Protect Youth From Harms of Vaping & Nicotine.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 425

Short Title: Protect Youth From Harms of Vaping & Nicotine. (Public)
Sponsors: Representatives Loftis, Campbell, Ross, and Willis (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
March 19, 2025
*H425-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO PROTECT THE YOUTH FROM THE HARMFUL EFFECTS OF VAPING AND 2
NICOTINE ADDICTION B Y RAISING THE LEGAL SALES AGE OF TOBACCO 3
PRODUCTS TO AGE 21 AND TO REQUIRE A TOBACCO RETAIL SALES PERMIT. 4
The General Assembly of North Carolina enacts: 5
6
PART I. REQUIRE PERMIT FOR SALE OF TOBACCO PRODUCTS AND RESTRICT 7
PURCHASE OF TOBACCO PRODUCTS 8
SECTION 1. The General Statutes are amended by adding a new Chapter to read: 9
"Chapter 18D. 10
"Tobacco Products Retail Sales. 11
"Article 1. 12
"Definitions and Authority. 13
"§ 18D-100. Definitions. 14
(a) Unless the context requires otherwise, the following definitions apply in this Chapter: 15
(1) ALE Division. – As defined in G.S. 18B-101. 16
(2) Alternative nicotine product. – Any noncombustible product that contains 17
nicotine, whether natural or synthetic, but does not contain tobacco and is 18
intended for human consumption whether chewed, absorbed, dissolved, 19
ingested, or by other means. This term does not include a vapor product or any 20
product regulated by the United S tates Food and Drug Administration under 21
Chapter V of the federal Food, Drug, and Cosmetic Act. 22
(3) Commission. – As defined in G.S. 18B-101. 23
(4) Component. – A "component or part," as that term is defined in section 1140.3 24
of Title 21 of the Code of Federal Regulations, as amended from time to time. 25
This term includes cigarette wrapping papers, which has the same meaning as 26
the term "cigarette paper" in 26 U.S.C. § 5702(e). 27
(5) Consumable product. – As defined in G.S. 105-113.4. For purposes of this 28
Chapter, a consumable product does not contain any tobacco leaf. 29
(6) Consumer. – As defined in G.S. 105-113.4. 30
(7) Delivery sale. – As defined in G.S. 105-113.4. 31
(8) Delivery seller. – As defined in G.S. 105-113.4. 32
(9) Delivery seller permit. – A permit issued to a delivery seller pursuant to this 33
Chapter. 34
(10) Delivery service. – As defined in G.S. 105-113.4. 35
General Assembly Of North Carolina Session 2025
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(11) Distribute. – Sell, furnish, give, or provide tobacco products, including 1
tobacco product samples, to the ultimate consumer. 2
(12) E-liquid. – As defined in G.S. 14-401.18A. 3
(13) Packaging. – Has the same meaning as the term "package" in G.S. 105-113.4. 4
(14) Permit. – A permit issued to a retail dealer pursuant to this Chapter, unless the 5
context clearly requires otherwise. 6
(15) Person. – An individual, firm, partnership, association, corporation, limited 7
liability company, other organization or group, or other combination of 8
individuals acting as a unit. 9
(16) Premises. – A fixed permanent establishment, including all areas inside or 10
outside the licensed establishment, where the permittee has control through a 11
lease, deed, or other legal process. 12
(17) Proof of age. – A drivers license, a special identification card issued under 13
G.S. 20-37.7 or issued by the state agency of any other st ate authorized to 14
issue similar official state special identification cards for that state, a military 15
identification card, or a passport showing the purchaser's age to be at least the 16
required age for purchase and bearing a physical description of the per son 17
named on the card reasonably describing the purchaser. 18
(18) Remote sale. – As defined in G.S. 105-113.4. 19
(19) Remote seller. – As defined in G.S. 105-113.4. 20
(20) Remote seller permit. – A permit issued to a remote seller pursuant to this 21
Chapter. 22
(21) Retail dealer. – As defined in G.S. 105-113.4. 23
(22) Retail seller. – A retail dealer who is not a delivery seller or remote seller. 24
(23) Retail seller permit. – A permit issued to a retail seller pursuant to this Chapter. 25
(24) Sale. – As defined in G.S. 105-113.4. 26
(25) Sample. – A tobacco product distributed to members of the general public at 27
no cost for the purpose of promoting the product. 28
(26) Secretary. – The Secretary of the Department of Revenue. 29
(27) Tobacco product. – Any product that contains tobacco or nicotine from any 30
source and is intended for human consumption. This term includes a n 31
alternative nicotine product, vapor product, e -liquid, consumable product, 32
component of a tobacco product, or comp onent of a n alternative nicotine 33
product. 34
(28) Tobacco retail sales law. – Any statute or statutes in this Chapter, Article 2A 35
of Chapter 105 of the General Statutes, and the rules issued by the 36
Commission under the authority of this Chapter or the Department of Revenue 37
under the authority of Article 2A of Chapter 105 of the General Statutes. 38
(29) Tobacco retail sales permit. – A retail seller permit, a delivery seller permit, 39
or a remote seller permit issued to a retail dealer pursuant to this Chapter. 40
(30) Vapor product. – Any noncombustible product that employs a mechanical 41
heating element, battery, or electronic circuit regardless of shape or size and 42
that can be used to heat a consumable product or e-liquid contained in a vapor 43
cartridge. This term incl udes an electronic cigarette, electronic cigar, 44
electronic cigarillo, electronic pipe, vape pen, and e-liquid. This term does not 45
include any product regulated by the United States Food and Drug 46
Administration under Chapter V of the federal Food, Drug, and Cosmetic Act. 47
(b) Except as otherwise defined in this Chapter, the definitions in G.S. 105-113.4 apply 48
to this Chapter. 49
"§ 18D-101. Powers and duties of the Commission. 50
(a) The Commission shall have the authority to do all of the following: 51
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(1) Administer the tobacco retail sales laws pursuant to this Chapter. 1
(2) Provide for enforcement of the tobacco retail sales laws pursuant to this 2
Chapter, in conjunction with the ALE Division. 3
(3) Issue permits and impose sanctions against permittees in accordance with this 4
Chapter. 5
(b) The Commission shall have all other powers which may be reasonably implied from 6
the granting of the express powers listed in subsection (a) of this section, or which may be 7
incidental to, or convenient for, performing the duties given to the Commission. 8
"§ 18D-102. Inspection of licensed premises. 9
(a) To procure evidence of violations of the tobacco retail sales law, alcohol law 10
enforcement agents and employees of the Commission shall have authority to investigate the 11
operation of each licensed premises for which a tobacco retail sales permit has been issued, to 12
make inspections that include viewing the entire premises, and to examine the books and records 13
of the permittee. The inspection authorized by this section may be made at any time it reasonably 14
appears that someone is on the premises. 15
(b) Refusal by a permittee or by any employee of a permittee to allow officers or 16
employees of the Commission to enter the premises to make an inspection authorized by 17
subsection (a) of this section shall be cause for revocation, suspension, or other action against the 18
permit or the permittee as provided in G.S. 18D-103. It shall be a Class 2 misdemeanor for any 19
person to resist or obstruct an officer attempting to make a lawful inspection under this section. 20
"§ 18D-103. Administrative penalties. 21
(a) For any violation of the tobacco retail sales laws, the Commission may take any of 22
the following actions against a permittee: 23
(1) Suspend the permittee's permit for a specified period of time not longer than 24
three years. 25
(2) Revoke the permittee's permit. 26
(3) Fine the permittee up to five hundred dollars ($500.00) for the first violation, 27
up to seven hundred fifty dollars ($750.00) for the second violation within 28
three years, and up to one thousand dollars ($1,000) for the third violation 29
within three years of the first violation. 30
(4) Suspend the permittee 's permit under subdivision (1) of this subsection and 31
impose a fine under subdivision (3) of this subsection. 32
(b) In any case in whic h the Commission is entitled to suspend or revoke a permit, the 33
Commission may accept from the permittee an offer in compromise to pay a penalty of not more 34
than five thousand dollars ($5,000). The Commission may either accept a compromise or revoke 35
a permit, but not both. The Commission may accept a compromise and suspend the permit in the 36
same case. 37
(c) The clear proceeds of fines and penalties assessed pursuant to this section shall be 38
remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2. 39
(d) Suspension or revocation of a permit is grounds for suspension or revocation of any 40
related State or local revenue license. 41
(e) Unless some other disposition is ordered by the Commission for a tobacco retail sales 42
law violation, revocation or suspension of a permit under subsection (a) of this section does not 43
include automatic revocation or suspension, respectively, of any ABC permit held by the same 44
permittee for the same establishment. 45
"§ 18D-104. Rules. 46
The Commission shall have au thority to adopt, amend, and repeal rules to carry out the 47
provisions of this Chapter. Those rules shall become effective when adopted and filed pursuant 48
to the provisions of Chapter 150B of the General Statutes. 49
"§ 18D-105. Applicability of Administrative Procedure Act. 50
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(a) A permit is a "license" within the meaning of G.S. 150B-2 and, except for a 1
