ABC Omnibus of 2026.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 5
HOUSE BILL 198
Committee Substitute Favorable 3/5/25
Senate Commerce and Insurance Committee Substitute Adopted 5/22/26
Senate Finance Committee Substitute Adopted 6/16/26
Fifth Edition Engrossed 6/18/26

Short Title: ABC Omnibus of 2026. (Public)
Sponsors:
Referred to:
February 26, 2025
*H198-v-5*
A BILL TO BE ENTITLED 1
AN ACT TO AMEND THE LAWS OF THIS STATE R ELATED TO ALCOHOLIC 2
BEVERAGES AND RAFFLES. 3
The General Assembly of North Carolina enacts: 4
5
PART I. ABC WAREHOUSE LOAN 6
7
ALLOW ABC COMMISSION TO OBTAIN A LOAN FOR A NEW STATE 8
WAREHOUSE 9
SECTION 1.(a) Notwithstanding G.S. 18B-208, the Alcoholic Beverage Control 10
Commission may, with the approval of the Governor, obtain a one -time loan of up to three 11
hundred ten million dollars ($310,000,000) from a financial institution to be used for planning, 12
design, construction, and equipping of a new automated warehouse and associated offices for the 13
Commission, as well as purchasing any real property for the new automated warehouse and 14
associated offices for the Commission, provided that the Commission may no t pledge real 15
property owned by the State of North Carolina as collateral. The Commission's obtaining of a 16
loan shall not directly or indirectly or contingently obligate the State to levy or to pledge any 17
form of taxation or to make any appropriation for r epayment of the loan. Notwithstanding 18
G.S. 18B-902(g), the Commission shall repay the loan, including interest, from the proceeds of 19
permit fees collected by the Commission. The Commission may prepay any obligation under this 20
section, in whole or in part, without penalty unless the loan agreement expressly provides 21
otherwise. To the extent the proceeds from the fees referenced in this subsection are deemed 22
unappropriated, they are hereby appropriated for the purpose of repaying the loan described in 23
this subsection. For purposes of this section, the term "financial institution" means any banking 24
corporation or trust company, savings and loan association, credit union, insurance company, or 25
related corporation, partnership, foundation, or other institution engaged primarily in lending or 26
investing funds. 27
SECTION 1.(b) This section becomes effective July 1, 2026. 28
29
PART II. ABC TECHNICAL AND CLARIFYING CHANGES 30
31
BROWN-BAGGING TECHNICAL CORRECTION 32
SECTION 2. G.S. 18B-603(d) reads as rewritten: 33
General Assembly Of North Carolina Session 2025
Page 2 House Bill 198-Fifth Edition
"(d) Mixed Beverag e Elections. – If a mixed beverage election is held under 1
G.S. 18B-602(h) and the sale of mixed beverages is approved, the Commission may issue permits 2
to qualified persons and establishments in the jurisdiction that held the election as follows: 3
… 4
(4) The Commission may issue brown -bagging permits for bars, private clubs 5
clubs, and congressionally chartered veterans organizations but may no longer 6
issue and may not renew brown -bagging permits for restaurants, hotels, and 7
community theatres. A restaurant, h otel, or community theatre may not be 8
issued a mixed beverage permit under subdivision (1) until it surrenders its 9
brown-bagging permit. 10
…." 11
12
AIRPORT TECHNICAL CORRECTION 13
SECTION 3. G.S. 18B-300.3 reads as rewritten: 14
"§ 18B-300.3. Possession and consumption of alcoholic beverages in the security -screened 15
area of airports. 16
(a) During the hours of airport operation, any establishment permitted under subdivision 17
(1), (3), (5), or (10) of G.S. 18B-1000 G.S. 18B-1001 and operating in the Transportation 18
Security Administration-screened portion of an airport may, with the written approval of the 19
airport authority, sell the alcoholic beverages it is permitted to sell for consumption throughout 20
the Transportation Security Administration -screened portion of t he establishment's respective 21
airport terminal. 22
(b) An alcoholic beverage served for consumption throughout an establishment's airport 23
terminal shall be served in a container that meets all of the following requirements: 24
(1) The container is not comprised of glass. 25
(2) The container displays, in no less than 12 -point font, the statement, "Drink 26
Responsibly – Be 21." 27
(3) The container shall not hold more than 16 fluid ounces. 28
(c) A customer may purchase and consume alcoholic beverages throughout the interior 29
of the Transportation Security Administration-screened portion of the respective airport terminal, 30
provided that the purchase is from an approved establishment permitted under subdivision (1), 31
(3), (5), or (10) of G.S. 18B-1000.G.S. 18B-1001. 32
(d) This section applies only to airports that service airplanes boarding at least 150,000 33
passengers annually." 34
35
CLARIFY PERMISSION TO TAKE MIXED BEVERAGES ONTO PERMITTED 36
PREMISES IN A SOCIAL DISTRICT 37
SECTION 4. G.S. 18B-300.1(f) reads as rewritten: 38
"(f) Limitations on Open Containers. – Except where otherwise allowed by local 39
ordinance, the possession and consumption of an open container of an alcoholic beverage in a 40
social district is subject to all of the following requirements: 41
… 42
(6) Notwithstanding G.S. 18B-300 and G.S. 18B-301, a permittee or 43
non-permittee business may allow a customer to possess and consume on the 44
business's premises alcoholic beverages purchased from a permittee in the 45
social district. A permittee business that is not permitted to sell mixed 46
beverages may allow a customer to possess and consume on the business 's 47
premises mixed beverages purchased from a mixed beverages permittee in the 48
social district." 49
50
DELIVERY SERVICES PERMIT TECHNICAL CORRECTIONS 51
General Assembly Of North Carolina Session 2025
House Bill 198-Fifth Edition Page 3
SECTION 5. G.S. 18B-1001.4 reads as rewritten: 1
"§ 18B-1001.4. Authorization of delivery service permit. 2
(a) Authorization. – The holder of a delivery service permit, or the permit holder's 3
employee or independent contractor, may deliver malt beverages, unfortified wine, or fortified 4
wine on behalf of a retailer holding a permit issued pursuant to subdivisions (1) through (6) and 5
(16) of G.S. 18B-1001, and single-serving wine drinks or mixed beverages on behalf of a retailer 6
holding a permit issued pursuant to subdivision (3), (5), or (10) of G.S. 18B-1001 when delivered 7
in accordance with the requirements of those subdivisions, to a location designated by the 8
purchaser. A delivery service permittee may also facilitate delivery through technology services 9
that connect consumers and licensed retailers through the use of the Internet, mobile applications, 10
and other similar technology. 11
… 12
(e) Scope and Construction. – A delivery service permit is not required for a common 13
carrier lawfully transporting or shipping alcoholic beverages. Nothing in this section shall be 14
construed as exempting the delivery of alcoholic beverages pursuant to a delivery service permit 15
from the requirements set forth in Article 4 of Chapter 18B of the General Statutes. Nothing in 16
this section shall be construed to require a technology services company to obtain a delivery 17
service permit if the company does not employ or contract with delivery drivers, but rather 18
provides software or an application that connects consumers and licensed retailers for the 19
delivery of alcoholic be verages from the licensed retailer. Nothing in this section shall be 20
construed to require a retailer that holds a permit issued pursuant to subdivisions (1) through (6), 21
(10), and (16) of G.S. 18B-1001 to obtain a delivery service permit in order for employees of the 22
retail permittee to deliver malt beverages, unfortified wine, or fortified wine to a location 23
designated by the purchaser, purchaser; however, the other provisions of this section apply to the 24
retailer. 25
…." 26
27
CLARIFY SAFE HARBOR FOR LATE ABC PERMIT RENEWALS 28
SECTION 6.(a) G.S. 18B-903 reads as rewritten: 29
"§ 18B-903. Duration of permit; renewal and transfer. 30
(a) Duration. – Once issued, ABC permits shall be valid for the following periods, unless 31
earlier surrendered, suspended or revoked: 32
… 33
(5) All other ABC permits shall be valid for one year, from May 1 to April 30.May 34
31 of the following year, as provided in subsection (b3) of this section. 35
(b) Renewal. – Application for renewal of an ABC permit shall be on a form provided 36
by the Commission. An application for renewal shall be accompanied by an application fee. The 37
application fee shall be the same amount as the initial fee set in G.S. 18B-902, except that the 38
renewal application fee for each wine shop permit or malt beverage shop permit shall be five 39
hundred dollars ($500.00), and the renewal application fee for each mixed beverages permit and 40
each guest room cabinet permit shall be one thousand dollars ($1,000). The fee shall be paid by 41
May 1 of each year. A renewal fee shall not be refundable. 42
(b1) Registration. – Each person holding a malt beverage, fortified wine, or unfortified 43
wine permit issued pursuant to G.S. 18B-902(d)(1) through G.S. 18B-902(d)(6) shall register by 44
May 1 of each year on a form provided by the Commission, in order to provide information 45
needed by the State in enforcing this Chapter and to support the costs of that enforcement. The 46
registration required by this subsection shall be accompanied by an annual registration and 47
inspection fee of four hundred dollars ($400.00) for each permit held. The fee shall be paid by 48
May 1 of each year. A registration fee shall not be refundable. Failure to pay the annual 49
registration and inspection fee shall result in revocation of the permit. 50
… 51
General Assembly Of North Carolina Session 2025
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(b3) Safe Harbor; Late Fees. – Notwithstanding subsection (a) of this section, no permit 1
issued under Article 10 of this Chapter, other than a special occasion permit, limited special 2
occasion permit, or special one -time permit, shall expire or be revoked or canceled by the 3
Commission shall not revoke a permit for failure to pay a renewal application fee or an annual 4
registration and inspection fee until June 1 of each year. year, and the permittee shall be allowed 5
to operate under the permit until that date. No later than five business days after April 30 of each 6
year, the Commission shall notify permittees who have not paid any required renewal application 7
fees or annual registration and inspection fees as of April 30. April 30 by email or first-class mail. 8
The Commission shall charge a late fee of twenty-five percent (25%) of the renewal application 9
fee or registration and inspection fee for a permit for which the renewal application fee or 10
registration and inspection fee is submitted after April 30. 11
…." 12
SECTION 6.(b) G.S. 18B-900, as amended by Section 17(e) of this act, reads as 13
rewritten: 14
"§ 18B-900. Qualifications for permit. 15
(a) Requirements. – To be eligible to receive and to hold an ABC permit, a person must 16
satisfy all of the following requirements: 17
… 18
(6) Not have had an alcoholic beverage permit revoked within three years, except 19
where the revocation was based solely on a permittee's failure to pay the 20
annual registration and inspection fee required in G.S. 18B-903(b1). 21
… 22
(8) Be current in filing all applicable tax returns to the State and in payment of all 23
taxes, interest, and penalties that are collectible under G.S. 105-241.22. This 24
subdivision does not apply to the following ABC permits: 25
a. Special occasion permit under G.S. 18B-1001(8). 26
b. Limited special occasion permit under G.S. 18B-1001(9). 27
c. Special one-time permit under G.S. 18B-1002. 28
d. Salesman permit under G.S. 18B-1111. 29
e. Special multiple event permit under G.S. 18B-1002.2. 30
To avoid undue hardship, however, the Commission may decline to take action under 31
G.S. 18B-104 against a permittee who is in violation of subdivisions (3), (4), or (5) of this 32
subsection. Additionally, to avoid undue hardship, the Commission may, in its discretion, allow 33
the renewal of a permit for a permittee who is in violation of subdivision (8) of this subsection. 34
… 35
(f) Procedure to Confirm State Tax Compliance. – Upon request of the Commission, the 36
Department of Revenue must provide information to the Commission to confirm a person's 37
compliance with subdivision (a)(8) of this sec tion. If the Department of Revenue notifies the 38
Commission that a person is not in compliance, then the Commission shall not issue or renew the 39
person's permit until the Commission receives notice from the Department of Revenue that the 40
person is in compliance. compliance; however, the Commission may, in its discretion, allow the 41
renewal of a permit notwithstanding a person's lack of compliance with subdivision (a)(8) of this 42
section. The requirement to pay all taxes, interest, and penalties may be satisfied by an operative 43
agreement under G.S. 105-237 covering any amounts that are collectible under G.S. 105-241.22. 44
Chapter 150B of the General Statutes does not apply to a Commission action on issuance, 45
suspension, or revocation of an ABC permit under subdivision (a)(8) of this section." 46
SECTION 6.(c) G.S. 105-113.83A(d) reads as rewritten: 47
"(d) Penalty. – The Secretary must notify the ABC Commission when a permittee required 48
to register is not eligible to hold an ABC permit for failure to satisfy in violation of 49
G.S. 18B-900(a)(8). Upon notification, the ABC Commission must may impose any penalty 50
permitted under G.S. 18B-104." 51
General Assembly Of North Carolina Session 2025
House Bill 198-Fifth Edition Page 5
SECTION 6.(d) Notwithstanding any other provision of law, if (i) a permit holder 1
was charged a late fee by the Alcoholic B everage Control Commission pursuant to 2
G.S. 18B-903(b3) as a result of a notification from the Department of Revenue to the 3
Commission pursuant to G.S. 18B-900(f) and (ii) the permit holder complied with 4
G.S. 18B-900(a)(8) before June 1 of the year in whic h the permit was renewed, in accordance 5
with the safe harbor provision in G.S. 18B-903(b3), then the permit holder may request a refund 6
of the late fee from the Commission. A permit holder must submit to the Commission evidence 7
of compliance with G.S. 18B-900(a)(8) before June 1 of the year in which the permit was 8
renewed to receive a refund pursuant to this subsection. The Commission shall refund late fees 9
to any permit holder who meets the requirements of this subsection and requests a refund. All 10
refund requests pursuant to this subsection must be submitted to the Commission by May 31, 11
2027. 12
SECTION 6.(e) Subsection (a) of this section is retroactively effective June 28, 13
2024. The remainder of this section is effective when it becomes law. 14
15
CLARIFY MOBILE BAR SERVICE PERMIT AND INTERACTION WITH CERTAIN 16
ON-PREMISES PERMITS 17
SECTION 7. G.S. 18B-1001(12a) reads as rewritten: 18
"(12a) Mobile Bar Services Permit. – 19
a. A mobile bar services permit may be issued to a business that provides 20
bartending services for events. The permit authorizes the permittee to 21
bring malt beverages, unfortified wine, fortified wine, and spirituous 22
liquor onto the premises of a business that is not an ABC permittee 23
and to serve the alcoholic beverages to guests at the event. The Except 24
as provided in sub -subdivision b. of this subdivision, the permittee 25
may purchase malt beverages and unfortified wine from either a 26
retailer or a wholesaler. only from a retailer. The permittee may 27
purchase fortified wine from either an ABC store or a wholesaler. The 28
permittee shall purchase and spirituous liquor only from an ABC store 29
