S.L. 1971-872

NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

CHAPTER 872

SENATE BILL 107

AN ACT TO REWRITE GENERAL STATUTES CHAPTER 18, REWRITE AND TRANSFER TO CHAPTER 105 THE REVENUE STATUTES FORMERLY IN CHAPTER 18 AND TO REPEAL CERTAIN INCONSISTENT SECTIONS.

The General Assembly of North Carolina enacts:

Section 1. The General Statutes of North Carolina are amended by inserting a new Chapter 18A to read as follows:

"Chapter 18A

"Regulation of Intoxicating Liquors

"Article 1.

"General Provisions.

"§ 18A-1. Purpose of Chapter. — The purpose and intent of this Chapter is to establish a uniform system of control over the sale, purchase, transportation, manufacture, and possession of intoxicating liquors in North Carolina, and to provide administrative procedures to insure, as far as possible, the proper administration of this Chapter under a uniform system throughout the State. This Chapter shall be liberally construed to the end that the sale, purchase, transportation, manufacture, and possession of intoxicating liquors shall be prohibited except as authorized in this Chapter.

"§ 18A-2. Definitions. — When used in this Chapter:

(1) The word 'liquor' or the phrase 'intoxicating liquor' shall be construed to include alcohol, brandy, whiskey, rum, gin, beer, ale, porter, and wine, and in addition thereto any spirituous, vinous, malt or fermented beverages, liquids, and compounds, whether medicated, proprietary, patented, or not, and by whatever name called, containing one-half of one per cent (1/2 of 1%) or more of alcohol by volume, which are fit for use for beverage purposes.

(2) The term 'spirituous liquors' shall be deemed to include any alcoholic beverages containing an alcoholic content of more than twenty-one per cent (21%) by volume.

(3) The term 'alcoholic beverage' means alcoholic beverages of any and all kinds that contain more than fourteen per cent (14%) of alcohol by volume.

(4) Fortified wine' shall mean any wine that is made by fermentation from grapes, fruits, or berries, to which nothing but pure brandy has been added, which brandy is made from the same type of grape, fruit, or berry that is contained in the base wine to which it is added and having an alcoholic content of over fourteen per cent (14%) and not more than twenty-one per cent (21%) of absolute alcohol, reckoned by volume; and is approved by the State Board of Alcoholic Control as to identity, quality, and purity as provided in this Chapter.

(5) The term 'unfortified wines' shall mean wine that has an alcoholic content produced only by natural fermentation or by the addition of pure cane, beet, or dextrose sugar, and having an alcoholic content of not less than five per cent (5%) and not more than fourteen per cent (14%) of absolute alcohol, the per cent of alcohol to be reckoned by volume, and that has been approved as to identity, quality and purity by the State Board of Alcoholic Control as provided in this Chapter.

(6) The term 'native wines' shall mean wine made from grapes, fruit, or berries and having only such alcoholic content as natural fermentation may produce.

(7) The term 'malt beverages' shall mean beer, lager beer, malt liquor, ale, porter, and other brewed or fermented beverages containing one-half of one per cent (1/2 of 1%) of alcohol by volume but not more than five per cent (5%) of alcohol by weight.

(8) The term 'mixed beverage', as used in this Chapter is defined to be and to mean a drink composed in whole or in part of alcoholic beverages having an alcoholic content of more than fourteen per cent (14%) of alcohol by volume and served to an individual in a miniature bottle or in a quantity less than the quantity contained in a closed package, purchased for consumption on premises licensed for mixed beverages by the State Board of Alcoholic Control.

(9) The term 'person' shall mean any individual, firm, partnership, association, corporation, other organizations or groups, or combination of persons acting as a unit.

(10) The term 'sale' shall include any transfer, trade, exchange, or barter in any manner or by any means whatsoever, for a consideration.

(11) The term 'taxpaid liquor' shall mean any intoxicating liquor upon which the taxes imposed by the United States and by the state or other territorial jurisdiction in which such liquor was purchased have both been paid.

(12) The term 'non-taxpaid liquor' shall mean any intoxicating liquor upon which the taxes imposed by the United States and by the state or other territorial jurisdiction in which such liquor was purchased have not both been paid.

(13) The word 'license' shall mean a written or printed certificate which allows a person to engage in some phase of the liquor industry, and which may be issued by the State Commissioner of Revenue, by a municipality, or by a county, pursuant to the provisions of this Chapter or Article 2C of Chapter 105.

(14) The word 'permit' shall mean a written or printed authorization to engage in some phase of the liquor industry which may be issued by the State Board of Alcoholic Control under the provisions of this Chapter.

"§ 18A-3. Manufacture, sale, etc., forbidden, except as expressly authorized. — (a) No person shall manufacture, sell, barter, transport, import, export, deliver, furnish, purchase, or possess any intoxicating liquor except as authorized in this Chapter.

(b) No person who does not have an appropriate permit and license (as defined in this Chapter) shall have any intoxicating liquor mailed or shipped to him from outside this State.

"§ 18A-4. Exemptions. — (a) The provisions of this Chapter shall not apply to grain alcohol received by duly licensed physicians, druggists, dental surgeons, college, university, and State laboratories, and manufacturers of medicine, when intended to be used in compounding, mixing, or preserving medicines or medical preparations, or for surgical purposes, when obtained as hereinbefore provided.

(b) Nothing contained in this Chapter shall prohibit the importation into the State and the delivery and possession in the State for use in industry, manufacturers, and arts of any denatured alcohol or other denatured spirits that are compounded and made in accordance with the formulas prescribed by acts of Congress of the United States and regulations made under authority thereof by the Treasury Department of the United States and the Commissioner of Internal Revenue thereof and are not now subject to internal revenue tax levied by the government of the United States.

(c) This Chapter shall not apply to liquor required and used by bona fide hospitals or sanatoriums established and maintained for the treatment of patients addicted to the use of liquor, morphine, opium, cocaine, or other deleterious drugs when the liquor is administered to patients actually in such hospitals or sanatoriums for treatment, and when the liquor is administered as an essential part of the particular system or method of treatment and exclusively by or under the direction of a duly licensed and registered physician of good moral character and standing.

(d) This Chapter shall not prohibit the manufacture or sale of cider or vinegar.

(e) Nothing in this Chapter shall prevent the purchase or possession of unfortified wine for sacramental purposes by any organized church or ordained minister of the gospel.

(1) for scientific, chemical, mechanical, industrial, medicinal, and culinary purposes;

(2) for use by those authorized to procure the same tax free, as provided by the acts of Congress and regulations promulgated thereunder;

(3) in the manufacture of denatured alcohol produced and used as provided by the acts of Congress and regulations promulgated thereunder;

(4) in the manufacture of patented, patent, proprietary, medicinal, pharmaceutical, antiseptic, toilet, scientific, chemical, mechanical, and industrial preparations or products unfit for beverage purposes;

(5) in the manufacture of flavoring extracts and syrups unfit for beverage purposes.

(g) This Chapter shall not apply to wine (fortified or unfortified) and liquor used for the manufacture of pharmaceutical products, as authorized by the State Board of Alcoholic Control.

"§ 18A-5. Manufacturing liquor, utensils, or stamps. — (a) It is unlawful for any person to distill, manufacture, or in any manner make, or for any person to aid, assist, or abet any such person in distilling, manufacturing, or in any manner making any intoxicating liquor, except as expressly authorized in this Chapter.

(b) It shall be unlawful for any person knowingly to permit or allow any distillery or other apparatus for the making or distilling of spirituous liquors to be set up for operation or to be operated on lands in his possession or control.

(c) It shall be unlawful to advertise, manufacture, sell, or possess for sale any utensil, contrivance, machine, preparation, compound, tablet, substance, formula, direction, or recipe advertised, designed, or intended for use in the unlawful manufacture of intoxicating liquor. It shall be unlawful to have or possess any liquor or property designed for the manufacture of liquor intended for use in violating this Chapter, or which has been so used, and no property rights shall exist in an}' such liquor or property.

(d) The willful manufacture or causing to be manufactured or the willful possession of any counterfeit or unauthorized federal revenue stamp or local A. B.C. board stamp shall be unlawful.

"§ 18A-6. Non-taxpaid liquor. — It shall be unlawful for any person to have in his possession or transport any non-taxpaid liquor, except as authorized by law. In the event of a violation of this section, the liquor and any equipment or materials designed or intended for use in the manufacture, sale, or possession of non-taxpaid liquor shall be seized and disposed of as provided in G.S. 18A-24. Any vehicle or other conveyance used in the transportation of non-taxpaid liquor shall be seized and disposed of as provided in G.S. 18A-21.

"§ 18A-7. Keeping liquor for sale; evidence. — (a) It is unlawful for any person, firm, association or corporation, by whatever name called, to have or keep in possession for the purpose of sale, except as authorized by law, any intoxicating liquors; and proof of any one of the following facts shall constitute prima facie evidence of a violation of this section:

(1) The possession of a license from the government of the United States to sell or manufacture spirituous liquors; or

(2) The possession of more than one gallon of spirituous liquors at any one time, whether in one or more places; or

(3) The possession of more than five gallons of wine (fortified or unfortified) at any time, whether in one or more places; or

(4) The possession of more than 20 gallons of malt beverages at any one time, whether in one or more places, other than draft malt beverages in kegs; or

(5) The possession of any quantity whatsoever of non-taxpaid liquor.

(b) The possession of liquor by any person not legally permitted under this Chapter to possess liquor shall be prima facie evidence that such liquor is kept for the purpose of being sold, bartered, exchanged, given away, furnished, or otherwise disposed of in violation of the provisions of this Chapter.

"§ 18A-8. Sale to or purchase by minors. — (a) It shall be unlawful for:

(1) any person, firm, or corporation knowingly to sell or give any malt beverages or unfortified wine to any person under 18 years of age;

(2) any person under 18 years of age to purchase or possess, or for anyone to aid or abet such person in purchasing, any malt beverages or unfortified wine;

(3) any person, firm, or corporation knowingly to sell or give any alcoholic beverages to any person under 21 years of age; or

(4) any person under 21 years of age to purchase or possess, or for anyone to aid or abet such person in purchasing, any alcoholic beverages.

(b) Whenever a sale of malt beverages or unfortified wine is made to a person under the age of 18 years, it shall be prima facie evidence that the person making the sale had knowledge that the purchaser was under the age of 18 years. Such prima facie evidence may be rebutted by showing that the purchaser produced for inspection a driver's license, selective service card, school identification card, or military identification card showing the age of the purchaser to be 18 years or more and the description of the physical appearance of the person on the identification card reasonably describes the purchaser. In the absence of such identification, the prima facie evidence of knowledge of age may be rebutted by the vendor by other evidence which reasonably indicated at the time of sale that the purchaser was 18 years of age or more.

"§ 18A-9. Federal license prohibited. — (a) It is unlawful for any person, firm, partnership, or corporation to procure, obtain, possess, purchase, permit to be issued, or have issued to any person a license, permit, stamp, or other authorization from the government of the United States to manufacture, sell, possess, transport, handle, or purchase intoxicating liquors in the State of North Carolina. Provided, this section shall not apply to the Department of Defense and agencies of the armed services operating thereunder, nor to any agency, department, official, or agent of the State of North Carolina or any other person or persons engaged in any activity or transactions authorized under this Chapter.

(b) The possession of a license or the issuance to any person of a license to manufacture, rectify, or sell, at wholesale or retail, spirituous liquors by the United States government or any officer thereof in any county, city, or town where the manufacture, sale, or rectification of spirituous liquors is forbidden by the laws of this State shall be prima facie evidence that the person having such license, or to whom the license was issued, is guilty of doing the act permitted by the license in violation of the laws of this State. On the trial of any person charged with the violation of any such laws, it shall be competent to prove that such a license is in the possession of or has been issued to such person by the testimony of any witness who has personally examined the records of the government office where the official record of such licenses is kept.

"§ 18A-10. Advertisements. — It shall be lawful to advertise anywhere or by any means or method, liquor or the manufacture, sale, keeping for sale, or furnishing of the means by which it may be obtained, or where, how, from whom, or at what price it may be obtained, provided such advertising complies with the rules and regulations of the State Board of Alcoholic Control.

"§ 18A-11. Place of sale and delivery; place of prosecution. — In case of a sale of liquor where the delivery thereof was made by a common or other carrier, the sale and delivery shall be deemed to be made in the county wherein the delivery was made by such carrier or the consignee, his agent or employee, or in the county wherein the sale was made, or from which the shipment was made, and prosecution for such sale or delivery may be had in either county.

"§ 18A-12. Indictment and summons. — (a) In any affidavit, information, warrant, or indictment for the violation of this Chapter, separate offenses may be united in separate counts, and the defendant may be tried on all at one trial, and the penalty for all offenses may be imposed.

"§ 18A-13. Mixed beverages. — (a) When any person applies to a county or municipal alcoholic control board for a license or permit for the sale of mixed beverages on any premises in the State, pursuant to any public or local act, said person shall also file written application for a permit to be issued by the State Board.

(b) No permit shall be issued by the State Board unless the premises and licensee meet the requirements established in the Comprehensive Plan approved by the State Board, and the licensee meets the requirements contained in G.S. 18A-39.

(c) The permit shall be an on-premise permit and the provisions of 18A-43 through 18A-45 shall be applicable to any premises or licensee selling alcoholic beverages under any special or local act.

(d) No permit shall be issued until after the local board certifies that the licensee and the premises meet the requirements of all applicable local and State laws and regulations, and any permit shall remain the property of the State Board, and shall be surrendered upon notice from the State Board.

(e) The State Board shall suspend or revoke the permit for a violation of any provision of the local act or of Chapter 18 or Chapter 18A of the General Statutes.

(f) All permits shall be for a period of one year unless sooner suspended or revoked and shall expire on April 30 of each year.

(g) Application for permit or renewal of permit shall be accompanied by a fee of one hundred and fifty dollars ($150.00), payable to the State Board of Alcoholic Control for deposit with the State Treasurer, and no fee is refundable in case a permit is refused, suspended, or revoked.

(h) The State Board shall adopt rules and regulations governing the transportation, possession, serving and use of mixed beverages, and it shall be unlawful and punishable as a misdemeanor for any person to violate the provisions of this section or any rule or regulation duly adopted by the State Board.

"Article 2.

"A.B.C. Boards and Enforcement.

"Part 1.

"A.B.C. Boards.

"§ 18A-14. State Board of Alcoholic Control. — (a) A State Board of Alcoholic Control is hereby created, and shall consist of a Chairman and two associate members. The Chairman and associate members of the Board shall be men well known for their character, ability, and business acumen. The Chairman of the Board shall devote his full time to his official duties. He shall receive a salary to be fixed by the Governor, subject to the approval of the Advisory Budget Commission, together with necessary traveling expenses allowed under the general law. The two associate members of the Board shall receive no compensation for their services except the per diem, subsistence, and travel allowances provided for members of similar State boards and commissions by Chapter 138 of the General Statutes.

(b) The Chairman and the associate members of the State Board of Alcoholic Control shall be appointed by the Governor and shall serve at the pleasure of the Governor. The Governor shall fill any vacancy arising on the State Board by appointment of a successor, to serve at the pleasure of the Governor. The Chairman of the Board shall have such powers and perform such duties as the Board shall prescribe, including the authority to appoint, promote, demote, and discharge all subordinate officers and employees of the State Board of Alcoholic Control. All such officers and employees shall perform such duties as the Chairman may assign.

"§ 18A-15. Powers and authority of State Board. — The State Board of Alcoholic Control shall have power and authority as follows:

(1) to see that all the laws relating to the sale and control of intoxicating liquor are observed and performed;

(2) to audit and examine the accounts, records, books, and papers relating to the operation of county and municipal stores or to have the same audited;

(3) to fix the retail prices of all alcoholic beverages sold in the county and municipal A.B.C. stores at such levels as shall promote the temperate use of these beverages and as may facilitate policing, which price shall be uniform throughout the State; to compute the taxes levied by G.S. 105-113.93 and 105-113.94 on the retail prices so fixed; to determine the total prices of all such alcoholic beverages, which total price shall be the sum of the retail price plus the tax levied by G.S. 105-113.93 and 105-113.94; and to notify the stores periodically of such prices. The State Board of Alcoholic Control shall cause the several county and municipal alcoholic boards of control to add to the established retail prices of all alcoholic beverages sold in said county and municipal A.B.C. stores as provided above the sum of five cents (5¢) per bottle on every bottle of alcoholic beverages sold in said stores, which shall be in addition to the retail prices of all alcoholic beverages as set by the State Board of Alcoholic Control. This five cents (5¢) per bottle increase in the retail prices of alcoholic beverages sold by county or municipal A.B.C. stores shall not be subject to the tax levied in G.S. 105-113.93 and 105-113.94, but the clear proceeds of the additional retail price of five cents (5¢) per bottle as provided above shall be remitted to the State Treasurer, accompanied by forms or reports to be prescribed and furnished by the State Board of Alcoholic Control, which remittances shall be placed in the general fund and shall be subject to appropriation by the General Assembly to the same degree as any other moneys deposited in said general fund. Said reports and remittances of the five cents (5¢) per bottle as herein provided shall be made monthly by the local boards on or before the fifteenth day of the succeeding month; that to every bottle of alcoholic beverages containing two ounces or less sold in said stores there shall be added to the price as established by the State Board of Alcoholic Control the sum of one cent (1¢) in lieu of the five cents (5¢) per bottle provided herein above and said sum shall be remitted and accounted for in the same manner as herein above provided on bottles containing more than two ounces.

(4) to remove any member, or members, of county and municipal boards whenever in the opinion of the State Board, such member, or members, of the county or municipal board, or boards may be unfit to serve thereon;

(5) to test any and all alcoholic beverages that may be sold, or proposed to be sold to the county or municipal stores, and to install and operate such apparatus, laboratories, or other means or instrumentalities and employ to operate the same such experts, technicians, employees and laborers as may be necessary to operate the same, in accordance with the opinion of the Board. In lieu of establishing and operating laboratories as above directed, the Board may, with the approval of the Governor and the Commissioner of Agriculture, arrange with the State Chemist to furnish such information and advice and to perform such analyses and other laboratory services as the Board may consider necessary, or they may, if they deem advisable, cause such tests to be made otherwise;

(6) to supervise purchasing by the county and municipal boards when the State Board is of the opinion that it is advisable for it to exercise such power in order to carry into effect the purpose and intent of this Chapter, with full power to disapprove any such purchase. At all times it shall have the right to inspect all invoices, papers, books, and records in the county or municipal stores or boards relating to purchases;

(7) to exercise the power to approve or disapprove in its discretion all regulations adopted by the several county and municipal stores for the operation of said stores and the enforcement of alcoholic beverage control laws which may be in violation of the terms or spirit of this Chapter;

(8) to require that a sufficient amount be so allocated as to insure adequate enforcement; the amount shall in no instance be less than five per cent (5%) nor more than ten per cent (10%) of the net profits arising from the sale of alcoholic beverages;

(9) to remove, in case of violation of the terms or spirit of this Chapter, officers employed, elected, or appointed in the several counties and municipalities where stores may be operated;

(10) to approve or disapprove, in its discretion, the opening and location of county and municipal stores; provided that in the location of control stores in any county in which a majority of the votes have been cast for liquor control stores, no store or stores shall be located in any community or town in which a majority of the votes cast were against control; provided further, however, that stores may be located in such communities and towns if and when as many as fifteen per cent (15%) of the qualified voters therein by petition, at any time after eighteen months since the last election on such question, have requested the location of such a store or stores in such communities or towns and the State Board has found, upon due investigation after receipt of such petition, that a majority of the qualified electors in such community or town are at the time such investigation is made in favor of establishing such store or stores. Each county and municipality that may be entitled to operate stores for the sale of alcoholic beverages shall be entitled to operate at least one store for such purpose. No additional stores in each of said counties and municipalities shall be opened until and unless their opening and their place of location shall first be approved by the State Board, which at any time may withdraw its approval of the operation of any additional county or municipal store when the store is not operated efficiently and in accordance with the alcoholic beverage control laws and all valid regulations prescribed therefor, or whenever, in the opinion of the State Board, the operation of any county or municipal store shall be inimical to the morals or welfare of the community in which it is operated or for such other cause, or causes, as may appear to the State Board sufficient to warrant the closing of any county or municipal store;

(11) to require the use of a uniform accounting system in the operation of all county and municipal stores hereunder and to provide in said system for the keeping therein and the record of all such information as may, in the opinion of the said State Board, be necessary or useful in its auditing of the affairs of the said county and municipal stores, as well as in the study of such problems and subjects as may be studied by said State Board in the performance of its duties;

(12) to grant, to refuse to grant, or to revoke permits for any person, firm, or corporation to do business in North Carolina in selling alcoholic beverages to or for the use of any county or municipal store and to provide and to require that such information be furnished by such person, firm, or corporation as a condition precedent to the granting of such permit, or permits, and to require the furnishing of such data and information as it may desire during the life of such permit, or permits, and for the purpose of determining whether such permit, or permits, shall be continued, revoked, or regranted after expiration dates. No permit, however shall be granted by the State Board to any person, firm, or corporation when the State Board has reason sufficient unto itself to believe that such person, firm, or corporation has furnished to it any false or inaccurate information or is not fully, frankly, and honestly cooperating with the State Board and the several county and municipal boards in observing and performing all liquor laws that may now or hereafter be in force in this State, or whenever the Board shall be of opinion that such permit ought not to be granted or continued for any cause;

(13) to permit both the establishment of warehouses for storing alcoholic beverages within the State and the storage of alcoholic beverages in warehouses already established and to prescribe rules and regulations for the storage of such beverages and the withdrawal of the same therefrom. Such warehousing or bailment of alcoholic beverages as may be made hereunder shall be for the convenience of delivering to alcoholic boards of control and others authorized to purchase the same and shall be under the strict supervision and subject to all of the rules and regulations of the State Board of Control relating thereto;

(14) to adopt, amend, or repeal reasonable rules and regulations for the purpose of carrying out the provisions of this Chapter, but not inconsistent herewith, which rules and regulations shall become effective when filed as provided by law.

