GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

S	1 

SENATE BILL 355

Short Title:  Special Law Enforcement Division.	(Public)

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Sponsors: Senator Jordan.

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Referred to:  Appropriations/Base Budget.

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March 15, 1999

A BILL TO BE ENTITLED
AN ACT TO CHANGE THE NAME OF THE ALCOHOL LAW ENFORCEMENT DIVISION TO THE SPECIAL LAW ENFORCEMENT DIVISION AND TO MAKE THE CORRESPONDING CHANGES TO THE APPLICABLE STATUTES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 18B-101 reads as rewritten:
"§ 18B-101.  Definitions.
As used in this Chapter, unless the context requires otherwise:
(1)	"ABC law"or "ABC laws"means any statute or statutes in this Chapter or in Article 2C of Chapter 105, and the rules issued by the Commission under the authority of this Chapter.
(2)	"ABC permit"or "permits"means any written or printed authorization issued by the Commission pursuant to the provisions of this Chapter, other than a purchase-transportation permit. Unless the context clearly requires otherwise, as in the provisions concerning applications for permits, "ABC permit"or "permit"means a presently valid permit.
(3)	"ABC system"means a local board and all ABC stores operated by it, its law-enforcement branch, and all its employees.
(4)	"Alcoholic beverage"means any beverage containing at least one-half of one percent (0.5%) alcohol by volume, including malt beverages, unfortified wine, fortified wine, spirituous liquor, and mixed beverages.
(5)	""SLE Division"means the Special Law Enforcement Division of the Department of Crime Control and Public Safety.
(5a)	"Bailment surcharge"means the charge imposed on each case of liquor shipped from a Commission warehouse as provided in G.S. 18B-208. This bailment surcharge is in addition to the bailment charge imposed by G.S. 18B-804(b)(2).
(6)	"Commission"means the North Carolina Alcoholic Beverage Control Commission established under G.S. 18B-200.
(7)	"Fortified wine"means any wine made by fermentation from grapes, fruits, berries, rice, or honey, to which nothing has been added other than pure brandy made from the same type of grape, fruit, berry, rice, or honey that is contained in the base wine, and which has an alcoholic content of not more than twenty-four percent (24%) alcohol by volume.
(8)	"Local board"means a city or county ABC board, or local board created pursuant to the provisions of G.S. 18B-703. A local board is an independent local political subdivision of the State. Nothing in this Chapter shall be construed as constituting a local board the agency of a city or county or of the Commission.
(9)	"Malt beverage"means beer, lager, malt liquor, ale, porter, and any other brewed or fermented beverage containing at least one-half of one percent (0.5%), and not more than six percent (6%), alcohol by volume.
(10)	"Mixed beverage"means either of the following:
a.	A drink composed in whole or in part of spirituous liquor and served in a quantity less than the quantity contained in a closed package.
b.	A premixed cocktail served from a closed package containing only one serving.
(11)	"Nontaxpaid alcoholic beverage"means any alcoholic beverage upon which the taxes imposed by the United States, this State, or any other territorial jurisdiction in which the alcoholic beverage was purchased have not been paid.
(12)	"Person"means an individual, firm, partnership, association, corporation, limited liability company, other organization or group, or other combination of individuals acting as a unit.
(13)	"Sale"means any transfer, trade, exchange, or barter, in any manner or by any means, for consideration.
(13a)	"Special ABC area"means an area that meets the following requirements:
	Either:
a.	1.	Has fewer than 500 permanent residents;
2.	Is located in a county that borders another state, that has at least one city that has approved the operation of an ABC store, and in which the sale of unfortified wine and malt beverages is permitted countywide or in at least two cities; and
3.	Contains more than 500 contiguous acres made up of privately-owned land and land owned by an association or a club that is exempt from income tax on its membership income under Article 4 of Chapter 105 of the General Statutes, has more than 200 members, was created for municipal and recreational purposes, and, for three or more years, has levied assessments or dues and provided municipal services; or
b.	1.	Has more than 500 permanent residents;
2.	Is located in a county:
I.	Where ABC stores have heretofore been established but in which the sale of mixed beverages has not been approved;
II.	That borders on a county that has approved the sale of alcoholic beverages countywide and contains an international airport; and
III.	Borders on a county where ABC stores have heretofore been established by petition pursuant to law; and
3.	Contains more than 500 contiguous acres made up of privately-owned land and land owned by an association or a club that is exempt from income tax on its membership income under Article 4 of Chapter 105 of the General Statutes, has more than 200 members, was created for municipal and recreational purposes, and, for three or more years, has levied assessments or dues and provided municipal services.
