North Carolina 2025-2026 Regular Session

North Carolina House Bill H135 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 135
	3	+	H D
	4	+	HOUSE BILL DRH30057-TQxf-1
	5	+
5	6
6	7
7	8		Short Title: Misbranding/Cell-Cultured Meat/Env. Assess. (Public)
8		-	Sponsors: Representatives McNeely, Humphrey, Lowery, and K. Hall (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Finance, if favorable, Health, if favorable, Commerce and Economic
11		-	Development, if favorable, Agriculture and Environment, if favorable, Rules,
12		-	Calendar, and Operations of the House
13		-	February 18, 2025
14		-	H135 -v-1
	9	+	Sponsors: Representative McNeely.
	10	+	Referred to:
	11	+
	12	+	DRH30057 -TQxf-1
15	13		A BILL TO BE ENTITLED 1
16	14		AN ACT TO PROHIBIT THE MISBRANDING OF CERTAIN FOOD PRODUCTS; TO 2
17	15		PROHIBIT COMMUNITY COLLEGES, UNIVERSITIES, AND PUBLIC SCHOOLS 3
18	16		FROM PURCHASING CERTAIN FOOD PRODUCTS; AND TO ESTABLISH AN 4
19	17		ENVIRONMENTAL INVESTMENT ASSESSMENT ON CERTAIN MEAT, POULTRY, 5
20	18		EGG, AND DAIRY PRODUCTS AND ANALOGOUS PRODUCTS . 6
21	19		The General Assembly of North Carolina enacts: 7
22	20		8
23	21		REQUIRE LABELING OF MANUFACTURED -PROTEIN PRODUCTS 9
24	22		SECTION 1.(a) G.S. 106-549.15 reads as rewritten: 10
25	23		"§ 106-549.15. Definitions. 11
26	24		As used in this Article, except as otherwise specified, the following terms shall have the 12
27	25		meanings stated below: 13
28	26		… 14
29	27		(1a) "Agricultural food animal" means a domesticated animal belonging to the 15
30	28		bovine, caprine, ovine, or porcine species. 16
31	29		… 17
32	30		(5a) "Cell-cultured food product" means a food product having one or more 18
33	31		sensory attributes that resemble a type of tissue originating from an 19
34	32		agricultural food animal but that, in lieu of being derived from meat 20
35	33		processing, is derived from manufacturing cells, in which one or more stem 21
36	34		cells are initially isolated from an agricultural food animal, are grown in vitro, 22
37	35		and may be manipulated, as part of a manufacturing operation. 23
38	36		(5b) "Close proximity" means any of the following: 24
39	37		a. Immediately before or after the name of the product. 25
40	38		b. In the line of the label immediately before or after the line containing 26
41	39		the name of the product. 27
42	40		c. Within the same phrase or sentence containing the name of the 28
43	41		product. 29
44	42		… 30
45	43		(9a) "Identifying meat term" means any word or phrase that states, indicates, 31
46		-	suggests, or describes a meat product, regardless of whether the word or 32 General Assembly Of North Carolina Session 2025
47		-	Page 2 House Bill 135-First Edition
48		-	phrase is used individually, as a portmanteau, or as a compound word. This 1
49		-	term includes all of the following: 2
50		-	a. A common name for the species of the agricultural food animal subject 3
51		-	to slaughter and processing, including a calf or cow, goat or kid, hog 4
52		-	or pig, or lamb or sheep. 5
53		-	b. A common name for a characteristic of a species of the agricultural 6
54		-	food animal subject to slaughter and processing based on age, breed, 7
55		-	or sex. 8
56		-	c. Meat, beef or veal, cabrito or chevon, lamb or mutton, or pork. 9
57		-	d. A common name used to describe a major cut of a meat of an 10
58		-	agricultural food animal slaughtered and processed, including a major 11
59		-	meat cut specified in 9 C.F.R. § 317.344, or the common name of an 12
60		-	organ or offal, including heart, liver, kidney, or tongue. 13
61		-	e. Any other common name that a reasonable purchaser would 14
62		-	immediately and exclusively associate with a meat product prepared 15
63		-	for sale in normal commercial channels such as bacon, baloney, 16
64		-	bologna, bone, brat or bratwurst, brisket, burger or hamburger, butt, 17
65		-	chop, chuck, cold cut, cutlet, filet, flat iron, frank or frankfurter, ham, 18
66		-	hock, hot dog, jerky, liverwurst, loin, London broil, lunch meat, New 19
67		-	York strip, pepperoni, porterhouse, ribeye, roast, rib or sparerib, 20
68		-	salami, sausage, shank, sirloin, tenderloin, or a comparable word or 21
69		-	phrase. 22
70		-	(9b) "Insect-protein food product" means a food product having one or more 23
71		-	sensory attributes that resemble a type of tissue originating from an 24
72		-	agricultural food animal but that, in lieu of being derived from meat 25
73		-	processing, is derived from manufacturing insect parts. 26
74		-	… 27
75		-	(12a) "Manufactured-protein food product" means a cell-cultured food product, 28
76		-	insect-protein food product, or plant-protein food product. 29
77		-	… 30
78		-	(14) "Meat food product" means any product capable of use as human food that is 31
79		-	made wholly or in part from any meat or other portion of the carcass of any 32
80		-	cattle, sheep, swine, goats, bison, fallow deer, or red deer, or any cell-cultured 33
81		-	product made from cells of those animals, excepting products that contain 34
82		-	meat or other portions of such carcasses only in a relatively small proportion 35
83		-	or historically have not been considered by consumers as products of the meat 36
84		-	food industry, and that are exempted from definition as a meat food product 37
85		-	by the Board under such conditions as it may prescribe to assure that the meat 38
86		-	or other portions of such carcasses contained in such product are not 39
87		-	adulterated and that such products are not represented as meat food products. 40
88		-	This term as applied to food products of equines shall have a meaning 41
89		-	comparable to that provided in this subdivision with respect to cattle, sheep, 42
90		-	swine, goats, and bison. 43
91		-	(15) "Misbranded" shall apply to any carcass, part thereof, meat or meat food 44
92		-	product under one or more of the following circumstances: 45
93		-	a. If its labeling is false or misleading in any particular; 46
94		-	b. If it is offered for sale under the name of another food; 47
95		-	c. If it is imitation of another food, unless its label bears, in type of 48
96		-	uniform size and prominence, the word "imitation" and immediately 49
97		-	thereafter, the name of the food imitated; 50
98		-	… 51 General Assembly Of North Carolina Session 2025
99		-	House Bill 135-First Edition Page 3
100		-	m. The product is a cell-cultured product, and it is not labeled in 1
101		-	accordance with G.S. 106-549.28A. 2
102		-	… 3
103		-	(20a) "Plant-protein food product" means a food product having one or more 4
104		-	sensory attributes that resemble a type of tissue originating from an 5
105		-	agricultural food animal but that, in lieu of being derived from meat 6
106		-	processing, is derived from manufacturing plant or fungus parts. 7
107		-	… 8
108		-	(21a) "Qualifying term" means a word, compound word, or phrase that would 9
109		-	clearly disclose to a reasonable purchaser of meat products that a food product 10
110		-	is not a meat product. This includes the following terms: "cell-cultured," 11
111		-	"fake," "grown in a lab," "insect," "insect-based," "insect-protein," 12
112		-	"lab-created," "lab-grown," "meat free," "meatless," "plant," "plant-based," 13
113		-	"vegan," "vegetable," "vegetarian," or "veggie." 14
114		-	(21b) "Ratite" means a bird whose breastbone is smooth so that flight muscles 15
115		-	cannot attach, such as an ostrich, an emu, and a rhea. These birds are subject 16
116		-	to the provisions of this Article and Article 49C to the same extent as any other 17
117		-	meat food product. 18
118		-	…." 19
119		-	SECTION 1.(b) Article 49B of Chapter 106 of the General Statutes is amended by 20
120		-	adding a new section to read: 21
121		-	"§ 106-549.28A. Labeling of manufactured-protein food products. 22
