GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 561
Short Title: 2025 Youth End Nicotine Dependence Act. (Public)
Sponsors: Representatives Cervania, White, and Lambeth (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
March 31, 2025
*H561 -v-1*
A BILL TO BE ENTITLED 1
AN ACT ENACTING THE "YOUTH END NICOTINE DEPENDENCE ACT" TO 2
ESTABLISH A TOBACCO USE PREVENTION FUND WITHIN THE DEPARTMEN T 3
OF HEALTH AND HUMAN SERVICES SUPPORTED B Y ANNUAL 4
APPROPRIATIONS FROM THE TOBACCO MASTER S ETTLEMENT AGREEMENT. 5
Whereas, in North Carolina, the use of electronic cigarettes among high school 6
students rose one thousand one hundred twenty-nine percent (1,129%) between 2011 and 2019; 7
and 8
Whereas, in North Carolina, twenty-seven and three-tenths percent (27.3%) of youth 9
in high school and ten and four-tenths percent (10.4%) of youth in middle school used tobacco 10
products in 2019; and 11
Whereas, electronic cigarettes are tobacco products under North Carolina law; and 12
Whereas, youth are becoming addicted to electronic cigarettes at an alarming rate and 13
are finding it difficult to quit; and 14
Whereas, the United States Surgeon General has reported that use of products 15
containing nicotine in any form among young people is unsafe, secondhand electronic cigarette 16
aerosol that is exhaled into the air by users is not harmless, and states must take action to prevent 17
harm rather than waiting for harm to occur; and 18
Whereas, evidence shows that funding to create state and community interventions 19
that encourage individuals to avoid tobacco use and help perpetuate social norms that discourage 20
tobacco use are some of the most effective ways to prevent tobacco use and tobacco-related 21
chronic disease and death among youth; and 22
Whereas, North Carolina receives approximately one hundred forty million dollars 23
($140,000,000) every year from the Tobacco Master Settlement Agreement, which was intended 24
to be used for tobacco use prevention programs; and 25
Whereas, by spending a fraction of the Tobacco Master Settlement Agreement funds 26
on prevention, North Carolina can save on future medical costs caused by tobacco-related 27
illnesses and prevent thousands of youth from becoming daily tobacco users; and 28
Whereas, the General Assembly finds that an investment of seventeen million dollars 29
($17,000,000) per year in tobacco use prevention programs is required to prevent youth electronic 30
cigarette nicotine dependence in North Carolina; Now, therefore, 31
The General Assembly of North Carolina enacts: 32
SECTION 1. This act shall be known and may be cited as the "Youth End Nicotine 33
Dependence Act." 34
SECTION 2. G.S. 143C-9-3(a1) reads as rewritten: 35 General Assembly Of North Carolina Session 2025
Page 2 House Bill 561-First Edition
"(a1) Each year, the following amounts are appropriated from the Settlement Reserve Fund: 1
(i) the sum of twenty-five million dollars ($25,000,000) from the Settlement Reserve Fund is 2
appropriated to The Golden L.E.A.F. (Long-Term Economic Advancement Foundation), Inc., a 3
nonprofit corporation, and these corporation and (ii) the sum of seventeen million dollars 4
($17,000,000) to the Tobacco Use Prevention Fund established under G.S. 143C-9-3.1. The 5
funds shall appropriated to The Golden L.E.A.F., Inc., are not be subject to G.S. 143C-6-23. The 6
remainder of the funds credited to the Settlement Reserve Fund each fiscal year shall be 7
transferred to the General Fund and included in General Fund availability as nontax revenue." 8
SECTION 3. Article 9 of Chapter 143C of the General Statutes is amended by adding 9
a new section to read: 10
"§ 143C-9-3.1. Tobacco Use Prevention Fund. 11
(a) Definitions. – The following definitions apply in this section: 12
(1) Department. – The Department of Health and Human Services. 13
(2) Fund. – The Tobacco Use Prevention Fund established under subsection (b) 14
of this section. 15
(b) Establishment and Purpose. – The Tobacco Use Prevention Fund is established as an 16
interest-bearing special fund in the Department of Health and Human Services, Division of Public 17
Health, Chronic Disease and Injury Section. The purpose of the Fund is to prevent the use of new 18
and emerging tobacco products, including electronic cigarettes, especially among youth and 19
people of childbearing age. The Fund shall consist of the amounts appropriated to the Fund from 20
the Settlement Reserve Fund pursuant to G.S. 143C-9-3(a1). Any balance remaining in the Fund 21
at the end of any fiscal year is carried forward in the Fund for the next succeeding fiscal year for 22
the purposes set forth in this section. 23
(c) Use of Moneys. – The Department is prohibited from expending moneys in the Fund 24
for any purposes other than the administrative purposes authorized by subsection (d) of this 25
section and the following: 26
(1) To fund local health departments through a regional infrastructure to provide 27
community-based education and training of youth leaders, schools, and local 28
agencies regarding Centers for Disease Control and Prevention 29
evidence-based tobacco use prevention and cessation interventions, including 30
interventions addressing e-cigarettes. 31
(2) To fund evidence-based media and education campaigns on the health risks 32
of tobacco use, including e-cigarettes. 33
(3) To increase military readiness of members in active military service in North 34
Carolina, including members of the North Carolina National Guard and 35
military reserve components, through tobacco use prevention and cessation 36
policy, systems, and environmental change. 37
(4) To provide grants to community colleges to support a healthy, tobacco-free 38
campus. 39
(5) To track tobacco use and exposure, including exposure to e-cigarettes and 40
emerging tobacco products, among young people and populations most at risk 41
for tobacco use. 42
(6) To provide technical assistance and oversight of regional tobacco use 43
prevention programs. 44
(7) To conduct an independent evaluation of the reach and effectiveness of the 45
State's tobacco use prevention programs. 46
(d) Fund Administration. – The Department shall exercise administrative control over the 47
Fund and may use up to ten percent (10%) of the amount appropriated to the Fund each fiscal 48
year from the Settlement Reserve Fund for administrative purposes. The Department shall 49
develop guidelines for administering the Fund that are consistent with this section. 50 General Assembly Of North Carolina Session 2025
House Bill 561-First Edition Page 3
(e) Annual Report. – Annually on March 1, the Department of Health and Human 1
Services shall report to the Joint Legislative Oversight Committee on Health and Human Services 2
and the Fiscal Research Division on the expenditures made from the Fund during the preceding 3
fiscal year. The report shall identify each expenditure by recipient and purpose and shall indicate 4
the authority under this section for the expenditure." 5
SECTION 4. This act becomes effective July 1, 2025. 6