that is designated as a mixed beverage ABC store operated by any 30
local board operating in the same county where the permittee's 31
principal office is located. If the permit tee's premises for storage of 32
inventory is a residential address, the permittee may designate an area 33
of the premises to be used for storage of inventory pursuant to the 34
permit. An inspection of the premises pursuant to G.S. 18B-502 shall 35
extend only to the area that the permittee has designated for storage of 36
inventory unless the law enforcement officer conducting the 37
inspection has (i) a warrant to search the residence or (ii) probable 38
cause to search the residence and exigent circumstances exist. 39
b. The holder of a permit issued pursuant to G.S. 18B-1001(1), (3), (5), 40
(16), or (16a) may also hold a mobile bar services permit at the same 41
permitted premises . Notwithstanding sub -subdivision a. of this 42
subdivision, a permittee who holds both a mobile bar services permit 43
and a permit issued pursuant to G.S. 18B-1001(1), (3), (5), (16), or 44
(16a) may not obtain or serve alcoholic beverages that the permittee is 45
not allowed to sell under the permit or permits that the permittee holds 46
that are issued pursuant to G.S. 18B-1001(1), (3), (5), (16), or (16a) . 47
The permittee shall only use as inventory for the mobile bar services 48
permit the permittee 's inventory of alcoholic beverages lawfully 49
purchased from a wholesaler pursuant to the permit or permits that the 50
permittee holds under G.S. 18B-1001(1), (3), (5), (16), or (16a). The 51
General Assembly Of North Carolina Session 2025
Page 6 House Bill 198-Fifth Edition
mobile bar services permit shall authorize such a permittee to bring 1
those alcoholic beverages onto the premises of a business that is not 2
an ABC permittee and serve the alcoholic beverages to guests at the 3
event. Alcoholic beverages that are taken from the permittee 's 4
inventory to an event at another premises under a mobile bar services 5
permit may be restored to inventory after the event if the alcoholic 6
beverages are still in the manufacturer's original unopened container. 7
c. The A mobile bar services permittee may not serve alcoholic 8
beverages pursuant to a mobile bar services permit on the premises of 9
any location owned or possessed by the permittee. The permittee shall 10
notify the Commission, in writing, of the location of any event where 11
the permittee will serve alcoholic beverages not less than one week 12
before the event and shall have the permission of the owner or 13
possessor of the property on which the event is to be held. Any person 14
serving alcoholic beverages at the event shall be at least 21 years of 15
age. Alcoholic beverages may be transported by the mobile bar 16
services permit holder to the premises of the event no earlier than 8:00 17
A.M. on the day of the event. At the conclusion of the eve nt, all 18
alcoholic beverages must be removed from the premises no later than 19
12:00 noon of the following day. A limited special occasion permit 20
shall not be required for an event at which alcoholic beverages are 21
exclusively provided by the holder of a mobil e bar services permit. 22
The holder of a mobile bar services permit may bring alcoholic 23
beverages onto the premises and serve the alcoholic beverages at an 24
event regardless of whether there is a charge or fee for guests to attend 25
the event. This permit does not allow the retail sale of individual 26
alcoholic beverages to guests at an event." 27
28
CLARIFY THAT THE ABC COMMISSION MAY ORDER CERTAIN DISPOSITIONS 29
OF SEIZED ALCOHOLIC BEVERAGES AFTER AN OFFER IN COMPROMISE TO 30
RESOLVE AN ABC LAW VIOLATION HAS BEEN ACCEPTED BY THE 31
COMMISSION 32
SECTION 8.(a) G.S. 18B-503 reads as rewritten: 33
"§ 18B-503. Disposition of seized alcoholic beverages. 34
(a) Storage. – A law-enforcement law enforcement officer who seizes alcoholic 35
beverages as evidence of an ABC law violation shall provide for the storage of those alcoholic 36
beverages until the commencement of the trial or administrative hearing relating to the violation, 37
unless some other disposition is authorized under this section. 38
(b) Disposition Before Trial. – After giving notice to each defendant, to any other known 39
owner, and to the Commission, a judge may order any of the following dispositions of alcoholic 40
beverages seized as evidence of an ABC law violation: 41
(1) The destruction of any malt beverages except that amount needed for evidence 42
at trial. 43
(2) The sale of any alcoholic beverages other than malt beverages or nontaxpaid 44
alcoholic beverages, and other than any alcoholic beverages needed for 45
evidence at trial, if the trial is likely to be delayed for more than 90 days, or if 46
the quantity or nature of the alcoholic beverages is such that storage is 47
impractical or unduly expensive. 48
(3) The destruction of the alcoholic beverages if storage or sale is not practical. 49
(4) Continued storage of the alcoholic beverages. 50
General Assembly Of North Carolina Session 2025
House Bill 198-Fifth Edition Page 7
(c) Disposition After Trial. – After the criminal charge is resolved, a judge may order the 1
following dispositions of seized alcoholic beverages: 2
(1) If the owner or possessor of the alcoholic beverages is found guilty of a 3
criminal charge relating to those alcoholic beverages, the judge may order the 4
sale or destruction of any alcoholic beverages that were held until trial. 5
(2) If the owner or possessor of the alcoholic beverages is found not guilty, or if 6
charges are dismissed or otherwise resolved in favor of the o wner or 7
possessor, the judge shall order the alcoholic beverages returned to that owner 8
or possessor, except as provided in subdivision (3). 9
(3) If the owner or possessor of the alcoholic beverages is found not guilty, or if 10
charges are otherwise resolved in favor of the owner or possessor, but 11
possession of the alcoholic beverages by that owner or possessor would be 12
unlawful, the judge shall order the alcoholic beverages either sold or 13
destroyed. 14
(4) If ownership of the alcoholic beverages remains uncertai n after trial or after 15
the charges have been dismissed, the judge may order the alcoholic beverages 16
held, or the alcoholic beverages sold and the proceeds held, for a specified 17
time, until ownership of the alcoholic beverages can be determined. 18
(d) Holding for Administrative Hearings. – If alcoholic beverages used as evidence in a 19
criminal proceeding are also needed as evidence at an administrative hearing, a judge shall not 20
order any of the dispositions set out in subsection (c), but shall order the alcoholic beverages held 21
for the administrative hearing and for a determination of final disposition by the Commission. 22
The Commission may, before or after an administrative hearing, order any of the dispositions 23
authorized under subsections (b) and (c). Subject to the restriction set forth in this subsection 24
prohibiting sale or destruction without notice to the district attorney , if the Commission accepts 25
an offer in compromise to resolve an ABC law violation, the Commission may order the 26
applicable disposition set out in subdivision (2) or (3) of subsection (c) of this section. If no 27
related criminal proceeding has commenced, the Commission shall not order sale or destruction 28
of alcoholic beverages until notice has been given to the district attorney for the district where 29
the alcoholic beverages were seized or any violation of ABC laws related to the seizure of the 30
alcoholic beverages is likely to be prosecuted. 31
…." 32
SECTION 8.(b) This section is effective when it becomes law and applies to offers 33
in compromise accepted on or after that date. 34
35
CLARIFY THAT WINE SHOP PERMITTEES MAY HOLD MALT BEVERAGE SHOP 36
PERMITS AND THAT MALT BEVERAGE SHOP PERMITTEES MAY HOLD WINE 37
SHOP PERMITS 38
SECTION 9. G.S. 18B-1001 reads as rewritten: 39
"§ 18B-1001. Kinds of ABC permits; places eligible. 40
When the issuance of the permit is lawful in the jurisdiction in which the premises are located, 41
the Commission may issue the following kinds of permits: 42
… 43
(16) Wine Shop Permit. – A wine shop permit authorizes (i) the retail sale of malt 44
beverages, unfortified wine, and fortified wine in the manufacturer's original 45
container for consumption off the premises, (ii) the retail sale of malt 46
beverages or unfortified wine dispensed from a tap connected to a pressurized 47
container utilizing carbon dioxide or similar gas in a cleaned and sanitized 48
container that is filled or refilled and sealed for consumption off the premises 49
and that identifies the permittee and the date the container was filled or 50
refilled, and (iii) wine tastings on the premises conducted and supervised by 51
General Assembly Of North Carolina Session 2025
Page 8 House Bill 198-Fifth Edition
the permittee in accordance with subdivision (15) of this section. It also 1
authorizes the holder of the permit to ship malt beverages, unfortified wine, 2
and fortified wine in closed containers to individual purchasers inside an d 3
outside the State. The permit may be issued for retail businesses whose 4
primary purpose is selling malt beverages and wine for consumption off the 5
premises and regularly and customarily educating consumers through tastings, 6
classes, and seminars about th e selection, serving, and storing of wine. The 7
holder of the permit is authorized to sell unfortified wine for consumption on 8
the premises, provided that that, except as otherwise provided in this 9
subdivision, the sale of wine for consumption on the premises does not exceed 10
forty percent (40%) of the establishment's total sales for any 30 -day period. 11
The holder of a wine-tasting permit not engaged in the preparation or sale of 12
food on the premises is not subject to Part 6 of Article 8 of Chapter 130A of 13
the General Statutes. A holder of a wine shop permit shall also be eligible to 14
hold a malt beverage shop permit under G.S. 18B-1001(16a). If the holder of 15
a wine shop permit also hold s a malt beverage shop permit, then the sales of 16
alcoholic beverages for consumption on the premises may not exceed forty 17
percent (40%) of the establishment's total sales for any 30-day period. 18
(16a) Malt Beverage Shop Permit. – A malt beverage shop permit authorizes (i) the 19
retail sale of malt beverages, unfortified wine, and fortified wine in the 20
manufacturer's original container for consumption off the premises, (ii) the 21
retail sale of malt beverages dispensed from a tap connected to a pressurized 22
container utilizing carbon dioxide or similar gas in a cleaned and sanitized 23
container that is filled or refilled and sealed for consumption off the premises 24
and that identifies the permittee and the date the container was filled or 25
refilled, and (iii) malt bever age tastings on the premises conducted and 26
supervised by the permittee in accordance with subdivision (18) of this 27
section. It also authorizes the holder of the permit to ship malt beverages, 28
unfortified wine, and fortified wine in closed containers to ind ividual 29
purchasers inside and outside the State. The permit may be issued for retail 30
businesses whose primary purpose is selling malt beverages for consumption 31
off the premises and regularly and customarily educating consumers through 32
tastings, classes, and seminars about the selection, serving, and storing of malt 33
beverages. The holder of the permit is authorized to sell malt beverages for 34
consumption on the premises, provided that that, except as otherwise provided 35
in this subdivision, the sale of malt beverages, combined, for consumption on 36
the premises does not exceed forty percent (40%) of the establishment's total 37
sales for any 30-day period. The holder of a malt beverage tasting permit not 38
engaged in the preparation or sale of food on the premises is not subject to 39
Part 6 of Article 8 of Chapter 130A of the General Statutes. A holder of a malt 40
beverage shop permit shall also be eligible to hold a wine shop permit under 41
G.S. 18B-1001(16). If the holder of a malt beverage shop permit also holds a 42
wine shop permit, then the sales of alcoholic beverages for consumption on 43
the premises may not exceed forty percent (40%) of the establishment 's total 44
sales for any 30-day period. 45
…." 46
47
CLARIFY ABC COMMISSION NOTICE TO PERMIT HOLDER 48
SECTION 10.(a) G.S. 18B-502(c) reads as rewritten: 49
"(c) Notice to Permit Holders. – If the Commission receives a report from a law 50
enforcement agency other than the Division of Alcohol Law Enforcement of the Department of 51
General Assembly Of North Carolina Session 2025
House Bill 198-Fifth Edition Page 9
Public Safety or a local ABC officer any law enforcement agency documenting violations of this 1
Chapter or Chapter 14 of the General Statutes for conduct occurring on the premises of a 2
permitted establishment, the Commission shall send notice of the alleged violation to the holder 3
of the permit within five business days of receipt of the law enforcement agency report. The 4
written notice shall identify the currently alleged violations and the involved employee. Nothing 5
in this subsection shall prevent or limit the Commission from taking any additional action 6
warranted by the circumstances of the violation." 7
SECTION 10.(b) This section is effective when it becomes law and applies to 8
violations committed on or after that date. 9
10
PART III. OTHER ABC CHANGES 11
12
ESTABLISH SERVICE BUSINESS PERMIT 13
SECTION 11.(a) G.S. 18B-300(a1) reads as rewritten: 14
"(a1) Consumption on Premises During Time of Permit Revocation or Suspension. – It shall 15
be unlawful to consume or for a permittee or his a permittee's agent or employee to allow the 16
consumption of malt beverages or unfortified wine on the premises of any business during the 17
period of time that any on -premises permit or service business permit issued to the business 18
authorizing the sale and or consumption of malt beverages or unfortified wine has been 19
suspended or revoked by the Commission. The prohibition in this subsection does not apply to 20
the premises upon which the business was located at the time the permit was suspended or 21
revoked if the business ceases to operate in that location and the owner of the property is not the 22
permittee, provided that the permittee is not engaged in any other business or other activity on 23
the premises during the period of suspension or revocation." 24
SECTION 11.(b) G.S. 18B-603 is amended by adding a new subsection to read: 25
"(i) Service Business Permits. – The Commission may only issue service business permits 26
provided for in G.S. 18B-1001(26) to qualified persons and establishments located withi n a 27
jurisdiction in which on-premises malt beverage permits or on-premises unfortified wine permits 28
may be issued, subject to the following restrictions: 29
(1) If on-premises malt beverage permits, but not on -premises unfortified wine 30
permits, may be issued in the jurisdiction, the service business permittee may 31
furnish only malt beverages to customers. 32
(2) If on-premises unfortified wine permits, but not on -premises malt beverage 33
permits, may be issued in the jurisdiction, the service business permittee may 34
furnish only unfortified wine to customers. 35
(3) If on -premises malt beverage permits and on -premises unfortified wine 36
permits may be issued in the jurisdiction, the service business permittee may 37
furnish malt beverages and unfortified wine to customers." 38
SECTION 11.(c) G.S. 18B-902 reads as rewritten: 39
"§ 18B-902. Application for permit; fees. 40
… 41
(d) Fees. – An application for an ABC permit shall be accompanied by payment of the 42
