North Carolina 2025-2026 Regular Session

North Carolina House Bill H425 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 425
	3	+	H D
	4	+	HOUSE BILL DRH10111-MLf-65
	5	+
5	6
6	7
7	8		Short Title: Protect Youth From Harms of Vaping & Nicotine. (Public)
8		-	Sponsors: Representatives Loftis, Campbell, Ross, and Willis (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Rules, Calendar, and Operations of the House
11		-	March 19, 2025
12		-	H425 -v-1
	9	+	Sponsors: Representative Loftis.
	10	+	Referred to:
	11	+
	12	+	DRH10111 -MLf-65
13	13		A BILL TO BE ENTITLED 1
14	14		AN ACT TO PROTECT THE YOUTH FROM THE HARMFUL EFFECTS OF VAPING AND 2
15	15		NICOTINE ADDICTION BY RAISING THE LEGAL SALES AGE OF TOBACCO 3
16	16		PRODUCTS TO AGE 21 AND TO REQUIRE A TOBACCO RETAIL SALES PERMIT. 4
17	17		The General Assembly of North Carolina enacts: 5
18	18		6
19	19		PART I. REQUIRE PERMIT FOR SALE OF TOBACCO PRODUCTS AND RESTRICT 7
20	20		PURCHASE OF TOBACCO PRODUCTS 8
21	21		SECTION 1. The General Statutes are amended by adding a new Chapter to read: 9
22	22		"Chapter 18D. 10
23	23		"Tobacco Products Retail Sales. 11
24	24		"Article 1. 12
25	25		"Definitions and Authority. 13
26	26		"§ 18D-100. Definitions. 14
27	27		(a) Unless the context requires otherwise, the following definitions apply in this Chapter: 15
28	28		(1) ALE Division. – As defined in G.S. 18B-101. 16
29	29		(2) Alternative nicotine product. – Any noncombustible product that contains 17
30	30		nicotine, whether natural or synthetic, but does not contain tobacco and is 18
31	31		intended for human consumption whether chewed, absorbed, dissolved, 19
32	32		ingested, or by other means. This term does not include a vapor product or any 20
33	33		product regulated by the United States Food and Drug Administration under 21
34	34		Chapter V of the federal Food, Drug, and Cosmetic Act. 22
35	35		(3) Commission. – As defined in G.S. 18B-101. 23
36	36		(4) Component. – A "component or part," as that term is defined in section 1140.3 24
37	37		of Title 21 of the Code of Federal Regulations, as amended from time to time. 25
38	38		This term includes cigarette wrapping papers, which has the same meaning as 26
39	39		the term "cigarette paper" in 26 U.S.C. § 5702(e). 27
40	40		(5) Consumable product. – As defined in G.S. 105-113.4. For purposes of this 28
41	41		Chapter, a consumable product does not contain any tobacco leaf. 29
42	42		(6) Consumer. – As defined in G.S. 105-113.4. 30
43	43		(7) Delivery sale. – As defined in G.S. 105-113.4. 31
44	44		(8) Delivery seller. – As defined in G.S. 105-113.4. 32
45	45		(9) Delivery seller permit. – A permit issued to a delivery seller pursuant to this 33
46	46		Chapter. 34
47		-	(10) Delivery service. – As defined in G.S. 105-113.4. 35 General Assembly Of North Carolina Session 2025
48		-	Page 2 House Bill 425-First Edition
	47	+	(10) Delivery service. – As defined in G.S. 105-113.4. 35
	48	+	H.B. 425
	49	+	Mar 17, 2025
	50	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	51	+	Page 2 DRH10111-MLf-65
49	52		(11) Distribute. – Sell, furnish, give, or provide tobacco products, including 1
50	53		tobacco product samples, to the ultimate consumer. 2
51	54		(12) E-liquid. – As defined in G.S. 14-401.18A. 3
52	55		(13) Packaging. – Has the same meaning as the term "package" in G.S. 105-113.4. 4
53	56		(14) Permit. – A permit issued to a retail dealer pursuant to this Chapter, unless the 5
54	57		context clearly requires otherwise. 6
55	58		(15) Person. – An individual, firm, partnership, association, corporation, limited 7
56	59		liability company, other organization or group, or other combination of 8
57	60		individuals acting as a unit. 9
58	61		(16) Premises. – A fixed permanent establishment, including all areas inside or 10
59	62		outside the licensed establishment, where the permittee has control through a 11
60	63		lease, deed, or other legal process. 12
61	64		(17) Proof of age. – A drivers license, a special identification card issued under 13
62	65		G.S. 20-37.7 or issued by the state agency of any other state authorized to 14
63	66		issue similar official state special identification cards for that state, a military 15
64	67		identification card, or a passport showing the purchaser's age to be at least the 16
65	68		required age for purchase and bearing a physical description of the person 17
66	69		named on the card reasonably describing the purchaser. 18
67	70		(18) Remote sale. – As defined in G.S. 105-113.4. 19
68	71		(19) Remote seller. – As defined in G.S. 105-113.4. 20
69	72		(20) Remote seller permit. – A permit issued to a remote seller pursuant to this 21
70	73		Chapter. 22
71	74		(21) Retail dealer. – As defined in G.S. 105-113.4. 23
72	75		(22) Retail seller. – A retail dealer who is not a delivery seller or remote seller. 24
73	76		(23) Retail seller permit. – A permit issued to a retail seller pursuant to this Chapter. 25
74	77		(24) Sale. – As defined in G.S. 105-113.4. 26
75	78		(25) Sample. – A tobacco product distributed to members of the general public at 27
76	79		no cost for the purpose of promoting the product. 28
77	80		(26) Secretary. – The Secretary of the Department of Revenue. 29
78	81		(27) Tobacco product. – Any product that contains tobacco or nicotine from any 30
79	82		source and is intended for human consumption. This term includes an 31
80	83		alternative nicotine product, vapor product, e-liquid, consumable product, 32
81	84		component of a tobacco product, or component of an alternative nicotine 33
82	85		product. 34
83	86		(28) Tobacco retail sales law. – Any statute or statutes in this Chapter, Article 2A 35
84	87		of Chapter 105 of the General Statutes, and the rules issued by the 36
85	88		Commission under the authority of this Chapter or the Department of Revenue 37
86	89		under the authority of Article 2A of Chapter 105 of the General Statutes. 38
87	90		(29) Tobacco retail sales permit. – A retail seller permit, a delivery seller permit, 39
88	91		or a remote seller permit issued to a retail dealer pursuant to this Chapter. 40
89	92		(30) Vapor product. – Any noncombustible product that employs a mechanical 41
90	93		heating element, battery, or electronic circuit regardless of shape or size and 42
91	94		that can be used to heat a consumable product or e-liquid contained in a vapor 43
92	95		cartridge. This term includes an electronic cigarette, electronic cigar, 44
93	96		electronic cigarillo, electronic pipe, vape pen, and e-liquid. This term does not 45
94	97		include any product regulated by the United States Food and Drug 46
95	98		Administration under Chapter V of the federal Food, Drug, and Cosmetic Act. 47
96	99		(b) Except as otherwise defined in this Chapter, the definitions in G.S. 105-113.4 apply 48
97	100		to this Chapter. 49
98	101		"§ 18D-101. Powers and duties of the Commission. 50
99	102		(a) The Commission shall have the authority to do all of the following: 51 General Assembly Of North Carolina Session 2025
100		-	~~House Bill 425-First Edition~~ Page 3
	103	+	DRH10111-MLf-65 Page 3
101	104		(1) Administer the tobacco retail sales laws pursuant to this Chapter. 1
102	105		(2) Provide for enforcement of the tobacco retail sales laws pursuant to this 2
103	106		Chapter, in conjunction with the ALE Division. 3
104	107		(3) Issue permits and impose sanctions against permittees in accordance with this 4
105	108		Chapter. 5
106	109		(b) The Commission shall have all other powers which may be reasonably implied from 6
107	110		the granting of the express powers listed in subsection (a) of this section, or which may be 7
108	111		incidental to, or convenient for, performing the duties given to the Commission. 8
109	112		"§ 18D-102. Inspection of licensed premises. 9
110	113		(a) To procure evidence of violations of the tobacco retail sales law, alcohol law 10
111	114		enforcement agents and employees of the Commission shall have authority to investigate the 11
112	115		operation of each licensed premises for which a tobacco retail sales permit has been issued, to 12
113	116		make inspections that include viewing the entire premises, and to examine the books and records 13
114	117		of the permittee. The inspection authorized by this section may be made at any time it reasonably 14
115	118		appears that someone is on the premises. 15
116	119		(b) Refusal by a permittee or by any employee of a permittee to allow officers or 16
117	120		employees of the Commission to enter the premises to make an inspection authorized by 17
118	121		subsection (a) of this section shall be cause for revocation, suspension, or other action against the 18
119	122		permit or the permittee as provided in G.S. 18D-103. It shall be a Class 2 misdemeanor for any 19
120	123		person to resist or obstruct an officer attempting to make a lawful inspection under this section. 20
121	124		"§ 18D-103. Administrative penalties. 21
122	125		(a) For any violation of the tobacco retail sales laws, the Commission may take any of 22
123	126		the following actions against a permittee: 23
124	127		(1) Suspend the permittee's permit for a specified period of time not longer than 24
125	128		three years. 25
126	129		(2) Revoke the permittee's permit. 26
127	130		(3) Fine the permittee up to five hundred dollars ($500.00) for the first violation, 27
128	131		up to seven hundred fifty dollars ($750.00) for the second violation within 28
129	132		three years, and up to one thousand dollars ($1,000) for the third violation 29
130	133		within three years of the first violation. 30
131	134		(4) Suspend the permittee's permit under subdivision (1) of this subsection and 31
132	135		impose a fine under subdivision (3) of this subsection. 32
133	136		(b) In any case in which the Commission is entitled to suspend or revoke a permit, the 33
134	137		Commission may accept from the permittee an offer in compromise to pay a penalty of not more 34
135	138		than five thousand dollars ($5,000). The Commission may either accept a compromise or revoke 35
136	139		a permit, but not both. The Commission may accept a compromise and suspend the permit in the 36
137	140		same case. 37
138	141		(c) The clear proceeds of fines and penalties assessed pursuant to this section shall be 38
139	142		remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 39
140	143		(d) Suspension or revocation of a permit is grounds for suspension or revocation of any 40
141	144		related State or local revenue license. 41
142	145		(e) Unless some other disposition is ordered by the Commission for a tobacco retail sales 42
143	146		law violation, revocation or suspension of a permit under subsection (a) of this section does not 43
144	147		include automatic revocation or suspension, respectively, of any ABC permit held by the same 44
145	148		permittee for the same establishment. 45
146	149		"§ 18D-104. Rules. 46
147	150		The Commission shall have authority to adopt, amend, and repeal rules to carry out the 47
148	151		provisions of this Chapter. Those rules shall become effective when adopted and filed pursuant 48
149	152		to the provisions of Chapter 150B of the General Statutes. 49
