House committee substitute to the 1st edition makes the following changes.

Amends GS 115C-320 by amending the items that each local board of education must record for each of its employees, to include (1) current total compensation, consisting of total compensation from all funding sources, including at least salary, and reimbursements and allowances, including reimbursements and allowances related to travel (was, current compensation, including salary supplements, bonuses, reimbursements, and allowances) and (2) date and amount of each increase or decrease in compensation with that local board of education (was, date and amount of each increase or decrease in total compensation from all funding sources, including at least salary, salary supplements and bonuses, and reimbursements and allowances, including reimbursements and allowances related to travel). Amends the information that the local board of education must annually publish for each central office employee total compensation so that it no longer includes salary supplements and bonuses. Makes additional organizational and clarifying changes.

House committee substitute to the 1st edition rewrites the act so that it now provides as follows.

Enacts GS 14-401.28, concerning the willful destruction, alteration, or falsification of, or willful omission of information from medical records, as follows. Makes the following criminal offenses as described, unless the conduct is covered under some other provision of law providing greater punishment:

• A Class H felony when any health care provider knowingly and willfully destroys, alters, falsifies, or omits (collectively, “tamper with” or “tampering”)  information from a medical record, directs any individual to tamper with information from a medical record, or conspires with one or more health care providers to tamper with information from a medical record for the purpose of concealing  the commission of a medical error, or abuse or neglect of a patient, by a health care provider in providing medical services that caused serious injury to or the death of a patient.
• A Class A1 misdemeanor when any health care provider knowingly and willfully tampers with information from a medical record, directs any individual to tamper with information from a medical record, or conspires with one or more health care providers to tamper with information from a medical record for the purpose of concealing any material fact not covered under those acts constituting a Class H felony above, relating to any potential claim  or cause of action arising from a health care provider providing medical services.
• A Class I felony when any health care provider or other individual offers or receives money or any other thing of value in exchange for the destruction of, alteration of, falsification of, or omission of information from a medical record for either purpose identified above.

Specifies that nothing in the statute affects any civil remedies for actions punishable under the statute. Defines health care provider and medical record.  Applies to offenses committed on or after December 1, 2025. 

Changes the act's long title. 

House committee substitute to the 1st edition makes the following changes.

Part IV.

Changes the date by which all current members of county board of social services, regional boards of social services, and consolidated human services boards must have participated in the education and training sessions provided for new board members during their first year of service from March 1, 2028, to March 1, 2027.

Part VII.   

Adds House Bill 165 from the current biennium to the materials that the Joint Legislative Oversight Committee (Committee) on Health and Human Services should review as part of its study and recommendations on the creation of Foster Ombudsman program. Removes establishing regional offices as required under Ryan’s Law (SL 2017-47) from the scope of the required study. Instead, directs the Committee to follow up with the Department of Health and Human Services (DHHS) regarding the status of those regional offices including services provided, and recommendations for statewide, uniform standards in handling child welfare matters and areas for improving the delivery of child welfare services and make recommendations based on the information provided. Clarifies that the follow up with DHHS relating to information by the Child Welfare and Family Well-Being Transformation Team should focus on information after its May 2022 interim report, and to make recommendations on that information provided. Makes clarifying and technical changes. 

House committee substitute to the 1st edition makes the following changes.

Amends GS 20-160.1 by increasing the penalty for failure to yield while approaching or entering an intersection, turning at a stop or yield sign, entering a roadway, upon the approach of an emergency vehicle, or at highway construction or maintenance that causes bodily injury to a Class 2 misdemeanor, including a fine of $500 and revocation of the person's drivers license for 90 days (was, only punishable by a $500 fine and suspension of the drivers license for 90 days; no criminal penalty was attached). Applies to offenses committed on or after December 1, 2026. Makes conforming changes to the act's titles.

House committee substitute to the 1st edition makes the following changes. 

Amends proposed GS 14-54(b1) to require that the person enters any area, with the intent to commit an unlawful act (was, the person knowingly and wrongfully enters any area) of a building (1) commonly reserved for personnel of a commercial business where money or other property is kept or (2) clearly marked with a sign that indicates to the public that entry is forbidden to GS 14-54 (breaking or entering buildings). 

Amends GS 1-538.2 to make any person who commits an act punishable under new GS 14-72.12 (larceny of gift cards) liable for civil damages to the property owner; also makes parents or legal guardians of unemancipated minors who commit an act punishable under new GS 14-72.12 civilly liable to the property owner if they knew or should have known of the propensity for the child to commit such an act, and had the opportunity and ability to control the child, and made no reasonable effort to correct or restrain the child. Makes conforming changes to the act's long title. 

House committee substitute to the 1st edition makes the following changes.

Amends proposed GS 50A-418 concerning the prevention of child abduction, as follows. Amends the actions a court may take to prevent imminent abduction of a child, to allow the court to authorize law enforcement to take any action reasonably necessary to locate the child or obtain return of the child under an order issued under the Article or other State law (was, direct the use of law enforcement to take any action reasonably necessary to locate the child, obtain return of the child, or enforce a custody determination under this Article or other State law). 

