2005 North Carolina Code - General Statutes Article 7 - Local ABC Boards.

Article 7.

Local ABC Boards.

§ 18B‑700.  Appointment and organization of local ABC boards.

(a)       Membership. – A local ABC board shall consist of three members appointed for three‑year terms, unless a different membership or term is provided by a local act enacted before the effective date of this Chapter, or unless the board is a board for a merged ABC system under G.S. 18B‑703 and a different size membership has been provided for as part of the negotiated merger. One member of the initial board of a newly created ABC system shall be appointed for a three‑year term, one member for a two‑year term, and one member for a one‑year term. As the terms of initial board members expire, their successors shall each be appointed for three‑year terms. The appointing authority shall designate one member of the local board as chairman.

(b)       City Boards. – City ABC board members shall be appointed by the city governing body, unless a different method of appointment is provided in a local act enacted before the effective date of this Chapter.

(c)       County Boards. – County ABC board members shall be appointed by the board of county commissioners, unless a different method of appointment is provided in a local act enacted before the effective date of this Chapter.

(d)       Qualifications. – The appointing authority shall appoint members of a local board on the basis of the appointees' interest in public affairs, good judgment, knowledge, ability, and good moral character.

(e)       Vacancy. – A vacancy on a local board shall be filled by the appointing authority for the remainder of the unexpired term. If the chairman's seat becomes vacant, the appointing authority may designate either the new member or an existing member of the local board to complete the chairman's term.

(f)        Removal. – A member of a local board may be removed for cause at any time by the appointing authority. Local board members are subject to the removal provisions of G.S. 18B‑202.

(g)       Salary. – A local board member may be compensated as determined by the appointing authority.

(h)       Conflict of Interest. – The provisions of G.S. 18B‑201 shall apply to local board members and employees.

(i)        Bond. – Each local board member shall be bonded in an amount not less than five thousand dollars ($5,000), secured by a corporate surety, for the faithful performance of his duties. A public employees' blanket position bond in the required amount satisfies the requirements of this subsection. The bond shall be payable to the local board and shall be approved by the appointing authority for the local board. The appointing authority may exempt from this bond requirement any board member who does not handle board funds, and it may also increase the amount of the bond for any member who does handle board funds.

(j)        Limited Liability. – A person serving as a member of a local ABC board shall be immune individually from civil liability for monetary damages, except to the extent covered by insurance, for any act or failure to act arising out of this service, except where the person:

(1)       Was not acting within the scope of his official duties;

(2)       Was not acting in good faith;

(3)       Committed gross negligence or willful or wanton misconduct that resulted in the damage or injury;

(4)       Derived an improper personal financial benefit from the transaction; or

(5)       Incurred the liability from the operation of a motor vehicle.

The immunity in this subsection is personal to the members of local ABC boards, and does not immunize the local ABC board for liability for the acts or omissions of the members of the local ABC board. (1981, c. 412, s. 2; c. 747, s. 50; 1981 (Reg. Sess., 1982), c. 1262, s. 10; 1989, c. 800, s. 19.)

 

§ 18B‑701.  Powers of local ABC boards.

A local board shall have authority to:

(1)       Buy, sell, transport, and possess alcoholic beverages as necessary for the operation of its ABC stores;

(2)       Adopt rules for its ABC system, subject to the approval of the Commission;

(3)       Hire and fire employees for the ABC system;

(4)       Designate one employee as manager of the ABC system and determine his responsibilities;

(5)       Require bonds of employees as provided in the rules of the Commission;

(6)       Operate ABC stores as provided in Article 8;

(7)       Issue purchase‑transportation permits as provided in Article 4;

(8)       Employ local ABC officers or make other provision for enforcement of ABC laws as provided in Article 5;

(9)       Borrow money as provided in G.S. 18B‑702;

(10)     Buy and lease real and personal property, and receive property bequeathed or given, as necessary for the operation of the ABC system;

(11)     Invest surplus funds as provided in G.S. 18B‑702;

(12)     Dispose of property in the same manner as a city council may under Article 12 of Chapter 160A of the General Statutes; and

(13)     Perform any other activity authorized or required by the ABC law. (1937, c. 49, ss. 10, 12; cc. 411, 431; 1939, c. 98; 1957, cc. 1006, 1334; 1963, c. 1119, s. 2; 1967, c. 1178; 1969, cc. 118, 902; 1971, c. 872, s. 1; 1973, cc. 85, 185; c. 1000, ss. 1, 2; 1977, c. 618; 1979, c. 467, s. 20; c. 617; 1981, c. 412, s. 2.)

 

§ 18B‑702.  Financial operations of local boards.

(a)       Generally. – A local board may transact business as a corporate body, except as limited by this section. A local board shall not be considered a public authority under G.S. 159‑7(b)(10).