150	153		"§ 18D-105. Applicability of Administrative Procedure Act. 50 General Assembly Of North Carolina Session 2025
151		-	Page 4 ~~House Bill 425-First Edition~~
	154	+	Page 4 DRH10111-MLf-65
152	155		(a) A permit is a "license" within the meaning of G.S. 150B-2 and, except for a 1
153	156		confirmation pursuant to G.S. 18D-300(a)(7), a Commission action on issuance, suspension, or 2
154	157		revocation of a permit, other than a temporary permit issued under G.S. 18D-304, is a "contested 3
155	158		case" subject to the provisions of Chapter 150B of the General Statutes, except as provided in 4
156	159		this section. 5
157	160		(b) Hearings on permits shall be held within 100 miles, as best can be determined by the 6
158	161		Commission, of the county seat of the county in which the licensed business or proposed business 7
159	162		is located. The hearing may be held, however, at any place upon agreement of the Commission 8
160	163		and all other parties. 9
161	164		(c) In making a final decision in a contested case in which an issue is whether to deny an 10
162	165		application for a tobacco retail sales permit because the applicant is unsuitable, the Commission 11
163	166		may hear evidence of acts that occurred after the date the contested case hearing was held if the 12
164	167		evidence is admissible under G.S. 150B-29(a). New evidence heard under this subsection is not 13
165	168		grounds for reversal or remand under G.S. 150B-51(a). 14
166	169		"Article 2. 15
167	170		"Sales. 16
168	171		"§ 18D-200. Tobacco retail permit required. 17
169	172		(a) It is unlawful to sell a tobacco product to a consumer in this State without a permit 18
170	173		issued by the Commission in accordance with this Chapter. 19
171	174		(b) Notwithstanding subsection (a) of this section, no permit issued pursuant to this 20
172	175		Chapter shall be required by a delivery service making deliveries on behalf of another person 21
173	176		holding a permit issued pursuant to this Chapter. 22
174	177		"§ 18D-201. Disposition of seized tobacco products. 23
175	178		(a) A law enforcement officer who seizes tobacco products as evidence of a tobacco retail 24
176	179		sales law violation shall provide for the storage of those tobacco products until the 25
177	180		commencement of the trial or administrative hearing relating to the violation, unless some other 26
178	181		disposition is authorized under this section. 27
179	182		(b) After giving notice to each defendant, to any other known owner, and to the 28
180	183		Commission, a judge may order any of the following dispositions of tobacco products seized as 29
181	184		evidence of a tobacco retail sales law violation: 30
182	185		(1) The destruction of any tobacco products except that amount needed for 31
183	186		evidence at trial. 32
184	187		(2) The sale of any tobacco products other than any tobacco products needed for 33
185	188		evidence at trial, if the trial is likely to be delayed for more than 90 days, or if 34
186	189		the quantity or nature of the tobacco products is such that storage is 35
187	190		impractical or unduly expensive. 36
188	191		(3) The destruction of the tobacco products if storage or sale is not practical. 37
189	192		(4) Continued storage of the tobacco products. 38
190	193		(c) After the criminal charge is resolved, a judge may order any of the following 39
191	194		dispositions of seized tobacco products: 40
192	195		(1) If the owner or possessor of the tobacco products is found guilty of a criminal 41
193	196		charge relating to those tobacco products, the judge may order the sale or 42
194	197		destruction of any tobacco products that were held until trial. 43
195	198		(2) If the owner or possessor of the tobacco products is found not guilty, or if 44
196	199		charges are dismissed or otherwise resolved in favor of the owner or 45
197	200		possessor, the judge shall order the tobacco products returned to that owner or 46
198	201		possessor, except as provided in subdivision (3) of this subsection. 47
199	202		(3) If the owner or possessor of the tobacco products is found not guilty, or if 48
200	203		charges are otherwise resolved in favor of the owner or possessor, but 49
201	204		possession of the tobacco products by that owner or possessor would be 50
202	205		unlawful, the judge shall order the tobacco products either sold or destroyed. 51 General Assembly Of North Carolina Session 2025
203		-	~~House Bill 425-First Edition~~ Page 5
	206	+	DRH10111-MLf-65 Page 5
204	207		(4) If ownership of the tobacco products remains uncertain after trial or after the 1
205	208		charges have been dismissed, the judge may order the tobacco products held 2
206	209		for a specified time, until ownership of the tobacco products can be 3
207	210		determined. 4
208	211		(d) If tobacco products used as evidence in a criminal proceeding are also needed as 5
209	212		evidence at an administrative hearing, a judge shall not order any of the dispositions set out in 6
210	213		subsection (c) of this section but shall order the tobacco products held for the administrative 7
211	214		hearing and for a determination of final disposition by the Commission. The Commission may, 8
212	215		before or after an administrative hearing, order any of the dispositions authorized under 9
213	216		subsections (b) and (c) of this section. If no related criminal proceeding has commenced, the 10
214	217		Commission shall not order destruction of tobacco products until notice has been given to the 11
215	218		district attorney for the district where the tobacco products were seized or any violation of 12
216	219		tobacco retail sales laws related to the seizure of the tobacco products is likely to be prosecuted. 13
217	220		(e) The sale of tobacco products shall be by public auction to a tobacco products 14
218	221		manufacturer, a tobacco products wholesaler, or a tobacco retail sales permittee. 15
219	222		(f) An agency selling tobacco products seized under the provisions of this Chapter shall 16
220	223		keep the proceeds in a separate account until some other disposition is ordered by a judge or the 17
221	224		Commission. In a criminal proceeding, if the owner or possessor of the tobacco products is found 18
222	225		guilty of a violation relating to seizure of the tobacco products, if the owner or possessor is found 19
223	226		not guilty or the charge is dismissed or otherwise resolved in favor of the owner or possessor, 20
224	227		but the possession of the tobacco products by that owner or possessor would be unlawful, or if 21
225	228		the ownership of the tobacco products cannot be determined, the proceeds from the sale of those 22
226	229		tobacco products shall be paid to the school fund of the county in which the tobacco products 23
227	230		were seized. If the owner or possessor of tobacco products seized for violation of the tobacco 24
228	231		retail sales laws is found not guilty of criminal charges relating to the seizure of those tobacco 25
229	232		products or the charge is dismissed or otherwise resolved in favor of the owner or possessor, and 26
230	233		if possession of the tobacco products by that owner or possessor was lawful when the tobacco 27
231	234		products were seized, the proceeds from the sale of those tobacco products shall be paid to the 28
232	235		owner or possessor. The agency making the sale may deduct and retain from the amount to be 29
233	236		placed in the county school fund the costs of storing the seized tobacco products and of 30
234	237		conducting the sale but may not deduct those costs from the amount to be turned over to an owner 31
235	238		or possessor of the tobacco products. 32
236	239		(g) Any person who claims any of the following resulting from the seizure of tobacco 33
237	240		products may bring an action in the superior court of the county in which the tobacco products 34
238	241		were seized: 35
239	242		(1) To be the owner of tobacco products that are wrongfully held. 36
240	243		(2) To be the owner of tobacco products that are needed as evidence in another 37
241	244		proceeding. 38
242	245		(3) To be entitled to proceeds from a sale of tobacco products. 39
243	246		(4) To be entitled to restitution for tobacco products wrongfully destroyed. 40
244	247		"§ 18D-202. Forfeiture. 41
245	248		(a) Tobacco products possessed or sold in violation of the tobacco retail sales laws shall 42
246	249		be subject to forfeiture. 43
247	250		(b) Tobacco products which may be possessed lawfully shall not be subject to forfeiture 44
248	251		when they were used unlawfully by someone other than the owner of the tobacco products and 45
249	252		the owner did not consent to the unlawful use. 46
250	253		(c) If tobacco products subject to forfeiture have not already been seized as part of an 47
251	254		arrest or search, a law enforcement officer may apply to a judge for an order authorizing seizure 48
252	255		of that tobacco product. An order for seizure may be issued only after criminal process has been 49
253	256		issued for tobacco retail sales law violation in connection with that tobacco product. The order 50 General Assembly Of North Carolina Session 2025
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	257	+	Page 6 DRH10111-MLf-65
255	258		shall describe the tobacco product to be seized and shall state the facts establishing probable 1
256	259		cause to believe that the tobacco product is subject to forfeiture. 2
257	260		(d) A law enforcement officer seizing tobacco product subject to forfeiture shall provide 3
258	261		for its safe storage until trial. 4
259	262		(e) The presiding judge in a criminal proceeding for violation of tobacco retail sales laws 5
260	263		may take any of the following actions after resolution of a charge against the owner or possessor 6
261	264		of the tobacco product subject to forfeiture under this section: 7
262	265		(1) If the owner or possessor of the tobacco product is found guilty of a tobacco 8
263	266		retail sales offense, the judge may order the tobacco product forfeited. 9
264	267		(2) If the owner or possessor of the tobacco product is found not guilty, or if the 10
265	268		charge is dismissed or otherwise resolved in favor of the owner or possessor, 11
266	269		the judge shall order the tobacco product returned to the owner or possessor. 12
267	270		(3) If ownership of the tobacco product remains uncertain after trial, the judge 13
268	271		may order the tobacco product held for a specified time to determine 14
269	272		ownership. If the judge finds that ownership cannot be determined with 15
270	273		reasonable effort, the judge shall order the tobacco product forfeited. 16
271	274		(4) Regardless of the disposition of the charge, if the tobacco product is something 17
272	275		that may not be possessed lawfully, the judge shall order it forfeited. 18
273	276		(5) If the tobacco product is also needed as evidence at an administrative hearing, 19
274	277		the judge shall provide that the order does not go into effect until the 20
275	278		Commission determines that the tobacco product is no longer needed for the 21
276	279		administrative proceeding. 22
277	280		(f) A judge ordering forfeiture of the tobacco product may order any one of the following 23
