North Carolina 2025-2026 Regular Session

North Carolina House Bill H430 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 430
	3	+	H D
	4	+	HOUSE BILL DRH10204-MLf-65B
	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: Judiciary 1, if favorable, Finance, if favorable, Rules, Calendar, and Operations of
11		-	the House
12		-	March 19, 2025
13		-	H430 -v-1
	9	+	Sponsors: Representative Loftis.
	10	+	Referred to:
	11	+
	12	+	DRH10204 -MLf-65B
14	13		A BILL TO BE ENTITLED 1
15	14		AN ACT TO PROTECT THE YOUTH FROM THE HARMFUL EFFECTS OF VAPING AND 2
16	15		NICOTINE ADDICTION BY RAISING THE LEGAL SALES AGE OF TOBACCO 3
17	16		PRODUCTS TO AGE 21 AND TO REQUIRE A TOBACCO RETAIL SALES PERMIT. 4
18	17		The General Assembly of North Carolina enacts: 5
19	18		6
20	19		PART I. REQUIRE PERMIT FOR SALE OF TOBACCO PRODUCTS AND RESTRICT 7
21	20		PURCHASE OF TOBACCO PRODUCTS 8
22	21		SECTION 1. The General Statutes are amended by adding a new Chapter to read: 9
23	22		"Chapter 18D. 10
24	23		"Tobacco Products Retail Sales. 11
25	24		"Article 1. 12
26	25		"Definitions and Authority. 13
27	26		"§ 18D-100. Definitions. 14
28	27		(a) Unless the context requires otherwise, the following definitions apply in this Chapter: 15
29	28		(1) ALE Division. – As defined in G.S. 18B-101. 16
30	29		(2) Alternative nicotine product. – Any noncombustible product that contains 17
31	30		nicotine, whether natural or synthetic, but does not contain tobacco and is 18
32	31		intended for human consumption whether chewed, absorbed, dissolved, 19
33	32		ingested, or by other means. This term does not include a vapor product or any 20
34	33		product regulated by the United States Food and Drug Administration under 21
35	34		Chapter V of the federal Food, Drug, and Cosmetic Act. 22
36	35		(3) Commission. – As defined in G.S. 18B-101. 23
37	36		(4) Component. – A "component or part," as that term is defined in section 1140.3 24
38	37		of Title 21 of the Code of Federal Regulations, as amended from time to time. 25
39	38		This term includes cigarette wrapping papers, which has the same meaning as 26
40	39		the term "cigarette paper" in 26 U.S.C. § 5702(e). 27
41	40		(5) Consumable product. – As defined in G.S. 105-113.4. For purposes of this 28
42	41		Chapter, a consumable product does not contain any tobacco leaf. 29
43	42		(6) Consumer. – As defined in G.S. 105-113.4. 30
44	43		(7) Delivery sale. – As defined in G.S. 105-113.4. 31
45	44		(8) Delivery seller. – As defined in G.S. 105-113.4. 32
46	45		(9) Delivery seller permit. – A permit issued to a delivery seller pursuant to this 33
47		-	Chapter. 34 General Assembly Of North Carolina Session 2025
48		-	Page 2 House Bill 430-First Edition
49		-	(10) Delivery service. – As defined in G.S. 105-113.4. 1
50		-	(11) Distribute. – Sell, furnish, give, or provide tobacco products, including 2
51		-	tobacco product samples, to the ultimate consumer. 3
52		-	(12) E-liquid. – As defined in G.S. 14-401.18A. 4
53		-	(13) Packaging. – Has the same meaning as the term "package" in G.S. 105-113.4. 5
54		-	(14) Permit. – A permit issued to a retail dealer pursuant to this Chapter, unless the 6
55		-	context clearly requires otherwise. 7
56		-	(15) Person. – An individual, firm, partnership, association, corporation, limited 8
57		-	liability company, other organization or group, or other combination of 9
58		-	individuals acting as a unit. 10
59		-	(16) Premises. – A fixed permanent establishment, including all areas inside or 11
60		-	outside the licensed establishment, where the permittee has control through a 12
61		-	lease, deed, or other legal process. 13
62		-	(17) Proof of age. – A drivers license, a special identification card issued under 14
63		-	G.S. 20-37.7 or issued by the state agency of any other state authorized to 15
64		-	issue similar official state special identification cards for that state, a military 16
65		-	identification card, or a passport showing the purchaser's age to be at least the 17
66		-	required age for purchase and bearing a physical description of the person 18
67		-	named on the card reasonably describing the purchaser. 19
68		-	(18) Remote sale. – As defined in G.S. 105-113.4. 20
69		-	(19) Remote seller. – As defined in G.S. 105-113.4. 21
70		-	(20) Remote seller permit. – A permit issued to a remote seller pursuant to this 22
71		-	Chapter. 23
72		-	(21) Retail dealer. – As defined in G.S. 105-113.4. 24
73		-	(22) Retail seller. – A retail dealer who is not a delivery seller or remote seller. 25
74		-	(23) Retail seller permit. – A permit issued to a retail seller pursuant to this Chapter. 26
75		-	(24) Sale. – As defined in G.S. 105-113.4. 27
76		-	(25) Sample. – A tobacco product distributed to members of the general public at 28
77		-	no cost for the purpose of promoting the product. 29
78		-	(26) Secretary. – The Secretary of the Department of Revenue. 30
79		-	(27) Tobacco product. – Any product that contains tobacco or nicotine from any 31
80		-	source and is intended for human consumption. This term includes an 32
81		-	alternative nicotine product, vapor product, e-liquid, consumable product, 33
82		-	component of a tobacco product, or component of an alternative nicotine 34
83		-	product. 35
84		-	(28) Tobacco retail sales law. – Any statute or statutes in this Chapter, Article 2A 36
85		-	of Chapter 105 of the General Statutes, and the rules issued by the 37
86		-	Commission under the authority of this Chapter or the Department of Revenue 38
87		-	under the authority of Article 2A of Chapter 105 of the General Statutes. 39
88		-	(29) Tobacco retail sales permit. – A retail seller permit, a delivery seller permit, 40
89		-	or a remote seller permit issued to a retail dealer pursuant to this Chapter. 41
90		-	(30) Vapor product. – Any noncombustible product that employs a mechanical 42
91		-	heating element, battery, or electronic circuit regardless of shape or size and 43
92		-	that can be used to heat a consumable product or e-liquid contained in a vapor 44
93		-	cartridge. This term includes an electronic cigarette, electronic cigar, 45
94		-	electronic cigarillo, electronic pipe, vape pen, and e-liquid. This term does not 46
95		-	include any product regulated by the United States Food and Drug 47
96		-	Administration under Chapter V of the federal Food, Drug, and Cosmetic Act. 48
97		-	(b) Except as otherwise defined in this Chapter, the definitions in G.S. 105-113.4 apply 49
98		-	to this Chapter. 50
99		-	"§ 18D-101. Powers and duties of the Commission. 51 General Assembly Of North Carolina Session 2025
100		-	House Bill 430-First Edition Page 3
101		-	(a) The Commission shall have the authority to do all of the following: 1
102		-	(1) Administer the tobacco retail sales laws pursuant to this Chapter. 2
103		-	(2) Provide for enforcement of the tobacco retail sales laws pursuant to this 3
104		-	Chapter, in conjunction with the ALE Division. 4
105		-	(3) Issue permits and impose sanctions against permittees in accordance with this 5
106		-	Chapter. 6
107		-	(b) The Commission shall have all other powers which may be reasonably implied from 7
108		-	the granting of the express powers listed in subsection (a) of this section, or which may be 8
109		-	incidental to, or convenient for, performing the duties given to the Commission. 9
110		-	"§ 18D-102. Inspection of licensed premises. 10
111		-	(a) To procure evidence of violations of the tobacco retail sales law, alcohol law 11
112		-	enforcement agents and employees of the Commission shall have authority to investigate the 12
113		-	operation of each licensed premises for which a tobacco retail sales permit has been issued, to 13
114		-	make inspections that include viewing the entire premises, and to examine the books and records 14
115		-	of the permittee. The inspection authorized by this section may be made at any time it reasonably 15
116		-	appears that someone is on the premises. 16
117		-	(b) Refusal by a permittee or by any employee of a permittee to allow officers or 17
118		-	employees of the Commission to enter the premises to make an inspection authorized by 18
119		-	subsection (a) of this section shall be cause for revocation, suspension, or other action against the 19
120		-	permit or the permittee as provided in G.S. 18D-103. It shall be a Class 2 misdemeanor for any 20
121		-	person to resist or obstruct an officer attempting to make a lawful inspection under this section. 21
122		-	"§ 18D-103. Administrative penalties. 22
123		-	(a) For any violation of the tobacco retail sales laws, the Commission may take any of 23
124		-	the following actions against a permittee: 24
125		-	(1) Suspend the permittee's permit for a specified period of time not longer than 25
126		-	three years. 26
127		-	(2) Revoke the permittee's permit. 27
128		-	(3) Fine the permittee up to five hundred dollars ($500.00) for the first violation, 28
129		-	up to seven hundred fifty dollars ($750.00) for the second violation within 29
130		-	three years, and up to one thousand dollars ($1,000) for the third violation 30
131		-	within three years of the first violation. 31
132		-	(4) Suspend the permittee's permit under subdivision (1) of this subsection and 32
133		-	impose a fine under subdivision (3) of this subsection. 33
134		-	(b) In any case in which the Commission is entitled to suspend or revoke a permit, the 34
135		-	Commission may accept from the permittee an offer in compromise to pay a penalty of not more 35
136		-	than five thousand dollars ($5,000). The Commission may either accept a compromise or revoke 36
137		-	a permit, but not both. The Commission may accept a compromise and suspend the permit in the 37
138		-	same case. 38
139		-	(c) The clear proceeds of fines and penalties assessed pursuant to this section shall be 39
140		-	remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 40
141		-	(d) Suspension or revocation of a permit is grounds for suspension or revocation of any 41
142		-	related State or local revenue license. 42
143		-	(e) Unless some other disposition is ordered by the Commission for a tobacco retail sales 43
144		-	law violation, revocation or suspension of a permit under subsection (a) of this section does not 44
145		-	include automatic revocation or suspension, respectively, of any ABC permit held by the same 45
146		-	permittee for the same establishment. 46
147		-	"§ 18D-104. Rules. 47
148		-	The Commission shall have authority to adopt, amend, and repeal rules to carry out the 48
149		-	provisions of this Chapter. Those rules shall become effective when adopted and filed pursuant 49
150		-	to the provisions of Chapter 150B of the General Statutes. 50
151		-	"§ 18D-105. Applicability of Administrative Procedure Act. 51 General Assembly Of North Carolina Session 2025
152		-	Page 4 House Bill 430-First Edition
	46	+	Chapter. 34
	47	+	(10) Delivery service. – As defined in G.S. 105-113.4. 35
	48	+	H.B. 430
	49	+	Mar 18, 2025
	50	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	51	+	Page 2 DRH10204-MLf-65B
	52	+	(11) Distribute. – Sell, furnish, give, or provide tobacco products, including 1
	53	+	tobacco product samples, to the ultimate consumer. 2
	54	+	(12) E-liquid. – As defined in G.S. 14-401.18A. 3
	55	+	(13) Packaging. – Has the same meaning as the term "package" in G.S. 105-113.4. 4
	56	+	(14) Permit. – A permit issued to a retail dealer pursuant to this Chapter, unless the 5
	57	+	context clearly requires otherwise. 6
	58	+	(15) Person. – An individual, firm, partnership, association, corporation, limited 7
	59	+	liability company, other organization or group, or other combination of 8
	60	+	individuals acting as a unit. 9
	61	+	(16) Premises. – A fixed permanent establishment, including all areas inside or 10
	62	+	outside the licensed establishment, where the permittee has control through a 11
	63	+	lease, deed, or other legal process. 12
	64	+	(17) Proof of age. – A drivers license, a special identification card issued under 13
	65	+	G.S. 20-37.7 or issued by the state agency of any other state authorized to 14
	66	+	issue similar official state special identification cards for that state, a military 15
