NORTH CAROLINA GENERAL ASSEMBLY
1975 SESSION

CHAPTER 722
SENATE BILL 406

AN ACT TO PROVIDE FOR THE MANUFACTURE AND DISTRIBUTION OF WINE AND THE FURNISHING OF WINE FOR PROMOTIONAL PURPOSES.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 18A-38 is amended by deleting the first 10 lines thereof and by inserting in lieu thereof the following:
"The State Board of Alcoholic Control shall be referred to herein as 'the Board'. 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. 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:
(a)	Permits issued to wineries, importers and wholesalers shall be as follows:
(1)	Unfortified Winery Permits shall authorize the permittee to manufacture unfortified wines and to sell and deliver or ship the same in accordance with the regulations of the Board, in bottles or other closed containers to persons permitted under the provisions of this Chapter and Article 2C of Chapter 105 to sell at wholesale. A holder of an Unfortified Winery Permit may sell unfortified wine to nonresident wholesalers when the purchase is not for resale in this State.
(2)	Fortified Winery Permits shall authorize the permittee to manufacture, purchase, import, and transport brandy and other ingredients and equipment used in the manufacture of fortified wines. A permittee holding a Fortified Winery Permit may manufacture fortified wines and sell and deliver or ship the same in accordance with the regulations of the Board in bottles, or other permitted closed containers to persons authorized under the provisions of this Chapter to sell at wholesale. The permittee may also sell fortified wine to nonresident wholesalers when the purchase is not for resale in this State.
(3)	Limited Winery Permits. A resident winery holding an Unfortified Winery Permit may also obtain a Limited Winery Permit from the State Board of Alcoholic Control provided that the winery produces its wines principally from honey, grapes or other fruit grown in North Carolina. A Limited Winery Permit shall authorize the permittee to provide visitors with samples for tasting free of charge subject to the rules and regulations of the State Board of Alcoholic Control and the North Carolina Department of Revenue.
(4)	Wine Importers Permits authorize the permittee to import wines from outside the United States in bottles, or other closed containers to warehouse, and sell the same at wholesale for purposes of resale.
(5)	Wholesale Unfortified Wine Permits authorize the permittee to acquire and receive delivery shipments of unfortified wine and to sell and deliver or ship the same in accordance with regulations of the Board, in bottles or other closed containers, approved by the Board, to persons licensed under the provisions of this Chapter to sell the same at wholesale or retail for purposes of resale. An unfortified wine wholesaler may furnish and sell unfortified wine to his employees subject to the regulations of the State ABC Board and the North Carolina Department of Revenue.
(6)	Fortified Wine Wholesalers Permits shall authorize the permittee to possess, transport, warehouse and sell as a wholesaler, fortified wines in any county of the State provided such sales are to persons, firms or corporations that are licensed under the provisions of this Chapter and Chapter 105. A fortified wine wholesaler may furnish or sell fortified wine to his employees subject to the regulations of the State ABC Board and the North Carolina Department of Revenue."
Sec. 2.  G.S. 105-113.83 is amended in the third paragraph to read as follows:
"§ 105-113.83.  Annual State license to sell unfortified wine at retail. — 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 Secretary 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 or wholesale as prescribed in this Article."
Sec. 3.  This act shall become effective upon ratification.
In the General Assembly read three times and ratified, this the 23rd day of June, 1975.