following application fee: 43
… 44
(57) Service business permit – $50.00. 45
… 46
(h) Recycling Plan Required. – Each applicant for an on-premises malt beverage permit, 47
on-premises unfortified wine permit, service business permit, on-premises fortified wine permit, 48
or a mixed beverages permit shall prepare and submit with the application a plan for the collection 49
and recycling of all recyclable beverage containers of all bev erages to be furnished or sold at 50
retail on the premises. Each applicant for a mobile bar services permit shall prepare and submit 51
General Assembly Of North Carolina Session 2025
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with the application a plan for the collection and recycling of all recyclable beverage containers 1
of all beverages to be ser ved at an event pursuant to the permit. A permittee who is not able to 2
find a recycler for its beverage containers may apply to the Alcoholic Beverage Control 3
Commission for a one -year stay of the requirement to implement a recycling program in 4
compliance with G.S. 18B-1006.1. The application shall be made in a form specified by the 5
Commission, shall detail the efforts made by the permittee to provide for the collection and 6
recycling of beverage containers, and shall specify the impediments to implementatio n of a 7
recycling plan. The Commission shall submit all such applications to the Division of 8
Environmental Assistance and Outreach of the Department of Environmental Quality for review 9
and certification. The Division of Environmental Assistance and Outreach shall investigate each 10
application and prepare a summary of its investigation and shall submit the summary to the 11
Commission along with a notation indicating certification or denial of the application. A 12
permittee whose application for a stay is certified by the Division of Environmental Assistance 13
and Outreach shall not be required to comply with the recycling requirement of the alcoholic 14
beverage laws and regulations during the one-year stay period so certified." 15
SECTION 11.(d) G.S. 18B-903, as amended by Section 6 of this act, reads as 16
rewritten: 17
"§ 18B-903. Duration of permit; renewal and transfer. 18
(a) Duration. – Once issued, ABC permits shall be valid for the following periods, unless 19
earlier surrendered, suspended or revoked: 20
(1) On-premises and off-premises malt beverage, unfortified wine, and fortified 21
wine permits; service business permits; culinary permits; and all permits listed 22
in G.S. 18B-1100 shall remain valid indefinitely. 23
… 24
(b1) Registration. – Each person holding a malt beverage, forti fied wine, or unfortified 25
wine permit unfortified wine, or service business permit issued pursuant to G.S. 18B-902(d)(1) 26
through G.S. 18B-902(d)(6) or G.S. 18B-902(d)(57) shall register by May 1 of each year on a 27
form provided by the Commission, in order to provide information needed by the State in 28
enforcing this Chapter and to support the costs of that enforcement. The For permits issued 29
pursuant to G.S. 18B-902(d)(1) thr ough G.S. 18B-902(d)(6), the registration required by this 30
subsection shall be accompanied by an annual registration fee of four hundred dollars ($400.00) 31
for each permit held. For permits issued pursuant to G.S. 18B-902(d)(57), the registration 32
required by this subsection shall be accompanied by an annual registration fee of fifty dollars 33
($50.00) for each permit held. The fee shall be paid by May 1 of each year. A registration fee 34
shall not be refundable. Failure to pay the annual registration fee shall result in revocation of the 35
permit. 36
(b2) Recycling Plan Required. – Each person holding an on -premises malt beverage 37
permit, on-premises unfortified wine permit, service business permit, on-premises fortified wine 38
permit, or a mixed beverages permit shall s ubmit, along with the annual registration or renewal 39
application, either a current plan for the collection and recycling of all recyclable beverage 40
containers of all beverages furnished or sold at retail on the premises, or an application for a 41
waiver purs uant to G.S. 18B-902(h). Each person holding a mobile bar services permit shall 42
submit, along with the annual renewal application, either a current plan for the collection and 43
recycling of all recyclable beverage containers of all beverages to be served at an event pursuant 44
to the permit, or an application for a waiver pursuant to G.S. 18B-902(h). 45
…." 46
SECTION 11.(e) G.S. 18B-1000 reads as rewritten: 47
"§ 18B-1000. Definitions concerning establishments. 48
The following requirements and definitions shall apply to this Chapter: 49
… 50
General Assembly Of North Carolina Session 2025
House Bill 198-Fifth Edition Page 11
(7a) Service business. – An establishment that is primarily engaged in the business 1
of providing services to the general public that require an occupational license 2
issued by the State. 3
(7a)(7b) Sports and entertainment venue. – Stadiums, ballparks, and other similar 4
facilities with a permanently constructed seating capacity of 3,000 or more 5
which are not located on the campus of a school, college, or university. 6
…." 7
SECTION 11.(f) G.S. 18B-1001 is amended by adding a new subdivision to read: 8
"(26) Service Business Permit. – A service business permit authorizes the permittee 9
to furnish complimentary malt beverages and unfortified wine to customers, 10
in conjunction with the provision of the service, for consumption on the 11
permittee's premises at no extra charge to the customer s. The permittee may 12
furnish alcoholic beverages to customers only in accordance with 13
G.S. 18B-603(i). The permittee may not serve more than two servings of 14
alcoholic beverages to any individual customer in any calendar day. For 15
purposes of this subdivision, a serving of malt beverage is 16 fluid ounces and 16
a serving of unfortified wine is 8 fluid ounces. Notwithstanding 17
G.S. 18B-1006(h), the permittee may purchase malt beverages and unfortified 18
wine only from a retailer. The permit may be issued to service businesses." 19
SECTION 11.(g) G.S. 18B-1006.1(a) reads as rewritten: 20
"(a) Holders of on-premises malt beverage permits, on-premises unfortified wine permits, 21
service business permits, on-premises fortified wine permits, and mixed beverages permits shall 22
separate, store, and provide for the collection for recycling of all recyclable beverage containers 23
of all beverages furnished or sold at retail on the premises. A permittee has satisfied the 24
requirements of this section if it implements a recycling program that meets the minimum 25
standards of the model recycling program developed by the Commission pursuant to 26
G.S. 130A-309.14(m). Failure to comply with the requirements of this section shall not be 27
grounds for revocation of a permit. A conviction for violation of this section shall not constitute 28
an alcoholic beverage offense within the meaning of G.S. 18B-900(a)(4)." 29
SECTION 11.(h) This section becomes effective September 1, 2026. 30
31
COUNTY MIXED BEVERAGE ELECTION AMENDMENT 32
SECTION 12.(a) G.S. 18B-600(b) reads as rewritten: 33
"(b) County Elections. – Any county may hold a malt beverage, unfortified wine, or ABC 34
store election. A county may hold a mixed beverage election only if (i) the county already 35
operates at least one county ABC store or a city located in the county operates at least one ABC 36
store, or (ii) a county election on ABC stores is to be held at the same time as the mixed beverage 37
election. Provided, if a county does not operate at least one A BC store, a mixed beverages 38
permittee may purchase liquor from an ABC store that is designated as a mixed beverage ABC 39
store operated by any local board operating in the same county as the permittee or any adjacent 40
county." 41
SECTION 12.(b) This section is retroactively effective October 1, 2024, and applies 42
to elections held on or after that date. 43
44
REVISE LAW GOVERNING DISPLAY OF SPIRITUOUS LIQUOR DISTILLED OR 45
PRODUCED IN NORTH CAROLINA 46
SECTION 13. G.S. 18B-800(e) reads as rewritten: 47
"(e) Each ABC store shall display spirits which are distilled or produced in North Carolina 48
in an area dedicated solely to North Carolina products.products or otherwise in the store so long 49
as the product is identified as a North Carolina product by a price tag or shelf tag." 50
51
General Assembly Of North Carolina Session 2025
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INCLUDE WHIPPED CREAM IN THE DEFINITION OF ALCOHOL CONSUMABLE 1
SECTION 14.(a) G.S. 18B-101(4a) reads as rewritten: 2
"(4a) "Alcohol consumable" means any manufactured and packaged ice cream, 3
whipped cream, ice pop, gum-based, or gelatin-based food product containing 4
at least one-half of one percent (0.5%) alcohol by volume." 5
SECTION 14.(b) This section becomes effective December 1, 2026, and applies to 6
offenses committed on or after that date. 7
8
PROVIDE MIXED BEVERAGES PERMITTEES WITH PRIOR NOTICE OF 9
APPORTIONED PRODUCT LOTTERY 10
SECTION 15.(a) G.S. 18B-800 is amended by adding a new subsection to read: 11
"(c6) Prior Notice of Lottery. – At least 30 days prior to the date it plans to conduct a lottery 12
or other random drawing to sell apportioned products to mixed beverage permittee customers of 13
an ABC store, the local board conducting the lottery or other random drawing shall provide each 14
mixed beverage permittee with written notice of the lottery or other random drawing by email or 15
first-class mail . For purposes of this subsection, the term "apportioned products " means 16
containers of spirituous liquor that are made available to local boards only by random drawings 17
conducted by the Commission." 18
SECTION 15.(b) This section becomes effective October 1, 2026, and applies to 19
lotteries or other random drawings to sell apportioned products held on or after that date. 20
21
CLARIFY WHEN SPECIAL ONE -TIME PERMITS ARE REQUIRED FOR 22
NONPROFIT ORGANIZATIONS 23
SECTION 16. G.S. 18B-1002(a) reads as rewritten: 24
"(a) Kinds of Permits. – In addition to the other permits authorized by this Chapter, the 25
Commission may issue permits for the following activities: 26
… 27
(2) A permit may be issued to a nonprofit organization to allow the retail sale of 28
malt beverages, unfortified wine, f ortified wine, or mixed beverages, or to 29
allow brown-bagging, at a single fund -raising event of that organization. A 30
permit for this purpose shall not be issued for the sale of any kind of alcoholic 31
beverage in a jurisdiction where the sale of that alcohol ic beverage is not 32
lawful. A permit is not required under this subdivision for an event conducted 33
by a nonprofit organization that meets any of the following: 34
a. The event is held on premises permitted under G.S. 18B-1001(1), 35
18B-1001(2), 18B-1001(3), 18B-1001(4), 18B-1001(5), 18B-1001(6), 36
or 18B-1001(10) and the wine, malt beverages, and spirituous liquor 37
sold at the event are sold by the retail permittee from the retail 38
permittee's inventory. 39
b. The event is held on a premises that does not hold a permit under this 40
Chapter and the wine, malt beverages, and spirituous liquor sold or 41
served at the event is provided by one of the following in a manner 42
allowed under that permit: 43
1. A mobile bar services permit tee pursuant to 44
G.S. 18B-1001(12a). 45
2. A mixed beverage catering permit tee pursuant to 46
G.S. 18B-1001(12). 47
3. A malt beverage special event permittee pursuant to 48
G.S. 18B-1114.5. 49
4. A winery special event permittee pursuant to G.S. 18B-1114.1. 50
General Assembly Of North Carolina Session 2025
House Bill 198-Fifth Edition Page 13
5. A spirituous liquor special event permittee pursuant to 1
G.S. 18B-1114.7. 2
… 3
(5) A permit may be issued to a unit of local government, or to a nonprofit 4
organization or a political organization to serve wine, malt beverages, and 5
spirituous liquor at a ticket ed an event held to allow the unit of local 6
government or organization to raise funds. A permit is not required under this 7
subdivision for an event conducted by a unit of local government, a nonprofit 8
organization, or a political organization that meets any of the following: 9
a. The event is held on premises permitted under G.S. 18B-1001(1), 10
18B-1001(2), 18B-1001(3), 18B-1001(4), 18B-1001(5), 18B-1001(6), 11
or 18B-1001(10) and the wine, malt beverages, and spirituous liquor 12
sold at the event are sold by the retail permittee from the retail 13
permittee's inventory. 14
b. The event is held on a premises that does not hold a permit under this 15
Chapter and the wine, malt beverages, and spirituous liquor sold or 16
served at the event is provi ded by one of the following in a manner 17
allowed under that permit: 18
1. A mobile bar services permit tee pursuant to 19
G.S. 18B-1001(12a). 20
2. A mixed beverage catering permit tee pursuant to 21
G.S. 18B-1001(12). 22
3. A malt beverage special event permittee pursuant to 23
G.S. 18B-1114.5. 24
4. A winery special event permittee pursuant to G.S. 18B-1114.1. 25
5. A spirituous liquor special event permittee pursuant to 26
G.S. 18B-1114.7. 27
For purposes of this subdivision "nonprofit organization" means an 28
organization that is exempt from taxation under Section 501(c)(3), 501(c)(4), 29
501(c)(6), 501(c)(8), 501(c)(10), 501(c)(19), or 501(d) of the Internal 30
Revenue Code or is exempt under similar provisions of the General Statutes 31
as a bon a fide nonprofit charitable, civic, religious, fraternal, patriotic, or 32
veterans' organization or as a nonprofit volunteer fire department, or as a 33
nonprofit volunteer rescue squad or a bona fide homeowners' or property 34
owners' association. For purposes of this subdivision "political organization" 35
means an organization covered by the provisions of G.S. 163-96(a)(1) or (2) 36
or a campaign organization established by or for a person who is a candidate 37
who has filed a notice of candidacy, paid the filing fees or filed the required 38
petition, and been certified as a candidate. The issuance of this permit shall 39
also allow the use for culinary purposes of spirituous liquor lawfully 40
purchased for use in mixed beverages. The issuance of this permit shall also 41
allow a n onprofit organization to offer alcoholic beverages in the 42
manufacturer's original closed container as a prize in a raffle or sell alcoholic 43
beverages in the manufacturer's original closed container at auction at the 44
ticketed event to allow the nonprofit organization to raise funds. 45
…." 46
47
SPECIAL MULTIPLE EVENT PERMIT 48
SECTION 17.(a) Article 10 of Chapter 18B of the General Statutes is amended by 49
adding a new section to read: 50
"§ 18B-1002.2. Special multiple event permit. 51
General Assembly Of North Carolina Session 2025
Page 14 House Bill 198-Fifth Edition
(a) Definitions. – The following definitions apply to this section: 1
(1) Nonprofit organization. – An organization that is exempt from taxation under 2
section 501(c)(3), 501(c)(4), 501(c)(6), 501(c)(8), 501(c)(10), 501(c)(19), or 3
501(d) of the Internal Revenue Code or is exempt under similar provisions of 4
the General Statutes as a bona fide nonprofit charitable, civic, religious, 5
fraternal, patriotic, or veterans ' organization or as a nonprofit volunteer fire 6
department, or as a nonprofit volunteer rescue squad or a bona fide 7
homeowners' or property owners' association. 8
(2) Political organization. – An organization covered by the provisions of 9
G.S. 163-96(a)(1) or (2) or a campaign organization established by or for a 10
person who is a candidate who has filed a notice of candidacy, paid the filing 11
fees or filed the required petition, and been certified as a candidate. 12