	67	+	identification card, or a passport showing the purchaser's age to be at least the 16
	68	+	required age for purchase and bearing a physical description of the person 17
	69	+	named on the card reasonably describing the purchaser. 18
	70	+	(18) Remote sale. – As defined in G.S. 105-113.4. 19
	71	+	(19) Remote seller. – As defined in G.S. 105-113.4. 20
	72	+	(20) Remote seller permit. – A permit issued to a remote seller pursuant to this 21
	73	+	Chapter. 22
	74	+	(21) Retail dealer. – As defined in G.S. 105-113.4. 23
	75	+	(22) Retail seller. – A retail dealer who is not a delivery seller or remote seller. 24
	76	+	(23) Retail seller permit. – A permit issued to a retail seller pursuant to this Chapter. 25
	77	+	(24) Sale. – As defined in G.S. 105-113.4. 26
	78	+	(25) Sample. – A tobacco product distributed to members of the general public at 27
	79	+	no cost for the purpose of promoting the product. 28
	80	+	(26) Secretary. – The Secretary of the Department of Revenue. 29
	81	+	(27) Tobacco product. – Any product that contains tobacco or nicotine from any 30
	82	+	source and is intended for human consumption. This term includes an 31
	83	+	alternative nicotine product, vapor product, e-liquid, consumable product, 32
	84	+	component of a tobacco product, or component of an alternative nicotine 33
	85	+	product. 34
	86	+	(28) Tobacco retail sales law. – Any statute or statutes in this Chapter, Article 2A 35
	87	+	of Chapter 105 of the General Statutes, and the rules issued by the 36
	88	+	Commission under the authority of this Chapter or the Department of Revenue 37
	89	+	under the authority of Article 2A of Chapter 105 of the General Statutes. 38
	90	+	(29) Tobacco retail sales permit. – A retail seller permit, a delivery seller permit, 39
	91	+	or a remote seller permit issued to a retail dealer pursuant to this Chapter. 40
	92	+	(30) Vapor product. – Any noncombustible product that employs a mechanical 41
	93	+	heating element, battery, or electronic circuit regardless of shape or size and 42
	94	+	that can be used to heat a consumable product or e-liquid contained in a vapor 43
	95	+	cartridge. This term includes an electronic cigarette, electronic cigar, 44
	96	+	electronic cigarillo, electronic pipe, vape pen, and e-liquid. This term does not 45
	97	+	include any product regulated by the United States Food and Drug 46
	98	+	Administration under Chapter V of the federal Food, Drug, and Cosmetic Act. 47
	99	+	(b) Except as otherwise defined in this Chapter, the definitions in G.S. 105-113.4 apply 48
	100	+	to this Chapter. 49
	101	+	"§ 18D-101. Powers and duties of the Commission. 50
	102	+	(a) The Commission shall have the authority to do all of the following: 51 General Assembly Of North Carolina Session 2025
	103	+	DRH10204-MLf-65B Page 3
	104	+	(1) Administer the tobacco retail sales laws pursuant to this Chapter. 1
	105	+	(2) Provide for enforcement of the tobacco retail sales laws pursuant to this 2
	106	+	Chapter, in conjunction with the ALE Division. 3
	107	+	(3) Issue permits and impose sanctions against permittees in accordance with this 4
	108	+	Chapter. 5
	109	+	(b) The Commission shall have all other powers which may be reasonably implied from 6
	110	+	the granting of the express powers listed in subsection (a) of this section, or which may be 7
	111	+	incidental to, or convenient for, performing the duties given to the Commission. 8
	112	+	"§ 18D-102. Inspection of licensed premises. 9
	113	+	(a) To procure evidence of violations of the tobacco retail sales law, alcohol law 10
	114	+	enforcement agents and employees of the Commission shall have authority to investigate the 11
	115	+	operation of each licensed premises for which a tobacco retail sales permit has been issued, to 12
	116	+	make inspections that include viewing the entire premises, and to examine the books and records 13
	117	+	of the permittee. The inspection authorized by this section may be made at any time it reasonably 14
	118	+	appears that someone is on the premises. 15
	119	+	(b) Refusal by a permittee or by any employee of a permittee to allow officers or 16
	120	+	employees of the Commission to enter the premises to make an inspection authorized by 17
	121	+	subsection (a) of this section shall be cause for revocation, suspension, or other action against the 18
	122	+	permit or the permittee as provided in G.S. 18D-103. It shall be a Class 2 misdemeanor for any 19
	123	+	person to resist or obstruct an officer attempting to make a lawful inspection under this section. 20
	124	+	"§ 18D-103. Administrative penalties. 21
	125	+	(a) For any violation of the tobacco retail sales laws, the Commission may take any of 22
	126	+	the following actions against a permittee: 23
	127	+	(1) Suspend the permittee's permit for a specified period of time not longer than 24
	128	+	three years. 25
	129	+	(2) Revoke the permittee's permit. 26
	130	+	(3) Fine the permittee up to five hundred dollars ($500.00) for the first violation, 27
	131	+	up to seven hundred fifty dollars ($750.00) for the second violation within 28
	132	+	three years, and up to one thousand dollars ($1,000) for the third violation 29
	133	+	within three years of the first violation. 30
	134	+	(4) Suspend the permittee's permit under subdivision (1) of this subsection and 31
	135	+	impose a fine under subdivision (3) of this subsection. 32
	136	+	(b) In any case in which the Commission is entitled to suspend or revoke a permit, the 33
	137	+	Commission may accept from the permittee an offer in compromise to pay a penalty of not more 34
	138	+	than five thousand dollars ($5,000). The Commission may either accept a compromise or revoke 35
	139	+	a permit, but not both. The Commission may accept a compromise and suspend the permit in the 36
	140	+	same case. 37
	141	+	(c) The clear proceeds of fines and penalties assessed pursuant to this section shall be 38
	142	+	remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 39
	143	+	(d) Suspension or revocation of a permit is grounds for suspension or revocation of any 40
	144	+	related State or local revenue license. 41
	145	+	(e) Unless some other disposition is ordered by the Commission for a tobacco retail sales 42
	146	+	law violation, revocation or suspension of a permit under subsection (a) of this section does not 43
	147	+	include automatic revocation or suspension, respectively, of any ABC permit held by the same 44
	148	+	permittee for the same establishment. 45
	149	+	"§ 18D-104. Rules. 46
	150	+	The Commission shall have authority to adopt, amend, and repeal rules to carry out the 47
	151	+	provisions of this Chapter. Those rules shall become effective when adopted and filed pursuant 48
	152	+	to the provisions of Chapter 150B of the General Statutes. 49
	153	+	"§ 18D-105. Applicability of Administrative Procedure Act. 50 General Assembly Of North Carolina Session 2025
	154	+	Page 4 DRH10204-MLf-65B
153	155		(a) A permit is a "license" within the meaning of G.S. 150B-2 and, except for a 1
154	156		confirmation pursuant to G.S. 18D-300(a)(7), a Commission action on issuance, suspension, or 2
155	157		revocation of a permit, other than a temporary permit issued under G.S. 18D-304, is a "contested 3
156	158		case" subject to the provisions of Chapter 150B of the General Statutes, except as provided in 4
157	159		this section. 5
158	160		(b) Hearings on permits shall be held within 100 miles, as best can be determined by the 6
159	161		Commission, of the county seat of the county in which the licensed business or proposed business 7
160	162		is located. The hearing may be held, however, at any place upon agreement of the Commission 8
161	163		and all other parties. 9
162	164		(c) In making a final decision in a contested case in which an issue is whether to deny an 10
163	165		application for a tobacco retail sales permit because the applicant is unsuitable, the Commission 11
164	166		may hear evidence of acts that occurred after the date the contested case hearing was held if the 12
165	167		evidence is admissible under G.S. 150B-29(a). New evidence heard under this subsection is not 13
166	168		grounds for reversal or remand under G.S. 150B-51(a). 14
167	169		"Article 2. 15
168	170		"Sales. 16
169	171		"§ 18D-200. Tobacco retail permit required. 17
170	172		(a) It is unlawful to sell a tobacco product to a consumer in this State without a permit 18
171	173		issued by the Commission in accordance with this Chapter. 19
172	174		(b) Notwithstanding subsection (a) of this section, no permit issued pursuant to this 20
173	175		Chapter shall be required by a delivery service making deliveries on behalf of another person 21
174	176		holding a permit issued pursuant to this Chapter. 22
175	177		"§ 18D-201. Disposition of seized tobacco products. 23
176	178		(a) A law enforcement officer who seizes tobacco products as evidence of a tobacco retail 24
177	179		sales law violation shall provide for the storage of those tobacco products until the 25
178	180		commencement of the trial or administrative hearing relating to the violation, unless some other 26
179	181		disposition is authorized under this section. 27
180	182		(b) After giving notice to each defendant, to any other known owner, and to the 28
181	183		Commission, a judge may order any of the following dispositions of tobacco products seized as 29
182	184		evidence of a tobacco retail sales law violation: 30
183	185		(1) The destruction of any tobacco products except that amount needed for 31
184	186		evidence at trial. 32
185	187		(2) The sale of any tobacco products other than any tobacco products needed for 33
186	188		evidence at trial, if the trial is likely to be delayed for more than 90 days, or if 34
187	189		the quantity or nature of the tobacco products is such that storage is 35
188	190		impractical or unduly expensive. 36
189	191		(3) The destruction of the tobacco products if storage or sale is not practical. 37
190	192		(4) Continued storage of the tobacco products. 38
191	193		(c) After the criminal charge is resolved, a judge may order any of the following 39
192	194		dispositions of seized tobacco products: 40
193	195		(1) If the owner or possessor of the tobacco products is found guilty of a criminal 41
194	196		charge relating to those tobacco products, the judge may order the sale or 42
195	197		destruction of any tobacco products that were held until trial. 43
196	198		(2) If the owner or possessor of the tobacco products is found not guilty, or if 44
197	199		charges are dismissed or otherwise resolved in favor of the owner or 45
198	200		possessor, the judge shall order the tobacco products returned to that owner or 46
199	201		possessor, except as provided in subdivision (3) of this subsection. 47
200	202		(3) If the owner or possessor of the tobacco products is found not guilty, or if 48
201	203		charges are otherwise resolved in favor of the owner or possessor, but 49
202	204		possession of the tobacco products by that owner or possessor would be 50
203	205		unlawful, the judge shall order the tobacco products either sold or destroyed. 51 General Assembly Of North Carolina Session 2025
204		-	~~House Bill 430-First Edition~~ Page 5
	206	+	DRH10204-MLf-65B Page 5
205	207		(4) If ownership of the tobacco products remains uncertain after trial or after the 1
206	208		charges have been dismissed, the judge may order the tobacco products held 2
207	209		for a specified time, until ownership of the tobacco products can be 3
208	210		determined. 4
209	211		(d) If tobacco products used as evidence in a criminal proceeding are also needed as 5
210	212		evidence at an administrative hearing, a judge shall not order any of the dispositions set out in 6
211	213		subsection (c) of this section but shall order the tobacco products held for the administrative 7
212	214		hearing and for a determination of final disposition by the Commission. The Commission may, 8
213	215		before or after an administrative hearing, order any of the dispositions authorized under 9
214	216		subsections (b) and (c) of this section. If no related criminal proceeding has commenced, the 10