(14)	"Spirituous liquor"or "liquor"means distilled spirits or ethyl alcohol, including spirits of wine, whiskey, rum, brandy, gin and all other distilled spirits and mixtures of cordials, liqueur, and premixed cocktails, in closed containers for beverage use regardless of their dilution.
(14a)	"Tourism ABC establishment"means a restaurant or hotel that meets both of the following requirements:
a.	Is located on property, a property line of which is located within 1.5 miles of the end of an entrance or exit ramp of a junction on a national scenic parkway designed to attract local, State, national, and international tourists between Milepost 305 and 460.
b.	Is located in a county in which the on-premises sale of malt beverages or unfortified wine is authorized in at least one city.
(15)	"Unfortified wine"means wine that has an alcoholic content produced only by natural fermentation or by the addition of pure cane, beet, or dextrose sugar."
Section 2.  G.S. 18B-201(a) reads as rewritten:
"(a)	Financial Interests Restricted. – No person shall be appointed to or employed by the Commission, a local board, or the SLE Division if that person or a member of that person's family related to that person by blood or marriage to the first degree has or controls, directly or indirectly, a financial interest in any commercial alcoholic beverage enterprise, including any business required to have an ABC permit.  The Commission may exempt from this provision any person, other than a Commission member, when the financial interest in question is so insignificant or remote that it is unlikely to affect the person's official actions in any way.  Exemptions may be granted only to individuals, not to groups or classes of people, and each exemption shall be in writing, be available for public inspection, and contain a statement of the financial interest in question."
Section 3.  G.S. 18B-202 reads as rewritten:
"§ 18B-202.  Discharge upon conviction.
In addition to imposing any other penalty authorized by law, a judge may remove from office or discharge from employment any Commission or local board member or employee, or any SLE agent, who is convicted of a violation of any provision of this Chapter or of any felony and may declare that person ineligible for membership or employment with the Commission, any local board, or the SLE Division, for a period of not longer than three years. Conviction of a crime under this Chapter or of any felony shall also be grounds for the Commission to remove from office or discharge from employment any local board member or employee."
Section 4.  G.S. 18B-203(a) reads as rewritten:
"(a)	Powers. – The Commission shall have the authority to:
(1)	Administer the ABC laws;
(2)	Provide for enforcement of the ABC laws, in conjunction with the SLE Division;
(3)	Set the prices of alcoholic beverages sold in local ABC stores as provided in Article 8;
(4)	Require reports and audits from local boards as provided in G.S. 18B-205;
(5)	Determine what brands of alcoholic beverages may be sold in this State;
(6)	Contract for State ABC warehousing, as provided in G.S. 18B-204;
(7)	Dispose of damaged alcoholic beverages, as provided in G.S. 18B-806;
(8)	Remove for cause any member or employee of a local board;
(9)	Supervise or disapprove purchasing by any local board and inspect all records of purchases by local boards;
(10)	Approve or disapprove rules adopted by any local board;
(11)	Approve or disapprove the opening and location of ABC stores, as provided in Article 8;
(12)	Issue ABC permits, and impose sanctions against permittees;
(13)	Provide for the testing of alcoholic beverages, as provided  in G.S. 18B-206;
(14)	Fix the amount of bailment charges and bailment surcharges to be assessed on liquor shipped from a Commission warehouse;
(15)	Collect bailment charges and bailment surcharges from local boards;
(16)	Notwithstanding any law to the contrary, enter into contracts for design and construction of a warehouse or warehouses and supervise work and materials used in the construction, as provided in G.S. 18B-204;
(17)	Provide for the distribution of spirituous liquor to armed forces installations within this State for resale on the installation."
