reglab/statecodes huggingface dataset:
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 12 - Wine Distribution Agreements. › § 18B-1206 - Transfer of business.

§ 18B-1206. Transfer of business.
(a) No winery may unreasonably withhold or delay consent to any transfer of the wholesaler's business or transfer of the stock or other interest in the wholesaleship whenever the wholesaler to be substituted meets the material and reasonable qualifications and standards required of the winery's wholesalers.
(b) Notwithstanding subsection (a), no winery may withhold consent to, or in any manner retain a right of prior approval of, the transfer of the wholesaler's business to a member or members of the family of the wholesaler. Subsequent to such a transfer, the rights and obligations of the wholesaleship and its owners are in all respects governed by the provisions of this Chapter. As used in this subsection, "family" means the spouse, parents, siblings, and lineal descendants, including those by adoption, of the wholesaler. (1983, c. 85, s. 2.)
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 12 - Wine Distribution Agreements. › § 18B-1207 - Judicial remedies.

§ 18B-1207. Judicial remedies.
(a) If a winery violates any provision of this Article, a wholesaler may maintain a suit against the winery. The court may grant injunctive and other appropriate relief, including damages to compensate the wholesaler for the value of the agreement and any good will, to remedy violations of this Article.
(b) Any winery that amends, cancels, terminates, or refuses to renew any wine agreement, or causes a wholesaler to resign from an agreement shall compensate the wine wholesaler for the wine wholesaler's wine inventory. The amount of compensation shall include the F.O.B. costs of the wine inventory and any freight charges incurred by the wine wholesaler in receiving them.
(c) For any violation of the provisions of this Article, the Commission may take any of the following actions against the winery:
(1) Suspend the winery's permit for a specific period of time no longer than three years;
(2) Revoke the winery's permit;
(3) Issue an order suspending the shipment of the winery's products to one or more designated sales territories previously served by the wholesaler who has been terminated or who is the successor in interest to a wholesaler who sold the winery's products in the designated territory.
(4) Impose a monetary penalty up to fifteen thousand dollars ($15,000) for a first offense and up to thirty-five thousand ($35,000) for the second offense. The clear proceeds of monetary penalties imposed pursuant to this subdivision shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2.
In any case in which the Commission is entitled to suspend or revoke a permit, the Commission may accept from the winery an offer in compromise to pay a monetary penalty. The Commission may either accept a compromise or revoke a permit, but not both. The Commission may accept a compromise and suspend the permit in the same case.
(d) Notwithstanding the choice of forum agreed to by the parties, venue for all actions under this Article shall be determined by the trial judge based upon the convenience of witnesses and the promotion of the ends of justice. (1983, c. 85, s. 2; 1989, c. 800, ss. 16, 17; 1998-215, s. 28.)
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 12 - Wine Distribution Agreements. › § 18B-1208 - Price of product.

§ 18B-1208. Price of product.
No winery, whether by means of a term or condition of an agreement or otherwise, may directly or indirectly fix or maintain the prices at which the wholesaler may sell any wine or beverage. (1983, c. 85, s. 2.)
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 12 - Wine Distribution Agreements. › § 18B-1209 - Retaliatory action prohibited.

§ 18B-1209. Retaliatory action prohibited.
No winery may take retaliatory action against a wholesaler who files or manifests an intention to file a complaint alleging that the winery violated a State or federal law or rule. Retaliatory action includes refusal without good cause to continue the agreement or a material reduction in the quality of service or quantity of products available to the wholesaler under the agreement. (1983, c. 85, s. 2.)
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 12 - Wine Distribution Agreements. › § 18B-1210 - Management.

§ 18B-1210. Management.
No winery may require or prohibit any change in management or personnel of any wholesaler unless the current or potential management or personnel fails to meet reasonable qualifications and standards required by the winery. (1983, c. 85, s. 2.)
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 12 - Wine Distribution Agreements. › § 18B-1211 - No discrimination.

§ 18B-1211. No discrimination.
No winery may discriminate among its wholesalers in any business dealings, including the price of wine sold to the wholesaler, unless the classification among its wholesalers is based upon reasonable grounds. (1983, c. 85, s. 2.)
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 12 - Wine Distribution Agreements. › § 18B-1212 - No waiver.

§ 18B-1212. No waiver.
No winery may require any wholesaler to waive compliance with any provision of this Chapter. Nothing in this Chapter, however, may be construed to limit or prohibit good faith settlements of disputes voluntarily entered into between the parties. (1983, c. 85, s. 2.)
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 12 - Wine Distribution Agreements. › § 18B-1213 - Obligations of purchaser.

