There are approximately 50,000 outstanding retail commercial
permits in North Carolina that authorizes the retail sale of alcoholic
beverages. The ABC Commission issues these permits to qualified persons and
establishments in jurisdictions that have held ABC elections and approved the
sales of alcoholic beverages. A listing of Alcoholic Beverage Legal
Sales areas can be found here. The holder of an ABC
permit shall ensure that the Commission’s rules governing the sale, possession,
transportation, storage and consumption of alcoholic beverages on the licensed
premises are adhered to by employees and patrons. Failure to comply with the
statutes or the rules of the Commission by permittees, employees and patrons
may result in the suspension or revocation of all ABC permits held by a
The state laws are described in North Carolina General Statutes, Chapter 18B.
However, the following excerpts are from Chapter 18B to assist you in
understanding the retail permit process:
Qualifications for permit. (18B-900)
Requirements. -- To be eligible to receive and to hold an ABC
permit, a person shall:
Be at least 21 years old, unless the person is a manager of a business selling
only malt beverages and unfortified wine, in which case the person shall be at
least 19 years old;
Be a resident of North Carolina unless:
He/she is an officer, director or stockholder of a corporate applicant or
permittee and is not a manager or otherwise responsible for the day-to-day
operation of the business; or
He/she has an executed power of attorney designating a qualified resident of
this State to serve as attorney-in-fact for the purposes of receiving service
of process and managing the business for which permits are sought.
Not have been convicted of a felony within three years, and, if convicted of a
felony before then, shall have had his citizenship restored;
Not have been convicted of an alcoholic beverage offense within two years;
Not have been convicted of a misdemeanor controlled substance offense within
Not have had an alcoholic beverage permit revoked within three years; and
Not have, whether as an individual or as an officer, director, shareholder or
manager of a corporate permittee, an unsatisfied outstanding final judgment
that was entered against him in an action under Article 1A of Chapter 18B.
Who Must Qualify -- Exceptions.
For an ABC permit to be issued to and held for a business, each of the
following persons associated with that business must qualify under subsection:
The owner of a sole proprietorship;
Each member of a firm, association or general partnership;
Each general partner in a limited partnership;
Each manager and any member with a twenty-five percent (25%) or greater
interest in a limited liability company;
Each officer, director and owner of twenty-five percent (25%) or more of the
stock of a corporation except that the requirement of subdivision No.(1) above,
does not apply to such an officer, director, or stockholder unless he is a
manager or is otherwise responsible for the day-to-day operation of the
The manager of an establishment operated by a corporation other than an
establishment with only off-premises malt beverage, off-premises unfortified
wine, or off-premises fortified wine permits;
Any manager who has been empowered as attorney- in-fact for a nonresident
individual or partnership.
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Issuance of permits. (18B-901)
Who Issues. -- All retail ABC permits shall be issued by the
Commission. Before issuing a retail ABC permit, the Commission shall give
notice of the permit application to the governing body of the city in which the
establishment is located. If the establishment is not inside a city, the
Commission shall give notice to the governing body of the county. The
Commission shall allow the local governing body 15 days from the time the
notice was mailed or delivered to file written objection to the issuance of the
permit. To be considered by the Commission, the objection shall state the facts
upon which it is based.
Factors in Issuing Permit. -- Before issuing a permit, the
Commission shall be satisfied that the applicant is a suitable person to hold
an ABC permit and that the location is a suitable place to hold the permit for
which he has applied. To be a suitable place, the establishment shall comply
with all applicable building and fire codes. Other factors the Commission shall
consider in determining whether the applicant and the business location are
The reputation, character, and criminal record of the applicant;
The number of places already holding ABC permits within the neighborhood;
Parking facilities and traffic conditions in the neighborhood;
Kinds of businesses already in the neighborhood;
Whether the establishment is located within 50 feet of a church or public
school or church school;
The recommendations of the local governing body; and
Any other evidence that would tend to show whether the applicant would comply
with the ABC laws and whether operation of his business at that location would
be detrimental to the neighborhood.
Commission Authority. -- The Commission shall have the sole
power, in its discretion, to determine the suitability and qualifications of an
applicant for a permit.
Investigation. -- Before issuing a new permit, the Commission,
with the assistance of the Alcoholic Law Enforcement
Division, shall investigate the applicant and the premises for which
the permit is requested.
False Information. -- Knowingly making a false statement in an
application for an ABC permit shall be grounds for denying, suspending,
revoking or taking other action against the permit and shall also be unlawful.
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Duration of permit; renewal and transfer.
Duration. -- Once issued, ABC permits shall be valid for the
following periods, unless earlier surrendered, suspended or revoked:
On-premises and off-premises malt beverage, unfortified wine, and fortified
wine permits; culinary permits; and all permits listed in G.S. 18B-1100 shall
remain valid indefinitely;
Limited special occasion permits shall be valid for 48 hours before and after
the occasion for which the permit was issued;
Special one-time permits issued under G.S. 18B- 1002 shall be valid for the
period stated on the permit;
Temporary permits issued under G.S. 18B-905 shall be valid for 90 days; and
All other ABC permits shall be valid for one year, from May 1 to April 30.
Renewal. -- Application for renewable permits shall be on a form
provided by the Commission. An application for renewal shall be accompanied by
an application fee of twenty-five percent (25%) of the original application fee
set in G.S. 18B- 902, except that the renewal application fee for each mixed
beverages permit and each guest room cabinet permit shall be seven hundred
fifty dollars ($750.00). A renewal fee shall not be refundable.
Change in Ownership. -- All permits for an establishment shall
automatically expire and shall be surrendered to the Commission if:
Ownership of the establishment changes; or
There is a change in the membership of the firm, association or partnership
owning the establishment, involving the acquisition of a twenty-five percent
(25%) or greater share in the firm, association or partnership by someone who
did not previously own a twenty-five percent (25%) or greater share; or
Twenty-five percent (25%) or more of the stock of the corporate permittee
owning the establishment is acquired by someone who did not previously own
twenty-five percent (25%) or more of the stock.
Transfer. -- An ABC permit may not be transferred from one person
to another or from one location to another.
Name Change. -- The Commission may issue new permits to a
permittee upon application and payment of a fee of ten dollars ($ 10.00) for
each location when the permittee's name (due to marriage/divorce) or name of
the business is changed.
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Miscellaneous provisions concerning permits.
Who Receives Permit. -- An ABC permit shall authorize the
permitted activity only on the premises of the establishment named in the
permit. An ABC permit shall be issued to the owner of the business conducted on
the premises or to the management company employed to independently manage and
operate the business. The ABC Commission may determine if a management
agreement delegates sufficient managerial control and independence to a manager
or management company to require an ABC permit to be issued to the manager.
Posting Permit. -- Each ABC permit that is held by an
establishment shall be posted in a prominent place on the premises.
Business Not Operating. -- An ABC permit shall automatically
expire and shall be surrendered to the Commission if the person to whom it is
issued does not commence the activity authorized by the permit within six
months of the date the permit is effective. Before the expiration of the
six-month period, the Commission may waive this provision in individual cases
for good cause.
Change in Management. -- A corporation holding a permit for an
establishment for which the manager is required to qualify as an applicant
under G.S. 18B-900(c) shall, within 30 days after employing a new manager,
submit to the Commission an application for substitution of a manager. The
application shall be signed by the new manager, shall be on a form provided by
the Commission, and shall be accompanied by a fee of ten dollars ($10.00). The
fee shall not be refundable.
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
and accompanied by a fee of ten dollars ($10.00).
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