122		-	(a) The label of any manufactured-protein food product that contains an identifying meat 23
123		-	term shall also contain in at least 20-point font or the size of the surrounding type, whichever is 24
124		-	greater, and in close proximity to the name of the product, an appropriate qualifying term. 25
125		-	(b) A manufactured-protein food product that does not meet the requirements of this 26
126		-	section shall be deemed misbranded for purposes of this Article." 27
127		-	SECTION 1.(c) G.S. 106-549.51 reads as rewritten: 28
128		-	"§ 106-549.51. Definitions. 29
129		-	For purposes of this Article, the following terms shall have the meanings stated below: 30
130		-	… 31
131		-	(4a) "Cell-cultured food product" means a food product having one or more 32
132		-	sensory attributes that resemble a type of tissue originating from poultry but 33
133		-	that, in lieu of being derived from meat processing, is derived from 34
134		-	manufacturing cells, in which one or more stem cells are initially isolated from 35
135		-	poultry, are grown in vitro, and may be manipulated, as part of a 36
136		-	manufacturing operation. 37
137		-	(4b) "Close proximity" means any of the following: 38
138		-	a. Immediately before or after the name of the product. 39
139		-	b. In the line of the label immediately before or after the line containing 40
140		-	the name of the product. 41
141		-	c. Within the same phrase or sentence containing the name of the 42
142		-	product. 43
143		-	… 44
144		-	(10a) "Identifying poultry term" means any word or phrase that states, indicates, 45
145		-	suggests, or describes a poultry product, regardless of whether the word or 46
146		-	phrase is used individually, as a portmanteau, or as a compound word. This 47
147		-	term includes all of the following: 48
148		-	a. A common name for the species of the poultry subject to slaughter and 49
149		-	processing, including chicken, poultry, or turkey. 50 General Assembly Of North Carolina Session 2025
150		-	Page 4 House Bill 135-First Edition
151		-	b. A common name for a characteristic of a species of the poultry subject 1
152		-	to slaughter and processing based on age, breed, or sex. 2
153		-	c. Meat, broiler, fryer, poulet, or yearling. 3
154		-	d. A common name used to describe a major cut of poultry slaughtered 4
155		-	and processed, including a poultry product such as breast, drumstick, 5
156		-	giblet, thigh, or wing; or the common name of an organ or offal, 6
157		-	including gizzard, heart, liver, kidney, or tongue. 7
158		-	e. Any other common name that a reasonable purchaser would 8
159		-	immediately and exclusively associate with a poultry product prepared 9
160		-	for sale in normal commercial channels. 10
161		-	… 11
162		-	(11a) "Insect-protein food product" means a food product having one or more 12
163		-	sensory attributes that resemble a type of tissue originating from poultry but 13
164		-	that, in lieu of being derived from meat processing, is derived from 14
165		-	manufacturing insect parts. 15
166		-	… 16
167		-	(16a) "Manufactured-protein food product" means a cell-cultured food product, 17
168		-	insect-protein food product, or plant-protein food product. 18
169		-	(17) "Misbranded" shall apply to any poultry product under one or more of the 19
170		-	following circumstances: 20
171		-	a. If its labeling is false or misleading in any particular; 21
172		-	b If it is offered for sale under the name of another food; 22
173		-	c. If it is an imitation of another food, unless its label bears, in type of 23
174		-	uniform size and prominence, the word "imitation" and immediately 24
175		-	thereafter, the name of the food imitated; 25
176		-	… 26
177		-	m. If it is a manufactured-protein food product and it is not labeled in 27
178		-	accordance with G.S. 106-549.55(e). 28
	44	+	suggests, or describes a meat product, regardless of whether the word or 32
	45	+	phrase is used individually, as a portmanteau, or as a compound word. This 33
	46	+	term includes all of the following: 34
	47	+	H.B. 135
	48	+	Feb 17, 2025
	49	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	50	+	Page 2 DRH30057-TQxf-1
	51	+	a. A common name for the species of the agricultural food animal subject 1
	52	+	to slaughter and processing, including a calf or cow, goat or kid, hog 2
	53	+	or pig, or lamb or sheep. 3
	54	+	b. A common name for a characteristic of a species of the agricultural 4
	55	+	food animal subject to slaughter and processing based on age, breed, 5
	56	+	or sex. 6
	57	+	c. Meat, beef or veal, cabrito or chevon, lamb or mutton, or pork. 7
	58	+	d. A common name used to describe a major cut of a meat of an 8
	59	+	agricultural food animal slaughtered and processed, including a major 9
	60	+	meat cut specified in 9 C.F.R. § 317.344, or the common name of an 10
	61	+	organ or offal, including heart, liver, kidney, or tongue. 11
	62	+	e. Any other common name that a reasonable purchaser would 12
	63	+	immediately and exclusively associate with a meat product prepared 13
	64	+	for sale in normal commercial channels such as bacon, baloney, 14
	65	+	bologna, bone, brat or bratwurst, brisket, burger or hamburger, butt, 15
	66	+	chop, chuck, cold cut, cutlet, filet, flat iron, frank or frankfurter, ham, 16
	67	+	hock, hot dog, jerky, liverwurst, loin, London broil, lunch meat, New 17
	68	+	York strip, pepperoni, porterhouse, ribeye, roast, rib or sparerib, 18
	69	+	salami, sausage, shank, sirloin, tenderloin, or a comparable word or 19
	70	+	phrase. 20
	71	+	(9b) "Insect-protein food product" means a food product having one or more 21
	72	+	sensory attributes that resemble a type of tissue originating from an 22
	73	+	agricultural food animal but that, in lieu of being derived from meat 23
	74	+	processing, is derived from manufacturing insect parts. 24
	75	+	… 25
	76	+	(12a) "Manufactured-protein food product" means a cell-cultured food product, 26
	77	+	insect-protein food product, or plant-protein food product. 27
	78	+	… 28
	79	+	(14) "Meat food product" means any product capable of use as human food that is 29
	80	+	made wholly or in part from any meat or other portion of the carcass of any 30
	81	+	cattle, sheep, swine, goats, bison, fallow deer, or red deer, or any cell-cultured 31
	82	+	product made from cells of those animals, excepting products that contain 32
	83	+	meat or other portions of such carcasses only in a relatively small proportion 33
	84	+	or historically have not been considered by consumers as products of the meat 34
	85	+	food industry, and that are exempted from definition as a meat food product 35
	86	+	by the Board under such conditions as it may prescribe to assure that the meat 36
	87	+	or other portions of such carcasses contained in such product are not 37
	88	+	adulterated and that such products are not represented as meat food products. 38
	89	+	This term as applied to food products of equines shall have a meaning 39
	90	+	comparable to that provided in this subdivision with respect to cattle, sheep, 40
	91	+	swine, goats, and bison. 41
	92	+	(15) "Misbranded" shall apply to any carcass, part thereof, meat or meat food 42
	93	+	product under one or more of the following circumstances: 43
	94	+	a. If its labeling is false or misleading in any particular; 44
	95	+	b. If it is offered for sale under the name of another food; 45
	96	+	c. If it is imitation of another food, unless its label bears, in type of 46
	97	+	uniform size and prominence, the word "imitation" and immediately 47
	98	+	thereafter, the name of the food imitated; 48
	99	+	… 49
	100	+	m. The product is a cell-cultured product, and it is not labeled in 50
	101	+	accordance with G.S. 106-549.28A. 51 General Assembly Of North Carolina Session 2025
	102	+	DRH30057-TQxf-1 Page 3
	103	+	… 1
	104	+	(20a) "Plant-protein food product" means a food product having one or more 2