§ 18B-1213. Obligations of purchaser.
The purchaser of a winery, and any successor to the import rights of a winery, is obligated to all the terms and conditions of an agreement in effect on the date of the purchase or other acquisition of the right to distribute a brand, except for good cause, which includes,
(1) Revocation of the wholesaler's permit or license to do business in this State,
(2) Bankruptcy or insolvency of the wholesaler,
(3) Assignment for the benefit of creditors or similar disposition of the assets of the wholesaler, or
(4) Failure by the wholesaler to comply substantially, without reasonable excuse or justification, with any reasonable and material requirement imposed upon the wholesaler by the winery.
As used in this Article, "purchase" includes the sale of stock, sale of assets, merger, lease, transfer, or consolidation. (1983, c. 85, s. 2; 2010-122, s. 25.)
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 12 - Wine Distribution Agreements. › § 18B-1214 - Prohibited practices enumerated.

§ 18B-1214. Prohibited practices enumerated.
It is a violation of this Article for any winery, directly or indirectly, to engage in any of the following practices:
(1) To restrict the sale of any equity or indebtedness or the transfer of any securities of any wholesaler or in any way prevent or attempt to prevent the transfer, sale, or issuance of shares of stock or indebtedness to employees, personnel of the wholesaler, or heirs of the principal owner, as long as basic financial requirements of the winery are complied with and the sale, transfer, or issuance does not have the effect of accomplishing a sale of the wholesaler;
(2) To impose unreasonable standards of performance upon a wholesaler;
(3) To prohibit directly or indirectly the right of free association among wholesalers for any lawful purpose. (1983, c. 85, s. 2.)
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 12 - Wine Distribution Agreements. › § 18B-1215 - Intent of nondiscrimination.

§ 18B-1215. Intent of nondiscrimination.
It is the intent of this Article that there shall be no unlawful discrimination based on race, color, creed, sex, religion, or national origin in any aspect of the awarding or maintaining of agreements covered by this Article. (1983, c. 85, s. 2.)
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 12 - Wine Distribution Agreements. › § 18B-1216 - Relation of Article to other laws.

§ 18B-1216. Relation of Article to other laws.
Nothing in this Article relieves a winery or wholesaler of any obligation, duty, or prohibition imposed by any other provision of this Chapter or by G.S. 75-1.1 or by any other provision of State law, and the remedies provided in this Article are nonexclusive. (1983, c. 85, s. 2.)
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 13 - Beer Franchise Law. › § 18B-1300 - Purpose.

§ 18B-1300. Purpose.
Pursuant to the authority of the State under the Twenty-First Amendment to the United States Constitution, the General Assembly finds that regulation of the business relations between malt beverage manufacturers and importers and the wholesalers of such products is necessary to:
(1) Maintain stability and healthy competition in the malt beverage industry in this State.
(2) Promote and maintain a sound, stable and viable three-tier system of distribution of malt beverages to the public.
(3) Promote the compelling interest of the public in fair business relations between malt beverage suppliers and wholesalers, and in the continuation of beer franchise agreements on a fair basis.
(4) Maintain a uniform system of control over the sale, purchase and distribution of malt beverages in the State.
(5) Prevent unfair or unlawful trade practices by enabling wholesalers to refuse to participate in such practices without fear of arbitrary or unlawful retribution from suppliers.
(6) Provide wholesalers with rights and remedies in addition to those existing by contract or common law.
(7) Govern all agreements between suppliers and wholesalers, including any renewals or amendments.
(8) Protect wholesalers against unfair treatment by suppliers.
(9) Preserve investments made by wholesalers in franchise agreements through minimization of arbitrary termination.
(10) Promote consumer choice by ensuring an independent wholesale distribution tier that enables wholesalers to distribute competing products of other suppliers.
(11) Prevent vertical integration of the malt beverage market. (1989, c. 142, s. 1; 2019-18, s. 4.)
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 13 - Beer Franchise Law. › § 18B-1301 - Definitions.

§ 18B-1301. Definitions.
(1) "Supplier" means a brewer, bottler, or importer of malt beverages, including anyone who holds a brewery, malt beverages importer or nonresident malt beverages vendor permit.
(2) "Wholesaler" means the holder of a malt beverages wholesaler permit. (1989, c. 142, s. 1; 1995, c. 466, s. 14.)
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 13 - Beer Franchise Law. › § 18B-1302 - Franchise agreement.