confirmation pursuant to G.S. 18D-300(a)(7), a Commission action on issuance, suspension, or 2
revocation of a permit, other than a temporary permit issued under G.S. 18D-304, is a "contested 3
case" subject to the provisions of Chapter 150B of the General Statutes, except as provided in 4
this section. 5
(b) Hearings on permits shall be held within 100 miles, as best can be determined by the 6
Commission, of the county seat of the county in which the licensed business or proposed business 7
is located. The hearing may be held, however, at any place upon agreement of the Commission 8
and all other parties. 9
(c) In making a final decision in a contested case in which an issue is whether to deny an 10
application for a tobacco retail sales permit because the applicant is unsuitable, the Commission 11
may hear evidence of acts that occurred after the date the contested ca se hearing was held if the 12
evidence is admissible under G.S. 150B-29(a). New evidence heard under this subsection is not 13
grounds for reversal or remand under G.S. 150B-51(a). 14
"Article 2. 15
"Sales. 16
"§ 18D-200. Tobacco retail permit required. 17
(a) It is unlawful to sell a tobacco product to a consumer in this State without a permit 18
issued by the Commission in accordance with this Chapter. 19
(b) Notwithstanding subsection (a) of this section, no permit issued pursuant to this 20
Chapter shall be required by a deliver y service making deliveries on behalf of another person 21
holding a permit issued pursuant to this Chapter. 22
"§ 18D-201. Disposition of seized tobacco products. 23
(a) A law enforcement officer who seizes tobacco products as evidence of a tobacco retail 24
sales law violation shall provide for the storage of those tobacco products until the 25
commencement of the trial or administrative hearing relating to the violation, unless some other 26
disposition is authorized under this section. 27
(b) After giving notice to each d efendant, to any other known owner, and to the 28
Commission, a judge may order any of the following dispositions of tobacco products seized as 29
evidence of a tobacco retail sales law violation: 30
(1) The destruction of any tobacco products except that amount needed for 31
evidence at trial. 32
(2) The sale of any tobacco products other than any tobacco products needed for 33
evidence at trial, if the trial is likely to be delayed for more than 90 days, or if 34
the quantity or nature of the tobacco products is such that s torage is 35
impractical or unduly expensive. 36
(3) The destruction of the tobacco products if storage or sale is not practical. 37
(4) Continued storage of the tobacco products. 38
(c) After the criminal charge is resolved, a judge may order any of the following 39
dispositions of seized tobacco products: 40
(1) If the owner or possessor of the tobacco products is found guilty of a criminal 41
charge relating to those tobacco products, the judge may order the sale or 42
destruction of any tobacco products that were held until trial. 43
(2) If the owner or possessor of the tobacco products is found not guilty, or if 44
charges are dismissed or otherwise resolved in favor of the owner or 45
possessor, the judge shall order the tobacco products returned to that owner or 46
possessor, except as provided in subdivision (3) of this subsection. 47
(3) If the owner or possessor of the tobacco products is found not guilty, or if 48
charges are otherwise resolved in favor of the owner or possessor, but 49
possession of the tobacco products by that owner or poss essor would be 50
unlawful, the judge shall order the tobacco products either sold or destroyed. 51
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(4) If ownership of the tobacco products remains uncertain after trial or after the 1
charges have been dismissed, the judge may order the tobacco products held 2
for a specified time, until ownership of the tobacco products can be 3
determined. 4
(d) If tobacco products used as evidence in a criminal proceeding are also needed as 5
evidence at an administrative hearing, a judge shall not order any of the dispositions set ou t in 6
subsection (c) of this section but shall order the tobacco products held for the administrative 7
hearing and for a determination of final disposition by the Commission. The Commission may, 8
before or after an administrative hearing, order any of the dis positions authorized under 9
subsections (b) and (c) of this section. If no related criminal proceeding has commenced, the 10
Commission shall not order destruction of tobacco products until notice has been given to the 11
district attorney for the district where the tobacco products were seized or any violation of 12
tobacco retail sales laws related to the seizure of the tobacco products is likely to be prosecuted. 13
(e) The sale of tobacco products shall be by public auction to a tobacco products 14
manufacturer, a tobacco products wholesaler, or a tobacco retail sales permittee. 15
(f) An agency selling tobacco products seized under the provisions of this Chapter shall 16
keep the proceeds in a separate account until some other disposition is ordered by a judge or the 17
Commission. In a criminal proceeding, if the owner or possessor of the tobacco products is found 18
guilty of a violation relating to seizure of the tobacco products, if the owner or possessor is found 19
not guilty or the charge is dismissed or otherwise resolved in favor of the owner or possessor, 20
but the possession of the tobacco products by that owner or possessor would be unlawful, or if 21
the ownership of the tobacco products cannot be determined, the proceeds from the sale of those 22
tobacco products shall be pai d to the school fund of the county in which the tobacco products 23
were seized. If the owner or possessor of tobacco products seized for violation of the tobacco 24
retail sales laws is found not guilty of criminal charges relating to the seizure of those tobac co 25
products or the charge is dismissed or otherwise resolved in favor of the owner or possessor, and 26
if possession of the tobacco products by that owner or possessor was lawful when the tobacco 27
products were seized, the proceeds from the sale of those toba cco products shall be paid to the 28
owner or possessor. The agency making the sale may deduct and retain from the amount to be 29
placed in the county school fund the costs of storing the seized tobacco products and of 30
conducting the sale but may not deduct those costs from the amount to be turned over to an owner 31
or possessor of the tobacco products. 32
(g) Any person who claims any of the following resulting from the seizure of tobacco 33
products may bring an action in the superior court of the county in which the tobacco products 34
were seized: 35
(1) To be the owner of tobacco products that are wrongfully held. 36
(2) To be the owner of tobacco products that are needed as evidence in another 37
proceeding. 38
(3) To be entitled to proceeds from a sale of tobacco products. 39
(4) To be entitled to restitution for tobacco products wrongfully destroyed. 40
"§ 18D-202. Forfeiture. 41
(a) Tobacco products possessed or sold in violation of the tobacco retail sales laws shall 42
be subject to forfeiture. 43
(b) Tobacco products which may be possessed lawfully shall not be subject to forfeiture 44
when they were used unlawfully by someone other than the owner of the tobacco products and 45
the owner did not consent to the unlawful use. 46
(c) If tobacco products subject to forfeiture have not already been seized as part of an 47
arrest or search, a law enforcement officer may apply to a judge for an order authorizing seizure 48
of that tobacco product. An order for seizure may be issued only after criminal process has been 49
issued for tobacco retail sales law violation in connection with that tobacco product. The order 50
General Assembly Of North Carolina Session 2025
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shall describe the tobacco product to be seized and shall state the facts establishing probable 1
cause to believe that the tobacco product is subject to forfeiture. 2
(d) A law enforcement officer seizing tobacco product subject to forfeiture shall provide 3
for its safe storage until trial. 4
(e) The presiding judge in a criminal proceeding for violation of tobacco retail sales laws 5
may take any of the following actions after resolution of a charge against the owner or possessor 6
of the tobacco product subject to forfeiture under this section: 7
(1) If the owner or possessor of the tobacco product is found guilty of a tobacco 8
retail sales offense, the judge may order the tobacco product forfeited. 9
(2) If the owner or possessor of the tobacco product is found not guilty, or if the 10
charge is dismissed or otherwise resolved in favor of the owner or possessor, 11
the judge shall order the tobacco product returned to the owner or possessor. 12
(3) If ownership of the tobacco product remains uncertain after trial, the judge 13
may order the tobacco product held for a specified time to determine 14
ownership. If the judge finds that ownership cannot be determined with 15
reasonable effort, the judge shall order the tobacco product forfeited. 16
(4) Regardless of the disposition of the charge, if the tobacco product is something 17
that may not be possessed lawfully, the judge shall order it forfeited. 18
(5) If the tobacco product is also needed as evidence at an administrative hearing, 19
the judge shall provide that the order does not go into effect until the 20
Commission determines that the tobacco product is no longer needed for the 21
administrative proceeding. 22
(f) A judge ordering forfeiture of the tobacco product may order any one of the following 23
dispositions: 24
(1) Sale at public auction to a tobacco products manufacturer, a tobacco products 25