(b) Permit Authorized. – A special multiple event permit may be issued to an individual 13
person representing a nonprofit organization or a political organization to allow the following at 14
multiple fund-raising events of that organization: 15
(1) The retail sale of malt beverages, unfortified wine, fortified wine, and mixed 16
beverages. 17
(2) Brown-bagging. 18
(3) The serving of malt beverages, unfortified wine, fortified win e, and mixed 19
beverages at an event. 20
(4) Offering alcoholic beverages in the manufacturer 's original closed container 21
as a prize in a raffle at an event. 22
(5) Selling alcoholic beverages in the manufacturer's original closed container at 23
auction at an event. 24
The permit holder must be present at any fund-raising event conducted pursuant to a special 25
multiple event permit. 26
(c) Permit Holder Limitations. – Not more than two persons representing a single 27
nonprofit organization or political organization may obtain permits pursuant to this section . No 28
person may hold a special multiple event permit as a representative of more than one nonprofit 29
organization or political organization. 30
(d) Notice of Events. – The holder of the permit shall provide written notice of a 31
fund-raising event to the Commission and to the governing body of the city or county in which 32
the fund-raising event will be located at least 30 days prior to the event. The notice shall include 33
the date, time, and location of the event and the types of alcoholic beverages to be sold or served 34
at the event . If the event is occurring on premises located partially or entirely within the 35
boundaries of a social district and is scheduled to occur during hours when alcoholic beverages 36
may be consumed in the social district, the holder of the permit shall include that information in 37
the notice. 38
To be considered by the Commission, t he local governing body must file any objection in 39
writing with the Commission not less than 15 days prior to the event and must state the facts 40
upon which the objection is based. 41
The Commission shall have the sole power, in its discretion, to determine suitability of the 42
location at which the permit will be used to conduct a fund-raising event. 43
(e) Records. – The permit holder shall maintain for a period of at least one year a record 44
of each fund-raising event conducted. The record shall include the date of the fund-raising event, 45
the time of the fund-raising event, an identification of the venue at which the fund-raising event 46
was held, and the types of alcoholic beverages sold or served at the event. The permit holder shall 47
allow the Commission to inspect those records at any time. 48
(f) General Limitations. – A permit issued pursuant to this section shall not allow any of 49
the following: 50
General Assembly Of North Carolina Session 2025
House Bill 198-Fifth Edition Page 15
(1) The sale of any kind of alcoholic beverage in a jurisdiction where the sale of 1
that alcoholic beverage is not lawful. 2
(2) The sale or consumption of alcoholic beverages outside the h ours authorized 3
in G.S. 18B-1004. 4
(g) A permit is not required under this section for a n event conducted by a nonprofit 5
organization or political organization that meets any of the following: 6
(1) The event is held on premises permitted under G.S. 18B-1001(1), 7
18B-1001(2), 18B -1001(3), 18B -1001(4), 18B -1001(5), 18B -1001(6), or 8
18B-1001(10) and the wine, malt beverages, and spirituous liquor sold at the 9
event are sold by the retail permittee from the retail permittee's inventory. 10
(2) The event is held on a premises that does not hold a permit under this Chapter 11
and the wine, malt beverages, and spirituous liquor sold or served at the event 12
is provided by one of the following in a manner allowed under that permit: 13
a. A mobile bar services permittee pursuant to G.S. 18B-1001(12a). 14
b. A mixed beverage catering permittee pursuant to G.S. 18B-1001(12). 15
c. A malt beverage special event permittee pursuant to G.S. 18B-1114.5. 16
d. A winery special event permittee pursuant to G.S. 18B-1114.1. 17
e. A spirituous liquor special event permittee pursuant to 18
G.S. 18B-1114.7." 19
SECTION 17.(b) G.S. 18B-125 reads as rewritten: 20
"§ 18B-125. Exceptions. 21
This Article does not create a claim for relief against any of the following: 22
(1) One who holds only a brown bagging permit, a special occasions permit, or a 23
limited special occasions permit;permit. 24
(2) One who holds only a special one -time permit under G.S. 25
18B-1002;G.S. 18B-1002. 26
(2a) One who holds only a special multiple event permit under G.S. 18B-1002.2. 27
(3) One who holds only permits listed in G.S. 18B-1100;G.S. 18B-1100. 28
(4) One who holds any combination of the permits listed in this section." 29
SECTION 17.(c) G.S. 18B-300.1(j) reads as rewritten: 30
"(j) Interaction with Other Permits. – The Commission shal l issue permits for special 31
events occurring partially or entirely within the boundaries of a social district as follows: 32
(1) The Commission may issue special one -time permits pursuant to 33
G.S. 18B-1002(a)(2) or (a)(5) for events occurring on premises locat ed 34
partially or entirely within the boundaries of a social district. If the event is 35
scheduled to occur during hours when alcoholic beverages may be consumed 36
in the social district, the event permittee shall, in addition to obtaining such 37
signed law enforc ement notification as may be required under the 38
Commission's rules, include in such notification a statement that the event is 39
to occur in a social district during days and hours designated for consumption 40
of alcoholic beverages. 41
(2) A permittee holding a winery special event permit, malt beverage special 42
event permit, or spirituous liquor special event permit pursuant to 43
G.S. 18B-1114.1, 18B -1114.5, and 18B -1114.7, respectively, may sell and 44
serve products at special events taking place in a social district. 45
(3) A permittee holding a mixed beverages catering permit pursuant to 46
G.S. 18B-1001(12) may serve spirituous liquor to guests at events taking place 47
in a social district. 48
(4) A permittee holding a special multiple event permit pursuant to 49
G.S. 18B-1002.2 may hold an event in a social district." 50
SECTION 17.(d) G.S. 18B-603(f) reads as rewritten: 51
General Assembly Of North Carolina Session 2025
Page 16 House Bill 198-Fifth Edition
"(f) Permits Not Dependent on Elections. – The Commission may issue the following 1
kinds of permits without approval at an election: 2
… 3
(11) Special multiple event permits issued under G.S. 18B-1002.2." 4
SECTION 17.(e) G.S. 18B-900(a) reads as rewritten: 5
"(a) Requirements. – To be eligible to receive and to hold an ABC permit, a person must 6
satisfy all of the following requirements: 7
… 8
(8) Be current in filing all applicable tax returns to the State and in payment of all 9
taxes, interest, and penalties that are collectible under G.S. 105-241.22. This 10
subdivision does not apply to the following ABC permits: 11
a. Special occasion permit under G.S. 18B-1001(8). 12
b. Limited special occasion permit under G.S. 18B-1001(9). 13
c. Special one-time permit under G.S. 18B-1002. 14
d. Salesman permit under G.S. 18B-1111. 15
e. Special multiple event permit under G.S. 18B-1002.2. 16
…." 17
SECTION 17.(f) G.S. 18B-901(b) reads as rewritten: 18
"(b) Notice to Local Government. – Before issuing a retail ABC permit, other than a: 19
(1) Special occasion permit under G.S. 18B-1001(8); 20
(2) Limited special occasion permit under G.S. 18B-1001(9); 21
(3) Temporary permit under G.S. 18B-905; or 22
(4) Special one-time permit under G.S. 18B-1002 23
permit for an establishment, the Commission shall give notice of the permit application to the 24
governing body of the city in which the establishment is located. If the establishment is not inside 25
a city, the Commission shall give notice to the governing body of the county. The Commission 26
shall allow the local governing body 15 days from the time the notice was mailed or delivered to 27
file written objection to the issuance of the permit. To be considered by the Commission, the 28
objection shall state the facts upon which it is based. 29
This subsection shall not apply to the following permits: 30
(1) A special occasion permit under G.S. 18B-1001(8). 31
(2) A limited special occasion permit under G.S. 18B-1001(9). 32
(3) A temporary permit under G.S. 18B-905. 33
(4) A special one-time permit under G.S. 18B-1002. 34
(5) A special multiple event permit under G.S. 18B-1002.2." 35
SECTION 17.(g) G.S. 18B-902(d) reads as rewritten: 36
"(d) Fees. – An application for an ABC permit shall be accompanied by payment o f the 37
following application fee: 38
… 39
(58) Special multiple event permit – $200.00." 40
41
REVISE REQUIREMENTS FOR RECEIVING A TEMPORARY PERMIT 42
SECTION 18.(a) G.S. 18B-905 reads as rewritten: 43
"§ 18B-905. Temporary permits. 44
When an application has been received in proper form, with the required application fee, the 45
Commission may issue a temporary permit for any of the activities for which permits are 46
authorized under G.S. 18B-1001 and 18B-1100. If the person has applied to the applicable local 47
government for the Inspection/Zoning Compliance and Local Government Opinion forms 48
required for the application but has not received approvals or denials from the local government, 49
the applicant may submit a sworn affidavit with the application stating that the person has applied 50
to the local government for the Inspection/Zoning Compliance and Local Government Opinion 51
General Assembly Of North Carolina Session 2025
House Bill 198-Fifth Edition Page 17
approvals in lieu of those approvals. The person shall send the local government approvals or 1
denials to the Commission within three business days of receiving the approvals or denials. A 2
temporary permit may be revoked summarily by the Commission without complying with the 3
provisions of Chapter 150B. Revocation of a temporary permit or withdrawal by the Commission 4
of a pending application by a permittee possess ing a temporary permit shall be effective upon 5
service of the notice of revocation or withdrawal upon the permittee at either the permittee's 6
residence or the address given for the business in the permit application or upon the expiration 7
of five business days after the notice of the revocation or withdrawal has been mailed to the 8
permittee at either the permittee's residence or the address given for the business in the permit 9
application. No further notice shall be required." 10
SECTION 18.(b) This section b ecomes effective October 1, 2026, and applies to 11
applications received on or after that date. 12
13
REVISE LAW REGULATING THE SALE AND DELIVERY OF MORE THAN ONE 14
DRINK AT A TIME TO A SINGLE PATRON 15
SECTION 19.(a) G.S. 18B-1010(a) reads as rewritten: 16
"(a) Except as otherwise provided in this section, the holder of an on -premises malt 17
beverage permit, on -premises unfortified wine permit, on -premises fortified wine permit, or 18
mixed beverages permit issued under G.S. 18B-1001 permit, or a permittee otherwise authorized 19
to sell malt beverages, unfortified wine, fortified wine, or mixed beverages for on -premises 20
consumption, may sell and deliver not more than two alcoholic beverage drinks at one time to a 21
single patron with the following limitations:patron. 22
(1) Not more than two alcoholic beverage drinks at one time if the alcoholic 23
beverage drinks are any of the following: 24
a. A malt beverage. 25
b. Unfortified wine. 26
c. Fortified wine. 27
(2) Not more than one alcoholic beverage at one time if an alcoholic beverage 28
drink is a mixed beverage or contains spirituous liquor." 29
SECTION 19.(b) G.S. 18B-1001(10) reads as rewritten: 30
"(10) Mixed Beverages Permit. – A mixed beverages permit authorizes the retail 31
sale of mixed beverages for consumption on the premises. The permit also 32
authorizes a mixed beverages permittee to obtain an antique spirituous liquor 33
permit under subdivision (20) of this section and to use for culinary purposes 34
spirituous liquor lawfully purchased for use in mixed beverages. The permit 35
may be issued for any of the following: 36
a. Restaurants. 37
b. Hotels. 38
c. Private clubs. 39
d. Convention centers. 40
e. Community theatres. 41
f. Nonprofit organizations. 42
g. Political organizations. 43
h. Sports and entertainment venues. 44
i. Bars. 45
j. The holder of a distillery permit authorized under G.S. 18B-1105. 46
k. Breweries. 47
l. Wineries. 48
Additionally, a mixed beverages permit authorizes a permittee that is a 49
restaurant, hotel, private club, bar, brewery, winery, or the holder of a 50
distillery permit to sell at retail mixed beverages for consumption off the 51
General Assembly Of North Carolina Session 2025
Page 18 House Bill 198-Fifth Edition
premises, including delivery by the permittee or a delivery service permittee. 1
A mixed beverage sold for consumption off the premises must be sold with 2
food and shall be (i) a premixed cocktail in the manufacturer's original closed 3
container, or (ii) packaged in a container with a secure lid or cap, and in a 4
manner designed to prevent consumption without removal of the lid or cap. 5
The container shall be no greater than 24 fluid ounces. In accordance with 6
G.S. 20-138.7, the transportation of a mixed beverage in a motor vehicle shall 7
not be unlawful if the container is an unopened manufacturer's original 8
container or is transported in a locked container, in the trunk, or in the area 9
behind the last upright seat in a motor vehicle not equipp ed with a trunk. 10
Notwithstanding G.S. 18B-1010, the sale of more than one mixed beverage 11
drink two mixed beverage drinks at one time shall not be unlawful if the mixed 12
beverage drinks are sold for delivery or consumption off the permittee's 13
premises. No mixed beverage ordered for off-premises consumption shall be 14
provided to any person other than the purchaser of the mixed beverage, except 15
that in the case of delivery, the delivery service permittee through its 16
employees or agents may provide the mixed be verage to a person other than 17
the purchaser if the permittee or the permittee's employees or agents verify 18
that the person is over 21 years of age using age verification software requiring 19
the recipient to provide a form of photographic identification auth orized in 20
G.S. 18B-302(d)(1)." 21
SECTION 19.(c) This section becomes effective October 1, 2026, and applies to 22
alcoholic beverages sold on or after that date. 23
24
ALLOW THE SALE OF MULTIPLE ALCOHOLIC BEVERAGE DRINKS TO A 25
SINGLE PATRON IN A VESSEL 26
SECTION 20.(a) G.S. 18B-1010 is amended by adding a new subsection to read: 27
"(c) The holder of an on -premises malt beverage permit, on -premises unfortified wine 28
permit, on-premises fortified wine permit, or mixed beverages permit , or a permittee otherwise 29
authorized t o sell malt beverages, unfortified wine, fortified wine, or mixed beverages for 30
on-premises consumption, may sell and deliver up to six alcoholic beverage drinks at one time 31
to a single p atron for on -premises consumption if the alcoholic beverage drinks are in the 32
manufacturer's original unopened container and delivered to the patron in a single vessel." 33
SECTION 20.(b) The Revisor of Statutes shall replace all references to 34
"G.S. 18B-1010" with "G.S. 18B-1010(a)" in G.S. 18B-300.1(f), 18B-1001, and 18B-1001.5(g). 35
36
MODIFY REQUIREMENTS FOR TOURISM ABC ESTABLISHMENTS 37
SECTION 21. G.S. 18B-101(14a) reads as rewritten: 38
"(14a) "Tourism ABC establishment" means a restaurant or hotel that is in a county 39
in which the on-premises or off-premises sale of malt beverages or unfortified 40