§ 18B-1302. Franchise agreement.
(a) Nature of Agreement. – A franchise agreement is a commercial relationship between a wholesaler and supplier of a definite or indefinite duration, whether written or oral, including:
(1) A relationship whereby a wholesaler is granted the right to offer and sell the brands of malt beverages offered by the supplier; or
(2) An agreement whereby a supplier grants to a wholesaler a license to use a trade name, trademark, service mark or related characteristic and in which there is a community of interest in the marking of the products of the supplier by lease or otherwise.
(b) Existence of Agreement. – A franchise agreement as described in subsection (a) exists when:
(1) The supplier has shipped malt beverages to a wholesaler or accepted an order for malt beverages from the wholesaler;
(2) A wholesaler has paid or the supplier has accepted payment for an order of malt beverages intended for sale within this State;
(3) The supplier and wholesaler have filed with the Commission a distribution agreement as required by G.S. 18B-1303; or
(4) A supplier acquires the right to manufacture a malt beverage product, or the trade name for such product, or the right to distribute a product, for which a wholesaler has a franchise agreement. (1989, c. 142, s. 1; 2005-350, s. 5.)
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 13 - Beer Franchise Law. › § 18B-1303 - Filing of distribution agreement; no discrimination.

§ 18B-1303. Filing of distribution agreement; no discrimination.
(a) Filing. – It is unlawful for a supplier to provide malt beverages to a wholesaler unless the Commission has received notification from the supplier designating the brands of the supplier which the wholesaler is authorized to sell and the territory in which such sales may take place. If the supplier sells several brands, the agreement need not apply to all brands. A franchise agreement applies to all supplier products under the same brand name, and different categories of products manufactured under a common identifying trade name are considered to be the same brand. No supplier may provide by a distribution agreement for the distribution of a brand to more than one wholesaler for the same territory. A wholesaler shall not distribute any brand of malt beverage to a retailer whose premises are located outside the territory specified in the wholesaler's distribution agreement for that brand, except to a retail permittee's off-site airport storage premises pursuant to G.S. 18B-1011. A wholesaler may, however, with the approval of the Commission distribute malt beverages outside its designated territory during periods of temporary service interruption when requested to do so by the supplier and the wholesaler whose service is interrupted.
(b) No Discrimination. – A wholesaler shall service all retail permit holders within the wholesaler's designated territory without discrimination and shall make a good faith effort to make available to each retail permit holder in the territory each brand of malt beverage which the wholesaler has been authorized to distribute in that area. The provisions of this subsection shall not apply to retail permit holder private label brands, which, at the retail permit holder's direction, may be sold either exclusively to the retailer that owns the brand name or to all retail permit holders within each territory without discrimination. For purposes of this subsection, the term "retail permit holder private label brand" means a malt beverage product that is labeled with a brand name owned by a retailer.
(c) No Price Maintenance. – A franchise agreement shall not, either expressly or by implication or in its operation, establish or maintain the resale price of any brand of malt beverages by a wholesaler. (1989, c. 142, s. 1; 1991, c. 459, s. 9; 1993, c. 415, s. 28; 1995, c. 466, s. 15; 2012-4, s. 1; 2019-182, s. 7; 2021-150, s. 19.6.)
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 13 - Beer Franchise Law. › § 18B-1306 - Remedies for wrongful termination.

§ 18B-1306. Remedies for wrongful termination.
(a) Injunctive Relief. – A wholesaler whose franchise agreement is altered, terminated or not renewed in violation of this Article may bring an action to enjoin such unlawful alteration, termination or failure to renew. The action may be brought in the county in which the wholesaler has its principal place of business or in any county in which the wholesaler receives or distributes the products in issue. Any injunction issued pursuant to this subsection shall require the wholesaler to supply the customers in its territory with their reasonable retail requirements and to otherwise serve the territory.
(b) Monetary Damages. – In lieu of injunctive relief, a wholesaler whose franchise agreement is altered, terminated or not renewed in violation of this Article shall be entitled to recover monetary damages from the supplier. The amount to which the wholesaler is entitled shall be the value of the wholesaler's business distributing the supplier's products, including:
(1) The laid-in costs to the wholesaler of the inventory of the supplier's products, including any State and local taxes paid on the inventory by the wholesaler, plus a reasonable charge for handling of the products upon surrender of the inventory to the supplier.
(2) The fair market value of all assets, including ancillary businesses of the wholesaler used in distributing the supplier's products. The total compensation to be paid to the wholesaler shall be reduced, however, by any amount received by the wholesaler from sale of assets of the business used in distributing the supplier's products as well as by the value such assets have to the wholesaler unrelated to the supplier's products. "Fair market value" means the highest dollar amount at which a seller would be willing to sell and a buyer willing to buy at a time prior to the alteration, termination or failure to renew, when each possesses all information relevant to the transaction. (1989, c. 142, s. 1; 2012-4, s. 1.)
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 13 - Beer Franchise Law. › § 18B-1308 - Article part of all franchise agreements.

