Hygiene Products Protections/Sales Tax.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1165

Short Title: Hygiene Products Protections/Sales Tax. (Public)
Sponsors: Representative Budd.
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
May 4, 2026
*H1165-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO EXEMPT QUALIFYING MENSTRUATION PRODUCTS FROM THE STATE 2
SALES TAX, TO DIRECT THE DEPARTMENT OF C OMMERCE TO CERTIFY 3
MENSTRUATION PRODUCT S THAT ARE FREE OF I NTENTIONALLY ADDED 4
PFAS, AND TO APPROPRIATE MONEY TO THE DEPARTMENT OF REVENUE. 5
The General Assembly of North Carolina enacts: 6
SECTION 1.(a) G.S. 105-164.3 reads as rewritten: 7
"§ 105-164.3. Definitions. 8
The following definitions apply in this Article: 9
… 10
(204) Qualifying menstruation products. – Tampons, panty liners, menstrual cups, 11
sanitary napkins, and other similar tangible personal property designed for 12
menstrual hygiene in connection with the menstrual cycle that contain no 13
intentionally added PFAS as certified by the Department of Commerce in 14
accordance with G.S. 143B-438.20. 15
…." 16
SECTION 1.(b) G.S. 105-164.13 reads as rewritten: 17
"§ 105-164.13. Retail sales and use tax. 18
The sale at retail and the use, storage, or consumption in this State of the following items are 19
specifically exempted from the tax imposed by this Article: 20
… 21
(76) Qualifying menstruation products." 22
SECTION 1.(c) The Secretary of Revenue shall take the requisite action required by 23
the Streamlined Agreement to request an amendment to the Streamlined Agreement that would 24
allow a member state to limit the definition of Menstrual Discharge Collection Devices consistent 25
with this section or otherwise modify the agreement to allow a member state to provide an 26
exemption consistent with this section without violating the Streamlined Agreement. Upon 27
amendment of the Streamlined Agreement to allow a member state to provide an exemption 28
consistent with this section, this section shall become effective on the first day of a calendar 29
quarter that begins at least 90 days after amendment of the Streamlined Agreement. 30
SECTION 2. Article 10 of Chapter 143B of the General Statutes is amended by 31
adding a new Part to read: 32
"Part 3D. PFAS Certification. 33
"§ 143B-438.20. Certification of menstruation products free of intentionally added PFAS. 34
(a) Definitions. – The following definitions apply in this section: 35
General Assembly Of North Carolina Session 2025
Page 2 House Bill 1165-First Edition
(1) Intentionally added PFAS. – PFAS added during the manufacturing of a 1
product or product component to provide a specific characteristic, appearance, 2
or quality or to perform a specific function. 3
(2) Manufacturer. – A person who manufactures a product or whose brand name 4
is affixed to the product. In the case of a product that is imported into the 5
United States, the term "manufacturer" includes the importer or first domestic 6
distributor of the product if the person that manufactu red or assemb led the 7
product or whose brand name is affixed to the product does not have a 8
presence in the United States. 9
(3) Menstruation products. – Tampons, panty liners, menstrual cups, sanitary 10
napkins, and other similar tangible personal property designed for menstrual 11
hygiene in connection with the menstrual cycle. 12
(4) PFAS. – Perfluoroalkyl and polyfluoroalkyl substances, a class of fluorinated 13
organic chemicals containing at least two fully fluorinated carbon atoms. 14
(b) Certification Program; PFAS Content Standards. – The Department shall administer 15
a program to certify those menstrua tion products that do not contain any intentionally added 16
PFAS. To im plement this certification program, the Department shall adopt rules establishing 17
product and testing standards for PFAS content in menstruation products. The Department may, 18
if appropriate, incorporate standards or methods developed by nationally recognized, 19
independent testing laboratories or standard-setting organizations. 20
(c) Application for Certification. – Each manufacturer seeking certification from the 21
Department that a menstruation product does not contain any intentionally added PFAS shall file 22
an application with the Department on a form and in a manner prescribed by the Department, 23