Section 5.  G.S. 18B-500 reads as rewritten:
"§ 18B-500.  Alcohol law-enforcement agents.
(a)	Appointment. – The Secretary of Crime Control and Public Safety shall appoint special law-enforcement agents and other enforcement personnel. The Secretary of Crime Control and Public Safety may also appoint regular employees of the Commission as special law-enforcement agents. Special law-enforcement agents shall be designated as " special law-enforcement agents".
(b)	Subject Matter Jurisdiction. – After taking the oath prescribed for a peace officer, a special law-enforcement agent shall have authority to arrest and take other investigatory and enforcement actions for any criminal offense. The primary responsibility of an agent shall be enforcement of the ABC laws and Article 5 of Chapter 90 (The Controlled Substances Act); however, an agent may perform any law-enforcement duty assigned by the Secretary of Crime Control and Public Safety or the Governor.
(c)	Territorial Jurisdiction. –A special law-enforcement agent is a State officer with jurisdiction throughout the State.
(d)	Service of Commission Orders. –A special law-enforcement agents may serve and execute notices, orders, or demands issued by the Commission for the surrender of permits or relating to any administrative proceeding. While serving and executing such notices, orders, or demands, special law-enforcement agents shall have all the power and authority possessed by law-enforcement officers when executing an arrest warrant.
(e)	Discharge. –Special law-enforcement agents are subject to the discharge provisions of G.S. 18B-202.
(f)	Repealed by Session Laws 1995, c. 507, s. 6.2(a), effective July 1, 1995."
Section 6.  G.S. 18B-502(a) reads as rewritten:
"(a)	Authority. – To procure evidence of violations of the ABC law, special law-enforcement agents, employees of the Commission, local ABC officers, and officers of local law-enforcement agencies that have contracted to provide ABC enforcement under G.S. 18B-501(f) shall have authority to investigate the operation of each licensed premises for which an ABC permit has been issued, to make inspections that include viewing the entire premises, and to examine the books and records of the permittee.  The inspection authorized by this section may be made at any time it reasonably appears that someone is on the premises."
Section 7.  G.S. 18B-504(f) reads as rewritten:
"(f)	Disposition of Forfeited Property. – A judge ordering forfeiture of property may order any one of the following dispositions:
(1)	Sale at public auction;
(2)	Sale at auction after notice to certain named individuals or groups, if only a limited number of people would have use for that property;
(3)	Delivery to a named State or local law-enforcement agency, if the property is not suited for sale, with preference to be given in the following order, to: the agency that seized the property, the SLE Division, the Commission, the local board of the jurisdiction in which the property was seized, and the Department of Justice; or
(4)	Destruction, if possession of the property would be unlawful and it could not be used or is not wanted for law enforcement, or if sale or other disposition is not practical."
Section 8.  G.S. 18B-805(c) reads as rewritten:
"(c)	Other Statutory Distributions. – After making the distributions required by subsection (b), a local board shall make the following quarterly distributions from the remaining gross receipts:
(1)	Before making any other distribution under this subsection, the local board shall set aside the clear proceeds of the three and one-half percent (3 1/2%) markup provided for in G.S. 18B-804(b)(5) and the bottle charge provided for in G.S. 18B-804(b)(6b), to be distributed as part of the remaining gross receipts under subsection (e) of this section.
(2)	The local board shall spend for law enforcement an amount set by the board which shall be at least five percent (5%) of the gross receipts remaining after the distribution required by subdivision (1). The local board may contract with the SLE Division to provide the law enforcement required by this subdivision. Notwithstanding the provisions of any local act, this provision shall apply to all local boards.
(3)	The local board shall spend, or pay to the county commissioners to spend, for the purposes stated in subsection (h), an amount set by the board which shall be at least seven percent (7%) of the gross receipts remaining after the distribution required by subdivision (1). This provision shall not be applicable to a local board which is subject to a local act setting a different distribution."
Section 9.  G.S. 18B-902(b) reads as rewritten:
"(b)	Investigation. – Before issuing a new permit, the Commission, with the assistance of the SLE Division, shall investigate the applicant and the premises for which the permit is requested. The Commission may request the assistance of local ABC officers in investigating applications. An applicant shall cooperate fully with the investigation."