Amends proposed GS 50A-419, concerning a warrant to take physical custody of a child, as follows. Amends the timing under which the respondent on a petition that alleges there is a credible risk that a child is imminently likely to be wrongfully removed, so that it must not be later than the end of the next day that the district court is in session (was, no later than the next judicial day) unless a hearing on that date is impossible, in which case the court must hold the hearing on the first possible day that the district court is in session (was, on the first judicial day possible). Amends the items that an ex parte warrant to take physical custody of a child must do, to include authorizing law enforcement officers to take physical custody of the child without delay (was, direct law enforcement officers to take physical custody of the child immediately). Requires the petition and warrant to be served on the respondent when, or as soon as possible after (was, immediately after), the child is taken into physical custody. Makes other clarifying changes. 

Requires the Department of Public Instruction (DPI) to evaluate how certain policies may decrease the rate of recurring disciplinary infractions with a focus on parental involvement. Requires DPI to at least study the likely impact of: (1) requiring a parent to attend a meeting with the student and school personnel as a condition of a student returning to the classroom after being removed from the classroom for disciplinary reasons; (2) requiring a parent to attend counseling as a condition of a student returning to a classroom after being removed from the classroom for disciplinary reasons, including the availability of resources for the counseling both in and outside of the school; (3) requiring a parent and the student to attend joint counseling as a condition of a student returning to a classroom after being removed from the classroom for disciplinary reasons, including the availability of resources for the counseling both in and outside of the school; (4) requiring a student to attend remote instruction instead of returning to the classroom, and any social or academic impacts that may have; and (5) any additional evidence-based practices that subject matter experts identify to decrease disciplinary infractions.

Prohibits the study from including review of any student discipline infractions involving students with an Individualized Education Plan or a 504 Behavioral Plan and from making recommendations regarding those students.

Allows DPI to work with a third-party organization to complete this study.

Requires DPI to report the study’s results and its recommendations to the specified NCGA committee by April 15, 2026.

Appropriates $25,000 for 2025-26 from the General Fund to DPI to conduct the study and develop its report.

Effective July 1, 2025.

Identical to S 318, filed 3/17/25.

Part I.

Enacts Chapter GS 18D, pertaining to Tobacco Products Retail Sales.

Defines thirty terms used in the Chapter. Specifies in GS 18D-101 the powers of the North Carolina Alcoholic Beverage Control Commission (Commission) under new Chapter GS 18D as the following: (1) administer tobacco retail sales under the chapter; (2) provide for enforcement of those laws in conjunction with the ALE Division and (3) issue permits and impose sanctions against permittees. Specifies that the Commission has all other powers which may be reasonably implied from those powers or which are incidental to or convenient for performing the Commission’s duties. Authorizes, in GS 18D-102, the Commission’s employees and licensed alcohol enforcement agents to investigate the operation of each licensed premises for which a tobacco retail sales permit has been issued as described. Specifies that refusal to allow inspection is grounds for discipline under GS 18D-103. Makes it a Class 2 misdemeanor for any person to resist or obstruct an officer attempting to make a lawful inspection. 

Lists the administrative penalties that may be imposed by the Commission for violations of GS Chapter 18D, including revocation of the permittee’s permit, suspension of a permit, and/or fines ranging from up to $500 for a first violation to up to $1,000 for a third violation within three years of the first violation in GS 18D-103. Authorizes a compromise of not more than $5,000 in those instances where the Commission is authorized to suspend or revoke a permit. Allows the Commission to accept a compromise and suspend a permit in the same case but prevents it from revoking a permit if a compromise is accepted. Directs that the clear proceeds of any civil penalty be remitted to the Civil Penalty and Forfeiture Fund (Fund). Specifies that suspension or revocation of a permit is grounds for suspension or revocation of any related State or local revenue license. Instructs that unless the Commission provides otherwise, suspension of or revocation of a permit, does not include automatic revocation or suspension, respectively, of any ABC permit held by the same permittee for the same establishment.

Allows the Commission to adopt, amend, and repeal rules to carry out the provisions of GS Chapter 18D. Provides for the applicability of the administrative procedures act (APA), as specified. 

Makes it unlawful under GS 18D-200 for a person, that is not a delivery service making deliveries on behalf of a permit holder, to sell a tobacco product to a consumer in the State without a permit. 

Provides for the disposition of tobacco products by law enforcement officers who seize those products as evidence of a tobacco retail sales violation under GS 18D-201, including: (1) storage of the seized goods until the end of the applicable hearing; (2) disposition of the seized goods by court order as described upon notice to a defendant, to other known owners, and the Commission; and (3) disposition by court order as described after the criminal charge is resolved. Prevents the court from ordering disposition of the seized goods if they are also needed at an administrative hearing. Authorizes the Commission to take any of the actions a court may have taken under prongs 1 and 2, above after an administrative hearing. Prevents Commission from destroying any seized products if no criminal proceedings have commenced until notice has been given to the district attorney for the district where the goods were seized. Specifies that any sales will be by public auction. Provides for segregation and disposition of sales as described. Authorizes four listed categories of persons to bring a superior court action in the county where the tobacco products were seized, including, a persons claiming to be the owner of wrongfully held tobacco products, persons claiming to be entitled to sale proceeds of the tobacco products seized, and persons claiming to be entitled to restitution for tobacco products wrongfully destroyed.