§ 18B-1308. Article part of all franchise agreements.
The provisions of this Article shall be part of all franchise agreements as defined in G.S. 18B-1302 and may not be altered by the parties. A wholesaler's rights under this Article may not be waived or superseded by the provisions of a written franchise agreement prepared by a supplier that are in any way inconsistent with or contrary to any part of this Article. The rights of a wholesaler under this Article shall remain in effect regardless of a provision in a written franchise agreement prepared by a supplier that purports to require arbitration of a franchise dispute or that purports to require legal remedies to be sought in a different jurisdiction. (1989, c. 142, s. 1; 2012-4, s. 1.)
2023 North Carolina General Statutes › Chapter 18B - Regulation of Alcoholic Beverages › Article 13 - Beer Franchise Law. › § 18B-1309 - Mediation at direction of Alcoholic Beverage Control Commission.

§ 18B-1309. Mediation at direction of Alcoholic Beverage Control Commission.
If a dispute arises between a wholesaler and supplier under this Article, and such dispute appears likely to lead to litigation, the Commission, upon request of any party or on its own initiative, may require the parties to participate in mediation in an effort to resolve the dispute. This authority shall be in addition to the Commission's authority to issue declaratory rulings pursuant to G.S. 150B-4. The Commission may designate the mediator, in which case the Commission shall pay the mediator's fee, or the Commission may direct the parties to agree upon and share the costs of a mediator. If the parties then cannot agree upon a mediator, the Commission shall designate the mediator, and the fees shall be divided evenly by the parties. The Commission shall direct that the mediation be completed within a specified period of time. Except for injunctive relief, no lawsuit or other legal action concerning the dispute may be filed until the mediation is completed and is unsuccessful, unless necessary to avoid expiration of a statute of limitation. (2012-4, s. 1.)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 1 - General Provisions and Definitions. › § 18C-102 - Purpose and intent.

§ 18C-102. Purpose and intent.
The General Assembly declares that the purpose of this Chapter is to establish a State-operated lottery and to provide for the regulation of other sanctioned gaming enterprises in order to generate funds for the public purposes described in this Chapter and to support responsible gaming. (2005-344, s. 1; 2005-276, s. 31.1(b); 2023-42, s. 4(g).)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 1 - General Provisions and Definitions. › § 18C-103 - Definitions.

§ 18C-103. Definitions.
As used in this Chapter, unless the context requires otherwise:
(1) "Commission" means the North Carolina State Lottery Commission.
(2) "Commissioner" means a member of the Commission.
(3) "Director" means the person selected by the Commission to be the chief administrator of the North Carolina State Lottery.
(4) "Game" or "lottery game" means any procedure or amusement authorized by the Commission where prizes are distributed among persons who have paid, or unconditionally agreed to pay, for tickets or shares that provide the opportunity to win those prizes and does not utilize a video gaming machine as defined in G.S. 14-306.1(c).
(5) "Lottery" means any lottery game or series of games established and operated pursuant to this Chapter.
(6) "Lottery contractor" means a person other than a lottery retailer with whom the Commission has contracted for the purpose of providing goods or services to the Commission on an ongoing basis.
(6a) "Lottery supplier" means a person, other than a lottery retailer, with whom the Commission has contracted for the purpose of providing goods or services to the Commission for an individual purchase which may include a maintenance program.
(7) "Person" means any natural person or corporation, limited liability company, trust, association, partnership, joint venture, subsidiary, or other business entity.
(7a) "Potential contractor" or "lottery potential contractor" means any person other than a lottery retailer who submits a bid, proposal, or offer to procure a contract for goods or services for the Commission on an ongoing basis.
(8) "Retailer", "lottery retailer", or "lottery game retailer" means a person with whom the Commission has contracted to sell tickets or shares in lottery games.
(9) "Share" means any method of participation in a lottery game, other than by a ticket purchased on an equivalent basis with a ticket.
(10) "Ticket" means any tangible evidence authorized by the Commission to demonstrate participation in a lottery game.
(11) Repealed by Session Laws 2009-357, s. 5, effective July 27, 2009. (2005-344, s. 1; 2005-276, s. 31.1(c); 2009-357, s. 5; 2009-570, s. 32(a).)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 2 - North Carolina State Lottery Commission. › § 18C-110 - Establishment of the North Carolina State Lottery Commission to be a self-supporting agency of the State.

§ 18C-110. Establishment of the North Carolina State Lottery Commission to be a self-supporting agency of the State.
There is created the North Carolina State Lottery Commission to establish and oversee the operation of a Lottery. The Commission shall be located in the Department of Commerce for budgetary purposes only; otherwise, the Commission shall be an independent, self-supporting, and revenue-raising agency of the State. The Commission shall reimburse other governmental entities that provide services to the Commission. (2005-344, s. 1.)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 2 - North Carolina State Lottery Commission. › § 18C-111 - Commission membership; appointment; selection of chair; vacancies; removal; meetings; compensation.