(15) to appoint or commission A.B.C. officers, hearing officers, and other enforcement personnel authorized by Part 2 of this Article.

The State Board shall have all other powers which may be reasonably implied from the granting of express powers herein named, together with such other powers as may be incidental to, or convenient for, carrying out and performing the powers and duties herein given to the Board.

"§ 18A-16. County boards of alcoholic control. — (a) In each county that may be permitted to engage in the sale of alcoholic beverages, there is hereby created a county board of alcoholic control, to consist of a chairman and two other members.

The members of this board shall be well known for their character, ability, and business acumen. The members of the board shall be selected in each respective county in a joint meeting of the board of county commissioners, the county board of health, and the county board of education. Each person voting at this joint meeting shall have only one vote, notwithstanding the fact that there may be instances in which some persons are members of another board.

The terms of office of the members of the county boards of alcoholic control shall be as follows: the chairman, who shall be so designated by the appointing boards, shall serve for his first term a period of three years, and one member shall serve for his first term a period of two years and the other member shall serve for a period of one year, all terms beginning with the date of their appointment. After each term has expired, each successor in office shall serve for a period of three years and shall be appointed in the same manner as herein provided in this section.

Any member of any of the county boards hereinabove referred to in this section may be removed at any time by the composite board consisting of the board of county commissioners, the board of education, and the board of health whenever such composite board finds by a majority vote of its entire membership that a member or members are unfit to serve on the county alcoholic beverage control board, each member of the composite board having only one vote as above provided for the selection of members of the county alcoholic beverage control boards. If any member of the county board is removed hereunder, his successor shall be selected to serve out the time for which such member was originally selected.

Upon the death or resignation of the chairman or any other member of the county board of alcoholic control, whether selected under the provisions of this Article or under the provisions of Chapter 418 or Chapter 493, Public Laws of 1935, before the expiration of the term of office for which said chairman or member has been appointed, elected, or selected, his successor to fill out the unexpired term shall be selected at a joint meeting of the board of county commissioners, the county board of health, and the county board of education, which joint meeting shall be held within 10 days after such resignation or death. This meeting shall be called by the chairman or some other member of the county board of alcoholic control by giving notice to each member of when and where it will be held.

(b) No person shall be appointed a member of either the State Board or any county board or employed thereby who is a stockholder in any brewery or the owner of any interest therein in any manner whatsoever, or interested therein directly or indirectly, or likewise interested in any distillery or other enterprise that produces, mixes, bottles, or sells alcoholic beverages, or related by blood to a degree of first cousin or closer to any person likewise interested or associated in business with any person likewise interested. Neither the State Board nor any county board shall employ any person who is interested in, directly or indirectly, or related by blood to a degree of first cousin or closer to any person interested in any firm, person, or corporation permitted to sell alcoholic beverages in this State. Notwithstanding the provisions of this section the State Board may, upon its own motion and its discretion, make determinative rulings as to the exception to the rules and determine possible conflict of interest.

(c) The salaries of the members of the said county board shall be fixed by the joint meeting of the several boards that appoint them. They shall be fixed with the view to securing the very best members available, with due regard to the fact that such salaries shall be adequate compensation but not large enough to make said positions unduly attractive or the objects of political aspirations.

(d) The several members of the county board shall give bond for the faithful performance of their duties, in the penal sum of five thousand dollars ($5,000). This bond shall be payable to the State of North Carolina and to the county in which said board performs its duties with some corporate surety, which surety shall be satisfactory to and approved by the county attorney of said county and the chairman of the State Board and shall be deposited with the chairman of the State Board. The State Board for and on behalf of the State of North Carolina and the county named in said bond shall each be secured therein to the full amount of the penalty thereof, and the recovery or payment of any sums due thereunder to either shall not diminish or affect the right of the other obligee in said bond to recover the full amount of the said penalties thereof. The giving and the approval of such bond shall be a part of the qualification of said members, and no member shall be entitled to exercise any of the functions or powers incident to his appointment until and unless the said bond has been given and approved as herein provided. The three joint boards referred to above shall be authorized to relieve any member of the county boards who does not handle any money or funds from furnishing such bond, and shall be further authorized to require bond in excess of five thousand dollars ($5,000) of any member of the board handling money or funds if the joint boards deem it advisable to increase such bond.

"§ 18A-17. Powers and duties of county boards. — The said county boards shall each have the following powers and duties:

(1) control and jurisdiction over the importation, sale and distribution of alcoholic beverages within its respective county;

(2) power to buy and to have in its possession and to sell alcoholic beverages within its county;

(3) power and authority to adopt rules and regulations governing the operation of stores within its county and relating to the carrying out of the provisions and purposes of this Chapter;

(4) to prescribe and regulate and direct the duties and services of all employees of said county board;

(5) to fix the hours for the opening and closing of stores operated by it. No store, however, shall be permitted to remain open between the hours of 9:00 p.m. and 9:00 a.m.;

(6) to require any county stores to close on such days as it may designate, but all stores shall remain closed on Sundays, New Year's Day, Fourth of July, Labor Day, Thanksgiving, Christmas Day and Statewide election days;

(7) to import, transport, receive, purchase, sell, and deliver and have in its possession for sale for present and future delivery alcoholic beverages;

(8) to purchase or lease property, furnish, and equip buildings, rooms, and accommodations as and when required for the storage and sale of alcoholic beverages and for distribution to all county stores within said county;

(9) to sell at public auction, as provided by law, any real or personal property which the board, in its discretion, deems unnecessary for the proper operation of its stores;

(10) to borrow money, guarantee the payment thereof and the interest thereon, in such manner as may be required or permitted by law, and to issue, sign, endorse, and accept checks, promissory notes, bills of exchange, and other negotiable instruments and to do all such other and necessary things as may be required or may be convenient in the conduct of the liquor stores in its county;

(11) to investigate and aid in the prosecution of violations of this Chapter and other liquor laws, by whatever name called, and to seize alcoholic beverages in said county sold, kept, imported, or transported illegally and to apply for confiscation thereof and to cooperate in the prosecution of offenders in any court in said county;

(12) to require A.B.C. stores to sell alcoholic beverages at the prices fixed by the State Board of Alcoholic Control and to prescribe to whom the same may be sold;

(13) to locate stores in its county and to provide for the management thereof and to appoint and employ for each store conducted by it at least one person who shall be known as "manager" thereof. The duty of this manager shall be to conduct the store under directions of the county board and to carry out the law applying thereto. This manager shall give bond for the faithful performance of his duties in such sum as may be fixed by the county board, with sufficient corporate surety. Said surety, or sureties thereon, shall be approved by the county board as a part of the qualifications of the manager for his appointment, and the county board shall have the right to sue on said bond and to recover for all failures on the part of the manager faithfully to perform the duties as manager, to the extent of any loss occasioned by the manager on his part; but as against the surety, or sureties, thereon, such aggregate recovery, or recoveries, shall not exceed the penalty of said bond;

(14) to expend for law enforcement a sum not less than five per cent (5%) nor more than ten per cent (10%) of the total profits to be determined by quarterly audits, and in the expenditure of said funds to employ one or more persons to be appointed by and directly responsible to the respective county boards; the persons so appointed shall be designated county A.B.C. officers. Local A.B.C. Boards shall submit quarterly reports to the State A.B.C. Board, under regulations prescribed by said State Board, evidencing compliance with provisions of this section requiring expenditures for law enforcement.

In addition, any county or municipal board shall expend not less than seven percent (7%) of its total profits, to be determined by quarterly audits, for education on the excessive use of alcoholic beverages and for the rehabilitation of alcoholics.

Expenditures for the purposes specified in this paragraph may be made, in the discretion of the board, either for programs carried on by the board or as appropriations to nonprofit corporations or agencies sponsoring or engaging in such education, research, or rehabilitation.

(15) to discontinue the operation of any store in its county whenever it appears to the board that the operation thereof is not sufficiently profitable to justify a continuance of its operation, or when, in the board's opinion, the operation of any store is inimical or hurtful to the morals or welfare of the community in which it is operated, or when said county board may be directed to close any store by the State Board.

All the powers and duties herein conferred upon county boards, or required of them, shall be subject to the powers herein conferred upon the State Board, and whenever or wherever herein the State Board has been given power to approve or disapprove anything in respect to county stores or county boards, then no power on the part of the county boards and no act of any county board shall be exercisable or valid until and unless it has been approved by the State Board.

"§ 18A-18. Salaries and expenses; net profits. — (a) All salaries and expenses incurred under the provisions of this Article, except those provided for in G.S. 18A-14, shall be paid out of the proceeds of the sales of the alcoholic beverages referred to in this Article. All salaries and expenses of the county boards and their employees shall be paid out of the receipts for their sales as operating expenses.

(b) After deducting the amount required to be expended for enforcement as herein provided and retaining sufficient and proper working capital, the amount to be determined by the board, and except as hereinbefore provided in Chapters 493 and 418 of the Public Laws of 1935, the entire net profits derived from any stores shall be paid quarterly to the general fund of each respective county wherein county stores are operated.

"Part 2.

"Enforcement.

"§ 18A-19. Director of Enforcement; hearing officers; State A.B.C. officers. — (a) The State Board of Alcoholic Control shall appoint a person to be known as "Director of the Enforcement Division," who shall be in charge of the administration of such division. The Board may also appoint one or more assistants to the Director and one or more hearing officers, all of whom shall have full authority to make investigations, hold hearings, and make findings of fact. Upon the approval by the State Board of the findings and orders of suspension or revocation of the permit of any licensee, the findings of the assistant or the hearing officer shall be deemed to be the findings and the order of the Board.

(b) The State Board may commission as State A.B.C. officers such regular employees (including the Chairman) as the Board designates for the purpose of enforcing the provisions of this Chapter. Such employees shall receive no additional compensation for performing the duties of A.B.C. officer.

Any regular employee of the State A.B.C. Board commissioned as an A.B.C. officer shall have Statewide jurisdiction. Such officers shall have the same powers and authorities as peace officers generally, and may arrest without a warrant as authorized in G.S. 15-41.

Each employee of the State Board commissioned as an A.B.C. officer under this Chapter shall give a bond with a good surety, payable to the State of North Carolina, in a sum not less than one thousand dollars ($1,000), conditioned upon the faithful discharge of his duty as an A.B.C. officer. The bond shall be duly approved by and filed in the office of the Insurance Commissioner and recieved in evidence in all actions and proceedings in this State.

Before any employee of the State Board, commissioned as an A.B.C. officer, shall exercise any power of arrest under this Chapter, he shall take the oath required of public officers before an officer authorized to administer oaths.

(c) All State A.B.C. officers shall have authority to investigate the operation of the licensed premises of all persons licensed under this Chapter, to examine the books and records of such licensee, to procure evidence with respect to the violation of this Chapter or any rules and regulations adopted thereunder, and to perform such other duties as the Board may direct. A.B.C. officers shall have the right to enter any licensed premises in the State in the performance of their duty, at any hour of the day or night. Refusal by a permittee or by any employee of a permittee to permit such officers to enter the permises shall be cause for revocation or suspension of the permit of the permittee.

(d) Notices, orders, or demands issued by the State Board for the surrender of permits may be served and executed by the A.B.C. officers employed by the Board, and these officers, while serving and executing such notices, orders, or demands, shall have all the power and authority possessed by peace officers when serving and executing warrants charging violation of the criminal laws of the State.

"§ 18A-20. Powers of local officers. — (a) County A.B.C. officers shall, after taking the oath prescribed by law for peace officers, have the same powers and authorities within their respective counties as other peace officers. And any person so appointed, or any other peace officer while in hot pursuit of anyone found to be violating the liquor laws of this State, shall have the right to go into any other county of the State and arrest such offender therein so long as the hot pursuit of such person continues; and the common law of hot pursuit shall be applicable to said offenses and such officers. Any law enforcement officer appointed by a county board and any other peace officer is hereby authorized, upon request of the sheriff or other lawful officer in any other county, to go into such other county and assist in suppressing a violation of the liquor law therein, and while so acting shall have such powers of a peace officer as are granted to him in his own county and be entitled to all the protection provided for said officer while acting in his own county.

(b) Within their respective jurisdictions, all sheriffs, deputy sheriffs, municipal police, and local A. B.C. officers shall have authority to investigate the operation of premises licensed under any provision of this Chapter and to procure evidence with respect to violations of this Chapter or any rule or regulation promulgated pursuant thereto. These law enforcement officers shall have the right to enter the licensed premises in the performance of their duties at any hour of the day or night.

"§ 18A-21. Seizure of liquor, equipment, materials, and conveyance; arrests; sale of property. — (a) When any officer of the law shall discover any person in the act of transporting, in violation of law, intoxicating liquor, or equipment or materials designed or intended for use in the manufacture of intoxicating liquor, in any vehicle, motor vehicle, water or air craft, or other conveyance, it shall be his duty to seize any and all intoxicating liquor, and any and all equipment or materials designed or intended for use in the manufacture of intoxicating liquor, found therein being transported contrary to law. Whenever intoxicating liquor, or equipment or materials designed or intended for use in the manufacture of intoxicating liquor, transported or possessed illegally, is seized by an officer, he shall take possession of the vehicle, motor vehicle, water or air craft, or any other conveyance, and shall arrest any person in charge thereof. (Provided, that the transportation of the legal amount of alcoholic beverages in the passenger area of a motor vehicle with the cap or seal on the container or containers open or broken shall not be ground for confiscation of the motor vehicle.) The officer shall at once proceed against the person arrested in any court having competent jurisdiction; but the vehicle or conveyance shall be returned to the owner upon execution by him of a good and valid bond, with sufficient sureties, in a sum double the value of the property, which said bond shall be approved by said officer and shall be conditioned to return said property to the custody of said officer on the day of trial to abide the judgment of the court. All liquor and all equipment and materials seized under this section shall be held by the officer seizing same and shall, upon the acquittal of the person so charged, be returned to the established owner, except that any non-taxpaid liquor shall be destroyed. In the event of conviction or default of appearance of the person charged, or in event no criminal proceedings are initiated, the liquor, equipment, and materials shall be disposed of as provided in G.S. 18A‑24. Provided, that any taxpaid spirituous liquor so seized shall within 10 days be turned over to the board of county commissioners, which shall within 90 days from the receipt thereof either turn it over to hospitals for medicinal purposes or sell it to alcoholic beverage control stores within the State of North Carolina (the proceeds of such sale being placed in the school fund of the county in which such seizure was made) or destroy it. Any malt beverages or wine(fortified or unfortified), so seized for being transported or possessed illegally, shall be destroyed.

(b) Unless the claimant can show that the vehicle or other conveyance seized is his property and that it was used in transporting liquor, or equipment or materials designed or intended for use in the manufacture of intoxicating liquor, without his knowledge and consent, with the right on the part of the claimant to have a jury pass upon his claim, the court shall order a sale by public auction of the property seized. The officer making the sale, after deducting the expenses of keeping the property, the fee for the seizure, and the costs of the sale, shall pay all liens, according to their priorities, which are established, by intervention or otherwise at said hearing or in other proceedings brought for the purpose, as being bona fide and as having been created without the lienor's having any notice that the conveyance was being used for illegal transportation of liquor, equipment or materials designed or intended for use in the manufacture of intoxicating liquor, and shall pay the balance of the proceeds to the treasurer or the proper officer in the county who receives fines and forfeitures, to be used for the school fund of the county. All liens against property sold under the provisions of this section shall be transferred from the property to be proceeds of the sale of the property.

(c) If, however, no one is found claiming the vehicle, water or air craft, or other conveyance, the taking of the same, with a description thereof, shall be advertised in some newspaper published in the city or county where taken, or, if there be no newspaper published in such city or county, in a newspaper having circulation in the county, once a week for two weeks and by handbills posted in three public places near the place of seizure. If no claimant appears within 10 days after the last publication of the advertisement, the property shall be sold, and the proceeds, after deducting the expenses and costs, shall be paid to the treasurer or proper officer in the county who receives fines and forfeitures, to be used for the school fund of the county: Provided, that nothing in this section shall be construed to authorize any officer to search any vehicle or other conveyance or baggage of any person without a search warrant duly issued, except where the officer sees or has absolute personal knowledge that there is intoxicating liquor, equipment or materials designed or intended for use in the manufacture of intoxicating liquor, in the vehicle or baggage.

(d) When any vehicle or other conveyance confiscated under the provisions of this section is found to be specially equipped or modified from its original manufactured condition so as to increase its speed, the court shall, prior to sale, order that the special equipment or modification be removed and destroyed and the vehicle restored to its original manufactured condition. However, if the court should find that such equipment and modifications are so extensive that it would be impractical to restore the vehicle to its original manufactured condition, then the court may order that the vehicle be turned over to such governmental agency or public official within the territorial jurisdiction of the court as the court shall see fit to be used in the performance of official duties only, and not for resale, transfer, or disposition other than as junk: Provided, that nothing herein contained shall affect the rights of lienholders and other claimants to said vehicles as set out in this section; and provided further that where such equipment and modifications are so extensive that it would be impractical to restore said vehicle to its original manufactured condition and no one is found claiming said vehicle, water or air craft, or other conveyance, then in lieu of selling the same, after advertisement, and if no claimant appears after the last publication of the advertisement, then the court may order that the vehicle, water or air craft, or other conveyance be turned over to a governmental agency or public official within the territorial jurisdiction of the court, as the court shall see fit, to be used in the performance of official duties only, and not for resale, transfer, or disposition other than as junk.

(e) It shall be unlawful for any State, county, township, or municipal officer to use or cause to be used for any purpose whatsoever any vehicle or other article of personal property seized by said officer for the reason that the owner of said property or one in possession thereof at time of seizure has violated the terms of the State or federal liquor laws, or any other laws, until the respective rights of the owner or person in possession at time of seizure, or mortgagee if one should intervene, are passed upon by the proper court, and final order is made as to proper disposition of said personal property so seized.

It shall be the duty of the officer seizing said vehicle or other personal property to store same in a safe and suitable place, until final disposition is ordered. Municipalities and counties shall provide storage facilities for vehicles and all other property seized pursuant to any provision of this Chapter; and the officer shall not be liable for the costs of storage.

"§ 18A-22. Sheriffs and police to search for and seize distilleries; confiscation; disposal of property. — (a) It is the duty of the sheriff of each county in the State and of the police of each incorporated town or city in the State to search for and seize any distillery or apparatus used for the manufacture of intoxicating liquor in violation of the laws of North Carolina, and to deliver same, with any materials used for making such liquor found on the premises, to the board of county commissioners, who shall confiscate the same and shall cause the distillery to be cut up and destroyed, in their presence or in the presence of a committee of the board, and who may dispose of the material, including the copper or other material from the destroyed still or apparatus, in such manner as they may deem proper.