278	281		dispositions: 24
279	282		(1) Sale at public auction to a tobacco products manufacturer, a tobacco products 25
280	283		wholesaler, or a tobacco retail sales permittee. 26
281	284		(2) Destruction, if possession of the tobacco product would be unlawful or if sale 27
282	285		or other disposition is not practical. 28
283	286		(g) If the forfeited tobacco product is sold, the proceeds of that sale shall be paid to the 29
284	287		school fund of the county in which the tobacco product was seized, except as provided in 30
285	288		subsection (h) of this section. Before placing the proceeds in the school fund, the agency making 31
286	289		the sale may deduct and retain the costs of storing the tobacco product and conducting the sale. 32
287	290		(h) At any time before forfeiture is ordered, an owner of the seized tobacco product or a 33
288	291		holder of a security interest in the seized tobacco product, other than the defendant, may apply 34
289	292		to protect the person's interest in the tobacco product. The application may be made to any judge 35
290	293		who has jurisdiction to try the offense with which the tobacco product is associated. If the judge 36
291	294		finds that the tobacco product owner or holder of a security interest did not consent to the 37
292	295		unlawful use of the tobacco product, and that the tobacco product may be possessed lawfully by 38
293	296		the owner or holder, the judge may order any of the following: 39
294	297		(1) That the tobacco product be returned to the owner, if it is not needed as 40
295	298		evidence at trial. 41
296	299		(2) That the tobacco product be returned to the owner following trial or other 42
297	300		resolution of the case. 43
298	301		(3) That, if the tobacco product is sold following trial, a specified sum be paid 44
299	302		from the proceeds of that sale to the holder of the security interest. 45
300	303		(i) When tobacco product is seized for forfeiture but the owner is unknown, the district 46
301	304		attorney may seek forfeiture under this section by an action in rem against the tobacco product. 47
302	305		If the owner is known and has been charged with an offense but is unavailable for trial, the district 48
303	306		attorney may seek forfeiture either by an action in rem against the tobacco product or by motion 49
304	307		in the criminal action. 50 General Assembly Of North Carolina Session 2025
305		-	~~House Bill 425-First Edition~~ Page 7
	308	+	DRH10111-MLf-65 Page 7
306	309		(j) Any owner of tobacco product seized for forfeiture may apply to a judge to have the 1
307	310		tobacco product returned to him if no criminal charge has been made in connection with that 2
308	311		tobacco product within a reasonable time after seizure. The judge may not order the return of the 3
309	312		tobacco product if possession by the owner would be unlawful. 4
310	313		"Article 3. 5
311	314		"Issuance of Permits. 6
312	315		"§ 18D-300. Qualifications for a permit. 7
313	316		(a) To be eligible to receive and to hold a tobacco retail sales permit, a person must satisfy 8
314	317		all of the following requirements: 9
315	318		(1) Be at least 21 years old. 10
316	319		(2) Be a resident of North Carolina, unless either of the following applies: 11
317	320		a. The person is an officer, director, or stockholder of a corporate 12
318	321		applicant or permittee and is not a manager or otherwise responsible 13
319	322		for the day-to-day operation of the business. 14
320	323		b. The person has executed a power of attorney designating a qualified 15
321	324		resident of this State to serve as attorney-in-fact for the purposes of 16
322	325		receiving service of process and managing the business for which 17
323	326		permits are sought. 18
324	327		(3) Not have been convicted of a felony within three years and, if convicted of a 19
325	328		felony before then, have had his or her citizenship restored. 20
326	329		(4) Not have been convicted of a tobacco product retail sales offense pursuant to 21
327	330		this Chapter within two years. 22
328	331		(5) Not have been convicted of a misdemeanor controlled substance offense 23
329	332		within two years. 24
330	333		(6) Not have had a tobacco retail sales permit revoked within three years, except 25
331	334		where the revocation was based solely on a permittee's failure to pay the 26
332	335		annual renewal fee required in G.S. 18D-302(d). 27
333	336		(7) Be current in filing all applicable tax returns to the State and in payment of all 28
334	337		taxes, interest, and penalties that are collectible under G.S. 105-241.22. 29
335	338		To avoid undue hardship, however, the Commission may decline to take action under 30
336	339		G.S. 18D-103 against a permittee who is in violation of subdivision (3), (4), or (5) of this 31
337	340		subsection. 32
338	341		(b) A person has been "convicted" for the purposes of subsection (a) of this section when 33
339	342		the person has been found guilty or has entered a plea of guilty or nolo contendere and judgment 34
340	343		has been entered. A felony conviction in another jurisdiction disqualifies a person from being 35
341	344		eligible to receive or hold a tobacco retail sales permit if the conduct would also constitute a 36
342	345		felony in North Carolina. A conviction of a tobacco retail sales law or misdemeanor drug offense 37
343	346		in another jurisdiction disqualifies a person from being eligible to receive or hold a tobacco retail 38
344	347		sales permit if the conduct would constitute an offense in North Carolina, unless the Commission 39
345	348		determines that under North Carolina procedure judgment would not have been entered under 40
346	349		the same circumstances. Revocation of a permit in another jurisdiction disqualifies a person if 41
347	350		the conduct would be grounds for revocation of a tobacco retail sales permit in North Carolina. 42
348	351		(c) For a permit to be issued to and held for a business, each of the following persons 43
349	352		associated with that business must qualify under subsection (a) of this section: 44
350	353		(1) The owner of a sole proprietorship. 45
351	354		(2) Each member of a firm, association, or general partnership. 46
352	355		(3) Each general partner in a limited partnership. 47
353	356		(4) Each manager and any member with a twenty-five percent (25%) or greater 48
354	357		interest in a limited liability company. 49
355	358		(5) Each officer, director, and owner of twenty-five percent (25%) or more of the 50
356	359		stock of a corporation except that the requirement of subdivision (1) of 51 General Assembly Of North Carolina Session 2025
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358	361		subsection (a) of this section does not apply to the officer, director, or 1
359	362		stockholder unless he or she is a manager or is otherwise responsible for the 2
360	363		day-to-day operation of the business. 3
361	364		(6) The manager of an establishment operated by a corporation. 4
362	365		(7) Any manager who has been empowered as attorney-in-fact for a nonresident 5
363	366		individual or partnership. 6
364	367		(8) Any manager or person otherwise responsible for the day-to-day operation of 7
365	368		the business, if none of the persons listed in subdivisions (1) through (7) of 8
366	369		this subsection are a manager or person otherwise responsible for the 9
367	370		day-to-day operation of the business. 10
368	371		(d) Upon request of the Commission, the Department of Revenue shall provide 11
369	372		information to the Commission to confirm a person's compliance with subdivision (7) of 12
370	373		subsection (a) of this section. If the Department of Revenue notifies the Commission that a person 13
371	374		is not in compliance, then the Commission may not issue or renew the person's permit until the 14
372	375		Commission receives notice from the Department of Revenue that the person is in compliance. 15
373	376		The requirement to pay all taxes, interest, and penalties may be satisfied by an operative 16
374	377		agreement under G.S. 105-237 covering any amounts that are collectible under G.S. 105-241.22. 17
375	378		Chapter 150B of the General Statutes does not apply to a Commission action on issuance, 18
376	379		suspension, or revocation of a tobacco retail sales permit under subdivision (7) of subsection (a) 19
377	380		of this section. 20
378	381		"§ 18D-301. Issuance of permits. 21
379	382		(a) All tobacco retail sales permits shall be issued by the Commission. 22
380	383		(b) Before issuing a permit, the Commission shall be satisfied that the applicant is a 23
381	384		suitable person to hold a tobacco retail sales permit and that the location is a suitable place to 24
382	385		hold the permit for which the applicant has applied. Factors the Commission shall consider in 25
383	386		determining whether the applicant and the business location are suitable are all of the following: 26
384	387		(1) The reputation, character, and criminal record of the applicant. 27
385	388		(2) Any other evidence that would tend to show whether the applicant would 28
386	389		comply with the tobacco retail sales laws. 29
387	390		(3) Whether the operation of the retail seller permit applicant's business at that 30
388	391		location would be detrimental to the neighborhood, including evidence 31
389	392		admissible under G.S. 150B-29(a) of any of the following: 32
390	393		a. Past revocations, suspensions, and violations of ABC laws by prior 33
391	394		permittees related to or associated with the applicant, or a business 34
392	395		with which the applicant is associated, within the immediate preceding 35
393	396		12-month period at this location. 36
394	397		b. Evidence of illegal drug activity on or about the licensed premises. 37
395	398		c. Evidence of fighting, disorderly conduct, and other dangerous 38
396	399		activities on or about the licensed premises. 39
397	400		(c) The Commission shall have the sole power, in its discretion, to determine the 40
398	401		suitability and qualifications of an applicant for a permit. The Commission shall also have the 41
399	402		authority to determine the suitability of the location to which the permit may be issued. 42
400	403		"§ 18D-302. Application for permit; fees. 43
401	404		(a) An application for a permit shall be on a form prescribed by the Commission and shall 44
402	405		be notarized in accordance with Chapter 10B of the General Statutes. Each person required to 45
403	406		qualify under G.S. 18D-300(c) shall sign and swear to the application and submit a full set of 46
404	407		fingerprints with the application. 47
405	408		(b) Before issuing a new permit, the Commission, with the assistance of the ALE 48
406	409		Division, shall investigate the applicant and, for a retail seller permit, the premises for which the 49
407	410		permit is requested. An applicant shall cooperate fully with the investigation. The State Bureau 50
408	411		of Investigation may provide a criminal record check to the ALE Division for a person who has 51 General Assembly Of North Carolina Session 2025