Section 10.  G.S. 18B-903(f) reads as rewritten:
"(f)	Lost Permits. – The Commission may issue duplicate ABC permits for an establishment when the existing valid permits have been lost or damaged. The request for duplicate permits shall be on a form provided by the Commission, certified by the permittee and the Special Law Enforcement Division, and accompanied by a fee of ten dollars ($10.00)."
Section 11.  G.S. 18B-904(d) reads as rewritten:
"(d)	Notice of Issuance. – Upon issuing a permit the Commission shall send notice of the issuance, with the name and address of the permittee and the establishment, to:
(1)	The Department of Revenue;
(2)	The local board, if one exists, for the city or county in which the establishment is located;
(3)	The governing body, sheriff, and tax collector of the county in which the establishment is located;
(4)	If the establishment is located inside a city, the governing body, chief of police, and tax collector for the city; and
(5)	The SLE Division."
Section 12.  G.S. 18B-1115(c) reads as rewritten:
"(c)	Common Carriers. – Railroad companies and other common carriers having regularly established schedules of service in this State may transport alcoholic beverages into, out of, and between points in this State without a permit.  Those companies shall keep accurate records of the character, volume and number of containers transported and shall allow the Commission and special law-enforcement agents to inspect those records at any time.  The Commission may require common carriers to make reports of shipments."
Section 13.  G.S. 18B-1115(d) reads as rewritten:
"(d)	Motor Vehicle Carriers. – Alcoholic beverages may be transported over the public highways of this State by motor vehicle carriers under the following conditions:
(1)	The carrier shall notify the Commission of the character of the alcoholic beverages it will transport and of its authorization from the appropriate regulatory authority.
(2)	The carrier shall obtain, at no charge, a fleet permit from the Commission authorizing the transportation.
(3)	The driver or person in charge of each vehicle transporting alcoholic beverages shall possess a copy of the carrier's fleet permit certified by the carrier to be an exact copy of the original.
(4)	The driver or person in charge of each vehicle transporting alcoholic beverages shall possess a bill of lading, invoice or other memorandum of shipment showing the name and address of the person from whom the alcoholic beverages were received, the character and contents of the shipment, the quantity and volume of the shipment, and the name and address of the person to whom the alcoholic beverages are being shipped.
(5)	The driver or person in charge of each vehicle transporting the alcoholic beverages shall display all documents required by this section upon request of any law-enforcement officer.  Failure to produce these documents or failure of the documents to disclose clearly and accurately the information required by this section shall be prima facie evidence of a violation of this section.
(6)	Each carrier shall keep accurate records of character, volume and number of containers transported and shall allow the Commission and special law-enforcement agents to inspect those records at any time.  The Commission may require carriers to make reports of shipments."
Section 14.  G.S. 20-39(h) reads as rewritten:
"(h)	The Commissioner, notwithstanding any other provision of this Chapter, may lawfully and to the extent necessary, provide local, State or federal law-enforcement officers on special undercover assignments with motor vehicle drivers licenses and motor vehicle registration plates under assumed names using false or fictitious addresses. Such registration plates shall only be used on publicly owned or leased vehicles. Requests for these licenses and registration plates shall be made to the Commissioner by the head of the local, State or federal law-enforcement agency and be accompanied by approval in writing from the Director of the State Bureau of Investigation upon a specific finding by the Director that the request is justified and necessary. The Director shall keep a record of all such licenses, registration plates, assumed names, false or fictitious addresses, and law-enforcement officers using the licenses or registration plates, and shall request the immediate return of any license or registration plate that is no longer necessary. Licenses and registration plates provided under this subsection shall expire six months after initial issuance or subsequent validation after the request for extension has been approved in writing by the Director of the State Bureau of Investigation. The head of the local, State or federal law-enforcement agency shall be responsible for the use of the licenses and registration plates and shall return them immediately to the Commissioner for cancellation upon either (i) their expiration, (ii) request of the Director of the State Bureau of Investigation, or (iii) request of the Commissioner. Failure to return a license or registration plates issued pursuant to this subsection shall be punished as a Class 2 misdemeanor. At no time shall the number of valid licenses and registration plates issued under this act exceed one hundred twenty-five, and those issued shall be strictly monitored by the Director. All of the private registration plates issued to special agents of the State Bureau of Investigation under the Department of Justice and to special law enforcement agents under the Department of Crime Control and Public Safety, pursuant to G.S. 14-250, may be fictitious plates and shall not be counted in the total number of fictitious plates authorized by this subsection."