Provides for forfeiture of tobacco products possessed or sold in violation of the tobacco retail sales laws in GS 18D-202. Clarifies that tobacco products which may be possessed lawfully are not subject to forfeiture when they were used unlawfully by someone other than the owner of the tobacco products and the owner did not consent to the unlawful use. Authorizes application to judge for an order authorizing seizure of the products if they have not already been seized. Directs that such an order can only be issued after criminal process has been issued for tobacco retail sales violation in connection with the product. Provides for safe storage until trial. Allows the presiding judge in a criminal proceeding to take any of five described actions after resolution of a charge against the owner or possessor of the tobacco product subject to forfeiture. If the judge orders forfeiture, authorizes the judge to also order any of the following dispositions: (1) sale at public auctions to a tobacco manufacturer, wholesaler, or retailer sales permittee or (2) destruction if possession of the product would be unlawful or sale or other disposition is impracticable. Provides for distribution of sale proceeds, including to persons who hold a security interest in the seized tobacco but who did not consent to the unlawful use of the tobacco. Provides for an in rem action when the owner is unknown and forfeiture is sought. Allows any owner of a seized tobacco product seized for forfeiture to apply to a judge to have the product returned if no criminal charge has been made in connection within a reasonable time after seizure. Prevents return of the seized goods if it would be unlawful.

Specifies seven requirements for a tobacco retail sales permit under GS 18D-300 including (1) that the person be at least 21 years of age; (2) not have been convicted (defined) of certain crimes or tobacco retail offenses within certain time periods; (3) be current in all applicable State tax returns and in payment of all taxes, interest, and penalties that are collectible under GS 105-241.22. Allows the Commission to decline to take action against a permittee who may have incurred any of the convictions or violations described in prong 2, above. If the permittee is a business, specifies that each of the eight classes of listed persons must qualify for a retail sales permit, including the owner of a sole proprietorship, each member of a firm, association, or general partnership, each general partner in an limited partnership, each manager and any member with a 25% or greater interest in an LLC, and each officer, director, and owner of 25% or more of the stock of a corporation except that those persons don’t have to be 21 unless they are a manager or is otherwise responsible for the daily operations of the business.  

Requires the Department of Revenue (DOR) to provide information to the Commission to confirm current tax status. Allows the Commission to take disciplinary action against a permittee if DOR informs it that the person is not current on their taxes as detailed above. Specifies that disciplinary action can only last until the Commission receives notice from DOR that the person is now current. Allows the requirement to pay all taxes, interest, and penalties to be satisfied by an operative agreement under covering any amounts that are collectible under GS 105-241.22. Specifies that GS Chapter 150B (the APA) does not apply to a Commission action on issuance, suspension, or revocation of a tobacco retail sales permit for taxes. 

Specifies that the Commission is the only entity authorized to issue a tobacco retails sales permits in GS 18D-301. Requires the Commission to consider three factors, as described, of the applicant and business location, including the reputation, character, and criminal record of the applicant and whether the retail seller’s operation would be detrimental to the surrounding neighborhood. Allows the Commission to determine the suitability and qualifications of an applicant for a permit along with the suitability of the location to which the permit may be issued.

Requires, in GS 18D-302, the Commission to investigate the applicant (and the premises for a retail seller permit) with the assistance of the ALE Division as described, before issuing a permit. Provides for an application form, fingerprinting, and a criminal record check. Requires such information to be kept confidential and specifies that the information is not a public record. Allows the State Bureau of Investigation to charge a fee to the applicant for the criminal records check. Makes knowingly making false statements on applications unlawful and grounds for discipline including, denial, suspension or revocation of a permit. Provides for nonrefundable $400 application fee for each type of permit (retail seller, delivery seller, and remote seller). Requires all application fees to be remitted to the State Treasurer for the General Fund.

Specifies in GS 18D-303 that once issued, permits are valid for up to one year (May 1 to April 30). Sets nonrefundable renewal fees in the same amount as those provided for in GS 18D-302. Prevents the Commission from revoking a permit for failure to pay a renewal fee until June 1 of the year the payment is unpaid. Provides for notice to permittees with unpaid renewal fees. Requires the Commission to impose a 25% late fee.

Prevents permits from being transferred from one person to another or one location to another, except as described below. Provides for automatic expiration of the permit and surrender of the permit to the Commission if there is a change in ownership of the permittee as described. Allows a person, who, through contract, lease, management agreement, or change of ownership or transfer of business becomes lawfully entitled to use and control of the premises of an establishment that holds permits immediately prior to such change of ownership may continue to operate the establishment, as successor to the prior permittee, to the same extent as the predecessor permittee until the person receives a temporary or new permit, subject to the five listed limitations. Specifies conditions under which transfer to a trust would not constitute change in ownership. Requires corporations to submit an application for a substitute manager if there is a change in managers of any person who is required to qualify as an applicant within the time and under the conditions specified. Provides for duplicate permits if they are lost, stolen, or if the permittee’s name or business name is changed, subject to a $10 fee.

