North Carolina SB 938: Privatize Spirituous Liquor.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 938

Short Title: Privatize Spirituous Liquor. (Public)
Sponsors: Senator Burgin (Primary Sponsor).
Referred to: Rules and Operations of the Senate
April 30, 2026
*S938-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO CEASE STATE AND LOCAL OPERATION OF SPIRITUOUS LIQUOR SALES 2
AND TO TRANSITION TO PRIVATELY OWNED PACKAGE STORES. 3
The General Assembly of North Carolina enacts: 4
5
PART I. SALE AND CESSATION OF STATE AND LOCAL OPERATION OF 6
SPIRITUOUS LIQUOR SALES AND TRANSITION TO PRIVATELY OWNED 7
PACKAGE STORES 8
SECTION 1.(a) On or after July 1, 2028, but no later than July 1, 2029, the local 9
ABC boards shall cease operations of any ABC stores and transfer all real property owned by the 10
board and any fixtures and inventory used in the operation of ABC stores by public sale to the 11
highest qualified bidder or bidders. Each ABC store shall be offered for sale as follows: 12
(1) If a local ABC board owns real property that is operated as an ABC store, the 13
real property, fixtures, and all inventory at that ABC store shall be offered for 14
sale as a single lot, along with the authority to operate the location as a package 15
store upon obtaining the appropriate permits from the ABC Commission. 16
(2) If a local ABC board operates an ABC store on property that is not owned by 17
the local ABC board, the fixtures and all inventory at that ABC store shall be 18
offered for sale as a single lot, along with the authority to operate a package 19
store upon obtaining the appropriate permits from the ABC Commission. If 20
the lease for the location where the ABC store is being operated at the time of 21
the sale cannot be transferred to or assumed by the purchaser, the purchaser 22
may operate a package store within a 1-mile radius at a location approved by 23
the local ABC board and the ABC Commission. 24
(3) If a city or county has authorized the establishment and operation of an ABC 25
store in accordance with Article 6 of Chapter 18B of the General Statutes prior 26
to July 1, 2027, and that city or county votes against off-premises spirituous 27
liquor sales before July 1, 2028, the local ABC board applicable to that city or 28
county shall do both of the following: 29
a. Sell any spirituous liquor within their possession in the applicable city 30
or county to a liquor wholesaler permitted under G.S. 18B-1109.1, as 31
enacted by Part IV of this act. 32
b. Offer any real property and fixtures for sale in any manner otherwise 33
authorized by law. 34
Nothing in this subsection shall be construed as relieving local ABC boards of, or 35
assigning to the State, any liabilities arising or remaining from the transfers required under this 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 938-First Edition
subsection. Any funds received under this subsection shall be used first to satisfy any debts of 1
the local ABC board, and any remaining funds shall be distributed pursuant to G.S. 18B-805(e). 2
For purposes of this subsection, in addition to any other financial, legal, or 3
administrative requirements, in order to place a bid on property offered pursuant to subdivision 4
(1) or (2) of this subsection, the bidder must obtain a qualification letter from the ABC 5
Commission as provided in subsection (b) of this section, prior to placing a bid. 6
SECTION 1.(b) No later than March 1, 2028, the ABC Commission shall develop a 7
process to allow any person that wishes to bid on property offered for sale pursuant to subdivision 8
(1) or (2) of subsection (a) of this section to apply for a qualification letter from the Commission. 9
The application shall require the applicant to provide all information necessary for the 10
Commission to determine whether the applicant meets the permit eligibility requirements of 11
G.S. 18B-900. Within 60 days of receipt of the application, the Commission shall issue or deny 12
the qualification letter. 13
SECTION 1.(c) On July 1, 2029, the Alcoholic Beverage Control Commission shall 14
cease the operation of the State warehouse authorized under G.S. 18B-204. On or after July 1, 15
2029, and no later than December 31, 2029, the ABC Commission shall sell any remaining 16
inventory of spirituous liquor held in the State warehouse to a liquor wholesaler permitted under 17
G.S. 18B-1109.1, as enacted by Part IV of this act. Any funds received under this subsection 18
shall be used first to pay any amount owed to a distiller for inventory held in the warehouse, and 19
any remaining funds shall be remitted to the General Fund to be used to fund education. 20
SECTION 1.(d) Upon completion of the requirements of subsection (c) of this 21
section, the Department of Administration shall initiate proceedings to separate specific property 22
from the parcel of land in the City of Raleigh, with Wake County real estate ID# 0138565, 23
commonly known as 404 East Tryon Road. The portion to be separated from the parcel is