Section 15.  G.S. 105-259(b) reads as rewritten:
"(b)	Disclosure Prohibited. – An officer, an employee, or an agent of the State who has access to tax information in the course of service to or employment by the State may not disclose the information to any other person unless the disclosure is made for one of the following purposes:
(1)	To comply with a court order or a law.
(2)	Review by the Attorney General or a representative of the Attorney General.
(3)	Review by a tax official of another jurisdiction to aid the jurisdiction in collecting a tax imposed by this State or the other jurisdiction if the laws of the other jurisdiction allow it to provide similar tax information to a representative of this State.
(4)	To provide a governmental agency or an officer of an organized association of taxpayers with a list of taxpayers who have paid a privilege license tax under Article 2 of this Chapter.
(5)	To furnish to the chair of a board of county commissioners information on the county sales and use tax.
(5a)	Reserved.
(5b)	To furnish to the finance officials of a city a list of the utility taxable gross receipts that were derived from sales within the city and used to determine the city's distribution under G.S. 105-116.1 or former distribution under G.S. 105-116 and G.S. 105-120.
(5c)	To provide the following information to a regional public transportation authority or a regional transportation authority created pursuant to Article 26 or Article 27 of Chapter 160A of the General Statutes on an annual basis, when the information is needed to enable the authority to administer its tax laws:
a.	The name, address, and identification number of retailers who collect the tax on leased vehicles imposed by G.S. 105-187.5.
b.	The name, address, and identification number of a retailer audited by the Department of Revenue regarding the tax on leased vehicles imposed by G.S. 105-187.5, when the Department determines that the audit results may be of interest to the authority.
(5d)	To provide the following information to a county or city on an annual basis, when the county or city needs the information for the administration of its local tax on prepared food and beverages:
a.	The name, address, and identification number of retailers who collect the sales and use taxes imposed under Article 5 of this Chapter and may be engaged in the business of selling prepared food and beverages.
b.	The name, address, and identification number of a retailer audited by the Department of Revenue regarding the sales and use taxes imposed under Article 5 of this Chapter, when the Department determines that the audit results may be of interest to the county or city in the administration of its local tax on prepared food and beverages.
(6)	To sort, process, or deliver tax information on behalf of the Department of Revenue.
(6a)	To furnish the county official designated under G.S. 105-164.14(f) a list of claimants that have received a refund of the county sales or use tax to the extent authorized in G.S. 105-164.14(f).
(7)	To exchange information with the Division of Motor Vehicles of the Department of Transportation when the information is needed to fulfill a duty imposed on the Department of Revenue or the Division of Motor Vehicles.
(8)	To furnish to the Department of State Treasurer, upon request, the name, address, and account and identification numbers of a taxpayer who may be entitled to property held in the Escheat Fund.
(9)	To furnish to the Employment Security Commission the name, address, and account and identification numbers of a taxpayer when the information is requested by the Commission in order to fulfill a duty imposed under Article 2 of Chapter 96 of the General Statutes.
(9a)	To furnish information to the Employment Security Commission to the extent required for its NC WORKS study of the working poor pursuant to G.S. 108A-29(r).  The Employment Security Commission shall use information furnished to it under this subdivision only in a nonidentifying form for statistical and analytical purposes related to its NC WORKS study.  The information that may be furnished under this subdivision is the following with respect to individual income taxpayers, as shown on the North Carolina income tax forms:
a.	Name, social security number, spouse's name, and county of residence.
b.	Filing status and federal personal exemptions.
c.	Federal taxable income, additions to federal taxable income, and total of federal taxable income plus additional income.
d.	Income while a North Carolina resident, total income from North Carolina sources while a nonresident, and total income from all sources.
