NORTH CAROLINA GENERAL ASSEMBLY

1975 SESSION

CHAPTER 654

SENATE BILL 29

AN ACT TO PROVIDE FOR THE MANUFACTURE AND DISTRIBUTION OF MALT BEVERAGES AND THE FURNISHING OF PRODUCTS TO GUESTS AND EMPLOYEES OF MANUFACTURERS AND DISTRIBUTORS.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 18A-38(b) is amended to read as follows:

"(b)      Permits issued to brewers, bottlers, importers and wholesalers shall be as follows:

(1)        Brewery permits shall authorize the permittee to manufacture malt beverages, and sell them in barrels, bottles, or other closed containers, only to persons permitted under the provisions of this Article and Chapter 105 to sell at wholesale. The sale of malt beverages to non-resident wholesalers is authorized when the purchase is not for resale in this State. The sale of malt, hops and other ingredients used in the manufacture of malt beverages is hereby permitted and allowed.

      A resident manufacturer of malt beverages may furnish or sell packages not conforming to the manufacturer's marketing standards or marketable malt beverage products to its employees for the sole use of said employees and members of their families, provided that appropriate North Carolina taxes have been paid or will be paid on these beverages. A resident manufacturer also may give its products to its employees and to its bona fide guests for consumption on its premises. Any sale or gift made by said manufacturer under this Section shall not be construed as a retail or wholesale sale under any other provision of this Chapter or Article 2C of Chapter 105.

      A resident manufacturer of malt beverages holding a permit under this section may receive malt beverages that are manufactured by him at some point outside this State, but within the United States, for transshipment to dealers in other States.

(2)        Wholesale malt beverage permits authorize the permittee to acquire and receive deliveries and shipments of malt beverages and to sell and deliver or ship the same, in accordance with regulations of the board, in barrels, bottles or other closed containers to persons licensed under the provisions of this Chapter to sell the same at wholesale or retail for purposes of resale. A malt beverage wholesaler may furnish or sell malt beverages to his employees for the sole use of said employees and members of their families, and, where the legal sale of such beverages is permitted, may furnish malt beverages to guests and non-permit holders for promotional purposes, subject to regulations of the State ABC Board.

(3)        Bottlers' permits shall authorize the permittee to acquire and receive deliveries and shipments of malt beverages or wine (fortified and unfortified), in bottles or other closed containers and to bottle, sell and deliver or ship the same in accordance with regulations of the board to persons permitted under the provisions of this Chapter to sell the same at wholesale for the purpose of resale.

      A holder of a bottler's permit may furnish or sell packages not conforming to the manufacturer's marketing standards to its employees for the sole use of said employees and members of their families, provided such bottlers furnish only such substandard packages on which the appropriate taxes have been paid or will be paid. Any sale made to any employee of said bottler under this section shall not be construed as a retail or wholesale sale under any other provisions of this Chapter or Article 2C of Chapter 105.

(4)        Malt beverage importers permits authorize the permittee to import malt beverages from outside the United States in barrels, bottles, or other closed containers to warehouse and sell the same at wholesale for purposes of resale."

Sec. 2.  G.S. 18A-38(c) shall be relabeled subsection (d) and all subsequent subsections shall be relabeled accordingly. The following paragraph shall be subsection (c) and shall follow subsection (b) as herein set out in Section 1 of this bill:

"(c)       The sale, distribution, soliciting orders for, or delivery of malt beverages or wine (fortified or unfortified) in this State without a permit shall be unlawful. The fact that any brewery or winery or any manufacturer or bottler of malt beverages or wine (fortified or unfortified) has applied for or obtained a permit under the provisions of this Article shall not be construed as domesticating said brewery, manufacturer, or bottler, and shall not be evidence for any other purpose that such brewery, manufacturer, or bottler is doing business in North Carolina."

Sec. 3.  G.S. 105-113.84 is amended by deleting from the heading "sale of 'short-filled' packages by manufacturers to employees" and by deleting the last paragraph of that statute.

Sec. 4.  Amend G.S. 18A-3(a) by adding after "Chapter" at the end of such section the following "or in Chapter 105, Article 2C." in order for this section, as amended, to read as follows: "(a) No person shall manufacture, sell, barter, transport, import, export, deliver, furnish, purchase, or possess any intoxicating liquor except as authorized in this Chapter or in Chapter 105, Article 2C."

Sec. 5.  This act shall become effective upon ratification.

In the General Assembly read three times and ratified, this the 18th day of June, 1975.