wholesaler, or a tobacco retail sales permittee. 26
(2) Destruction, if possession of the tobacco product would be unlawful or if sale 27
or other disposition is not practical. 28
(g) If the forfeited tobacco product is sold, the proceeds of that sale shall be paid to the 29
school fund of the county in which the tobacco product was seized, except as provided in 30
subsection (h) of this section. Before placing the proceeds in the school fund, the agency making 31
the sale may deduct and retain the costs of storing the tobacco product and conducting the sale. 32
(h) At any time before forfeiture is ordered, an owner of the seized tobacco product or a 33
holder of a security interest in the seized tobacco product, other than the defendant, may apply 34
to protect the person's interest in the tobacco product. The application may be made to any judge 35
who has jurisdiction to try the offense with which the tobacco product is associated. If the judge 36
finds that the tobacco product owner or holder of a security interest did not consent to the 37
unlawful use of the tobacco product, and that the tobacco product may be possessed lawfully by 38
the owner or holder, the judge may order any of the following: 39
(1) That the tobacco product be returned to the owner, if it is not needed as 40
evidence at trial. 41
(2) That the tobacco product be returned to the owner following trial or other 42
resolution of the case. 43
(3) That, if the toba cco product is sold following trial, a specified sum be paid 44
from the proceeds of that sale to the holder of the security interest. 45
(i) When tobacco product is seized for forfeiture but the owner is unknown, the district 46
attorney may seek forfeiture under this section by an action in rem against the tobacco product. 47
If the owner is known and has been charged with an offense but is unavailable for trial, the district 48
attorney may seek forfeiture either by an action in rem against the tobacco product or by motion 49
in the criminal action. 50
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(j) Any owner of tobacco product seized for forfeiture may apply to a judge to have the 1
tobacco product returned to him if no criminal charge has been made in connection with that 2
tobacco product within a reasonable time after seizure. The judge may not order the return of the 3
tobacco product if possession by the owner would be unlawful. 4
"Article 3. 5
"Issuance of Permits. 6
"§ 18D-300. Qualifications for a permit. 7
(a) To be eligible to receive and to hold a tobacco retail sales permit, a person must satisfy 8
all of the following requirements: 9
(1) Be at least 21 years old. 10
(2) Be a resident of North Carolina, unless either of the following applies: 11
a. The person is an officer, director , or stockholder of a corporate 12
applicant or permittee and is not a manager or otherwise responsible 13
for the day-to-day operation of the business. 14
b. The person has executed a power of attorney designating a qualified 15
resident of this State to serve as atto rney-in-fact for the purposes of 16
receiving service of process and managing the business for which 17
permits are sought. 18
(3) Not have been convicted of a felony within three years and, if convicted of a 19
felony before then, have had his or her citizenship restored. 20
(4) Not have been convicted of a tobacco product retail sales offense pursuant to 21
this Chapter within two years. 22
(5) Not have been convicted of a misdemeanor controlled substance offense 23
within two years. 24
(6) Not have had a tobacco retail sales permit revoked within three years, except 25
where the revocation was based solely on a permittee 's failure to pay the 26
annual renewal fee required in G.S. 18D-302(d). 27
(7) Be current in filing all applicable tax returns to the State and in payment of all 28
taxes, interest, and penalties that are collectible under G.S. 105-241.22. 29
To avoid undue hardship, however, the Commission may decline to take action under 30
G.S. 18D-103 against a permittee who is in violation of subdivision (3), (4), or (5) of this 31
subsection. 32
(b) A person has been "convicted" for the purposes of subsection (a) of this section when 33
the person has been found guilty or has entered a plea of guilty or nolo contendere and judgment 34
has been entered. A felony conviction in another jurisdiction disqualifie s a person from being 35
eligible to receive or hold a tobacco retail sales permit if the conduct would also constitute a 36
felony in North Carolina. A conviction of a tobacco retail sales law or misdemeanor drug offense 37
in another jurisdiction disqualifies a person from being eligible to receive or hold a tobacco retail 38
sales permit if the conduct would constitute an offense in North Carolina, unless the Commission 39
determines that under North Carolina procedure judgment would not have been entered under 40
the same circumstances. Revocation of a permit in another jurisdiction disqualifies a person if 41
the conduct would be grounds for revocation of a tobacco retail sales permit in North Carolina. 42
(c) For a permit to be issued to and held for a business, each of the f ollowing persons 43
associated with that business must qualify under subsection (a) of this section: 44
(1) The owner of a sole proprietorship. 45
(2) Each member of a firm, association, or general partnership. 46
(3) Each general partner in a limited partnership. 47
(4) Each manager and any member with a twenty -five percent (25%) or greater 48
interest in a limited liability company. 49
(5) Each officer, director, and owner of twenty-five percent (25%) or more of the 50
stock of a corporation except that the requirement of subdiv ision (1) of 51
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subsection (a) of this section does not apply to the officer, director, or 1
stockholder unless he or she is a manager or is otherwise responsible for the 2
day-to-day operation of the business. 3
(6) The manager of an establishment operated by a corporation. 4
(7) Any manager who has been empowered as attorney -in-fact for a nonresident 5
individual or partnership. 6
(8) Any manager or person otherwise responsible for the day-to-day operation of 7
the business, if none of the persons listed in subdivisions (1) through (7) of 8
this subsection are a manager or person otherwise responsible for the 9
day-to-day operation of the business. 10
(d) Upon request of the Commission, the Department of Revenue shall provide 11
information to the Commission to confirm a person 's compliance with subdivision (7) of 12
subsection (a) of this section. If the Department of Revenue notifies the Commission that a person 13
is not in compliance, then the Commission may not issue or renew the person 's permit until the 14
Commission receives notice from the Department of Revenue that the person is in compliance. 15
The requirement to pay all taxes, interest, and penalties may be satisfied by an operative 16
agreement under G.S. 105-237 covering any amounts that are collectible under G.S. 105-241.22. 17
Chapter 150B of the General Statutes does not apply to a Commission action on issuance, 18
suspension, or revocation of a tobacco retail sales permit under subdivision (7) of subsection (a) 19
of this section. 20
"§ 18D-301. Issuance of permits. 21
(a) All tobacco retail sales permits shall be issued by the Commission. 22
(b) Before issuing a permit, the Commission shall be satisfied that the applicant is a 23
suitable person to hold a tobacco retail sales permit and that the location is a suitable place to 24
hold the permit for w hich the applicant has applied. Factors the Commission shall consider in 25
determining whether the applicant and the business location are suitable are all of the following: 26
(1) The reputation, character, and criminal record of the applicant. 27
(2) Any other e vidence that would tend to show whether the applicant would 28
comply with the tobacco retail sales laws. 29
(3) Whether the operation of the retail seller permit applicant 's business at that 30
location would be detrimental to the neighborhood, including evidence 31
admissible under G.S. 150B-29(a) of any of the following: 32
a. Past revocations, suspensions, and violations of ABC laws by prior 33
permittees related to or associated with the applicant, or a business 34
with which the applicant is associated, within the immediate preceding 35
12-month period at this location. 36
b. Evidence of illegal drug activity on or about the licensed premises. 37
c. Evidence of fighting, disorderly conduct, and other dangerous 38
activities on or about the licensed premises. 39
(c) The Commission shall have the sole power, in its discretion, to determine the 40
suitability and qualifications of an applicant for a permit. The Commission shall also have the 41
authority to determine the suitability of the location to which the permit may be issued. 42
"§ 18D-302. Application for permit; fees. 43
(a) An application for a permit shall be on a form prescribed by the Commission and shall 44
be notarized in accordance with Chapter 10B of the General Statutes. Each person required to 45
qualify under G.S. 18D-300(c) shall sign an d swear to the application and submit a full set of 46
fingerprints with the application. 47
(b) Before issuing a new permit, the Commission, with the assistance of the ALE 48
Division, shall investigate the applicant and, for a retail seller permit, the premises for which the 49
permit is requested. An applicant shall cooperate fully with the investigation. The State Bureau 50
of Investigation may provide a criminal record check to the ALE Division for a person who has 51
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applied for a permit through the Commission. The ALE Division shall provide to the State Bureau 1