§ 18C-111. Commission membership; appointment; selection of chair; vacancies; removal; meetings; compensation.
(a) The Commission shall consist of nine members, five of whom shall be appointed by the Governor, two of whom shall be appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, and two of whom shall be appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives. Commissioners may be removed by the appointing authority for cause. The Governor shall select the chair of the Commission from among its membership, who shall serve at the pleasure of the Governor.
(b) Of the initial appointees of the Governor, three members shall serve a term of one year, one member shall serve a term of two years, and one member shall serve a term of three years. Of the initial appointees of the General Assembly upon the recommendation of the President Pro Tempore of the Senate, one member shall serve a term of two years, and one member shall serve a term of three years. Of the initial appointees of the General Assembly upon the recommendation of the Speaker of the House of Representatives, one member shall serve a term of two years, and one member shall serve a term of three years. All succeeding appointments shall be for terms of five years. Members shall not serve for more than two successive terms.
(c) Vacancies shall be filled by the appointing authority for the unexpired portion of the term in which they occur.
(d) The Commission shall meet at least quarterly upon the call of the chair. A majority of the total membership of the Commission shall constitute a quorum.
(e) Members of the Commission shall receive per diem, subsistence, and travel as provided in G.S. 138-5 and G.S. 138-6. (2005-344, s. 1; 2005-276, s. 31.1(d); 2006-259, s. 8(c).)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 2 - North Carolina State Lottery Commission. › § 18C-112 - Qualifications of Commissioners.

§ 18C-112. Qualifications of Commissioners.
(a) Of the members of the Commission appointed by the Governor, at least one member shall have a minimum of five years' experience in law enforcement. Notwithstanding subsection (e) of this section, a member serving in this slot may be an elected law enforcement official.
(b) Of the members appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, one member shall be a certified public accountant.
(c) Of the members of the Commission appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives, one member shall have retail sales experience as an owner or manager.
(d) In making appointments to the Commission, the appointing authorities shall consider the composition of the State with regard to geographic representation and gender, ethnic, racial, and age composition.
(e) If any member takes any of the following actions, the member vacates office as a member of the Commission and the vacancy shall be filled as provided by G.S. 18C-111(c):
(1) Files a notice of candidacy under G.S. 163-106 through 163-106.6 or a petition under G.S. 163-107.1.
(2) Is nominated to fill a vacancy among party nominees under G.S. 163-114 or G.S. 163-115.
(3) Files a petition as an unaffiliated candidate under G.S. 163-122.
(4) Files a declaration of intent as a write-in candidate under G.S. 163-123.
(5) Is nominated by party convention under G.S. 163-98. (2005-344, s. 1; 2005-276, s. 31.1(e); 2011-145, s. 6.18; 2011-391, s. 10; 2017-3, s. 1; 2017-6, s. 3; 2017-206, s. 8; 2018-146, ss. 3.1(a), (b), 6.1.)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 2 - North Carolina State Lottery Commission. › § 18C-113 - Meetings; records.

§ 18C-113. Meetings; records.
(a) Meetings of the Commission shall be subject to Article 33C of Chapter 143 of the General Statutes.
(b) Records of the Commission shall be open and available to the public in accordance with Chapter 132 of the General Statutes, except as provided in this Article or unless disclosure could be used to potentially (i) provide an unfair advantage to a player or (ii) impair or adversely impact the security or integrity of the operation of the Lottery, any of its games, or investigations into potentially fraudulent or other activities in violations of any laws, Lottery rules, regulations, and policies.
(c) Personnel records of the Commission are subject to Article 7 of Chapter 126 of the General Statutes.
(d) Only the following information concerning a lottery winner is a public record: (i) name, (ii) city and state of residence, (iii) game played, (iv) amount won, and (v) date won. For purposes of this subsection, amount won means the nominal prize amount, the cash payment if different from the nominal prize amount, and the cash payment after taxes are withheld. (2005-344, s. 1; 2009-357, s. 6; 2023-42, s. 4(h).)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 2 - North Carolina State Lottery Commission. › § 18C-115 - Reports.

§ 18C-115. Reports.
(a) Reports on Operation of the Commission. – The Commission shall send quarterly and annual reports on the operations of the Commission to the Governor, State Treasurer, and to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources, the chairs of the Senate Appropriations Committee on Agriculture, Natural, and Economic Resources, and the chairs of the House of Representatives Appropriations Committee on Agriculture and Natural and Economic Resources. The reports shall include complete statements of lottery revenues, prize disbursements, expenses, net revenues, and all other financial transactions involving lottery funds, including the occurrence of any audit.
(b) Disclosure of Proceeds From Lottery Funding. – Each State department or agency receiving lottery funds shall use its established communications channels to inform the public about amounts received and activities supported by lottery proceeds. (2005-344, s. 1; 2006-225, s. 2; 2014-100, s. 5.2(g); 2015-241, s. 15.23; 2017-57, s. 14.1(o).)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 2 - North Carolina State Lottery Commission. › § 18C-116 - Audits.

