S246 - Craft Beer Distribution & Modernization Act

• Increases the small brewery barrelage threshold from 25,000 to 100,000 barrels per year for breweries that can self-distribute malt beverages and operate up to three additional retail locations.

• Requires breweries that revert self-distribution rights back to wholesalers to pay fair market value for the distribution rights to the affected brand.

• Reaffirms North Carolina's support for the three-tier distribution system (manufacturer-wholesaler-retailer) and the Beer Franchise Law to prevent vertical integration and ensure wholesaler independence.

• Establishes that regulations apply to malt beverages, unfortified wine, and fortified wine through the three-tier regulatory system and franchise laws.

• Takes effect immediately upon becoming law, with exemption orders issued by the Alcoholic Beverage Control Commission prior to enactment remaining unaffected.