Enacts GS 18D-304, containing miscellaneous provisions, including the following. Instructs that a retail seller permit authorizes the sale of tobacco products only in the physical presence of the consumer on the fixed premises of the establishment located in the State and named in the permit. Directs that a delivery seller permit authorizes a delivery sale only, originating either inside or outside of the State. Requires a remote seller permit to authorize a remote sale only, originating either inside or outside of the State. Provides for prominent posting of the permit on the premises. Prevents a tobacco retail sales permit from being issued to a business on the campus or property of a public school, college or university. Requires the Commission to send notice of the issuance of a permit with the name and address of the permittee and establishment to the three listed agencies. 

Provides for temporary permits as described in GS 18D-305. Allows for electronic submission of payments and forms in GS 18D-306. Authorizes applications for permits under GS Chapter 18D to be filed simultaneously or in conjunction with applications for ABC permits under GS Chapter 18B in GS 18D-307.

Specifies in GS 18D-400 that a permittee is responsible for the entire premises where a permit is issued as well as the actions of all of their employees, as described. Prevents permittees from knowingly employing any person whose license under GS Chapter 18D has been revoked in the past 18 months. Requires employees and agents of permit holder to demand proof of age from prospective purchasers if they have reasonable grounds to believe the person is under 30 years of age. Requires delivery sellers and remote sellers to (1) perform an age verification through an independent, third-party age verification service that compares information available from public records to the personal information entered by the individual during the ordering process to establish that the individual ordering the tobacco products is 21 years of age or older and (2) use a method of shipping, mailing or delivery that requires a signature of a person at least 21 years of age before the product is delivered. Provides for required training of employees or agents of retail sellers by the employer. Provides for display of a consumer statement as described.

Prevents four types of conduct from occurring on licensed premises in GS 18D-401, including fighting or disorderly conduct, violations of GS Chapter 18D, or violations of the controlled substances, gambling, or prostitution statutes, or any other unlawful acts. Directs that it is unlawful for a permittee to fail to superintend in person or through a manager the business for which a permit is issued.

Enacts GS 18D-402, containing miscellaneous tobacco sales provisions preventing six described courses of conduct, including selling tobacco products through displays accessible to the public without the assistance of a permittee's employee or agent other than in an establishment open only to persons 21 years of age and older.

Makes it a Class 2 misdemeanor for any person to sell, aid, assist, or abet any other person in selling tobacco products to any person under the age of 21 years, or for any person shall purchase tobacco products on behalf of a person under the age of 21 years in GS 18D-500. Exempts sales of tobacco products to an employee or agent of a tobacco retail sales permittee under the age of 21 years when possession of the tobacco product is required pursuant to a tobacco retail sales permit in the performance of that person's duties of employment or contract.

Makes it a Class 2 misdemeanor for any person under the age of 21 to present or offer false, fraudulent, or the identification of another to purchase or receive tobacco products in GS 18D-501. Makes all other purchases or attempts at purchase of tobacco purchase by those persons an infraction which may require completion of a tobacco education program as described. Provides that it is not unlawful for an employee or agent of a tobacco retail sales permittee under the age of 21 years to accept receipt of, sell, transport, possess, or dispense tobacco  products when required pursuant to a tobacco retail sales permit in the performance of that person's duties of employment or contract, if the employment of the person for that purpose is lawful under applicable youth employment statutes and Commission rules. Provides for aiding and abetting liability in GS 18D-502 in the punishment classes as described.

Provides for persons under age 21 to be lawfully enlisted by any of the following and under the described conditions in GS 18D-503:(1) law enforcement, including the Division of Alcohol Law Enforcement, to test  compliance if the testing is under the direct supervision of that law enforcement department and written parental consent is provided; (2) DHHS pursuant to a written plan to use persons under age 21 in in annual, random, unannounced inspections, so long as parental consent is given; and (3) a research program affiliated with an accredited community college, college, or university located in this State to test compliance as part of a scientific research study to further efforts in underage tobacco use prevention, provided that prior written parental consent is given for persons under 18 years of age.

Specifies three defenses to violations of GS 18D-500 under circumstances where the seller: (1) demonstrates the purchaser produced identification showing the person’s age to be the required age and bearing a physical description of the person named on the identification reasonably describing the purchaser; (2) produces evidences of other facts that reasonably indicated at the time of sale that the purchaser was at least the required age; and (3) evidence that at the time of sale the purchaser utilized a biometric identification system that demonstrated their age to be at least 21 and that they had registered an official federal or State ID with the seller or the seller’s agent showing them to be the legal age for purchase. Allows for deferred prosecution or conditional discharge under GS 18D-505 under the conditions described.

Provides for restitution as specified in GS 18D-600. Specifies that unless otherwise specified, any violation of GS Chapter 18D is a Class 1 misdemeanor, and authorizes the Court to impose the provisions GS 18D-201 (seizure), GS 18D-202 (forfeiture) and GS 18D-600 (restitution), in GS 18D-601.