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410	413		applied for a permit through the Commission. The ALE Division shall provide to the State Bureau 1
411	414		of Investigation, along with the request, the fingerprints of the applicant, any additional 2
412	415		information required by the State Bureau of Investigation, and a form signed by the applicant 3
413	416		consenting to the check of the criminal record and to the use of the fingerprints and other 4
414	417		identifying information required by the State or national repositories. The applicant's fingerprints 5
415	418		shall be forwarded to the State Bureau of Investigation for a search of the State's criminal history 6
416	419		record file, and the State Bureau of Investigation shall forward a set of the fingerprints to the 7
417	420		Federal Bureau of Investigation for a national criminal history check. The ALE Division and the 8
418	421		Commission shall keep all information pursuant to this subsection privileged, in accordance with 9
419	422		applicable State law and federal guidelines, and the information shall be confidential and shall 10
420	423		not be a public record under Chapter 132 of the General Statutes. The State Bureau of 11
421	424		Investigation may charge each applicant a fee for conducting the checks of criminal history 12
422	425		records authorized by this subsection. 13
423	426		(c) Knowingly making a false statement in an application for a permit shall be grounds 14
424	427		for denying, suspending, revoking, or taking other action against the permit as provided in 15
425	428		G.S. 18D-103 and shall also be unlawful. 16
426	429		(d) An application for a permit shall be accompanied by payment of the following 17
427	430		application fee: 18
428	431		(1) Retail seller permit. – $400.00. 19
429	432		(2) Delivery seller permit. – $400.00. 20
430	433		(3) Remote seller permit. – $400.00. 21
431	434		(e) The fee required by subsection (d) of this section shall not be refunded. 22
432	435		(f) All fees collected by the Commission under this Chapter shall be remitted to the State 23
433	436		Treasurer for the General Fund. 24
434	437		"§ 18D-303. Duration of permit; renewal and transfer. 25
435	438		(a) Once issued, permits shall be valid for up to one year, from May 1 to April 30. 26
436	439		(b) Application for renewal of a permit shall be on a form provided by the Commission. 27
437	440		An application for renewal shall be accompanied by a renewal fee. The renewal fee shall be the 28
438	441		same amount as the application fee set in G.S. 18D-302. A renewal fee shall not be refundable. 29
439	442		(c) Notwithstanding subsection (a) of this section, the Commission shall not revoke a 30
440	443		permit for failure to pay a renewal application fee until June 1 of each year. No later than five 31
441	444		business days after April 30 of each year, the Commission shall notify permittees who have not 32
442	445		paid any required renewal application fees as of April 30. The Commission shall charge a late 33
443	446		fee of twenty-five percent (25%) of the renewal application fee for a permit for which the renewal 34
444	447		application fee is submitted after April 30. 35
445	448		(d) Change in Ownership. – 36
446	449		(1) Except as provided in subdivisions (2) and (2a) of this subsection, all permits 37
447	450		for an establishment shall automatically expire and shall be surrendered to the 38
448	451		Commission in any of the following circumstances: 39
449	452		a. Ownership of the establishment changes. 40
450	453		b. There is a change in the membership of the firm, association, or 41
451	454		partnership owning the establishment, involving the acquisition of a 42
452	455		twenty-five percent (25%) or greater share in the firm, association, or 43
453	456		partnership by someone who did not previously own a twenty-five 44
454	457		percent (25%) or greater share. 45
455	458		c. Twenty-five percent (25%) or more of the stock of the corporate 46
456	459		permittee owning the establishment is acquired by someone who did 47
457	460		not previously own twenty-five percent (25%) or more of the stock. 48
458	461		(2) Notwithstanding subsection (e) of this section, any person who through 49
459	462		contract, lease, management agreement, or change of ownership or transfer of 50
460	463		business as provided in subdivision (1) of this subsection becomes lawfully 51 General Assembly Of North Carolina Session 2025
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462	465		entitled to use and control of the premises of an establishment that holds 1
463	466		permits immediately prior to such change of ownership may continue to 2
464	467		operate the establishment, as successor to the prior permittee, to the same 3
465	468		extent as the predecessor permittee until the person receives a temporary or 4
466	469		new permit, including purchasing malt beverages, unfortified wine, or 5
467	470		fortified wine to be resold for on-premises or off-premises consumption, or 6
468	471		spirituous liquor for use in mixed beverages sold by the establishment, as 7
469	472		applicable under the permit, subject to the following limitations: 8
470	473		a. The person shall provide written or electronic notice to the 9
471	474		Commission of the name of the non-permitted person, the name and 10
472	475		address of the permitted establishment, and the date of the change in 11
473	476		ownership. The person may not operate the establishment as provided 12
474	477		in this subdivision until the person has provided notice to the 13
475	478		Commission. The Commission shall not require any additional 14
476	479		documentation besides the written or electronic notice to satisfy this 15
477	480		requirement. The prior permittee shall not be liable for any acts or 16
478	481		omissions of the non-permitted person operating the establishment. 17
479	482		Any violations of the tobacco retail sales law committed by the person 18
480	483		or any actions taken by the Commission to revoke or suspend the 19
481	484		permit based on the acts or omissions of the person operating the 20
482	485		establishment shall not preclude the prior permittee from receiving a 21
483	486		tobacco retail sales permit for a different establishment. 22
484	487		b. The person shall submit a new permit application to the Commission 23
485	488		within 60 days after the change of ownership. If the person does not 24
486	489		apply for a new permit within 60 days, all permits for the establishment 25
487	490		shall automatically expire and shall be surrendered to the Commission. 26
488	491		c. The 60-day period to file a new permit application shall only be 27
489	492		allowed once per 24 months for each establishment that holds a 28
490	493		tobacco retail sales permit, unless the establishment requests and the 29
491	494		Commission grants a waiver of the 24-month requirement. The 30
492	495		Commission shall grant a waiver of the 24-month requirement if it 31
493	496		determines that the public health, safety, and welfare would not be 32
494	497		harmed by granting the waiver. 33
495	498		d. This subdivision shall apply only to establishments that hold tobacco 34
496	499		retail sales permits that are in good standing and that have not been 35
497	500		found responsible by the Commission or a court of competent 36
498	501		jurisdiction of a gambling, assault, disorderly conduct, prostitution, or 37
499	502		controlled substances violation within 12 months prior to the date the 38
500	503		non-permitted person becomes entitled to use and control of the 39
501	504		establishment. 40
502	505		e. The person shall be authorized to operate the establishment as 41
503	506		successor to the prior permittee to the same extent as the predecessor 42
504	507		permittee until the Commission either issues or denies the permit 43
505	508		application submitted pursuant to sub-subdivision b. of this 44
506	509		subdivision. 45
507	510		(2a) The transfer by a person of any ownership interest to a revocable or 46
508	511		irrevocable trust established by the person shall not constitute a change in 47
509	512		ownership for purposes of subdivision (1) of this subsection if the person 48
510	513		transferring the ownership interest to the trust continues to operate the 49
511	514		establishment. If the person who transferred the ownership interest ceases to 50
512	515		operate the establishment following the transfer of the ownership interest to 51 General Assembly Of North Carolina Session 2025
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514	517		the trust, this shall constitute a change in ownership for purposes of 1
515	518		subdivision (1) of this subsection. The trustee shall notify the Commission 2
516	519		within 30 days if the person who transferred the ownership interest ceases to 3
517	520		operate the establishment. 4
518	521		(e) A corporation holding a permit for an establishment for which the manager is required 5
519	522		to qualify as an applicant under G.S. 18D-300(c) shall, within 30 days after employing a new 6
520	523		manager, submit to the Commission an application for substitution of a manager. The application 7
521	524		shall be signed by the new manager, shall be on a form provided by the Commission, and shall 8
522	525		be accompanied by a fee of ten dollars ($10.00). The fee shall not be refundable. 9
523	526		(f) A permit issued pursuant to this Chapter may not be transferred from one person to 10
524	527		another or from one location to another. 11
525	528		(g) The Commission may issue duplicate permits for an establishment when the existing 12
526	529		valid permits have been lost or damaged. The request for duplicate permits shall be on a form 13
527	530		provided by the Commission, certified by the permittee and the ALE Division, and accompanied 14
528	531		by a fee of ten dollars ($10.00). 15
529	532		(h) The Commission may issue new permits to a permittee upon application and payment 16
530	533		of a fee of ten dollars ($10.00) for each location when the permittee's name or name of the 17
531	534		business is changed. 18
532	535		"§ 18D-304. Miscellaneous provisions concerning permits. 19
533	536		(a) The following apply to permits issued pursuant to this Chapter: 20
534	537		(1) A retail seller permit shall authorize the sale of tobacco products only in the 21
535	538		physical presence of the consumer on the fixed premises of the establishment 22
536	539		located in the State and named in the permit. A retail seller permit shall be 23
537	540		issued to the owner of the business conducted on the premises or to the 24
538	541		management company employed to independently manage and operate the 25
539	542		business. The Commission may determine if a management agreement 26
540	543		delegates sufficient managerial control and independence to a manager or 27
541	544		management company to require a retail seller permit to be issued to the 28
542	545		manager. 29
543	546		(2) A delivery seller permit shall authorize a delivery sale only, originating either 30
544	547		inside or outside of the State. A delivery seller permit shall be issued to the 31