of Investigation, along with the request, the fingerprints of the applicant, any additional 2
information required by the State Bureau of Investigation , and a form signed by the applicant 3
consenting to the check of the criminal record and to the use of the fingerprints and other 4
identifying information required by the State or national repositories. The applicant's fingerprints 5
shall be forwarded to the State Bureau of Investigation for a search of the State's criminal history 6
record file, and the State Bureau of Investigation shall forward a set of the fingerprints to the 7
Federal Bureau of Investigation for a national criminal history check. The ALE Division and the 8
Commission shall keep all information pursuant to this subsection privileged, in accordance with 9
applicable State law and federal guidelines, and the information shall be confidential and shall 10
not be a public record under Chapter 132 of the General Statutes. The State Bureau of 11
Investigation may c harge each applicant a fee for conducting the checks of criminal history 12
records authorized by this subsection. 13
(c) Knowingly making a false statement in an application for a permit shall be grounds 14
for denying, suspending, revoking , or taking other action against the permit as provided in 15
G.S. 18D-103 and shall also be unlawful. 16
(d) An application for a permit shall be accompanied by payment of the following 17
application fee: 18
(1) Retail seller permit. – $400.00. 19
(2) Delivery seller permit. – $400.00. 20
(3) Remote seller permit. – $400.00. 21
(e) The fee required by subsection (d) of this section shall not be refunded. 22
(f) All fees collected by the Commission under this Chapter shall be remitted to the State 23
Treasurer for the General Fund. 24
"§ 18D-303. Duration of permit; renewal and transfer. 25
(a) Once issued, permits shall be valid for up to one year, from May 1 to April 30. 26
(b) Application for renewal of a permit shall be on a form provided by the Commission. 27
An application for renewal shall be accompanied by a r enewal fee. The renewal fee shall be the 28
same amount as the application fee set in G.S. 18D-302. A renewal fee shall not be refundable. 29
(c) Notwithstanding subsection (a) of this section, the Commission shall not revoke a 30
permit for failure to pay a renewa l application fee until June 1 of each year. No later than five 31
business days after April 30 of each year, the Commission shall notify permittees who have not 32
paid any required renewal application fees as of April 30. The Commission shall charge a late 33
fee of twenty-five percent (25%) of the renewal application fee for a permit for which the renewal 34
application fee is submitted after April 30. 35
(d) Change in Ownership. – 36
(1) Except as provided in subdivisions (2) and (2a) of this subsection, all permits 37
for an establishment shall automatically expire and shall be surrendered to the 38
Commission in any of the following circumstances: 39
a. Ownership of the establishment changes. 40
b. There is a change in the membership of the firm, association , or 41
partnership owning the establishment, involving the acquisition of a 42
twenty-five percent (25%) or greater share in the firm, association, or 43
partnership by someone who did not previously own a twenty -five 44
percent (25%) or greater share. 45
c. Twenty-five percent (25%) or more o f the stock of the corporate 46
permittee owning the establishment is acquired by someone who did 47
not previously own twenty-five percent (25%) or more of the stock. 48
(2) Notwithstanding subsection (e) of this section, any person who through 49
contract, lease, management agreement, or change of ownership or transfer of 50
business as provided in subdivision (1) of this subsection becomes lawfully 51
General Assembly Of North Carolina Session 2025
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entitled to use and control of the premises of an establishment that holds 1
permits immediately prior to such change of own ership may continue to 2
operate the establishment, as successor to the prior permittee, to the same 3
extent as the predecessor permittee until the person receives a temporary or 4
new permit, including purchasing malt beverages, unfortified wine, or 5
fortified wine to be resold for on -premises or off -premises consumption, or 6
spirituous liquor for use in mixed beverages sold by the establishment, as 7
applicable under the permit, subject to the following limitations: 8
a. The person shall provide written or electroni c notice to the 9
Commission of the name of the non -permitted person, the name and 10
address of the permitted establishment, and the date of the change in 11
ownership. The person may not operate the establishment as provided 12
in this subdivision until the person has provided notice to the 13
Commission. The Commission shall not require any additional 14
documentation besides the written or electronic notice to satisfy this 15
requirement. The prior permittee shall not be liable for any acts or 16
omissions of the non -permitted person operating the establishment. 17
Any violations of the tobacco retail sales law committed by the person 18
or any actions taken by the Commission to revoke or suspend the 19
permit based on the acts or omissions of the person operating the 20
establishment shall not preclude the prior permittee from receiving a 21
tobacco retail sales permit for a different establishment. 22
b. The person shall submit a new permit application to the Commission 23
within 60 days after the change of ownership. If the person does not 24
apply for a new permit within 60 days, all permits for the establishment 25
shall automatically expire and shall be surrendered to the Commission. 26
c. The 60 -day period to file a new permit application shall only be 27
allowed once per 24 months for each establishment that holds a 28
tobacco retail sales permit, unless the establishment requests and the 29
Commission grants a waiver of the 24 -month requirement. The 30
Commission shall grant a waiver of the 24 -month requirement if it 31
determines that the public health, safety, an d welfare would not be 32
harmed by granting the waiver. 33
d. This subdivision shall apply only to establishments that hold tobacco 34
retail sales permits that are in good standing and that have not been 35
found responsible by the Commission or a court of competent 36
jurisdiction of a gambling, assault, disorderly conduct, prostitution, or 37
controlled substances violation within 12 months prior to the date the 38
non-permitted person becomes entitled to use and control of the 39
establishment. 40
e. The person shall be authoriz ed to operate the establishment as 41
successor to the prior permittee to the same extent as the predecessor 42
permittee until the Commission either issues or denies the permit 43
application submitted pursuant to sub -subdivision b. of this 44
subdivision. 45
(2a) The t ransfer by a person of any ownership interest to a revocable or 46
irrevocable trust established by the person shall not constitute a change in 47
ownership for purposes of subdivision (1) of this subsection if the person 48
transferring the ownership interest to t he trust continues to operate the 49
establishment. If the person who transferred the ownership interest ceases to 50
operate the establishment following the transfer of the ownership interest to 51
General Assembly Of North Carolina Session 2025
House Bill 425-First Edition Page 11
the trust, this shall constitute a change in ownership for purpose s of 1
subdivision (1) of this subsection. The trustee shall notify the Commission 2
within 30 days if the person who transferred the ownership interest ceases to 3
operate the establishment. 4
(e) A corporation holding a permit for an establishment for which the manager is required 5
to qualify as an applicant under G.S. 18D-300(c) shall, within 30 days after employing a new 6
manager, submit to the Commission an application for substitution of a manager. The application 7
shall be signed by the new manager, shall be on a form provided by the Commission, and shall 8
be accompanied by a fee of ten dollars ($10.00). The fee shall not be refundable. 9
(f) A permit issued pursuant to this Chapter may not be transferred from one person to 10
another or from one location to another. 11
(g) The Commission may issue duplicate permits for an establishment when the existing 12
valid permits have been lost or damaged. The request for duplicate permits shall be on a form 13
provided by the Commission, certified by the permittee and the ALE Division, and accompanied 14
by a fee of ten dollars ($10.00). 15
(h) The Commission may issue new permits to a permittee upon application and payment 16
of a fee of ten dollars ($10.00) for each location when the permittee 's name or name of the 17
business is changed. 18
"§ 18D-304. Miscellaneous provisions concerning permits. 19
(a) The following apply to permits issued pursuant to this Chapter: 20
(1) A retail seller permit shall authorize the sale of tobacco products only in the 21
physical presence of the consumer on the fixed premises of the establishment 22
located in the State and named in the permit. A retail seller permit shall be 23
issued to the owner of the business conducted on the premises or to the 24
management company employed to independently manage and operate the 25
business. The Commission may determine if a management agreement 26
delegates sufficient managerial control and independence to a manager or 27
management company to require a retail seller permit to be issued to the 28
manager. 29
(2) A delivery seller permit shall authorize a delivery sale only, originating either 30
inside or outside of the State. A delivery seller permit shall be issued to the 31
owner of the business or to the management company employed to 32