§ 18C-116. Audits.
The State Auditor shall conduct annual audits of all accounts and transactions of the Commission and any other special postaudits the State Auditor considers to be necessary. (2005-344, s. 1.)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 3 - North Carolina State Lottery Director. › § 18C-120 - Selection of the Director; powers and duties.

§ 18C-120. Selection of the Director; powers and duties.
(a) The Commission shall select a Director to operate and administer the Lottery and to serve as the Secretary of the Commission. Except as to the provisions of Articles 6 and 7 of Chapter 126 of the General Statutes, the Director shall be exempt from the North Carolina Human Resources Act.
(b) The Director shall have the following powers and duties, under the supervision of the Commission:
(1) To provide for the reporting of payment of lottery game prizes to State and federal tax authorities and for the withholding of State and federal income taxes from lottery game prizes as provided in State and federal law.
(2) To conduct a background investigation, including a criminal history record check, of applicants for employment with the Commission, licensees and their key persons, lottery contractors, lottery retailers, and lottery potential contractors, which may include a search of the State and National Repositories of Criminal Histories based on the fingerprints of applicants.
(3) To set the salaries of all Commission employees, subject to the approval of the Commission. Except for the provisions of Articles 6 and 7 of Chapter 126 of the General Statutes, all employees of the Commission shall be exempt from the North Carolina Human Resources Act.
(4) To enter into contracts with lottery retailers, lottery contractors, or lottery suppliers upon approval by the Commission.
(5) To provide for the security and accuracy in the operation and administration of the Commission and the Lottery, including examining the background of all prospective employees, lottery potential contractors, lottery contractors, and lottery retailers.
(6) To coordinate and collaborate with the appropriate law enforcement authorities regarding investigations of violations of the laws relating to the operation of the Lottery and make reports to the Commission regarding those investigations.
(7) To confer with the Commission on the operation and administration of the Lottery and make available for inspection by the Commission all books, records, files, documents, and other information of the Lottery.
(8) To study the operation and administration of other lotteries and to collect demographic and other information concerning the Lottery and make recommendations to improve the operation and administration of the Lottery to the Commission, to the Governor, and to the General Assembly.
(9) To provide monthly financial reports to the Commission of all lottery revenues, prize disbursements, expenses, net revenues, and all other financial transactions involving lottery funds.
(10) To enter into agreements with other states to operate and promote multistate lotteries consistent with the purposes set forth in this Chapter and upon the approval of the Commission.
(11) Exercise authority assigned or delegated by the Commission. (2005-344, s. 1; 2005-276, s. 31.1(g); 2009-357, s. 7; 2013-382, s. 9.1(c); 2023-42, s. 4(b).)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 3 - North Carolina State Lottery Director. › § 18C-121 - Accountability; books and records.

§ 18C-121. Accountability; books and records.
The Director shall have made and kept books and records that accurately and completely reflect each day's transactions, including the distribution of tickets or shares to lottery game retailers, receipt of funds, prize claims, prizes paid directly by the Commission, expenses, and all other financial transactions involving lottery funds necessary to permit preparation of financial statements that conform with generally accepted accounting principles. (2005-344, s. 1; 2005-276, s. 31.1(h).)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 3 - North Carolina State Lottery Director. › § 18C-122 - Independent audits.

§ 18C-122. Independent audits.
(a) Biennially, at the beginning of the calendar year, the Commission shall engage an independent firm experienced in security procedures, including computer security and systems security, to conduct a comprehensive study and evaluation of all aspects of security in the operation of the Commission and of the Lottery. At a minimum, such a security assessment should include a review of network vulnerability, application vulnerability, application code review, wireless security, security policy and processes, security/privacy program management, technology infrastructure and security controls, security organization and governance, and operational effectiveness.
(b) The portion of the security audit report containing the overall evaluation of the Commission and of lottery games in terms of each aspect of security shall be presented to the Commission, to the Governor, and to the General Assembly.
(c) The portion of the security audit report containing specific recommendations shall be confidential, shall be presented only to the Director and to the Commission, and shall be exempt from Chapter 132 of the General Statutes. The Commission may hear the report of such an audit, discuss, and take action on any recommendations to address that audit under G.S. 143-318.11(a)(1). The Commission may hear reports on the following matters under G.S. 143-318.11(a)(1), all of which shall be exempt from Chapter 132 of the General Statutes:
(1) Information regarding any vulnerabilities listed in subsection (a) of this section.
(2) Information that could impair or adversely impact the security of the Lottery or the Commission in carrying out its responsibilities as directed in this Chapter.
(3) Information that could be used to provide an unfair advantage to a player or jeopardize the integrity of any lottery game.
(d) Biennially at the end of the fiscal year, in addition to the audits required by G.S. 18C-116 and by subsection (a) of this section, beginning in 2010, the Commission shall engage an independent auditing firm that has experience in evaluating the operation of lotteries to perform an audit of the Lottery. The results of this audit shall be presented to the Commission, to the Governor, and to the General Assembly. (2005-344, s. 1; 2005-276, s. 31.1(i); 2009-357, s. 15; 2023-42, s. 4(i).)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 4 - Operation of Lottery. › § 18C-130 - Types of lottery games; lottery games and lottery advertising; certain disclosures and information to be provided.