215	217		Commission shall not order destruction of tobacco products until notice has been given to the 11
216	218		district attorney for the district where the tobacco products were seized or any violation of 12
217	219		tobacco retail sales laws related to the seizure of the tobacco products is likely to be prosecuted. 13
218	220		(e) The sale of tobacco products shall be by public auction to a tobacco products 14
219	221		manufacturer, a tobacco products wholesaler, or a tobacco retail sales permittee. 15
220	222		(f) An agency selling tobacco products seized under the provisions of this Chapter shall 16
221	223		keep the proceeds in a separate account until some other disposition is ordered by a judge or the 17
222	224		Commission. In a criminal proceeding, if the owner or possessor of the tobacco products is found 18
223	225		guilty of a violation relating to seizure of the tobacco products, if the owner or possessor is found 19
224	226		not guilty or the charge is dismissed or otherwise resolved in favor of the owner or possessor, 20
225	227		but the possession of the tobacco products by that owner or possessor would be unlawful, or if 21
226	228		the ownership of the tobacco products cannot be determined, the proceeds from the sale of those 22
227	229		tobacco products shall be paid to the school fund of the county in which the tobacco products 23
228	230		were seized. If the owner or possessor of tobacco products seized for violation of the tobacco 24
229	231		retail sales laws is found not guilty of criminal charges relating to the seizure of those tobacco 25
230	232		products or the charge is dismissed or otherwise resolved in favor of the owner or possessor, and 26
231	233		if possession of the tobacco products by that owner or possessor was lawful when the tobacco 27
232	234		products were seized, the proceeds from the sale of those tobacco products shall be paid to the 28
233	235		owner or possessor. The agency making the sale may deduct and retain from the amount to be 29
234	236		placed in the county school fund the costs of storing the seized tobacco products and of 30
235	237		conducting the sale but may not deduct those costs from the amount to be turned over to an owner 31
236	238		or possessor of the tobacco products. 32
237	239		(g) Any person who claims any of the following resulting from the seizure of tobacco 33
238	240		products may bring an action in the superior court of the county in which the tobacco products 34
239	241		were seized: 35
240	242		(1) To be the owner of tobacco products that are wrongfully held. 36
241	243		(2) To be the owner of tobacco products that are needed as evidence in another 37
242	244		proceeding. 38
243	245		(3) To be entitled to proceeds from a sale of tobacco products. 39
244	246		(4) To be entitled to restitution for tobacco products wrongfully destroyed. 40
245	247		"§ 18D-202. Forfeiture. 41
246	248		(a) Tobacco products possessed or sold in violation of the tobacco retail sales laws shall 42
247	249		be subject to forfeiture. 43
248	250		(b) Tobacco products which may be possessed lawfully shall not be subject to forfeiture 44
249	251		when they were used unlawfully by someone other than the owner of the tobacco products and 45
250	252		the owner did not consent to the unlawful use. 46
251	253		(c) If tobacco products subject to forfeiture have not already been seized as part of an 47
252	254		arrest or search, a law enforcement officer may apply to a judge for an order authorizing seizure 48
253	255		of that tobacco product. An order for seizure may be issued only after criminal process has been 49
254	256		issued for tobacco retail sales law violation in connection with that tobacco product. The order 50 General Assembly Of North Carolina Session 2025
255		-	Page 6 ~~House Bill 430-First Edition~~
	257	+	Page 6 DRH10204-MLf-65B
256	258		shall describe the tobacco product to be seized and shall state the facts establishing probable 1
257	259		cause to believe that the tobacco product is subject to forfeiture. 2
258	260		(d) A law enforcement officer seizing tobacco product subject to forfeiture shall provide 3
259	261		for its safe storage until trial. 4
260	262		(e) The presiding judge in a criminal proceeding for violation of tobacco retail sales laws 5
261	263		may take any of the following actions after resolution of a charge against the owner or possessor 6
262	264		of the tobacco product subject to forfeiture under this section: 7
263	265		(1) If the owner or possessor of the tobacco product is found guilty of a tobacco 8
264	266		retail sales offense, the judge may order the tobacco product forfeited. 9
265	267		(2) If the owner or possessor of the tobacco product is found not guilty, or if the 10
266	268		charge is dismissed or otherwise resolved in favor of the owner or possessor, 11
267	269		the judge shall order the tobacco product returned to the owner or possessor. 12
268	270		(3) If ownership of the tobacco product remains uncertain after trial, the judge 13
269	271		may order the tobacco product held for a specified time to determine 14
270	272		ownership. If the judge finds that ownership cannot be determined with 15
271	273		reasonable effort, the judge shall order the tobacco product forfeited. 16
272	274		(4) Regardless of the disposition of the charge, if the tobacco product is something 17
273	275		that may not be possessed lawfully, the judge shall order it forfeited. 18
274	276		(5) If the tobacco product is also needed as evidence at an administrative hearing, 19
275	277		the judge shall provide that the order does not go into effect until the 20
276	278		Commission determines that the tobacco product is no longer needed for the 21
277	279		administrative proceeding. 22
278	280		(f) A judge ordering forfeiture of the tobacco product may order any one of the following 23
279	281		dispositions: 24
280	282		(1) Sale at public auction to a tobacco products manufacturer, a tobacco products 25
281	283		wholesaler, or a tobacco retail sales permittee. 26
282	284		(2) Destruction, if possession of the tobacco product would be unlawful or if sale 27
283	285		or other disposition is not practical. 28
284	286		(g) If the forfeited tobacco product is sold, the proceeds of that sale shall be paid to the 29
285	287		school fund of the county in which the tobacco product was seized, except as provided in 30
286	288		subsection (h) of this section. Before placing the proceeds in the school fund, the agency making 31
287	289		the sale may deduct and retain the costs of storing the tobacco product and conducting the sale. 32
288	290		(h) At any time before forfeiture is ordered, an owner of the seized tobacco product or a 33
289	291		holder of a security interest in the seized tobacco product, other than the defendant, may apply 34
290	292		to protect the person's interest in the tobacco product. The application may be made to any judge 35
291	293		who has jurisdiction to try the offense with which the tobacco product is associated. If the judge 36
292	294		finds that the tobacco product owner or holder of a security interest did not consent to the 37
293	295		unlawful use of the tobacco product, and that the tobacco product may be possessed lawfully by 38
294	296		the owner or holder, the judge may order any of the following: 39
295	297		(1) That the tobacco product be returned to the owner, if it is not needed as 40
296	298		evidence at trial. 41
297	299		(2) That the tobacco product be returned to the owner following trial or other 42
298	300		resolution of the case. 43
299	301		(3) That, if the tobacco product is sold following trial, a specified sum be paid 44
300	302		from the proceeds of that sale to the holder of the security interest. 45
301	303		(i) When tobacco product is seized for forfeiture but the owner is unknown, the district 46
302	304		attorney may seek forfeiture under this section by an action in rem against the tobacco product. 47
303	305		If the owner is known and has been charged with an offense but is unavailable for trial, the district 48
304	306		attorney may seek forfeiture either by an action in rem against the tobacco product or by motion 49
305	307		in the criminal action. 50 General Assembly Of North Carolina Session 2025
306		-	~~House Bill 430-First Edition~~ Page 7
	308	+	DRH10204-MLf-65B Page 7
307	309		(j) Any owner of tobacco product seized for forfeiture may apply to a judge to have the 1
308	310		tobacco product returned to him if no criminal charge has been made in connection with that 2
309	311		tobacco product within a reasonable time after seizure. The judge may not order the return of the 3
310	312		tobacco product if possession by the owner would be unlawful. 4
311	313		"Article 3. 5
312	314		"Issuance of Permits. 6
313	315		"§ 18D-300. Qualifications for a permit. 7
314	316		(a) To be eligible to receive and to hold a tobacco retail sales permit, a person must satisfy 8
315	317		all of the following requirements: 9
316	318		(1) Be at least 21 years old. 10
317	319		(2) Be a resident of North Carolina, unless either of the following applies: 11
318	320		a. The person is an officer, director, or stockholder of a corporate 12
319	321		applicant or permittee and is not a manager or otherwise responsible 13
320	322		for the day-to-day operation of the business. 14
321	323		b. The person has executed a power of attorney designating a qualified 15
322	324		resident of this State to serve as attorney-in-fact for the purposes of 16
323	325		receiving service of process and managing the business for which 17
324	326		permits are sought. 18
325	327		(3) Not have been convicted of a felony within three years and, if convicted of a 19
326	328		felony before then, have had his or her citizenship restored. 20
327	329		(4) Not have been convicted of a tobacco product retail sales offense pursuant to 21
328	330		this Chapter within two years. 22
329	331		(5) Not have been convicted of a misdemeanor controlled substance offense 23
330	332		within two years. 24
331	333		(6) Not have had a tobacco retail sales permit revoked within three years, except 25
332	334		where the revocation was based solely on a permittee's failure to pay the 26
333	335		annual renewal fee required in G.S. 18D-302(d). 27
334	336		(7) Be current in filing all applicable tax returns to the State and in payment of all 28
335	337		taxes, interest, and penalties that are collectible under G.S. 105-241.22. 29
336	338		To avoid undue hardship, however, the Commission may decline to take action under 30
337	339		G.S. 18D-103 against a permittee who is in violation of subdivision (3), (4), or (5) of this 31
338	340		subsection. 32
339	341		(b) A person has been "convicted" for the purposes of subsection (a) of this section when 33
340	342		the person has been found guilty or has entered a plea of guilty or nolo contendere and judgment 34
341	343		has been entered. A felony conviction in another jurisdiction disqualifies a person from being 35
342	344		eligible to receive or hold a tobacco retail sales permit if the conduct would also constitute a 36
343	345		felony in North Carolina. A conviction of a tobacco retail sales law or misdemeanor drug offense 37
344	346		in another jurisdiction disqualifies a person from being eligible to receive or hold a tobacco retail 38
345	347		sales permit if the conduct would constitute an offense in North Carolina, unless the Commission 39
346	348		determines that under North Carolina procedure judgment would not have been entered under 40
347	349		the same circumstances. Revocation of a permit in another jurisdiction disqualifies a person if 41
348	350		the conduct would be grounds for revocation of a tobacco retail sales permit in North Carolina. 42
349	351		(c) For a permit to be issued to and held for a business, each of the following persons 43
350	352		associated with that business must qualify under subsection (a) of this section: 44
351	353		(1) The owner of a sole proprietorship. 45
352	354		(2) Each member of a firm, association, or general partnership. 46