	105	+	sensory attributes that resemble a type of tissue originating from an 3
	106	+	agricultural food animal but that, in lieu of being derived from meat 4
	107	+	processing, is derived from manufacturing plant or fungus parts. 5
	108	+	… 6
	109	+	(21a) "Qualifying term" means a word, compound word, or phrase that would 7
	110	+	clearly disclose to a reasonable purchaser of meat products that a food product 8
	111	+	is not a meat product. This includes the following terms: "cell-cultured," 9
	112	+	"fake," "grown in a lab," "insect," "insect-based," "insect-protein," 10
	113	+	"lab-created," "lab-grown," "meat free," "meatless," "plant," "plant-based," 11
	114	+	"vegan," "vegetable," "vegetarian," or "veggie." 12
	115	+	(21b) "Ratite" means a bird whose breastbone is smooth so that flight muscles 13
	116	+	cannot attach, such as an ostrich, an emu, and a rhea. These birds are subject 14
	117	+	to the provisions of this Article and Article 49C to the same extent as any other 15
	118	+	meat food product. 16
	119	+	…." 17
	120	+	SECTION 1.(b) Article 49B of Chapter 106 of the General Statutes is amended by 18
	121	+	adding a new section to read: 19
	122	+	"§ 106-549.28A. Labeling of manufactured-protein food products. 20
	123	+	(a) The label of any manufactured-protein food product that contains an identifying meat 21
	124	+	term shall also contain in at least 20-point font or the size of the surrounding type, whichever is 22
	125	+	greater, and in close proximity to the name of the product, an appropriate qualifying term. 23
	126	+	(b) A manufactured-protein food product that does not meet the requirements of this 24
	127	+	section shall be deemed misbranded for purposes of this Article." 25
	128	+	SECTION 1.(c) G.S. 106-549.51 reads as rewritten: 26
	129	+	"§ 106-549.51. Definitions. 27
	130	+	For purposes of this Article, the following terms shall have the meanings stated below: 28
179	131		… 29
180		-	(~~24a~~) "~~Plant-protein~~ food product" means a food product having one or more 30
	132	+	(4a) "Cell-cultured food product" means a food product having one or more 30
181	133		sensory attributes that resemble a type of tissue originating from poultry but 31
182	134		that, in lieu of being derived from meat processing, is derived from 32
183		-	manufacturing plant or fungus parts. 33
184		-	… 34
185		-	(26) "Poultry product" means any poultry carcass, or part thereof; or any product 35
186		-	which is made wholly or in part from any poultry carcass or part thereof, or 36
187		-	any cell-cultured food product made from cells of poultry, excepting products 37
188		-	which contain poultry ingredients only in a relatively small proportion or 38
189		-	historically have not been considered by consumers as products of the poultry 39
190		-	food industry, and which are exempted by the Board from definition as a 40
191		-	poultry product under such conditions as the Board may prescribe to assure 41
192		-	that the poultry ingredients in such products are not adulterated and that such 42
193		-	products are not represented as poultry products. 43
194		-	… 44
195		-	(28a) "Qualifying term" means a word, compound word, or phrase that would 45
196		-	clearly disclose to a reasonable purchaser of poultry products that a food 46
197		-	product is not a poultry product. This includes the following terms: 47
198		-	"cell-cultured," "fake," "grown in a lab," "insect," "insect-based," 48
199		-	"insect-protein," "lab-created," "lab-grown," "meat free," "meatless," "plant," 49
200		-	"plant-based," "vegan," "vegetable," "vegetarian," or "veggie." 50
201		-	…." 51 General Assembly Of North Carolina Session 2025
202		-	House Bill 135-First Edition Page 5
203		-	SECTION 1.(d) G.S. 106-549.55 reads as rewritten: 1
204		-	"§ 106-549.55. Labeling standards; false and misleading labels.labels; labeling of 2
205		-	manufactured-protein food products. 3
206		-	… 4
207		-	(e) The label of any manufactured-protein food product that contains an identifying 5
208		-	poultry term shall also contain in at least 20-point font or the size of the surrounding type, 6
209		-	whichever is greater, and in close proximity to the name of the product, an appropriate qualifying 7
210		-	term." 8
211		-	SECTION 1.(e) This section becomes effective October 1, 2025, and applies to 9
212		-	products sold or offered for sale on or after that date. 10
213		-	11
214		-	PROHIBIT COMMUNITY COLLEGES, PUBLIC UNIVERSITIES, AND PUBLIC 12
215		-	SCHOOLS FROM PURCHASING MISBRANDED PRODUCTS AND 13
216		-	CELL-CULTURED PRODUCTS 14
217		-	SECTION 2.(a) G.S. 115C-12 is amended by adding a new subdivision to read: 15
218		-	"(50) Purchases of meat and poultry products. – The State Board of Education shall 16
219		-	establish policies to prevent the purchase of a food product that is any of the 17
220		-	following: 18
221		-	a. Misbranded as a meat or poultry product as prohibited in Articles 49B 19
222		-	and 49D of Chapter 106 of the General Statutes. 20
223		-	b. A cell-cultured food product as defined in G.S. 106-549.15 or 21
224		-	G.S. 106-549.51." 22
225		-	SECTION 2.(b) Part 2 of Article 17 of Chapter 115C of the General Statutes is 23
226		-	amended by adding a new section to read: 24
227		-	"§ 115C-264.6. Purchases of meat and poultry products. 25
228		-	Local boards of education shall establish policies to prevent the purchase of a food product 26
229		-	that is any of the following: 27
230		-	(1) Misbranded as a meat or poultry product as prohibited in Articles 49B and 28
231		-	49D of Chapter 106 of the General Statutes. 29
232		-	(2) A cell-cultured food product as defined in G.S. 106-549.15 or 30
233		-	G.S. 106-549.51." 31
234		-	SECTION 2.(c) G.S. 115C-218.75 is amended by adding a new subsection to read: 32
235		-	"(p) Purchases of Meat and Poultry Products. – A charter school shall establish policies to 33
236		-	prevent the purchase of a food product that is any of the following: 34
237		-	(1) Misbranded as a meat or poultry product as prohibited in Articles 49B and 35
238		-	49D of Chapter 106 of the General Statutes. 36
239		-	(2) A cell-cultured food product as defined in G.S. 106-549.15 or 37
240		-	G.S. 106-549.51." 38
241		-	SECTION 2.(d) G.S. 115C-238.66 is amended by adding a new subdivision to read: 39
242		-	"(23) Purchases of meat and poultry products. – A regional school shall establish 40
243		-	policies to prevent the purchase of a food product that is any of the following: 41
244		-	a. Misbranded as a meat or poultry product as prohibited in Articles 49B 42
245		-	and 49D of Chapter 106 of the General Statutes. 43
246		-	b. A cell-cultured food product as defined in G.S. 106-549.15 or 44
247		-	G.S. 106-549.51." 45
248		-	SECTION 2.(e) G.S. 116-239.8(b)(4)c. reads as rewritten: 46
249		-	"c. Food services. – The laboratory school shall strive to ensure that one 47
250		-	hundred percent (100%) muscadine grape juice is made available to 48
251		-	students as a part of the school's nutrition program or through the 49
252		-	operation of the school's vending facilities. The laboratory school shall 50
253		-	establish policies to prevent the purchase of a food product that is (i) 51 General Assembly Of North Carolina Session 2025
254		-	Page 6 House Bill 135-First Edition
255		-	misbranded as a meat or poultry product as prohibited in Articles 49B 1
256		-	and 49D of Chapter 106 of the General Statutes or (ii) cell-cultured 2
257		-	food product as defined in G.S. 106-549.15 or G.S. 106-549.51. Upon 3
258		-	request, the local school administrative unit in which the laboratory 4
259		-	school is located shall administer the National School Lunch Program 5
260		-	for the laboratory school in accordance with G.S. 115C-264." 6
261		-	SECTION 2.(f) G.S. 115D-20 reads as rewritten: 7
262		-	"§ 115D-20. Powers and duties of trustees. 8
