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HB 543

2023 Youth End Nicotine Dependence Act.

2023-2024 Session Introduced by Kristin Baker and 26 co-sponsors

Establishes the Tobacco Use Prevention Fund with $17M/year from the Settlement Reserve Fund to fund evidence-based youth tobacco/e-cigarette prevention and related programs in NC.

Passed 1st Reading
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Bill Summary · HB 543

HB 543 — "Youth End Nicotine Dependence Act" (Youth END Act) — Summary

Bill (short title): Youth End Nicotine Dependence Act (Youth END Act)
Jurisdiction: North Carolina General Assembly (Session 2023)
Primary sponsor: Rep. Grier Martin Cervania (and co-sponsors)
Effective date (as drafted): July 1, 2023

Purpose / Intent

Responding to large increases in youth use of electronic cigarettes and other tobacco products, the bill creates a dedicated, ongoing funding stream and program structure to prevent tobacco and e‑cigarette initiation and dependence among youth and people of childbearing age. The legislature finds that targeted, evidence‑based prevention investments will reduce future tobacco‑related illness and costs.

Key provisions

  • Establishes the Tobacco Use Prevention Fund (an interest‑bearing special fund) in the Department of Health and Human Services (DHHS), Division of Public Health, Chronic Disease and Injury Section (G.S. 14‑313.5).
  • Funding source: the Fund shall consist of amounts appropriated from the State’s Settlement Reserve Fund under G.S. 143C‑9‑3(a1). The bill calls for a recurring appropriation of $17,000,000 per year to the Tobacco Use Prevention Fund (and separately appropriates $17,500,000 to The Golden L.E.A.F., Inc., under that same statutory provision).
  • Permitted uses (funds may only be used for these purposes and for limited administration):
    • Build regional infrastructure through local health departments to deliver CDC evidence‑based tobacco prevention and cessation interventions (including e‑cigarette interventions) and to train youth leaders, schools, and local agencies.
    • Evidence‑based media and public education campaigns on health risks of tobacco and e‑cigarettes.
    • Tobacco‑use prevention and cessation policy/systems/environmental changes to increase military readiness among active service members in NC (including the NC National Guard and reserve components).
    • Grants to community colleges to support healthy, tobacco‑free campuses.
    • Surveillance/tracking of tobacco and e‑cigarette use and exposure among youth and high‑risk populations.
    • Technical assistance and oversight of regional prevention programs.
    • Independent evaluation of program reach and effectiveness.
  • Administrative cap: DHHS may use up to 10% of each year’s appropriation for administration; DHHS will develop Fund administration guidelines consistent with the statute.
  • Carryforward: Fund balances at fiscal year end carry forward for the Fund’s purposes.
  • Reporting: Annual report due March 1 to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division detailing prior‑year expenditures (recipients, purposes, statutory authority).
  • Limitations/exclusions: Moneys in the Fund are prohibited from being expended for purposes other than the allowed programmatic and administrative activities above.

Who is affected

  • Primary beneficiaries: youth and people of childbearing age (target populations for prevention), local health departments, schools, community colleges, the military population in NC, and organizations delivering tobacco‑prevention interventions.
  • Fiscal impacts affect the Settlement Reserve Fund allocation and statewide budgeting (the bill directs specified transfers from that Fund rather than General Fund tax increases).
  • DHHS is the administering agency and must manage grants, oversight, and reporting.

Fiscal and policy impacts (anticipated)

  • Direct appropriation: $17.0 million annually from the Settlement Reserve Fund to the Tobacco Use Prevention Fund (plus $17.5M to Golden L.E.A.F. under the same statute language). The bill does not present a net General Fund appropriation but reallocates Settlement Reserve Fund receipts; carryforward language preserves unspent balances.
  • Expected outcomes: increased prevention programming, expanded local capacity, media campaigns, improved surveillance and program evaluation; potential long‑term reductions in tobacco‑related healthcare costs and youth nicotine dependence.
  • The bill does not provide an independent cost‑benefit or long‑term savings estimate; actual program impact depends on implementation, uptake, and sustained funding.

Implementation / timeline

  • Fund established immediately in statute; effective date as written: July 1, 2023.
  • Annual appropriation timing follows the Settlement Reserve Fund appropriations mechanism (G.S. 143C‑9‑3(a1)).
  • DHHS to develop administrative guidelines and begin grant/program operations consistent with statutory authority and appropriations; annual reporting begins the March 1 following first fiscal year of expenditures.

Additional notes

  • The bill expressly targets new and emerging tobacco products (including e‑cigarettes) and emphasizes evidence‑based interventions and independent program evaluation.
  • Program success will depend on appropriations actually being transferred each year and on grant administration capacity at the state and regional/local levels.

Compiled from official sources — confirm details with the bill’s official record.

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