§ 18C-130. Types of lottery games; lottery games and lottery advertising; certain disclosures and information to be provided.
(a) The Commission shall determine the types of lottery games that may be used in the Lottery. Games may include instant lotteries, online games, games played on computer terminals or other devices, and other games traditional to a lottery or that have been conducted by any other state government-operated lottery.
(b) In lottery games using tickets, each ticket in a particular game shall have printed on it a unique number distinguishing it from every other ticket in that lottery game and an abbreviated form of the game-play rules, including resources for responsible gaming information. In lottery games using tickets, each ticket may have printed on it a depiction of one or more cartoon characters, whose primary appeal is not to minors. In lottery games using tickets with preprinted winners, the overall estimated odds of winning prizes shall be printed on each ticket. No name or photograph of a current or former elected official shall appear on the tickets of any lottery game.
(c) In games using electronic computer terminals or other devices to play lottery games, no coins or currency shall be dispensed to players from those electronic computer terminals or devices.
(d) No games shall be based on the outcome of a particular sporting event or on the results of a series of sporting events.
(e) Lottery advertising shall be tastefully designed and presented in a manner to minimize the appeal of lottery games to minors. The use of cartoon characters or of false, misleading, or deceptive information in lottery advertising is prohibited. All advertising promoting the sale of lottery tickets or shares for a particular game shall include the actual or estimated overall odds of winning the game.
(f) The Commission shall make available a detailed tabulation of the estimated number of prizes of each particular prize denomination that are expected to be awarded in each lottery game or the estimated odds of winning these prizes at the time that lottery game is offered for sale to the public.
(g) The Commission shall, in consultation with the Department of Health and Human Services, develop and provide information to the public about gambling addiction and treatment. (2005-344, s. 1; 2005-276, ss. 31.1(j), 31.1(j1); 2006-259, s. 8(a).)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 4 - Operation of Lottery. › § 18C-131 - Sales and sale price of tickets and shares; sales to minors prohibited.

§ 18C-131. Sales and sale price of tickets and shares; sales to minors prohibited.
(a) The Commission may sell tickets and shares directly to the public, contract with lottery game retailers to sell tickets and shares, or distribute tickets or shares through any other method authorized by the Commission.
(b) No ticket or share in a lottery game shall be sold or resold for more than the retail sales price established by the Commission.
(c) The minimum retail price of each ticket or share in any lottery game shall be fifty cents (50¢). The minimum retail price shall not apply to any discounts or promotions authorized by the Commission for a particular lottery game.
(d) It shall be unlawful for a person to sell a lottery ticket or share to a person under the age of 18 years. No person under the age of 18 years shall purchase a lottery ticket or share. A person who violates this subsection shall be guilty of a Class 1 misdemeanor.
(e) It shall be a defense for the person who sold a ticket or share in violation of subsection (d) of this section if the person does either of the following:
(1) Shows that the purchaser produced a valid drivers license, a special identification card issued under G.S. 20-37.7, a military identification card, or a passport, showing the purchaser to be at least 18 years old and bearing a physical description of the person named on the card that reasonably describes the purchaser.
(2) Produces evidence of other facts that reasonably indicated at the time of sale that the purchaser was at least 18 years old. (2005-344, s. 1; 2006-259, s. 8(b).)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 4 - Operation of Lottery. › § 18C-133 - Lottery game-play rules and winner validation procedures.

§ 18C-133. Lottery game-play rules and winner validation procedures.
(a) By purchasing a ticket or share in a lottery game, a player agrees to abide by, and be bound by, the game-play rules adopted by the Commission that apply to any particular lottery game involved.
(b) All players acknowledge that the determination of whether the player is a winner is subject to the game-play rules and the winner validation procedures and confidential validation tests established by the Commission for the particular lottery game involved. (2005-344, s. 1.)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 5 - Lottery Game Retailers. › § 18C-140 - Contracting with lottery game retailers.

§ 18C-140. Contracting with lottery game retailers.
The Commission may contract with lottery game retailers to sell tickets or shares for lottery games upon such terms and conditions as it considers appropriate. The contract entered into between the Commission and the lottery game retailer shall be considered a permit for purposes of Chapter 18B of the General Statutes. No contract to act as a lottery game retailer is assignable or transferable. All contracts with lottery game retailers shall provide that the Director may terminate the contract if the lottery game retailer violates a provision of this Chapter. (2005-344, s. 1; 2005-276, s. 31.1(l).)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 5 - Lottery Game Retailers. › § 18C-141 - Selection of lottery game retailers.