263		-	The trustees of each institution shall constitute the local administrative board of such 9
264		-	institution, with such powers and duties as are provided in this Chapter and as are delegated to it 10
265		-	by the State Board of Community Colleges. The powers and duties of trustees shall include the 11
266		-	following: 12
	135	+	manufacturing cells, in which one or more stem cells are initially isolated from 33
	136	+	poultry, are grown in vitro, and may be manipulated, as part of a 34
	137	+	manufacturing operation. 35
	138	+	(4b) "Close proximity" means any of the following: 36
	139	+	a. Immediately before or after the name of the product. 37
	140	+	b. In the line of the label immediately before or after the line containing 38
	141	+	the name of the product. 39
	142	+	c. Within the same phrase or sentence containing the name of the 40
	143	+	product. 41
	144	+	… 42
	145	+	(10a) "Identifying poultry term" means any word or phrase that states, indicates, 43
	146	+	suggests, or describes a poultry product, regardless of whether the word or 44
	147	+	phrase is used individually, as a portmanteau, or as a compound word. This 45
	148	+	term includes all of the following: 46
	149	+	a. A common name for the species of the poultry subject to slaughter and 47
	150	+	processing, including chicken, poultry, or turkey. 48
	151	+	b. A common name for a characteristic of a species of the poultry subject 49
	152	+	to slaughter and processing based on age, breed, or sex. 50
	153	+	c. Meat, broiler, fryer, poulet, or yearling. 51 General Assembly Of North Carolina Session 2025
	154	+	Page 4 DRH30057-TQxf-1
	155	+	d. A common name used to describe a major cut of poultry slaughtered 1
	156	+	and processed, including a poultry product such as breast, drumstick, 2
	157	+	giblet, thigh, or wing; or the common name of an organ or offal, 3
	158	+	including gizzard, heart, liver, kidney, or tongue. 4
	159	+	e. Any other common name that a reasonable purchaser would 5
	160	+	immediately and exclusively associate with a poultry product prepared 6
	161	+	for sale in normal commercial channels. 7
	162	+	… 8
	163	+	(11a) "Insect-protein food product" means a food product having one or more 9
	164	+	sensory attributes that resemble a type of tissue originating from poultry but 10
	165	+	that, in lieu of being derived from meat processing, is derived from 11
	166	+	manufacturing insect parts. 12
267	167		… 13
268		-	(16) To establish policies to prevent the purchase of a food product that is any of 14
269		-	the following: 15
	168	+	(16a) "Manufactured-protein food product" means a cell-cultured food product, 14
	169	+	insect-protein food product, or plant-protein food product. 15
	170	+	(17) "Misbranded" shall apply to any poultry product under one or more of the 16
	171	+	following circumstances: 17
	172	+	a. If its labeling is false or misleading in any particular; 18
	173	+	b If it is offered for sale under the name of another food; 19
	174	+	c. If it is an imitation of another food, unless its label bears, in type of 20
	175	+	uniform size and prominence, the word "imitation" and immediately 21
	176	+	thereafter, the name of the food imitated; 22
	177	+	… 23
	178	+	m. If it is a manufactured-protein food product and it is not labeled in 24
	179	+	accordance with G.S. 106-549.55(e). 25
	180	+	… 26
	181	+	(24a) "Plant-protein food product" means a food product having one or more 27
	182	+	sensory attributes that resemble a type of tissue originating from poultry but 28
	183	+	that, in lieu of being derived from meat processing, is derived from 29
	184	+	manufacturing plant or fungus parts. 30
	185	+	… 31
	186	+	(26) "Poultry product" means any poultry carcass, or part thereof; or any product 32
	187	+	which is made wholly or in part from any poultry carcass or part thereof, or 33
	188	+	any cell-cultured food product made from cells of poultry, excepting products 34
	189	+	which contain poultry ingredients only in a relatively small proportion or 35
	190	+	historically have not been considered by consumers as products of the poultry 36
	191	+	food industry, and which are exempted by the Board from definition as a 37
	192	+	poultry product under such conditions as the Board may prescribe to assure 38
	193	+	that the poultry ingredients in such products are not adulterated and that such 39
	194	+	products are not represented as poultry products. 40
	195	+	… 41
	196	+	(28a) "Qualifying term" means a word, compound word, or phrase that would 42
	197	+	clearly disclose to a reasonable purchaser of poultry products that a food 43
	198	+	product is not a poultry product. This includes the following terms: 44
	199	+	"cell-cultured," "fake," "grown in a lab," "insect," "insect-based," 45
	200	+	"insect-protein," "lab-created," "lab-grown," "meat free," "meatless," "plant," 46
	201	+	"plant-based," "vegan," "vegetable," "vegetarian," or "veggie." 47
	202	+	…." 48
	203	+	SECTION 1.(d) G.S. 106-549.55 reads as rewritten: 49
	204	+	"§ 106-549.55. Labeling standards; false and misleading labels.labels; labeling of 50
	205	+	manufactured-protein food products. 51 General Assembly Of North Carolina Session 2025
	206	+	DRH30057-TQxf-1 Page 5
	207	+	… 1
	208	+	(e) The label of any manufactured-protein food product that contains an identifying 2
	209	+	poultry term shall also contain in at least 20-point font or the size of the surrounding type, 3
	210	+	whichever is greater, and in close proximity to the name of the product, an appropriate qualifying 4
	211	+	term." 5
	212	+	SECTION 1.(e) This section becomes effective October 1, 2025, and applies to 6
	213	+	products sold or offered for sale on or after that date. 7
	214	+	8
	215	+	PROHIBIT COMMUNITY COLLEGES, PUBLIC UNIVERSITIES, AND PUBLIC 9
	216	+	SCHOOLS FROM PURCHASING MISBRANDED PRODUCTS AND 10
	217	+	CELL-CULTURED PRODUCTS 11
	218	+	SECTION 2.(a) G.S. 115C-12 is amended by adding a new subdivision to read: 12
	219	+	"(50) Purchases of meat and poultry products. – The State Board of Education shall 13
	220	+	establish policies to prevent the purchase of a food product that is any of the 14
	221	+	following: 15
270	222		a. Misbranded as a meat or poultry product as prohibited in Articles 49B 16
271	223		and 49D of Chapter 106 of the General Statutes. 17
272	224		b. A cell-cultured food product as defined in G.S. 106-549.15 or 18
273	225		G.S. 106-549.51." 19
274		-	SECTION 2.(g) Part 5 of Article 1 of Chapter ~~116~~ of the General Statutes is ~~amended~~ 20
275		-	by adding a new section to read: 21
276		-	"§ ~~116-43~~.26. Purchases of meat and poultry products. 22
277		-	~~Each constituent institution~~ shall establish policies to prevent the purchase of a food product 23
	226	+	SECTION 2.(b) Part 2 of Article 17 of Chapter 115C of the General Statutes is 20
	227	+	amended by adding a new section to read: 21
	228	+	"§ 115C-264.6. Purchases of meat and poultry products. 22
	229	+	Local boards of education shall establish policies to prevent the purchase of a food product 23
278	230		that is any of the following: 24
279	231		(1) Misbranded as a meat or poultry product as prohibited in Articles 49B and 25
280	232		49D of Chapter 106 of the General Statutes. 26
281	233		(2) A cell-cultured food product as defined in G.S. 106-549.15 or 27
282	234		G.S. 106-549.51." 28
283		-	SECTION 2.(h) This section becomes effective October 1, 2025. Subsections (a), 29
284		-	(b), (c), (d), and (e) of this section apply beginning with the 2026-2027 school year. Subsections 30
285		-	(f) and (g) of this section apply beginning with the 2026-2027 academic year. 31
286		-	32
287		-	ESTABLISH AN ENVIRONMENTAL INVESTMENT ASSESSMENT ON CERTAIN 33
288		-	MEAT, POULTRY, EGG, AND DAIRY PRODUCTS AND ANALOGOUS PRODUCTS 34
289		-	SECTION 3.(a) Subchapter I of Chapter 105 of the General Statutes is amended by 35