(b) It is the duty of the sheriff and other officers mentioned in this section to seize and then and there destroy any and all liquor which may be found at any distillery for the manufacture of intoxicating liquor in violation of law, and to arrest and hold for trial all persons found on the premises engaged in distilling or aiding or abetting in the manufacture or sale of intoxicating liquor.

"§ 18A-23. Search warrants. — Search warrants may be obtained as provided in Article 4 of Chapter 15 of the General Statutes.

"§ 18A-24. Disposal of seized property. — Any liquor, or equipment or materials designed or intended for use in the unlawful manufacture, sale, or possession of liquor, seized with or without a warrant shall be held by the officer seizing same, and upon acquittal of the defendant shall be returned to the established owner, except that any non-taxpaid liquor shall be destroyed. In the event of conviction or default of appearance of the person charged, or in event no criminal proceedings are initiated, the liquor, equipment, and materials shall be destroyed, sold or otherwise disposed of as ordered by the court. Provided, however, any taxpaid spirituous liquor so seized shall within 10 days be turned over to the county commissioners, who shall within 90 days from the receipt thereof turn it over to hospitals for medical purposes or sell it to alcoholic beverage control stores within North Carolina (the proceeds of the sale being placed in the school fund of the county in which the seizure was made) or destroy it. Any malt beverages or wine (fortified or unfortified), so seized for being transported or possessed illegally, shall be destroyed.

"Article 3.

"Alcoholic Beverages.

"§ 18A-25. Prohibited Sales. — (a) No alcoholic beverage shall be sold knowingly by any county or municipal store or the manager thereof or any employee therein at any time other than within the opening and closing hours for the store, as fixed in the manner herein provided, and otherwise as prescribed by the said county board.

The manager and employees of and in any county or municipal store may, in their discretion, refuse to sell alcoholic beverages to any individual applicant, and shall refuse to sell to any person a quantity in excess of what can be lawfully transported.

It shall be unlawful for any person knowingly to buy any alcoholic beverage for any person who has been refused the right to purchase under this section or who is prohibited from purchasing for himself under any other provision of law.

(b) The possession for sale, or sales, of any liquor purchased from any county or municipal store is hereby prohibited.

"§ 18A-26. Transportation of alcoholic beverages. — (a) A person may transport, not for sale or barter, not more than one gallon of alcoholic beverages, except as authorized by permit, to and from any place in the State; but if the cap or seal on the container or containers has been opened or broken, it shall be unlawful to transport the same in the passenger area of any motor vehicle.

It shall be unlawful for any person operating a for-hire passenger vehicle as defined in G.S. 20-38(20)(b) to transport alcoholic beverages except when the vehicle is actually transporting a bona fide paying passenger who is the actual owner of the alcoholic beverages being transported. Alcoholic beverages owned and possessed by each passenger shall be transported in the manner and amount authorized by this section, provided that the provisions of G.S. 2016(a)(8) shall not apply to a person convicted under this section. The transportation of up to one gallon of alcoholic beverages shall not be ground for confiscation of the motor vehicle.

(b) A person may purchase legally outside of this State and bring into the State for his own personal use not more than one gallon of alcoholic beverage: Provided, that the container or containers of said alcoholic beverages are maintained within any vehicle as regulated and provided for in this Chapter.

"§ 18A-27. Transportation of up to five gallons of fortified wine. — (a) Whenever any person desires to purchase or transport more than one gallon but not exceeding five gallons of fortified wine at one time (from an A. B.C. store or any retail permittee), he shall first obtain a 'purchase-transportation permit' from the chairman of the local A.B.C. board, a member of the local board, or the general manager or supervisor of the local board of alcoholic control. No permit shall be issued by any authorized person to:

(1) persons not of good character; or

(2) persons not sufficiently identified, if unknown to the issuing person; or

(3) persons known or shown to be alcoholics or bootleggers.

(b) The permit shall be signed by the person authorized to issue same and it shall authorize the purchaser named therein to purchase and transport the quantity of fortified wine therein indicated not to exceed five gallons. The permit shall be issued by means of a printed form with at least two carbon copies of the same, and on the face of the permit shall appear the following information:

(1) name and address of purchaser;

(2) the name and location of the place where purchase is to be made;

(3) date issued and expiration date;

(4) destination;

(5) signature of a person issuing the permit;

(6) a statement that the permit is valid for only one purchase on the date shown and that the permit must accompany the merchandise during transit and both the merchandise and the permit must be exhibited by purchaser to any law enforcement officer upon request.

(c) The permit herein authorized shall be valid for only one purchase, and it shall expire at 6:00 p.m. of the date shown thereon. No purchase shall be made from any store except the store named on the permit. One copy of the permit shall be retained by the board issuing the same, one copy shall be delivered to the store from which the merchandise is purchased, and one copy shall be retained by the permittee. The permit shall authorize the permittee to transport fortified wine from the place of purchase to the destination indicated thereon. It must accompany the merchandise during transit, and both the merchandise and the permit must be exhibited to any law enforcement officer upon request.

(d) The chairman or any member of a local county or municipal board or the general manager or supervisor of a local alcoholic control board is authorized to issue purchase-transportation permits.

(e) Permits to be used shall be in the form substantially as follows:

ALCOHOLIC BEVERAGE CONTROL BOARD

_____________________________________________________________________ County ____________________________________________________________, North Carolina Date _____________________ 19_____________

PURCHASE-TRANSPORTATION PERMIT

(not to exceed five gallons)

Name of Purchaser _____________________________________________________________

Address __________________________________________________________ Name of Store __________________ Address (of store) _____________________________ Destination _____________________________________________________ Route to Be Used ________________________________

Signed _____________________

(Person authorized to issue)

Board Member

Note: This permit is valid for only one purchase and it shall expire at 6:00 p.m. of the date shown above. Special Note: This permit must accompany the merchandise while in transit. Both the merchandise and the permit must be exhibited to any law enforcement officer upon request.

"§ 18A-28. Transportation of up to five gallons of alcoholic beverage in certain counties and municipalities. — (a) It shall be lawful to purchase, possess, and transport up to five gallons of alcoholic beverages in containers not smaller than one- fifth gallon from a county or municipal A.B.C. store to a named destination within the county; provided, the purchaser has in his possession a "purchase-transportation permit" and complies strictly with the provisions of this section, and provided further that said alcoholic beverages are not being transported for the purpose of sale and that the cap or seal on the container or containers of said alcoholic beverages has not been opened or broken.

(b) Whenever any person desires to purchase or transport more than one gallon of alcoholic beverages at one time, he shall first obtain a purchase-transportation permit from the chairman of the local board, a member of the local board, or the general manager or supervisor of the local board of alcoholic control. No permit shall be issued by any authorized person to:

(1) persons not of good character;

(2) persons not sufficiently identified, if unknown to the issuing person; or

(3) persons known or shown to be alcoholics or bootleggers.

(c) The permit shall be signed by the person authorized to issue it, and it shall authorize the purchaser named therein to purchase and transport the quantity of alcoholic beverages therein indicated not to exceed five gallons. The permit shall be issued by means of a printed form with at least two carbon copies. On the face of the permit shall appear the following information:

(1) name and address of purchaser;

(2) the name and location of the place where purchase is to be made;

(3) date issued and expiration date;

(4) destination;

(5) signature of person issuing the permit;

(d) The permit herein authorized shall be valid for only one purchase, and it shall expire at 6:00 p.m. of the date shown thereon. No purchase based on this permit shall be made from any A.B.C. store except the store named on the permit. One copy of the permit shall be retained by the permittee. The permit shall authorize the permittee to transport the alcoholic beverages from the place of purchase to the destination indicated thereon. The permit must accompany the merchandise during transit and both the merchandise and the permit must be exhibited to any law enforcement officer upon request.

(e) The chairman or any member of a local county or municipal board or the general manager or supervisor of a local alcoholic control board is authorized to issue purchase-transportation permits.

(f) Permits to be used shall be in the form substantially as follows:

ALCOHOLIC BEVERAGE CONTROL BOARD

_____________________________________________________________________ County ____________________________________________________________, North Carolina Date _____________________ 19 _____________

PURCHASE-TRANSPORTATION PERMIT

(not to exceed five gallons)

Name of Purchaser _____________________________________________________________

Signed _____________________

(Person authorized to issue)

Board Member

(g) This section shall apply only to the counties of Alamance, Alleghany, Beaufort, Brunswick, Buncombe, Burke, Caldwell, Carteret, Catawba, Columbus, Craven, Cumberland, Dare, Durham, Edgecombe, Forsyth, Granville, Greene, Halifax, Haywood, Henderson, Hoke, Johnston, Jones, Lenoir, Martin, Mecklenburg, Moore, Nash, New Hanover, Orange, Onslow, Pamlico, Pasquotank, Person, Pitt, Richmond, Rowan, Scotland, Tyrrell, Vance, Wake, Warren, Washington, Wayne, and Wilson, and to the municipalities of Clinton, Concord, Dunn, Garland, Greensboro, Hertford, Jamestown, Maxton, Monroe, Mount Pleasant, North Wilkesboro, Pembroke, Reidsville, Roseboro, Rowland, Sanford, Sparta, St. Pauls, Taylorsville, Wadesboro, and Wilkesboro.

"§ 18A-29. Commercial transportation of alcoholic beverages. — (a) The willful transportation of alcoholic beverages within, into, or through the State of North Carolina in quantities in excess of one gallon (or five gallons with a permit) is prohibited except for delivery to federal reservations to which has been ceded exclusive jurisdiction by the State of North Carolina, for delivery to an A.B.C. store or board, or for transport through this State to another state. The State Board of Alcoholic Beverage Control may adopt further regulations governing the transportation of alcoholic beverages within, into, and through the State of North Carolina for delivery to a federal reservation, A.B.C. stores or boards, or in transit through this State to another state, as it may deem necessary to confine such transportation to legitimate purposes, and may issue transportation permits in accordance with such regulations.

(b) Before any person shall transport over the roads and highways of this State any alcoholic beverages in excess of one gallon (or five gallons with a permit) within, into, or through the State of North Carolina for delivery to a federal reservation exercising exclusive jurisdiction, or in transit through this State to another state, he shall post with the State Board of Alcoholic Beverage Control a bond with surety approved by the Board, payable to the State of North Carolina in the penal sum of one thousand dollars ($1,000), running in the name of the State of North Carolina, conditioned that such person will not unlawfully transport or deliver any alcoholic beverages within, into, or through the State of North Carolina. In case of conviction, the forfeiture shall be paid to the school fund of the county in which the seizure is made, and any such county shall have the right to sue for the same. When such alcoholic beverages are desired to be transported within, into, or through the State of North Carolina, the transportation shall be engaged in only under the following conditions:

(1) Statement as to Bond and Bill of Lading Required. There shall accompany such alcoholic beverages a statement signed by the chairman of the State Board of Alcoholic Beverage Control showing that the bond hereinbefore required has been furnished and approved. There shall accompany such alcoholic beverages at all times during transportation a bill of lading or other memorandum of shipment signed by the consignor showing an exact description of the alcoholic beverages being transported, the name and address of the consignee, and the route to be traveled by the vehicle while in the State of North Carolina; this route must be substantially the most direct route, from the consignor's place of business to the place of business of the consignee.

(2) Route Stated in Bill of Lading to Be Followed. Vehicles transporting alcoholic beverages shall not substantially vary from the route specified in the bill of lading or other memorandum of shipment.

(3) Names of True Consignor and Consignee Must Appear. The name of the consignor on any such bill of lading or other memorandum of shipment shall be the name of the true consignor of the alcoholic beverages being transported, and such consignor shall be only a person who has a legal right to make such shipment. The name of the consignee on any such bill of lading or memorandum of shipment shall be the name of the true consignee of the alcoholic beverages being transported and who had previously authorized in writing the shipment of the alcoholic beverages being transported and who has a legal right to receive such alcoholic beverages at the point of destination shown on the bill of lading or other memorandum of shipment.

(4) Officers May Require Driver to Exhibit Papers. The driver or any person in charge of any vehicle so transporting such alcoholic beverages shall, when required by any sheriff, deputy sheriff, or other peace officer having the power to make arrests, exhibit to such officer such papers or documents required by this law to accompany such shipment.

"§ 18A-30. Possession and consumption of alcoholic beverages at designated places. — It shall be lawful in any county or municipality of this State for any person who is at least 21 years of age to possess, for lawful purposes, alcoholic beverages in quantities not in excess of one gallon, unless otherwise authorized, provided that these alcoholic beverages are obtained from an authorized alcoholic beverage control store within this State or from a lawful source outside this State, and provided that said alcoholic beverages are possessed for a purpose other than for sale or barter, and provided that said alcoholic beverages are purchased, possessed, and consumed in accordance with this and other applicable sections of this Chapter, including the following:

(1) Residence and Related Places. A person may possess and consume said alcoholic beverages in his private residence, or in any private residence of another where permission has been given, or in any hotel or motel room that said person has rented or to which he is invited, or at any place of secondary residence similarly used, where permitted by the owner. A person may also possess and consume said alcoholic beverages, but not in view of the general public, on any other private property not primarily engaged in commercial entertainment and not open to the general public at the time, when such person, association, or corporation has obtained the express permission of the owner or person lawfully in possession of said property, and when said alcoholic beverages are consumed by said person, his family, his bona fide guest, or bona fide guests of the association or corporation; provided, however, that this sentence shall not be construed to permit or in any way or manner authorize the possession or consumption of alcoholic beverages on premises for which a permit is required pursuant to subdivisions (2), (3), or (4) of this section.

(2) Social Establishments. Any person, association, or corporation may furnish facilities located on its premises, which facilities shall not be open to the general public, for the storage of alcoholic beverages for its bona fide members, in quantities not in excess of one gallon for each member, unless otherwise authorized, and for consumption by its members and their guests, but subject to the following conditions:

a. the establishment is organized and operated solely for purposes of a social, recreational, patriotic, or fraternal nature; and

b. it has a valid permit from the State Board of Alcoholic Control for this purpose; and

c. the alcoholic beverages are stored in individual lockers and the name of the beverage owner shall be clearly displayed on both the locker and the bottle or bottles; and

d. any alcoholic beverage stored in any locker is for the exclusive use of the member and his guests and not to be sold or distributed to any other person.

(3) Special Occasions. Alcoholic beverages in quantities in excess of one gallon may be possessed by a person on a special occasion, subject to the rules and regulations adopted by the State Board of Alcoholic Control, not for sale or barter, for the use and consumption of himself and his guests, when he meets one or more of the following requirements:

a. he is using his personal residence or premises under his exclusive control, or

b. he is using a facility, as a member, as defined in subdivision (2) of this section, and said facility has a valid permit from the State Board of Alcoholic Control for this purpose; or

c. he is using a commercial establishment or any part thereof for a private meeting or party limited in attendance to members or guests of a particular person, group, association, or organization, and said commercial establishment has obtained a permit from the State Board of Alcoholic Control for this purpose.

(4) Restaurants and Related Places. It shall be unlawful for any person to possess or consume any alcoholic beverages of any and all kinds, other than fortified wines (which contain more than fourteen per cent (14%) of alcohol by volume) on the premises of any business establishment that is not permitted under subdivisions (1), (2), or (3) of this section unless said establishment meets the following requirements:

a. the premises have an inside dining area with a seating capacity of at least 36 persons and a separate kitchen facility; and

b. the business is engaged primarily and substantially in preparing and serving meals or furnishing lodging; and provided further, that the State Board of Alcoholic Control shall have broad power to examine the type and nature of the business and the combination and location of separate or affiliated businesses at the same location to determine if the establishment is a bona fide restaurant-type facility; and

c. the business has a valid permit from the State Board of Alcoholic Control for this purpose, including the requirement that the business post the type of notices required by said Board.

(5) Unlawful Possession or Use. It shall be unlawful for:

a. Any person to drink alcoholic beverages or to offer a drink to another person i. on the premises of a county or municipal liquor control store, or ii. upon any premises used or occupied by a county or municipal alcoholic control board, or iii. on any public road, street, or highway.

b. Any person to make any public display of alcoholic beverages at any athletic contest.

c. Any person to possess or consume any alcoholic beverages upon any of the premises designated under subdivisions (2), (3), or (4) of this section, unless there is conspicuously displayed a valid permit or notice on said premises from the State Board of Alcoholic Control.

d. Any person, association, or corporation to permit any alcoholic beverages to be possessed or consumed upon any premises not authorized by this Chapter.

e. Any person to possess or consume any alcoholic beverages upon any premises where such possession or consumption is not authorized by law, or where said person has been forbidden to possess or consume alcoholic beverages by the owner, operator, or person in charge of said premises.

f. Any person, firm, or corporation to refuse to surrender any permit or notice upon request of the State Board of Alcoholic Control, or falsely to display any such notice, or to display any notice not permitted by the State Board of Alcoholic Control, or to obtain any facsimile permit or notice from any person.

(6) Hours for Consumption. It shall be unlawful for any alcoholic beverages to be consumed on any premises having a permit issued under the provisions of this section between the hours of 1:30 a.m. and 7:00 a.m. Provided however, that during the period commencing on the last Sunday of April of each year and ending on the last Sunday of October of each year alcoholic beverages may be consumed on said premises until 2:30 a.m. Subsequently, on Sundays, consumption of these beverages may not resume until 1:00 p.m.

"§ 18A-31. Permits for social establishments, restaurants, etc. — (a) Permits. Any person, association, or corporation making application for a permit under this Article shall file said application and appropriate fee with the State Board of Alcoholic Control, and said Board shall have the exclusive authority, not inconsistent herewith, in issuing any permit, or in renewing, suspending, or revoking any temporary or annual permit. The additional provisions relating to said permits are as follows:

(1) Said Board may issue temporary permits where application in proper form has been received, with applicable fees, which shall be valid for 90 days, unless sooner suspended or revoked. No applicant or permittee shall be entitled to any hearing with reference to the issuance, suspension, or revocation of any temporary permit.

(2) Any temporary or annual permit shall be suspended or revoked by said Board, upon the suspension or revocation of any other permit or license by the State Board of Alcoholic Control, pursuant to any other section of this Chapter.

(3) All annual permits issued under this section shall be valid until May 1, 1968, unless sooner suspended or revoked, and thereafter all annual permits shall be valid for one year, renewable on May 1, 1968 and annually thereafter, unless sooner suspended or revoked.

(4) Any person, association, or corporation shall promptly surrender any permit issued hereunder upon request of said Board.

(5) Before exercising any privilege granted hereunder, and immediately upon the receipt of any temporal y or annual permit, said person, association, or corporation receiving the same shall keep conspicuously displayed said permit and in addition shall post a notice or notices, approved by said Board, designating the type of permit that is applicable to the premises. The Board shall approve and designate the type of signs, notices, and exhibits that may be displayed or used on any premises.

(6) All permits shall be the property of the State Board of Alcoholic Control, and no permit shall be transferable. Upon the termination of any business, or upon a change of ownership or control, all permits issued hereunder shall be immediately surrendered to said Board.

(7) All permits shall be issued for a designated location, a separate permit being required for each separate location of any business.

(8) Said Board shall not refuse the issuance of any permit to any person, firm, or corporation who shall comply with the provisions of this Chapter, and the issuance of a permit shall not be arbitrary in any case, but issuance of a permit shall be mandatory to any person, firm, or corporation complying with the provisions of this Chapter.

(b) Fees. Applications for permits shall be accompanied by appropriate fees, payable to the State Board of Alcoholic Control, which shall not be refundable in case a permit is refused, suspended, or revoked. No additional fees or licenses shall be collected by any county or municipality under this section, and the fees received by the State Board of Alcoholic Control shall be deposited with the State Treasurer of North Carolina, as in the case of any other permit fees collected by said Board. No additional charge shall be imposed for any temporary permit. The schedule of fees for the original permit is as follows:

(1) two hundred dollars ($200.00) for a social establishment as defined in G.S. 18A-30(2);

(2) two hundred dollars ($200.00) for a commercial establishment as defined in G.S. 18A-30(3)c;

(3) one hundred dollars ($100.00) for a restaurant as defined in G.S. 18A-30(4) having a seating capacity of less than 50;

(4) two hundred dollars ($200.00) for a restaurant as defined in G.S. 18A-30(4) having a seating capacity of 50 or more;

(5) three hundred dollars ($300.00) for any establishment which obtains permits having two or more of the foregoing schedules for the same premises.

