Adds new GS 144-7.1, limiting the display of governmental flags on property owned or leased by the State or a political subdivision of the state to seven listed flags, including the American flag, the State flag, a local government flag, the POW/MIA flag, the flag of any military branch of the US Armed Forces, and the flag of nations recognized by the United States of America during a visit by the nation’s head of state or national delegation. Requires the flag to be displayed (defined) in accordance with patriotic customs set forth in federal law.  Makes violation of the above, including a second or subsequent violation, a Class 3 misdemeanor.  Makes conforming changes to GS 144-7 (concerning local government regulation of the display of official government flags on private property), including to the statute's title.