290		-	adding a new Article to read: 36
291		-	"Article 5K. 37
292		-	"Animal Agriculture and Analogues Environmental Investment Assessment. 38
293		-	"§ 105-187.100. Definitions. 39
294		-	The following definitions apply in this Article: 40
295		-	(1) Agricultural food animal. – A domesticated animal belonging to the bovine, 41
296		-	caprine, ovine, or porcine species; a domesticated animal belonging to the 42
297		-	cervid species limited to fallow deer or red deer; and domestic fowl limited to 43
298		-	chickens or turkeys. 44
299		-	(2) Analogue product. – A food product derived by combining processed plant 45
300		-	products, insects, or fungi with food additives to approximate the texture, 46
301		-	flavor, appearance, or other aesthetic qualities or the chemical characteristics 47
302		-	of any specific type of animal agriculture product. This term includes 48
303		-	cell-cultured products. 49 General Assembly Of North Carolina Session 2025
304		-	House Bill 135-First Edition Page 7
305		-	(3) Animal agriculture product. – A food product that is a dairy product, egg, egg 1
306		-	product, meat, meat food product, poultry, or poultry product. This term does 2
307		-	not include an analogue product. 3
308		-	(4) Cell-cultured product. – A food product derived by harvesting animal cells 4
309		-	and artificially replicating those cells in a growth medium in a laboratory or 5
310		-	similar setting to produce tissue. 6
311		-	(5) Dairy product. – A product manufactured for human consumption that is 7
312		-	derived from the processing of milk. The term includes a fluid milk product. 8
313		-	(6) Dietary supplement. – As defined in G.S. 105-164.3(55). 9
314		-	(7) Egg. – As defined in 21 U.S.C. § 1033(g). 10
315		-	(8) Egg product. – As defined in 21 U.S.C. § 1033(f). 11
316		-	(9) Environmental improvement project. – A project that is intended to improve 12
317		-	water quality, increase soil health, reduce flood risks, reduce chemical inputs, 13
318		-	increase biodiversity, preserve farmland, or achieve similar ecological goals. 14
319		-	(10) Fluid milk product. – A milk product normally consumed in liquid form as a 15
320		-	beverage. 16
321		-	(11) Food product. – A perishable or nonperishable product that is fit for human 17
322		-	consumption. This term does not include dietary supplements. 18
323		-	(12) Identifying term. – Any word or phrase that states, indicates, or describes an 19
324		-	animal agriculture product, regardless of whether the word is used 20
325		-	individually, as a compound word, or as a portmanteau. 21
326		-	a. An "identifying term" includes all of the following: 22
327		-	1. A common name for the species of an agricultural food animal 23
328		-	subject to slaughter and processing, including a calf or cow, 24
329		-	chicken, goat or kid, hog or pig, poultry, lamb or sheep, or 25
330		-	turkey. 26
331		-	2. A common name for a characteristic of a species of an 27
332		-	agricultural food animal subject to slaughter and processing, 28
333		-	based on age, breed, or sex. 29
334		-	3. Any of the terms: beef or veal; egg; broiler, fryer, poulet, or 30
335		-	yearling; cabrito or chevon; lamb or mutton; meat; milk; or 31
336		-	pork. 32
337		-	4. A common name used to describe a major cut of a meat of an 33
338		-	agricultural food animal slaughtered and processed, including 34
339		-	a major meat cut specified in 9 C.F.R. § 317.344; a poultry 35
340		-	product such as breast, drumstick, giblet, thigh, or wing; or the 36
341		-	common name of an organ or offal, including gizzard, heart, 37
342		-	liver, kidney, or tongue. 38
343		-	5. Any other common name that a reasonable purchaser would 39
344		-	immediately associate with a dairy, egg, meat, or poultry 40
345		-	product prepared for sale in normal commercial channels, such 41
346		-	as bacon, baloney, bologna, bone, brat or bratwurst, brisket, 42
347		-	burger or hamburger, butt, butter, cheese, chop, chuck, cold 43
348		-	cut, cream, cutlet, filet, flat iron, frank or frankfurter, 44
349		-	half-and-half, ham, hock, hot dog, ice cream, jerky, liverwurst, 45
350		-	loin, London broil, lunch meat or lunchmeat, New York strip, 46
351		-	pepperoni, porterhouse, ribeye, roast, rib or sparerib, salami, 47
352		-	sausage, scramble, shank, sirloin, tenderloin, yogurt, or a 48
353		-	comparable word or phrase. 49 General Assembly Of North Carolina Session 2025
354		-	Page 8 House Bill 135-First Edition
355		-	b. An "identifying term" shall not include a product name that is 1
356		-	understood by consumers not to be a term for an animal agriculture 2
357		-	product or an analogue product. 3
358		-	(13) Label. – A display of written, printed, or graphic matter placed upon any 4
359		-	container storing a food product that is offered for sale or sold at retail, 5
360		-	regardless of whether the written, printed, or graphic matter is printed on the 6
361		-	container's packaging or a sticker affixed to the container. This does not 7
362		-	include a nutrition facts panel or ingredients list required by the United States 8
363		-	Food and Drug Administration. 9
364		-	(14) Meat. – As defined in 9 C.F.R. § 301.2. 10
365		-	(15) Meat food product. – Any product capable of use as human food that is made 11
366		-	wholly or in part from any meat or other portion of the carcass of any cattle, 12
367		-	sheep, swine, goat, bison, fallow deer, or red deer. For purposes of this section, 13
368		-	the following are considered meat food products: 14
369		-	a. Primal and subprimal cuts of meat. 15
370		-	b. Ground meat. 16
371		-	c. Sliced deli meat. 17
372		-	d. Sausage. 18
373		-	e. Bacon. 19
374		-	f. Ham. 20
375		-	g. Jerky. 21
376		-	h. Corned beef. 22
377		-	i. Smoked parts. 23
378		-	j. Rendered fats. 24
379		-	k. Edible offal. 25
380		-	(16) Milk. – The lacteal secretion practically free from colostrum obtained by the 26
381		-	milking of one or more cows, goats, or other lactating animals. 27
382		-	(17) Poultry. – As defined in 21 U.S.C. § 453(e). 28
383		-	(18) Poultry product. – As defined in 21 U.S.C. § 453(f). For purposes of this 29
384		-	section, the following are considered poultry products: 30
385		-	a. Whole poultry. 31
386		-	b. Primal cuts of poultry. 32
387		-	c. Ground poultry. 33
388		-	d. Sliced deli poultry. 34
389		-	e. Sausage. 35
390		-	f. Bacon. 36
391		-	g. Jerky. 37
392		-	h. Smoked parts. 38
393		-	i. Rendered fats. 39
394		-	j. Edible offal. 40
395		-	(19) Prepared food. – As defined in G.S. 105-164.4L. 41
396		-	(20) Protein group. – The type of protein from which an animal agriculture product 42
397		-	was derived or which an analogue product approximates or is intended to 43
398		-	approximate. A meat food product or poultry product shall be classified based 44
399		-	on the animal from which the meat was derived, and an analogue to a meat 45
400		-	food product or poultry product shall be classified based on the specific animal 46
401		-	protein approximated or intended to be approximated. 47
402		-	(21) Trade associations. – All of the following organizations: 48
403		-	a. North Carolina Cattleman's Association. 49
404		-	b. North Carolina Dairy Producers Association. 50
405		-	c. North Carolina Deer and Elk Farmers Association. 51 General Assembly Of North Carolina Session 2025
406		-	House Bill 135-First Edition Page 9
407		-	d. North Carolina Egg Association. 1
408		-	e. North Carolina Pork Council. 2
409		-	f. North Carolina Poultry Federation. 3
410		-	g. North Carolina Sheep Producers Association. 4
411		-	"§ 105-187.101. Environmental investment assessment imposed. 5
412		-	(a) Levy and Rate. – An environmental investment assessment (EIA) of five cents (5¢) 6
413		-	is imposed on each item of an animal agriculture product or an analogue product sold at retail if 7