independently manage and operate the business. The Commission may 33
determine if a management agreement delegates sufficient managerial control 34
and independence to a manager or management company to require a delivery 35
seller permit to be issued to the manager. 36
(3) A remote seller permit shall authorize a remote sale only, origi nating either 37
inside or outside of the State. A remote seller permit shall be issued to the 38
owner of the business or to the management company employed to 39
independently manage and operate the business. The Commission may 40
determine if a management agreement delegates sufficient managerial control 41
and independence to a manager or management company to require a remote 42
seller permit to be issued to the manager. 43
(b) Each retail seller permit that is held by an establishment shall be posted in a prominent 44
place on the premises. Each delivery seller or remote seller shall post its delivery seller or remote 45
seller permit number on any advertisement, the internet, or other online service or application a 46
customer may use to submit an order and on all invoices or rec eipts for tobacco products 47
delivered by mail or a delivery service. 48
(c) No tobacco retail sales permit shall be issued to a business on the campus or property 49
of a public school, college, or university. 50
General Assembly Of North Carolina Session 2025
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(d) A permit shall automatically expire and shall be surrendered to the Commission if the 1
person to whom it is issued does not commence the activity authorized by the permit within six 2
months of the date the permit is effective. Before the expiration of the six -month period, the 3
Commission may waive this provision in individual cases for good cause. 4
(e) Upon issuing a permit , the Commission shall send notice of the issuance, with the 5
name and address of the permittee and the establishment, to all of the following: 6
(1) The Department of Revenue. 7
(2) The Department of Health and Human Services, Division of Mental Health, 8
Developmental Disabilities, and Substance Use Services. 9
(3) The ALE Division. 10
"§ 18D-305. Temporary permits. 11
When an application has been received in proper form, with the required application fee, the 12
Commission may issue a temporary permit for any of the activities for which permits are 13
authorized under this Chapter. A temporary permit may be revoked summarily by the 14
Commission without complying with the provisions of Chapter 150B of the Gener al Statutes. 15
Revocation of a temporary permit or withdrawal by the Commission of a pending application by 16
a permittee possessing a temporary permit shall be effective upon service of the notice of 17
revocation or withdrawal upon the permittee at either the p ermittee's residence or the address 18
given for the business in the permit application or upon the expiration of five business days after 19
the notice of the revocation or withdrawal has been mailed to the permittee at either the 20
permittee's residence or the a ddress given for the business in the permit application. No further 21
notice shall be required. 22
"§ 18D-306. Allow electronic submission of payments and forms. 23
(a) The Commission shall make all forms required by the Commission to apply for and 24
receive a permit available on the Commission's website, and the Commission shall, to the extent 25
practicable, allow for the electronic submission of these forms. Any form required by the 26
Commission to apply for and receive a permit that requires a signature may be submitted with an 27
electronic signature in accordance with Article 40 of Chapter 66 of the General Statutes and 28
notarized in accordance with Chapter 10B of the General Statutes. 29
(b) The Commission shall accept electronic payments for any fee required under th is 30
Chapter to receive a permit. For purposes of this subsection, the term "electronic payment" means 31
payment by charge card, credit card, debit card, or by electronic funds transfer as defined in 32
G.S. 105-228.90. 33
(c) The Commission may charge a fee to be u sed to cover costs incurred by the 34
Commission in processing forms electronically and accepting payments electronically. The fee 35
authorized under this subsection may not exceed five dollars ($5.00). 36
"§ 18D-307. Tobacco sales permits and ABC permits. 37
(a) Applications for permits under this Chapter may be filed simultaneously or in 38
conjunction with applications for ABC permits under Chapter 18B of the General Statutes and 39
may be combined by the Commission in a single application. 40
(b) The Commission may use, rely upon, or incorporate by reference any information an 41
applicant for a permit under this Chapter has submitted in conjunction with an ABC permit issued 42
pursuant to Chapter 18B of the General Statutes. 43
"Article 4. 44
"Retail Activities. 45
"§ 18D-400. Responsibilities of permittee. 46
(a) For purposes of this Chapter, a retail seller permittee shall be responsible for the entire 47
premises for which the permit is issued. The permittee shall keep the premises clean, well-lighted, 48
and orderly. 49
(b) For purposes of this Chapter, a permittee shall be responsible for the actions of all 50
employees of the business for which the permit is issued. 51
General Assembly Of North Carolina Session 2025
House Bill 425-First Edition Page 13
(c) A permittee shall not knowingly employ in the sale or distribution of tobacco products 1
any person who has been a past permit holder under this Chapter whose permit had been revoked 2
within the last 18 months and who had been the permit holder at the location where the person 3
would be employed. 4
(d) An employee or agent of a retail seller shall demand proof of age from a prospective 5
purchaser of tobacco products before the tobacco product is released to the purchaser, if the 6
person has reasonable grounds to believe that the prospective purchaser is under 30 years of age. 7
(e) A delivery seller and remote seller shall do both of the following: 8
(1) Perform an age verification through an independent, third -party age 9
verification service that compares information available from public records 10
to the personal information entered by the individual during the ordering 11
process to establish that the individual ordering the tobacco products is 21 12
years of age or older. 13
(2) Use a method of mailing, shipping, or delivery that requires the signature of a 14
person at least 21 years of age before the tobacco product is released to the 15
purchaser. 16
(f) Retail sellers of tobacco products shall train their employees or agents in the 17
requirements of this Chapter, to include all of the following: 18
(1) Which products the retail dealer sells meet the definition of a tobacco product. 19
(2) The age requirements for purchasing tobacco products. 20
(3) Acceptable forms of identification. 21
(4) Methods to detect fake, altered, and imposter forms of identification. 22
(5) Penalties for sales to underage persons. 23
(6) Methods of identifying potentially underage persons and to prevent underage 24
sales. 25
(g) Retail dealers shall prominently display to the ultimate consumer the following 26
statement: "N.C. LAW STRICTLY PROHIBITS THE PURCHASE OF TOBACCO 27
PRODUCTS, ALTERNATIVE NICOTINE PRODUCTS, VAPOR PRODUCTS, AND THEIR 28
COMPONENTS BY PERSONS UNDER THE AGE OF 21. PROOF OF AGE REQUIRED." as 29
follows: 30
(1) Retail sellers shall prominently display this required statement near the point 31
of sale on a sign with letters at least 5/8 of an inch high. 32
(2) Delivery sellers and remote sellers shall prominently display this required 33
statement on any advertisement, the internet, or other online service or 34
application a customer may use to submit an order and on all invoices or 35
receipts for tobacco products delivered by mail or a delivery service. 36
"§ 18D-401. Conduct on licensed premises. 37
(a) It shall be unlawful for a permittee or the permittee's agent or employee to knowingly 38
allow any of the following kinds of conduct to occur on the licensed premises: 39
(1) Any violation of this Chapter. 40
(2) Any fighting or other disorderly conduct that can be prevented without undue 41
danger to the permittee, the permittee's employees, or patrons. 42
(3) Any violation of the controlled substances, gambling, or prostitution statutes, 43
or any other unlawful acts. 44
(b) It shall be unlawful for a permittee to fail to superintend in person or through a 45
manager the business for which a permit is issued. 46
"§ 18D-402. Miscellaneous tobacco product sales provisions. 47
(a) A permittee shall not sell tobacco products through displays accessible to the public 48
without the assistance of a permittee 's employee or agent other than in an establishment open 49
only to persons 21 years of age and older. 50
(b) It shall be unlawful for any person to do any of the following: 51
General Assembly Of North Carolina Session 2025
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(1) Produce or possess any false or facsimile permit, or for a permittee to display 1
any false or facsimile permit on the person's licensed premises. 2
(2) Refuse to surrender any permit to the Commission upon lawful demand of the 3
Commission or its agents. 4
(3) Offer tobacco products for sale in a vending machine. 5
(4) Distribute tobacco products not approved or authorized by the federal Food 6
and Drug Administration. 7
(5) Sell tobacco products other than in the manufacturer 's or importer's original, 8
sealed, and unopened packagin g that complies with all federal labeling 9
requirements. 10
(6) Distribute or cause to be distributed samples of tobacco products. 11
"Article 5. 12
"Tobacco Product Sales to Underage Persons. 13
