GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

S	1 

SENATE BILL 963

Short Title:  Local Govt ABC Permit Involvement.	(Public)

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Sponsors: Senator Gulley.

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Referred to:  Judiciary I.

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April 15, 1999

A BILL TO BE ENTITLED
AN ACT TO ENHANCE LOCAL GOVERNMENT POWERS RELATIVE TO THE ALCOHOL BEVERAGE CONTROL LAWS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 18B-104(a) reads as rewritten:
"(a)	Penalties. – For any violation of the ABC laws, a conviction of an offense set forth in Chapter 90 of the General Statutes, or a conviction of a felony, the Commission may take any of the following actions against a permittee:
(1) 	Suspend the permittee's permit for a specified period of time not longer than three years;
(2) 	Revoke the permittee's permit;
(3) 	Fine the permittee up to five hundred dollars ($500.00) for the first violation, up to seven hundred fifty dollars ($750.00) for the second violation, and up to one thousand dollars ($1,000) for the third violation; or
(4) 	Suspend the permittee's permit under subdivision (1) and impose a fine under subdivision (3)."
Section 2.  G.S. 18B-110 is amended by adding a new subsection to read:
"( b)	When the governing body of any municipality, or the mayor of the municipality, upon delegation of authority from the governing body in the manner allowed by G.S. 14-288.12, finds that a "public disturbance"as defined in G.S. 14-288.1, exists or is imminent anywhere within the jurisdiction of the municipality, the governing body or authorized mayor may order the cessation of all sales of alcoholic beverages.
The order of the municipality shall apply to those portions of the municipality designated in the order, for the duration of the declared public disturbance, which shall be no longer than 12 hours unless extended by additional order.  Law enforcement personnel with authority within the municipality shall be authorized to enforce the order in the same manner as an order declaring a state of emergency."
Section 3.  G.S. 18B-901 reads as rewritten:
"§ 18B-901. Issuance of permits.
																(a)	Who Issues. – All ABC permits shall be issued by the Commission.  Purchase-transportation permits shall be issued by local boards under G.S. 18B-403.
(b)	Certificate of Suitability. – Before submitting an application for a retail ABC permit to the Commission, including an application for a temporary retail permit, the applicant shall obtain a certificate of suitability from the municipality where the applicant intends to locate his business stating that the municipality has determined that the proposed location is a suitable place for an ABC permit.  If the applicant does not intend to locate his business within a municipality or its extraterritorial jurisdiction, the applicant shall obtain the certificate of suitability from the governing body of the county where his business is to be located.  The following permits shall be exempted from this section:
(1)	Limited special occasion permit under G.S. 18B-1001(9);
(2)	Special one-time permit under G.S. 18B-1002; or
(3)	All permits listed under G.S. 18B-1100.
(b1)	Factors in Issuing Certificate of Suitability. – To be a suitable place, the establishment shall comply with all applicable building, fire, and zoning codes.  Zoning ordinances may restrict the places where permittees may operate, may require separation or concentration of permitted locations, and may impose other reasonable restrictions or conditions.  The local governing body may also consider:
(1)	The number of places already holding ABC permits within the neighborhood;
(2)	Parking facilities and traffic conditions in the neighborhood;
(3)	Kinds of businesses already in the neighborhood;
(4)	Whether the establishment is located within 50 feet of a church, public school, daycare facility, or church school;
(5)	Whether the proposed use will adversely impact on local government services and facilities;
(6)	Existing conditions in the neighborhood; and
(7)	Whether operation of his business at that location would be detrimental to the neighborhood.  The applicant may enter into a binding agreement with the local governing body to operate under certain conditions or restrictions that will lessen the detriment to the neighborhood.  Any such agreement shall describe the consequences of a violation of the agreement.
(b2)	Time Limit for Local Government's Decision. – The applicable local governing body or its designee shall grant or deny a certificate of suitability for a retail permit based on written materials submitted to it by the applicant and others.  The local body or designee shall make its decision on these written materials with 60 days after receiving an application for a certificate of suitability.  If the local body or designee determines that the location is not suitable, it shall state the reasons for its decisions.  The local governing body may appoint a person, board, commission, or other entity to carry out this function.
(b3)	Certificate of Suitability; Appeal. – An applicant may appeal for a hearing to the local governing board or its designee.  Appeal from this hearing shall be by certiorari to Superior Court in the county in which the business is to be located.  The provisions of Chapter 150B shall not apply to this section.
(c)	Factors in Issuing Permit. – No retail ABC permit shall be issued by the Commission without the applicant first obtaining a certificate of suitability.  Before issuing a permit, the Commission shall also be satisfied that the applicant is a suitable person to hold an ABC permit and that the premises is a suitable place to hold the permit for which he has applied.  Other factors the Commission shall consider in determining whether the applicant and the business premises are suitable are:
(1)	The reputation, character, and criminal record of the applicant;
(2)	Any other evidence that would tend to show whether the applicant would comply with the ABC laws; and
(3)	Any other rules governing the licensed premises as defined by the Commission.
(d)	Commission's Authority. – The Commission shall have the sole power, in its discretion, to determine the suitability and qualifications of an applicant for a permit.
(e)	Local Government's Authority. – The applicable local governing body shall have the sole power, in its discretion, to determine the suitability and qualifications of a location for a retail permit.  As part of this authority, local governments may issue, and enforce the requirements of, special use permits or other similar zoning permits relating to location of ABC permittees.  Appeals of zoning regulations or special-use permits shall be to superior court and shall be brought in the same manner that appeals of other zoning actions or zoning permits are brought."
Section 4.  G.S. 18B-902 is amended by adding a new subsection to read:
"( h)	A local governing body may charge a fee up to one hundred dollars ($100.00) to applicants seeking a certificate of suitability."
Section 5.  G.S. 18B-904(e) reads as rewritten:
"(e)	Business or Location No Longer Suitable. – The Commission may suspend or revoke a permit issued by it if, after compliance with the provisions of Chapter 150B of the General Statutes, it finds that the location occupied by the permittee is no longer a suitable place to hold ABC permits or that the operation of the business with an ABC permit at that location is detrimental to the neighborhood.  A municipality or county may also commence a contested case under Chapter 150B to require the Commission to revoke a permit on these grounds.  No order revoking or suspending an ABC permit pursuant to this section may be made except upon substantial evidence admissible under G.S. 150B-29(a)."
Section 6.  G.S. 18B-904(f) is repealed.
Section 7.  Chapter 18B of the General Statutes is amended by adding a new section to read:
"§ 18B-907.  Delegation of local government powers.
Every local governing body having duties under this Article for determining suitability of retail locations may designate a local board, person, commission, or other entity to exercise that authority."
Section 8.  This act becomes effective December 1, 1999.