414		-	the article bears an identifying term on the product's label. For purposes of this Article, the term 8
415		-	"item" refers to an item that is identified by a universal product code or other identifier 9
416		-	representing the item and that is used to retrieve the sales price of the item. 10
417		-	(b) Environmental Investment Assessment – The EIA imposed by this Article is intended 11
418		-	to be passed on to the purchaser of an item to which the EIA is imposed and borne by the 12
419		-	purchaser instead of by the retailer. A retailer must collect the EIA due on an item when sold at 13
420		-	retail. A retailer must record the protein group to which any animal agriculture product or 14
421		-	analogue product belongs and report this information to the Department of Revenue when it 15
422		-	remits the collected EIAs to the Department. If the retailer cannot determine the protein group to 16
423		-	which an animal agriculture product or analogue product belongs, the retailer shall consult with 17
424		-	the trade association with which the product would be most closely identified. The trade 18
425		-	association shall make the determination of whether the product should be subject to the 19
426		-	assessment and notify the Department. 20
427		-	(c) The retailer may retain one percent (1%) of the gross proceeds of the EIAs it collects 21
428		-	for the retailer's administrative costs. The EIA is a debt from the purchaser to the retailer until 22
429		-	paid and is recoverable at law by the retailer in the same manner as other debts. A retailer is 23
430		-	considered to act as a trustee on behalf of the State when it collects the EIA from the purchaser 24
431		-	on an applicable sale. The EIA must be stated and charged separately on the invoices or other 25
432		-	documents of the retailer given to the purchaser at the time of the sale except for either of the 26
433		-	following: 27
434		-	(1) Vending machine sales. 28
435		-	(2) Where a retailer displays a statement indicating the sales price includes the 29
436		-	tax. 30
437		-	"§ 105-187.102. Administration. 31
438		-	Except as otherwise provided in this Article, the EIA imposed by this Article shall be 32
439		-	collected and administered in the same manner as the State sales and use taxes imposed by Article 33
440		-	5 of this Chapter. The provisions of Article 9 of this Chapter that are not inconsistent with this 34
441		-	Article, including administration, auditing, making returns, promulgation of rules and regulations 35
442		-	by the Secretary, additional taxes, assessments and assessment procedure, imposition and 36
443		-	collection of taxes and the lien thereof, and penalties, are made a part of this Article and shall be 37
444		-	applicable thereto. 38
445		-	"§ 105-187.103. Exemptions and refunds. 39
446		-	(a) The EIA imposed by this Article does not apply to any of the following: 40
447		-	(1) Sales the State cannot constitutionally tax. 41
448		-	(2) Products of a farm sold in their original state by the producer of the products 42
449		-	if the producer is not primarily a retail merchant. 43
450		-	(3) Prepared food. 44
451		-	(4) Products containing ingredients from more than one protein group. 45
452		-	(5) Meat food products or poultry products with a nonmeat or nonpoultry 46
453		-	component other than seasoning, brine solution, or vinegar, or analogue 47
454		-	products to such meat food products or poultry products. 48
455		-	(b) Except as otherwise provided in this section, the exemptions and refunds allowed in 49
456		-	Article 5 of this Chapter do not apply to sales of items subject to assessment under this Article. 50
457		-	"§ 105-187.104. Use of EIA proceeds. 51 General Assembly Of North Carolina Session 2025
458		-	Page 10 House Bill 135-First Edition
459		-	(a) Two percent (2%) of the net proceeds of the EIAs shall be retained by the Department 1
460		-	of Revenue for its administrative costs. 2
461		-	(b) Of the remaining funds, each quarter, the Secretary shall credit the net proceeds of 3
462		-	the EIAs collected under this Article to the trade associations proportionate to the amount of 4
463		-	funds collected from the sale of products in each protein group. 5
464		-	(c) Two percent (2%) of the funds credited to each trade association pursuant to this 6
465		-	section shall be used for the costs of administering the grant program authorized by this section. 7
466		-	The remainder of the funds credited to the trade associations may be used only to implement 8
467		-	environmental improvement projects on the farms of constituent members of the trade 9
468		-	associations. Each trade association shall develop (i) an application process by which constituent 10
469		-	members may apply for funds for environmental improvement projects and (ii) a process for 11
470		-	evaluating applications. In developing their processes, the trade associations shall consider the 12
471		-	size of the operations applying for funds and strive to award equal amounts of funding to small 13
472		-	and large operations. Any funds credited to the trade associations that are not awarded by a trade 14
473		-	association for 18 months shall be remitted to the Agricultural Development and Farmland 15
474		-	Preservation Trust Fund." 16
475		-	SECTION 3.(b) This section becomes effective October 1, 2025, and applies to 17
476		-	products sold on or after that date. 18
477		-	19
478		-	SEVERABILITY CLAUSE AND EFFECTIVE DATE 20
479		-	SECTION 4.(a) If any section or provision of this act is declared unconstitutional or 21
480		-	invalid by the courts, it does not affect the validity of this act as a whole or any part other than 22
481		-	the part declared to be unconstitutional or invalid. 23
482		-	SECTION 4.(b) Except as otherwise provided, this act becomes effective October 24
483		-	1, 2025. 25
	235	+	SECTION 2.(c) G.S. 115C-218.75 is amended by adding a new subsection to read: 29
	236	+	"(p) Purchases of Meat and Poultry Products. – A charter school shall establish policies to 30
	237	+	prevent the purchase of a food product that is any of the following: 31
	238	+	(1) Misbranded as a meat or poultry product as prohibited in Articles 49B and 32
	239	+	49D of Chapter 106 of the General Statutes. 33
	240	+	(2) A cell-cultured food product as defined in G.S. 106-549.15 or 34
	241	+	G.S. 106-549.51." 35
	242	+	SECTION 2.(d) G.S. 115C-238.66 is amended by adding a new subdivision to read: 36
	243	+	"(23) Purchases of meat and poultry products. – A regional school shall establish 37
	244	+	policies to prevent the purchase of a food product that is any of the following: 38
	245	+	a. Misbranded as a meat or poultry product as prohibited in Articles 49B 39
	246	+	and 49D of Chapter 106 of the General Statutes. 40
	247	+	b. A cell-cultured food product as defined in G.S. 106-549.15 or 41
	248	+	G.S. 106-549.51." 42
	249	+	SECTION 2.(e) G.S. 116-239.8(b)(4)c. reads as rewritten: 43
	250	+	"c. Food services. – The laboratory school shall strive to ensure that one 44
	251	+	hundred percent (100%) muscadine grape juice is made available to 45
	252	+	students as a part of the school's nutrition program or through the 46
	253	+	operation of the school's vending facilities. The laboratory school shall 47
	254	+	establish policies to prevent the purchase of a food product that is (i) 48
	255	+	misbranded as a meat or poultry product as prohibited in Articles 49B 49
	256	+	and 49D of Chapter 106 of the General Statutes or (ii) cell-cultured 50
	257	+	food product as defined in G.S. 106-549.15 or G.S. 106-549.51. Upon 51 General Assembly Of North Carolina Session 2025
	258	+	Page 6 DRH30057-TQxf-1
	259	+	request, the local school administrative unit in which the laboratory 1
	260	+	school is located shall administer the National School Lunch Program 2