353	355		(3) Each general partner in a limited partnership. 47
354	356		(4) Each manager and any member with a twenty-five percent (25%) or greater 48
355	357		interest in a limited liability company. 49
356	358		(5) Each officer, director, and owner of twenty-five percent (25%) or more of the 50
357	359		stock of a corporation except that the requirement of subdivision (1) of 51 General Assembly Of North Carolina Session 2025
358		-	Page 8 ~~House Bill 430-First Edition~~
	360	+	Page 8 DRH10204-MLf-65B
359	361		subsection (a) of this section does not apply to the officer, director, or 1
360	362		stockholder unless he or she is a manager or is otherwise responsible for the 2
361	363		day-to-day operation of the business. 3
362	364		(6) The manager of an establishment operated by a corporation. 4
363	365		(7) Any manager who has been empowered as attorney-in-fact for a nonresident 5
364	366		individual or partnership. 6
365	367		(8) Any manager or person otherwise responsible for the day-to-day operation of 7
366	368		the business, if none of the persons listed in subdivisions (1) through (7) of 8
367	369		this subsection are a manager or person otherwise responsible for the 9
368	370		day-to-day operation of the business. 10
369	371		(d) Upon request of the Commission, the Department of Revenue shall provide 11
370	372		information to the Commission to confirm a person's compliance with subdivision (7) of 12
371	373		subsection (a) of this section. If the Department of Revenue notifies the Commission that a person 13
372	374		is not in compliance, then the Commission may not issue or renew the person's permit until the 14
373	375		Commission receives notice from the Department of Revenue that the person is in compliance. 15
374	376		The requirement to pay all taxes, interest, and penalties may be satisfied by an operative 16
375	377		agreement under G.S. 105-237 covering any amounts that are collectible under G.S. 105-241.22. 17
376	378		Chapter 150B of the General Statutes does not apply to a Commission action on issuance, 18
377	379		suspension, or revocation of a tobacco retail sales permit under subdivision (7) of subsection (a) 19
378	380		of this section. 20
379	381		"§ 18D-301. Issuance of permits. 21
380	382		(a) All tobacco retail sales permits shall be issued by the Commission. 22
381	383		(b) Before issuing a permit, the Commission shall be satisfied that the applicant is a 23
382	384		suitable person to hold a tobacco retail sales permit and that the location is a suitable place to 24
383	385		hold the permit for which the applicant has applied. Factors the Commission shall consider in 25
384	386		determining whether the applicant and the business location are suitable are all of the following: 26
385	387		(1) The reputation, character, and criminal record of the applicant. 27
386	388		(2) Any other evidence that would tend to show whether the applicant would 28
387	389		comply with the tobacco retail sales laws. 29
388	390		(3) Whether the operation of the retail seller permit applicant's business at that 30
389	391		location would be detrimental to the neighborhood, including evidence 31
390	392		admissible under G.S. 150B-29(a) of any of the following: 32
391	393		a. Past revocations, suspensions, and violations of ABC laws by prior 33
392	394		permittees related to or associated with the applicant, or a business 34
393	395		with which the applicant is associated, within the immediate preceding 35
394	396		12-month period at this location. 36
395	397		b. Evidence of illegal drug activity on or about the licensed premises. 37
396	398		c. Evidence of fighting, disorderly conduct, and other dangerous 38
397	399		activities on or about the licensed premises. 39
398	400		(c) The Commission shall have the sole power, in its discretion, to determine the 40
399	401		suitability and qualifications of an applicant for a permit. The Commission shall also have the 41
400	402		authority to determine the suitability of the location to which the permit may be issued. 42
401	403		"§ 18D-302. Application for permit; fees. 43
402	404		(a) An application for a permit shall be on a form prescribed by the Commission and shall 44
403	405		be notarized in accordance with Chapter 10B of the General Statutes. Each person required to 45
404	406		qualify under G.S. 18D-300(c) shall sign and swear to the application and submit a full set of 46
405	407		fingerprints with the application. 47
406	408		(b) Before issuing a new permit, the Commission, with the assistance of the ALE 48
407	409		Division, shall investigate the applicant and, for a retail seller permit, the premises for which the 49
408	410		permit is requested. An applicant shall cooperate fully with the investigation. The State Bureau 50
409	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
410		-	~~House Bill 430-First Edition~~ Page 9
	412	+	DRH10204-MLf-65B Page 9
411	413		applied for a permit through the Commission. The ALE Division shall provide to the State Bureau 1
412	414		of Investigation, along with the request, the fingerprints of the applicant, any additional 2
413	415		information required by the State Bureau of Investigation, and a form signed by the applicant 3
414	416		consenting to the check of the criminal record and to the use of the fingerprints and other 4
415	417		identifying information required by the State or national repositories. The applicant's fingerprints 5
416	418		shall be forwarded to the State Bureau of Investigation for a search of the State's criminal history 6
417	419		record file, and the State Bureau of Investigation shall forward a set of the fingerprints to the 7
418	420		Federal Bureau of Investigation for a national criminal history check. The ALE Division and the 8
419	421		Commission shall keep all information pursuant to this subsection privileged, in accordance with 9
420	422		applicable State law and federal guidelines, and the information shall be confidential and shall 10
421	423		not be a public record under Chapter 132 of the General Statutes. The State Bureau of 11
422	424		Investigation may charge each applicant a fee for conducting the checks of criminal history 12
423	425		records authorized by this subsection. 13
424	426		(c) Knowingly making a false statement in an application for a permit shall be grounds 14
425	427		for denying, suspending, revoking, or taking other action against the permit as provided in 15
426	428		G.S. 18D-103 and shall also be unlawful. 16
427	429		(d) An application for a permit shall be accompanied by payment of the following 17
428	430		application fee: 18
429	431		(1) Retail seller permit. – $400.00. 19
430	432		(2) Delivery seller permit. – $400.00. 20
431	433		(3) Remote seller permit. – $400.00. 21
432	434		(e) The fee required by subsection (d) of this section shall not be refunded. 22
433	435		(f) All fees collected by the Commission under this Chapter shall be remitted to the State 23
434	436		Treasurer for the General Fund. 24
435	437		"§ 18D-303. Duration of permit; renewal and transfer. 25
436	438		(a) Once issued, permits shall be valid for up to one year, from May 1 to April 30. 26
437	439		(b) Application for renewal of a permit shall be on a form provided by the Commission. 27
438	440		An application for renewal shall be accompanied by a renewal fee. The renewal fee shall be the 28
439	441		same amount as the application fee set in G.S. 18D-302. A renewal fee shall not be refundable. 29
440	442		(c) Notwithstanding subsection (a) of this section, the Commission shall not revoke a 30
441	443		permit for failure to pay a renewal application fee until June 1 of each year. No later than five 31
442	444		business days after April 30 of each year, the Commission shall notify permittees who have not 32
443	445		paid any required renewal application fees as of April 30. The Commission shall charge a late 33
444	446		fee of twenty-five percent (25%) of the renewal application fee for a permit for which the renewal 34
445	447		application fee is submitted after April 30. 35
446	448		(d) Change in Ownership. – 36
447	449		(1) Except as provided in subdivisions (2) and (2a) of this subsection, all permits 37
448	450		for an establishment shall automatically expire and shall be surrendered to the 38
449	451		Commission in any of the following circumstances: 39
450	452		a. Ownership of the establishment changes. 40
451	453		b. There is a change in the membership of the firm, association, or 41
452	454		partnership owning the establishment, involving the acquisition of a 42
453	455		twenty-five percent (25%) or greater share in the firm, association, or 43
454	456		partnership by someone who did not previously own a twenty-five 44
455	457		percent (25%) or greater share. 45
456	458		c. Twenty-five percent (25%) or more of the stock of the corporate 46
457	459		permittee owning the establishment is acquired by someone who did 47
458	460		not previously own twenty-five percent (25%) or more of the stock. 48
459	461		(2) Notwithstanding subsection (e) of this section, any person who through 49
460	462		contract, lease, management agreement, or change of ownership or transfer of 50
461	463		business as provided in subdivision (1) of this subsection becomes lawfully 51 General Assembly Of North Carolina Session 2025
462		-	Page 10 ~~House Bill 430-First Edition~~
	464	+	Page 10 DRH10204-MLf-65B
463	465		entitled to use and control of the premises of an establishment that holds 1
464	466		permits immediately prior to such change of ownership may continue to 2
465	467		operate the establishment, as successor to the prior permittee, to the same 3
466	468		extent as the predecessor permittee until the person receives a temporary or 4
467	469		new permit, subject to the following limitations: 5
468	470		a. The person shall provide written or electronic notice to the 6
469	471		Commission of the name of the non-permitted person, the name and 7
470	472		address of the permitted establishment, and the date of the change in 8
471	473		ownership. The person may not operate the establishment as provided 9
472	474		in this subdivision until the person has provided notice to the 10
473	475		Commission. The Commission shall not require any additional 11
474	476		documentation besides the written or electronic notice to satisfy this 12
475	477		requirement. The prior permittee shall not be liable for any acts or 13
476	478		omissions of the non-permitted person operating the establishment. 14
477	479		Any violations of the tobacco retail sales law committed by the person 15
478	480		or any actions taken by the Commission to revoke or suspend the 16
479	481		permit based on the acts or omissions of the person operating the 17
480	482		establishment shall not preclude the prior permittee from receiving a 18
481	483		tobacco retail sales permit for a different establishment. 19
482	484		b. The person shall submit a new permit application to the Commission 20
483	485		within 60 days after the change of ownership. If the person does not 21
484	486		apply for a new permit within 60 days, all permits for the establishment 22
485	487		shall automatically expire and shall be surrendered to the Commission. 23
486	488		c. The 60-day period to file a new permit application shall only be 24
487	489		allowed once per 24 months for each establishment that holds a 25
488	490		tobacco retail sales permit, unless the establishment requests and the 26
489	491		Commission grants a waiver of the 24-month requirement. The 27
490	492		Commission shall grant a waiver of the 24-month requirement if it 28
491	493		determines that the public health, safety, and welfare would not be 29
492	494		harmed by granting the waiver. 30
493	495		d. This subdivision shall apply only to establishments that hold tobacco 31
494	496		retail sales permits that are in good standing and that have not been 32
495	497		found responsible by the Commission or a court of competent 33
496	498		jurisdiction of a gambling, assault, disorderly conduct, prostitution, or 34
497	499		controlled substances violation within 12 months prior to the date the 35
