Edited by Kris Gardner | Published on August 30, 2024
On July 8, 2024, Senate Bill 527 (SL 2024-41) was signed into law, making significant updates to North Carolina’s beverage alcohol regulations. This comprehensive legislation, often referred to as the ABC Omnibus Bill, introduces several key changes designed to streamline processes and expand opportunities for businesses and consumers alike. Below is a summary of the critical provisions of the new law.
Cocktails and Wine To-Go (§5)
Perhaps the best-known provision in the Omnibus Bill is a provision making cocktails and wine to-go a permanent feature of the ABC laws. Previously, cocktails and wine to-go were allowed only by executive order of the Governor during the pandemic.
ABC Stores Open on More Holidays (§3)
Local ABC Boards are now authorized to operate stores on New Year’s Day, July 4th and Labor Day.
ABC Store Gift Cards and Other Merchandise (§9)
ABC stores may also now sell gift cards, empty barrels used to store or age spirituous liquor, and liquor-branded consumer specialty items such as clothing, coolers and key chains.
More Flexibility for Bars and Restaurants to Purchase Spirituous Liquor at Different ABC Stores (§6)
Previously, local ABC Boards could limit stores from which bars and restaurants had to purchase spirituous liquor. This change allows mixed beverage permittees to purchase spirituous liquor from any ABC store operating in the same county as the bar or restaurant.
Remove Mixed Beverage Fee on Premixed Cocktails (§1)
Premixed or “canned” cocktails have become popular in recent years. When spirituous liquor is sold to a mixed beverage permittee (like a bar or restaurant), a $20 fee is charged on each four liters of liquor. This was originally intended to apply only to traditional cocktails mixed at the bar or restaurant. However, the fee also applied to premixed and prepackaged canned cocktails. This provision removes this charge on canned cocktails sold to bars and restaurants.
Permit Changes and Streamlining (§13)
Retail ABC permits must be renewed annually by April 30. If payment is not made by this deadline, the permit will be revoked. Consequently, a new application is required to resume alcohol sales. However, the new law provides a safe harbor for payment until June 1, although a 25% late fee will apply.
Another notable change is the automatic conversion of temporary ABC permits to full permits after 90 days. This change addresses potential backlog issues for temporary permits that were extended multiple times due to staffing delays, often leaving permittees in a state of limbo. Now, temporary permits will remain permanent after the expiration of the 90-day period.
Finally, the new law provides more flexibility for successor permittees who acquire an establishment and operate under the previous owner’s permit(s) in the interim.
More Flexibility for Consumption in Airport (§31)
Major airport authorities now have the option to allow vendors to sell beverage alcohol for consumption within the airport terminal, subject to certain conditions. Previously, consumption was limited to the specific area within the bar or restaurant.
Introduction of New Permits (§§15-17)
Several new permits have been introduced to cater to different business models and needs:
- Malt Beverage Shop Permit: Similar to a wine shop permit, this authorizes off-premises sales, and educational events such as tastings on-premises.
- Cotenant Permit: Enables restaurants within the same building to share open containers between businesses, facilitating a more cohesive customer experience.
- BYOB Permit for Adult Entertainment: Allows patrons to bring and consume closed containers of beer and wine on the premises of adult entertainment establishments.
- Mobile Bar Services Permit: Businesses that provide bartending services at events are now authorized to purchase beverage alcohol on behalf of the event host. Previously, the business could only provide bartending services at events where the host purchased the alcohol.
Expand Opportunities for Importers (§21)
Historically, most beverage alcohol imported on the East Coast came through Miami or New York. North Carolina previously authorized imports into the state, but not for further distribution to other states. With the new law, North Carolina importers can now sell imported alcohol to businesses in other states, provided they adhere to those states’ laws.
The Omnibus Bill contains 37 substantive sections. For a detailed review, access the full document here.
The 2024 ABC Omnibus Bill represents another step forward to modernize North Carolina’s alcohol laws, balancing the need for responsible, state-based regulation while also recognizing new opportunities for consumers and businesses throughout the state. Historically, alcohol legislation was generally limited to one subject per introduced bill. Over the past several years, however, the General Assembly has elected to consider one omnibus bill that includes multiple changes to the ABC laws. It remains to be seen whether this pattern will continue or whether the legislature will return to alcohol legislation more limited in scope.
Disclaimer:
The information in this blog post serves general informational purposes only and does not constitute legal advice. The ABC laws are intricate and vary based on individual circumstances. For guidance tailored to your specific situation, please reach out to our attorneys at Tharrington Smith.
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