Amends GS 14­269.2 (Weapons on campus or other educational property) to exclude land, buildings or other facilities owned, leased, or controlled by educational institutions but not primarily used for educational purposes; religious institutions whose facilities are used part­time as a school while not currently in use as a school; roads and other public thoroughfares that cross educational campuses; and medical facilities whose primary purpose is patient care rather than education from the definition of  educational property . Enacts new subsection (b2) to exempt persons not participating in an extracurricular activity from the restrictions on carrying a firearm at an extracurricular activity described in subsection (b) provided that the extracurricular activity is conducted in a public place. Specifies that the statute does not apply to persons exempted by GS 14­269(b)(1 through 5).

Amends GS 14­269.4 to authorize the Governor and his or her immediate family to carry a weapon on the property of the Executive Mansion and the Western Residence of the Governor.

Repeals GS 14­404(e1)(5), regarding the application requirements for a permit to purchase a weapon, thereby no longer requiring a signed release for disclosure of court orders concerning the applicant's mental health or capacity.

Amends GS 14­415.10 to revise the definitions of qualified former sworn law enforcement officer, qualified retired correctional officer, and qualified retired probation or parole certified officer to include individuals retired from service in those positions who have been retired for five years or less (was, two years or less).

Amends GS 14­415.11(b) to extend the validity of permits to carry concealed handguns under GS 14­415.12(b)(7) from five to ten years.

Amends GS 14­415.12(b)(7) to require sheriffs to deny concealed handgun permits to applicants who were are or have been discharged from the Armed Forces under dishonorable conditions (was, under conditions other than honorable).

Amends GS 120­32.1 to add that legislators and legislative employees with concealed handgun permits are authorized to carry a concealed handgun on the premises of the State legislative buildings and grounds, notwithstanding any rule by the Legislative Services Commission (Commission). Authorizes the Commission to adopt a rule requiring the legislator or employee to provide notice to the Chief of the General Assembly Special Police before carrying the handgun on the premises. Authorizes the Legislative Services Commission to adopt a rule prohibiting the carrying of a firearm in the gallery of the State legislative building.

Amends GS 14­415.27 to authorize legislators and legislative employees with concealed handgun permits to carry a concealed handgun on the premises of the state legislative building and grounds, subject to notice requirements adopted by the Commission.

Amends GS 14­269.1 to clarify that weapons used in specified crimes must be returned to their rightful owners under specified conditions, unless the rightful owner is the convicted defendant, in which case the presiding judge may dispose of the weapon as specified at the judge's discretion.

Amends GS 15­11.1 to make a conforming change.

Enacts new GS 14­277.6 (Going armed to the terror of the people). Creates a new Class 1 misdemeanor for persons who arm themselves with an unusual and dangerous weapon for the purpose of terrifying others, and go about on public highways in a manner to cause terror to the people. Provides that no person may be convicted of this crime based only upon the person's possession or carrying of a handgun, whether openly or concealed.

Effective September 1, 2017.