wine is authorized in at least one city and that meets both either of the 41
following requirements: 42
a. Is located on property, a property line of which is located within 1.5 43
miles 2 miles of the end of an entrance or exit ramp of a junction on a 44
national scenic parkway designed to attract local, State, national, and 45
international tourists between the State line and Milepost 469, 46
provided that the Eastern Band of Cherokee Indians tribal alcoholic 47
beverage co ntrol commission established under G.S. 18B-112 shall 48
have exclusive authority to issue permits pursuant to this subdivision 49
between Milepost 460 and the southern terminus of the national scenic 50
General Assembly Of North Carolina Session 2025
House Bill 198-Fifth Edition Page 19
byway at Milepost 469 for any restaurant or hotel that is loc ated 1
wholly on Indian Country lands. 2
b. Is located in a county in which the on-premises or off-premises sale of 3
malt beverages or unfortified wine is authorized in at least one city.on 4
property, a property line of which is located within 3 miles of the State 5
line, that is adjacent to a North Carolina scenic byway." 6
7
CLEANING OF DRAFT LINES 8
SECTION 22.(a) G.S. 18B-1116(a)(4) reads as rewritten: 9
"(4) Provide or offer to provide draft line cleaning services (i) to an alcoholic 10
beverage retailer unless the retailer pays the fair market value for such 11
services.at a different cost per line than to another alcoholic beverage retailer 12
or (ii) to some alcoholic beverage retailers but not others . Nothing in this 13
subdivision shall require any manufacturer, bottler, or wholesaler of any 14
alcoholic beverages, or any officer, director, or affiliate thereof, to provide or 15
offer to provide draft line cleaning services." 16
SECTION 22.(b) G.S. 18B-1003 is amended by adding a new subsection to read: 17
"(e) Draft Line Cleaning. – Any permittee that provides draft alcoholic beverages shall 18
ensure that draft lines are cleaned on a regular basis and shall mai ntain a record of each date of 19
cleaning and the person or entity that performed the cleaning for at least 12 months." 20
SECTION 22.(c) This section becomes effective October 1, 2026. 21
22
ALLOW ABC COMMISSION TO REQUIRE REAL-TIME REPORTING 23
SECTION 23. G.S. 18B-205 reads as rewritten: 24
"§ 18B-205. Accounts and reports required. 25
(a) Accounts and Reports. – The Commission may require local boards to submit 26
quarterly mixed beverage reports, quarterly and annual audits, monthly sales records, and any 27
other reports or audits relating to the operations of the local ABC systems. 28
(b) Accounting System. – The Commission may require local boar ds to use generally 29
accepted accounting standards and a chart of accounts prescribed by the Commission in the 30
operation of ABC stores, and to record all information necessary and useful to the Commission 31
in auditing the operation of ABC systems and administering the ABC law. 32
(c) Audits. – The Commission may audit the operation of any local ABC store or board, 33
and the books of those stores and boards shall remain open to the Commission for inspection. 34
(d) Real-Time Reporting. – The Commission may require loc al boards to submit daily, 35
weekly, and monthly sales data to a designated vendor in real time. A local board may satisfy 36
this requirement by connecting or integrating the point-of-sale system used in its ABC stores 37
with the designated vendor." 38
39
ALLOW CERTA IN ABC PERMITTEES TO PREPARE MIXED BEVERAGES FOR 40
CONSUMER TASTINGS IN ABC STORES 41
SECTION 24. G.S. 18B-1114.7(c) reads as rewritten: 42
"(c) Additional Limitations on Tastings in ABC Stores. – Consumer tastings conducted in 43
an ABC store shall have the following additional limitations: 44
… 45
(4) Notwithstanding subdivision (3) of subsection (b) of this section, the total 46
amount of the tasting samples offered to and consumed by each consumer at 47
a consumer tasting event shall not exceed one-half ounce of spirituous liquor 48
in any calendar day.day, including any spirituous liquor in mixed beverages 49
offered for consumer tasting pursuant to subdivision (4a) of this subsection. 50
General Assembly Of North Carolina Session 2025
Page 20 House Bill 198-Fifth Edition
(4a) The permit holder conducting the event may prepare and offer for tasting 1
mixed beverages containing the spirituous liquor offered for tasting at the 2
ABC store. A mixed beverage offered for tasting pursuant to this subdivision 3
shall contain no more than 0.25 ounces of spirituous liquor. 4
…." 5
6
MODIFY THE PROHIBITIONS ON ABC PERMITTEES EMPLOYING CERTAIN 7
INDIVIDUALS 8
SECTION 25.(a) G.S. 18B-1003(c) reads as rewritten: 9
"(c) Certain Employees Prohibited. – A permittee shall not knowingly employ in the sale 10
or distribution of alcoholic beverages any person who has been: 11
(1) Convicted of a felony within three years; 12
(2) Convicted of a felony more than three years previously and has not had his 13
the person's citizenship restored; 14
(3) Convicted of an alcoholic beverage offense within two years; or 15
(4) Convicted of a misdemeanor controlled substances offense within two years; 16
(5) A past permit holder under Chapter 18B of the General Statutes whose permit 17
had been revoked within the last 18 months and who had been the permit 18
holder at the location where the person would be employed. 19
For purposes of this subsection, "conviction" has the same meaning as in G.S. 18B-900(b). 20
To avoid undue hardship, the Commission may, in its discretion, exempt persons on a 21
case-by-case basis from this subsection. If the Commission has notified a permittee of a potential 22
violation of this subsection and the permittee claims undue hardship within 30 days of receipt of 23
the notification , the permittee may conti nue to employ the person in question until the final 24
determination of undue hardship." 25
SECTION 25.(b) The ABC Commission shall adopt rules to amend its rules 26
consistent with this section. 27
SECTION 25.(c) This section is effective when it becomes law and applies to 28
individuals employed by ABC permittees and undue hardship proceedings on or after that date. 29
30
ALLOW OFF-PREMISES WINE TASTINGS 31
SECTION 26. G.S. 18B-1001, as amended by Section 9 of this act, reads as 32
rewritten: 33
"§ 18B-1001. Kinds of ABC permits; places eligible. 34
When the issuance of the permit is lawful in the jurisdiction in which the premises are located, 35
the Commission may issue the following kinds of permits: 36
… 37
(3) On-Premises Unfortified Wine Permit. – An on -premises unfortified wine 38
permit authorizes (i) the retail sale of unfortified wine for consumption on the 39
premises, either alone or mixed with other beverages, (ii) the retail sale of 40
unfortified wine in the manufacturer's original container for consumption off 41
the premises, and (iii) the retail sale of unfortified wine dispensed from a tap 42
connected to a pressurized co ntainer utilizing carbon dioxide or similar gas 43
into a cleaned and sanitized container that is filled or refilled and sealed for 44
consumption off the premises and that identifies the permittee and the date the 45
container was filled or refilled. refilled, and (iv) wine tastings conducted at a 46
consumer's private residence or a location not holding a permit under this 47
section where consumers are educated about selection, serving, and storing of 48
wine by the permittee or the permittee's employee or agent utilizing wine from 49
the permit holder 's inventory and consumers may purchase wine for future 50
delivery or pick -up at the permittee 's permitted premises . The permit also 51
General Assembly Of North Carolina Session 2025
House Bill 198-Fifth Edition Page 21
authorizes the permittee to transfer unfortified wine, not more than four times 1
per calendar year, to another on -premises unfortified wine permittee that is 2
under common ownership or control as the transferor. Except as authorized 3
by this subdivision, transfers of wine by on -premises unfortified wine 4
permittees, purchases o f wine by a retail permittee from another retail 5
permittee for the purpose of resale, and sale of wine by a retail permittee to 6
another retail permittee for the purpose of resale are unlawful. In addition, a 7
particular brand of wine may be transferred only if both the transferor and 8
transferee are located within the territory designated between the winery and 9
the wholesaler on file with the Commission. Prior to or contemporaneous with 10
any such transfer, the transferor shall notify each wholesaler who distri butes 11
the transferred product of the transfer. The notice shall be in writing or 12
verifiable electronic format and shall identify the transferor and transferee, the 13
date of the transfer, quantity, and items transferred. The holder of the permit 14
is authorize d to ship unfortified wine in closed containers to individual 15
purchasers inside and outside the State. Orders received by a winery by 16
telephone, Internet, mail, facsimile, or other off -premises means of 17
communication shall be shipped pursuant to a wine shi pper permit and not 18
pursuant to this subdivision. The permit may be issued for any of the 19
following: 20
a. Restaurants. 21
b. Hotels. 22
c. Eating establishments. 23
d. Private clubs. 24
e. Convention centers. 25
f. Cooking schools. 26
g. Community theatres. 27
h. Wineries. 28
i. Wine producers. 29
j. Retail businesses. 30
k. Sports and entertainment venues. 31
l. Bars. 32
m. The holder of a distillery permit authorized under G.S. 18B-1105. 33
n. Breweries. 34
Additionally, an on -premises unfortified wine permit authorizes a permittee 35
that is a rest aurant, eating establishment, hotel, private club, bar, brewery, 36
winery, or wine producer to sell at retail single-serving unfortified wine drinks 37
for consumption off the premises, including delivery by the permittee or a 38
delivery service permittee. Single -serving unfortified wine drinks sold for 39
consumption off the premises must be sold with food and shall be packaged 40
in a container with a secure lid or cap and in a manner designed to prevent 41
consumption without removal of the lid or cap. The container sha ll be no 42
greater than 24 fluid ounces. In accordance with G.S. 20-138.7, the 43
transportation of single -serving unfortified wine drinks in a motor vehicle 44
shall not be unlawful if the container is an unopened manufacturer's original 45
container or is transport ed in a locked container, in the trunk, or in the area 46
behind the last upright seat in a motor vehicle not equipped with a trunk. 47
Notwithstanding G.S. 18B-1010, the sale of more than two single -serving 48
unfortified wine drinks at one time shall not be unlawful if the single-serving 49
unfortified wine drinks are sold for delivery or consumption off the permittee's 50
premises. No single -serving unfortified wine by the drink ordered for 51
General Assembly Of North Carolina Session 2025
Page 22 House Bill 198-Fifth Edition
off-premises consumption shall be provided to any person other than the 1
purchaser of the single-serving unfortified wine drink, except that in the case 2
of delivery, the delivery service permittee through its employees or agents 3
may provide the single-serving unfortified wine drink to a person other than 4
the purchaser if the permittee or the permittee's employees or agents verify 5
that the person is over 21 years of age using age verification software requiring 6
the recipient to provide a form of photographic identification authorized in 7
G.S. 18B-302(d)(1). 8
… 9
(16) Wine Shop Permit. – A wine shop permit authorizes (i) the retail sale of malt 10
beverages, unfortified wine, and fortified wine in the manufacturer's original 11
container for consumption off the premises, (ii) the retail sale of malt 12
beverages or unfortified wine dispensed from a tap connected to a pressurized 13
container utilizing carbon dioxide or similar gas in a cleaned and sanitized 14
container that is filled or refilled and sealed for consumption off the premises 15
and that identifies the permittee and the date the container was fill ed or 16
refilled, and (iii) wine tastings on the premises conducted and supervised by 17
the permittee in accordance with subdivision (15) of this section. section, and 18
(iv) wine tastings conducted at a consumer 's private residence or a location 19
not holding a permit under this section where consumers are educated about 20
selection, serving, and storing of wine by the permittee or the permittee 's 21
employee or agent utilizing wine from the permit holder 's inventory and 22
consumers may purchase wine for future delivery or pick-up at the permittee's 23
permitted premises. It also authorizes the holder of the permit to ship malt 24
beverages, unfortified wine, and fortified wine in closed containers to 25
individual purchasers inside and outside the State. The permit may be issued 26
for retail businesses whose primary purpose is selling malt beverages and wine 27
for consumption off the premises and regularly and customarily educating 28
consumers through tastings, classes, and seminars about the selection, serving, 29
and storing of wine. The holder of the permit is authorized to sell unfortified 30
wine for consumption on the premises, provided that, except as otherwise 31
provided in this subdivision, the sale of wine for consumption on the premises 32
does not exceed forty percent (40%) of the establishment's total sales for any 33
30-day period. The holder of a wine -tasting permit not engaged in the 34
preparation or sale of food on the premises is not subject to Part 6 of Article 8 35
of Chapter 130A of the General Statutes. A holder of a wine shop permit shall 36
also be eligible to hold a malt beverage shop permit under 37
G.S. 18B-1001(16a). If the holder of a wine shop permit also holds a malt 38
beverage shop permit, then the sales of alcoholic beverages for consumption 39
on the premises may not exceed forty perc ent (40%) of the establishment's 40
total sales for any 30-day period. 41
…." 42
43
ON-PREMISES SALES AT WINERIES AND BREWERIES 44
SECTION 27.(a) G.S. 18B-1001, as amended by Section 26 of this act, reads as 45
rewritten: 46
"§ 18B-1001. Kinds of ABC permits; places eligible. 47
When the issuance of the permit is lawful in the jurisdiction in which the premises are located, 48
the Commission may issue the following kinds of permits: 49
(1) On-Premises Malt Beverage Permit. – An on-premises malt beverage permit 50
authorizes (i) the reta il sale of malt beverages for consumption on the 51
General Assembly Of North Carolina Session 2025
House Bill 198-Fifth Edition Page 23
premises, either alone or mixed with other beverages, (ii) the retail sale of malt 1
beverages in the manufacturer's original container for consumption off the 2
premises, and (iii) the retail sale of malt beverages in a cleaned and sanitized 3
container that is filled or refilled and sealed for consumption off the premises 4
and that identifies the permittee and the date the container was filled or 5
refilled. The permit also authorizes the permittee to transfer malt beverages, 6
not more than four times per calendar year, to another on -premises malt 7
beverage permittee that is under common ownership or control as the 8
transferor. Except as authorized by this subdivision, transfers of malt 9
beverages by on -premises malt bev erage permittees, purchases of malt 10
beverages by a retail permittee from another retail permittee for the purpose 11
of resale, and sales of malt beverages by a retail permittee to another retail 12
permittee for the purpose of resale are unlawful. In addition, a particular brand 13
of malt beverages may be transferred only if both the transferor and transferee 14
are located within the territory designated between the brewery and the 15