setting forth evide nce satisfactory to the Department that the menstrua tion product meets the 24
PFAS content standards adopted pursuant to subsection (b) of this section. 25
(d) Issuance of Certification. – The Department shall certify a menstruation product as 26
containing no intentionally added PFAS upon finding that the product meets the PFAS content 27
standards adopted pursuant to subsection (b) of this section . In making this finding, the 28
Department may consider, when appropriate, any relevant, product-specific findings from other 29
entities, including independent testing laboratories or government agencies from other states. 30
Certification is valid for a period of five years and may be renewed for subsequent, five-year 31
terms based on a showing to the satis faction of the Department that the menstrua tion product 32
meets the PFAS content standards. The Department may request, and the manufacturer shall 33
provide upon request, technical documentation and analytical test results to demonstrate that a 34
menstruation product remains in compliance with the PFAS content standards. 35
(e) Notification of Material Changes. – Any manufacturer of a menstrua tion product 36
certified by the Department shall notify the Department as soon as practicable of any material 37
change to the information submitted in its application , including changes related to the design, 38
composition, or production of the menstruation product, if it results in the menstruation product 39
no longer satisfying the PFAS content standards adopted under subsection (b) of this section. 40
(f) Decertification. – The Department may decertify a menstruation product if any of the 41
following circumstances apply: 42
(1) The manufacturer fails to provide technical documentation requested by the 43
Department as required under subsection (d) of this section. 44
(2) The manufacturer fails to notify the Department of any material changes to 45
the information submitted in its application for certification, as required under 46
subsection (e) of this section. 47
(3) A materi al misstatement, misrepresentation, or fraud was committed in 48
obtaining certification under this section. 49
(4) The Department finds that the menstrua tion product fails to meet the PFAS 50
content standards adopted under subsection (b) of this section. 51
General Assembly Of North Carolina Session 2025
House Bill 1165-First Edition Page 3
(g) Criminal Penalty. – Any person who knowingly provides false information or makes 1
a material misrepresentation to the Department in applying for certification under this section is 2
guilty of a Class 2 misdemeanor." 3
SECTION 3.(a) Interim Administration of Certification Program. – Notwithstanding 4
G.S. 143B-438.20, as enacted by Section 2 of this act, the Department of Commerce shall 5
administer the Program to certify those menstruation products that do not contain any 6
intentionally added PFAS as provided in subsection (b) of this section. 7
SECTION 3.(b) Implementation. – Any menstrual product that has been certified by 8
a nationally recognized, independent testing laboratory, including Intertek or NSF, Inc., as not 9
containing any intentionally added PFAS is deemed to satisfy the PFAS content standards under 10
G.S. 143B-438.20, as enacted by Section 2 of this act. Upon receiving documentation from a 11
manufacturer showing that its menstrual product has been certified by a nationally recognized, 12
independent testing laboratory as not containing any intentionally added PFAS, the Department 13
of Commerce shall certify the menstrual product for purposes of G.S. 143B-438.20, as enacted 14
by Section 2 of this act. 15
SECTION 3.(c) Sunset. – This section expires upon the effective date of permanent 16
rules establishing PFAS content and testing standards for menstruation products, adopted by the 17
Department of Commerce as required under G.S. 143B-438.20, as enacted by Section 2 of this 18
act. 19
SECTION 4.(a) There is appropriated from the General Fund to the Department of 20
Revenue the nonrecurring sum of one hundred thousand dollars ($100,000) for the 2026 -2027 21
fiscal year to assist with the implementation of the modification of the Streamlined Agreement 22
as required under Section 1 of this act. 23
SECTION 4.(b) This section becomes effective July 1, 2026. 24
SECTION 5. Unless otherwise provided, this act is effective when it becomes law. 25