(6) The annual renewal fees for such permits shall be twenty-five per cent (25 %) of the original permit as herein set forth.

(1) Exemption from Fees. No fee shall be charged by the State Board of Alcoholic Control for any permit issued under this section to the State or any county or municipality for any premises operated by the State, county, or municipality.

(2) Exemption of Counties. Until at least one county or municipal alcoholic beverage control store has been lawfully established within any county, no permit shall be issued by the State Board of Alcoholic Control for the purposes defined in subdivision (4) of G.S. 18A-30 to any person, association, or corporation for premises located in said county.

(d) Procedures. The provisions of Article 4 as to procedures to be followed in the issuance, suspension, and revocation of permits shall be applicable to permits issued under this Article.

"§ 18A-32. Transportation , possession , and sale at installations operated by or for armed forces. — Alcoholic beverages in quantities in excess of one gallon may be purchased by, transported to, possessed and sold by any open mess or officers' club at any installation located in any county in this State where alcoholic beverages may be legally sold or possessed, which installation is operated by or for any of the armed forces of the United States and where the possession, dispensing, and sale of such alcoholic beverages is under the control and supervision of the department of the armed forces concerned; provided, however, that all such alcoholic beverages transported, possessed, dispensed, or sold pursuant to this section on the premises of any such installation shall be purchased at the retail alcoholic beverage control store of the county in which such installation is located at the full retail price prevailing at the time of such purchase. Transportation permits may be issued by the State Board of Alcoholic Beverage Control under regulations adopted pursuant to G.S. 18A-29 for the transportation of alcoholic beverages in excess of one gallon from the alcoholic beverage control store of the county in which such installation is located for delivery to the responsible officer of such installation operated by or for any of the armed forces of the United States. The provisions of this section shall not be construed as to affect the source, or place of purchase, or the price paid for alcoholic beverages purchased, possessed, sold, and dispensed by or at any open mess or officers' club or other facility located at or maintained at or by any of the armed forces of the United States at any place where jurisdiction has been ceded to or taken by the United States government.

"Article 4.

"Malt Beverages and Wine.

"Part 1.

"Retail Sales and Personal Use.

"§ 18A-33. Sale and consumption during certain hours prohibited. — (a) No malt beverages or wine (fortified or unfortified) shall be sold between the hours of 1:00 a.m. and 7:00 a.m., nor shall any malt beverages or wine (fortified or unfortified) be consumed in any place where malt beverages or wine (fortified or unfortified) is sold between the hours of 1:30 a.m. and 7:00 a.m. Provided however, that during the period commencing on the last Sunday of April of each year and ending on the last Sunday of October of each year these beverages may be sold until 2:00 a.m. and may be consumed on the licensed premises until 2:30 a.m. Subsequently, on Sundays, sales of these beverages may not resume until 1:00 p.m.

(b) In addition to the restrictions on the sale of malt beverages and/or wines (fortified or unfortified) set out in this section, the governing bodies of all municipalities and counties in North Carolina shall have, and they are hereby vested with, full power and authority to regulate and prohibit the sale of malt beverages and/or wine (fortified or unfortified) from 1:00 p.m. on each Sunday until 7:00 a.m. on the following Monday. Provided, however, that municipalities and counties shall have no authority under this subsection to regulate or prohibit sales after 1:00 p.m. on Sundays by establishments having a permit issued under Article 3 of this Chapter.

The power herein vested in governing bodies of municipalities shall be exclusive within the corporate limits of their respective municipalities, and the powers herein vested in the county commissioners of the various counties in North Carolina shall be exclusive in all portions of their respective counties not embraced in the corporate limits of municipalities therein.

"§ 18A-34. Prohibited acts of licensees; wine and malt beverage purchases limited as to quantity. — (a) No holder of a license or permit authorizing the sale at retail of malt beverages or wine (fortified or unfortified) for consumption on or off the premises where sold, or any servant, agent, or employee of the licensee, shall do any of the following upon the licensed premises:

(1) knowingly sell such beverages to any person not of lawful age;

(2) knowingly sell such beverages to any person while such person is in an intoxicated condition;

(3) sell such beverages upon the licensed premises or permit such beverages to be consumed thereon, on any day or at any time when such sale or consumption is prohibited by law;

(4) permit on the licensed premises any disorderly conduct, breach of peace, or any lewd, immoral, or improper entertainment, conduct, or practices; or permit on the licensed premises any conduct or entertainment by nude performers or entertainers, or persons wearing transparent clothing or performances by any male or female performers simulating sexual acts or sexual activities with any person, object, device or other paraphernalia;

(5) sell, offer for sale, possess, or knowingly permit the consumption on the licensed premises of any kind of intoxicating liquors the sale or possession of which is not authorized by law.

(b) All retail license or permit holders shall keep their places of business clean, well lighted, and in an orderly manner.

(c) It shall be unlawful for any person selling at retail or wholesale any wines(fortified or unfortified) to sell wines the brands of which are not on the approved list of wines prepared by the State Board of Alcoholic Control unless specific authority for the sale of said wines has been obtained from the Board. It shall be the duty of all retailers to secure from the State Board of Alcoholic Control an approved list of wines, and it shall be unlawful for retailers to purchase from wholesalers or distributors any wines not on said approved list, unless specific authority for such purchase is obtained from the State Board of Alcoholic Control.

(d) No retailer shall sell or deliver to any one person at any one time more than 20 gallons of malt beverages, other than draft malt beverages in kegs. Nor may more than one gallon of wine (fortified or unfortified) be sold at retail at any one time to any one person, except as authorized by permit.

"§ 18A-35. Transportation and possession of malt beverages and unfortified wine; out-of-state purchases. — (a) Except as otherwise provided in this Chapter, the purchase, transportation, and possession of malt beverages and unfortified wine by individuals 18 years of age or older for their own use are permitted without restriction or regulation.

(b) Whenever any person desires to purchase more than one gallon but not exceeding five gallons of unfortified wine at one time, he shall first obtain a purchase permit from the chairman of the local board, a member of the local board, or the general manager or supervisor of the local board of alcoholic control. No permit shall be issued by any authorized person to:

(1) persons not of good character; or

(2) persons not sufficiently identified, if unknown to the issuing person; or

(3) persons known or shown to be alcoholics or bootleggers.

(c) The permit shall be signed by the person authorized to issue same and it shall authorize the purchaser named therein to purchase the quantity of unfortified wine therein indicated not to exceed five gallons. The permit shall be issued by means of a printed form with at least two carbon copies of the same. On the face of the permit shall appear the following information:

(1) name and address of purchaser;

(2) the name and location of the place where purchase is to be made;

(3) date issued and expiration date;

(4) destination;

(5) signature of person issuing the permit;

(6) a statement that the permit is valid for only one purchase on the date shown and that the permit must accompany the merchandise while in transit and both the merchandise and the permit must be exhibited by purchaser to any law enforcement officer upon request.

(d) The permit herein authorized shall be valid for only one purchase, and it shall expire at 6:00 p.m. of the date shown thereon. No purchase shall be made from any store except the store named on the permit. One copy of the permit shall be retained by the board issuing the same, one copy shall be delivered to the store from which the merchandise is purchased, and one copy shall be retained by the permittee. The permit shall authorize the permittee to transport unfortified wine from the place of purchase to the destination indicated thereon. It must accompany the merchandise during transit, and both the merchandise and the permit must be exhibited to any law enforcement officer upon request.

(e) The chairman or any member of a local county or municipal board or the general manager or supervisor of any local alcoholic control board is authorized to issue purchase permits.

(f) Permits to be used shall be in the form substantially as follows:

ALCOHOLIC BEVERAGE CONTROL BOARD

_____________________________________________________________________ County ____________________________________________________________, North Carolina Date _____________________ 19 _____________

PURCHASE PERMIT

(not to exceed five gallons)

Name of Purchaser _____________________________________________________________

Signed _____________________

(Person authorized to issue)

Board Member

Note: This permit is valid for only one purchase, and it shall expire at 6:00 p.m. of the date shown above. Special Note: This permit must accompany the merchandise during transit. Both the merchandise and the permit must be exhibited to any law enforcement officer upon request.

(g) A person may purchase legally outside of this State and bring into this State for his own personal use the same quantity of malt beverages or unfortified wine as may be legally purchased by said person within this State.

"§ 18A-36. Native wines. — It shall be lawful for any person growing crops, either wild or cultivated, of grapes, fruits, or berries to make native wines therefrom and to possess and transport such wines without limitation or regulation for the use of his family and guests. No license or permit is required for wines manufactured pursuant to this section, nor shall any tax be imposed.

"Part 2.

"Permits.

"§ 18A-37. Permit and licenses required. — Malt beverages and wine (fortified or unfortified) may be manufactured, bottled, or sold in this State only after the person desiring to engage in such activity has acquired an appropriate permit from the State Board of Alcoholic Control as provided in this Article and has secured the license or licenses required by Article 2C of Chapter 105.

All permits shall be for a period of one year unless sooner suspended or revoked and shall expire on April 30 of each year.

Except as otherwise indicated, the provisions of this Article as to permits shall also be applicable to permits issued under Article 3 of this Chapter.

"§ 18A-38. Power of State Board of Alcoholic Control to issue permits. — (a) The State Board of Alcoholic Control shall be referred to herein as 'the Board'. The Board, in addition to all powers now conferred upon it by law, is hereby vested with additional powers to regulate the distribution and sale of wine (fortified and unfortified) and malt beverages as follows: The Board shall have the sole power, in its discretion, to determine the fitness and qualifications of an applicant for a permit to sell, manufacture, or bottle malt beverages or wine (fortified and unfortified). The Board shall inquire into the character of the applicant and the location, general appearance, and type of place of business of the applicant.

(b) All manufacturers of malt beverages or wine (fortified or unfortified), wineries, brewers, bottlers of malt beverages or wine (fortified or unfortified), or any other persons selling or soliciting orders for, delivering, or distributing malt beverages or wine (fortified or unfortified) for the purpose of resale, whether on their own account or for or on behalf of other persons, whether any of such manufacturers, brewers, bottlers, or other persons are residents or nonresidents of this State, shall, as a condition precedent to the sale or the offering for sale or the delivery, distribution, or soliciting of orders for any malt beverages or wine (fortified or unfortified), apply for and obtain from the State Board of Alcoholic Control a permit for the sale, distribution, soliciting orders for, or delivery of malt beverages or wine(fortified or unfortified). The sale, distribution, soliciting orders for, or delivery of malt beverages or wine (fortified or unfortified) in this State without such a permit shall be unlawful.

The fact that any brewery or winery or any manufacturer or bottler of malt beverages or wine (fortified or unfortified) has applied for or obtained a permit under the provisions of this Article shall not be construed as domesticating said brewery, manufacturer, or bottler, and shall not be evidence for any other purpose that such brewery, manufacturer, or bottler is doing business in North Carolina.

(c) The Board may issue temporary permits where application in proper form has been received, with applicable fees, which shall be valid for 90 days, unless sooner suspended or revoked. No applicant or permittee shall be entitled to any hearing with reference to the issuance, suspension, or revocation of any temporary permit.

(d) Permits issued for the retail sale of malt beverages shall be of two kinds:

(1) 'On-premises' permits, which shall be issued for bona fide restaurants, cafes, cafeterias, hotels, lunch stands, drugstores, filling stations, grocery stores, cold-drink stands, tea rooms, or incorporated or chartered clubs. Such permit shall authorize the permittee to sell at retail malt beverages for consumption on the premises designated in the permit, and to sell malt beverages in original packages for consumption off the premises.

(2) 'Off-premises' permits, which shall authorize the permittee to sell at retail malt beverages for consumption only off the premises designated in the permit, and only in the immediate container in which the beverage was received by the permittee.

(e) Permits issued for the retail sale of unfortified wine shall be of two kinds:

(1) 'On-premises' permits shall be issued only to bona fide hotels, cafeterias, cafes, and restaurants which shall have a Grade A rating from the State Department of Health, and shall authorize the permittees to sell at retail for consumption on the premises designated in the permit and to sell unfortified wine in original containers for consumption off the premises. Provided, no such permit shall be issued except to such hotels, cafeterias, cafes, and restaurants where prepared food is customarily sold and only to such as are permitted under the provisions of subsection (a) of § 105-62.

(2) 'Off-premises' permits shall authorize the permittee to sell unfortified wine at retail for consumption off the premises designated in the permit, and all such sales shall be made in the immediate container in which the wine was purchased by the permittee.

(f) In any county or municipality in which the operation of alcoholic beverage control stores is authorized by law, it shall be legal to sell fortified wines for consumption on the premises in hotels and restaurants that have a Grade A rating from the State Board of Health, and it shall be legal to sell said wines in drug stores and grocery stores for off-premises consumption; such sales, however, shall be subject to the rules and regulations of the State Alcoholic Beverage Control Board.

"§ 18A-39. Application for permit; contents and fees. — (a) All resident bottlers, wineries, or manufacturers of malt beverages or wine (fortified or unfortified) and all resident wholesalers and retailers of malt beverages or wine (fortified or unfortified) shall file a written application for a permit with the State Board of Alcoholic Control, and in the application shall state under oath therein:

(1) the name and residence of the applicant and the length of his residence within the State of North Carolina;

(2) the particular place for which the license is desired, designating the same by street and number if practicable; if not, by such other apt description as definitely locates it; and the distance to the nearest church or public or private school from said place;

(3) the name of the owner of the premises upon which the business licensed is to be carried on, and, if the owner is not the applicant, that such applicant is the actual and bona fide lessee of the premises;

(4) that the place or building in which it is proposed to do business conforms to all laws of health and fire regulations applicable thereto, and is a safe and proper place or building;

(5) that the applicant intends to carry on the business authorized by the permit for himself or under his immediate supervision and direction;

(6) that the applicant has been a bona fide resident of this State for a period of at least one year immediately preceding the date of filing his application and that he is not less than 21 years of age;

(7) the place of birth of applicant and that he is a citizen of the United States, and, if a naturalized citizen, when and where naturalized;

(8) that the applicant has not been convicted of, or entered a plea of guilty or nolo contendere to, a felony or other crime involving moral turpitude within the past three years; that the applicant's citizenship has been restored by the court if he has been so deprived of it; that he has not, within the two years next preceding the filing of the application, been adjudged guilty of violating the prohibition or liquor laws, either state or federal. It shall be within the discretion of the Board, after making investigation, to determine whether any person who has ever been convicted of, or entered a plea of guilty or nolo contendere to, a felony shall be deemed a suitable person to receive and hold a malt beverage or wine (fortified or unfortified) permit;

(9) that the applicant has not during the three years next preceding the date of said application had any permit issuable hereunder or any license, issued to him pursuant to the laws of this State or any other state to sell intoxicating liquors of any kind, revoked;

(10) that the applicant is not the holder of a federal special tax liquor stamp.

(11) If the applicant is a firm, association, or partnership, the application shall state the matters required in subdivisions (6), (7), (8), and (9), with respect to each of the members thereof, and each of said members must meet all of the requirements in said subdivisions provided;

(12) if the applicant is a corporation, organized or authorized to do business in this State, the application shall state the matters required in subdivisions (7), (8) and (9), with respect to each of the officers and directors thereof, and any stockholder owning more than twenty-five per cent (25%) of the stock of such corporation, and the person or persons who shall conduct and manage the licensed premises for the corporation. Each of said persons must meet all the requirements in said subdivisions provided; provided, however, that the requirement as to residence shall not apply to said officers, directors, and stockholders of such corporation; however, such requirement shall apply to any such officer, director or stockholder, agent, or employee who is also the manager and in charge of the premises for which permit is applied, but the Board may, in its discretion, waive such requirement.

(b) The application must be verified by the affidavit of the applicant before a notary public or other person duly authorized by law to administer oaths. The foregoing provisions and requirements are mandatory prerequisites for the issuance of a permit; if any applicant fails to qualify under the same, or if any false statement is knowingly made in any application, the permit shall be refused. If a permit is granted on any application containing a false statement knowingly made, it shall be revoked and the applicant upon conviction shall be guilty of a misdemeanor. In addition to the information furnished in any application, the Director of the Enforcement Division shall make such additional and independent investigation of each applicant and of the place to be occupied, as deemed necessary or advisable.

(c) Every person applying to the State Board of Alcoholic Control for a permit to sell malt beverages or wine (fortified or unfortified) under the provisions of this section shall pay an application fee at the time of application according to the following schedule:

(1) for an application for a permit under the provisions of this section, a fee of twenty-five dollars ($25.00); provided, that if applications for a malt beverage permit and a wine (fortified or unfortified) permit are filed at the same time for the same location, the total fee shall be twenty-five dollars ($25.00);

(2) for an application for a new permit under the provisions of this section by reason of the fact that a new manager has been assigned to an establishment for which a permit or permits are presently held, a fee often dollars ($10.00); provided, this fee shall not be payable if the new manager has within 30 days of the time of filing of the application held a permit as the manager of another establishment of the same person.

All fees required by this section shall be paid by check or money order made payable to the State Board of Alcoholic Control, and they shall be deposited by the State Board of Alcoholic Control with the State Treasurer.

The application of any person who fails to comply with the provisions of this section shall be refused, and if the permit has been granted, it shall be canceled.

"§ 18A-40. Permits prohibited. — (a) No permit shall be issued for the sale of malt beverages or wine (fortified or unfortified) upon the campus or property of any public school or college in this State.

(b) No permit shall be issued to a poolroom or billiard parlor or to any person operating same for the sale of wine (fortified or unfortified).

(c) No retail malt beverage or wine (fortified or unfortified) on premise permit shall be issued for any establishment within 50 feet of a church or a public school unless the State Board of Alcoholic Control determines upon proper investigation and a hearing, if requested, that the establishment is a suitable one and that the failure to issue a permit will result in undue hardship.

"§ 18A-41. Permits for commercial transportation of malt beverages and unfortified wine. — (a) Malt beverages and unfortified wine may be transported into, out of, or between points in this State by railroad companies, express companies, or steamboat companies engaged in public service as common carriers and having regularly established schedules of service upon condition that such companies shall keep accurate records of the character and volume of such shipments and the character and number of packages or containers and shall keep records open at all times for inspection by the State Board of Alcoholic Control and State A.B.C. officers, and upon condition that such common carrier shall make report of all shipments of such beverages into, out of, or between points in this State at such times and in such detail and form as may be required by the State Board of Alcoholic Control.

Malt beverages and unfortified wine may be transported into, out of, or between points in this State over the public highways of this State by motor vehicles upon condition that every person intending to make such use of the highways of this State shall as a prerequisite thereto register such intention with the State Board of Alcoholic Control in advance of such transportation, with notice of the kind and character of such products to be transported and the license and motor number of each motor vehicle intended to be used in such transportation. Upon the filing of such information, together with an agreement to comply with the provisions of this Chapter, the State Board of Alcoholic Control shall without charge therefor issue a numbered permit to each such owner or operator for each motor vehicle intended to be used for such transportation, which numbered permit shall be prominently displayed on the motor vehicle used in transporting malt beverages or unfortified wine. Every person transporting such products over any of the public highways of this State shall during the entire time he is so engaged have in his possession an invoice or bill of sale or other record evidence showing the true name and address of the person from whom he has received such beverages, the character and contents of containers, the number of bottles, cases, or gallons of such shipment, and the true name and address of every person to whom deliveries are to be made. The person transporting such beverages shall, at the request of any State A.B.C. officer, produce and offer for inspection said invoice or bill of sale or record evidence. If said person fails to produce an invoice or bill of sale or record evidence, or if when produced, the document fails to clearly and accurately disclose said information, the failure shall be prima facie evidence of the violation of this Article. Every person engaged in transporting such beverages over the public highways of this State shall keep accurate records of the character and volume of such shipments and the character and number of packages or containers, and shall keep records open at all times for inspection by the State Board of Alcoholic Control and State A.B.C. officers. Such person shall make report of all shipments of such beverages into, out of, or between points in this State at such times and in such detail and form as may be required by the State Board of Alcoholic Control.

