Amends 15A-1341(a1) regarding deferred prosecution for convictions of Class H and I felonies and misdemeanors, adding language that gives the District Attorney discretion to waive prior convictions that did not involve moral turpitude and place a defendant on deferred prosecution. Enacts new subsection (a7) titled Misdemeanor Deferred Prosecutions for Defendant 18 years old or Younger, providing that defendants 18 years old or younger at the time of an offense that otherwise qualifies for deferred prosecution as described in GS 15A-1341(a1) are entitled to automatic placement on deferred prosecution. Provides that automatic deferral does not apply to misdemeanors committed between individuals with a personal relationship, as defined in GS 50B-1(b). Such defendants are also entitled to automatic expunction at the conclusion of a successful deferred prosecution, as well as dismissal of the charges.

Also amends GS 15A-146, concerning the expunction of records when charges are dropped, providing that for any misdemeanors dismissed pursuant to GS 15A-1341(a1) above, a petition must be filed on the defendant's behalf by the clerk of superior court automatically after dismissal of charges and payment of of $175.

Appropriates $1,000 from the General Fund to the Administrative Office of the Courts in nonrecurring funds for the 2016-17 fiscal year to implement the act.

Effective December 1, 2016, applying to all offenses committed on or after that date.