Section 1.

Amends GS 14-313 (concerning youth access to tobacco products) to raise the age to access tobacco and vapor products from 18 to 21 and makes conforming changes. Broadens the definition of vapor products to include smart vapes and related products that are vapor products that have designs and functionalities that resemble smart technology, including phones and gaming devices. Effective December 1, 2025, and applies to offenses committed on or after that date.

Section 2.

Expands the locations where a wholesale dealer or retail dealer of vapor products must obtain a license to sell those products there to include each location where a retail dealer receives or stores tax-paid vapor products if it is not a location where a wholesale dealer or a retail dealer receives or stores non-tax-paid vapor products. Effective December 1, 2025.

Section 3.

Amends GS 105-113.128 as follows.

Increases the amount of the net proceeds of the State’s tax on interactive sports wagering operators annually allocated to the Department of Health and Human Services (DHHS) from $2 million to $12 million, and modifies the distributions as follows: $5.4 million for gambling addiction programs and recovery support services (was, $2 million for addiction education and treatment programs), $4.2 million for prevention initiatives, including school-based programs, and $2.4 million for a statewide public awareness campaign.

Directs DHHS to do the following with those tax proceeds: (1) develop a statewide public awareness campaign about gambling addiction, in consultation with addiction specialists and individuals who have lived experience with gambling addiction to develop materials and resources as described; (2) establish and administer as described, a grant program that awards directed grants on a competitive basis to nonprofit organizations to implement or expand evidence-based gambling prevention and treatment programs; (3) expand access to treatment programs and services for individuals and families affected by gambling addiction; and (4) support gambling prevention initiatives targeting students in grades K-12, 2 including efforts to raise awareness about gambling addiction among students and provide educational resources on the risks associated with gambling. Annually by February 28, beginning February 28, 2026, requires DHHS to report to the specified NCGA committee and the Fiscal Research Division (FRD) on the use of the tax proceeds described above, including the four prongs of required information. Effective July 1, 2025, and applies to gross wagering revenue received on or after that date.