498	500		non-permitted person becomes entitled to use and control of the 36
499	501		establishment. 37
500	502		e. The person shall be authorized to operate the establishment as 38
501	503		successor to the prior permittee to the same extent as the predecessor 39
502	504		permittee until the Commission either issues or denies the permit 40
503	505		application submitted pursuant to sub-subdivision b. of this 41
504	506		subdivision. 42
505	507		(2a) The transfer by a person of any ownership interest to a revocable or 43
506	508		irrevocable trust established by the person shall not constitute a change in 44
507	509		ownership for purposes of subdivision (1) of this subsection if the person 45
508	510		transferring the ownership interest to the trust continues to operate the 46
509	511		establishment. If the person who transferred the ownership interest ceases to 47
510	512		operate the establishment following the transfer of the ownership interest to 48
511	513		the trust, this shall constitute a change in ownership for purposes of 49
512	514		subdivision (1) of this subsection. The trustee shall notify the Commission 50 General Assembly Of North Carolina Session 2025
513		-	~~House Bill 430-First Edition~~ Page 11
	515	+	DRH10204-MLf-65B Page 11
514	516		within 30 days if the person who transferred the ownership interest ceases to 1
515	517		operate the establishment. 2
516	518		(e) A corporation holding a permit for an establishment for which the manager is required 3
517	519		to qualify as an applicant under G.S. 18D-300(c) shall, within 30 days after employing a new 4
518	520		manager, submit to the Commission an application for substitution of a manager. The application 5
519	521		shall be signed by the new manager, shall be on a form provided by the Commission, and shall 6
520	522		be accompanied by a fee of ten dollars ($10.00). The fee shall not be refundable. 7
521	523		(f) A permit issued pursuant to this Chapter may not be transferred from one person to 8
522	524		another or from one location to another. 9
523	525		(g) The Commission may issue duplicate permits for an establishment when the existing 10
524	526		valid permits have been lost or damaged. The request for duplicate permits shall be on a form 11
525	527		provided by the Commission, certified by the permittee and the ALE Division, and accompanied 12
526	528		by a fee of ten dollars ($10.00). 13
527	529		(h) The Commission may issue new permits to a permittee upon application and payment 14
528	530		of a fee of ten dollars ($10.00) for each location when the permittee's name or name of the 15
529	531		business is changed. 16
530	532		"§ 18D-304. Miscellaneous provisions concerning permits. 17
531	533		(a) The following apply to permits issued pursuant to this Chapter: 18
532	534		(1) A retail seller permit shall authorize the sale of tobacco products only in the 19
533	535		physical presence of the consumer on the fixed premises of the establishment 20
534	536		located in the State and named in the permit. A retail seller permit shall be 21
535	537		issued to the owner of the business conducted on the premises or to the 22
536	538		management company employed to independently manage and operate the 23
537	539		business. The Commission may determine if a management agreement 24
538	540		delegates sufficient managerial control and independence to a manager or 25
539	541		management company to require a retail seller permit to be issued to the 26
540	542		manager. 27
541	543		(2) A delivery seller permit shall authorize a delivery sale only, originating either 28
542	544		inside or outside of the State. A delivery seller permit shall be issued to the 29
543	545		owner of the business or to the management company employed to 30
544	546		independently manage and operate the business. The Commission may 31
545	547		determine if a management agreement delegates sufficient managerial control 32
546	548		and independence to a manager or management company to require a delivery 33
547	549		seller permit to be issued to the manager. 34
548	550		(3) A remote seller permit shall authorize a remote sale only, originating either 35
549	551		inside or outside of the State. A remote seller permit shall be issued to the 36
550	552		owner of the business or to the management company employed to 37
551	553		independently manage and operate the business. The Commission may 38
552	554		determine if a management agreement delegates sufficient managerial control 39
553	555		and independence to a manager or management company to require a remote 40
554	556		seller permit to be issued to the manager. 41
555	557		(b) Each retail seller permit that is held by an establishment shall be posted in a prominent 42
556	558		place on the premises. Each delivery seller or remote seller shall post its delivery seller or remote 43
557	559		seller permit number on any advertisement, the internet, or other online service or application a 44
558	560		customer may use to submit an order and on all invoices or receipts for tobacco products 45
559	561		delivered by mail or a delivery service. 46
560	562		(c) No tobacco retail sales permit shall be issued to a business on the campus or property 47
561	563		of a public school, college, or university. 48
562	564		(d) A permit shall automatically expire and shall be surrendered to the Commission if the 49
563	565		person to whom it is issued does not commence the activity authorized by the permit within six 50 General Assembly Of North Carolina Session 2025
564		-	Page 12 ~~House Bill 430-First Edition~~
	566	+	Page 12 DRH10204-MLf-65B
565	567		months of the date the permit is effective. Before the expiration of the six-month period, the 1
566	568		Commission may waive this provision in individual cases for good cause. 2
567	569		(e) Upon issuing a permit, the Commission shall send notice of the issuance, with the 3
568	570		name and address of the permittee and the establishment, to all of the following: 4
569	571		(1) The Department of Revenue. 5
570	572		(2) The Department of Health and Human Services, Division of Mental Health, 6
571	573		Developmental Disabilities, and Substance Use Services. 7
572	574		(3) The ALE Division. 8
573	575		"§ 18D-305. Temporary permits. 9
574	576		When an application has been received in proper form, with the required application fee, the 10
575	577		Commission may issue a temporary permit for any of the activities for which permits are 11
576	578		authorized under this Chapter. A temporary permit may be revoked summarily by the 12
577	579		Commission without complying with the provisions of Chapter 150B of the General Statutes. 13
578	580		Revocation of a temporary permit or withdrawal by the Commission of a pending application by 14
579	581		a permittee possessing a temporary permit shall be effective upon service of the notice of 15
580	582		revocation or withdrawal upon the permittee at either the permittee's residence or the address 16
581	583		given for the business in the permit application or upon the expiration of five business days after 17
582	584		the notice of the revocation or withdrawal has been mailed to the permittee at either the 18
583	585		permittee's residence or the address given for the business in the permit application. No further 19
584	586		notice shall be required. 20
585	587		"§ 18D-306. Allow electronic submission of payments and forms. 21
586	588		(a) The Commission shall make all forms required by the Commission to apply for and 22
587	589		receive a permit available on the Commission's website, and the Commission shall, to the extent 23
588	590		practicable, allow for the electronic submission of these forms. Any form required by the 24
589	591		Commission to apply for and receive a permit that requires a signature may be submitted with an 25
590	592		electronic signature in accordance with Article 40 of Chapter 66 of the General Statutes and 26
591	593		notarized in accordance with Chapter 10B of the General Statutes. 27
592	594		(b) The Commission shall accept electronic payments for any fee required under this 28
593	595		Chapter to receive a permit. For purposes of this subsection, the term "electronic payment" means 29
594	596		payment by charge card, credit card, debit card, or by electronic funds transfer as defined in 30
595	597		G.S. 105-228.90. 31
596	598		(c) The Commission may charge a fee to be used to cover costs incurred by the 32
597	599		Commission in processing forms electronically and accepting payments electronically. The fee 33
598	600		authorized under this subsection may not exceed five dollars ($5.00). 34
599	601		"§ 18D-307. Tobacco sales permits and ABC permits. 35
600	602		(a) Applications for permits under this Chapter may be filed simultaneously or in 36
601	603		conjunction with applications for ABC permits under Chapter 18B of the General Statutes and 37
602	604		may be combined by the Commission in a single application. 38
603	605		(b) The Commission may use, rely upon, or incorporate by reference any information an 39
604	606		applicant for a permit under this Chapter has submitted in conjunction with an ABC permit issued 40
605	607		pursuant to Chapter 18B of the General Statutes. 41
606	608		"Article 4. 42
607	609		"Retail Activities. 43
608	610		"§ 18D-400. Responsibilities of permittee. 44
609	611		(a) For purposes of this Chapter, a retail seller permittee shall be responsible for the entire 45
610	612		premises for which the permit is issued. The permittee shall keep the premises clean, well-lighted, 46
611	613		and orderly. 47
612	614		(b) For purposes of this Chapter, a permittee shall be responsible for the actions of all 48
613	615		employees of the business for which the permit is issued. 49
614	616		(c) A permittee shall not knowingly employ in the sale or distribution of tobacco products 50
615	617		any person who has been a past permit holder under this Chapter whose permit had been revoked 51 General Assembly Of North Carolina Session 2025
616		-	~~House Bill 430-First Edition~~ Page 13
	618	+	DRH10204-MLf-65B Page 13
617	619		within the last 18 months and who had been the permit holder at the location where the person 1
618	620		would be employed. 2
619	621		(d) An employee or agent of a retail seller shall demand proof of age from a prospective 3
620	622		purchaser of tobacco products before the tobacco product is released to the purchaser, if the 4
621	623		person has reasonable grounds to believe that the prospective purchaser is under 30 years of age. 5
622	624		(e) A delivery seller and remote seller shall do both of the following: 6
623	625		(1) Perform an age verification through an independent, third-party age 7
624	626		verification service that compares information available from public records 8
625	627		to the personal information entered by the individual during the ordering 9
626	628		process to establish that the individual ordering the tobacco products is 21 10
627	629		years of age or older. 11
628	630		(2) Use a method of mailing, shipping, or delivery that requires the signature of a 12
629	631		person at least 21 years of age before the tobacco product is released to the 13
630	632		purchaser. 14
631	633		(f) Retail sellers of tobacco products shall train their employees or agents in the 15
632	634		requirements of this Chapter, to include all of the following: 16
633	635		(1) Which products the retail dealer sells meet the definition of a tobacco product. 17
634	636		(2) The age requirements for purchasing tobacco products. 18
635	637		(3) Acceptable forms of identification. 19
636	638		(4) Methods to detect fake, altered, and imposter forms of identification. 20
637	639		(5) Penalties for sales to underage persons. 21
638	640		(6) Methods of identifying potentially underage persons and to prevent underage 22
639	641		sales. 23
640	642		(g) Retail dealers shall prominently display to the ultimate consumer the following 24
641	643		statement: "N.C. LAW STRICTLY PROHIBITS THE PURCHASE OF TOBACCO 25
642	644		PRODUCTS, ALTERNATIVE NICOTINE PRODUCTS , VAPOR PRODUCTS, AND THEIR 26
643	645		COMPONENTS BY PERSONS UNDER THE AGE OF 21. PROOF OF AGE REQUIRED. " as 27