The provisions of this section as to transportation of malt beverages and unfortified wine by motor vehicles over the public highways of this State shall in like manner apply to the owner or operator of any boat using the waters of the State for such transportation, and all of the provisions of this section with respect to permits for such transportation and reports to the State Board of Alcoholic Control by the operators of motor vehicles on public highways shall in like manner apply to the owner or operator of any boat using the waters of this State.

(b) The State A.B.C. Board shall promulgate rules and regulations to prohibit the direct shipment of malt beverages from points outside this State to a United States military or naval reservation within the geographical confines of North Carolina for resale on such military or naval reservation.

(c) The permits required by this section shall be waived for any person already having a permit required under another section of this Article.

"§ 18A-42. Salesmans permit. — (a) Every salesman for a wholesale distributor of malt beverages or wine (fortified or unfortified) shall apply to the Board for a wholesale salesman's permit to sell such beverages, and shall renew the permit by May 1 of each succeeding year thereafter. This shall be deemed to include salesmen stationed at the wholesaler's warehouse as well as route salesmen who sell and deliver malt beverages or wine (fortified or unfortified) to retailers. All persons entering such employment after May 1, 1951, shall apply to the Board in like manner for a salesman's permit.

(b) Such salesman shall be 21 years of age and a citizen of the United States. No salesman's permit shall be issued to any person who has been convicted within two years preceding the filing of his application of violating the State or federal liquor laws, or who has been convicted of, or entered a plea of guilty or nolo contendere to, a felony or of any crime involving moral turpitude within the past three years and without restoration of his citizenship by the court. No salesman's permit shall be issued to any person whose permit or license issued to him pursuant to the laws of this State or any other state to sell intoxicating liquors of any kind has been revoked during the three years next preceding the date of application for a permit.

(c) Each route salesman shall be responsible under this Article for all sales and deliveries of malt beverages or wine (fortified or unfortified) by his helper.

(d) No wholesale distributor of malt beverages or wine (fortified or unfortified) shall employ as a salesman any person who does not have a salesman's permit.

(e) The permit of any salesman or wholesale distributor violating any provision of this Chapter or any regulation promulgated pursuant thereto, shall be subject to revocation or suspension by the Board. Permit holders cited for a violation by the Board shall have the right to a hearing as provided in this Article for other permittees.

"§ 18A-43. Revocation or suspension of permit. — (a) If any permittee violates any of the provisions of this Chapter, or Chapter 105, or any rule or regulation promulgated under authority of either Chapter, or fails to superintend in person or through a manager the business for which the permit was issued, or allows the premises with respect to which the permit was issued to be used for any unlawful, disorderly, or immoral purposes, or knowingly employs in the sale or distribution of malt beverage or wine (fortified or unfortified) any person who has been convicted of, or entered a plea of guilty or nolo contendere to, a felony involving moral turpitude(federal or state) within the past three years, or adjudged guilty of violating the liquor or drug laws (federal or state) within two years, or leaves the licensed premises in charge of any person who has had a license or permit for the sale of malt beverages or wine (fortified or unfortified) revoked within the past two years, or otherwise fails to carry out in good faith the purposes of this Chapter, his permit may be revoked or suspended by the State Board of Alcoholic Control.

(b) The Board may refuse to issue a new permit or may suspend or revoke any permit issued by it if in the discretion of the Board it is of the opinion that the applicant or permittee is not a suitable person to hold such permit or that the place occupied by the applicant or permittee is not a suitable place.

(c) Whenever any license or permit which has been issued by the Commissioner of Revenue or by the State Board of Alcoholic Control has been revoked, the State Board may, at its discretion, refuse to issue a permit for said premises to any person for any period not to exceed six months after the revocation of such permit or license.

(d) The State A.B.C. Board may suspend or revoke any permit issued by it if the Board finds that the permittee has violated any provision of this Chapter or Chapter 105, or any rule or regulation of the State A.B.C. Board or the State Department of Revenue.

"§ 18A-44. Hearing before suspension or revocation of permit. — (a) Before the State A.B.C. Board may suspend or revoke any permit issued under the provisions of this Chapter, at least ten days' notice of such proposed or contemplated action by the Board shall be given to the affected permittee. Such notice shall be in writing, shall contain a statement in detail of the grounds or reasons for such proposed or contemplated action of the Board, and shall be served on the permittee by sending the same to such permittee by registered or certified mail to his last known post office address or by personal service by an agent of the Board. The Board shall in such notice appoint a time and place when and at which the permittee shall be heard as to why the permit should not be suspended or revoked. The permittee shall at such time and place have the right to produce evidence in his behalf and to be represented by counsel.

(b) Whenever there is filed with the State Board of Alcoholic Control a certified copy of a judgment of a court convicting a licensee of a violation of the State or federal liquor or drug laws, or any of the provisions of this Chapter, or of any rule or regulation issued by the Board, the Board may suspend or revoke the permit of such licensee; and shall serve a written notice of such suspension or revocation upon the licensee either by requiring the delivery of such notice to the licensee in person by an agent of the Board or by sending same by registered mail to his last known post office address. Except as provided in the preceding sentence, before the State permit authorizing the sale of intoxicating liquors may be revoked or suspended, the Board shall give the affected permittee such notice and hearing as is required by subsection (a) of this section. Upon such hearing, the duty authorized agents of the board may administer oaths and may issue subpoenas for the attendance of witnesses and the production of books, papers, and documents belonging to the permittee.

(c) Any person who refuses to surrender any permit on demand under authority of the Board after such permit has been duly canceled, suspended, or revoked shall be guilty of a misdemeanor.

(d) Upon the appeal to the superior court of decisions of the Board suspending or revoking permits or disapproving applications for permits, and the appealing parties request a transcript of the entire record or a portion thereof, a transcript shall be furnished to the appealing parties upon payment to the Board of a fee of fifty cents (50¢) per page, but in no event shall the minimum fee be less than twenty-five dollars ($25.00) per copy of the record.

"§ 18A-45. Permit to be posted; effect of revocation. — (a) Each form of permit required by this Chapter shall be kept posted in a conspicuous place at each place where the business requiring the permit is carried on, and a separate permit shall be required for each place of business. Permits shall not be transferred to any other person or to any other location, except as provided in this Chapter.

(b) When a permit is canceled, revoked, or suspended by the Board, such cancellation, revocation, or suspension shall render void any State, county, or municipal license issued under this Chapter or Chapter 105, and in the event any State license is revoked, such revocation shall automatically revoke any other license or permit held by the licensee.

"§ 18A-46. Permit list to Department of Revenue. — The State Board of Alcoholic Control shall furnish to the Department of Revenue a list of all permits as issued.

"Part 3.

"Miscellaneous Wine and Malt Beverage Provisions.

"§ 18A-47. Wine regulations. — (a) The State Board of Alcoholic Control is authorized and empowered:

(1) To adopt rules and regulations establishing standards of identity, quality, and purity for wines (fortified or unfortified). These standards shall be such as are deemed by said Board to best protect the public against wine containing deleterious, harmful, or impure substances or elements, or an improper balance of elements, and against spurious or imitation wines and wines unfit for beverage purposes.

(2) To test wines (fortified or unfortified) possessed or offered for sale or sold in this State and to make chemical or laboratory analyses of said wines or to determine in any other manner whether said wines meet the standards established by said Board; to confiscate and destroy any wines (fortified or unfortified) not meeting said standards; to enter and inspect any premises upon which said wines (fortified or unfortified) are possessed or offered for sale; and to examine any and all books, records, accounts, invoices, or other papers or data which in any way relate to the possession or sale of said wines.

(b) Except as otherwise provided by law, no wines (fortified or unfortified) shall be transported or sold in this State unless there be firmly fastened or impressed on the barrel, bottle, or other container in which the wine may be a written statement showing the alcoholic content thereof reckoned by volume.

The possession, transportation, or sale of wines (fortified or unfortified) without such statement, or any misrepresentation made in any such statement, shall constitute a misdemeanor.

(c) Manufacturers, wineries, bottlers, and wholesalers, or any other persons selling wine (fortified or unfortified) for the purpose of resale, whether on their own account or for or on behalf of other persons, shall, upon request of the State A.B.C. Board, furnish a verified statement of a laboratory analysis of any wine sold or offered for sale by such persons.

(d) The 'Standards of Identity for Wine' and the regulations relating to 'Labeling and Advertising of Wine' promulgated by the federal alcohol administration of the United States Treasury Department and known respectively as Regulation Number Four, Article 2, and Regulation Number Four, Articles 3 and 6, are hereby adopted by- North Carolina. The State A.B.C. Board may further restrict the standards of identity for wine and the regulations relative to the labeling and advertising of wine promulgated by the federal alcohol administration of the U.S. Treasury Department, within the discretion of the Board.

"§ 18A-48. Standards for malt beverages. — The State Board of Alcoholic Control shall have the authority to fix such standards for malt beverages as are determined by the Board to best protect the public against beverages containing deleterious, harmful, or impure substances or elements, or an improper balance of elements, and against spurious or imitation beverages unfit for human consumption; to test malt beverages possessed or offered for sale or sold in this State and to make chemical or laboratory analyses of such beverages or to determine in any other manner whether such beverages meet the standards established by said Board; to confiscate and destroy any such beverages not meeting such standards; to enter and inspect any premises on which such beverages are possessed or offered for sale; to examine any and all books, records, accounts, invoices, or other papers or data which in any way relate to the possession or sale of such beverages; and to take all proper steps for the prosecution of persons violating the provisions of this section and for carrying out the provisions and intent thereof; provided that the owner of said beverages confiscated shall be served with written notice to show cause within five days before the Board why the order should not be made permanent; and no beverages shall be destroyed until the order is final; provided further that the said owner shall have the right to appeal from the ruling of the said Board to the superior court of the county in which the said beverages were confiscated within 10 days from the final order of the said Board.

Manufacturers, bottlers, and wholesalers, or any other persons selling malt beverages for the purpose of resale, whether on their own account or for or on behalf of other persons, shall, upon the request of the State A.B.C. Board, furnish a verified statement of a laboratory analysis of any malt beverages sold or offered for sale by such persons.

"§ 18A-49. Prohibition against exclusive outlets. — It shall be unlawful for any manufacturer, bottler, or wholesaler of wine (fortified or unfortified) or malt beverages, whether licensed in this State or not, or any officer, director, or an affiliate of such manufacturer, bottler or wholesaler either directly or indirectly:

(1) to require by agreement or otherwise that any retailer engaged in the sale of wine (fortified or unfortified) or malt beverages purchase any such products from such person, firm, or corporation to the exclusion in whole or in part of wine (fortified or unfortified) or malt beverages sold or offered for sale by other persons, firms, or corporations in North Carolina; or

(2) to have any financial interest, direct or indirect, in the business for which any retailer's permit has been issued under this Article or in the premises where the business of any person to whom a retailer's permit has been issued hereunder is conducted; or

(3) to lend or give to any person licensed hereunder as a retailer or his employee or to the owner of the premises on which the business of any such retailer is conducted any money, services, equipment, furniture, fixtures, or other things of value with which the business of such retailer is or may be conducted.

All of the above restrictions are subject to such exceptions as may be prescribed by the State Board of Alcoholic Control having due regard for public health, the quantity and value of articles involved, established trade customs not contrary to the public interest, and the purposes of this section.

"§ 18A-50. Breweries forbidden to coerce or persuade wholesalers to violate Chapter or unjustly cancel contracts or franchises; prima facie evidence of franchise; injunctions; revocation or suspension of licenses and permits. — (a) It shall be unlawful, and punishable as provided in § 18A-56, for any brewery or any officer, agent, or representative of any brewery:

(1) to coerce or attempt to coerce or persuade any person licensed to sell malt beverages at wholesale to enter into any agreement to take any action which would violate or tend to violate any provision of Chapter 18 or Chapter 105 of the General Statutues or any rules or regulations promulgated by the State Board of Alcoholic Control or the Department of Revenue of the State of North Carolina in accordance therewith; or

(2) to unfairly, without due regard to the equities of such wholesaler, or without just cause or provocation, to cancel or terminate any agreement or contract, written or oral, or the franchise of such wholesaler existing on January 1, 1965, or thereafter entered into, to sell malt beverages manufactured by the brewery; provided also, that, from and after June 17, 1965, this provision shall be a part of any franchise, contract, agreement, or understanding, whether written or oral, between any wholesale dealer in malt beverages licensed to do business in North Carolina, and any brewery doing business with such licensed wholesaler, just as though said provision had been specifically agreed upon between said wholesaler and said brewery.

(b) The doing or accomplishment of any of the following acts shall constitute prima facie evidence of a contractual franchise relationship within the contemplation of this section, as between a licensed malt beverage wholesaler and a brewery, to wit:

(1) the shipment, preparation for shipment, or acceptance of any order by any brewery or its agent for any malt beverage to a licensed wholesale distributor within the State of North Carolina;

(2) the payment by a licensed wholesale distributor in the State or the acceptance of payment by any brewery or its agent for the shipment of an order of malt beverage intended for sale within the State.

(c) The superior court of North Carolina is hereby vested with jurisdiction and power to enjoin the cancellation or termination of a franchise or agreement between a wholesaler of malt beverages and a brewery at the instance of such wholesaler who is or might be adversely affected by such cancellation or termination. In granting such an injunction, the superior court of North Carolina shall provide that no brewery shall supply the customers or territory of the wholesaler through servicing said territory or customers through other distributors or means while the injunction is in effect.

(d) The State Board of Alcoholic Control is empowered to investigate any violations of this section and to furnish to the prosecuting attorney of any court having jurisdiction of the offense information with respect to any violations of this section. The State Board shall have the power to enforce conformance with the provisions of any injunction granted by the superior court under the terms of this section, and, if the court finds that there has been a violation of the provisions of any injunction granted by it, the Board may revoke or suspend the permit of any 1348 wholesaler and the permit of any brewery to ship malt beverages into the State of North Carolina.

"Article 5.

"Elections.

"Part 1.

"A.B.C. Store Elections.

"§ 18A-51. County elections as to alcoholic beverage control stores. — No county alcoholic beverage control store shall be established, maintained, or operated in this State, in any county thereof, until and unless there has been held in the county an election under the same rules and regulations that apply to elections for members of the General Assembly. At this election there shall be submitted to the qualified voters of the county the question of setting up and operating in the county an alcoholic beverage control store, or stores, as herein provided. Those favoring the setting up and operation of alcoholic beverage control stores in the county shall mark in the voting square to the left of the words "for county alcoholic beverage control stores" printed on the ballot, and those opposed to setting up and operating alcoholic beverage control stores in the county shall mark in the voting square to the left of the words "against county alcoholic beverage control stores," printed on the same ballot. If a majority of the votes cast in such election shall be for county alcoholic beverage control stores, then an alcoholic beverage control store, or alcoholic beverage control stores, may be set up and operated in the county as herein provided. If a majority of the votes cast at the election are against county alcoholic beverage control stores, then no alcoholic beverage control store shall be set up or operated in the county under the provisions of this Chapter.

The election shall be called in the county by the board of elections of the county only upon the written request of the board of county commissioners therein, or upon a petition to the board of elections signed by at least fifteen per cent (15%) of the registered voters in the county that voted in the last election for Governor. In calling for a special alcoholic beverage control election, the county board of elections shall give at least 20 days' public notice of the election before the opening of the registration books, and the registration books shall remain open for the same period of time before the special alcoholic beverage control election as is required by law for them to remain open for a regular election. A new registration of voters for such special alcoholic beverage control election is not required, and all qualified electors who are properly registered prior to the registration for the special election, as well as those electors who register for the special alcoholic beverage control election, shall be entitled to vote in the election.

If any county, while operating any alcoholic beverage control store under the provisions of Chapters 418 or 493 of the Public Laws of 1935, or under the terms of this Chapter hereafter under the provisions of this Article holds an election and if at this election a majority of the votes are cast "against county alcoholic beverage control stores," then the alcoholic beverage control board in such county shall, within three months from the canvassing of the vote and the declaration of the result thereof, close the stores and shall thereafter cease to operate them. During this period, the county control board shall dispose of all alcoholic beverages on hand, all fixtures, and all other property in the hands and under the control of the county control board and shall convert the same into money and shall, after making a true and faithful accounting, turn all money in its hands over to the general funds of the county.

No election under this section shall be held on the day of any biennial election for county officers, or within 60 days of such an election. The date of any elections held under this section shall be fixed by the board of elections of the county wherein the election is held.

No other election shall be called and held in any of the counties in the State under the provisions of this section within three years from the holding of the last election under this section. In any county in which an election was held either under the provisions of Chapters 418 or 493 of the Public Laws of 1935, an election may be called under the provisions of this section, provided that no such election shall be called within three years of the holding of the last election.

Nothing herein contained shall be so construed as to require counties in which alcoholic beverage control stores have been established under Chapters 418 or 493 of the Public Laws of 1935 to have any further election in order to enable them to establish alcoholic beverage control stores. Counties in which alcoholic beverage control stores are now being operated under Chapters 418 or 493 of the Public Laws of 1935 shall from February 22, 1937, be operated under the terms of this Chapter.

"Part 2.

"Malt Beverage and Unfortified Wine Elections.

"§ 18A-52. Malt beverage and unfortified wine elections in counties or municipalities. — (a) An election shall be called for the purpose of determining whether unfortified wine or malt beverages or both shall be sold in any municipality having a population of 500 or more, according to the last federal census of population, or within the county as a whole, only when the conditions of this Part are complied with.

(b) Such election shall be called in the county or municipality upon written request of the governing body or upon a petition to the board of elections or other official body conducting the elections of the county or municipality (hereinafter referred to as board of elections). If the governing body requests the election, no petition shall be required, but the board of elections shall set a date for the election which shall not be later than 120 days after the written request is filed with the board. Notice of the election as hereinafter provided shall be given. The request shall specify the question or questions and the type of sale to be voted on in the election.

(c) The board of elections shall, upon written request, furnish petition forms to any person wishing to circulate a petition calling for an election on the sale of unfortified wine or malt beverages, or both, as hereinafter authorized. The board of elections shall date the petition, which must be returned to the board within 90 days from the date of delivery to the person; the date of return shall appear on the petition. Failure to return the petition as required shall render it void. Upon issuing the petition, the board of elections shall immediately give public notice that the petition is being circulated in some newspaper having general circulation in the county or municipality where the election is to be held and by posting the notice at three public places within the county or municipality. The notice shall be run at least twice in the newspaper. The person requesting the petition shall pay the cost of the notice.

(d) The board of elections shall call an election upon receipt of a petition which meets the following requirements:

(1) The petition must contain the genuine signature, address, and precinct name or number of each signer.

(2) The petition must be signed by a number of voters of the county or municipality equal to at least twenty-five per cent (25%) of the number of registered voters of the county or municipality according to the most recent registration figures as certified by the board of elections.

(3) The petition must request that an election be held in the county or the municipality to submit to the voters the question or questions of the legal sale of unfortified wine or malt beverages, or both. The petition must specify the particular question or questions to be voted on as specified in writing by the person requesting the petition, and whether the sale shall be "on- premises" or "off-premises" or both, or whether "on-premises" sales by Grade A hotels and restaurants only and "off-premises" sales by other Licensees.

(4) The petition must show that it was returned to the board of elections within 90 days from the date it was delivered to the person requesting the petition.

(e) The board of elections shall determine the sufficiency of the petition within 30 days after its receipt. If the petition meets the requirements of this part, the board of elections shall immediately set a date for the election, which shall be held not later than 120 days after the petition is returned to the board of elections. Public notice of the election shall be given by the board of elections 30 days prior to the closing of the registration books. The notice shall be given at least twice in some newspaper having general circulation in the county or municipality where the election is to be held. The person requesting the petition shall pay the cost of the notice before the board causes it to be published.

(f) The election shall be held under the same laws and regulations as provided for the election of members of the General Assembly, insofar as is practicable, but no absentee ballots or markers shall be allowed. The opponents and proponents shall have the right to appoint two watchers to attend each voting place. The persons authorized to appoint watchers shall, three days before the election, submit in writing to the registrar of each precinct a signed list of the watchers appointed for that precinct. The persons appointed as watchers shall be registered voters of the precinct for which appointed. The registrar and judges for the precinct may for any good cause reject any appointee and require that another be appointed. Watchers shall do no electioneering at the voting place nor in any manner impede the voting process, interfere or communicate with or observe any voter in casting his ballot. Watchers shall be permitted in the voting place to make such observation and to take such notes as they may desire. No watcher shall enter the voting enclosure or render assistance to a voter. No new registration shall be required, and all qualified and registered voters shall be entitled to vote in the election.

