A BILL TO BE ENTITLED
AN ACT to revise the laws governing organized affairs, exhibitions, and competitions where certain homemade alcoholic beverages are offered for consumption free of charge and to authorize certain small municipalities with decreasing populations to attract business through a malt beverage and unfortified wine election, at the discretion of the municipal governing board.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 18B‑902(d) reads as rewritten:
"(d)	Fees. – An application for an ABC permit shall be accompanied by payment of the following application fee:
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(44)	Homemade alcoholic beverage competition and tasting permit. – $50.00."
SECTION 2.  G.S. 18B‑1001 reads as rewritten:
"§ 18B‑1001.  Kinds of ABC permits; places eligible.
When the issuance of the permit is lawful in the jurisdiction in which the premises are located, the Commission may issue the following kinds of permits:
(1)	On‑Premises Malt Beverage Permit. – An on‑premises malt beverage permit authorizes (i) the retail sale of malt beverages for consumption on the premises, (ii) the retail sale of malt beverages in the manufacturer's original container for consumption off the premises, and (iii) the retail sale of malt beverages in a cleaned, sanitized, resealable container that is filled or refilled and sealed for consumption off the premises and that identifies the permittee and the date the container was filled or refilled. It also authorizes the holder of the permit to host on the permittee's licensed premises, in a part of the premises not open to the general public, homebrew club meetings or events where homemade malt beverages may be consumed by participants of legal age in the meeting or event. It also authorizes the holder of the permit to ship malt beverages in closed containers to individual purchasers inside and outside the State. The permit may be issued for any of the following:
a.	Restaurants.
b.	Hotels.
c.	Eating establishments.
d.	Food businesses.
e.	Retail businesses.
f.	Private clubs.
g.	Convention centers.
h.	Community theatres.
i.	Breweries as authorized by G.S. 18B‑1104(7) and (8).
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(8)	Special Occasion Permit. – A special occasion permit authorizes the host of a reception, party or other special occasion, with the permission of the permittee, to bring fortified wine; spirituous liquor; and donated homemade malt beverages, meads, wines, and fermented fruit juices onto the premises of the business and to serve the same to his guests. The permit may be issued for any of the following:
a.	Restaurants.
b.	Hotels.
c.	Eating establishments.
d.	Private clubs.
e.	Convention centers.
f.	Nonprofit organizations.
(9)	Limited Special Occasion Permit. – A limited special occasion permit authorizes the permittee to bring fortified wine; spirituous liquor; and donated homemade malt beverages, meads, wines, and fermented fruit juices onto the premises of a business, with the permission of the owner of that property, and to serve those alcoholic beverages to the permittee's guests at a reception, party, or other special occasion being held there. The permit also authorizes the permittee to engage in the activities authorized under subdivision (21) of this section, subject to the same conditions listed in that subdivision. The permit may be issued to any individual other than the owner or possessor of the premises. An applicant for a limited special occasion permit shall have the written permission of the owner or possessor of the property on which the special occasion is to be held.
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(21)	Homemade Alcoholic Beverage Competition and Tasting Permit. – A permit under this subdivision may be issued to a nonprofit organization. The permit holder may host on the permittee's licensed premises an organized affair, exhibition, or competition where the permittee, or the permittee's employee or agent, may serve for consumption on the licensed premises homemade alcoholic beverages, subject to all of the following conditions:
a.	Any person pouring the homemade alcoholic beverage is at least 21 years of age and is responsible for checking the identification of patrons being served at the event.
b.	The consumer is not charged for any homemade alcoholic beverages served.
c.	The consumer may be charged a fee for admission to the organized affair, exhibition, or competition, but proceeds from any fee charged are not used to purchase, or cover the costs incurred from making, the homemade alcoholic beverages.
d.	Homemade alcoholic beverages are not to be offered to, or allowed to be consumed by, any person under the legal age for consuming alcoholic beverages.
The homemade alcoholic beverage competition and tasting permit holder is solely liable for any violations of this Chapter occurring in connection with the organized affair, exhibition, or competition. The Commission shall adopt rules to assure that the tastings authorized under this subdivision are not a subterfuge for the unlawful sale or distribution of alcoholic beverages. For purposes of this subdivision, the term "organized affair, exhibition, or competition" includes homemaker's contests, tastings, and judgings, and the term "homemade alcoholic beverages" means homemade malt beverages, meads, wines, and fermented fruit juices."
SECTION 2.5.  G.S. 18B‑600(c) reads as rewritten:
"(c)	City Malt Beverage and Unfortified Wine Elections. – A city may hold a malt beverage or unfortified wine election only if the county in which the city is located has already held such an election, the vote in the last county election was against the sale of that kind of alcoholic beverage, and one or more of the following apply:
(1)	The city has a population of 500 or more according to the most recent federal decennial census.
(2)	The city operates an ABC store.
(3)	The city has a population of 400 or more but less than 500 according to the most recent federal decennial census and had a population of 500 or more according to the prior federal decennial census."
SECTION 3.  The ABC Commission may adopt temporary rules to implement the provisions of this act. Temporary rules adopted in accordance with this section shall remain in effect until permanent rules that replace the temporary rules become effective.
SECTION 4.  Sections 1 and 2 of this act become effective August 1, 2017. The remainder of this act is effective when it becomes law."