(10)	Review by the State Auditor to the extent authorized in G.S. 147-64.7.
(11)	To give a spouse who elects to file a joint tax return a copy of the return or information contained on the return.
(11a)	To provide a copy of a return to the taxpayer who filed the return.
(11b)	In the case of a return filed by a corporation, a partnership, a trust, or an estate, to provide a copy of the return or information on the return to a person who has a material interest in the return if, under the circumstances, section 6103(e)(1) of the Code would require disclosure to that person of any corresponding federal return or information.
(11c)	In the case of a return of an individual who is legally incompetent or deceased, to provide a copy of the return to the legal representative of the estate of the incompetent individual or decedent.
(12)	To contract with a financial institution for the receipt of withheld income tax payments under G.S. 105-163.6 or for the transmittal of payments by electronic funds transfer.
(13)	To furnish the Fiscal Research Division of the General Assembly, upon request, a sample, suitable in character, composition, and size for statistical analyses, of tax returns or other tax information from which taxpayers' names and identification numbers have been removed.
(14)	To exchange information concerning a tax imposed by Subchapter V of this Chapter with the Standards Division of the Department of Agriculture and Consumer Services when the information is needed to administer the Gasoline and Oil Inspection Act, Article 3 of Chapter 119 of the General Statutes.
(15)	To exchange information concerning a tax imposed by Articles 2A, 2B, 2C, or 2D of this Chapter with one of the following agencies when the information is needed to fulfill a duty imposed on the agency:
a.	The North Carolina Alcoholic Beverage Control Commission.
b.	The Division of Special Law Enforcement of the Department of Crime Control and Public Safety.
c.	The Bureau of Alcohol, Tobacco, and Firearms of the United States Treasury Department.
(16)	To furnish to the Department of Secretary of State the name, address, tax year end, and account and identification numbers of a corporation liable for corporate income or franchise taxes or of a limited liability company liable for a corporate or a partnership tax return to enable the Secretary of State to notify the corporation or the limited liability company of the annual report filing requirement or that its articles of incorporation or articles of organization or its certificate of authority has been suspended.
(17)	To inform the Business License Information Office of the Department of Secretary of State of the status of an application for a license for which a tax is imposed and of any information needed to process the application.
(18)	To furnish to the Office of the State Controller the name, address, and account and identification numbers of a taxpayer upon request to enable the State Controller to verify statewide vendor files or track debtors of the State.
(19)	To furnish to the North Carolina Industrial Commission information concerning workers' compensation reported to the Secretary under G.S. 105-163.7.
(20)	To furnish to the Environmental Management Commission information concerning whether a person who is requesting certification of a dry-cleaning facility or wholesale distribution facility from the Commission is liable for privilege tax under Article 5D of this Chapter."
Section 16.  G.S. 143-166.13(a) reads as rewritten:
"(a)	The following persons who are subject to the Criminal Justice Training and Standards Act are entitled to benefits under this Article:
(1)	State Government Security Officers, Department of Administration;
(2)	State Correctional Officers, Department of Corrections;
(3)	State Probation and Parole Officers, Department of Corrections;
(4)	Sworn State Law-Enforcement Officers with the power of arrest, Department of Corrections;
(5)	Special Law-Enforcement Agents, Department of Crime Control and Public Safety;
(6)	State Highway Patrol Officers, Department of Crime Control and Public Safety;
(7)	State Legislative Building Special Police, General Assembly;
(8)	Sworn State Law-Enforcement Officers with the power of arrest, Department of Health and Human Services;
(9)	Youth Correctional Officers, Department of Health and Human Services;
(10)	Insurance Investigators, Department of Insurance;
(11)	State Bureau of Investigation Officers and Agents, Department of Justice;
(12)	Director and Assistant Director, License and Theft Enforcement Section, Division of Motor Vehicles, Department of Transportation;
(13)	Members of License and Theft Enforcement Section, Division of Motor Vehicles, Department of Transportation, designated by the Commissioner of Motor Vehicles as either "inspectors"or uniformed