"§ 18D-500. Sales to persons under the age of 21. 14
If any person shall sell, aid, assist, or abet any other person in selling tobacco products to any 15
person under the age of 21 years, or if any person shall purchase tobacco products on behalf of a 16
person under the age of 21 years, the person shall be guilty of a Class 2 misdemeanor; provided, 17
however, that it shall not be unlawful to sell tobacco products to an employee or agent of a 18
tobacco retail sales permittee under the age of 21 years when possession of the tobacco product 19
is required pursuant to a tobacco retail sales permit in the performance of that person's duties of 20
employment or contract. 21
"§ 18D-501. Purchase by persons under the age of 21. 22
(a) Except as provided in subsection (b) of this section, if any person under the age of 21 23
years purchases or accepts receipt, or attempts to purchase or accept receipt, of tobacco products, 24
the person shall commit an infraction and may be required by the court to complete a tobacco 25
education program. The Department of Health and Human Services shall maintain a list of 26
available programs on its website for use by the courts for this purpose. The listed programs must 27
be at least 60 minutes in length, free of charge, and educate youth on the health effects of tobacco 28
products and tobacco cessation in a manner conforming to medical e vidence. The person shall 29
not be required to pay any fine or court costs. 30
(b) If a person under the age of 21 presents or offers to any person any purported proof 31
of age which is false, fraudulent, or not actually his or her own, for the purpose of purchasing or 32
receiving any tobacco product, the person shall be guilty of a Class 2 misdemeanor. 33
(c) It shall not be unlawful for an employee or agent of a tobacco retail sales permittee 34
under the age of 21 years to accept receipt of , sell, transport, possess, o r dispense tobacco 35
products when required pursuant to a tobacco retail sales permit in the performance of that 36
person's duties of employment or contract , if the employment of the person for that purpose is 37
lawful under applicable youth employment statutes and Commission rules. 38
"§ 18D-502. Aiding or abetting a person under the age of 21 to purchase or receive tobacco 39
products. 40
(a) If any person less than 21 years of age shall send a person less than 21 years of age to 41
purchase, acquire, receive, or attempt to purchase, acquire, or receive tobacco products or if any 42
person less than 21 years of age shall aid or abet a person who is less than 21 years of age in 43
purchasing, acquiring, or receiving or attempting to purchase, acquire, or receive tobacco 44
products, the person shall commit an infraction and may be required by the court to complete a 45
tobacco education program. The Department of Health and Human Services shall maintain a list 46
of available programs on its website for use by the courts for this purpose. The listed programs 47
must be at least 60 minutes in length, free of charge, and educate youth on the health effects of 48
tobacco products and tobacco cessation in a manner conforming to medical evidence. The person 49
shall not be required to pay any fine or court costs. 50
General Assembly Of North Carolina Session 2025
House Bill 425-First Edition Page 15
(b) If any person 21 years of age or older shall send a person less than 21 years of age to 1
purchase, acquire, receive, or attempt to purchase, acquire, or receive tobacco products, or if any 2
person 21 years of age or older shall aid or abet a pe rson who is less than 21 years of age in 3
purchasing, acquiring, or receiving or attempting to purchase, acquire, or receive tobacco 4
products, the person shall be guilty of a Class 2 misdemeanor. 5
"§ 18D-503. Exceptions to violations of G.S. 18D-501 and G.S. 18D-502. 6
Notwithstanding G.S. 18D-501 and G.S. 18D-502, a person under the age of 21 may lawfully 7
be enlisted by any of the following: 8
(1) Law enforcement, including the Division of Alcohol Law Enforcement, to test 9
compliance if the testing is under the direct supervision of that law 10
enforcement department and written parental consent is provided. 11
(2) The Department of Health and Human Services, pursuant to a written plan 12
prepared by the Secretary of Health and Human Services, to use persons under 13
21 years of age in annual, random, unannounced inspections, provided that 14
prior written parental consent is given for the involvement of these persons 15
and that the inspections are conducted for the sole purpose of preparing a 16
scientifically and methodologically v alid statistical study of the extent of 17
success the State has achieved in reducing the availability of tobacco products 18
to persons under the age of 21, and preparing any report to the extent required 19
by section 1926 of the federal Public Health Service Act (42 U .S.C. § 20
300x-26). 21
(3) A research program affiliated with an accredited community college, college, 22
or university located in this State to test compliance as part of a scientific 23
research study to further efforts in underage tobacco use prevention, provided 24
that prior written parental consent is given for persons under 18 years of age. 25
The scientific research study must be approved by an institutional review 26
board with jurisdiction to review the study and must comply with 45 C.F.R. § 27
46. The ALE Division and the Department of Hea lth and Human Services 28
shall be provided a copy of the study protocol 30 calendar days before it is 29
presented to the institutional review board and given an opportunity to provide 30
comments regarding the proposed research protocol to the research 31
investigators. The research investigators shall provide any comments received 32
from the ALE Division and the Department of Health and Human Services to 33
the institutional review board for review prior to the rendering of a decision 34
on the scientific research study app lication. A person shall not be guilty of a 35
violation of this Article when the act in question arises as part of a test of 36
compliance in a scientific research study pursuant to this subdivision. A 37
permittee shall not be in violation of this Article or subj ect to any 38
administrative penalty when the act in question arises as part of a test of 39
compliance in a scientific research study pursuant to this subdivision. 40
"§ 18D-504. Defense to underage sale. 41
It shall be a defense to a violation of G.S. 18D-500 if the seller does any of the following: 42
(1) Shows that the purchaser produced a drivers license, a special identification 43
card issued under G.S. 20-37.7 or issued by the state agency of any other state 44
authorized to issue similar official state special identification cards for that 45
state, a military identification card, or a passport, showing the person's age to 46
be at least the required age for purchase and bearing a physical description of 47
the person named on the card reasonably describing the purchaser. 48
(2) Produces evidence of other facts that reasonably indicated at the time of sale 49
that the purchaser was at least the required age. 50
General Assembly Of North Carolina Session 2025
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(3) Shows that at the time of purchase, the purchaser utilized a biometric 1
identification system that demonstrated (i) th e purchaser's age to be at least 2
the required age for the purchase and (ii) the purchaser had previously 3
registered with the seller or seller 's agent a drivers license, a special 4
identification card issued under G.S. 20-37.7 or issued by the state agency of 5
any other state authorized to issue similar official state special identification 6
cards for that state, a military identification card, or a passport showing the 7
purchaser's date of birth and bearing a physical description of the person 8
named on the document. 9
"§ 18D-505. Deferred prosecution or conditional discharge. 10
Notwithstanding G.S. 15A-1341(a1) or G.S. 15A-1341(a4), any person charged with a 11
misdemeanor under this Article shall be qualified for deferred prosecution or a conditional 12
discharge pursuant to Article 82 of Chapter 15A of the General Statutes provided the defendant 13
has not previously been placed on probation for a violation of this Article and so states under 14
oath. 15
"Article 6. 16
"Miscellaneous. 17
"§ 18D-600. Restitution. 18
When a person is convicted of a violation of the tobacco retail sales laws, the court may order 19
the person to make restitution to any law enforcement agency for reasonable expenditures made 20
in purchasing tobacco products from the person or the person 's agent as part of an investigation 21
leading to the person's conviction. 22
"§ 18D-601. Criminal penalty. 23
Unless a different punishment is otherwise expressly stated, any person who violates any 24
provisions of this Chapter shall be guilty of a Class 1 misdemeanor. In addition, the court may 25
impose the provisions of G.S. 18D-201, 18D-202, and 18D-600. 26
"Article 7. 27
"Certification and Directory of Vapor Products and Consumable Products. 28
"§ 18D-700. Certification and Directory of Vapor Products and Consumable Products. 29
(a) As required by Part 3 of Article 4 of Chapter 143B of the General Statutes, the 30
Secretary shall certify vapor products and consumable products eligible for retail sale in this State 31
and shall list them on a directory. 32
(b) The following penalties shall apply to violations of the certification requirements for 33
consumable products and vapor products required by Part 3 of Article 4 of Chapter 143B of the 34
General Statutes: 35
(1) Retailer, distributor, or wholesaler fines. – A retailer, distributor, or 36
wholesaler who offers for sale a consumable product or vapor product 37