(b)       Borrowing Money. – A local board may borrow money only for the purchase of land, buildings, equipment and stock needed for the operation of its ABC system. A local board may pledge a security interest in any real or personal property it owns other than alcoholic beverages. A city or county whose governing body appoints a local board shall not in any way be held responsible for the debts of that board.

(c)       Audits. – A local board shall submit to the Commission an annual independent audit of its operations, performed in accordance with generally accepted accounting standards and in compliance with a chart of accounts prescribed by the Commission. The audit report shall contain a summary of the requirements of this Chapter, or of any local act applicable to that local board, concerning the distribution of profits of that board and a description of how those distributions have been made, including the names of recipients of the profits and the activities for which the funds were distributed. A local board shall also submit to any other audits and submit any reports demanded by the Commission.

(d)       Deposits and Investments. – A local board may deposit moneys at interest in any bank or trust company in this State in the form of savings accounts or certificates of deposit. Investment deposits shall be secured as provided in G.S. 159‑31(b) and the reports required by G.S. 159‑33 shall be submitted. A local board may invest all or part of the cash balance of any fund as provided in G.S. 159‑30(c) and (d), and may deposit any portion of those funds for investment with the State Treasurer in the same manner as State boards and commissions under G.S. 147‑69.3.

(e)       Compliance with Commission Rules. – The Commission shall adopt, and each local board shall comply with, fiscal control rules concerning the borrowing of money, maintenance of working capital, investments, appointment of a financial officer, daily deposit of funds, bonding of employees, auditing of operations, and the schedule, manner and other procedures for distribution of profits. The Commission may also adopt any other rules concerning the financial operations of local boards which are needed to assure the proper accountability of public funds.

(f)        Applicability of Criminal Statutes. – The provisions of G.S. 14‑90 and G.S. 14‑254 shall apply to any person appointed to or employed by a local board, and any person convicted of a violation of G.S. 14‑90 or G.S. 14‑254 shall be punished as a Class H felon. (1937, c. 49, ss. 10, 12; cc. 411, 431; 1939, c. 98; 1957, cc. 1006, 1335; 1963, c. 1119, s. 2; 1967, c. 1178; 1969, cc. 118, 902; 1971, c. 872, s. 1; 1973, cc. 85, 185; c. 1000, ss. 1, 2; 1977, c. 618; 1979, c. 467, s. 20; c. 617; 1981, c. 412, s. 2; 1981 (Reg. Sess., 1982), c. 1262, s. 11; 1991, c. 459, s. 2.)

 

§ 18B‑703.  Merger of local ABC operations.

(a)       Conditions for Merger. – Any city governing body or board of county commissioners may merge its ABC system with the system of one or more other cities or counties if:

(1)       Stores operated by the systems of those jurisdictions serve the same general area or are in close proximity to each other; and

(2)       The merger is approved by the Commission.

(b)       Appointment of Board. – Upon merger of ABC systems, the local boards for those systems shall be replaced by one board appointed jointly by the appointing authorities for the previous boards.

(c)       Distribution of Profits. – Before merger, the cities or counties involved shall agree upon a formula for distribution of the profits of the new merged ABC system, based as closely as practicable on the distribution previously authorized for the separate systems. This formula for distribution shall be subject to approval by the Commission.

(d)       Enforcement. – Local officers hired by the local ABC board for the merged ABC system shall have the same territorial jurisdiction that officers for each of the merged boards would have.

(e)       Dissolution. – With the approval of the Commission, the cities or counties that have merged their ABC systems may dissolve the merged operation at any time and resume their prior separate operations.

(f)        Other Details Negotiated. – Issues not addressed in this section concerning the merger or dissolution of ABC systems, such as the method of appointment of the merged board, the size of the merged board, or the procedure for dissolution, may be negotiated by the affected cities and counties, subject to the approval of the Commission.

(g)       Operation Follows General Law. – Except as otherwise provided in this section, the authority and operation of any local board established under this section shall be the same as for any other local board.

(h)       Agreement for Joint Store Operations. – With the approval of the Commission, two or more governing bodies of counties and/or municipalities with ABC systems may enter into a written agreement whereby one or more ABC stores located within the counties and/or municipalities that are parties to the agreement shall be controlled and operated by the local ABC board specified in the agreement, even though said ABC store or stores are located outside the boundaries of the county or municipality of the local ABC board that will be operating the ABC store or stores that are subject to the agreement. The provisions of this section shall be effective as to such agreements insofar as is applicable. Issues not addressed in this section shall be negotiated by the parties, subject to the approval of the Commission. (1981, c. 412, s. 2; c. 747, s. 51; 2001‑128, s. 1.)

 

§§ 18B‑704 through 18B‑799.  Reserved for future codification purposes.