforcement agents shall have all the power and authority possessed by law‑enforcement officers when executing an arrest warrant."

SECTION 4. G.S. 18B‑900(a) reads as rewritten:

"§ 18B‑900. Qualifications for permit.

(a) Requirements. – To be eligible to receive and to hold an ABC permit, a person shall:

(1) Be at least 21 years old, unless the person is a manager of a business selling only malt beverages and unfortified wine, in which case the person shall be at least 19 years old;

(2) Be a resident of North Carolina unless:

a. He is an officer, director or stockholder of a corporate applicant or permittee and is not a manager or otherwise responsible for the day‑to‑day operation of the business; or

b. He has executed a power of attorney designating a qualified resident of this State to serve as attorney in fact for the purposes of receiving service of process and managing the business for which permits are sought; or

c. He is applying for a nonresident malt beverage vendor permit, a nonresident wine vendor permit, or a vendor representative permit;

(3) Not have been convicted of a felony within three years, and, if convicted of a felony before then, shall have had his citizenship restored;

(4) Not have been convicted of an alcoholic beverage offense within two years;

(5) Not have been convicted of a misdemeanor controlled substance offense within two years; and

(6) Not have had an alcoholic beverage permit revoked within three years, except where the revocation was based solely on a permittee's failure to pay the annual registration and inspection fee required in G.S. 18B‑903(b1).

(7) Not have, whether as an individual or as an officer, director, shareholder or manager of a corporate permittee, an unsatisfied outstanding final judgment that was entered against him in an action under Article 1A of this Chapter.

(8) Be a United States citizen with a valid social security number or valid documentation demonstrating legal presence in the United States and that documentation is issued to the applicant under the authority of the United States government.

To avoid undue hardship, however, the Commission may decline to take action under G.S. 18B‑104 against a permittee who is in violation of subdivisions (3), (4), or (5)."

SECTION 5. G.S. 18B‑903(b1) reads as rewritten:

"(b1) Registration. – Each person holding a malt beverage, fortified wine, or unfortified wine permit issued pursuant to G.S. 18B‑902(d)(1) through G.S. 18B‑902(d)(6) 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 registration required by this subsection shall be accompanied by an annual registration and inspection fee of two hundred dollars ($200.00) 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~~ a suspension of the permit until the registration fee is received by the Commission and the permits are reinstated."

SECTION 6. G.S. 18B‑1002(5) reads as rewritten:

"(5) A permit may be issued to a unit of local government, or to a nonprofit organization or a political organization to sell or serve wine, malt beverages, mixed beverages, and spirituous liquor at a ticketed event held to allow the unit of local government or organization to raise funds. 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 will also allow the issuance of a purchase‑transportation permit under G.S. 18B‑403 and 18B‑404 and the use for culinary purposes of spirituous liquor lawfully purchased for use in mixed beverages."

SECTION 7. 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.~~manufacturer

(19) Wine producer ~~permit.~~permit."

SECTION 8. G.S. 18B‑1101 is amended by adding a new subdivision to read:

"§ 18B‑1101. Authorization of unfortified winery permit.

The holder of an unfortified winery permit may:

…

(8) Allow winemaking on premises as allowed by a permit issued pursuant to G.S. 18B‑1001(17).

…"

SECTION 9. Sections 1 and 2 of this act become effective December 1, 2007, and apply to offenses committed on or after that date. The remainder of this act is effective when it becomes law.