(g) No election shall be held under this Part within 60 days of the date of any general, special, or primary election to be held in the county or the municipality in which an election under this Part is held. Provided, however, that an election under this Part may be held, in the discretion of the board of elections, on the same day of a general, special, or primary election held within the county or the municipality or an election to determine whether alcoholic beverage control stores shall be established therein.

If an election is to be held pursuant to a special act to determine whether alcoholic beverage control stores shall be operated within a county or municipality, and if there is not sufficient time before the election to comply with the petition or notice requirements of this Part for holding an election on the question or questions authorized by this Part, then the governing body of the county or municipality in which the election relating to the operation of alcoholic beverage control stores is to be held may, in its discretion, direct the board of elections to submit to the voters the question or questions relating to the sale and type of sale of unfortified wine or malt beverages, or both, as authorized by this Part and as specified by the governing body. The question or questions authorized by this Part may be submitted on a separate ballot or placed on the same ballot relating to the operation of alcoholic beverage control stores. Provided, that the governing body shall not exercise the authority conferred by this paragraph within seven days of the day the election relating to alcoholic beverage control stores is to be held. Provided further, that if the governing body exercises the authority conferred by this paragraph, the board of elections shall immediately give public notice in some newspaper having general circulation in the county or municipality in which the election is to be held and by posting said notice in at least three public places within the county or municipality. The notice shall set forth the specific question or questions relating to the sale and type of sale of unfortified wine or malt beverages, or both, that will be submitted to the voters, and whether such question or questions will appear on the same ballot as the questions to determine whether alcoholic beverage control stores shall be established.

(h) Whenever an election has been held pursuant to this Part in any county or municipality, no other election hereunder shall be held in such county or municipality within three years of the preceding election within such county or municipality.

(i) No municipality shall hold an election under this Part unless there has been an election in the county where the municipality is located and the last vote in the county election was against the legal sale of the beverages authorized by this Part.

(j) The ballot shall be governed by the language of the petition. The ballot shall give the voter the opportunity to vote "For" or "Against" the question or questions presented.

If the election is to determine whether unfortified wine is to be sold, the ballot shall contain one or more of the following:

(1) FOR 'on-premises' sales of unfortified wine by Grade A hotels and restaurants only and 'off-premises' sales by other licensees.

AGAINST 'on-premises' sales of unfortified wine by Grade A hotels and restaurants only and 'off-premises' sales by other licensees.

(2) FOR 'off-premises' sales only of unfortified wine.

AGAINST 'off-premises' sales only of unfortified wine.

If the election is to determine whether malt beverages are to be sold, the ballot shall contain one or more of the following:

(1) FOR 'on-premises' and 'off-premises' sales of malt beverages,

AGAINST 'on-premises' and 'off-premises' sales of malt beverages, or

(2) FOR 'on-premises' sales only of malt beverages,

AGAINST 'on-premises' sales only of malt beverages, or

(3) FOR 'off-premises' sales only of malt beverages,

AGAINST 'off-premises' sales only of malt beverages, or

(4) FOR 'on-premises' sales of malt beverages by Grade A hotels and restaurants only and 'off-premises' sales by other licensees,

AGAINST 'on-premises' sales of malt beverages by Grade A hotels and restaurants only and 'off-premises' sales by other licensees.

Any one or more of the above questions shall, if requested in the petition, or by the governing body as authorized in subsections (b) and (g), be placed on the same ballot.

"§ 18A-53. Effect of vote for or against questions. — (a) If a majority of the votes cast in such election shall be in favor of any question or questions on the ballot, then it shall be legal in accordance with the applicable law to sell only the beverage or beverages in the manner prescribed that received a favorable vote.

(b) If, at the time of the election, it is legal to sell the beverage or beverages presented on the ballot and the majority of the votes cast be against the sale of such beverage or beverages, then after the expiration of 60 days from the day of the election, it shall be unlawful to sell or possess for the purpose of sale the beverage or beverages receiving an unfavorable vote.

(c) The result of any county election held under this Part shall not affect the legal sale of unfortified wine or malt beverages, or both, or the type of sales in any municipality in the county in which the legal sale of such beverages has been authorized by an election or special act in the municipality prior to the time of the county election, and the result of a municipal election shall not in any manner affect the legal sale of such beverages, or the type of sale, which is legal in the county outside the municipality at the time of the municipal election.

(d) Nothing in this Part shall prevent bottlers, manufacturers or wholesalers of malt beverages or wine (fortified or unfortified) who have complied with this Chapter and Chapter 105 from bottling, manufacturing, possessing, transporting, or selling malt beverages or wine (fortified or unfortified) as a wholesaler to any person who has complied with the provisions of this Chapter and Chapter 105 and the rules and regulations of the State Board of Alcoholic Control, or selling to nonresident wholesalers when the purchase is not for resale in this State.

"Article 6.

"Miscellaneous Provisions.

"§ 18A-54. Power of Governor to prohibit all sales during an emergency. — (a) When the Governor finds that a state of emergency, as defined in G.S. 14-288.1, exists anywhere within the State, he may order the closing of county and municipal alcoholic beverage control stores in all or any portion of the State for the period of the emergency. His order shall be directed to the chairman of the State Board of Alcoholic Control. The express authority granted by this section is not intended to limit any other authority, express or implied, to order the closing of these stores.

(b) When the Governor finds that a state of emergency, as defined in G.S. 14-288.1, exists anywhere within the State, he may order the cessation of all sale or transfer, manufacture, or bottling of malt beverages or wine (fortified or unfortified) in all or any portion of the State for the period of the emergency. His order shall be directed to the chairman of the State Board of Alcoholic Control. The express authority granted by this section is not intended to limit any other authority, express or implied, to order cessation of these activities.

"§ 18A-55. Books, records, reports. — All persons possessing or offering for sale or reselling any intoxicating liquors shall keep clear, complete, and accurate records which will reveal the sources from which said liquor was acquired, the date of acquisition, and any other information that may be required to be preserved by rules and regulations of the State A.B.C. Board. All such persons shall freely permit representatives of the Board to enter and inspect the premises upon which liquor is possessed or offered for sale, to test and analyze any of such liquor, and to examine all books, records, accounts, invoices, or other papers or data relating to such liquor.

"§ 18A-56. Violation a misdemeanor. — (a) Except as otherwise expressly provided, anyone who violates any provision of this Chapter, or any rule or regulation promulgated pursuant thereto, shall be guilty of a misdemeanor, and upon conviction shall be punished by a fine or by imprisonment, or by both fine and imprisonment, in the discretion of the court.

(b) The second or any subsequent conviction for violating G.S. 18-5(a) is a felony, punishable by imprisonment for not less than four months and not exceeding five years in the discretion of the court.

(c) If any permittee or licensee is convicted of violating any provisions of this Chapter or any rule or regulation promulgated pursuant thereto, the court (in addition to the criminal penalty imposed) may declare his permit and license revoked, and shall notify the State Board of Alcoholic Control thereof; and no permit or license shall thereafter be granted to the person so convicted within a period of three years thereafter.

(d) The conviction of a member or employee of the State A.B.C. Board, or of a county or municipal A.B.C. board, shall constitute sufficient cause for removing him from the board or from his employment by the board; in addition to the powers of the State Board to remove any of its employees or any member of a county or municipal board and the power of a county or municipal board to remove any of its employees, the court in which the conviction is had shall have the power upon such conviction(and as a part of its judgment thereon) to remove such person from membership on, or employment by, said board.

"§ 18A-57. Local acts and local option. — (a) Nothing in this act shall operate to repeal any of the local acts of the General Assembly of North Carolina prohibiting the possession or consumption of intoxicating liquor within any county, municipality, or portion thereof, and all such local acts shall continue in full force and effect and in concurrence herewith, until repealed or modified.

(b) Nothing in this Chapter shall require a permit to be issued for any territory where the sale of malt beverages or wine (fortified or unfortified) is prohibited by special legislative act or for any area where the sale or possession for the purpose of sale of malt beverages or wine (fortified or unfortified) is unlawful as a result of a local option election; and this Chapter shall not repeal any special, public-local, or private act prohibiting or regulating the sale of these beverages in any county in this State, or any act authorizing the board of commissioners of any county of this State, or the governing body of any municipality, in its discretion, to prohibit the sale of malt beverages or wine (fortified or unfortified).

"§ 18A-58. Effective date of standards for intoxicating liquors; disposition of liquor on hand. — No standards adopted by the State Board of Alcoholic Control for any intoxicating liquor shall be effective until 30 days after the adoption of the regulation establishing said standards; and provided further, that any person affected by the adoption of any standard by the Board shall be granted 60 days after the effective date of the standard within which to dispose of any liquor on hand at the effective date of the standard which does not comply with the standard."

Sec. 2. Chapter 105 of the General Statutes is hereby amended by inserting therein a new Article 2C to read as follows:

"Article 2C.

"Intoxicating Liquors Tax.

"§ 105-113.68. Definitions. — When used in this Article

(1) The word 'liquor' or the phrase 'intoxicating liquor' shall be construed to include alcohol, brandy, whiskey, rum, gin, beer, ale, porter, and wine, and in addition thereto any spirituous, vinous, malt or fermented beverages, liquids, and compounds, whether medicated, proprietary, patented, or not, and by whatever name called containing one-half of one per cent (1/2 of 1%) or more of alcohol by volume, which are fit for use for beverage purposes.

(2) The term 'spirituous liquors' shall be deemed to include any alcoholic beverages containing an alcoholic content of more than twenty-one per cent (21 %) by volume.

(3) The term 'alcoholic beverage' means alcoholic beverages of any and all kinds which shall contain more than fourteen per cent (14%) of alcohol by volume.

(4) 'Fortified wines' shall mean any wine made by fermentation from grapes, fruits, or berries, to which nothing but pure brandy has been added, which brandy is made from the same type of grape, fruit or berry that is contained in the base wine to which it is added, and having an alcoholic content of over fourteen per cent (14%) and not more than twenty-one per cent (21%) of absolute alcohol, reckoned by volume, and approved by the State Board of Alcoholic Control as to identity, quality, and purity as provided in Chapter 18.

(5) The term 'unfortified wines' shall mean wine of an alcoholic content produced only by natural fermentation or by the addition of pure cane, beet or dextrose sugar and having an alcoholic content of not less than five per cent (5%) and not more than fourteen per cent (14%) of absolute alcohol, the per cent of alcohol to be reckoned by volume, which wine has been approved as to identity, quality, and purity by the State Board of Alcoholic Control as provided in Chapter 18A.

(6) The term 'native wines' shall mean wine made from grapes, fruit, or berries and having only such alcoholic content as natural fermentation may produce.

(8) The term 'person' shall mean any individual, firm, partnership, association, corporation, or other organizations, groups, or combination of persons acting as a unit.

(9) The term 'sale' shall include any transfer, trade, exchange or barter in any manner or by any means whatsoever, for a consideration.

(10) The word 'license' shall mean a written or printed certificate which allows a person to engage in some phase of the liquor industry, and which may be issued by the State Commissioner of Revenue, by a municipality, or by a county, pursuant to the provisions of this Article. All annual licenses shall expire April 30 of each year.

(11) The word 'permit' shall mean a written or printed authorization to engage in some phase of the liquor industry, which may be issued by the State Board of Alcoholic Control under the provisions of Chapter 18A. All annual permits shall expire on April 30 of each year.

(12) The term 'Chapter 18A' shall mean Chapter 18A of the General Statutes of North Carolina.

All intoxicating liquors shall be taxed as provided in this Article whether or not meeting all criteria of the above definitions.

"§ 105-113.69. Permit required to obtain license. — Before applying for any license under this Article, the applicant must first secure an appropriate permit from the State Board of Alcoholic Control, as provided by Chapter 18A. The State Board shall furnish to the Department of Revenue a list of all permits issued.

"§ 105-113.70. Resident manufacturers of malt beverages and unfortified wines. — The brewing or manufacture of malt beverages or unfortified wine shall be permitted in this State upon the payment of an annual license tax to the Commissioner of Revenue in the sum of five hundred dollars ($500.00) for a period ending on the next succeeding thirtieth day of April and annually thereafter. Persons licensed under this section may sell such beverages in barrels, bottles, or other closed containers only to persons licensed under the provisions of this Article to sell at wholesale, and no other license tax shall be levied upon the business taxed in this section. Provided, that pursuant to the rules and regulations of the State Board of Alcoholic Control, the sale of malt beverages and unfortified wine to nonresident wholesalers is authorized when the purchase is not for resale in this State. The sale of malt, hops, and other ingredients used in the manufacture of malt beverages and unfortified wine is hereby permitted and allowed: Provided, that any person engaged in the business of manufacturing unfortified wines in this State shall be required to pay the following tax based on the number of gallons manufactured:

Where not more than 100 gallons are manufactured for sale............................................. $5.00

Where 100 gallons and not more than 200 gallons are

manufactured for sale.................................................................................................... $10.00

Where 200 gallons and not more than 500 gallons are

manufactured for sale.................................................................................................... $25.00

Where 500 gallons and not more than 1,000 gallons are

manufactured for sale.................................................................................................... $50.00

Where 1,000 gallons and not more than 2,500 gallons are

manufactured for sale.................................................................................................. $200.00

Where 2,500 gallons or more are manufactured for sale............................................... $250.00

When a licensed resident manufacturer of malt beverages procures a proper license under this section, it may receive the malt beverages that are manufactured by it at some point outside this State, but within the United States, for transshipment to dealers in this or other states, provided that such resident manufacturer is actually engaged in the manufacturing in this State of malt beverages. Such shipments of malt beverages for transshipment to other states shall be kept segregated by the resident manufacturer in its warehouse from any such North Carolina taxpaid beverages and shall comply with any and all rules and regulations promulgated by the Commissioner of Revenue and the State Board of Alcoholic Control.

Nothing in this Article shall be construed to impose any tax upon any resident citizen of this State who makes native wines for the use of himself, his family, and his guests from fruits, grapes, and berries cultivated or grown wild upon his own land.

"§ 105-113.71. Malt beverage and unfortified wine bottler's license. — Any person who shall engage in the business of receiving shipments of malt beverages in barrels or other containers, and bottling the same for sale to others for resale, shall pay an annual license tax of two hundred fifty dollars ($250.00); and any person who shall engage in the business of bottling unfortified wine shall pay an annual license tax of two hundred fifty dollars ($250.00): Provided, however, that any person engaged in the business of bottling malt beverages and also unfortified wine shall pay an annual license tax of four hundred dollars ($400.00). No other license tax shall be levied upon the businesses taxed in this section, but licensees under this section shall be liable for the payment of the taxes imposed by G.S. 105-113.86 in the manner therein set forth.

"§ 105-113.72. Manufacturers and bottlers o fortified wines. — Any person, firm, or corporation authorized to do business in North Carolina may, subject to the laws of this State and the rules and regulations of the State Board of Alcoholic Control, engage in the business of manufacturing, producing and bottling of fortified wines, and is hereby authorized and permitted to manufacture, purchase, import, and transport brandy and other ingredients and equipment used in the manufacture of fortified wines; provided, that G.S. 18A-29 shall be applicable to the transportation of fortified wines, alcohol, and brandy used in the manufacture thereof.

The same annual license tax imposed upon manufacturers and bottlers of unfortified wines in G.S. 105-113.70 and G.S. 105-113.71 shall be paid by the manufacturer and bottler of fortified wines.

"§ 105-113.73. Malt beverage and unfortified wine wholesaler's license. — License to sell at wholesale, which shall authorize licensees to sell malt beverages in barrels, bottles, or other containers in quantities of not less than one case or container to a customer, shall be issued as a Statewide license by the Commissioner of Revenue.

The annual license under this section shall be one hundred fifty dollars ($150.00) and shall expire on the next succeeding thirtieth day of April. The license issued under this section shall be revocable at any time by the Commissioner of Revenue for failure to comply with any of the conditions of this Article with respect to the character of records required to be kept, reports to be made or payment of other taxes hereinafter set out.

Licensees to sell at wholesale unfortified wine shall pay an annual license tax of one hundred fifty dollars ($150.00): Provided, that a licensee to sell at wholesale malt beverages and unfortified wine shall pay an annual license tax of two hundred fifty dollars ($250.00).

If any wholesaler maintains more than one place of business or storage warehouse from which orders are received or beverages are distributed, a separate license shall be paid for each separate place of business or warehouse.

The owner or operator of every distributing warehouse selling, distributing, or supplying to retail stores malt beverages or unfortified wine shall be deemed a wholesale distributor within the meaning of this Article and shall be liable for the tax imposed in this section and shall comply with the conditions imposed in this Article upon wholesale distributors of beverages with respect to payment of taxes levied in this Article and bond for the payment of such taxes.

No county shall levy a tax on any business under the provisions of this section, nor shall any city or town, in which any person, firm, corporation or association taxed hereunder has its principal place of business levy and collect more than one-fourth of the State tax levied under this section; nor shall any tax be levied or collected by any county, city or town on account of delivery and/or sale of malt beverages or unfortified wine.

"§ 105-113.74. Fortified wine wholesalers' license. — Nothing in this Article or Chapter 18A shall prevent wholesale distributors from possessing, transporting, warehousing, or selling, as a wholesaler, in any county of the State, and the State Alcoholic Control Board shall approve and authorize the licensing of wholesale distributors, in any county, who qualify under the provisions of Chapter 18A; provided, that such sales are to persons, firms or corporations that have complied with the licensing provisions of this Article and Chapter 18A.

The same annual license tax imposed upon wholesalers of unfortified wines shall be paid by wholesalers of fortified wines, except that a resident wholesaler of both unfortified and fortified wine shall pay only the license tax rate applicable to unfortified wine.

"§ 105-113.75. Sales on railroad trains. — The sale of malt beverages and unfortified wine shall be permitted on railroad trains in this State to be sold only in dining cars, buffet cars, Pullman cars, or club cars, and for consumption on such cars upon payment to the Commissioner of Revenue of one hundred dollars ($100.00) for each railroad system over which such cars are operated in this State for an annual Statewide license expiring on the next succeeding thirtieth day of April. No other license tax shall be levied upon licensees under this section, but every licensee under this section shall make a report to the Commissioner of Revenue on or before the fifteenth day of each calendar month covering sales for the previous month and payment of the tax on such sales at the rate of tax levied in this Article.

"§ 105-113.76. Salesman's license. — License for salesmen, which shall authorize the licensee to offer for sale within the State or solicit orders for the sale within the State of malt beverages, or unfortified wine, or fortified wine, shall be issued by the Commissioner of Revenue upon the payment of an annual license tax of twelve dollars and fifty cents ($12.50) to the Commissioner of Revenue, such license to expire on the next succeeding thirtieth day of April. License to salesmen shall be issued only upon the recommendation of the vendor whom they represent, and no other license tax shall be levied under this section.

"§ 105-113.77. Retail malt beverage license. — Licenses issued for the retail sale of malt beverages shall be of two kinds:

(1) 'On-premises' license, which shall be issued for bona fide restaurants, cafes, cafeterias, hotels, lunch stands, drugstores, filling stations, grocery stores, cold-drink stands, tea rooms, or incorporated or chartered clubs. Such license shall authorize the licensee to sell at retail malt beverages for consumption on the premises designated in the license, and to sell malt beverages in original packages for consumption off the premises.

(2) 'Off-premises' license, which shall authorize the licensee to sell at retail malt beverages for consumption only off the premises designated in the license, and only in the immediate container in which the beverage was received by the licensee.

In a municipality the governing board of such municipality shall determine whether an applicant for license is entitled to a 'premises' license under the terms of this Article, and outside of municipalities such determination shall be by the board of commissioners of the county.