545	548		owner of the business or to the management company employed to 32
546	549		independently manage and operate the business. The Commission may 33
547	550		determine if a management agreement delegates sufficient managerial control 34
548	551		and independence to a manager or management company to require a delivery 35
549	552		seller permit to be issued to the manager. 36
550	553		(3) A remote seller permit shall authorize a remote sale only, originating either 37
551	554		inside or outside of the State. A remote seller permit shall be issued to the 38
552	555		owner of the business or to the management company employed to 39
553	556		independently manage and operate the business. The Commission may 40
554	557		determine if a management agreement delegates sufficient managerial control 41
555	558		and independence to a manager or management company to require a remote 42
556	559		seller permit to be issued to the manager. 43
557	560		(b) Each retail seller permit that is held by an establishment shall be posted in a prominent 44
558	561		place on the premises. Each delivery seller or remote seller shall post its delivery seller or remote 45
559	562		seller permit number on any advertisement, the internet, or other online service or application a 46
560	563		customer may use to submit an order and on all invoices or receipts for tobacco products 47
561	564		delivered by mail or a delivery service. 48
562	565		(c) No tobacco retail sales permit shall be issued to a business on the campus or property 49
563	566		of a public school, college, or university. 50 General Assembly Of North Carolina Session 2025
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565	568		(d) A permit shall automatically expire and shall be surrendered to the Commission if the 1
566	569		person to whom it is issued does not commence the activity authorized by the permit within six 2
567	570		months of the date the permit is effective. Before the expiration of the six-month period, the 3
568	571		Commission may waive this provision in individual cases for good cause. 4
569	572		(e) Upon issuing a permit, the Commission shall send notice of the issuance, with the 5
570	573		name and address of the permittee and the establishment, to all of the following: 6
571	574		(1) The Department of Revenue. 7
572	575		(2) The Department of Health and Human Services, Division of Mental Health, 8
573	576		Developmental Disabilities, and Substance Use Services. 9
574	577		(3) The ALE Division. 10
575	578		"§ 18D-305. Temporary permits. 11
576	579		When an application has been received in proper form, with the required application fee, the 12
577	580		Commission may issue a temporary permit for any of the activities for which permits are 13
578	581		authorized under this Chapter. A temporary permit may be revoked summarily by the 14
579	582		Commission without complying with the provisions of Chapter 150B of the General Statutes. 15
580	583		Revocation of a temporary permit or withdrawal by the Commission of a pending application by 16
581	584		a permittee possessing a temporary permit shall be effective upon service of the notice of 17
582	585		revocation or withdrawal upon the permittee at either the permittee's residence or the address 18
583	586		given for the business in the permit application or upon the expiration of five business days after 19
584	587		the notice of the revocation or withdrawal has been mailed to the permittee at either the 20
585	588		permittee's residence or the address given for the business in the permit application. No further 21
586	589		notice shall be required. 22
587	590		"§ 18D-306. Allow electronic submission of payments and forms. 23
588	591		(a) The Commission shall make all forms required by the Commission to apply for and 24
589	592		receive a permit available on the Commission's website, and the Commission shall, to the extent 25
590	593		practicable, allow for the electronic submission of these forms. Any form required by the 26
591	594		Commission to apply for and receive a permit that requires a signature may be submitted with an 27
592	595		electronic signature in accordance with Article 40 of Chapter 66 of the General Statutes and 28
593	596		notarized in accordance with Chapter 10B of the General Statutes. 29
594	597		(b) The Commission shall accept electronic payments for any fee required under this 30
595	598		Chapter to receive a permit. For purposes of this subsection, the term "electronic payment" means 31
596	599		payment by charge card, credit card, debit card, or by electronic funds transfer as defined in 32
597	600		G.S. 105-228.90. 33
598	601		(c) The Commission may charge a fee to be used to cover costs incurred by the 34
599	602		Commission in processing forms electronically and accepting payments electronically. The fee 35
600	603		authorized under this subsection may not exceed five dollars ($5.00). 36
601	604		"§ 18D-307. Tobacco sales permits and ABC permits. 37
602	605		(a) Applications for permits under this Chapter may be filed simultaneously or in 38
603	606		conjunction with applications for ABC permits under Chapter 18B of the General Statutes and 39
604	607		may be combined by the Commission in a single application. 40
605	608		(b) The Commission may use, rely upon, or incorporate by reference any information an 41
606	609		applicant for a permit under this Chapter has submitted in conjunction with an ABC permit issued 42
607	610		pursuant to Chapter 18B of the General Statutes. 43
608	611		"Article 4. 44
609	612		"Retail Activities. 45
610	613		"§ 18D-400. Responsibilities of permittee. 46
611	614		(a) For purposes of this Chapter, a retail seller permittee shall be responsible for the entire 47
612	615		premises for which the permit is issued. The permittee shall keep the premises clean, well-lighted, 48
613	616		and orderly. 49
614	617		(b) For purposes of this Chapter, a permittee shall be responsible for the actions of all 50
615	618		employees of the business for which the permit is issued. 51 General Assembly Of North Carolina Session 2025
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617	620		(c) A permittee shall not knowingly employ in the sale or distribution of tobacco products 1
618	621		any person who has been a past permit holder under this Chapter whose permit had been revoked 2
619	622		within the last 18 months and who had been the permit holder at the location where the person 3
620	623		would be employed. 4
621	624		(d) An employee or agent of a retail seller shall demand proof of age from a prospective 5
622	625		purchaser of tobacco products before the tobacco product is released to the purchaser, if the 6
623	626		person has reasonable grounds to believe that the prospective purchaser is under 30 years of age. 7
624	627		(e) A delivery seller and remote seller shall do both of the following: 8
625	628		(1) Perform an age verification through an independent, third-party age 9
626	629		verification service that compares information available from public records 10
627	630		to the personal information entered by the individual during the ordering 11
628	631		process to establish that the individual ordering the tobacco products is 21 12
629	632		years of age or older. 13
630	633		(2) Use a method of mailing, shipping, or delivery that requires the signature of a 14
631	634		person at least 21 years of age before the tobacco product is released to the 15
632	635		purchaser. 16
633	636		(f) Retail sellers of tobacco products shall train their employees or agents in the 17
634	637		requirements of this Chapter, to include all of the following: 18
635	638		(1) Which products the retail dealer sells meet the definition of a tobacco product. 19
636	639		(2) The age requirements for purchasing tobacco products. 20
637	640		(3) Acceptable forms of identification. 21
638	641		(4) Methods to detect fake, altered, and imposter forms of identification. 22
639	642		(5) Penalties for sales to underage persons. 23
640	643		(6) Methods of identifying potentially underage persons and to prevent underage 24
641	644		sales. 25
642	645		(g) Retail dealers shall prominently display to the ultimate consumer the following 26
643	646		statement: "N.C. LAW STRICTLY PROHIBITS THE PURCHASE OF TOBACCO 27
644	647		PRODUCTS, ALTERNATIVE NICOTINE PRODUCTS , VAPOR PRODUCTS, AND THEIR 28
645	648		COMPONENTS BY PERSONS UNDER THE AGE OF 21. PROOF OF AGE REQUIRED. " as 29
646	649		follows: 30
647	650		(1) Retail sellers shall prominently display this required statement near the point 31
648	651		of sale on a sign with letters at least 5/8 of an inch high. 32
649	652		(2) Delivery sellers and remote sellers shall prominently display this required 33
650	653		statement on any advertisement, the internet, or other online service or 34
651	654		application a customer may use to submit an order and on all invoices or 35
652	655		receipts for tobacco products delivered by mail or a delivery service. 36
653	656		"§ 18D-401. Conduct on licensed premises. 37
654	657		(a) It shall be unlawful for a permittee or the permittee's agent or employee to knowingly 38
655	658		allow any of the following kinds of conduct to occur on the licensed premises: 39
656	659		(1) Any violation of this Chapter. 40
657	660		(2) Any fighting or other disorderly conduct that can be prevented without undue 41
658	661		danger to the permittee, the permittee's employees, or patrons. 42
659	662		(3) Any violation of the controlled substances, gambling, or prostitution statutes, 43
660	663		or any other unlawful acts. 44
661	664		(b) It shall be unlawful for a permittee to fail to superintend in person or through a 45
662	665		manager the business for which a permit is issued. 46
663	666		"§ 18D-402. Miscellaneous tobacco product sales provisions. 47
664	667		(a) A permittee shall not sell tobacco products through displays accessible to the public 48
665	668		without the assistance of a permittee's employee or agent other than in an establishment open 49
666	669		only to persons 21 years of age and older. 50
667	670		(b) It shall be unlawful for any person to do any of the following: 51 General Assembly Of North Carolina Session 2025
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669	672		(1) Produce or possess any false or facsimile permit, or for a permittee to display 1
670	673		any false or facsimile permit on the person's licensed premises. 2
671	674		(2) Refuse to surrender any permit to the Commission upon lawful demand of the 3
672	675		Commission or its agents. 4
673	676		(3) Offer tobacco products for sale in a vending machine. 5
674	677		(4) Distribute tobacco products not approved or authorized by the federal Food 6
675	678		and Drug Administration. 7
676	679		(5) Sell tobacco products other than in the manufacturer's or importer's original, 8
677	680		sealed, and unopened packaging that complies with all federal labeling 9
678	681		requirements. 10
679	682		(6) Distribute or cause to be distributed samples of tobacco products. 11
680	683		"Article 5. 12
681	684		"Tobacco Product Sales to Underage Persons. 13
682	685		"§ 18D-500. Sales to persons under the age of 21. 14