intended for ultimate retail sale in this State that is not included in the directory 38
is subject to a warning with a mandatory reinspection of the retailer within 30 39
days of the violation of Part 3 of Article 4 of Chapter 143B of the General 40
Statutes. The following apply: 41
a. For a second violation of this type within a 12 -month period, the fine 42
shall be at least five hundred dollars ($500.00) but not more than seven 43
hundred fifty dollars ($750.00) and, if licensed, the licensee 's license 44
shall be suspended for 30 days. 45
b. For a third or su bsequent violation of this type within a 12 -month 46
period, the fine shall be at least one thousand dollars ($1,000) but not 47
more than one thousand five hundred dollars ($1,500) and, if licensed, 48
the licensee's license shall be revoked. 49
c. Upon a second or s ubsequent violation of this type, consumable 50
products or vapor products that are not on the directory as required by 51
General Assembly Of North Carolina Session 2025
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G.S. 143B-245.12, and are possessed by a retailer, distributor, or 1
wholesaler, shall be subject to seizure, forfeiture, and destruction. The 2
cost of such seizure, forfeiture, and destruction shall be borne by the 3
person from whom the products are confiscated, except that no 4
products may be seized from a consumer who has made a bona fide 5
purchase of such product. The Secretary may store and dispose of the 6
seized products as appropriate, in accordance with federal, State, and 7
local laws pertaining to storage and disposal of such products. 8
(2) Manufacturer penalties. – A manufacturer whose consumable products or 9
vapor products are not listed in the directory as required by G.S. 143B-245.12, 10
and who causes the products that are not listed to be sold for retail sale in 11
North Carolina, whether directly or through an importer, distributor, 12
wholesaler, retailer, or similar intermediary or intermediar ies, is subject to a 13
civil penalty of ten thousand dollars ($10,000) for each individual product 14
offered for sale in violation of Part 3 of Article 4 of Chapter 143B of the 15
General Statutes until the offending product is removed from the market or 16
until the offending product is properly listed on the directory. In addition, any 17
manufacturer that falsely represents any information required by a 18
certification form shall be guilty of a misdemeanor for each false 19
representation. 20
(c) In an action to enforce this section, the State shall be entitled to recover costs, 21
including the costs of investigation, expert witness fees, and reasonable attorneys' fees. 22
(d) A repeated violation of the requirements of Part 3 of Article 4 of Chapter 143B of the 23
General Statutes s hall constitute a deceptive trade practice under Chapter 75 of the General 24
Statutes." 25
26
PART II. CONFORMING CHANGES 27
SECTION 2.(a) G.S. 14-313 is repealed. 28
SECTION 2.(b) G.S. 7B-2508.1(2) reads as rewritten: 29
"(2) Criminal gang activity. – The commission of , attempted commission of, or 30
solicitation, coercion, or intimidation of another person to commit (i) any 31
offense under Article 5 of Chapter 90 of the General Statutes or (ii) any 32
offense under Chapter 14 of the General Statutes except Article 9, 22A, 40, 33
46, or 59 thereof, and further excepting G.S. 14-82, 14-145, 14-183, 14-184, 34
14-186, 14-190.9, 14-247, 14-248, or 14-313 or 14-248 thereof, and either of 35
the following conditions is met: 36
a. The offense is committed with the intent to benefit, promote, or further 37
the interests of a criminal gang or for the purposes of increasing a 38
person's own standing or position within a criminal gang. 39
b. The participants in the offense are identified as criminal gang members 40
acting individually or collectively to further any criminal purpose of a 41
criminal gang." 42
SECTION 2.(c) G.S. 14-50.16A(2) reads as rewritten: 43
"(2) Criminal gang activity. – The commission of, attempted commission of, or 44
solicitation, coercion, or intimidation of another person to commit (i) any 45
offense under Article 5 of Chapter 90 of the General Statutes or (ii) any 46
offense under Chapter 14 of the General Statutes except Article 9, 22A, 40, 47
46, or 59 thereof, and further excepting G.S. 14-82, 14-145, 14-183, 14-184, 48
14-186, 14-190.9, 14-247, 14-248, or 14-313 or 14-248 thereof, and either of 49
the following conditions is met: 50
General Assembly Of North Carolina Session 2025
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a. The offense is committed with the intent to benefit, promote, or further 1
the interests of a criminal gang or for the purposes of increasing a 2
person's own standing or position within a criminal gang. 3
b. The participants in the offense are identified as criminal gang members 4
acting individually or collectively to further any criminal purpose of a 5
criminal gang." 6
SECTION 2.(d) G.S. 15A-145 reads as rewritten: 7
"§ 15A-145. Expunction of records for first offenders under the age of 18 at the time of 8
conviction of misdemeanor; expunction of certain other misdemeanors. 9
(a) Whenever any person who has not previously been convicted of any felony, or 10
misdemeanor other than a traffic violation, under the laws of the United States, the laws of this 11
State or any other state, (i) pleads guilty to or is guilty of a misdemeanor other than a traffic 12
violation, and the offense was committed before the person attained the age of 18 years, o r (ii) 13
pleads guilty to or is guilty of a misdemeanor possession of alcohol pursuant to 14
G.S. 18B-302(b)(1), or the offense of the sale of a tobacco product to a person under the age of 15
21 years pursuant to G.S. 18D-500, and the offense was committed before the person attained 16
the age of 21 years, he the person may file a petition in the court of the county where he the 17
person was convicted for expunction of the misdemeanor from his the person's criminal record. 18
The petition cannot be filed earlier than: (i) two years after the date of the conviction, or (ii) the 19
completion of any period of probation, whichever occurs later, and the petition shall contain, but 20
not be limited to, the following: 21
(1) An affidavit by the petitioner that he the petitioner has been of good behavior 22
for the two -year period since the date of conviction of the misdemeanor in 23
question and has not been convicted of any felony, or misdemeanor other than 24
a traffic violation, under the laws of the United States or the laws of this State 25
or any other state. 26
(2) Verified affidavits of two persons who are not related to the petitioner or to 27
each other by blood or marriage, that they know the character and reputation 28
of the petitioner in the community in which he the petitioner lives and that his 29
the petitioner's character and reputation are good. 30
(3) A statement that the petition is a motion in the cause in the case wherein the 31
petitioner was convicted. 32
(4) Repealed by Session Laws 2010 -174, s. 2, effective October 1, 2010, and 33
applicable to petitions for expunctions filed on or after that date. 34
(4a) An application on a form approved by the Administrative Office of the Courts 35
requesting and authorizing a name -based State and national criminal record 36
check by the State Bureau of Investigation using any information required by 37
the Administrative Office of the Courts to identify the individual and a search 38
of the confidential record of expunctions maintained by the Administrative 39
Office of the Courts. The application shall be filed with the clerk o f superior 40
court. The clerk of superior court shall forward the application to the State 41
Bureau of Investigation and to the Administrative Office of the Courts, which 42
shall conduct the searches and report their findings to the court. 43
(5) An affidavit by th e petitioner that no restitution orders or civil judgments 44
representing amounts ordered for restitution entered against him the petitioner 45
are outstanding. 46
The petition shall be served upon the district attorney of the court wherein the case was tried 47
resulting in conviction. The district attorney shall have 10 days thereafter in which to file any 48
objection thereto and shall be duly notified as to the date of the hearing of the petition. 49
General Assembly Of North Carolina Session 2025
House Bill 425-First Edition Page 19
The judge to whom the petition is presented is authorized to call upon a probation officer for 1
any additional investigation or verification of the petitioner's conduct during the two-year period 2
that he the judge deems desirable. 3
… 4
(b) If the court, after hearing, finds that the petitioner had remained of good behavior and 5
been free of conviction of any felony or misdemeanor, other than a traffic violation, for two years 6
from the date of conviction of the misdemeanor in question, the petitioner has no outstanding 7
restitution orders or civil judgments representing amounts ordered for restitution entered against 8
him, and (i) petitioner was not 18 years old at the time of the offense in question, or (ii) petitioner 9
was not 21 years old at the time of the offense of possession of alcohol pursuant to 10
G.S. 18B-302(b)(1), or the offense of the sale of a tobacco product to a person under the age of 11
21 years pursuant to G.S. 18D-500, it shall order that such person the petitioner be restored, in 12
the contemplation of the law, to the status he the petitioner occupied before such arrest o r 13
indictment or information. 14
(b1) No person as to whom such order has been entered shall be held thereafter under any 15
provision of any laws to be guilty of perjury or otherwise giving a false statement by reason of 16
