Strike & Techel is excited to announce the addition of Mark Hervey to our ever-expanding Raleigh, North Carolina office! Mark joins us from Dressman Benzinger LaVelle in Cincinnati, Ohio, where he represented alcoholic beverage manufacturers and retailers in both Ohio and Kentucky. Mark’s practice focuses on providing counsel to alcoholic beverage industry members in a wide variety of matters including business formation, contracts, trademarks, and general alcohol regulatory advice. Mark is licensed to practice law in Ohio and Kentucky, a number of federal district and appeals courts, and the United States Supreme Court; his application for reciprocal admission to the North Carolina Bar is currently pending. We are delighted to have found another attorney who shares industry-specific knowledge and passion for this quirky alcoholic beverage practice of law! To learn more about the firm, visit alcohol.law or call 415-226-1400.
Last night, the North Carolina legislature passed Senate Bill 155 (“SB155”), ABC Omnibus Legislation (LINK). SB155 is known as the “Brunch Bill,” but over the past week other pending alcohol legislation has been merged in with the bill, including House Bill 500, which contains several provisions benefitting North Carolina’s breweries. Below is a summary of some of the alcohol law changes coming to North Carolina, if SB155 is signed by Governor Cooper. Earlier Sunday Sales – The highlight of the “Brunch Bill” is a section authorizing local governments to allow sales of alcohol before noon on Sunday. Local governments may pass an ordinance allowing alcohol sales as early as 10 a.m. on Sunday mornings. SB155 previously focused only on restaurants serving alcohol for on-premises consumption, but the legislation was expanded to include all permittees, whether selling alcohol for on- or off-premises consumption. Removing Food Sales Requirements for the Sale of On-Premises Unfortified Wine – North Carolina has food sales requirements for some on-premises permits. Generally speaking, the higher the average alcohol of the product type, the more food must be sold by the permittee in order to serve that product type. Currently, no food must be sold in order to sell beer for on-premises consumption, some food for unfortified wine (16% ABV and under), and substantial food for fortified wine and mixed beverages. SB155 removes the food sales requirements for unfortified wine by enabling an establishment that does not sell any food to obtain a permit for unfortified wine on-premises consumption. Approval of “Crowlers” as Growlers – Currently, “crowlers”—32 ounce aluminum cans designed to be filled for consumers on-demand in the same fashion as a growler—do not meet the definition of a growler in North Carolina because the container is not “resealable.” SB155 amends the definition of a growler to remove the resealable requirement, so that crowlers may be filled by retailers for consumers on-demand in the same way that the retailer may currently fill and sell growlers. Off-Site Storage – SB155 will allow alcohol producers to store alcohol off of the permitted premises, if the off-site storage location has been approved by the federal Alcohol and Tobacco Tax and Trade Bureau. Currently, breweries, wineries, and distilleries are limited to storing alcohol only at their permitted production facility and any permitted wholesale locations. Distillery Special Event Permit – Breweries and wineries have the ability to obtain a special event permit allowing tastings and sales at off-site special events, such as festivals, fundraisers, and conventions. SB155 creates a similar permit for distilleries. Distilleries (including supplier and broker representatives) holding the special event permit would be able to give away free tastings at certain special events. Tastings per consumer are limited to 0.25 ounces of any one product and 1 ounce total. Farm Breweries – North Carolina has several communities that do not allow the sale of alcohol. However, winery tasting rooms are currently allowed to obtain permits for the sale of wine for on- or off-premises consumption, regardless of the results of any local wine election. SB155 creates a similar exception for brewery tasting rooms, but only if local government approval is obtained, and only if the brewery is also a farm that produces agricultural products, including barley, other grains, hops, or fruit, for use in the brewery. Clarifications for Breweries – SB155 contains several clarifications for breweries, formalizing operations or activities that are for the most part already in practice but not yet explicitly authorized. The ability of a brewery to give beer tastings to tour participants is made official by SB155, as well as authorization for a brewery to sell beer from other producers in its taproom. SB155 also allows a brewery to receive beer in North Carolina from an out-of-state production facility for sales to North Carolina wholesalers. Further, the bill confirms that a brewery (and any other commercial permittee) may taste alcohol on the permitted premises for sensory analysis, quality control, or educational purposes. If your business has questions about SB155 or North Carolina alcohol law, contact Strike & Techel for more information.
It is called everything from the bombastic “corkage” to the everyperson “BYOB,” but it means the same across all fifty states and beyond: bringing ones own bottle of alcohol to a restaurant for consumption with ones meal. Not every state allows the practice, but Virginia is on the brink of joining the list of states where brown-bagging is permissible. On February 8th, the Virginia Senate passed SB 1292 (27-Y, 13-N) and the bill passed the House on February 22nd (78-Y, 18-N), leaving only Governor Robert McDonnell’s signature to make it official. The bill was introduced by Republican state Senator Jeffrey McWaters, who argued passage of SB 1292 would help boost Virginia’s restaurant and wine industries. SB 1292 will add Section 16 to § 4.1-201(A) of the Code of Virginia, thereby allowing licensed restaurants to permit customers to consume legally acquired wine on a restaurant premises and allowing the restaurant to charge a corkage fee if desired. Each state that allows BYOB has its own unique set of regulations. Virginia’s neighbor to the South, North Carolina, has a “brown-bagging” permit, which allows customers in permitted establishments to bring and consume on the premises “up to eight liters of fortified wine or spirituous liquor, or eight liters of the two combined.” Restaurants, hotels and community theaters are only allowed such permits if they are located in a county where the sale of mixed beverages has not been approved. Eight liters of fortified wine, which in North Carolina is defined as 16-24% alcohol by volume, or distilled spirits, may seem like an exorbitant amount of alcohol. However, unlike Virginia’s SB 1292, North Carolina’s law is not about enjoying a glass of ones own wine with dinner, but rather about consuming a gin and tonic at ones local haunt when such establishment is not allowed by law to sell gin. Attending “liquor locker” provisions in North Carolina allow patrons to store their brown-bagged alcohol in individual lockers at licensed facilities, so that they can drain their provisions over time. Traditional bottle opening fees do not apply in such situations, rather the restaurant makes money selling the mixer used by the patron, commonly referred to as a “set-up.” The North Carolina arrangement would be defined as an illegal “bottle club” in California. California only allows people to bring their own alcohol to a licensed premises, and one can only bring alcohol that could have been sold by the licensee at the establishment. So if a restaurant only sells beer and wine, one cannot bring in vodka. Also, in California any unfinished portion of the BYOB must be left at the restaurant, so if you bring a bottle of expensive wine to a restaurant, bring enough friends to drink it all! As we head into the weekend, we’ll leave you to ponder these burning questions: Is it counterintuitive for California to forbid people from bringing wine to restaurants that do not serve it, but permit patrons to bring wine to restaurants with the exact same bottle available for sale on their wine list? Also, who pays more in BYOB alcohol costs—North Carolina patrons bringing in eight liters of distilled spirits or New York patrons (blind item) dining at a well known restaurant with a $90 corkage fee? Imbiblog is published for general informational purposes only and is not intended as legal advice. Copyright © 2010-2011 · All Rights Reserved ·
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