	261	+	for the laboratory school in accordance with G.S. 115C-264." 3
	262	+	SECTION 2.(f) G.S. 115D-20 reads as rewritten: 4
	263	+	"§ 115D-20. Powers and duties of trustees. 5
	264	+	The trustees of each institution shall constitute the local administrative board of such 6
	265	+	institution, with such powers and duties as are provided in this Chapter and as are delegated to it 7
	266	+	by the State Board of Community Colleges. The powers and duties of trustees shall include the 8
	267	+	following: 9
	268	+	… 10
	269	+	(16) To establish policies to prevent the purchase of a food product that is any of 11
	270	+	the following: 12
	271	+	a. Misbranded as a meat or poultry product as prohibited in Articles 49B 13
	272	+	and 49D of Chapter 106 of the General Statutes. 14
	273	+	b. A cell-cultured food product as defined in G.S. 106-549.15 or 15
	274	+	G.S. 106-549.51." 16
	275	+	SECTION 2.(g) Part 5 of Article 1 of Chapter 116 of the General Statutes is amended 17
	276	+	by adding a new section to read: 18
	277	+	"§ 116-43.26. Purchases of meat and poultry products. 19
	278	+	Each constituent institution shall establish policies to prevent the purchase of a food product 20
	279	+	that is any of the following: 21
	280	+	(1) Misbranded as a meat or poultry product as prohibited in Articles 49B and 22
	281	+	49D of Chapter 106 of the General Statutes. 23
	282	+	(2) A cell-cultured food product as defined in G.S. 106-549.15 or 24
	283	+	G.S. 106-549.51." 25
	284	+	SECTION 2.(h) This section becomes effective October 1, 2025. Subsections (a), 26
	285	+	(b), (c), (d), and (e) of this section apply beginning with the 2026-2027 school year. Subsections 27
	286	+	(f) and (g) of this section apply beginning with the 2026-2027 academic year. 28
	287	+	29
	288	+	ESTABLISH AN ENVIRONMENTAL INVESTMENT ASSESSMENT O N CERTAIN 30
	289	+	MEAT, POULTRY, EGG, AND DAIRY PRODUCTS AND ANALOGOUS PRODUCTS 31
	290	+	SECTION 3.(a) Subchapter I of Chapter 105 of the General Statutes is amended by 32
	291	+	adding a new Article to read: 33
	292	+	"Article 5K. 34
	293	+	"Animal Agriculture and Analogues Environmental Investment Assessment. 35
	294	+	"§ 105-187.100. Definitions. 36
	295	+	The following definitions apply in this Article: 37
	296	+	(1) Agricultural food animal. – A domesticated animal belonging to the bovine, 38
	297	+	caprine, ovine, or porcine species; a domesticated animal belonging to the 39
	298	+	cervid species limited to fallow deer or red deer; and domestic fowl limited to 40
	299	+	chickens or turkeys. 41
	300	+	(2) Analogue product. – A food product derived by combining processed plant 42
	301	+	products, insects, or fungi with food additives to approximate the texture, 43
	302	+	flavor, appearance, or other aesthetic qualities or the chemical characteristics 44
	303	+	of any specific type of animal agriculture product. This term includes 45
	304	+	cell-cultured products. 46
	305	+	(3) Animal agriculture product. – A food product that is a dairy product, egg, egg 47
	306	+	product, meat, meat food product, poultry, or poultry product. This term does 48
	307	+	not include an analogue product. 49 General Assembly Of North Carolina Session 2025
	308	+	DRH30057-TQxf-1 Page 7
	309	+	(4) Cell-cultured product. – A food product derived by harvesting animal cells 1
	310	+	and artificially replicating those cells in a growth medium in a laboratory or 2
	311	+	similar setting to produce tissue. 3
	312	+	(5) Dairy product. – A product manufactured for human consumption that is 4
	313	+	derived from the processing of milk. The term includes a fluid milk product. 5
	314	+	(6) Dietary supplement. – As defined in G.S. 105-164.3(55). 6
	315	+	(7) Egg. – As defined in 21 U.S.C. § 1033(g). 7
	316	+	(8) Egg product. – As defined in 21 U.S.C. § 1033(f). 8
	317	+	(9) Environmental improvement project. – A project that is intended to improve 9
	318	+	water quality, increase soil health, reduce flood risks, reduce chemical inputs, 10
	319	+	increase biodiversity, preserve farmland, or achieve similar ecological goals. 11
	320	+	(10) Fluid milk product. – A milk product normally consumed in liquid form as a 12
	321	+	beverage. 13
	322	+	(11) Food product. – A perishable or nonperishable product that is fit for human 14
	323	+	consumption. This term does not include dietary supplements. 15
	324	+	(12) Identifying term. – Any word or phrase that states, indicates, or describes an 16
	325	+	animal agriculture product, regardless of whether the word is used 17
	326	+	individually, as a compound word, or as a portmanteau. 18
	327	+	a. An "identifying term" includes all of the following: 19
	328	+	1. A common name for the species of an agricultural food animal 20
	329	+	subject to slaughter and processing, including a calf or cow, 21
	330	+	chicken, goat or kid, hog or pig, poultry, lamb or sheep, or 22
	331	+	turkey. 23
	332	+	2. A common name for a characteristic of a species of an 24
	333	+	agricultural food animal subject to slaughter and processing, 25
	334	+	based on age, breed, or sex. 26
	335	+	3. Any of the terms: beef or veal; egg; broiler, fryer, poulet, or 27
	336	+	yearling; cabrito or chevon; lamb or mutton; meat; milk; or 28
	337	+	pork. 29
	338	+	4. A common name used to describe a major cut of a meat of an 30
	339	+	agricultural food animal slaughtered and processed, including 31
	340	+	a major meat cut specified in 9 C.F.R. § 317.344; a poultry 32
	341	+	product such as breast, drumstick, giblet, thigh, or wing; or the 33
	342	+	common name of an organ or offal, including gizzard, heart, 34
	343	+	liver, kidney, or tongue. 35
	344	+	5. Any other common name that a reasonable purchaser would 36
	345	+	immediately associate with a dairy, egg, meat, or poultry 37
	346	+	product prepared for sale in normal commercial channels, such 38
	347	+	as bacon, baloney, bologna, bone, brat or bratwurst, brisket, 39
	348	+	burger or hamburger, butt, butter, cheese, chop, chuck, cold 40
	349	+	cut, cream, cutlet, filet, flat iron, frank or frankfurter, 41
	350	+	half-and-half, ham, hock, hot dog, ice cream, jerky, liverwurst, 42
	351	+	loin, London broil, lunch meat or lunchmeat, New York strip, 43
	352	+	pepperoni, porterhouse, ribeye, roast, rib or sparerib, salami, 44
	353	+	sausage, scramble, shank, sirloin, tenderloin, yogurt, or a 45
	354	+	comparable word or phrase. 46
	355	+	b. An "identifying term" shall not include a product name that is 47
	356	+	understood by consumers not to be a term for an animal agriculture 48
	357	+	product or an analogue product. 49
	358	+	(13) Label. – A display of written, printed, or graphic matter placed upon any 50
	359	+	container storing a food product that is offered for sale or sold at retail, 51 General Assembly Of North Carolina Session 2025
	360	+	Page 8 DRH30057-TQxf-1
	361	+	regardless of whether the written, printed, or graphic matter is printed on the 1
	362	+	container's packaging or a sticker affixed to the container. This does not 2
	363	+	include a nutrition facts panel or ingredients list required by the United States 3
	364	+	Food and Drug Administration. 4
	365	+	(14) Meat. – As defined in 9 C.F.R. § 301.2. 5
	366	+	(15) Meat food product. – Any product capable of use as human food that is made 6
	367	+	wholly or in part from any meat or other portion of the carcass of any cattle, 7
	368	+	sheep, swine, goat, bison, fallow deer, or red deer. For purposes of this section, 8
	369	+	the following are considered meat food products: 9
	370	+	a. Primal and subprimal cuts of meat. 10
	371	+	b. Ground meat. 11
	372	+	c. Sliced deli meat. 12
	373	+	d. Sausage. 13
	374	+	e. Bacon. 14
	375	+	f. Ham. 15
	376	+	g. Jerky. 16
	377	+	h. Corned beef. 17
	378	+	i. Smoked parts. 18
	379	+	j. Rendered fats. 19
	380	+	k. Edible offal. 20