644	646		follows: 28
645	647		(1) Retail sellers shall prominently display this required statement near the point 29
646	648		of sale on a sign with letters at least 5/8 of an inch high. 30
647	649		(2) Delivery sellers and remote sellers shall prominently display this required 31
648	650		statement on any advertisement, the internet, or other online service or 32
649	651		application a customer may use to submit an order and on all invoices or 33
650	652		receipts for tobacco products delivered by mail or a delivery service. 34
651	653		"§ 18D-401. Conduct on licensed premises. 35
652	654		(a) It shall be unlawful for a permittee or the permittee's agent or employee to knowingly 36
653	655		allow any of the following kinds of conduct to occur on the licensed premises: 37
654	656		(1) Any violation of this Chapter. 38
655	657		(2) Any fighting or other disorderly conduct that can be prevented without undue 39
656	658		danger to the permittee, the permittee's employees, or patrons. 40
657	659		(3) Any violation of the controlled substances, gambling, or prostitution statutes, 41
658	660		or any other unlawful acts. 42
659	661		(b) It shall be unlawful for a permittee to fail to superintend in person or through a 43
660	662		manager the business for which a permit is issued. 44
661	663		"§ 18D-402. Miscellaneous tobacco product sales provisions. 45
662	664		(a) A permittee shall not sell tobacco products through displays accessible to the public 46
663	665		without the assistance of a permittee's employee or agent other than in an establishment open 47
664	666		only to persons 21 years of age and older. 48
665	667		(b) It shall be unlawful for any person to do any of the following: 49
666	668		(1) Produce or possess any false or facsimile permit, or for a permittee to display 50
667	669		any false or facsimile permit on the person's licensed premises. 51 General Assembly Of North Carolina Session 2025
668		-	Page 14 ~~House Bill 430-First Edition~~
	670	+	Page 14 DRH10204-MLf-65B
669	671		(2) Refuse to surrender any permit to the Commission upon lawful demand of the 1
670	672		Commission or its agents. 2
671	673		(3) Offer tobacco products for sale in a vending machine. 3
672	674		(4) Distribute tobacco products not approved or authorized by the federal Food 4
673	675		and Drug Administration. 5
674	676		(5) Sell tobacco products other than in the manufacturer's or importer's original, 6
675	677		sealed, and unopened packaging that complies with all federal labeling 7
676	678		requirements. 8
677	679		(6) Distribute or cause to be distributed samples of tobacco products. 9
678	680		"Article 5. 10
679	681		"Tobacco Product Sales to Underage Persons. 11
680	682		"§ 18D-500. Sales to persons under the age of 21. 12
681	683		If any person shall sell, aid, assist, or abet any other person in selling tobacco products to any 13
682	684		person under the age of 21 years, or if any person shall purchase tobacco products on behalf of a 14
683	685		person under the age of 21 years, the person shall be guilty of a Class 2 misdemeanor; provided, 15
684	686		however, that it shall not be unlawful to sell tobacco products to an employee or agent of a 16
685	687		tobacco retail sales permittee under the age of 21 years when possession of the tobacco product 17
686	688		is required pursuant to a tobacco retail sales permit in the performance of that person's duties of 18
687	689		employment or contract. 19
688	690		"§ 18D-501. Purchase by persons under the age of 21. 20
689	691		(a) Except as provided in subsection (b) of this section, if any person under the age of 21 21
690	692		years purchases or accepts receipt, or attempts to purchase or accept receipt, of tobacco products, 22
691	693		the person shall commit an infraction and may be required by the court to complete a tobacco 23
692	694		education program. The Department of Health and Human Services shall maintain a list of 24
693	695		available programs on its website for use by the courts for this purpose. The listed programs must 25
694	696		be at least 60 minutes in length, free of charge, and educate youth on the health effects of tobacco 26
695	697		products and tobacco cessation in a manner conforming to medical evidence. The person shall 27
696	698		not be required to pay any fine or court costs. 28
697	699		(b) If a person under the age of 21 presents or offers to any person any purported proof 29
698	700		of age which is false, fraudulent, or not actually his or her own, for the purpose of purchasing or 30
699	701		receiving any tobacco product, the person shall be guilty of a Class 2 misdemeanor. 31
700	702		(c) It shall not be unlawful for an employee or agent of a tobacco retail sales permittee 32
701	703		under the age of 21 years to accept receipt of, sell, transport, possess, or dispense tobacco 33
702	704		products when required pursuant to a tobacco retail sales permit in the performance of that 34
703	705		person's duties of employment or contract, if the employment of the person for that purpose is 35
704	706		lawful under applicable youth employment statutes and Commission rules. 36
705	707		"§ 18D-502. Aiding or abetting a person under the age of 21 to purchase or receive tobacco 37
706	708		products. 38
707	709		(a) If any person less than 21 years of age shall send a person less than 21 years of age to 39
708	710		purchase, acquire, receive, or attempt to purchase, acquire, or receive tobacco products or if any 40
709	711		person less than 21 years of age shall aid or abet a person who is less than 21 years of age in 41
710	712		purchasing, acquiring, or receiving or attempting to purchase, acquire, or receive tobacco 42
711	713		products, the person shall commit an infraction and may be required by the court to complete a 43
712	714		tobacco education program. The Department of Health and Human Services shall maintain a list 44
713	715		of available programs on its website for use by the courts for this purpose. The listed programs 45
714	716		must be at least 60 minutes in length, free of charge, and educate youth on the health effects of 46
715	717		tobacco products and tobacco cessation in a manner conforming to medical evidence. The person 47
716	718		shall not be required to pay any fine or court costs. 48
717	719		(b) If any person 21 years of age or older shall send a person less than 21 years of age to 49
718	720		purchase, acquire, receive, or attempt to purchase, acquire, or receive tobacco products, or if any 50
719	721		person 21 years of age or older shall aid or abet a person who is less than 21 years of age in 51 General Assembly Of North Carolina Session 2025
720		-	~~House Bill 430-First Edition~~ Page 15
	722	+	DRH10204-MLf-65B Page 15
721	723		purchasing, acquiring, or receiving or attempting to purchase, acquire, or receive tobacco 1
722	724		products, the person shall be guilty of a Class 2 misdemeanor. 2
723	725		"§ 18D-503. Exceptions to violations of G.S. 18D-501 and G.S. 18D-502. 3
724	726		Notwithstanding G.S. 18D-501 and G.S. 18D-502, a person under the age of 21 may lawfully 4
725	727		be enlisted by any of the following: 5
726	728		(1) Law enforcement, including the Division of Alcohol Law Enforcement, to test 6
727	729		compliance if the testing is under the direct supervision of that law 7
728	730		enforcement department and written parental consent is provided. 8
729	731		(2) The Department of Health and Human Services, pursuant to a written plan 9
730	732		prepared by the Secretary of Health and Human Services, to use persons under 10
731	733		21 years of age in annual, random, unannounced inspections, provided that 11
732	734		prior written parental consent is given for the involvement of these persons 12
733	735		and that the inspections are conducted for the sole purpose of preparing a 13
734	736		scientifically and methodologically valid statistical study of the extent of 14
735	737		success the State has achieved in reducing the availability of tobacco products 15
736	738		to persons under the age of 21, and preparing any report to the extent required 16
737	739		by section 1926 of the federal Public Health Service Act (42 U.S.C. § 17
738	740		300x-26). 18
739	741		(3) A research program affiliated with an accredited community college, college, 19
740	742		or university located in this State to test compliance as part of a scientific 20
741	743		research study to further efforts in underage tobacco use prevention, provided 21
742	744		that prior written parental consent is given for persons under 18 years of age. 22
743	745		The scientific research study must be approved by an institutional review 23
744	746		board with jurisdiction to review the study and must comply with 45 C.F.R. § 24
745	747		46. The ALE Division and the Department of Health and Human Services 25
746	748		shall be provided a copy of the study protocol 30 calendar days before it is 26
747	749		presented to the institutional review board and given an opportunity to provide 27
748	750		comments regarding the proposed research protocol to the research 28
749	751		investigators. The research investigators shall provide any comments received 29
750	752		from the ALE Division and the Department of Health and Human Services to 30
751	753		the institutional review board for review prior to the rendering of a decision 31
752	754		on the scientific research study application. A person shall not be guilty of a 32
753	755		violation of this Article when the act in question arises as part of a test of 33
754	756		compliance in a scientific research study pursuant to this subdivision. A 34
755	757		permittee shall not be in violation of this Article or subject to any 35
756	758		administrative penalty when the act in question arises as part of a test of 36
757	759		compliance in a scientific research study pursuant to this subdivision. 37
758	760		"§ 18D-504. Defense to underage sale. 38
759	761		It shall be a defense to a violation of G.S. 18D-500 if the seller does any of the following: 39
760	762		(1) Shows that the purchaser produced a drivers license, a special identification 40
761	763		card issued under G.S. 20-37.7 or issued by the state agency of any other state 41
762	764		authorized to issue similar official state special identification cards for that 42
763	765		state, a military identification card, or a passport, showing the person's age to 43
764	766		be at least the required age for purchase and bearing a physical description of 44
765	767		the person named on the card reasonably describing the purchaser. 45
766	768		(2) Produces evidence of other facts that reasonably indicated at the time of sale 46
767	769		that the purchaser was at least the required age. 47
768	770		(3) Shows that at the time of purchase, the purchaser utilized a biometric 48
769	771		identification system that demonstrated (i) the purchaser's age to be at least 49
770	772		the required age for the purchase and (ii) the purchaser had previously 50
771	773		registered with the seller or seller's agent a drivers license, a special 51 General Assembly Of North Carolina Session 2025
772		-	Page 16 ~~House Bill 430-First Edition~~
	774	+	Page 16 DRH10204-MLf-65B
773	775		identification card issued under G.S. 20-37.7 or issued by the state agency of 1
774	776		any other state authorized to issue similar official state special identification 2
775	777		cards for that state, a military identification card, or a passport showing the 3
776	778		purchaser's date of birth and bearing a physical description of the person 4
777	779		named on the document. 5
778	780		"§ 18D-505. Deferred prosecution or conditional discharge. 6
779	781		Notwithstanding G.S. 15A-1341(a1) or G.S. 15A-1341(a4), any person charged with a 7
780	782		misdemeanor under this Article shall be qualified for deferred prosecution or a conditional 8
781	783		discharge pursuant to Article 82 of Chapter 15A of the General Statutes provided the defendant 9
782	784		has not previously been placed on probation for a violation of this Article and so states under 10
783	785		oath. 11
784	786		"Article 6. 12