Enacts GS 18D-700, concerning certification and directory of vapor products and consumable products, as follows. Requires the Secretary of DOR to certify vapor products and consumable products eligible for retail sale in the State and list them on a directory as required by Part 3 of Article 4 of GS Chapter 143B. Sets forth the following penalties for violations of the above:

1. A retailer, distributor, or wholesaler who offer for sale a consumable product or vapor product intended for ultimate retail sale in this State that is not included in the directory is subject to a warning with a mandatory reinspection of the retailer within 30 days of the violation.

• For a second violation of this type within a 12-month period, the fine will be at least $500 but not more than $750.00 and, if licensed, the licensee's license will be suspended for 30 days.
• For a third or subsequent violation of this type within a 12-month period, the fine will be at $1,000 but not more than $1,500 and, if licensed, the licensee's license will be revoked.

Provides for seizure, forfeiture, or destruction upon a second or subsequent violation of the above, as described.

1. A manufacturer whose consumable products or vapor products are not listed in the directory and who causes the products that are not listed to be sold for retail sale in North Carolina, whether directly or through an importer, distributor, wholesaler, retailer, or similar intermediary or intermediaries, is subject to a civil penalty of $10,000 for each individual product offered for sale in until the offending product is removed from the market or until the offending product is properly listed on the directory. In addition, any manufacturer that falsely represents any information required by a certification form is guilty of a misdemeanor for each false representation.

Authorizes the State to recoup costs, including the costs of investigation, expert witness fees, and reasonable attorneys' fees. Specifies that repeated violations of Part 3, Article 4 of GS Chapter 143B is an unfair and deceptive trade practice. 

Part II.

Repeals GS 14-313, which concerned access to tobacco products, alternative nicotine products, vapor products, and cigarette wrapping papers by persons under age 18. Makes conforming changes in GS 7B-2508.1; GS 14-50.16A, GS 15A-150, GS 75D-3, and GS 105-113.4F. Replaces references to GS 14-313 with the appropriate new statutory references in GS 143B-245.10, GS 143B-245.11, GS 143B-245.14, GS 105-113.4F, and GS 143B-245.16.

Amends GS 15A-145, to allow a person who has not been previously convicted of any felony, or misdemeanor other than a traffic violation, who pleads guilty to or is guilty of the offense of the sale of a tobacco product to a person under age 21 to file a petition for expunction. Allows the petition to be restored in such cases when the court fines that the petitioner has remained of good behavior and been free of any felony or misdemeanor, other than a traffic violation, for two years from the date of conviction, and the petitioner has no outstanding restitution orders or civil judgments representing amounts ordered for restitution entered against him. Makes language gender neutral.

Expands upon the duties of the ABC Commission (Commission) under GS 18B-203 to include: (1) providing for the enforcement of the tobacco retail sales laws in GS Chapter 18D, in conjunction with the ALE Division, and issuing tobacco retail sales permits and imposing sanctions against permittees as set forth in GS Chapter 18D. Makes technical changes.

Amends GS 18B-500 to alcohol law-enforcement agents authority to arrest and take investigatory and enforcement actions for criminal offenses while investigating or enforcing GS Chapter 18D; specifies that their primary responsibilities include enforcement of the Chapter.

Enacts new GS 18B-908 allowing applications for permits under GS Chapter 18D to be filed simultaneously or in conjunction with applications for tobacco retail sales permits, including allowing the Commission to combine them into a single application. Allows the Commission to use, rely upon, or incorporate by reference any information an application for a permit under GS Chapter 18B has submitted in conjunction with a tobacco retail sales permit.

Amends GS 143B-245.10 by updating the definition of timely filed premarket tobacco product application; makes other conforming and technical changes, including updating statutory cross-references.

Part III.

Specifies that prosecutions for offenses committed before the effective date of this act are not abated or affected by this act, and the statutes that would be applicable but for this act remain applicable to those prosecutions.

Allows the ABC Commission, effective March 1, 2026, to issue tobacco retail sales permits as authorized by Section 1 of this act effective for the period of May 1, 2026, through April 30, 2027.

Makes GS 18D-100, GS 18D-101, GS 18D-104, GS 18D-300 through 18D-302, and GS 18D-304 through 18D-307, as enacted by Section 1 of this act, effective when this act becomes law and applicable to permits effective on or after May 1, 2026. Makes the remainder of Sections 1 through 3 of this act effective May 1, 2026, applicable to offenses committed on or after that date. The remainder of this act is effective when it becomes law.

Section 1.

Under current law, the property tax homestead exclusion for State residents who are either over 65 years or totally and permanently disabled and who meet the income eligibility limits, set at greater of $25,000 or 50% of the appraised value of the residence, is excluded from taxation. Revises the property tax homestead exclusion so that the value of the exclusion is the greater of $50,000 or 50% of the residence’s appraised value. Starting for the tax year that begins on July 1, 2026, increases the base amount of the income eligibility limit under the elderly or disabled property tax homestead exclusion (GS 105-277.1) from $25,000 to $48,000.

Makes conforming changes.