"§ 105-113.78. Retail unfortified wine license. — Licenses issued for the retail sale of unfortified wine shall be of two kinds:

(1) 'On-premises' licenses shall be issued only to bona fide hotels, cafeterias, cafes, and restaurants which shall have a Grade A rating from the State Department of Health, and shall authorize the licensees to sell at retail for consumption on the premises designated in the license and to sell unfortified wine in original containers for consumption off the premises. Provided, no such license shall be issued except to such hotels, cafeterias, cafes, and restaurants where prepared food is customarily sold and only to such as are licensed under the provisions of subsection (a) of G.S. 105-62.

(2) 'Off-premises' licenses shall authorize the licensee to sell unfortified wine at retail for consumption off the premises designated in the license, and all such sales shall be made in the immediate container in which the wine was purchased by the licensee.

"§ 105-113.79. Annual municipal retail license tax. — (a) The annual license tax to sell at retail malt beverages for municipalities shall be:

(1) for 'on-premises' license, fifteen dollars ($15.00);

(2) for 'off-premises' license, five dollars ($5.00).

(b) The annual license tax to sell at retail unfortified wine shall be:

(1) for 'on-premises' license, fifteen dollars ($15.00);

(2) for 'off-premises' license, ten dollars ($10.00).

(c) The rate of license tax levied in this section shall be for the first license issued to one person and for each additional license issued to one person an additional tax of ten per cent (10%) of the base tax, such increase to apply progressively for each additional license issued to one person.

"§ 105-113.80. Application for retail or wholesale municipal license. — Every person making application for a license to sell at retail or wholesale malt beverages or unfortified wine, if the place where such sale is to be made is within a municipality, shall make application first to the governing board of such municipality, and the application shall contain:

(1) the name and residence of the applicant and the length of his residence within the State of North Carolina;

(2) the particular place for which the license is desired, designating the same by a street and number, if practicable; if not, by such other apt description as definitely locates it;

(3) the name of the owner of the premises upon which the licensed business is to be carried on;

(4) that the applicant intends to carry on the business authorized by the license for himself or under his immediate supervision and direction;

(5) a statement that the applicant is a citizen and resident of North Carolina and is not less than 21 years of age; that he has not been convicted of, or entered a plea of guilty or nolo contendere to, a felony or other crime involving moral turpitude within the past three years; or a violation of the liquor laws, either State or federal, within the past two years.

The application must be verified by the affidavit of the petitioner made before a notary public or other person duly authorized by law to administer oaths. If it appears from the statement of the applicant or otherwise that he has at any time been convicted of, or entered a plea of guilty or nolo contendere to, a felony or other crime involving moral turpitude within the past three years, or that he has, within the two years prior to the filing of the application, been adjudged guilty of violating the liquor laws, either State or federal, or that he has within two years prior to the filing of the application completed a sentence for violation of the liquor laws, such license shall not be granted. If it appears that any false statement is knowingly made in any part of the application and a license received thereon, the license shall be revoked and the applicant subjected to the penalty provided for misdemeanors. Before issuing a license, the governing body of the municipality shall be satisfied that the statements required by subdivisions (1), (2), (3), (4), and (5) of this section are true.

Neither the State nor any city or county shall issue a license under this Article to any person, firm, or corporation who is not a citizen of the United States and who has not been a bona fide resident of the State of North Carolina for one year. Provided, that if the applicant is a corporation, the requirement as to residence shall not apply to the officers, directors, or stockholders of the corporation; however, such residence requirements shall apply to any officer, director, stockholder, agent, or employee who is also the manager and in charge of the premises for which the license is applied for, but the governing body of the county or municipality may, in its discretion, waive such requirement. No resident of the State shall obtain a license under this Article and employ or receive aid from a nonresident for the purpose of defeating this requirement.

"§ 105-113.81. Annual county license to sell at retail. — License to sell at retail shall be issued annually by the board of commissioners of the county, and application for such license shall be made in the same manner and contain the same information set out in the preceding section with respect to municipal license. If the application is for license to sell within a municipality, the application must also show that license has been granted the applicant by the governing board of such municipality. The granting of a license by the governing board of a municipality shall determine the right of an applicant to receive a county license upon compliance with the conditions of this Article.

The clerk of the board of commissioners of each county shall make prompt report to the Commissioner of Revenue of each license granted by the board of commissioners of each county. The county license fee shall be fixed at twenty-five dollars ($25.00) for an 'on-premises' license and five dollars ($5.00) for an 'off- premises' license for the sale of malt beverages, and twenty-five dollars ($25.00) for the sale of unfortified wine; the same shall be placed in the county treasury, for the use of the county.

"§ 105-113.82. Issuance of license mandatory. — Except as herein provided, it shall be mandatory that the governing body of a municipality or county issue a license to any applicant when such person shall have complied with requirements of this Article and Chapter 18A: Provided, the governing board of any county or municipality which has reason to believe that any applicant for license has, during the preceding license year, committed any act or permitted any condition for which his license (or permit) was, or might have been, revoked under this Article or Chapter 18A, said governing board shall be authorized to hold a hearing concerning the issuance of license to the applicant at a designated time and place, of which the applicant shall be given 10 days' notice; at the hearing the applicant may appear, offer evidence, and be heard, and the governing body shall make findings of fact based on the evidence at the hearing and shall enter the findings in its minutes; if, from the evidence the governing body finds as a fact that during the preceding license year the applicant committed any act or permitted any condition for which his license (or permit) was, or might have been, revoked under this Article or Chapter 18, the governing body may refuse to issue a license to said applicant. Provided, further, that the applicant may and shall have the right to appeal from an adverse decision to the superior court of said county where and when the matter shall be heard, as by law now provided for the trial of civil actions; that said notice of appeal may be given at the time of the hearing or within 10 days thereafter, and said cause upon appeal shall be docketed at the next ensuing term of civil superior court in said county. And provided, further, that such governing bodies in the counties of Alamance, Alexander, Ashe, Avery, Chatham, Clay, Duplin, Granville, Greene, Haywood, Jackson, Macon, Madison, McDowell, Montgomery, Nash, Pender, Randolph, Robeson, Sampson, Transylvania, Vance, Watauga, Wilkes, Yadkin, or any municipality therein, the City of Greensboro in Guilford County and the town of Aulander, shall be authorized in their discretion to decline to issue the 'on-premises' licenses provided for in G.S. 105-113.78 (1).

"§ 105-113.83. Annual state license to sell unfortified wine at retail. — Every person who intends to engage in the business of selling unfortified wines shall procure an annual State license for such business, which license shall in all cases be issued under the same restrictions, rules and regulations as set out in this Article for the issuance of license for the sale of malt beverages, and for which license the following schedule of taxes is hereby levied:

(1) for an 'on-premises' license, twenty-five dollars ($25.00);

(2) for an 'off-premises' license, five dollars ($5.00).

Such retail license shall authorize the sale of the unfortified wine only on the premises described in the license, and if the same person operates more than one place at which unfortified wine is sold at retail, he shall obtain a license for each such place and pay therefor the license tax provided in this section.

If the license issued to any person by any municipality or county to sell the beverages referred to in this Article shall be revoked by the proper officers of such municipality or county, or by any court, it shall be the duty of the Commissioner of Revenue to revoke the State license of such licensee; and in such event, the licensee shall not be entitled to a refund of any part of the license tax paid. It shall be unlawful for any wholesale licensee to make any sale or delivery of unfortified wine to any person except persons who have been licensed to sell such beverages at retail, as prescribed in this Article.

It shall be unlawful for any retail licensee to purchase any unfortified wine from any person except wholesale licensees maintaining a place of business within this State and duly licensed under the provisions of this Article.

"§ 105-113.84. Annual retail malt beverage State license; sale of short-filled' packages by manufacturers to employees. — Every person who intends to engage in the business of retail sales of malt beverages shall also apply for and procure an annual State license from the Commissioner of Revenue.

Five dollars ($5.00) shall be charged for the first license issued to each licensee, and for each additional license issued to one person an additional tax of ten per cent (10%) of the $5.00 base tax shall be charged. That is to say, for the second license issued the tax shall be five dollars and fifty cents ($5.50) annually, for third license six dollars ($6.00) annually, and an additional fifty cents (50¢) per annum for each additional license issued to such person.

A resident manufacturer of malt beverages may sell 'short-filled' packages to its employees for the sole use of said employees, members of their families, and bona fide guests in this State provided that such manufacturer sells only such 'short-filled' packages on which the appropriate North Carolina taxes have been paid or will be paid, based upon the size of the bottle or container short filled. Any sale made to any employee of said manufacturer under this section shall not be construed as a retail or wholesale sale under any other provisions of this Article or Chapter 18A, and such manufacturer shall not be required by reason of such sales to obtain a permit under Chapter 18A or license as provided by this Article.

"§ 105-113.85. Retail fortified wine licenses. — In any county or municipality in which the operation of alcoholic beverage control stores is authorized by law, it shall be legal to sell fortified wines for consumption on the premises in hotels and restaurants that have a Grade A rating from the State Board of Health, and it shall be legal to sell said wines in drug stores and grocery stores for off-premises consumption; such sales, however, shall be subject to the rules and regulations of the State Alcoholic Beverage Control Board. The local and State licenses taxes for retailers of fortified wines shall be the same as for retailers of unfortified wines.

Application for the licenses for the sale of fortified wines shall be made in the same manner as for the licenses for the sale of unfortified wines. Provided, however, that retailers of both unfortified and fortified wine shall pay only the license tax rate applicable to unfortified wine.

"§ 105-113.86. Additional tax. — (a) In addition to the license taxes herein levied, a tax is hereby levied upon the sale of malt beverages of seven dollars and fifty cents ($7.50) per barrel of 31 gallons, or the equivalent of such tax in containers of more or less than 31 gallons, and in bottles or other containers of not more than six ounces, a tax of one and one-fourth cents (1 ¼¢) per bottle or container, and in bottles or other containers of more than six ounces and not more than 12 ounces, a tax of two and one-half cents (2 l/2¢) per bottle or container, and in bottles or containers of the capacity of one quart, or its equivalent, a tax of six and two-thirds cents (6 2/3¢) per bottle or container: Provided that fruit cider of alcoholic content not exceeding that provided in this Article may be sold in bottles or other containers of not more than six ounces at a tax of five-eighths of a cent (5/8ths of 1%) per bottle or container.

Wholesale distributors and importers may, at their option, pay the tax levied in this subsection at the rate of twenty-one one-hundredths of a cent (.21¢) per ounce when the beverages taxed herein contained in bottles of over six ounces.

(1) In addition to all other taxes levied in this Chapter, there is hereby levied an additional tax or surtax upon the sale of malt beverages of seven dollars and fifty cents ($7.50) per barrel of 31 gallons, or the equivalent of such tax in containers of more or less than 31 gallons, and in bottles or other containers of not more than six ounces, a tax of one and one-fourth cents (1 l/4¢) per bottle or container, and in bottles or other containers of more than six ounces and not more than twelve ounces, a tax of two and one-half cents (2 ½¢) per bottle or container, and in bottles or containers of the capacity of one quart, or its equivalent, a tax of six and two-thirds cents (6 2/3¢) per bottle or container. Notwithstanding any provisions of subsection (p) of this section, none of the revenues collected pursuant to the tax imposed by this subsection shall be allocated or distributed to any county or municipality, but all of said revenue derived from the increase in tax rates imposed by this subsection shall be paid into the general fund of the State. Every person, firm, or corporation who owns or possesses any malt beverages on July 1, 1955, for the purpose of sale in this State shall file with the Commissioner of Revenue not later than July 20, 1955, a complete inventory of such beverages and pay to the Commissioner of Revenue the tax imposed by this subsection with respect to all such beverages on hand on said July 1, 1955. The Commissioner of Revenue shall prescribe the form and manner of making such inventory reports and the method of evidencing the payment of the tax herein imposed with respect to said inventory of said beverages.

(2) Notwithstanding any other provisions of subsection (a) of this section, as amended by Chapter 1313 of the 1955 Session Laws, the rate of the tax therein imposed in said subsection (a) with respect to malt beverages shall be one and one-half cents (1 l/2¢) per bottle or container with respect to such beverages in bottles or other containers of exactly seven ounces.

Notwithstanding any other provisions of subdivision (a)(1) of this section, as enacted by Chapter 1313 of the 1955 Session Laws, the rate of additional tax or surtax therein imposed in said subdivision (a)(1) with respect to malt beverages shall be one and one-half cents (1 1/2¢) per bottle or container with respect to such beverages in bottles or other containers of exactly seven ounces.

Except as herein provided, all provisions of this Article shall be applicable with respect to the taxes imposed by this subsection in the same manner and to the same extent that said provisions are applicable to other taxes imposed in this Article with respect to malt beverages.

The provisions of this subsection shall not be applicable with respect to beverages in bottles or containers in other than those of exactly seven ounces, and the provisions of this section, as amended by said Chapter 1313 above referred to, shall be applicable to said beverages in any other size containers, and the taxes therein imposed with respect to beverages in containers of more than six but not more than twelve ounces shall be applicable with respect to said beverages in containers of more than seven but not more than twelve ounces.

(b) Each licensed wholesale distributor and importer of malt beverages shall pay the excise tax levied by this Article on said beverages on or before the fifteenth day of the month following the calendar month in which they are first sold or disposed of within this State by said wholesale distributor and importer.

(c) Each of the licensees responsible for the payment of the excise tax levied by this Article shall, on or before the fifteenth of each month, file a report, verified on forms provided by the Commissioner of Revenue, showing, for the preceding calendar month, the exact quantities of malt beverages, by size and type of container:

(1) constituting his beginning and ending inventory for the month;

(2) shipped to him from inside this State and received by him in this State;

(3) shipped to him from outside this State and received by him in this State;

(4) sold or disposed of by him in this State;

(5) sold by him in this State to army, navy, air force, and coast guard services of the United States and their organized personnel separately indicating those sales or transactions of malt beverages to which the excise tax is not applicable;

(6) sold or disposed of by him to persons outside this State, separately indicating those sales or transactions of malt beverages to which the excise tax is not applicable.

The report, on forms prescribed by the Commissioner of Revenue, shall also show the amount of excise tax payable, after allowance for all proper deductions, for all such beverages sold or disposed of by him in this State, and shall include such additional information as the Commissioner of Revenue may require for the proper administration of this Article. Payment of the excise tax levied by this Article in the amount disclosed by the report shall accompany the report and shall be paid to the Commissioner of Revenue. Each wholesale distributor and importer required to file a return shall keep complete and accurate books, papers, invoices, and other records as may be necessary to substantiate the accuracy of his report and the amount of excise tax due, and shall retain such records for a period of three years, subject to the use and inspection of the Commissioner of Revenue or his agents.

(d) Any person required by this section to retain books, papers, invoices, and other records who fails to produce the same upon demand by the Commissioner of Revenue or his agent, unless such nonproduction is due to providential or other causes beyond his control, shall be guilty of a misdemeanor.

(e) Each manufacturer, nonresident wholesaler, and foreign wholesaler licensed by the North Carolina Commissioner of Revenue to sell and/or deliver any malt beverages in North Carolina, at the time it sells and/or delivers such beverages to a licensed North Carolina wholesale distributor or importer, shall furnish to each such wholesale distributor or importer a sales ticket or invoice in duplicate, furnishing a third copy to the Commissioner of Revenue, with the following information written thereon:

(1) the name and address of the manufacturer, non-resident wholesaler, or foreign wholesaler making the delivery and/or sale;

(2) the name, address, and license number of the wholesale distributor or importer receiving the shipment, and/or making the purchase;

(3) the exact number of barrels, kegs, or cases delivered and/or purchased, specifying the size and type of container.

(f) Each manufacturer, nonresident wholesaler, or foreign wholesaler licensed by the Commissioner of Revenue to sell and/or deliver malt beverages, unfortified wine, and fortified wine in North Carolina shall prepare and file a monthly report, verified on forms provided by the Commissioner of Revenue, showing the exact number of barrels, kegs, or cases, specifying the size and type of container, of such beverages sold to licensed wholesale distributors or importers during the previous calendar month. This report must be filed with the Commissioner of Revenue on or before the fifteenth day of each calendar month following the month during which the sales are made. Each manufacturer, nonresident wholesaler, or foreign wholesaler shall retain copies of such sales records for a period of three years, subject to the use and inspection of the Commissioner of Revenue or his agents.

(g) Persons operating boats, dining cars, buffet cars or club cars upon or in which malt beverages are sold shall keep such records of the sales of such beverages in this State as the Commissioner of Revenue shall prescribe and shall submit monthly reports of such sales to the Commissioner of Revenue upon a form prescribed therefor by the Commissioner of Revenue and shall pay the excise tax levied under this Article at the time such reports are filed.

(h) On the total excise tax due upon the sale of malt beverages, unfortified wine, and fortified wine levied by this Article, the Commissioner of Revenue shall allow a discount of four per cent (4%). Said discount shall constitute compensation allowed by the State of North Carolina to wholesale distributors and importers for spoilage and breakage and for expenses incurred in the preparation of monthly reports and the maintenance of books, papers and invoices, and bond required by this Article. Provided that no compensation or refund shall be made for tax-paid beverages given as free goods for advertising.

(i) In addition to the allowance of a discount on the excise tax due from wholesale distributors or importers, as provided in subsection (h) of this section, the wholesale distributor or importer shall not be required to pay the excise tax on any malt beverages, unfortified wine, and fortified wine, destroyed or spoiled or otherwise rendered unsalable in a major disaster, upon adequate proof of same. For the purposes of this subsection a major disaster shall be defined as the destruction, spoilage or unsalability of 50 or more cases, or their equivalent, of malt beverages or of 25 or more cases, or their equivalent, of unfortified wine and fortified wine.

The Commissioner of Revenue shall promulgate rules and regulations to relieve licensed residenced manufacturers from the liability of paying the excise taxes levied under this section on malt beverages that are furnished free of charge to customers, visitors and employees on the manufacturers' licensed premises for consumption on said premises.

(j) The Commissioner of Revenue shall promulgate rules and regulations to relieve resident manufacturers, wholesale distributors, and importers from the liability of paying the excise tax levied and imposed on malt beverages that are intended to be sold and are thereafter sold to army, navy, air force and coast guard services of the United States and their organized personnel in this State; or which are intended to be shipped and are thereafter shipped out of this State by such resident manufacturers, wholesale distributors, or importers for resale outside of this State; or which are intended for use or consumption by or on ocean-going vessels that ply the high seas in interstate or foreign commerce in the transport of freight and/or passengers for hire exclusively, when delivered to an officer or agent of such vessel for use by or on such vessel.

Each manufacturer or bottler manufacturing beverages within or outside the State of North Carolina which are intended to be sold and are thereafter sold to the army, navy, air force, coast guard services, or any other military establishment in North Carolina shall identify such beverages by placing on the label, crown, can end, or kegs the phrase "For Military Use Only," any and all laws, regulations, and requirements to the contrary notwithstanding. Provided that all other malt beverages intended for sale in North Carolina shall bear no special identification other than proprietary crowns, lids, or stamps.

(k) If the excise tax levied and imposed in this section shall not be paid when due by the wholesale distributor or importer responsible therefor, there shall be added to the amount of the tax as a penalty a sum equivalent to ten per cent (10%) thereof, and in addition thereto interest on the tax and penalty at the rate of one-half of one per cent (1/2 of 1%) per month or fraction of a month from the date the tax became due until paid. Nothing herein contained shall be construed to relieve any licensee otherwise liable from liability for payment of the excise tax.

(l) Any person who shall fail, neglect, refuse to comply with or violate any provisions of this section, for which no specific penalty is provided, or who shall refuse to permit the Commissioner of Revenue or his agents to examine his books, papers, invoices, and other records or his store of intoxicating liquors in and upon any premises where the same are manufactured, bottled, stored, sold, offered for sale, or held for sale, shall be guilty of a misdemeanor.

(m) The Commissioner of Revenue is hereby charged with the enforcement of the provisions of this section and hereby authorized and empowered to prescribe, adopt, promulgate, and enforce rules and regulations relating to any matter or thing pertaining to the administration and enforcement of the provisions of this section, and the collection of taxes, penalties, and interest imposed by this Article.

(n) The Commissioner of Revenue is hereby authorized to prescribe, adopt, promulgate, and enforce the rules and regulations relating to the transportation of malt beverages and unfortified wine through this State, and from points outside of this State to points within this State, and to prescribe, adopt, promulgate, and enforce rules and regulations reciprocal to those of, or laws of, any other state or territory affecting the transportation of beverages manufactured in this State.