785	787		"Miscellaneous. 13
786	788		"§ 18D-600. Restitution. 14
787	789		When a person is convicted of a violation of the tobacco retail sales laws, the court may order 15
788	790		the person to make restitution to any law enforcement agency for reasonable expenditures made 16
789	791		in purchasing tobacco products from the person or the person's agent as part of an investigation 17
790	792		leading to the person's conviction. 18
791	793		"§ 18D-601. Criminal penalty. 19
792	794		Unless a different punishment is otherwise expressly stated, any person who violates any 20
793	795		provisions of this Chapter shall be guilty of a Class 1 misdemeanor. In addition, the court may 21
794	796		impose the provisions of G.S. 18D-201, 18D-202, and 18D-600. 22
795	797		"Article 7. 23
796	798		"Certification and Directory of Vapor Products and Consumable Products. 24
797	799		"§ 18D-700. Certification and Directory of Vapor Products and Consumable Products. 25
798	800		(a) As required by Part 3 of Article 4 of Chapter 143B of the General Statutes, the 26
799	801		Secretary shall certify vapor products and consumable products eligible for retail sale in this State 27
800	802		and shall list them on a directory. 28
801	803		(b) The following penalties shall apply to violations of the certification requirements for 29
802	804		consumable products and vapor products required by Part 3 of Article 4 of Chapter 143B of the 30
803	805		General Statutes: 31
804	806		(1) Retailer, distributor, or wholesaler fines. – A retailer, distributor, or 32
805	807		wholesaler who offers for sale a consumable product or vapor product 33
806	808		intended for ultimate retail sale in this State that is not included in the directory 34
807	809		is subject to a warning with a mandatory reinspection of the retailer within 30 35
808	810		days of the violation of Part 3 of Article 4 of Chapter 143B of the General 36
809	811		Statutes. The following apply: 37
810	812		a. For a second violation of this type within a 12-month period, the fine 38
811	813		shall be at least five hundred dollars ($500.00) but not more than seven 39
812	814		hundred fifty dollars ($750.00) and, if licensed, the licensee's license 40
813	815		shall be suspended for 30 days. 41
814	816		b. For a third or subsequent violation of this type within a 12-month 42
815	817		period, the fine shall be at least one thousand dollars ($1,000) but not 43
816	818		more than one thousand five hundred dollars ($1,500) and, if licensed, 44
817	819		the licensee's license shall be revoked. 45
818	820		c. Upon a second or subsequent violation of this type, consumable 46
819	821		products or vapor products that are not on the directory as required by 47
820	822		G.S. 143B-245.12, and are possessed by a retailer, distributor, or 48
821	823		wholesaler, shall be subject to seizure, forfeiture, and destruction. The 49
822	824		cost of such seizure, forfeiture, and destruction shall be borne by the 50
823	825		person from whom the products are confiscated, except that no 51 General Assembly Of North Carolina Session 2025
824		-	~~House Bill 430-First Edition~~ Page 17
	826	+	DRH10204-MLf-65B Page 17
825	827		products may be seized from a consumer who has made a bona fide 1
826	828		purchase of such product. The Secretary may store and dispose of the 2
827	829		seized products as appropriate, in accordance with federal, State, and 3
828	830		local laws pertaining to storage and disposal of such products. 4
829	831		(2) Manufacturer penalties. – A manufacturer whose consumable products or 5
830	832		vapor products are not listed in the directory as required by G.S. 143B-245.12, 6
831	833		and who causes the products that are not listed to be sold for retail sale in 7
832	834		North Carolina, whether directly or through an importer, distributor, 8
833	835		wholesaler, retailer, or similar intermediary or intermediaries, is subject to a 9
834	836		civil penalty of ten thousand dollars ($10,000) for each individual product 10
835	837		offered for sale in violation of Part 3 of Article 4 of Chapter 143B of the 11
836	838		General Statutes until the offending product is removed from the market or 12
837	839		until the offending product is properly listed on the directory. In addition, any 13
838	840		manufacturer that falsely represents any information required by a 14
839	841		certification form shall be guilty of a misdemeanor for each false 15
840	842		representation. 16
841	843		(c) In an action to enforce this section, the State shall be entitled to recover costs, 17
842	844		including the costs of investigation, expert witness fees, and reasonable attorneys' fees. 18
843	845		(d) A repeated violation of the requirements of Part 3 of Article 4 of Chapter 143B of the 19
844	846		General Statutes shall constitute a deceptive trade practice under Chapter 75 of the General 20
845	847		Statutes." 21
846	848		22
847	849		PART II. CONFORMING CHANGES 23
848	850		SECTION 2.(a) G.S. 14-313 is repealed. 24
849	851		SECTION 2.(b) G.S. 7B-2508.1(2) reads as rewritten: 25
850	852		"(2) Criminal gang activity. – The commission of, attempted commission of, or 26
851	853		solicitation, coercion, or intimidation of another person to commit (i) any 27
852	854		offense under Article 5 of Chapter 90 of the General Statutes or (ii) any 28
853	855		offense under Chapter 14 of the General Statutes except Article 9, 22A, 40, 29
854	856		46, or 59 thereof, and further excepting G.S. 14-82, 14-145, 14-183, 14-184, 30
855	857		14-186, 14-190.9, 14-247, 14-248, or 14-313 or 14-248 thereof, and either of 31
856	858		the following conditions is met: 32
857	859		a. The offense is committed with the intent to benefit, promote, or further 33
858	860		the interests of a criminal gang or for the purposes of increasing a 34
859	861		person's own standing or position within a criminal gang. 35
860	862		b. The participants in the offense are identified as criminal gang members 36
861	863		acting individually or collectively to further any criminal purpose of a 37
862	864		criminal gang." 38
863	865		SECTION 2.(c) G.S. 14-50.16A(2) reads as rewritten: 39
864	866		"(2) Criminal gang activity. – The commission of, attempted commission of, or 40
865	867		solicitation, coercion, or intimidation of another person to commit (i) any 41
866	868		offense under Article 5 of Chapter 90 of the General Statutes or (ii) any 42
867	869		offense under Chapter 14 of the General Statutes except Article 9, 22A, 40, 43
868	870		46, or 59 thereof, and further excepting G.S. 14-82, 14-145, 14-183, 14-184, 44
869	871		14-186, 14-190.9, 14-247, 14-248, or 14-313 or 14-248 thereof, and either of 45
870	872		the following conditions is met: 46
871	873		a. The offense is committed with the intent to benefit, promote, or further 47
872	874		the interests of a criminal gang or for the purposes of increasing a 48
873	875		person's own standing or position within a criminal gang. 49 General Assembly Of North Carolina Session 2025
874		-	Page 18 ~~House Bill 430-First Edition~~
	876	+	Page 18 DRH10204-MLf-65B
875	877		b. The participants in the offense are identified as criminal gang members 1
876	878		acting individually or collectively to further any criminal purpose of a 2
877	879		criminal gang." 3
878	880		SECTION 2.(d) G.S. 15A-145 reads as rewritten: 4
879	881		"§ 15A-145. Expunction of records for first offenders under the age of 18 at the time of 5
880	882		conviction of misdemeanor; expunction of certain other misdemeanors. 6
881	883		(a) Whenever any person who has not previously been convicted of any felony, or 7
882	884		misdemeanor other than a traffic violation, under the laws of the United States, the laws of this 8
883	885		State or any other state, (i) pleads guilty to or is guilty of a misdemeanor other than a traffic 9
884	886		violation, and the offense was committed before the person attained the age of 18 years, or (ii) 10
885	887		pleads guilty to or is guilty of a misdemeanor possession of alcohol pursuant to 11
886	888		G.S. 18B-302(b)(1), or the offense of the sale of a tobacco product to a person under the age of 12
887	889		21 years pursuant to G.S. 18D-500, and the offense was committed before the person attained 13
888	890		the age of 21 years, he the person may file a petition in the court of the county where he the 14
889	891		person was convicted for expunction of the misdemeanor from his the person's criminal record. 15
890	892		The petition cannot be filed earlier than: (i) two years after the date of the conviction, or (ii) the 16
891	893		completion of any period of probation, whichever occurs later, and the petition shall contain, but 17
892	894		not be limited to, the following: 18
893	895		(1) An affidavit by the petitioner that he the petitioner has been of good behavior 19
894	896		for the two-year period since the date of conviction of the misdemeanor in 20
895	897		question and has not been convicted of any felony, or misdemeanor other than 21
896	898		a traffic violation, under the laws of the United States or the laws of this State 22
897	899		or any other state. 23
898	900		(2) Verified affidavits of two persons who are not related to the petitioner or to 24
899	901		each other by blood or marriage, that they know the character and reputation 25
900	902		of the petitioner in the community in which he the petitioner lives and that his 26
901	903		the petitioner's character and reputation are good. 27
902	904		(3) A statement that the petition is a motion in the cause in the case wherein the 28
903	905		petitioner was convicted. 29
904	906		(4) Repealed by Session Laws 2010-174, s. 2, effective October 1, 2010, and 30
905	907		applicable to petitions for expunctions filed on or after that date. 31
906	908		(4a) An application on a form approved by the Administrative Office of the Courts 32
907	909		requesting and authorizing a name-based State and national criminal record 33
908	910		check by the State Bureau of Investigation using any information required by 34
909	911		the Administrative Office of the Courts to identify the individual and a search 35
910	912		of the confidential record of expunctions maintained by the Administrative 36
911	913		Office of the Courts. The application shall be filed with the clerk of superior 37
912	914		court. The clerk of superior court shall forward the application to the State 38
913	915		Bureau of Investigation and to the Administrative Office of the Courts, which 39
914	916		shall conduct the searches and report their findings to the court. 40
915	917		(5) An affidavit by the petitioner that no restitution orders or civil judgments 41
916	918		representing amounts ordered for restitution entered against him the petitioner 42
917	919		are outstanding. 43
918	920		The petition shall be served upon the district attorney of the court wherein the case was tried 44
919	921		resulting in conviction. The district attorney shall have 10 days thereafter in which to file any 45
920	922		objection thereto and shall be duly notified as to the date of the hearing of the petition. 46
921	923		The judge to whom the petition is presented is authorized to call upon a probation officer for 47
922	924		any additional investigation or verification of the petitioner's conduct during the two-year period 48
923	925		that he the judge deems desirable. 49
924	926		… 50 General Assembly Of North Carolina Session 2025
925		-	~~House Bill 430-First Edition~~ Page 19
	927	+	DRH10204-MLf-65B Page 19
926	928		(b) If the court, after hearing, finds that the petitioner had remained of good behavior and 1
927	929		been free of conviction of any felony or misdemeanor, other than a traffic violation, for two years 2
928	930		from the date of conviction of the misdemeanor in question, the petitioner has no outstanding 3
929	931		restitution orders or civil judgments representing amounts ordered for restitution entered against 4
930	932		him, and (i) petitioner was not 18 years old at the time of the offense in question, or (ii) petitioner 5
931	933		was not 21 years old at the time of the offense of possession of alcohol pursuant to 6