Under current law, the property tax homestead exclusion for disabled veterans, set at the first $45,000 of appraised value of the residence, is excluded from taxation. Revises the property tax homestead exclusion for disabled veterans under GS 105-277.1C, so that the value of the exclusion is the lesser of 50% of the appraised value of the residence or $100,000. 

Enacts GS 105-277.1E, concerning homeowner advantage property tax relief for a permanent residence owned and occupied by a qualifying owner, taxable as follows.  Defines a qualifying owner as one who meets all of the following requirements as of January 1 preceding the taxable year for which the benefit is claimed: (1) the owner has occupied the property as a permanent residence for at least two years immediately preceding the owner's filing for property tax relief and (2) the owner is a North Carolina resident. Also defines baseline value, baseline year, owner, permanent residence, and rate of inflation.  

Establishes a general limitation, subject to the two listed exception under which there was a reappraisal of the residence that the taxable value of the permanent residence of a qualifying owner cannot exceed its baseline value by an amount more than (1) the average rate of inflation per year between consecutive general reappraisals, or 3% per year, whichever is less, and (2) 15% cumulatively. Specifies that a temporary absence due to health, or because of an extended absence while confined to a rest home or nursing home, does not deprive the owner of the tax relief so long as the residence is unoccupied or occupied by the owner's spouse or other dependent. Allows for permanent residences jointly owned and occupied by a husband and wife to qualify for the full benefit of the property tax relief. In cases of joint ownership by other persons, requires that all persons be a qualifying owner to obtain the tax relief. Provides for availability of tax relief upon (1) death of owner or (2) transfer of the owner’s residence under circumstances described. Directs that an application for property tax relief provided should be filed during the regular listing period but may be filed and must be accepted at any time up to and through June 1 preceding the tax year for which the relief is claimed.

Enacts GS 105-277.1G, concerning the elderly property tax homestead circuit breaker, as follows. Specifies that a permanent residence owned and occupied by a qualifying owner (defined below) is designated a special class of property, taxable as set forth below. Incorporates the definitions of GS 105-277.1 and the income eligibility limit of GS 105-277.1 into GS 105-277.1G.

Allows a qualifying owner to defer the portion of the principal amount of tax that is imposed for the current tax year on his or her permanent residence and exceeds the percentage of the qualifying owner's income set out in statute’s table:  

Income over          Income up to                                             Percentage
0                          Income eligibility limit (i.e., $48,000)           0%

Specifies that if a permanent residence is subject to tax by more than one taxing unit and the total tax liability exceeds the tax limit imposed by GS 105-277.1G, then both of the taxes due and the taxes deferred under GS 105-277.1G must be apportioned among the taxing units based upon the ratio each taxing unit's tax rate bears to the total tax rate of all units.

Defines a qualifying owner as one who meets all of the following requirements as of January 1 preceding the taxable year for which the benefit is claimed: (1) the owner has an income for the preceding calendar year of not more than 100% of the income eligibility limit; (2) the owner has owned the property as a permanent residence for at least 10 consecutive years and has occupied the property as a permanent residence for at least 10 years; (3) the owner is at least 85 years of age; and (4) the owner is a North Carolina resident.

Allows for permanent residences jointly owned and occupied by a husband and wife to qualify for the full benefit of the property tax relief. In cases of joint ownership by other persons, requires that all persons be a qualifying owner to obtain the tax relief. Specifies that a temporary absence due to health, or because of an extended absence while confined to a rest home or nursing home, does not deprive the owner of the tax relief so long as the residence is unoccupied or occupied by the owner's spouse or other dependent.

Specifies that the difference between the taxes due under the section and the taxes that would have been payable in the absence of the section are a lien on the real property of the taxpayer as provided in GS 105-355(a). Requires the difference in taxes to be carried forward in the records of each taxing unit as deferred taxes. Specifies that the deferred taxes for the preceding three fiscal years are due and payable in accordance with GS 105-277.1F when the property loses its eligibility for deferral as a result of a disqualifying event described in subsection (i) of this statute. Provides for a notice stating the amount of deferred taxes and interest that would be due and payable upon the occurrence of a disqualifying event to be sent on or before September 1 of each year. Lists three disqualifying events including death of the owner or transfer of the residence unless the described conditions apply. Provides for gaps in deferrals of taxes and limitations on creditors, as described. Specifies that GS 105-277.1G does not affect the attachment of alien for personal property taxes against a tax-deferred residence. Sets forth a June 1 filing deadline for applications for tax relief under GS 105-277.1G, as described.

Enacts GS 105-277.1H, to ensure continuity in property tax relief for new owners of a primary residence by allowing owners to transfer property tax relief to their new primary residence, as described, so long as the owner continues to meet all other requirements for property tax relief and files an application with the assessor of the county in which the new primary residence is situated. Incorporates the definitions in GS 105-277.1 into the statute.

Amends GS 105-282.1(a)(2) (applications for property tax exemptions or exclusions) to provide for the applications in GS 105-277.1E and GS 105-277.1H. Exempts property that falls under GS 105-277.1E from GS 105-283 (uniform appraisal standards) and GS 105-284 (uniform assessment standards).