wholesaler on file with the Commission. Prior to or contemporaneous with 16
any such transfer, the transferor shall notify each wholesaler who distributes 17
the transferred product of the transfer. The notice shall be in writing or 18
verifiable electronic format and shall identify the transferor and transferee, the 19
date of the transfer, quantity, and items transferred. It also authorizes the 20
holder of the permit to ship malt beverages in closed containers to individual 21
purchasers inside and outside the State. The permit may be issued for any of 22
the following: 23
a. Restaurants. 24
b. Hotels. 25
c. Eating establishments. 26
d. Food businesses. 27
e. Retail businesses. 28
f. Private clubs. 29
g. Convention centers. 30
h. Community theatres. 31
i. Breweries as authorized by subdivisions (7)(7), (7b), and (8) of 32
G.S. 18B-1104(a). 33
j. Sports and entertainment venues. 34
k. Bars. 35
l. The holder of a distillery permit authorized under G.S. 18B-1105. 36
m. Wineries as authorized by G.S. 18B-1101(5a) and G.S. 18B-1102(5a). 37
… 38
(3) On-Premises Unfortified Wine Permit. – An on -premises unfortified wine 39
permit authorizes (i) the retail sale of unfortified wine for consumption on the 40
premises, either alone or mixed with other beverages, (ii) the retail sale of 41
unfortified wine in the manufacturer's original container for consumption off 42
the premises, (iii) the retail sale of unfortified wine dispen sed from a tap 43
connected to a pressurized container utilizing carbon dioxide or similar gas 44
into a cleaned and sanitized container that is filled or refilled and sealed for 45
consumption off the premises and that identifies the permittee and the date the 46
container was filled or refilled, and (iv) wine tastings conducted at a 47
consumer's private residence or a location not holding a permit under this 48
section where consumers are educated about selection, serving, and storing of 49
wine by the permittee or the permittee's employee or agent utilizing wine from 50
the permit holder's inventory and consumers may purchase wine for future 51
General Assembly Of North Carolina Session 2025
Page 24 House Bill 198-Fifth Edition
delivery or pick -up at the permittee's permitted premises. The permit also 1
authorizes the permittee to transfer unfortified wine, not more than four times 2
per calendar year, to another on -premises unfortified wine permittee that is 3
under common ownership or control as the transferor. Except as authorized 4
by this subdivision, transfers of wine by on -premises unfortified wine 5
permittees, purch ases of wine by a retail permittee from another retail 6
permittee for the purpose of resale, and sale of wine by a retail permittee to 7
another retail permittee for the purpose of resale are unlawful. In addition, a 8
particular brand of wine may be transferre d only if both the transferor and 9
transferee are located within the territory designated between the winery and 10
the wholesaler on file with the Commission. Prior to or contemporaneous with 11
any such transfer, the transferor shall notify each wholesaler who distributes 12
the transferred product of the transfer. The notice shall be in writing or 13
verifiable electronic format and shall identify the transferor and transferee, the 14
date of the transfer, quantity, and items transferred. The holder of the permit 15
is aut horized to ship unfortified wine in closed containers to individual 16
purchasers inside and outside the State. Orders received by a winery by 17
telephone, Internet, mail, facsimile, or other off -premises means of 18
communication shall be shipped pursuant to a wi ne shipper permit and not 19
pursuant to this subdivision. The permit may be issued for any of the 20
following: 21
a. Restaurants. 22
b. Hotels. 23
c. Eating establishments. 24
d. Private clubs. 25
e. Convention centers. 26
f. Cooking schools. 27
g. Community theatres. 28
h. Wineries. 29
i. Wine producers. 30
j. Retail businesses. 31
k. Sports and entertainment venues. 32
l. Bars. 33
m. The holder of a distillery permit authorized under G.S. 18B-1105. 34
n. Breweries.Breweries as authorized by subdivisions (7) and (7c) of 35
G.S. 18B-1104(a). 36
Additionally, an on-premises unfortified wine permit authorizes a permittee 37
that is a restaurant, eating establishment, hotel, private club, bar, brewery, 38
winery, or wine producer to sell at retail single-serving unfortified wine drinks 39
for consumption off the premises , including delivery by the permittee or a 40
delivery service permittee. Single -serving unfortified wine drinks sold for 41
consumption off the premises must be sold with food and shall be packaged 42
in a container with a secure lid or cap and in a manner designe d to prevent 43
consumption without removal of the lid or cap. The container shall be no 44
greater than 24 fluid ounces. In accordance with G.S. 20-138.7, the 45
transportation of single -serving unfortified wine drinks in a motor vehicle 46
shall not be unlawful if t he container is an unopened manufacturer's original 47
container or is transported in a locked container, in the trunk, or in the area 48
behind the last upright seat in a motor vehicle not equipped with a trunk. 49
Notwithstanding G.S. 18B-1010, the sale of more t han two single -serving 50
unfortified wine drinks at one time shall not be unlawful if the single-serving 51
General Assembly Of North Carolina Session 2025
House Bill 198-Fifth Edition Page 25
unfortified wine drinks are sold for delivery or consumption off the permittee's 1
premises. No single -serving unfortified wine by the drink ordered for 2
off-premises consumption shall be provided to any person other than the 3
purchaser of the single-serving unfortified wine drink, except that in the case 4
of delivery, the delivery service permittee through its employees or agents 5
may provide the single-serving unfortified wine drink to a person other than 6
the purchaser if the permittee or the permittee's employees or agents verify 7
that the person is over 21 years of age using age verification software requiring 8
the recipient to provide a form of photographic id entification authorized in 9
G.S. 18B-302(d)(1). 10
…." 11
SECTION 27.(b) G.S. 18B-1101 reads as rewritten: 12
"§ 18B-1101. Authorization of unfortified winery permit. 13
The holder of an unfortified winery permit may: 14
… 15
(5) Regardless of the results of any local wine election, sell the wine owned by 16
the winery at the winery for on - or off-premise consumption upon obtaining 17
the appropriate permit under G.S. 18B-1001; 18
(5a) Regardless of the r esults of any local malt beverage election, sell malt 19
beverages for on-premise consumption upon obtaining the appropriate permit 20
under G.S. 18B-1001; 21
…." 22
SECTION 27.(c) G.S. 18B-1102 reads as rewritten: 23
"§ 18B-1102. Authorization of fortified winery permit. 24
The holder of a fortified winery permit may: 25
… 26
(5) Regardless of the results of any local wine election, sell the winery's wine for 27
on-or on- or off-premise consumption upon obtaining the appropriate permit 28
under G.S. 18B-1001. 29
(5a) Regardless of the results of any local malt beverage election, sell malt 30
beverages for on-premise consumption upon obtaining the appropriate permit 31
under G.S. 18B-1001. 32
…." 33
SECTION 27.(d) G.S. 18B-1104 reads as rewritten: 34
"§ 18B-1104. Authorization of brewery permit. 35
(a) Authorized Acts. – The holder of a brewery permit may: 36
… 37
(7) In an area where the sale of any type of alcoholic beverage is authorized by 38
law, and upon receiving the appropriate permit under G.S. 18B-1001, sell at 39
the brewery, and any additional retail location authorized under subdivision 40
(8) of this subsection, any or all of the following: 41
a. The brewery's malt beverages that have been approved by the 42
Commission for sale in North Carolina. 43
b. Malt beverages manufactured by the permittee in some other state that 44
have been approved by the Commission for sale in North Carolina. 45
c. Any other alcoholic beverages approved by the Commission for sale 46
in North Carolina, if sale of the alcoholic beverage is otherwise 47
authorized in that area. 48
(7a) Repealed by Session Laws 2019-182, s. 21(a), effective October 1, 2019. 49
General Assembly Of North Carolina Session 2025
Page 26 House Bill 198-Fifth Edition
(7b) Regardless of the results of any local malt beverage election, sell the malt 1
beverages owned by the brewery at the brewery for on - or off -premise 2
consumption upon obtaining the appropriate permit under G.S. 18B-1001. 3
(7c) Regardless of the results of any local unfortified wine election, sell unfortified 4
wine for on -premise consumption upon obtaining the appropriate permit 5
under G.S. 18B-1001. 6
…." 7
8
ALLOW ABC PERMITTEES TO PURCHASE SPIRITUOUS LIQUOR FROM 9
DESIGNATED ABC STORES IN ADJACENT COUNTIES 10
SECTION 28.(a) G.S. 18B-404 reads as rewritten: 11
"§ 18B -404. Additional provisions for purchase and transportation by mixed beverage 12
permittees. 13
… 14
(c) Designated Store. – A mixed beverage permittee may purchase spirituous liquor from 15
an any ABC store that is designated as a mixed beverage ABC store operated by any local board 16
operating in the same county as the permittee.permittee or any adjacent county. 17
(c1) Non-Solicitation. – A local board shall not solicit any mixed beverage permittee to 18
purchase spirituous liquor except for permittees located within the board's jurisdiction. 19
… 20
(f) Delivery Service. – A local board shall offer make available delivery service to mixed 21
beverage permittees. permittees operating in the same jurisdiction as the local board. A local 22
board may provide delivery service to mixed beverage permittees operating in the same county 23
in which the local board is located or any adjacent county. In providing delivery of purch ased 24
products to mixed beverage permittees, the local board may use its employees or contract with 25
one or more independent contractors and may charge a fee to the permittee. A local board in a 26
Tier 1 or Tier 2 county, as defined in G.S. 143B-472.35(a2)(18), may request an exemption to 27
this requirement from the ABC Commission. The Commission shall grant the request if the local 28
board can show evidence of unreasonable hardship or difficulty incurred by implementing 29
delivery service." 30
SECTION 28.(b) G.S. 18B-600 reads as rewritten: 31
"§ 18B-600. Places eligible to hold alcoholic beverage elections. 32
… 33
(e) City Mixed Beverage Elections. – A city may hold a mixed beverage election if the 34
city has at least 500 registered voters. Provided, that if a city that qualif ies for an election under 35
this subsection approves the sale of mixed beverages, a mixed beverages permittee in the city 36
may purchase liquor from an ABC store that is designated as a mixed beverage ABC store 37
operated by any local board operating in the same county as the permittee.permittee or any 38
adjacent county. 39
(e1) Small City Mixed Beverage Elections. – A city may also hold a mixed beverage 40
election if the city has at least 200 registered voters and is located in a county with at least one 41
other city that has approved the sale of mixed beverages. Provided, that if a city that qualifies for 42
an election under this subsection approves the sale of mixed beverages, a mixed beverages 43
permittee in the smaller city may purchase liquor from an ABC store that is designated as a mixed 44
beverage ABC store operated by any local board operating in the same county as the 45
permittee.permittee or any adjacent county. 46
… 47
(e4) Multicounty/City ABC Elections. – If a city is located in two or more counties, the 48
following provisions shall apply: 49
… 50
General Assembly Of North Carolina Session 2025
House Bill 198-Fifth Edition Page 27
(3) If an election is held by a city under this subsection, all of the city voters may 1
vote in the election. If the vote is for approval, alcoholic beverages may be 2
sold on the basis of that approval and under the provisions of this Chapt er. If 3
the sale of mixed beverages is approved, a mixed beverage permittee may 4
purchase liquor from an ABC store that is designated as a mixed beverage 5
ABC store operated by any local board operating in the same county as the 6
permittee. permittee or any ad jacent county. The remaining gross receipts 7
shall be distributed in accordance with existing law applicable to those ABC 8
stores, except that after the applicable distributions have been made pursuant 9
to G.S. 18B-805(b), (c), and (d), the local share of the mixed beverages 10
surcharge and the guest room cabinet surcharge required by 11
G.S. 18B-804(b)(8) and (9) shall be distributed one-half to the general fund of 12
the city where the mixed beverage permittees are located and one -half to the 13
local ABC boards from whose stores liquor is purchased. 14
(e5) Small Resort Town ABC Elections. – A town may hold a mixed beverage election if 15
it: 16
(1) Was incorporated after 1990 and prior to the effective date of this subsection; 17
(2) Has at least 100 residents; 18
(3) Is located in a county that borders another state and that has two other 19
municipalities which have ABC stores; and 20
(4) At the time of the election, has corporate boundaries that border or include 21
land in three counties. 22
Provided, that if a town that qualifies for an election under this subsection approves the sale 23
of mixed beverages, a mixed beverages permittee in the town may purchase liquor from an ABC 24
store that is designated as a mixed beverage ABC store operated by any local board operating in 25
the same county as the permittee.permittee or any adjacent county. 26
…." 27
SECTION 28.(c) G.S. 18B-603(h) reads as rewritten: 28
"(h) Permits Based on Existing Permits. – In any county which borders on the Atlantic 29
Ocean and where (i) the sale of malt beverage on and off premises, the sale of unfortified wine 30
on and off premises, the sale of mixed beverages, and the operation of an ABC system has been 31
allowed in at least six cities in the county, or in any county adjacent to that county in which an 32
ABC system has been allowed, or (ii) the sale of malt beverage on and off premises, the sale of 33
unfortified wine on and off premises, the sale of mixed beverages, and the operation of an ABC 34
system has been allowed in at least eight cities in the county, the Commission may issue permits 35
to sports clubs as defined in G.S. 18B-1000(8) throughout the county. 36
The Commission may issue the following permits: 37
(1) On and Off Premises Malt Beverage; 38
(2) On and Off Premises Unfortified Wine; 39
(3) On and Off Premises Fortified Wine; or 40
(4) Mixed Beverages. 41
The Commission may also issue on-premises malt beverage, unfortified wine, fortified wine 42
and mixed beverages permits to a sports club located in a county adjacent to any county that has 43
approved the sale of mixed beverages pursuant to G.S. 18B-603(d1), if the county in which the 44
sports club is located borders another state and has at least one city that has approved the sale of 45
mixed beverages. Sports clubs holding mixed beverages permits shall purchase their spirituous 46
liquor at the nearest any ABC system store that is located in the county.county or an adjacent 47
county. 48
The Commission may further issue on -premises malt beverage and on -premises unfortified 49
wine permits to a sports club located in a county bordering on another state that is adjacen t to 50
any county in which permits were issued pursuant to this subsection prior to August 1, 1993. The 51
General Assembly Of North Carolina Session 2025
Page 28 House Bill 198-Fifth Edition
sports clubs must be located in the unincorporated areas of a county, in which the sale of malt 1