683	686		If any person shall sell, aid, assist, or abet any other person in selling tobacco products to any 15
684	687		person under the age of 21 years, or if any person shall purchase tobacco products on behalf of a 16
685	688		person under the age of 21 years, the person shall be guilty of a Class 2 misdemeanor; provided, 17
686	689		however, that it shall not be unlawful to sell tobacco products to an employee or agent of a 18
687	690		tobacco retail sales permittee under the age of 21 years when possession of the tobacco product 19
688	691		is required pursuant to a tobacco retail sales permit in the performance of that person's duties of 20
689	692		employment or contract. 21
690	693		"§ 18D-501. Purchase by persons under the age of 21. 22
691	694		(a) Except as provided in subsection (b) of this section, if any person under the age of 21 23
692	695		years purchases or accepts receipt, or attempts to purchase or accept receipt, of tobacco products, 24
693	696		the person shall commit an infraction and may be required by the court to complete a tobacco 25
694	697		education program. The Department of Health and Human Services shall maintain a list of 26
695	698		available programs on its website for use by the courts for this purpose. The listed programs must 27
696	699		be at least 60 minutes in length, free of charge, and educate youth on the health effects of tobacco 28
697	700		products and tobacco cessation in a manner conforming to medical evidence. The person shall 29
698	701		not be required to pay any fine or court costs. 30
699	702		(b) If a person under the age of 21 presents or offers to any person any purported proof 31
700	703		of age which is false, fraudulent, or not actually his or her own, for the purpose of purchasing or 32
701	704		receiving any tobacco product, the person shall be guilty of a Class 2 misdemeanor. 33
702	705		(c) It shall not be unlawful for an employee or agent of a tobacco retail sales permittee 34
703	706		under the age of 21 years to accept receipt of, sell, transport, possess, or dispense tobacco 35
704	707		products when required pursuant to a tobacco retail sales permit in the performance of that 36
705	708		person's duties of employment or contract, if the employment of the person for that purpose is 37
706	709		lawful under applicable youth employment statutes and Commission rules. 38
707	710		"§ 18D-502. Aiding or abetting a person under the age of 21 to purchase or receive tobacco 39
708	711		products. 40
709	712		(a) If any person less than 21 years of age shall send a person less than 21 years of age to 41
710	713		purchase, acquire, receive, or attempt to purchase, acquire, or receive tobacco products or if any 42
711	714		person less than 21 years of age shall aid or abet a person who is less than 21 years of age in 43
712	715		purchasing, acquiring, or receiving or attempting to purchase, acquire, or receive tobacco 44
713	716		products, the person shall commit an infraction and may be required by the court to complete a 45
714	717		tobacco education program. The Department of Health and Human Services shall maintain a list 46
715	718		of available programs on its website for use by the courts for this purpose. The listed programs 47
716	719		must be at least 60 minutes in length, free of charge, and educate youth on the health effects of 48
717	720		tobacco products and tobacco cessation in a manner conforming to medical evidence. The person 49
718	721		shall not be required to pay any fine or court costs. 50 General Assembly Of North Carolina Session 2025
719		-	~~House Bill 425-First Edition~~ Page 15
	722	+	DRH10111-MLf-65 Page 15
720	723		(b) If any person 21 years of age or older shall send a person less than 21 years of age to 1
721	724		purchase, acquire, receive, or attempt to purchase, acquire, or receive tobacco products, or if any 2
722	725		person 21 years of age or older shall aid or abet a person who is less than 21 years of age in 3
723	726		purchasing, acquiring, or receiving or attempting to purchase, acquire, or receive tobacco 4
724	727		products, the person shall be guilty of a Class 2 misdemeanor. 5
725	728		"§ 18D-503. Exceptions to violations of G.S. 18D-501 and G.S. 18D-502. 6
726	729		Notwithstanding G.S. 18D-501 and G.S. 18D-502, a person under the age of 21 may lawfully 7
727	730		be enlisted by any of the following: 8
728	731		(1) Law enforcement, including the Division of Alcohol Law Enforcement, to test 9
729	732		compliance if the testing is under the direct supervision of that law 10
730	733		enforcement department and written parental consent is provided. 11
731	734		(2) The Department of Health and Human Services, pursuant to a written plan 12
732	735		prepared by the Secretary of Health and Human Services, to use persons under 13
733	736		21 years of age in annual, random, unannounced inspections, provided that 14
734	737		prior written parental consent is given for the involvement of these persons 15
735	738		and that the inspections are conducted for the sole purpose of preparing a 16
736	739		scientifically and methodologically valid statistical study of the extent of 17
737	740		success the State has achieved in reducing the availability of tobacco products 18
738	741		to persons under the age of 21, and preparing any report to the extent required 19
739	742		by section 1926 of the federal Public Health Service Act (42 U.S.C. § 20
740	743		300x-26). 21
741	744		(3) A research program affiliated with an accredited community college, college, 22
742	745		or university located in this State to test compliance as part of a scientific 23
743	746		research study to further efforts in underage tobacco use prevention, provided 24
744	747		that prior written parental consent is given for persons under 18 years of age. 25
745	748		The scientific research study must be approved by an institutional review 26
746	749		board with jurisdiction to review the study and must comply with 45 C.F.R. § 27
747	750		46. The ALE Division and the Department of Health and Human Services 28
748	751		shall be provided a copy of the study protocol 30 calendar days before it is 29
749	752		presented to the institutional review board and given an opportunity to provide 30
750	753		comments regarding the proposed research protocol to the research 31
751	754		investigators. The research investigators shall provide any comments received 32
752	755		from the ALE Division and the Department of Health and Human Services to 33
753	756		the institutional review board for review prior to the rendering of a decision 34
754	757		on the scientific research study application. A person shall not be guilty of a 35
755	758		violation of this Article when the act in question arises as part of a test of 36
756	759		compliance in a scientific research study pursuant to this subdivision. A 37
757	760		permittee shall not be in violation of this Article or subject to any 38
758	761		administrative penalty when the act in question arises as part of a test of 39
759	762		compliance in a scientific research study pursuant to this subdivision. 40
760	763		"§ 18D-504. Defense to underage sale. 41
761	764		It shall be a defense to a violation of G.S. 18D-500 if the seller does any of the following: 42
762	765		(1) Shows that the purchaser produced a drivers license, a special identification 43
763	766		card issued under G.S. 20-37.7 or issued by the state agency of any other state 44
764	767		authorized to issue similar official state special identification cards for that 45
765	768		state, a military identification card, or a passport, showing the person's age to 46
766	769		be at least the required age for purchase and bearing a physical description of 47
767	770		the person named on the card reasonably describing the purchaser. 48
768	771		(2) Produces evidence of other facts that reasonably indicated at the time of sale 49
769	772		that the purchaser was at least the required age. 50 General Assembly Of North Carolina Session 2025
770		-	Page 16 ~~House Bill 425-First Edition~~
	773	+	Page 16 DRH10111-MLf-65
771	774		(3) Shows that at the time of purchase, the purchaser utilized a biometric 1
772	775		identification system that demonstrated (i) the purchaser's age to be at least 2
773	776		the required age for the purchase and (ii) the purchaser had previously 3
774	777		registered with the seller or seller's agent a drivers license, a special 4
775	778		identification card issued under G.S. 20-37.7 or issued by the state agency of 5
776	779		any other state authorized to issue similar official state special identification 6
777	780		cards for that state, a military identification card, or a passport showing the 7
778	781		purchaser's date of birth and bearing a physical description of the person 8
779	782		named on the document. 9
780	783		"§ 18D-505. Deferred prosecution or conditional discharge. 10
781	784		Notwithstanding G.S. 15A-1341(a1) or G.S. 15A-1341(a4), any person charged with a 11
782	785		misdemeanor under this Article shall be qualified for deferred prosecution or a conditional 12
783	786		discharge pursuant to Article 82 of Chapter 15A of the General Statutes provided the defendant 13
784	787		has not previously been placed on probation for a violation of this Article and so states under 14
785	788		oath. 15
786	789		"Article 6. 16
787	790		"Miscellaneous. 17
788	791		"§ 18D-600. Restitution. 18
789	792		When a person is convicted of a violation of the tobacco retail sales laws, the court may order 19
790	793		the person to make restitution to any law enforcement agency for reasonable expenditures made 20
791	794		in purchasing tobacco products from the person or the person's agent as part of an investigation 21
792	795		leading to the person's conviction. 22
793	796		"§ 18D-601. Criminal penalty. 23
794	797		Unless a different punishment is otherwise expressly stated, any person who violates any 24
795	798		provisions of this Chapter shall be guilty of a Class 1 misdemeanor. In addition, the court may 25
796	799		impose the provisions of G.S. 18D-201, 18D-202, and 18D-600. 26
797	800		"Article 7. 27
798	801		"Certification and Directory of Vapor Products and Consumable Products. 28
799	802		"§ 18D-700. Certification and Directory of Vapor Products and Consumable Products. 29
800	803		(a) As required by Part 3 of Article 4 of Chapter 143B of the General Statutes, the 30
801	804		Secretary shall certify vapor products and consumable products eligible for retail sale in this State 31
802	805		and shall list them on a directory. 32
803	806		(b) The following penalties shall apply to violations of the certification requirements for 33
804	807		consumable products and vapor products required by Part 3 of Article 4 of Chapter 143B of the 34
805	808		General Statutes: 35
806	809		(1) Retailer, distributor, or wholesaler fines. – A retailer, distributor, or 36
807	810		wholesaler who offers for sale a consumable product or vapor product 37
808	811		intended for ultimate retail sale in this State that is not included in the directory 38
809	812		is subject to a warning with a mandatory reinspection of the retailer within 30 39
810	813		days of the violation of Part 3 of Article 4 of Chapter 143B of the General 40