Makes conforming changes to GS 105-309 (contents of an abstract) and to the definition of property tax relief in GS 105-277.1 to account for newly enacted GS 105-277.1E and GS 105-277.1G.

Effective for taxes imposed for taxable years beginning on or after July 1, 2026.

Section 2.

Enacts GS 1C-1605 (a homestead exemption for forced sale), which applies to real or personal property owned by a debtor that the debtor has used as the debtor's primary residence for a period of at least 40 consecutive months from the date of purchase of the property for claims in bankruptcy or 24 consecutive months from the date of purchase of the property for all other claims, as follows. Specifies that a judgment entered against the owner of property subject to the statute may be placed as a lien against the property, but the property is exempt from forced sale under Article 29B of GS Chapter 1 or any other provision of State law. Specifies that the lien may be enforced any time ownership of the property is transferred. Provides that the exemption is inapplicable to seven listed claims. Applies to judgments entered against a debtor on or after October 1, 2025.

Section 3.

Directs the Department of Revenue (Department) to study ways to abolish the statutory framework for the listing, appraisal, and assessment of real property under GS Chapter 105 and develop a framework to eliminate property taxes on real property in this State, as described. Requires the Department to develop a framework to replace property tax revenues through State and local budget reductions, sales-based consumption taxes, and locally determined consumption taxes. Requires the Department to report its findings to the specified NCGA committee by February 1, 2026.  

To be summarized.

Amends GS 153A-199 to authorize boards of commissioners to determine that assessment payments may be made by semiannual payments in addition to annual installment payments authorized under existing law. Allows for the resolution to set the number of installments, with up to 40 semiannual installments or 20 annual installments permitted. Details when semiannual payments may be due, allowing the board to provide that the first installment is due with interest either on (1) the date when property taxes are due, with one installment with interest due on the same date in each successive six-month time period, or (2) 60 days after the date that the assessment roll is confirmed, with future installments and interest due on that same day in each successive six-month time period. 

Enacts new GS 95-25.4A requiring employers to offer their employees, during the course of a workday of six or more hours, at least one voluntary paid break of at least 20 minutes scheduled near the middle of the workday. Prohibits using the break to delay the beginning or shorten the duration of the work period, unless approved by the employer. 

Amends GS 95-25.23 to make violations of new GS 95-25.4A and rules issued under that statute, subject to a civil penalty not to exceed $100 for the first violation and not to exceed $500 for each subsequent violation; sets out issues to consider when determining the amount of the penalty. Sets out a procedure under which the person charged with the violation can contest that determination.

Amends GS 95-241 by prohibiting discriminating or taking any retaliatory action against an employee because the employee in good faith files a claim or complaint, initiates any inquiry, investigation, inspection, proceeding or other action, or testifies or provides information to any person with respect to new GS 95-25.4A.

Part I.

Amends GS 106-121 by amending the definition of drug as it applies to the North Carolina Food, Drug and Cosmetic Act, so that it also means foods that contain a vaccine or vaccine material. Defines vaccine or vaccine material as a substance intended to stimulate the production of antibodies and provide immunity against disease that is: (1) prepared from the causative agent of a disease, its products, or a synthetic substitute to act as an antigen without inducing the disease and (2) authorized or approved by the US Food and Drug Administration for use in humans.

Part II.

Enacts new GS 106-129.1 prohibiting a person from manufacturing, selling, distributing, holding, or offering for sale in commerce a food product for human consumption that contains any of the nine listed substances, including potassium bromate, propylparaben, and red 40. Amends GS 106-124.1 to make a person violating new GS 106-129.1 liable for civil penalties of up to $5,000 for a first violation and up to $10,000 for each subsequent violation. Effective January 1, 2027.

Includes whereas clauses. Requires the the Fisheries Director, the Marine Fisheries Commission (Commission), and the Division of Marine Fisheries of the Department of Environmental Quality (Division) to: (1) issue proclamations and undertake amendments to the fishery management plan for summer flounder and red snapper to allow an annual recreational season between May 15 and July 31, with a limit of one fish or more per person per day, and no seasonal limit (specifies that all other size and manner of take limits continue to apply to the summer flounder and red snapper fisheries); and (2) revise any regulations, guidelines, or policies regarding the catch and release fishery so that flounder and red snapper caught and released by recreational fishermen will not be counted towards catch limits or quotas set by the Division or the Commission. Requires the Division to report annual to the specified NCGA committees, including an assessment of progress in conserving summer flounder and red snapper populations and an estimate of the time line for the Division to be able to increase the daily creel limit above one fish per day for the red snapper and summer flounder fisheries. Expires August 1, 2029.

To be summarized.

Enacts new GS 15A-502.01 prohibiting a law enforcement agency from providing a booking photograph, defined as a photo or image of an individual who is alleged to have committed a crime that is taken by law enforcement at the initial booking, of a defendant pretrial to any publish-for-pay publication or publish-for-pay website (both as defined). Mandates that a publish-for-pay publication or website remove and destroy a booking photograph of any individual who submits a request for removal and destruction pursuant to GS 15A-152(a1), as enacted. Provides that conditioning removal upon payment of a fee or other item of value can constitute a criminal offense and subject the entity to a civil penalty under GS 15A-152(c), as amended. 

