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Bill

SB 938

Privatize Spirituous Liquor.

2025-2026 Session Introduced by Jim Burgin

The bill would privatize sale of spirituous liquor in North Carolina, shifting from state-controlled to private retailers with new licensing, regulation, and revenue adjustments.

Passed 1st Reading
0
WeVote Research Nonpartisan
Bill Summary · SB 938

Summary: SB 938 (North Carolina) – Privatize Spirituous Liquor

Note: The following summary reflects the bill as listed for the 2025 session with the action history indicating it was filed on 2026-04-29 and co-sponsored by Jim Burgin. If further amendments or committee actions occur, the details below may change.

1) Purpose and Intent

  • The bill proposes privatizing the sale of spirituous liquors (hard liquor) in North Carolina.
  • The core policy aim is to transition from state-controlled or state-regulated distribution/sales to private sector involvement in the sale of spirituous liquor.

2) Key Provisions and Changes

  • Privatization of Sales:
    • Replaces or reduces the role of the state in the sale of spirituous liquor, shifting from government-operated or state-regulated channels to private retailers.
  • Retailer Eligibility and Licensing:
    • Establishes or modifies licensing requirements for private retailers to sell spirituous liquor.
    • Potentially introduces fees, license duration, renewal procedures, and compliance standards for private outlets.
  • Product Scope:
    • Specifies which products fall under the privatization in scope (e.g., all spirituous liquors normally sold in package stores, lounges, or other licensed environments).
  • Regulatory Framework:
    • Sets up a framework to regulate private sales, including enforcement, inspections, and compliance with age verification and responsible sale practices.
    • Reallocates or redefines responsibilities among the state alcohol beverage control agency, law enforcement, and other regulators.
  • Tax and Revenue Implications:
    • May propose changes in tax collection mechanisms, licensing fees, and revenue distribution between state and local governments.
    • Addresses how revenues currently generated by state control would be replaced or preserved (e.g., through private retailer taxes, wholesale margins, or state oversight fees).
  • Transition Timeline:
    • Outlines a phased timeline for privatization, if included (e.g., sunset of state-controlled operations, phased privatization dates, or interim regulatory milestones).
  • Public Health and Safety:
    • Maintains or introduces measures to address underage sales, drunken driving, and responsible marketing in a privatized environment.
  • Economic and Local Impacts:
    • Assesses potential effects on small businesses, existing licensees, retailers, and local economies.
    • Considers market competition, employment, and consumer choice implications.

3) Who Would Be Affected

  • Private Retailers: Businesses authorized to sell spirituous liquor under new licensing rules.
  • Existing State Entities: North Carolina Alcoholic Beverage Control (ABC) system would shift responsibilities toward regulation and monitoring of private sales; possible sunset or reduction of state-run operations.
  • Consumers: End-users who purchase spirituous liquor would access private retail channels.
  • Local Governments: If tax revenue distribution or licensing fees have local components, counties and cities may see changes in revenue flows and enforcement responsibilities.
  • Employees in State-Controlled System: Jobs and roles within the current state framework could be affected by privatization timelines and restructuring.

4) Procedural and Timeline Considerations

  • Introduction/Filed: SB 938 filed on 2026-04-29 with Jim Burgin listed as a co-sponsor.
  • Next Steps: Typically would move through committee hearings (e.g., Rules, Agriculture, or Regulatory committees) for analysis, amendments, and public testimony.
  • Effective Date: If enacted, the bill would specify an effective date and transition schedule for privatization, including any phase-in periods for private retailers to receive licenses and for the state to wind down its involvement.
  • Sunset Provisions: Potentially includes sunset or phased elimination of state-operated channels as privatization milestones are met.
  • Contingent Actions: May require accompanying budget adjustments and implementation financing, as well as regulatory rule-making by the ABC Commission.

Notes

  • The summary is based on the bill title and action history. The exact text of SB 938 will define precise provisions, savings or costs, licensing details, and transition mechanics. For a precise understanding, access to the bill’s full text, fiscal notes, and committee analyses is recommended.

Compiled from official sources — confirm details with the bill’s official record.

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