(o) In addition to the license taxes herein levied, a tax is hereby levied upon the sale of unfortified wine at the rate of sixty cents (60¢) per gallon.

Each licensed wholesale distributor and importer of unfortified wine shall pay the excise tax levied by this Article on said beverages on or before the fifteenth day of the month following the calendar month in which they are first sold or disposed of within the State by said licensed wholesale distributor or importer. The provisions of subsections (c) through (l) inclusive, of this section, shall also be applicable to the control of the sale of unfortified wine and fortified wine.

(p) From the taxes collected annually under subsection (a) an amount equivalent to forty-seven and one-half per cent (47 1/2¢) thereof, and from the taxes collected annually under subsection (o) an amount equivalent to one-half thereof shall be allocated and distributed, upon the basis herein provided, to counties and municipalities wherein such beverages may be licensed to be sold at retail under the provisions of this Article. The amounts distributable to each county and municipality entitled to the same under the provisions of this subsection shall be determined upon the basis of population therein as shown by the latest federal decennial census. Where such beverages may be licensed to be sold at retail in both county and municipality, allocation of such amounts shall be made to both the county and the municipality on the basis of population. Where such beverages may be licensed to be sold at retail in a municipality in a county wherein the sale of such beverages is otherwise prohibited, allocation of such amounts shall be made to the municipality on the basis of population; provided, however, that where the sale of such beverages is prohibited within defined areas within a county or municipality, the amounts otherwise distributable to such county or municipality on the basis of population shall be reduced in the same ratio that such areas bear to the total area of the county or municipality, and the amount of such reduction shall be retained by the State: Provided, further, that if said area within a county is a municipality for which the population is shown by the latest federal decennial census, reduction of such amounts shall be based on such population rather than on area. The Commissioner of Revenue shall determine the amounts distributable to each county and municipality, for the period July 1, 1947, to September 30, 1947, inclusive, and shall distribute such amounts within 60 days thereafter; and the Commissioner of Revenue annually thereafter shall determine the amounts distributable to each county and municipality for each twelve-month period ending September 30 and shall distribute such amounts within 60 days thereafter.

The taxes levied in this section are in addition to the taxes levied in Schedule E of the Revenue Act.

(q) Each nonresident manufacturer, nonresident wholesaler, and foreign wholesaler of malt beverages then licensed by the Commissioner of Revenue to sell and/or deliver such beverages in North Carolina shall, if required by the Commissioner of Revenue, on or before January 15, 1968, make an advance lump- sum excise tax payment, in cash or equivalent, to the Commissioner of Revenue, in an amount equal to each such nonresident manufacturer's, nonresident wholesaler's, and foreign wholesaler's highest two months' tax liability for tax crowns, lids, and stamps during the twelve-month period ending June 30, 1967. Each such advance lump-sum excise tax payment shall be credited to the account of such nonresident manufacturer, nonresident wholesaler, and foreign wholesaler by the Commissioner of Revenue, and, beginning on the first day of January, 1969, and on the first day of each month thereafter, a refund in the amount of one-twelfth of each advance lump- sum excise tax payment shall be made by the Commissioner of Revenue to such nonresident manufacturer, nonresident wholesaler, or foreign wholesaler until the total amount of such refunds equals the total amount of such advance lump-sum excise tax payment.

(r) As of the close of business on December 31, 1967, each nonresident manufacturer, nonresident wholesaler, and foreign wholesaler then licensed by the Commissioner of Revenue to sell and/or deliver in North Carolina malt beverages, unfortified wine, and fortified wine shall take an inventory of all North Carolina taxpaid crowns, lids, and stamps, affixed and unaffixed, in his possession and control and shall submit the results of such inventory to the North Carolina Commissioner of Revenue no later than January 15, 1968, verified on forms provided by the Commissioner.

Upon receipt of each such verified inventory, the Commissioner of Revenue shall satisfy himself as to the accuracy of each such inventory and shall determine the total amount of tax payment represented thereby.

(s) Each nonresident manufacturer, nonresident wholesaler, and foreign wholesaler in possession of unaffixed taxpaid stamps as of the close of business on December 31, 1967, shall surrender such taxpaid stamps to the Commissioner of Revenue within 60 days thereafter and shall claim refund therefor.

(t) Each nonresident manufacturer, nonresident wholesaler, and foreign wholesaler may claim refunds on his monthly report due on or before January 15, 1968, for the full amount of tax paid by the affixation, before January 1, 1968, of stamps, crowns, or lids to the original containers of malt beverages, unfortified wine, and fortified wine, which containers are still in his possession and control on January 1, 1968. The Commissioner of Revenue shall provide for a refund in the amount of the tax paid:

(1) for said stamps, crowns, and lids affixed before January 1, 1968, to containers in the possession and control of such manfacturer or wholesaler on January 1, 1968;

(2) for tax stamps returned unused to the Commissioner within 60 days after January 1, 1968; and

(3) for tax crowns and lids as to which the nonresident manufacturer, nonresident wholesaler or foreign wholesaler has submitted satisfactory proof to the Commissioner, on or before January 15, 1968, that said tax crowns and lids were in his possession as unused inventory on January 1, 1968.

The total of the refunds provided for in this subsection shall be credited to the account of said nonresident manufacturer, nonresident wholesaler, or foreign wholesaler in the same manner as that provided in subsection (q) of this section and shall be refunded to said nonresident manufacturer, nonresident wholesaler, or foreign wholesaler in the same manner and in accordance with the schedule set forth in that subsection.

Each nonresident manufacturer, nonresident wholesaler, and foreign wholesaler shall, after determination of the amount of refund due him for his crown and lid inventory on January 1, 1968, thereafter be permitted to use the crowns and lids constituting that inventory on malt beverages, unfortified wine, and fortified wine, solely as closures, without such use indicating payment of the North Carolina excise tax.

(u) As of the close of business on December 31, 1967, each wholesale distributor and importer licensed to sell malt beverages, unfortified wine, and fortified wine shall take inventory of all such beverages in his possession and control having taxpaid crowns, lids, and stamps affixed thereto and shall submit, verified on forms provided by the Commissioner, the results of such verified inventory to the Commissioner of Revenue no later than January 15, 1968. Upon receipt of each such verified inventory, the Commissioner of Revenue shall satisfy himself as to the accuracy of each such inventory and shall determine the total amount of the tax payment represented thereby.

Each wholesale distributor and importer may claim credit or refund on his monthly report due on or before January 15, 1968, for the full amount of the tax represented by the inventory filed as required by this subsection. The Commissioner of Revenue shall provide for a credit or refund equal to the full amount of said tax to each wholesale distributor or importer claiming same.

Each wholesale distributor or importer shall, after determination of the amount of credit or refund due him, thereafter be permitted to sell or otherwise dispose of all malt beverages, unfortified wine, and fortified wine to which taxpaid crowns, lids, or stamps are affixed, which are in his possession and control as of the close of business on December 31, 1967, and which have been reported in the inventory required by this subsection; provided that said crowns, lids, or stamps shall not be considered evidence that the excise tax has been paid on the beverages to which they are affixed.

"§ 105-113.87. Use of funds allocated to counties and municipalities. — The funds allocated to counties and/or municipalities under G.S. 105-113.86 (p) may be used by said counties or municipalities as any other general or surplus funds of said unit may be used.

"§ 105-113.88. By whom excise taxes payable. — The excise tax levied in G.S. 105-113.86 upon the sale of malt beverages shall be paid to the Commissioner of Revenue by the wholesale distributor or importer of such beverages, and the excise tax levied in G.S. 105-113.86 or G.S. 105-113.95 upon the sale of fortified and unfortified wine shall be paid to the Commissioner of Revenue by the wholesale distributor or importer of such beverages; provided that the excise tax levied in G.S. 105-113.86 shall be paid and collected on the same beverages only once. The Commissioner of Revenue shall require each wholesale distributor or importer to furnish bond in an indemnity company licensed to do business under the insurance laws of this State in such sums as the Commissioner of Revenue shall find adequate to cover the tax liability of each such wholesale distributor or importer, proportioned to the volume of business of each such wholesale distributor or importer, but in no event to be less than one thousand dollars ($1,000.00) or more than fifty thousand dollars ($50,000.00), or to deposit federal, State, county, or municipal bonds in required amounts; such county and municipal bonds to be approved by the Commissioner of Revenue. The Commissioner of Revenue may grant such extension of time for compliance with this condition as may be found reasonable.

"§ 105-113.89. Nonresident manufacturers and wholesale dealers to be licensed. — From and after April 30, 1939, every nonresident desiring to engage in the business of selling malt beverages, or unfortified wine, or fortified wine to wholesale dealers licensed under the provisions of this Article, shall apply to the Commissioner of Revenue for an annual license so to do. The Commisssioner of Revenue may require every such applicant to execute and deposit with the Commissioner a bond in a sum not to exceed two thousand dollars ($2,000), conditioned upon the faithful compliance by the applicant with the provisions of this Article, and particularly upon his making no sales of any malt beverages or unfortified wine or fortified wine to any person in this State except a duly licensed wholesale dealer. Upon the payment of a license tax of one hundred fifty dollars ($150.00), if the Commissioner is satisfied that said applicant is a bona fide manufacturer or distributor of malt beverages, or unfortifed wine, or fortified wine, he shall then issue a license to such applicant which shall bear a serial number. Every holder of such nonresident license shall thereafter put the number of such license on every invoice for any quantity of beverages sold by such licensee to any wholesale dealer in North Carolina. Upon the failure of any such licensee to comply with all the provisions of this Article, the Commissioner of Revenue may revoke such license.

Any resident manufacturer licensed under G.S. 105-113.70 shall not be required to post the bond required by this section.

"§ 105-113.90. Resident wholesalers shall not purchase beverages for resale from unlicensed nonresidents. — It shall be unlawful for any resident wholesale distributor or bottler to purchase any malt beverages, or unfortified wine, or fortified wine for resale within this State from any nonresident who has not procured the license required in the preceding section.

"§ 105-113.91. Malt beverage and wine importer's license. — Any person who shall engage in the business of receiving shipments of malt beverages or wine (fortified or unfortified) and reselling the same in the same form and in the original containers to retailers or to other wholesalers described in this Article may procure from the Commissioner of Revenue an importer's license which will entitle such licensed importer to purchase the beverages described above directly from bottlers, manufacturers and wholesalers located in foreign countries or possessions or territories of the United States, hereinafter called "foreign wholesaler." The annual importer's license as provided for under this section shall be one hundred fifty dollars ($150.00) and shall expire on the next succeeding thirtieth day of April. The license issued under this section shall be revocable at any time by the Commissioner of Revenue for failure to comply with any of the conditions of this Article or any rules or regulations issued by the Commissioner with respect to the character of the records required to be kept, reports to be made, or payment of tax provided for under this Article.

It is the intent of this section to limit the purchase by licensed importers of malt beverages or wine (fortified or unfortified) to sales and shipments made by such foreign wholesalers from their location outside the continental United States directly to the licensed importer in this State.

The Commissioner of Revenue shall require each such importer to furnish bond in an indemnity company licensed to do business under the insurance laws of this State in such sums as the Commissioner of Revenue shall find adequate to cover the tax liability of each such importer but in no event to be less than two thousand dollars ($2,000).

"§ 105-113.92. Payment of tax by retailers. — The granting of a license by any municipality or county under this Article to any person to sell at retail malt beverages, or unfortified wine, or fortified wine shall not be a valid license for such sale at retail until such person shall have filed with the Commissioner of Revenue a bond in a surety company licensed by the Insurance Department to do business in this State in such sum as the Commissioner of Revenue may find to be sufficient to cover the tax liability of every such person, but in no event to be less than one thousand dollars ($1,000). The Commissioner of Revenue may waive the requirement of this section for indemnity bond with respect to any such person who may file a satisfactory contract or agreement with the Commissioner of Revenue that such person will purchase and sell malt beverages, or unfortified wine, or fortified wine only from wholesale distributors or bottlers licensed by the Commissioner of Revenue under this Article who pay the tax under G.S. 105-113.86 and G.S. 105-113.95 upon all such beverages sold to retail dealers in this State. The violation of the terms of any such contract or agreement between any such retail dealer and the Commissioner of Revenue by the purchase or sale of any malt beverages, or unfortified wine, or fortified wine from any one other than a licensed wholesale distributor or bottler under this Article shall automatically cancel the license of any such retail dealer and shall be prima facie evidence of intent to defraud; any person guilty of violation of any such contract or agreement shall be guilty of a misdemeanor.

"§ 105-113.93. Tax on spirituous liquors. — (a) In lieu of taxes levied in Schedule E of the Revenue Laws on the sale of spirituous liquors, there is hereby levied a tax of ten per cent (10%) on the retail price of spirituous distilled liquors of every kind that is sold in this State, including liquors sold in county or municipal A.B.C. stores. Provided, however, that in no event shall the amount paid under this section by county or municipal A.B.C. stores exceed one-half of the net profits from liquors sold through such stores in any county or municipality. The taxes levied in this section shall be payable monthly, at the same time and in the same manner as taxes levied in Schedule E of the Revenue Laws, and the liability for such tax shall be subject to all the rules, regulations, and penalties provided in Schedule E and in other sections of the Revenue Laws for the payment or collection of taxes.

(b) In addition to the tax provided for in subsection (a) of this section, there is hereby levied an additional tax or surtax of two per cent (2%) on the retail price of spirituous distilled liquors of every kind that is sold in this State, including liquors sold in county or municipal A.B.C. stores. The proviso contained in subsection (a) of this section shall not apply to the taxes levied under this subsection.

"§ 105-113.94. Additional tax on spirituous liquors. — In addition to the taxes provided for in subsection (a) and (b) of G.S. 105-113.93, there is hereby levied an additional tax or surtax upon the retail sale of spirituous distilled liquors of every kind that are sold in this State, including liquors sold in county or municipal A.B.C. stores, at the rate of five cents (5¢) for each five ounces or fractional part thereof until July 1, 1970, and on and after July 1, 1970, at the rate of five cents (5¢) for each three and one-third ounces or fractional part thereof. The proviso contained in subsection (a) of G.S. 105-113.93 shall not apply to the taxes levied under this section.

The aforesaid additional tax or surtax shall be in addition to the "total prices" of alcoholic beverages established by the State Board of Alcoholic Control pursuant to G.S. 18A-15. The entire proceeds of the additional tax levied in this section shall be payable monthly at the same time, in the same manner and subject to the same rules, regulations, and penalties as apply to the taxes imposed under G.S. 105-113.93.

"§ 105-113.95. Tax on fortified wines. — In addition to other taxes levied in this Article, there is hereby levied a tax upon the sale of fortified wines of seventy cents (70¢) per gallon.

"§ 105-113.96. Wine for sacramental purposes exempt from tax. — The tax levied in this Article upon the sale of unfortified wine shall not apply to sacramental wines received by ordained ministers of the gospel under the provisions of G.S. 18A-4.

"§ 105-113.97. Exemption of malt beverages sold to ocean-going vessels. — The taxes levied in this Article upon the sale of malt beverages shall not apply to or be chargeable against any manufacturer, bottler, wholesaler, or distributor on any of such beverages sold and delivered for use or consumption by or on ocean-going vessels that ply the high seas in interstate or foreign commerce in the transport of freight and/or passengers for hire exclusively, when delivered to an officer or agent of such vessel for use of such vessel; provided, however, that sales of malt beverages made to officers, agents, members of the crew or passengers of such vessels for their personal use shall not be exempted from payment of such taxes.

"§ 105-113.98. Books, records, reports. — Every person licensed under any of the provisions of this Article shall keep accurate records of purchase and sale of all beverages taxable under this Article, such records to be kept separate from all purchases and sales of merchandise taxable under this Article, including a separate file and record of all invoices. The Commissioner of Revenue or any authorized agent shall at any time during business hours have access to such records. The Commissioner of Revenue may also require regular or special reports to be made by every such person at such times and in such form as the Commissioner may require.

"§ 105-113.99. License shall be posted; not transferable. — Each form of license required by this Article shall be kept posted in a conspicuous place at each place where the business taxable under this Article is carried on, and a separate license shall be required for each place of business. Licenses shall not be transferred to any other person, nor to any other location, except as expressly provided in this Article.

"§ 105-113.100. Persons engaged in more than one business to pay on each; shipments from outside state prohibited. — (a) When any person, firm, or corporation is engaged in more than one business or trade which is made under the provisions of this Article subject to State license taxes, such person, firm, or corporation shall pay the license taxes prescribed in this Article for each separate business or trade.

(b) No person who does not have an appropriate permit and license shall have any intoxicating liquor mailed or shipped to him from outside this State.

"§ 105-113.101. Administrative provisions. — The Commissioner of Revenue and the authorized agents of the State Department of Revenue shall have and exercise all the rights, duties, powers, and responsibilities in enforcing this Article that are enumerated in the Revenue Laws in administering taxes levied in Schedule B of that law. Any person, firm, or corporation engaging in any activity for which a State, county, or municipal license is required under this Article without obtaining said license, or continuing any such activity after the expiration of any State, county, or municipal license, granted under this Article, shall be subject to the same liability for criminal prosecution, and for penalties, as is prescribed in G.S. 105-109.

"§ 105-113.102. Rules and Regulations. — The Commissioner of Revenue shall, from time to time, initiate and prepare such regulations, not inconsistent with this Chapter and Chapter 18A or other provisions of law, as may be useful and necessary to implement the provisions of this Article, such regulations to become effective when approved by the Tax Review Board. All regulations and amendments thereto shall be published and made available by the Commissioner of Revenue.

The Commissioner of Revenue may, from time to time, make and prescribe such administrative rules, not inconsistent with law and the regulations approved by the Tax Review Board, as may be useful for the administration of his department and the discharge of his responsibilities.

References to rules and regulations of the Commissioner of Revenue in this Chapter and in any subsequent amendments or additions thereto (unless expressly provided to the contrary therein) shall be construed to mean those rules and regulations promulgated under the provisions of this section.

"§ 105-113.103. Revocation of license upon revocation of permit. — Whenever the State Board of Alcoholic Control shall certify to the Commissioner of Revenue that any permit issued by said Board has been cancelled or revoked, the Commissioner of Revenue shall thereupon immediately revoke any license that has been issued under this Article to the person whose permit has been revoked by said Board; such revocation by the Commissioner shall not entitle the person whose license was revoked to any refund of taxes or license fees paid for or under said license.

"§ 105-113.104. Violation made misdemeanor, revocation of permits; forfeiture of license. — Except as otherwise expressly provided, whosoever violates any of the provisions of this Article, or any of the rules and regulations promulgated pursuant thereto, shall be guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine or by imprisonment, or by both fine and imprisonment, in the discretion of the court. If any licensee is convicted of the violation of the provisions of this Article, or any of the rules and regulations promulgated pursuant thereto, the court shall immediately declare his permit and license revoked, and shall notify the county commissioners accordingly; no permit or license shall thereafter be granted to him within a period of three years thereafter. Any licensee who sells or permits the sale on his premises or in connection with his business, or otherwise, of any intoxicating liquors not authorized under the terms of this Article, unless otherwise permitted by law, shall, upon conviction thereof, forfeit his license in addition to any punishment imposed by law for such offense."

Sec. 3. Chapter 18 of the General Statutes and the following General Statutes sections are hereby repealed: G.S. 14-327, G.S. 14-328, G.S. 14-330, G.S. 14-331, G.S. 14-332, G.S. 14-333, G.S. 163-272.

Sec. 4. G.S. 15-27.1 is hereby amended and rewritten to read as follows:

"§ 15-27.1. Application of article to all search warrants; exception as to inspection warrants. — The requirements of this Article apply to search warrants issued for any purpose, including those issued pursuant to Chapter 18A of the General Statutes, except that the contents of and procedure relating to inspection warrants authorized under Article 4A of this Chapter and G.S. 14-288.11 are to be governed by the provisions set out in the sections relating to them."

Sec. 5. This act shall become effective October 1, 1971, except that G.S. 18A-30 and 18A-33, relative to hours of sale and consumption, shall be effective upon the ratification of this act. Any license or permit required by this act, which has not been heretofore required by law, must be acquired on or before May 1, 1972.

In the General Assembly read three times and ratified, this the 16th day of July, 1971.