AN ACT to allow restaurants and bars holding a mixed beverages permit to purchase spirituous liquor from a distillery permit holder for resale as mixed beverages.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 18B‑1105(a)(2) reads as rewritten:

(2)      Sell, deliver and ship spirituous liquor in closed containers at wholesale to (i) exporters and local boards within the State, (ii) restaurants and bars holding a mixed beverages permit issued under G.S. 18B‑1001, and, (ii) (iii) subject to the laws of other jurisdictions, at wholesale or retail to consumers in other states or nations, or private or public agencies or establishments of other states or nations, except that the holder of a distillery permit may not sell, deliver, or ship spirituous liquor at retail to consumers in jurisdictions that require reciprocity in order to allow such sales, deliveries, or shipments.

SECTION 2.  G.S. 18B‑804(b1) reads as rewritten:

(b1)    Price of Spirituous Liquor Sold at Distillery. – When the holder of a distillery permit sells spirituous liquor distilled at the distillery pursuant to G.S. 18B‑1105(a)(4), or to a restaurant or bar pursuant to G.S. 18B‑1105(a)(2), the retail price of the spirituous liquor shall be the uniform State price set by subsection (a) of this section. However, For sales pursuant to G.S. 18B‑1105(a)(4), the holder of the distillery permit shall not be required to remit the components of the price set forth by subdivisions (2), (3), (5), (6), (6a), (6b), and (7) of subsection (b) of this section. For sales to restaurants and bars pursuant to G.S. 18B‑1105(a)(2), the holder of the distillery permit shall not be required to remit the components of the price set forth by subdivisions (2), (3), (5), (6), (6a), (6b), and (7) of subsection (b) of this section and the holder of the distillery permit shall remit the component set forth in subdivision (8) of subsection (b) of this section in accordance with G.S. 18B‑1105(e).

SECTION 3.  G.S. 18B‑1007(a) reads as rewritten:

(a)      Purchases. – A Except as otherwise provided in this subsection, a mixed beverages permittee may purchase spirituous liquor for resale as mixed beverages and a guest room cabinet permittee may purchase spirituous liquor for resale from a guest room cabinet only at an ABC store designated by a local board. A restaurant or bar holding a mixed beverages permit may purchase spirituous liquor for resale as mixed beverages at an ABC store designated by a local board, at a distillery pursuant to G.S. 18B‑1105(a)(2), or at an ABC store designated by a local board and at a distillery pursuant to G.S. 18B‑1105(a)(2).

SECTION 4.  G.S. 18B‑1105 is amended by adding a new subsection to read:

(e)      Distribution of Mixed Beverages Surcharge. – Each month, in addition to any other applicable fees or taxes, a distillery permit holder shall make the following payments for spirituous liquor sold directly to a restaurant or bar under subdivision (2) of subsection (a) of this section:

(1)        To the Department of Revenue, one‑half of the mixed beverages surcharge required by G.S. 18B‑804(b)(8).

(2)        To the Department of Health and Human Services, five percent (5%) of the mixed beverages surcharge required by G.S. 18B‑804(b)(8). The Department shall spend the funds described in this subdivision in accordance with the purposes set forth in G.S. 18B‑805(b)(3).

The remaining portion of the mixed beverages surcharge required by G.S. 18B‑804(b)(8) shall be retained by the distillery permit holder.

SECTION 5.  The Alcoholic Beverage Control Commission (Commission) shall develop and implement a process for allowing a holder of a distillery permit issued under G.S. 18B‑1105 to affix a mixed beverages tax stamp to spirituous liquor sold directly to a restaurant or bar in accordance with G.S. 18B‑1105(a)(2), as amended by Section 1 of this act. The Commission shall revise 14B NCAC 15A .1901, as appropriate, to implement the requirement set forth in this section.

SECTION 6.  This act becomes effective July 1, 2023, and applies to sales made on or after that date.