Amends GS 15A-153 by enacting new subsection (a1), explicitly requiring a publish-for-pay publication or website to remove and destroy any booking photograph within seven business days of receiving notice to remove the booking photograph if there is no criminal conviction related to the arrest that generated the photograph and the individual submits with the request written documentation that the criminal charge related to the arrest that generated the photograph resulted in a dismissal, acquittal, expunction, or that the grand jury returned no true bill on a proposed indictment. Amends subsection (c) to make a publish-for-pay publication or website that fails to remove and destroy a booking photograph liable for any damages sustained as a result of the violation by the person that is the subject of the booking photograph, including $100 per day for each day after the seven-day deadline on which the photo is visible or publicly accessible in the publish-for-pay publication or website, with the prevailing party also entitled to court costs and reasonable attorneys' fees. Provides that this liability is in addition to other punishment or penalty under law. 

Effective December 1, 2025, and applies to: (1) disclosures of booking photographs by a law enforcement agency occurring on or after that date; (2) requests for removal and destruction submitted on or after that date; (3) the conditioning of removal or destruction of a booking photograph on the payment of any fee or other item of value occurring on or after that date; and (4) the failure to remove and destroy a booking photograph in accordance with GS 15A-502.01 occurring on or after that date.

Amends GS 105-164.13 (setting forth retail sales and use tax exemptions) to exempt certain equipment designed to prevent unauthorized access to firearms from sales tax, including (1) devices installed on firearms that are designed to prevent the firearm from firing without first being deactivated and (2) a device for home use that is designed to prevent access to a firearm by any means other than a key, a combination, biometric data, etc., including a gun safe, gun case, or lockbox. Equipment designed to allow for the display of firearms, including glass-faced cabinets, are not included in the sales tax exemption. Effective October 1, 2025, and applies to sales made on or after that date, and expires October 1, 2026, for sales made on or after that date.

Repeals GS 14-196.3(b)(5)k (making it unlawful for a private detective or private investigator licensed under GS Chapter 74C, to knowingly install, place, or use an electronic tracking device without consent and other acts described, provided that (1) the tracking is pursuant to authority under GS 74C-3(a)(8), (2) the tracking is not otherwise contrary to law, and (3) the person being tracked is not under the protection of a domestic violence protective order under GS Chapter 50B or any other court order that protects against assault, threat, harassment, following, or contact).

Specifies that nothing in GS 113-136 (enforcement authority of inspectors and protectors) authorizes searches as described without a search warrant or judicial order authorizing the search (was, just those search in contravention of the constitutional prohibitions against unreasonable searches and seizures). Amends GS 113-302.1 (inspections of licensed and commercial premises) to require when a search is conducted to determine whether any wildlife on the premises is possessed in accordance with applicable laws and rules, required records are being kept, and other legal requirements are being observed when the establishment is open for business or if a proprietor or employee is on the premises, an administrative search warrant is required that it is secured under the terms of Article 4A of GS Chapter 15 (currently, only need to secure an administrative warrant in the protector’s discretion or if case law requires it). 

Applies to offenses committed on or after December 1, 2025.

Amends GS 14-277.4, concerning obstruction of health care facilities, as follows. Prevents a person from knowingly approaching another person within 8 feet of such person, unless such other person consents, for the purpose of passing a leaflet or handbill to, displaying a sign to, or engaging in oral protest, education, or counseling with such other person in the public way or sidewalk area within a radius of 100 feet from any entrance door to a health care facility. Removes provisions making a second offense a Class 1 misdemeanor under described circumstances. Instead, makes a second or subsequent conviction for a violation of either subsection a or b of GS 14-277.4 (concerning obstructing or blocking access to or from a health care facility or its common areas, and injuring or threatening a person who is obtaining, aiding another in obtaining or providing health care services), within three of the most recent conviction a Class I felony. Applies to offenses committed on or after December 1, 2025.

Amends Article 2 of GS Chapter 120 (Duties and privileges of members of the General Assembly) by adding GS 120-9.1 to do the following:
(1) Define “federal action” as any federal law, rule, or executive order;
(2) Authorize the General Assembly to review any federal action to determine the constitutionality of the action or direct the Attorney General to review any federal action to determine the constitutionality of the action and whether to seek an exemption from the federal action or have the action declared unconstitutional;
(3) Provide that the General Assembly may direct the Attorney General to seek to have a federal action declared unconstitutional if the General Assembly determines the action to be unconstitutional;
(4) Provide that the General Assembly may declare a federal action unconstitutional if the Attorney General declines to seek to have the action declared unconstitutional;
(5) Prohibit the State, its political subdivisions, and any entity receiving State funds from implementing any federal action that restricts a persons rights or that the General Assembly or Attorney General have determined to be unconstitutional and which is related to: (i) pandemics/health emergencies, (ii) regulation of natural resources, (iii) regulation of agriculture, (iv) use of land/wetlands/water, (v) certain regulation of the financial sector, (vi) regulation of the right to bear arms, (vii) regulation of education, (viii) regulation of extracurricular sports, and (ix) any other powers reserved to the State.