beverages and unfortified wine is not permitted, and where there are six or more municipalities 2
in that county where the sale of malt beverages and unfortified wine is permitted." 3
SECTION 28.(d) G.S. 18B-701(a) reads as rewritten: 4
"(a) Powers. – A local board shall have authority to do all of the following: 5
(1) Buy, sell, transport, and possess alcoholic beverages as necessary for the 6
operation of its ABC stores. In providing delivery of spirituous liquor to a 7
mixed beverages permittee, as required by in accordance with 8
G.S. 18B-404(f), the local board may use it s employees or contract with one 9
or more independent contractors and may charge a fee to the permittee. A 10
mixed beverage permittee may contract with an independent contractor to 11
provide delivery of spirituous liquor from an ABC board's store or warehouse 12
to the permittee's premises. 13
…." 14
SECTION 28.(e) G.S. 18B-1001(12a), as amended by Section 7 of this act, reads as 15
rewritten: 16
"(12a) Mobile Bar Services Permit. – 17
a. A mobile bar services permit may be issued to a business that provides 18
bartending services for events. The permit authorizes the permittee to 19
bring malt beverages, unfortified wine, fortified wine, and spirituous 20
liquor onto the premises of a business that is not an ABC permittee 21
and to serve the alcoholic beverages to guests at the event. Excep t as 22
provided in sub-subdivision b. of this subdivision, the permittee may 23
purchase malt beverages and unfortified wine only from a retailer. The 24
permittee may purchase fortified wine and spirituous liquor only from 25
an ABC store that is designated as a mix ed beverage ABC store 26
operated by any local board operating in the same county where the 27
permittee's principal office is located. located or in any county 28
adjacent to the county where the permittee's principal office is located. 29
If the permittee's premises for storage of inventory is a residential 30
address, the permittee may designate an area of the premises to be used 31
for storage of inventory pursuant to the permit. An inspection of the 32
premises pursuant to G.S. 18B-502 shall extend only to the area that 33
the permittee has designated for storage of inventory unless the law 34
enforcement officer conducting the inspection has (i) a warrant to 35
search the residence, or (ii) probable cause to search the residence and 36
exigent circumstances exist. 37
b. The holder of a p ermit issued pursuant to G.S. 18B-1001(1), (3), (5), 38
(16), or (16a) may also hold a mobile bar services permit at the same 39
permitted premises. Notwithstanding sub -subdivision a. of this 40
subdivision, a permittee who holds both a mobile bar services permit 41
and a permit issued pursuant to G.S. 18B-1001(1), (3), (5), (16), or 42
(16a) may not obtain or serve alcoholic beverages that the permittee is 43
not allowed to sell under the permit or permits that the permittee holds 44
that are issued pursuant to G.S. 18B-1001(1), (3), (5), (16), or (16a). 45
The permittee shall only use as inventory for the mobile bar services 46
permit the permittee's inventory of alcoholic beverages lawfully 47
purchased from a wholesaler pursuant to the permit or permits that the 48
permittee holds under G.S. 18B-1001(1), (3), (5), (16), or (16a). The 49
mobile bar services permit shall authorize such a permittee to bring 50
those alcoholic beverages onto the premises of a business that is not 51
General Assembly Of North Carolina Session 2025
House Bill 198-Fifth Edition Page 29
an ABC permittee and serve the alcoholic beverages to guests at the 1
event. Alcoholic beverages that are taken from the permittee's 2
inventory to an event at another premises under a mobile bar services 3
permit may be restored to inventory after the event if the alcoholic 4
beverages are still in the manufacturer's original unopened container. 5
c. A mobile bar services permittee may not serve alcoholic beverages 6
pursuant to a mobile bar services permit on the premises of any 7
location owned or possessed by the permittee. The permittee shall 8
notify the Commission, in writing, of the location of any event where 9
the permittee will serve alcoholic beverages not less than one week 10
before the event and shall have the permission of the owner or 11
possessor of the property on which the event is to be held. Any person 12
serving alcoholic bevera ges at the event shall be at least 21 years of 13
age. Alcoholic beverages may be transported by the mobile bar 14
services permit holder to the premises of the event no earlier than 8:00 15
A.M. on the day of the event. At the conclusion of the event, all 16
alcoholic beverages must be removed from the premises no later than 17
12:00 noon of the following day. A limited special occasion permit 18
shall not be required for an event at which alcoholic beverages are 19
exclusively provided by the holder of a mobile bar services p ermit. 20
The holder of a mobile bar services permit may bring alcoholic 21
beverages onto the premises and serve the alcoholic beverages at an 22
event regardless of whether there is a charge or fee for guests to attend 23
the event. This permit does not allow the re tail sale of individual 24
alcoholic beverages to guests at an event." 25
SECTION 28.(f) G.S. 18B-1007(a) reads as rewritten: 26
"(a) Purchases. – A mixed beverages permittee may purchase spirituous liquor for resale 27
as mixed beverages and a guest room cabinet permittee may purchase spirituous liquor for resale 28
from a guest room cabinet only at an ABC store that is designated as a mixed beverage ABC 29
store operated by any local board operating in the same county as the permittee.permittee or any 30
adjacent county." 31
SECTION 28.(g) This section is effective when it becomes law and applies to 32
spirituous liquor purchased on or after that date. 33
34
ALLOW IN-STAND SALES AT CONCERTS 35
SECTION 29. G.S. 18B-1009 reads as rewritten: 36
"§ 18B-1009. In-stand sales. 37
(a) Nothing in this Chapter shall be construed to prohibit a retail permittee from selling 38
for consumption, malt beverages in the seating areas of stadiums, ballparks, theaters, 39
amphitheaters, and other similar public places with a seating capacity of 3,000 or more during 40
concerts or professional sporting events, provided that: 41
(1) The seating areas are designated as part of the retail permittee's licensed 42
premises; 43
(2) The retail permittee has notified the Commission, in writing, of its intent to 44
sell malt beverages in the seating areas at concerts or sporting events; 45
(3) Service of food and nonalcoholic beverages is available in the seating areas; 46
(4) The retail permitt ee has certified to the Commission that it has trained its 47
employees: 48
a. To identify underage persons and intoxicated persons; and 49
b. To refuse to sell malt beverages to those persons as required by 50
G.S. 18B-305; and 51
General Assembly Of North Carolina Session 2025
Page 30 House Bill 198-Fifth Edition
(5) The employees do not verbally shout or hawk the sale of malt beverages. 1
(b) The North Carolina Alcoholic Beverage Control Commission shall adopt rules for the 2
suspension of alcohol sales in the latter portion of concerts or professional sporting events in 3
order to protect public safety at these events." 4
5
CREATE AUCTION HOUSE PERMIT 6
SECTION 30.(a) G.S. 18B-101 reads as rewritten: 7
"§ 18B-101. Definitions. 8
As used in this Chapter, unless the context requires otherwise: 9
… 10
(5a) "Antique spirituous liquor" means spirituous liquor that has not be en in 11
production or bottled in the last 20 years, 10 years or has not been in inventory 12
in the State warehouse in the last 10 years, is in the original manufacturer's 13
unopened container, is not owned by a distillery, and is not otherwise available 14
for purchase by an ABC Board except through the special order process 15
pursuant to G.S. 18B-1001(20). 16
… 17
(6a) "Decorative decanter " means a manufacturer 's original sealed decanter of 18
spirituous liquor, limited in quantities as a specialized limited run, a limite d 19
edition, or with historical significance with the manufacturer 's distillery 20
markings and labeling. 21
(6a)(6b) "Finance officer" means the local board employee, other than a general 22
manager, who is responsible for keeping the accounts of the local board, 23
receiving and depositing receipts, disbursing funds, and any other duties 24
assigned by the local board or Commission. 25
…." 26
SECTION 30.(b) G.S. 18B-902(d) reads as rewritten: 27
"(d) Fees. – An application for an ABC permit shall be accompanied by payment of the 28
following application fee: 29
… 30
(45) Special auction permit - $750.00. 31
… 32
(59) Auction house permit – $1,000." 33
SECTION 30.(c) G.S. 18B-1002.1 is repealed. 34
SECTION 30.(d) Article 10 of Chapter 18B of the General Statutes is amended by 35
adding a new section to read: 36
"§ 18B-1002.3. Auction house permit. 37
An auction house permit may be issued upon application to an auction firm or auctioneer 38
licensed by the North Carolina Auctioneers Commission pursuant to Chapter 85B of the General 39
Statutes to allow the licensed auction firm or auctioneer to sell at auction items described in 40
G.S. 18B-1002(a)(4) on the permittee's premises. An auction held under this section may receive 41
competing bids that are in person or by telephone, fax, or online. The permittee shall store any 42
auction items described in G.S. 18B-1002(a)(4) on the permittee's premises or at a secondary 43
location in this State that is disclosed in the permit application." 44
SECTION 30.(e) G.S. 18B-603(f), as amended by Section 17(d) of this act, reads as 45
rewritten: 46
"(f) Permits Not Dependent on Elections. – The Commission may issue the following 47
kinds of permits without approval at an election: 48
(1) Special occasion permits. 49
(2) Limited special occasion permits. 50
General Assembly Of North Carolina Session 2025
House Bill 198-Fifth Edition Page 31
(3) Brown-bagging permits for private clubs and congressionally chartered 1
veterans organizations. 2
(4) Culinary permits, except as restricted by subdivision (d)(5). 3
(5) Special one-time permits issued under G.S. 18B-1002. 4
(6) All permits listed in G.S. 18B-1100. 5
(7) The permits authorized by G.S. 18B-1001(1), (3), (5), and (10) for tourism 6
ABC establishments. 7
(8) The permits authorized by G.S. 18B-1001(1), (3), (5), and (10) for tourism 8
resorts. 9
(9) The permits authorized by G.S. 18B-1001(1), (3), (5), and (10) for historic 10
ABC establishments. 11
(10) Special auction permits issued under G.S. 18B-1002.1. 12
(11) Special multiple event permits issued under G.S. 18B-1002.2. 13
(12) Auction house permits issued under G.S. 18B-1002.3." 14
15
PART IV. STATE GOVER NMENT AND LOCAL BOAR D ORGANIZATIONAL 16
CHANGES 17
18
TOWN OF ANGIER ABC BOARD DISTRIBUTIONS 19
SECTION 31.(a) Section 6 of Chapter 626, Se ssion Laws of 1969, as amended by 20
Chapter 144, Session Laws of 1971, reads as rewritten: 21
"Sec. 6. The net profits, as determined by quarterly audit, shall be distributed and used as 22
follows: 23
1. Ten per cent (10%) of the net profit shall be paid to the Angi er Community 24
Library.allocated to recreation programs within the town limits of the Town of Angier. 25
2. Ten per cent (10%) of the net profit may be used by the town Alcoholic Control 26
Board, in its discretion, for educational programs as to the effect of the use of alcoholic beverages 27
and for the rehabilitation of alcoholics. Whenever a person becomes an inebriate from the use of 28
alcoholic beverages and has been committed by the Clerk of Court of Harnett County, as provided 29
in G.S. 35-2, and such person is indigent so that expenses of his care and cure shall constitute a 30
valid charge against the county, as provided in G.S. 35-2, the town Alcoholic Control Board shall 31
pay to the county such charges; provided, that the town Alcoholic Control Board shall not be 32
required to pay any such charges except where it has agreed with the Clerk of Superior Court to 33
pay such charges prior to the person's commitment. The town Alcoholic Control Board is 34
authorized to participate in and to make contributions to public and priva te organizations which 35
have rehabilitation programs for alcoholics, when the organization and its programs have been 36
approved by the board. Nothing herein shall be construed as limiting the Alcoholic Control 37
Board's discretion in establishing its education al and rehabilitation program and expenditures 38
therefor within the ten per cent (10%) net profits herein allocated. 39
3. The remainder of the net profits shall be allocated to the general fund of the town of 40
Angier. The governing body of the town is hereby authorized to appropriate such funds for any 41
proper governmental purpose. Out of the funds allocated to it, the governing body of the town is 42
authorized, at its discretion, to expend up to twenty -five per cent (25%) of such funds for 43
recreational programs in the town." 44
SECTION 31.(b) Any undistributed funds accrued by the town Alcoholic Control 45
Board prior to the effective date of this act for distribution to the Angier Community Library 46
shall be distributed for the purpose of recreation programs within the town limits of the Town of 47
Angier. 48
49
ADD TWO MEMBERS TO THE ABC COMMISSION 50
SECTION 32.(a) G.S. 18B-200 reads as rewritten: 51
General Assembly Of North Carolina Session 2025
Page 32 House Bill 198-Fifth Edition
"§ 18B-200. North Carolina Alcoholic Beverage Control Commission. 1
(a) Creation of Commission; compensation. – The North Carolina A lcoholic Beverage 2
Control Commission is created to consist of a chairman and two four associate members. The 3
Commission shall be administratively located within the Department of Public Safety but shall 4
exercise its powers independently of the Secretary of Public Safety. The chairman shall devote 5
his or her full time to his or her official duties and receive a salary fixed by the General Assembly 6
in the Current Operations Appropriations Act. The associate members shall be compensated for 7
per diem, subsistence and travel as provided in Chapter 138 of the General Statutes. 8
(b) Appointment of M embers. – Members The chairman of the Commission and two 9
associate members shall be appointed by the Governor to serve at his pleasure.the pleasure of the 10
Governor. One associate member shall be appointed by the President Pro Tempore of the Senate 11
to serve at the pleasure of the President Pro Tempore and one associate member shall be 12
appointed by the Speaker of the House of Representatives to serve at the pleasure of the Speaker. 13
(c) Vacancy. – The Governor appointing authority shall fill any vacancy on the 14
Commission by appointing a successor to serve at the Governor's pleasure. the pleasure of the 15
appointing authority. If the chairman's seat becomes vacant, the Governor may designate either 16
the new member or an existing member of the Commission as the chairman. 17
(d) Employees. – The Commission may authorize the chairman to employ, discharge, and 18
otherwise supervise subordinate personnel of the Commission. The Commission shall appoint at 19
least one employee to make investigations, hold hearings requested u nder G.S. 18B-1205, and 20
represent the Commission in contested case hearings or perform any other duties authorized by 21
Chapter 150B." 22
SECTION 32.(b) This section becomes effective December 1, 2026. 23
24
ALLOW ABC COMMISSION TO CONDUCT CONTESTED CASES UNDER ARTICLE 25
3A OF THE ADMINISTRATIVE PROCEDURE ACT 26
SECTION 33.(a) G.S. 150B-38(a) reads as rewritten: 27
"(a) The provisions of this Article shall apply to: 28
(1) Occupational licensing agencies. 29
(2) The State Banking Commission, the Commissioner of Banks, and the Cr edit 30
Union Division of the Department of Commerce. 31