his the person's failure to recite or acknowledge such arrest, or indictment, information, or trial, 17
or response to any inquiry made of him the person for any purpose. This subsection shall not 18
apply to a sentencing hearing when the person has been convicted of a subsequen t criminal 19
offense. 20
…." 21
SECTION 2.(e) G.S. 15A-150(a)(6) reads as rewritten: 22
"(6) Persons granted a dismissal upon completion of a conditional discharge under 23
G.S. 14-50.29, 14-204, 14-277.8, 14-313(f), 15A-1341(a4), 18D-505, 90-96, 24
or 90-113.14." 25
SECTION 2.(f) G.S. 18B-203(a) reads as rewritten: 26
"§ 18B-203. Powers and duties of the Commission. 27
(a) Powers. – The Commission shall have authority to:to do all of the following: 28
(1) Administer the ABC laws;laws. 29
(2) Provide for enforcement of the ABC laws, in conjunction with the ALE 30
Division;Division. 31
(2a) Provide for the enforcement of the tobacco retail sales laws as set forth in 32
Chapter 18D of the General Statutes, in conjunction with the ALE Division. 33
(3) Set the prices of alcoholic beverages sold in local ABC stores as provided in 34
Article 8;8. 35
(4) Require reports and audits from local boards as provided in 36
G.S. 18B-205;G.S. 18B-205. 37
(5) Determine what brands of alcoholic beverages may be sold in this State;State. 38
(6) Contract for State ABC warehousing, as provided in 39
G.S. 18B-204;G.S. 18B-204. 40
(7) Dispose of damaged alcoholic beverages, as provided in 41
G.S. 18B-806;G.S. 18B-806. 42
(8) Remove for cause any member or employee of a local board;board. 43
(9) Supervise or disapprove purchasing by any local board and inspect all records 44
of purchases by local boards;boards. 45
(10) Approve or disapprove rules adopted by any local board;board. 46
(11) Approve or disapprove the opening and location of ABC stores, as prov ided 47
in Article 8;8. 48
(12) Issue ABC permits, and impose sanctions against permittees;permittees. 49
(12a) Issue tobacco retail sales permits and impose sanctions against permittees as 50
set forth in Chapter 18D of the General Statutes. 51
General Assembly Of North Carolina Session 2025
Page 20 House Bill 425-First Edition
(13) Provide for the testing of alcoholic beverages, as provided in 1
G.S. 18B-206;G.S. 18B-206. 2
(14) Fix the amount of bailment charges and bailment surcharges to be assessed on 3
liquor shipped from a Commission warehouse;warehouse. 4
(15) Collect bailment charges and bailment surcharges from local boards;boards. 5
(16) Notwithstanding any law to the contrary, enter into contracts for design and 6
construction of a warehouse or warehouses and supervise work and materials 7
used in the construction, as provided in G.S. 18B-204;G.S. 18B-204. 8
… 9
(18) Provide for the distribution and posting of warning signs to local ABC boards 10
regarding the dangers of alcohol consumption during pregnancy as required 11
under G.S. 18B-808;G.S. 18B-808. 12
…." 13
SECTION 2.(g) G.S. 18B-500 reads as rewritten: 14
"§ 18B-500. Alcohol law-enforcement agents. 15
… 16
(b) Subject Matter Jurisdiction. – After taking the oath prescribed for a peace officer, an 17
alcohol law-enforcement agent shall have authority to arrest and take other investigatory and 18
enforcement actions for any criminal offense: 19
… 20
(2) Encountered or otherwise discovered while investigating or enforcing matters 21
for the North Carolina Alcoholic Beverage Control Commission or the North 22
Carolina Education Lottery Commission or encountered or otherwise 23
discovered while investigating or enforcing the provisions of this Chapter, 24
Chapter 18C of the General Statutes, G.S. 14-313, Chapter 18D of the General 25
Statutes, or Parts 1 and 2 of Article 37 of Chapter 14 of the General Statutes. 26
(3) Encountered or otherwise discovered while carrying out any duty or function 27
assigned to the Division by law. 28
(4) Occurring in an agent's presence. 29
(5) When assisting another law enforcement agency. 30
… 31
(b2) Primary Responsibilities. – The primary responsibilities of an alcoho l 32
law-enforcement agent are the enforcement of this Chapter, Chapter 18C of the General Statutes, 33
G.S. 14-313, Chapter 18D of the General Statutes, and Parts 1 and 2 of Article 37 of Chapter 14 34
of the General Statutes. 35
…." 36
SECTION 2.(h) Article 9 of Chapter 18B of the General Statutes is amended by 37
adding a new section to read: 38
"§ 18B-908. ABC permits and tobacco retail sales permits. 39
(a) Applications for permits under this Chapter may be filed simultaneously or in 40
conjunction with applications for tobacco retail sales permits under Chapter 18D of the General 41
Statutes and may be combined by the Commission in a single application. 42
(b) The Commission may use, rely upon, or incorporate by reference any information an 43
applicant for a permit under this Chapter has submitted in conjunction with a tobacco retail sales 44
permit issued pursuant to Chapter 18D of the General Statutes." 45
SECTION 2.(i) G.S. 75D-3(c)(1)b. reads as rewritten: 46
"b. Chapter 14 of the General Statutes of North Carolina except 47
Articles 9, 22A, 38, 40, 43, 46, 47, 59 thereof; and further 48
excepting G.S. Sections 14 -78.1, 14 -82, 14 -86, 14 -145, 49
14-146, 14 -147, 14 -177, 14 -178, 14 -179, 14 -183, 14 -184, 50
General Assembly Of North Carolina Session 2025
House Bill 425-First Edition Page 21
14-186, 14 -190.9, 14 -195, 14 -197, 14 -201, 14 -202, 14 -247, 1
14-248, 14-313 and 14-248 thereof." 2
SECTION 2.(j) G.S. 105-113.4F(b)(2) reads as rewritten: 3
"(2) Comply with the age verification requirements in 4
G.S. 14-313(b2).G.S. 18D-400(e)." 5
SECTION 2.(k) G.S. 143B-245.10 reads as rewritten: 6
"Part 3. Certification and Directory of Vapor Products and Consumable Products. 7
"§ 143B-245.10. Definitions. 8
The following definitions apply throughout this Part: 9
(1) Alternative nicotine product. – As defined in 10
G.S. 14-313(a)(1).G.S. 18D-100. 11
(2) Consumable product. – As defined in G.S. 14-313(a)(1a).G.S. 18D-100. 12
(3) Distribute. – As defined in G.S. 14-313(a)(1b).G.S. 18D-100. 13
(4) FDA. – As defined in G.S. 14-313(a)(1c).The United States Food and Drug 14
Administration. 15
(5) Secretary. – The Secretary of the Department of Revenue. 16
(6) Timely Filed Premarket Tobacco Product Application. – As defined in 17
G.S. 14-313(a)(3c).An application pursuant to 21 U.S.C. § 387j for a vapor 18
product or consumable product containing nicotine derived from tobacco 19
marketed in the United States as of August 8, 2016, that was submitted to the 20
United States Food and Drug Administration on or before September 9, 2020, 21
and accepted for filing. 22
(7) Tobacco product. – As defined in G.S. 14-313(a)(4).G.S. 18D-100. 23
(8) Vapor product. – As defined in G.S. 14-313(a)(5).G.S. 18D-100." 24
SECTION 2.(l) G.S. 143B-245.11(a)(2) reads as rewritten: 25
"(2) The manufacturer submitted a Timely Filed Premarket Tobacco Product 26
Application as defined in G.S. 14-313(a)(3c) G.S. 143B-245.10 for the vapor 27
product or consumable product; and the application either remains under 28
review by the FDA or has received a denial order that has been and remains 29
stayed by the FDA or court order, rescinded by the FDA, or vacated by a 30
court." 31
SECTION 2.(m) G.S. 143B-245.14(a)(1) reads as rewritten: 32
"(1) A manufacturer not registered to do business in the State shall, as a condition 33
precedent to having its name or its products listed and retained in the directory, 34
appoint and continually engage without interruption a registered agent in this 35
State for service of process on whom all process and any action or proceeding 36
arising out of the enforcement of this Part or G.S. 14-313(g) and (h ) 37
G.S. 18D-700(a) and (b) may be served. The manufacturer shall provide to the 38
Secretary the name, address, and telephone number of its agent for service of 39
process and shall provide any other information relating to its agent as may be 40
requested by the Secretary." 41
SECTION 2.(n) G.S. 143B-245.16 reads as rewritten: 42
"§ 143B-245.16. Rules; use of fees; report. 43
… 44
(b) Use of Fees and Penalties. – The fees received under this Part and the penalties 45
collected under G.S. 14-313(h) G.S. 18D-700(b) by the Department of Revenue shall be used by 46
the Department of Revenue exclusively for processing the certifications, operating and 47
maintaining the directory, and enforcement of this Part. 48
(c) Report. – Beginning on January 31, 2026, and annually thereafter, the Secretary shall 49
provide a report to the legislature regarding the status of the directory, manufacturers and 50
products included in the directory, revenue and expenditures related to administration of this 51
General Assembly Of North Carolina Session 2025
Page 22 House Bill 425-First Edition
section, Part, and enforcement activities undertaken pursuant to this section, Part, including the 1
number of stores that have been inspected and the results from such inspections." 2
3
PART III. MISCELLANEOUS 4
SECTION 3.(a) Prosecutions for offenses committed before the effective date of 5
this act are not abated or affected by this act, and the statutes that would be applicable but for 6
this act remain applicable to those prosecutions. 7
SECTION 3.(b) Effective March 1, 2026, the ABC Commission may issue tobacco 8
retail sales permits as authorized by Section 1 of this act effective for the period of May 1, 2026, 9
through April 30, 2027. 10
SECTION 3.(c) G.S. 18D-100, 18D-101, 18D-104, 18D-300 through 18D-302, and 11
18D-304 through 18 D-307, as enacted by Section 1 of this act, are effective when this act 12
becomes law and apply to permits effective on or after May 1, 2026. The remainder of Sections 13
1 through 3 of this act becomes effective May 1, 2026, and applies to offenses committed o n or 14
after that date. The remainder of this act is effective when it becomes law. 15