811	814		Statutes. The following apply: 41
812	815		a. For a second violation of this type within a 12-month period, the fine 42
813	816		shall be at least five hundred dollars ($500.00) but not more than seven 43
814	817		hundred fifty dollars ($750.00) and, if licensed, the licensee's license 44
815	818		shall be suspended for 30 days. 45
816	819		b. For a third or subsequent violation of this type within a 12-month 46
817	820		period, the fine shall be at least one thousand dollars ($1,000) but not 47
818	821		more than one thousand five hundred dollars ($1,500) and, if licensed, 48
819	822		the licensee's license shall be revoked. 49
820	823		c. Upon a second or subsequent violation of this type, consumable 50
821	824		products or vapor products that are not on the directory as required by 51 General Assembly Of North Carolina Session 2025
822		-	~~House Bill 425-First Edition~~ Page 17
	825	+	DRH10111-MLf-65 Page 17
823	826		G.S. 143B-245.12, and are possessed by a retailer, distributor, or 1
824	827		wholesaler, shall be subject to seizure, forfeiture, and destruction. The 2
825	828		cost of such seizure, forfeiture, and destruction shall be borne by the 3
826	829		person from whom the products are confiscated, except that no 4
827	830		products may be seized from a consumer who has made a bona fide 5
828	831		purchase of such product. The Secretary may store and dispose of the 6
829	832		seized products as appropriate, in accordance with federal, State, and 7
830	833		local laws pertaining to storage and disposal of such products. 8
831	834		(2) Manufacturer penalties. – A manufacturer whose consumable products or 9
832	835		vapor products are not listed in the directory as required by G.S. 143B-245.12, 10
833	836		and who causes the products that are not listed to be sold for retail sale in 11
834	837		North Carolina, whether directly or through an importer, distributor, 12
835	838		wholesaler, retailer, or similar intermediary or intermediaries, is subject to a 13
836	839		civil penalty of ten thousand dollars ($10,000) for each individual product 14
837	840		offered for sale in violation of Part 3 of Article 4 of Chapter 143B of the 15
838	841		General Statutes until the offending product is removed from the market or 16
839	842		until the offending product is properly listed on the directory. In addition, any 17
840	843		manufacturer that falsely represents any information required by a 18
841	844		certification form shall be guilty of a misdemeanor for each false 19
842	845		representation. 20
843	846		(c) In an action to enforce this section, the State shall be entitled to recover costs, 21
844	847		including the costs of investigation, expert witness fees, and reasonable attorneys' fees. 22
845	848		(d) A repeated violation of the requirements of Part 3 of Article 4 of Chapter 143B of the 23
846	849		General Statutes shall constitute a deceptive trade practice under Chapter 75 of the General 24
847	850		Statutes." 25
848	851		26
849	852		PART II. CONFORMING CHANGES 27
850	853		SECTION 2.(a) G.S. 14-313 is repealed. 28
851	854		SECTION 2.(b) G.S. 7B-2508.1(2) reads as rewritten: 29
852	855		"(2) Criminal gang activity. – The commission of, attempted commission of, or 30
853	856		solicitation, coercion, or intimidation of another person to commit (i) any 31
854	857		offense under Article 5 of Chapter 90 of the General Statutes or (ii) any 32
855	858		offense under Chapter 14 of the General Statutes except Article 9, 22A, 40, 33
856	859		46, or 59 thereof, and further excepting G.S. 14-82, 14-145, 14-183, 14-184, 34
857	860		14-186, 14-190.9, 14-247, 14-248, or 14-313 or 14-248 thereof, and either of 35
858	861		the following conditions is met: 36
859	862		a. The offense is committed with the intent to benefit, promote, or further 37
860	863		the interests of a criminal gang or for the purposes of increasing a 38
861	864		person's own standing or position within a criminal gang. 39
862	865		b. The participants in the offense are identified as criminal gang members 40
863	866		acting individually or collectively to further any criminal purpose of a 41
864	867		criminal gang." 42
865	868		SECTION 2.(c) G.S. 14-50.16A(2) reads as rewritten: 43
866	869		"(2) Criminal gang activity. – The commission of, attempted commission of, or 44
867	870		solicitation, coercion, or intimidation of another person to commit (i) any 45
868	871		offense under Article 5 of Chapter 90 of the General Statutes or (ii) any 46
869	872		offense under Chapter 14 of the General Statutes except Article 9, 22A, 40, 47
870	873		46, or 59 thereof, and further excepting G.S. 14-82, 14-145, 14-183, 14-184, 48
871	874		14-186, 14-190.9, 14-247, 14-248, or 14-313 or 14-248 thereof, and either of 49
872	875		the following conditions is met: 50 General Assembly Of North Carolina Session 2025
873		-	Page 18 ~~House Bill 425-First Edition~~
	876	+	Page 18 DRH10111-MLf-65
874	877		a. The offense is committed with the intent to benefit, promote, or further 1
875	878		the interests of a criminal gang or for the purposes of increasing a 2
876	879		person's own standing or position within a criminal gang. 3
877	880		b. The participants in the offense are identified as criminal gang members 4
878	881		acting individually or collectively to further any criminal purpose of a 5
879	882		criminal gang." 6
880	883		SECTION 2.(d) G.S. 15A-145 reads as rewritten: 7
881	884		"§ 15A-145. Expunction of records for first offenders under the age of 18 at the time of 8
882	885		conviction of misdemeanor; expunction of certain other misdemeanors. 9
883	886		(a) Whenever any person who has not previously been convicted of any felony, or 10
884	887		misdemeanor other than a traffic violation, under the laws of the United States, the laws of this 11
885	888		State or any other state, (i) pleads guilty to or is guilty of a misdemeanor other than a traffic 12
886	889		violation, and the offense was committed before the person attained the age of 18 years, or (ii) 13
887	890		pleads guilty to or is guilty of a misdemeanor possession of alcohol pursuant to 14
888	891		G.S. 18B-302(b)(1), or the offense of the sale of a tobacco product to a person under the age of 15
889	892		21 years pursuant to G.S. 18D-500, and the offense was committed before the person attained 16
890	893		the age of 21 years, he the person may file a petition in the court of the county where he the 17
891	894		person was convicted for expunction of the misdemeanor from his the person's criminal record. 18
892	895		The petition cannot be filed earlier than: (i) two years after the date of the conviction, or (ii) the 19
893	896		completion of any period of probation, whichever occurs later, and the petition shall contain, but 20
894	897		not be limited to, the following: 21
895	898		(1) An affidavit by the petitioner that he the petitioner has been of good behavior 22
896	899		for the two-year period since the date of conviction of the misdemeanor in 23
897	900		question and has not been convicted of any felony, or misdemeanor other than 24
898	901		a traffic violation, under the laws of the United States or the laws of this State 25
899	902		or any other state. 26
900	903		(2) Verified affidavits of two persons who are not related to the petitioner or to 27
901	904		each other by blood or marriage, that they know the character and reputation 28
902	905		of the petitioner in the community in which he the petitioner lives and that his 29
903	906		the petitioner's character and reputation are good. 30
904	907		(3) A statement that the petition is a motion in the cause in the case wherein the 31
905	908		petitioner was convicted. 32
906	909		(4) Repealed by Session Laws 2010-174, s. 2, effective October 1, 2010, and 33
907	910		applicable to petitions for expunctions filed on or after that date. 34
908	911		(4a) An application on a form approved by the Administrative Office of the Courts 35
909	912		requesting and authorizing a name-based State and national criminal record 36
910	913		check by the State Bureau of Investigation using any information required by 37
911	914		the Administrative Office of the Courts to identify the individual and a search 38
912	915		of the confidential record of expunctions maintained by the Administrative 39
913	916		Office of the Courts. The application shall be filed with the clerk of superior 40
914	917		court. The clerk of superior court shall forward the application to the State 41
915	918		Bureau of Investigation and to the Administrative Office of the Courts, which 42
916	919		shall conduct the searches and report their findings to the court. 43
917	920		(5) An affidavit by the petitioner that no restitution orders or civil judgments 44
918	921		representing amounts ordered for restitution entered against him the petitioner 45
919	922		are outstanding. 46
920	923		The petition shall be served upon the district attorney of the court wherein the case was tried 47
921	924		resulting in conviction. The district attorney shall have 10 days thereafter in which to file any 48
922	925		objection thereto and shall be duly notified as to the date of the hearing of the petition. 49 General Assembly Of North Carolina Session 2025
923		-	~~House Bill 425-First Edition~~ Page 19
	926	+	DRH10111-MLf-65 Page 19
924	927		The judge to whom the petition is presented is authorized to call upon a probation officer for 1
925	928		any additional investigation or verification of the petitioner's conduct during the two-year period 2
926	929		that he the judge deems desirable. 3
927	930		… 4
928	931		(b) If the court, after hearing, finds that the petitioner had remained of good behavior and 5
929	932		been free of conviction of any felony or misdemeanor, other than a traffic violation, for two years 6
930	933		from the date of conviction of the misdemeanor in question, the petitioner has no outstanding 7
931	934		restitution orders or civil judgments representing amounts ordered for restitution entered against 8
932	935		him, and (i) petitioner was not 18 years old at the time of the offense in question, or (ii) petitioner 9
933	936		was not 21 years old at the time of the offense of possession of alcohol pursuant to 10
934	937		G.S. 18B-302(b)(1), or the offense of the sale of a tobacco product to a person under the age of 11
935	938		21 years pursuant to G.S. 18D-500, it shall order that such person the petitioner be restored, in 12
936	939		the contemplation of the law, to the status he the petitioner occupied before such arrest or 13
937	940		indictment or information. 14
938	941		(b1) No person as to whom such order has been entered shall be held thereafter under any 15
939	942		provision of any laws to be guilty of perjury or otherwise giving a false statement by reason of 16
940	943		his the person's failure to recite or acknowledge such arrest, or indictment, information, or trial, 17
941	944		or response to any inquiry made of him the person for any purpose. This subsection shall not 18
942	945		apply to a sentencing hearing when the person has been convicted of a subsequent criminal 19
943	946		offense. 20
944	947		…." 21