932	934		G.S. 18B-302(b)(1), or the offense of the sale of a tobacco product to a person under the age of 7
933	935		21 years pursuant to G.S. 18D-500, it shall order that such person the petitioner be restored, in 8
934	936		the contemplation of the law, to the status he the petitioner occupied before such arrest or 9
935	937		indictment or information. 10
936	938		(b1) No person as to whom such order has been entered shall be held thereafter under any 11
937	939		provision of any laws to be guilty of perjury or otherwise giving a false statement by reason of 12
938	940		his the person's failure to recite or acknowledge such arrest, or indictment, information, or trial, 13
939	941		or response to any inquiry made of him the person for any purpose. This subsection shall not 14
940	942		apply to a sentencing hearing when the person has been convicted of a subsequent criminal 15
941	943		offense. 16
942	944		…." 17
943	945		SECTION 2.(e) G.S. 15A-150(a)(6) reads as rewritten: 18
944	946		"(6) Persons granted a dismissal upon completion of a conditional discharge under 19
945	947		G.S. 14-50.29, 14-204, 14-277.8, 14-313(f), 15A-1341(a4), 18D-505, 90-96, 20
946	948		or 90-113.14." 21
947	949		SECTION 2.(f) G.S. 18B-203(a) reads as rewritten: 22
948	950		"§ 18B-203. Powers and duties of the Commission. 23
949	951		(a) Powers. – The Commission shall have authority to:to do all of the following: 24
950	952		(1) Administer the ABC laws;laws. 25
951	953		(2) Provide for enforcement of the ABC laws, in conjunction with the ALE 26
952	954		Division;Division. 27
953	955		(2a) Provide for the enforcement of the tobacco retail sales laws as set forth in 28
954	956		Chapter 18D of the General Statutes, in conjunction with the ALE Division. 29
955	957		(3) Set the prices of alcoholic beverages sold in local ABC stores as provided in 30
956	958		Article 8;8. 31
957	959		(4) Require reports and audits from local boards as provided in 32
958	960		G.S. 18B-205;G.S. 18B-205. 33
959	961		(5) Determine what brands of alcoholic beverages may be sold in this State;State. 34
960	962		(6) Contract for State ABC warehousing, as provided in 35
961	963		G.S. 18B-204;G.S. 18B-204. 36
962	964		(7) Dispose of damaged alcoholic beverages, as provided in 37
963	965		G.S. 18B-806;G.S. 18B-806. 38
964	966		(8) Remove for cause any member or employee of a local board;board. 39
965	967		(9) Supervise or disapprove purchasing by any local board and inspect all records 40
966	968		of purchases by local boards;boards. 41
967	969		(10) Approve or disapprove rules adopted by any local board;board. 42
968	970		(11) Approve or disapprove the opening and location of ABC stores, as provided 43
969	971		in Article 8;8. 44
970	972		(12) Issue ABC permits, and impose sanctions against permittees;permittees. 45
971	973		(12a) Issue tobacco retail sales permits and impose sanctions against permittees as 46
972	974		set forth in Chapter 18D of the General Statutes. 47
973	975		(13) Provide for the testing of alcoholic beverages, as provided in 48
974	976		G.S. 18B-206;G.S. 18B-206. 49
975	977		(14) Fix the amount of bailment charges and bailment surcharges to be assessed on 50
976	978		liquor shipped from a Commission warehouse;warehouse. 51 General Assembly Of North Carolina Session 2025
977		-	Page 20 ~~House Bill 430-First Edition~~
	979	+	Page 20 DRH10204-MLf-65B
978	980		(15) Collect bailment charges and bailment surcharges from local boards;boards. 1
979	981		(16) Notwithstanding any law to the contrary, enter into contracts for design and 2
980	982		construction of a warehouse or warehouses and supervise work and materials 3
981	983		used in the construction, as provided in G.S. 18B-204;G.S. 18B-204. 4
982	984		… 5
983	985		(18) Provide for the distribution and posting of warning signs to local ABC boards 6
984	986		regarding the dangers of alcohol consumption during pregnancy as required 7
985	987		under G.S. 18B-808;G.S. 18B-808. 8
986	988		…." 9
987	989		SECTION 2.(g) G.S. 18B-500 reads as rewritten: 10
988	990		"§ 18B-500. Alcohol law-enforcement agents. 11
989	991		… 12
990	992		(b) Subject Matter Jurisdiction. – After taking the oath prescribed for a peace officer, an 13
991	993		alcohol law-enforcement agent shall have authority to arrest and take other investigatory and 14
992	994		enforcement actions for any criminal offense: 15
993	995		… 16
994	996		(2) Encountered or otherwise discovered while investigating or enforcing matters 17
995	997		for the North Carolina Alcoholic Beverage Control Commission or the North 18
996	998		Carolina Education Lottery Commission or encountered or otherwise 19
997	999		discovered while investigating or enforcing the provisions of this Chapter, 20
998	1000		Chapter 18C of the General Statutes, G.S. 14-313, Chapter 18D of the General 21
999	1001		Statutes, or Parts 1 and 2 of Article 37 of Chapter 14 of the General Statutes. 22
1000	1002		(3) Encountered or otherwise discovered while carrying out any duty or function 23
1001	1003		assigned to the Division by law. 24
1002	1004		(4) Occurring in an agent's presence. 25
1003	1005		(5) When assisting another law enforcement agency. 26
1004	1006		… 27
1005	1007		(b2) Primary Responsibilities. – The primary responsibilities of an alcohol 28
1006	1008		law-enforcement agent are the enforcement of this Chapter, Chapter 18C of the General Statutes, 29
1007	1009		G.S. 14-313, Chapter 18D of the General Statutes, and Parts 1 and 2 of Article 37 of Chapter 14 30
1008	1010		of the General Statutes. 31
1009	1011		…." 32
1010	1012		SECTION 2.(h) Article 9 of Chapter 18B of the General Statutes is amended by 33
1011	1013		adding a new section to read: 34
1012	1014		"§ 18B-908. ABC permits and tobacco retail sales permits. 35
1013	1015		(a) Applications for permits under this Chapter may be filed simultaneously or in 36
1014	1016		conjunction with applications for tobacco retail sales permits under Chapter 18D of the General 37
1015	1017		Statutes and may be combined by the Commission in a single application. 38
1016	1018		(b) The Commission may use, rely upon, or incorporate by reference any information an 39
1017	1019		applicant for a permit under this Chapter has submitted in conjunction with a tobacco retail sales 40
1018	1020		permit issued pursuant to Chapter 18D of the General Statutes." 41
1019	1021		SECTION 2.(i) G.S. 75D-3(c)(1)b. reads as rewritten: 42
1020	1022		"b. Chapter 14 of the General Statutes of North Carolina except 43
1021	1023		Articles 9, 22A, 38, 40, 43, 46, 47, 59 thereof; and further 44
1022	1024		excepting G.S. Sections 14-78.1, 14-82, 14-86, 14-145, 45
1023	1025		14-146, 14-147, 14-177, 14-178, 14-179, 14-183, 14-184, 46
1024	1026		14-186, 14-190.9, 14-195, 14-197, 14-201, 14-202, 14-247, 47
1025	1027		14-248, 14-313 and 14-248 thereof." 48
1026	1028		SECTION 2.(j) G.S. 105-113.4F(b)(2) reads as rewritten: 49
1027	1029		"(2) Comply with the age verification requirements in 50
1028	1030		G.S. 14-313(b2).G.S. 18D-400(e)." 51 General Assembly Of North Carolina Session 2025
1029		-	~~House Bill 430-First Edition~~ Page 21
	1031	+	DRH10204-MLf-65B Page 21
1030	1032		SECTION 2.(k) G.S. 143B-245.10 reads as rewritten: 1
1031	1033		"Part 3. Certification and Directory of Vapor Products and Consumable Products. 2
1032	1034		"§ 143B-245.10. Definitions. 3
1033	1035		The following definitions apply throughout this Part: 4
1034	1036		(1) Alternative nicotine product. – As defined in 5
1035	1037		G.S. 14-313(a)(1).G.S. 18D-100. 6
1036	1038		(2) Consumable product. – As defined in G.S. 14-313(a)(1a).G.S. 18D-100. 7
1037	1039		(3) Distribute. – As defined in G.S. 14-313(a)(1b).G.S. 18D-100. 8
1038	1040		(4) FDA. – As defined in G.S. 14-313(a)(1c).The United States Food and Drug 9
1039	1041		Administration. 10
1040	1042		(5) Secretary. – The Secretary of the Department of Revenue. 11
1041	1043		(6) Timely Filed Premarket Tobacco Product Application. – As defined in 12
1042	1044		G.S. 14-313(a)(3c).An application pursuant to 21 U.S.C. § 387j for a vapor 13
1043	1045		product or consumable product containing nicotine derived from tobacco 14
1044	1046		marketed in the United States as of August 8, 2016, that was submitted to the 15
1045	1047		United States Food and Drug Administration on or before September 9, 2020, 16
1046	1048		and accepted for filing. 17
1047	1049		(7) Tobacco product. – As defined in G.S. 14-313(a)(4).G.S. 18D-100. 18
1048	1050		(8) Vapor product. – As defined in G.S. 14-313(a)(5).G.S. 18D-100." 19
1049	1051		SECTION 2.(l) G.S. 143B-245.11(a)(2) reads as rewritten: 20
1050	1052		"(2) The manufacturer submitted a Timely Filed Premarket Tobacco Product 21
1051	1053		Application as defined in G.S. 14-313(a)(3c) G.S. 143B-245.10 for the vapor 22
1052	1054		product or consumable product; and the application either remains under 23
1053	1055		review by the FDA or has received a denial order that has been and remains 24
1054	1056		stayed by the FDA or court order, rescinded by the FDA, or vacated by a 25
1055	1057		court." 26
1056	1058		SECTION 2.(m) G.S. 143B-245.14(a)(1) reads as rewritten: 27
1057	1059		"(1) A manufacturer not registered to do business in the State shall, as a condition 28
1058	1060		precedent to having its name or its products listed and retained in the directory, 29
1059	1061		appoint and continually engage without interruption a registered agent in this 30
1060	1062		State for service of process on whom all process and any action or proceeding 31
1061	1063		arising out of the enforcement of this Part or G.S. 14-313(g) and (h) 32
1062	1064		G.S. 18D-700(a) and (b) may be served. The manufacturer shall provide to the 33
1063	1065		Secretary the name, address, and telephone number of its agent for service of 34
1064	1066		process and shall provide any other information relating to its agent as may be 35
1065	1067		requested by the Secretary." 36
1066	1068		SECTION 2.(n) G.S. 143B-245.16 reads as rewritten: 37
1067	1069		"§ 143B-245.16. Rules; use of fees; report. 38
1068	1070		… 39
1069	1071		(b) Use of Fees and Penalties. – The fees received under this Part and the penalties 40
1070	1072		collected under G.S. 14-313(h) G.S. 18D-700(b) by the Department of Revenue shall be used by 41
1071	1073		the Department of Revenue exclusively for processing the certifications, operating and 42
1072	1074		maintaining the directory, and enforcement of this Part. 43
1073	1075		(c) Report. – Beginning on January 31, 2026, and annually thereafter, the Secretary shall 44
1074	1076		provide a report to the legislature regarding the status of the directory, manufacturers and 45
1075	1077		products included in the directory, revenue and expenditures related to administration of this 46
1076	1078		section, Part, and enforcement activities undertaken pursuant to this section, Part, including the 47
1077	1079		number of stores that have been inspected and the results from such inspections." 48
1078	1080		49
1079	1081		PART III. MISCELLANEOUS 50 General Assembly Of North Carolina Session 2025
1080		-	Page 22 ~~House Bill 430-First Edition~~
	1082	+	Page 22 DRH10204-MLf-65B
1081	1083		SECTION 3.(a) Prosecutions for offenses committed before the effective date of 1
1082	1084		this act are not abated or affected by this act, and the statutes that would be applicable but for 2
1083	1085		this act remain applicable to those prosecutions. 3
1084	1086		SECTION 3.(b) Effective March 1, 2026, the ABC Commission may issue tobacco 4
1085	1087		retail sales permits as authorized by Section 1 of this act effective for the period of May 1, 2026, 5
1086	1088		through April 30, 2027. 6
1087	1089		SECTION 3.(c) G.S. 18D-100, 18D-101, 18D-104, 18D-300 through 18D-302, and 7
1088	1090		18D-304 through 18D-307, as enacted by Section 1 of this act, are effective when this act 8
1089	1091		becomes law and apply to permits effective on or after May 1, 2026. The remainder of Sections 9
1090	1092		1 through 3 of this act becomes effective May 1, 2026, and applies to offenses committed on or 10
1091	1093		after that date. The remainder of this act is effective when it becomes law. 11