(3) The Department of Insurance and the Commissioner of Insurance. 32
(4) The State Chief Information Officer in the administration of the provisions of 33
Article 15 of Chapter 143B of the General Statutes. 34
(5) The North Carolina State Building Code Council and Residential Code 35
Council, Article 9 of Chapter 143 of the General Statutes. 36
(5a) The Office of the State Fire Marshal and the State Fire Marshal. 37
(6) Repealed by Session Laws 2018-146, s. 4.4(b), effective December 27, 2018. 38
(7) The North Carolina Alcoholic Beverage Control Commission." 39
SECTION 33.(b) This section becomes effective October 1, 2026, and applies to 40
contested cases filed on or after that date. 41
42
PROHIBIT PRESENT MEMBERS OF CITY GOVERNING BODIES AND BOARDS OF 43
COUNTY COMMISSIONERS FROM BEING APPOINTED TO SERVE ON LOCAL 44
ABC BOARDS 45
SECTION 34.(a) G.S. 18B-700(d) reads as rewritten: 46
"(d) Qualifications. – The appointing authority shall appoint members of a local board on 47
the basis of the appointees' interest in public affairs, good judgment, knowledge, ability, and good 48
moral character. Notwithstanding any other provision in this Article, no appointing authority 49
shall appoint any present member of a city governing body or board of county commissioners to 50
serve as a member on any local board." 51
General Assembly Of North Carolina Session 2025
House Bill 198-Fifth Edition Page 33
SECTION 34.(b) This section is effective when it becomes law and applies to 1
appointments made on or after that date. A person who is a member of a city governing body or 2
board of county commissioners who is a member of a local board on the effective date of this 3
section may serve the remainder of the person's term as a member of the local board. 4
5
AMEND DISTRIBUTION OF LOCAL BOARD REVENUES FOR THE CITY OF 6
SANFORD 7
SECTION 35. S.L. 1961-105, as amended by S.L. 1961-888, reads as rewritten: 8
"… 9
"Sec. 4. If a majority of the votes cast in such election shall be for the legal sale of beer and/or 10
wine, then the Board of Aldermen of the City of Sanford shall issue license to sell beer and/or 11
wine as defined in General Statutes 18-64 as provided in Chapter 18 Chapter 18B of the General 12
Statutes notwithstanding any Public, Special, Local or Private Act to the contrary whether passed 13
before or after the ratification of this Act; provided, however, in no event shall a license be issued 14
to any person, firm or corporation to sell beer and/or wine for "on premises" consumption 15
anywhere in the City of Sanford. Notwithstanding any other provisions of this Act, it shall be 16
unlawful to sell any beer or wine in the City of Sanford when such beer or wine has been 17
refrigerated to a temperature less t han the general temperature of the establishment wherein the 18
sale is made, and any sale of refrigerated beer or wine shall be unlawful. Notwithstanding any 19
other provisions of this Act, it shall be unlawful to sell beer in individual containers containing 20
less than one gallon, except when six containers are sold at the same time to the same person: 21
Provided, that more than six containers may be sold to the same person at the same time when 22
the number of containers is some multiple of six. 23
A violation of eit her of the foregoing shall constitute a general misdemeanor punishable in 24
the discretion of the court and a conviction or plea of nolo contendere to said charge shall operate 25
to permanently revoke the license of the violator. 26
… 27
"Sec. 8. The City Board of Alcoholic Beverage Control shall have all the powers and duties 28
prescribed for County Boards of Alcoholic Control by G. S. 18 -45 and shall be subject to the 29
powers and authority of the State Board of Alcoholic Control to the same extent as are County 30
Boards of Alcoholic Control set forth in G. S. 18-39. local boards set forth in G.S. 18B-701. The 31
City of Sanford Board of Alcoholic Control and the operation of Municipal Alcoholic Beverage 32
Control Stores authorized under the provisions of this Act shall be subject to the provisions of 33
Article 3 of Chapter 18 Articles 7 and 8 of Chapter 18B of the General Statutes except to the 34
extent that such provisions may be in conflict with this Act. Wherever the word "County" Board 35
of Alcoholic Control appears in said Article it shall apply to and include the City of Sanford 36
Board of Alcoholic Control. The City of Sanford Board of Alcoholic Control shall have authority 37
to employ legal counsel and such other employees as it may deem necessary and fix their 38
compensation. The per diem and subsistence allowance for the City of Sanford Board of 39
Alcoholic Control shall be fixed by the Board of Aldermen of the City of Sanford. 40
The City of Sanford Board of Alcoholic Beverage Control may appoint one of its members, 41
or any other person, as Supervisor of the system and pay such appointee an annual salary not to 42
exceed six thousand dollars ($6,000.00), which shall, in the case of a board member, be in lieu 43
of all other compensation for services rendered; provided, no person shall serve as Supervisor 44
and Chairman. Designation or appointment by the board of one of its members as Supervisor 45
shall not remove said member from the board, but if such appointment shall vacate the office of 46
Chairman, the Board of Aldermen of the City of Sanford shall designate another board member 47
to serve as Chairman. 48
The designation of particular p ersons for particular terms by the Board of Aldermen of the 49
City of Sanford heretofore made is ratified and confirmed. 50
General Assembly Of North Carolina Session 2025
Page 34 House Bill 198-Fifth Edition
"Sec. 9. Out of the gross profits derived from the operation of said Alcoholic Beverage 1
Control Stores and after the payment of all costs and operating expenses, and after obtaining 2
sufficient and proper working capital, the amount thereof to be determined by the City of Sanford 3
Board of Alcoholic Beverage Control, said Board shall expend an amount for law enforcement 4
purposes of not less t han five per cent (5%) nor more than ten per cent (10%) thereof to be 5
determined by quarterly audits, which amount shall supplement and not supplant the amount 6
usually budgeted for such purposes by the City of Sanford. 7
Before making any other distribution , the City of Sanford Board of Alcoholic Control shall 8
pay, from its gross proceeds, all costs and expenses incurred for education and law enforcement 9
purposes required by G.S. 18B-805(b) and (c). 10
The Board may contract with any law enforcement agency located within the jurisdiction of 11
Lee County for the provision of law enforcement services related to the enforcement of the 12
alcoholic beverage laws of this State within the Board 's jurisdiction. Any contract entered into 13
pursuant to this section shall be approved by the Board and shall set forth the scope of services, 14
compensation, and terms of engagement. 15
In the expenditure of said funds, the City Board of Alcoholic Control shall The Board may 16
also employ one or more persons as law enforcement officer or officers to be appointed by and 17
directly responsible to the said Board. The person or persons so appointed shall, after taking the 18
oath prescribed by law for peace officers, have the same powers and authorities within Lee 19
County as other peace officers. An y such person or persons so appointed, or any other peace 20
officer while in hot pursuit of anyone found to be violating the prohibition alcohol laws of this 21
State, shall have the right to go into any other county of the State and arrest such defendant 22
therein so long as such hot pursuit of such person shall continue, and the common law of hot 23
pursuit shall be applicable to said offenses and such officer or officers. Any law enforcement 24
officer appointed by the said Board of Alcoholic Control and any other pe ace officer is hereby 25
authorized, upon request of the sheriff or other lawful officer in any other county, to go into such 26
other county and assist in suppressing a violation of the prohibition alcohol laws therein, and 27
while so acting shall have such power s as a peace officer as are granted to him in Lee County 28
and be entitled to all the protection provided for said officer while acting in his own County. 29
Out of the net profits derived from the operation of said Alcoholic Beverage Control Stores, 30
the City o f Sanford Board of Alcoholic Beverage Control shall on a quarterly basis pay over 31
equal amounts to the general fund of the City of Sanford and to the general fund of Lee County. 32
The Board shall at all times maintain a sustainable operating budget. The Boar d's 33
unencumbered operating reserve shall not fall below fifteen percent (15%) of the Board 's total 34
annual operating budget. In any quarter in which a distribution of this section would cause the 35
Board's operating reserve to fall below the minimum required by this section, the Board shall 36
first retain from net proceeds an amount sufficient to restore the operating reserve to the required 37
minimum before making any other distributions. 38
After paying all costs, operating expenses, and education and enforcement expenditures, and 39
satisfying the operating reserve requirement, the Board shall distribute the remaining net 40
proceeds on a quarterly basis as follows: (i) thirty percent (30%) to the general fund of Lee 41
County; (ii) thirty percent (30%) to the general fund of the City of Sanford; and (iii) forty percent 42
(40%) to be retained by the Board for day -to-day operating expenses, capital needs, and other 43
lawful purposes of the Board. 44
Any amounts which may be due the City of Sanford by way of distribution from taxes 45
collected by the State of North Carolina by reason of the sales of wine or beer sold under the 46
terms of this Act, instead of being paid entirely to the City of Sanford, shall be distributed as 47
follows: One-half to the general fund of the City of Sanford an d one-half to the general fund of 48
Lee County. 49
…." 50
51
General Assembly Of North Carolina Session 2025
House Bill 198-Fifth Edition Page 35
PART V. RAFFLES 1
2
REVISE LAW GOVERNING RAFFLES 3
SECTION 37.(a) G.S. 14-309.15 reads as rewritten: 4
"§ 14-309.15. Raffles. 5
(a) It is lawful for any nonprofit organization, candidate, political committee, or any 6
government entity within the State, to conduct raffles in accordance with this section. Each 7
regional or county chapter of a nonprofit organization is eligible to conduct raffles in accordance 8
with this section independently of its parent organization. Any person who conducts a raffle in 9
violation of any provision of this section is guilty of a Class 2 misdemeanor. Upon conviction 10
that person shall not conduct a raffle for a period of one year. It is lawful to participate in a raffle 11
conducted pursuant to this section. It is not a violation of State law to advertise a raffle conducted 12
in accordance with this section. A raffle conducted pursuant to this section is not "gambling." 13
For the purpose of this section, "candidate" and "political committee" have the meaning provided 14
by Article 22A of Chapter 163 of the General Statutes, who have filed organization reports under 15
that Article, and who are in good standing with the appropriate board of elections. Receipts and 16
expenditures of a raffle by a candidate o r political committee shall be reported in accordance 17
with Article 22A of Chapter 163 of the General Statutes, and ticket purchases are contributions 18
within the meaning of that Article. 19
(b) For purposes of this section "raffle" means a The following definitions apply in this 20
section: 21
(1) 50/50 raffle. – A raffle conducted by a nonprofit organization or any 22
government entity within the State whereby funds collected by sale of raffle 23
tickets are split evenly between the prize winner or winners and the nonprofit 24
organization or government entity after the raffle drawing. 25
(2) Candidate. – As defined in Article 22A of Chapter 163 of the General Statutes. 26
This term only includes candidates who have filed organization reports under 27
that Article and who are in good standing with the appropriate board of 28
elections. 29
(3) Net proceeds of a raffle. – The receipts less the cost of prizes awarded. 30
(4) Political committee. – As defined in Article 22A of Chapter 163 of the General 31
Statutes. This term only includes polit ical committees that have filed 32
organization reports under that Article and that are in good standing with the 33
appropriate board of elections. 34
(5) Raffle. – A game in which the prize is won by random drawing of the name 35
or number of one or more persons purchasing chances. 36
(c) A nonprofit organization may hold no more than five raffles per year. 37
(d) Except as provided in subsection (g) of this section, the maximum cash prize that may 38
be offered or paid for any one raffle is one hundred twenty-five thousand dollars ($125,000) and 39
if merchandise is used as a prize, and it is not redeemable for cash, the maximum fair market 40
value of that prize may be one hundred twenty -five thousand dollars ($125,000). The total cash 41
prizes offered or paid by any nonprofit organization shall not exceed two hundred fifty thousand 42
dollars ($250,000) in any calendar year. The total fair market value of all prizes offered by any 43
nonprofit organization, either in cash or in merchandise that is not redeemable for cash, shall not 44
exceed two hundred fifty thousand dollars ($250,000) in any calendar year. 45
(e) Raffles shall not be conducted in conjunction with bingo. 46
(f) As used in this subsection, "net proceeds of a raffle" means the receipts less the cost 47
of prizes awarded. No less than ninety percent (90%) of the net proceeds of a raffle shall be used 48
by the nonprofit organization for charitable, religious, educational, civic, or other nonprofit 49
purposes. None of the net proceeds of the raffle shall be used to pay any person to conduct t he 50
raffle, or to rent a building where the tickets are received or sold or the drawing is conducted. 51
General Assembly Of North Carolina Session 2025
Page 36 House Bill 198-Fifth Edition
(g) Real property may be offered as a prize in a raffle. Any nonprofit organization 1
offering real property as a prize in a raffle shall provide the property free from all liens, provide 2
an owner affidavit and indemnity agreement, and provide a title commitment for the property 3
and shall make that commitment available for inspection upon request. The total appraised value 4
of all real estate prizes offered by any nonprofit organization shall not exceed two million two 5
hundred fifty thousand dollars ($2,250,000) in any calendar year. 6
(h) Notwithstanding any other subsection of this section, it is lawful for a federally 7
insured depository institution to conduct a savings promotion raffle under G.S. 53C-6-20, 8
54-109.64, 54B-140, or 54C-180. 9
(i) The restrictions set forth in subsections (c) through (g) of this section do not apply to 10
50/50 raffles conducted by nonprofit organizations or government entities within the State." 11
SECTION 37.(b) This section becomes effective December 1, 2026, and applies to 12
offenses committed on or after that date. 13
14
PART VI. SEVERABILITY CLAUSE AND EFFECTIVE DATE 15
SECTION 38.(a) If any provision of this act or the application thereof to any person 16
or circumstances is held invalid, such invalidity shall not affect other provisions or applications 17
of this act that can be given effect without the invalid provision or application and, to this end, 18
the provisions of this act are declared to be severable. 19
SECTION 38.(b) Except as otherwise provided, this act is effective when it becomes 20
law. 21