945	948		SECTION 2.(e) G.S. 15A-150(a)(6) reads as rewritten: 22
946	949		"(6) Persons granted a dismissal upon completion of a conditional discharge under 23
947	950		G.S. 14-50.29, 14-204, 14-277.8, 14-313(f), 15A-1341(a4), 18D-505, 90-96, 24
948	951		or 90-113.14." 25
949	952		SECTION 2.(f) G.S. 18B-203(a) reads as rewritten: 26
950	953		"§ 18B-203. Powers and duties of the Commission. 27
951	954		(a) Powers. – The Commission shall have authority to:to do all of the following: 28
952	955		(1) Administer the ABC laws;laws. 29
953	956		(2) Provide for enforcement of the ABC laws, in conjunction with the ALE 30
954	957		Division;Division. 31
955	958		(2a) Provide for the enforcement of the tobacco retail sales laws as set forth in 32
956	959		Chapter 18D of the General Statutes, in conjunction with the ALE Division. 33
957	960		(3) Set the prices of alcoholic beverages sold in local ABC stores as provided in 34
958	961		Article 8;8. 35
959	962		(4) Require reports and audits from local boards as provided in 36
960	963		G.S. 18B-205;G.S. 18B-205. 37
961	964		(5) Determine what brands of alcoholic beverages may be sold in this State;State. 38
962	965		(6) Contract for State ABC warehousing, as provided in 39
963	966		G.S. 18B-204;G.S. 18B-204. 40
964	967		(7) Dispose of damaged alcoholic beverages, as provided in 41
965	968		G.S. 18B-806;G.S. 18B-806. 42
966	969		(8) Remove for cause any member or employee of a local board;board. 43
967	970		(9) Supervise or disapprove purchasing by any local board and inspect all records 44
968	971		of purchases by local boards;boards. 45
969	972		(10) Approve or disapprove rules adopted by any local board;board. 46
970	973		(11) Approve or disapprove the opening and location of ABC stores, as provided 47
971	974		in Article 8;8. 48
972	975		(12) Issue ABC permits, and impose sanctions against permittees;permittees. 49
973	976		(12a) Issue tobacco retail sales permits and impose sanctions against permittees as 50
974	977		set forth in Chapter 18D of the General Statutes. 51 General Assembly Of North Carolina Session 2025
975		-	Page 20 ~~House Bill 425-First Edition~~
	978	+	Page 20 DRH10111-MLf-65
976	979		(13) Provide for the testing of alcoholic beverages, as provided in 1
977	980		G.S. 18B-206;G.S. 18B-206. 2
978	981		(14) Fix the amount of bailment charges and bailment surcharges to be assessed on 3
979	982		liquor shipped from a Commission warehouse;warehouse. 4
980	983		(15) Collect bailment charges and bailment surcharges from local boards;boards. 5
981	984		(16) Notwithstanding any law to the contrary, enter into contracts for design and 6
982	985		construction of a warehouse or warehouses and supervise work and materials 7
983	986		used in the construction, as provided in G.S. 18B-204;G.S. 18B-204. 8
984	987		… 9
985	988		(18) Provide for the distribution and posting of warning signs to local ABC boards 10
986	989		regarding the dangers of alcohol consumption during pregnancy as required 11
987	990		under G.S. 18B-808;G.S. 18B-808. 12
988	991		…." 13
989	992		SECTION 2.(g) G.S. 18B-500 reads as rewritten: 14
990	993		"§ 18B-500. Alcohol law-enforcement agents. 15
991	994		… 16
992	995		(b) Subject Matter Jurisdiction. – After taking the oath prescribed for a peace officer, an 17
993	996		alcohol law-enforcement agent shall have authority to arrest and take other investigatory and 18
994	997		enforcement actions for any criminal offense: 19
995	998		… 20
996	999		(2) Encountered or otherwise discovered while investigating or enforcing matters 21
997	1000		for the North Carolina Alcoholic Beverage Control Commission or the North 22
998	1001		Carolina Education Lottery Commission or encountered or otherwise 23
999	1002		discovered while investigating or enforcing the provisions of this Chapter, 24
1000	1003		Chapter 18C of the General Statutes, G.S. 14-313, Chapter 18D of the General 25
1001	1004		Statutes, or Parts 1 and 2 of Article 37 of Chapter 14 of the General Statutes. 26
1002	1005		(3) Encountered or otherwise discovered while carrying out any duty or function 27
1003	1006		assigned to the Division by law. 28
1004	1007		(4) Occurring in an agent's presence. 29
1005	1008		(5) When assisting another law enforcement agency. 30
1006	1009		… 31
1007	1010		(b2) Primary Responsibilities. – The primary responsibilities of an alcohol 32
1008	1011		law-enforcement agent are the enforcement of this Chapter, Chapter 18C of the General Statutes, 33
1009	1012		G.S. 14-313, Chapter 18D of the General Statutes, and Parts 1 and 2 of Article 37 of Chapter 14 34
1010	1013		of the General Statutes. 35
1011	1014		…." 36
1012	1015		SECTION 2.(h) Article 9 of Chapter 18B of the General Statutes is amended by 37
1013	1016		adding a new section to read: 38
1014	1017		"§ 18B-908. ABC permits and tobacco retail sales permits. 39
1015	1018		(a) Applications for permits under this Chapter may be filed simultaneously or in 40
1016	1019		conjunction with applications for tobacco retail sales permits under Chapter 18D of the General 41
1017	1020		Statutes and may be combined by the Commission in a single application. 42
1018	1021		(b) The Commission may use, rely upon, or incorporate by reference any information an 43
1019	1022		applicant for a permit under this Chapter has submitted in conjunction with a tobacco retail sales 44
1020	1023		permit issued pursuant to Chapter 18D of the General Statutes." 45
1021	1024		SECTION 2.(i) G.S. 75D-3(c)(1)b. reads as rewritten: 46
1022	1025		"b. Chapter 14 of the General Statutes of North Carolina except 47
1023	1026		Articles 9, 22A, 38, 40, 43, 46, 47, 59 thereof; and further 48
1024	1027		excepting G.S. Sections 14-78.1, 14-82, 14-86, 14-145, 49
1025	1028		14-146, 14-147, 14-177, 14-178, 14-179, 14-183, 14-184, 50 General Assembly Of North Carolina Session 2025
1026		-	~~House Bill 425-First Edition~~ Page 21
	1029	+	DRH10111-MLf-65 Page 21
1027	1030		14-186, 14-190.9, 14-195, 14-197, 14-201, 14-202, 14-247, 1
1028	1031		14-248, 14-313 and 14-248 thereof." 2
1029	1032		SECTION 2.(j) G.S. 105-113.4F(b)(2) reads as rewritten: 3
1030	1033		"(2) Comply with the age verification requirements in 4
1031	1034		G.S. 14-313(b2).G.S. 18D-400(e)." 5
1032	1035		SECTION 2.(k) G.S. 143B-245.10 reads as rewritten: 6
1033	1036		"Part 3. Certification and Directory of Vapor Products and Consumable Products. 7
1034	1037		"§ 143B-245.10. Definitions. 8
1035	1038		The following definitions apply throughout this Part: 9
1036	1039		(1) Alternative nicotine product. – As defined in 10
1037	1040		G.S. 14-313(a)(1).G.S. 18D-100. 11
1038	1041		(2) Consumable product. – As defined in G.S. 14-313(a)(1a).G.S. 18D-100. 12
1039	1042		(3) Distribute. – As defined in G.S. 14-313(a)(1b).G.S. 18D-100. 13
1040	1043		(4) FDA. – As defined in G.S. 14-313(a)(1c).The United States Food and Drug 14
1041	1044		Administration. 15
1042	1045		(5) Secretary. – The Secretary of the Department of Revenue. 16
1043	1046		(6) Timely Filed Premarket Tobacco Product Application. – As defined in 17
1044	1047		G.S. 14-313(a)(3c).An application pursuant to 21 U.S.C. § 387j for a vapor 18
1045	1048		product or consumable product containing nicotine derived from tobacco 19
1046	1049		marketed in the United States as of August 8, 2016, that was submitted to the 20
1047	1050		United States Food and Drug Administration on or before September 9, 2020, 21
1048	1051		and accepted for filing. 22
1049	1052		(7) Tobacco product. – As defined in G.S. 14-313(a)(4).G.S. 18D-100. 23
1050	1053		(8) Vapor product. – As defined in G.S. 14-313(a)(5).G.S. 18D-100." 24
1051	1054		SECTION 2.(l) G.S. 143B-245.11(a)(2) reads as rewritten: 25
1052	1055		"(2) The manufacturer submitted a Timely Filed Premarket Tobacco Product 26
1053	1056		Application as defined in G.S. 14-313(a)(3c) G.S. 143B-245.10 for the vapor 27
1054	1057		product or consumable product; and the application either remains under 28
1055	1058		review by the FDA or has received a denial order that has been and remains 29
1056	1059		stayed by the FDA or court order, rescinded by the FDA, or vacated by a 30
1057	1060		court." 31
1058	1061		SECTION 2.(m) G.S. 143B-245.14(a)(1) reads as rewritten: 32
1059	1062		"(1) A manufacturer not registered to do business in the State shall, as a condition 33
1060	1063		precedent to having its name or its products listed and retained in the directory, 34
1061	1064		appoint and continually engage without interruption a registered agent in this 35
1062	1065		State for service of process on whom all process and any action or proceeding 36
1063	1066		arising out of the enforcement of this Part or G.S. 14-313(g) and (h) 37
1064	1067		G.S. 18D-700(a) and (b) may be served. The manufacturer shall provide to the 38
1065	1068		Secretary the name, address, and telephone number of its agent for service of 39
1066	1069		process and shall provide any other information relating to its agent as may be 40
1067	1070		requested by the Secretary." 41
1068	1071		SECTION 2.(n) G.S. 143B-245.16 reads as rewritten: 42
1069	1072		"§ 143B-245.16. Rules; use of fees; report. 43
1070	1073		… 44
1071	1074		(b) Use of Fees and Penalties. – The fees received under this Part and the penalties 45
1072	1075		collected under G.S. 14-313(h) G.S. 18D-700(b) by the Department of Revenue shall be used by 46
1073	1076		the Department of Revenue exclusively for processing the certifications, operating and 47
1074	1077		maintaining the directory, and enforcement of this Part. 48
1075	1078		(c) Report. – Beginning on January 31, 2026, and annually thereafter, the Secretary shall 49
1076	1079		provide a report to the legislature regarding the status of the directory, manufacturers and 50
1077	1080		products included in the directory, revenue and expenditures related to administration of this 51 General Assembly Of North Carolina Session 2025
1078		-	Page 22 ~~House Bill 425-First Edition~~
	1081	+	Page 22 DRH10111-MLf-65
1079	1082		section, Part, and enforcement activities undertaken pursuant to this section, Part, including the 1
1080	1083		number of stores that have been inspected and the results from such inspections." 2
1081	1084		3
1082	1085		PART III. MISCELLANEOUS 4
1083	1086		SECTION 3.(a) Prosecutions for offenses committed before the effective date of 5
1084	1087		this act are not abated or affected by this act, and the statutes that would be applicable but for 6
1085	1088		this act remain applicable to those prosecutions. 7
1086	1089		SECTION 3.(b) Effective March 1, 2026, the ABC Commission may issue tobacco 8
1087	1090		retail sales permits as authorized by Section 1 of this act effective for the period of May 1, 2026, 9
1088	1091		through April 30, 2027. 10
1089	1092		SECTION 3.(c) G.S. 18D-100, 18D-101, 18D-104, 18D-300 through 18D-302, and 11
1090	1093		18D-304 through 18D-307, as enacted by Section 1 of this act, are effective when this act 12
1091	1094		becomes law and apply to permits effective on or after May 1, 2026. The remainder of Sections 13
1092	1095		1 through 3 of this act becomes effective May 1, 2026, and applies to offenses committed on or 14
1093	1096		after that date. The remainder of this act is effective when it becomes law. 15