§ 18C-141. Selection of lottery game retailers.
(a) The Director shall recommend to the Commission those persons with whom to contract as lottery game retailers. To the extent practicable, the Director shall meet the minority participation goals under Article 8 of Chapter 143 of the General Statutes.
(b) The Director may not recommend contracting with any of the following:
(1) A natural person under 21 years of age. This minimum age shall not prohibit employees of a lottery game retailer who are under 21 years of age from selling lottery tickets or shares during their employment.
(2) A person who would be engaged exclusively in the business of selling lottery tickets or shares or operating electronic computer terminals or other devices solely for entertainment.
(3) A person who is not current in filing all applicable tax returns to the State and in payment of all taxes, interest, and penalties owed to the State, excluding items under formal appeal under applicable statutes. Upon request of the Director, the Department of Revenue shall provide this information about a specific person to the Commission.
(4) A person who resides in the same household as a member of the Commission, the Director, or any other employee of the Commission.
(c) Upon approval of the Commission, the Director shall enter into a contract with the person to sell tickets or shares upon such terms and conditions as the Commission directs. (2005-344, s. 1; 2005-276, s. 31.1(m).)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 5 - Lottery Game Retailers. › § 18C-142 - Compensation for lottery game retailers.

§ 18C-142. Compensation for lottery game retailers.
The amount of compensation paid to lottery game retailers for their sales of lottery tickets or shares shall be seven percent (7%) of the face value of the tickets or shares sold for each lottery game. The Commission shall require submission of reports and remission of lottery revenues to the Commission on a timely basis. (2005-344, s. 1; 2005-276, s. 31.1(n); 2009-357, s. 11.)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 5 - Lottery Game Retailers. › § 18C-143 - Responsibilities of lottery game retailers.

§ 18C-143. Responsibilities of lottery game retailers.
(a) A lottery game retailer shall comply with all provisions of this Article and the contract with the Commission.
(b) A lottery game retailer shall sell no lottery tickets or shares unless the retailer conspicuously displays a certificate of authority, signed by the Director, to sell lottery tickets or shares. The Commission shall issue a certificate of authority to each lottery game retailer for purposes of display for each retail outlet owned or operated by the lottery game retailer. No certificate is assignable or transferable.
(c) A lottery game retailer shall furnish an appropriate bond or letter of credit, if so requested by the Director. The Commission may authorize the Director to purchase blanket bonds covering the activities of any or all lottery game retailers.
(d) The Commission shall adopt rules to establish procedures governing how the lottery game retailers:
(1) Account for all tickets or shares in their custody, including tickets and shares sold.
(2) Account for the money collected from the sale of tickets and shares.
(3) Remit funds to the Commission, provided that all payments shall be in the form of electronic fund transfers or other recorded financial instruments as authorized by the Commission and approved by the Director.
(e) No lottery retailer or applicant to be a lottery retailer shall pay, give, or make any economic opportunity, gift, loan, gratuity, special discount, favor, hospitality, or service, excluding food and beverages having an aggregate value not exceeding one hundred dollars ($100.00) in any calendar year, to the Director, to any member or employee of the Commission, or to any member of the immediate family residing in the same household as one of these individuals.
(f) All lottery proceeds minus applicable retailer commissions are held in trust by lottery retailers until such time as they are received by the Commission. A lottery retailer shall have a fiduciary duty to preserve and account for lottery proceeds including any unsold tickets. (2005-344, s. 1; 2005-276, s. 31.1(o); 2009-357, s. 13.)
2023 North Carolina General Statutes › Chapter 18C - North Carolina State Lottery › Article 6 - Lottery Potential Contractors and Lottery Contractors. › § 18C-150 - Procurements.

§ 18C-150. Procurements.
The Commission shall be exempt from Article 3 of Chapter 143 of the General Statutes but may use the services of the Department of Administration in procuring goods and services for the Commission. However, the Commission shall include in all contracts to be awarded by the Commission under this section a standard clause which provides that the State Auditor and internal auditors of the Commission may audit the records of the contractor during and after the term of the contract to verify accounts and data affecting fees and performance. The Commission shall not award a cost plus percentage of cost contract for any purpose. For purposes of this provision, "cost plus percentage of cost contract" is defined as a contract under which the contractor receives payment for indeterminate costs plus a stated percentage or amount of profit based upon such costs. This provision shall not apply to Commission contracts that require costs to be predetermined and approved by the Commission and a total not to exceed the amount specified in each contract to be paid to the contractor. (2005-344, s. 1; 2010-194, s. 1; 2011-326, s. 15(a).)