Bill Summary for H 900 (2023-2024)

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Summary date: 

Jun 20 2024

Bill Information:

View NCGA Bill Details2023-2024 Session
House Bill 900 (Public) Filed Wednesday, April 24, 2024
AN ACT TO PROVIDE CONTINUED RECOGNITION OF THE WAKE YOUNG MEN'S LEADERSHIP ACADEMY AND THE WAKE YOUNG WOMEN'S LEADERSHIP ACADEMY AS COOPERATIVE INNOVATIVE HIGH SCHOOLS, TO REQUIRE THE STATE BOARD OF EDUCATION TO APPROVE THE SUBSTITUTION OF A NEW PARTNER INSTITUTION OF HIGHER EDUCATION FOR THOSE SCHOOLS, AND TO REGULATE TOBACCO PRODUCTS.
Intro. by Paré, Crawford, Liu, Cervania.

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Bill summary

Senate committee substitute to the 2nd edition deletes the appropriation provided for tuition payments for cooperative innovative high schools and adds the following new content.

Amends GS 14-313, governing youth access to tobacco products. Replaces the term tobacco derived product with the term alternative nicotine product, defined as any noncombustible product that contains natural or synthetic nicotine but does not contain tobacco and intended for human consumption. The term excludes vapor products or FDA-regulated products. Makes conforming changes throughout to refer to alternative nicotine products. Adds and defines consumable product, FDA, Secretary (Secretary of the Department of Revenue), and timely filed premarket tobacco application. Removes outdated language regarding the removal of vending machines distributing various tobacco and vapor products. Bars local governments from regulating the sale, distribution, display or promotion of alternative nicotine products on or after December 1, 2024. Requires the Secretary to certify and list on a directory vapor products and consumable products eligible for retail sale in the State pursuant to new Part 3, Article 4, GS Chapter 143B (Part 3). Sets penalties for violations of the certification requirements for consumable products and vapor products in new Part 3. Penalties for violations by retailers, distributors, or wholesalers include warnings and mandatory reinspections, fines, license suspensions and revocations, and product seizure, forfeiture and destruction. Penalties for manufacturers include daily fines. Makes it a misdemeanor offense for a manufacturer to falsely represent any information required by a certification form. Makes enforcement costs recoverable by the State. Deems repeated violations a deceptive trade practice under GS Chapter 75.

Enacts Part 3 of Article 4, GS Chapter 143B (Part 3), requiring manufacturers of vapor products and consumable products sold for retail in the State to annually execute and deliver a certification to the Secretary, beginning March 1, 2025. Defines 8 terms by statutory cross reference to GS 14-313, as amended. Details required certification criteria and requires an initial processing fee of $2,000, with a renewal fee of $500. Provides for certification form content and confidentiality of commercial or financial information. Requires manufacturers to notify the Secretary within 30 days of any material change to the certification. Requires the Secretary to develop, maintain, and make publicly available a directory listing all manufacturers that have provided compliant certifications. Details required directory content, including categories and flavors of products, and lists manufacturers excluded from the directory due to certification deficiencies. Requires the Secretary to make monthly updates to the directory and establish a process to inform licensed retailers, distributors, and wholesalers of the directory's publication and updates. Provides a process for removal from the directory that includes 30 days' notice and an opportunity to cure deficiencies.

Prohibits the retail sale of consumable products or vapor products not included in the directory, beginning the later of May 1, 2025, or the date the Department of Revenue first makes the directory available. Allows retailers 60 days from the first date the directory is available for inspection to sell or remove and return products that were in its inventory and not included in the directory, and distributors and wholesalers the same period to remove those products which are intended for ultimate retail sale from their inventory. Requires manufacturers not registered to do business in the State and importers of foreign manufacturers to have a registered agent. Details required information to be provided to the Secretary for registered agents and the duty of manufacturers to give notice prior to termination of their authority and appointment of a new agent. Authorizes unannounced compliance checks of retailers, distributors and wholesalers that sell or distribute consumable products or vapor products to be performed by the Secretary or its designee, which can include local law enforcement. Allows for persons to report observed violations to the Secretary. Requires annual publication of compliance check results, with results publicly available upon request.

Directs the Secretary to adopt implementing rules. Provides for fees and penalties under GS 14-313 and Part 3 to be used by DOR for processing certifications, operating and maintaining the directory, and enforcement. Directs the Secretary to annually report, beginning January 31, 2026, to the NCGA on the directory and its contents, administration revenue and expenditures, and enforcement actions. 

Makes changes to GS 14-313 and new Part 3 effective December 1, 2024.

Makes organizational changes. Changes the act's titles.