	381	+	(16) Milk. – The lacteal secretion practically free from colostrum obtained by the 21
	382	+	milking of one or more cows, goats, or other lactating animals. 22
	383	+	(17) Poultry. – As defined in 21 U.S.C. § 453(e). 23
	384	+	(18) Poultry product. – As defined in 21 U.S.C. § 453(f). For purposes of this 24
	385	+	section, the following are considered poultry products: 25
	386	+	a. Whole poultry. 26
	387	+	b. Primal cuts of poultry. 27
	388	+	c. Ground poultry. 28
	389	+	d. Sliced deli poultry. 29
	390	+	e. Sausage. 30
	391	+	f. Bacon. 31
	392	+	g. Jerky. 32
	393	+	h. Smoked parts. 33
	394	+	i. Rendered fats. 34
	395	+	j. Edible offal. 35
	396	+	(19) Prepared food. – As defined in G.S. 105-164.4L. 36
	397	+	(20) Protein group. – The type of protein from which an animal agriculture product 37
	398	+	was derived or which an analogue product approximates or is intended to 38
	399	+	approximate. A meat food product or poultry product shall be classified based 39
	400	+	on the animal from which the meat was derived, and an analogue to a meat 40
	401	+	food product or poultry product shall be classified based on the specific animal 41
	402	+	protein approximated or intended to be approximated. 42
	403	+	(21) Trade associations. – All of the following organizations: 43
	404	+	a. North Carolina Cattleman's Association. 44
	405	+	b. North Carolina Dairy Producers Association. 45
	406	+	c. North Carolina Deer and Elk Farmers Association. 46
	407	+	d. North Carolina Egg Association. 47
	408	+	e. North Carolina Pork Council. 48
	409	+	f. North Carolina Poultry Federation. 49
	410	+	g. North Carolina Sheep Producers Association. 50
	411	+	"§ 105-187.101. Environmental investment assessment imposed. 51 General Assembly Of North Carolina Session 2025
	412	+	DRH30057-TQxf-1 Page 9
	413	+	(a) Levy and Rate. – An environmental investment assessment (EIA) of five cents (5¢) 1
	414	+	is imposed on each item of an animal agriculture product or an analogue product sold at retail if 2
	415	+	the article bears an identifying term on the product's label. For purposes of this Article, the term 3
	416	+	"item" refers to an item that is identified by a universal product code or other identifier 4
	417	+	representing the item and that is used to retrieve the sales price of the item. 5
	418	+	(b) Environmental Investment Assessment – The EIA imposed by this Article is intended 6
	419	+	to be passed on to the purchaser of an item to which the EIA is imposed and borne by the 7
	420	+	purchaser instead of by the retailer. A retailer must collect the EIA due on an item when sold at 8
	421	+	retail. A retailer must record the protein group to which any animal agriculture product or 9
	422	+	analogue product belongs and report this information to the Department of Revenue when it 10
	423	+	remits the collected EIAs to the Department. If the retailer cannot determine the protein group to 11
	424	+	which an animal agriculture product or analogue product belongs, the retailer shall consult with 12
	425	+	the trade association with which the product would be most closely identified. The trade 13
	426	+	association shall make the determination of whether the product should be subject to the 14
	427	+	assessment and notify the Department. 15
	428	+	(c) The retailer may retain one percent (1%) of the gross proceeds of the EIAs it collects 16
	429	+	for the retailer's administrative costs. The EIA is a debt from the purchaser to the retailer until 17
	430	+	paid and is recoverable at law by the retailer in the same manner as other debts. A retailer is 18
	431	+	considered to act as a trustee on behalf of the State when it collects the EIA from the purchaser 19
	432	+	on an applicable sale. The EIA must be stated and charged separately on the invoices or other 20
	433	+	documents of the retailer given to the purchaser at the time of the sale except for either of the 21
	434	+	following: 22
	435	+	(1) Vending machine sales. 23
	436	+	(2) Where a retailer displays a statement indicating the sales price includes the 24
	437	+	tax. 25
	438	+	"§ 105-187.102. Administration. 26
	439	+	Except as otherwise provided in this Article, the EIA imposed by this Article shall be 27
	440	+	collected and administered in the same manner as the State sales and use taxes imposed by Article 28
	441	+	5 of this Chapter. The provisions of Article 9 of this Chapter that are not inconsistent with this 29
	442	+	Article, including administration, auditing, making returns, promulgation of rules and regulations 30
	443	+	by the Secretary, additional taxes, assessments and assessment procedure, imposition and 31
	444	+	collection of taxes and the lien thereof, and penalties, are made a part of this Article and shall be 32
	445	+	applicable thereto. 33
	446	+	"§ 105-187.103. Exemptions and refunds. 34
	447	+	(a) The EIA imposed by this Article does not apply to any of the following: 35
	448	+	(1) Sales the State cannot constitutionally tax. 36
	449	+	(2) Products of a farm sold in their original state by the producer of the products 37
	450	+	if the producer is not primarily a retail merchant. 38
	451	+	(3) Prepared food. 39
	452	+	(4) Products containing ingredients from more than one protein group. 40
	453	+	(5) Meat food products or poultry products with a nonmeat or nonpoultry 41
	454	+	component other than seasoning, brine solution, or vinegar, or analogue 42
	455	+	products to such meat food products or poultry products. 43
	456	+	(b) Except as otherwise provided in this section, the exemptions and refunds allowed in 44
	457	+	Article 5 of this Chapter do not apply to sales of items subject to assessment under this Article. 45
	458	+	"§ 105-187.104. Use of EIA proceeds. 46
	459	+	(a) Two percent (2%) of the net proceeds of the EIAs shall be retained by the Department 47
	460	+	of Revenue for its administrative costs. 48
	461	+	(b) Of the remaining funds, each quarter, the Secretary shall credit the net proceeds of 49
	462	+	the EIAs collected under this Article to the trade associations proportionate to the amount of 50
	463	+	funds collected from the sale of products in each protein group. 51 General Assembly Of North Carolina Session 2025
	464	+	Page 10 DRH30057-TQxf-1
	465	+	(c) Two percent (2%) of the funds credited to each trade association pursuant to this 1
	466	+	section shall be used for the costs of administering the grant program authorized by this section. 2
	467	+	The remainder of the funds credited to the trade associations may be used only to implement 3
	468	+	environmental improvement projects on the farms of constituent members of the trade 4
	469	+	associations. Each trade association shall develop (i) an application process by which constituent 5
	470	+	members may apply for funds for environmental improvement projects and (ii) a process for 6
	471	+	evaluating applications. In developing their processes, the trade associations shall consider the 7
	472	+	size of the operations applying for funds and strive to award equal amounts of funding to small 8
	473	+	and large operations. Any funds credited to the trade associations that are not awarded by a trade 9
	474	+	association for 18 months shall be remitted to the Agricultural Development and Farmland 10
	475	+	Preservation Trust Fund." 11
	476	+	SECTION 3.(b) This section becomes effective October 1, 2025, and applies to 12
	477	+	products sold on or after that date. 13
	478	+	14
	479	+	SEVERABILITY CLAUSE AND EFFECTIVE DATE 15
	480	+	SECTION 4.(a) If any section or provision of this act is declared unconstitutional or 16
	481	+	invalid by the courts, it does not affect the validity of this act as a whole or any part other than 17
	482	+	the part declared to be unconstitutional or invalid. 18
	483	+	SECTION 4.(b) Except as otherwise provided, this act becomes effective October 19
	484	+	1, 2025. 20