SB 582 — North Carolina Farm Act of 2023.

audit.

… (b) Tobacco Poundage Assessments.

In the event two-thirds or more of the eligible farmers and producers participating in the tobacco referendum vote in favor of the tobacco poundage assessment authorized under this Article, then said assessment shall be collected for a period of six years under rules, regulations, and methods adopted by the North Carolina Tobacco Research Commission.

The North Carolina Tobacco Research Commission is exempt from the provisions of Chapter 150B of the General Statutes.

The assessments collected shall be remitted to the Department of Agriculture and Consumer Services to be expended under the direction of the Tobacco Research Commission for research and dissemination of research facts concerning tobacco.

Any person that receives assessment funds from the Tobacco Research Commission shall file quarterly written reports with the Tobacco Research Commission on thereceipt andexpenditureofassessmentfunds.TheTobacco Research Commission may transfer assessments to the North Carolina Tobacco Agricultural Foundation, Inc., to be held and invested bythe Tobacco Agricultural Foundation until such time as the Commission shall direct their expenditure for the purposes set forth in this section." SECTION 1.2.(e) G.S.

106-568.10 reads as rewritten:

"§ 106-568.10.

Subsequent referenda;

continuation of assessment.

If the assessment is defeated in the referendum, the governing boards of the North Carolina Farm Bureau Federation, the North Carolina State Grange, and the North Carolina Agricultural Foundation, Inc., shall have full power and authority to call another referendum for the purposes herein set out in the next succeeding year on the question of the annual assessment for six years.

In the event the assessment carried in a referendum by two-thirds or more of the eligible farmers participating therein, such assessment shall be levied annually for the six years set forth in the call for such referendum and a new referendum may be called and conducted during the sixth year of such period on the question of whether or not such assessment shall be continued for the next ensuing six years.

Provided, that if the tobacco poundage assessment is defeated in the referendum, the governing boards of the North Carolina Farm Bureau Federation, Inc., the North Carolina State Grange, the North Carolina Tobacco Agricultural Foundation, Inc., and Tobacco Growers Association of North Carolina, Incorporated, may call another referendum in the next succeeding year on the question of the annual assessment for six years.

If the tobacco assessment carried in a referendum by two-thirds or more of the eligible farmers participating therein, the assessment shall be levied annually for the six years set forth in the call for the referendum and anewreferendum maybe called andconductedduringthesixth yearoftheperiodon thequestion of whether or not the assessment shall be continued for the next ensuing six years." ADD EQUINE INDUSTRY MEMBER TO THE BOARD OF AGRICULTURE SECTION 1.3.

G.S.

106-2 reads as rewritten:

"§ 106-2.

Department of Agriculture and Consumer Services established;

Board of Agriculture, membership, terms of office, etc.

… Senate Bill 582-Second Edition Page 3 General Assembly Of North Carolina Session 2023 (b) Membership;

Qualifications.

– The Board of Agriculture shall consist of the Commissioner of Agriculture, who shall be an ex officio member and chairman thereof and shall preside at all meetings, and of 11 other members from the State, so distributed as to reasonably represent the different sections and agriculture of the State.

The Commissioner of Agriculture and the members of the Board of Agriculture shall be practicing farmers engaged in their profession.

The members of the Board shall be appointed by the Governor by and with the consent of the Senate.

In the appointment of the members of the Board the Governor shall also take into consideration the different agricultural interests of the State, and shall appoint members with the following qualifications:

(1) Onemember whoshall beapracticingtobaccofarmerto represent thetobacco farming interest.

(2) One member who shall be a practicing cotton grower to represent the cotton interest.

(3) One member who shall be a practicing fruit or vegetable farmer to represent the fruit and vegetable farming interest.

(4) One member who shall be a practicing dairy farmer to represent the dairy and cattle interest of the State.

(5) One member who shall be a practicing poultryman to represent the poultry interest of the State.

(6) One member who shall be a practicing peanut grower to represent the peanut interests of the State.

(7) One member who shall be experienced in marketing to represent the marketing of products of the State.

(8) One member who shall be actively involved in forestry to represent the forestry interests of the State.

(9) One member who shall be actively involved in the nursery business to represent the nursery industry of the State.

(10) One member who shall be a practicing general farmer to represent the general farming interest.

(11) One member who shall be a practicing pork farmer to represent the swine interest of the State.

(12) Onememberwhoshall beactivelyinvolvedin the equineindustryto represent the equine industry of the State.

(c) Terms.

– The term of office of members of the Board shall be six years and until their successors are duly appointed and qualified.

(d) Vacancies.

– Vacancies in the Board shall be filled by the Governor for the unexpired term." EXEMPT COMPOST FROM SALES TAX FOR QUALIFYING FARMERS SECTION 1.4.

G.S.

105-164.13E(a) reads as rewritten:

"§ 105-164.13E.

Exemption for farmers.

(a) Exemption.

–Aqualifyingfarmeris apersonwho has an annual incomefrom farming operations for the preceding taxable year of ten thousand dollars ($10,000) or more or who has an average annual income from farming operations for the three preceding taxable years of ten thousand dollars ($10,000) or more.

For purposes of this section, the term "income from farming operations" means sales plus any other amounts treated as gross income under the Code from farming operations.

A qualifying farmer includes a dairy operator, a poultry farmer, an egg producer, and a livestock farmer, a farmer of crops, a farmer of an aquatic species, as defined in G.S.

106-758, and a person who boards horses.

A qualifying farmer may apply to the Secretary for an exemption certificate number under G.S.

105-164.28A.

The exemption certificate expires Page 4 Senate Bill 582-Second Edition General Assembly Of North Carolina Session 2023 when a person fails to meet the income threshold for three consecutive taxable years or ceases to engage in farming operations, whichever comes first.

Except as otherwise provided in this section, the items exempt under this section must be purchased by a qualifying farmer or conditional farmer and used by the qualifying or conditional farmer primarily in farming operations.

For purposes of this section, an item is used by a farmer for farming operations if it is used for the planting, cultivating, harvesting, or curing of farm crops, in the production of dairy products, eggs, or animals, or by a person who boards horses.

The items that may be exempt from sales and use tax under this section are:

(1) Fuel, piped natural gas, and electricity that are measured by a separate meter or another separate device and used for a purpose other than preparing food, heating dwellings, and other household purposes.

(2) Commercial fertilizer, lime, land plaster, plastic mulch, plant bed covers, potting soil, baler twine, compost, and seeds.

…." AGRITOURISM ADVERTISING SECTION 2.

G.S.

– No unauthorized person shall erect or maintain upon any highway any warning or direction sign, marker, signal or light or imitation of any official sign, *S582-v-1* General Assembly Of North Carolina Session 2023 marker,signal orlight erectedundertheprovisions ofG.S.

No person shall erect or maintain upon anyhighwayanytraffic or highwaysignhighway sign or signal bearing thereon any commercial or political advertising, except as provided in subsections (b) through (e) of this section:

163-227.2 and ending on the 1010h day after the primary or election day, persons may place political signs in the right-of-way of the State highway system as provided in this section.

Senate Bill 582-Second Edition Page 5 General Assembly Of North Carolina Session 2023 (2) Farmsign.–Asignthatadvertisesafarm,products grown,raised,orproduced on a farm, or services provided on a farm;

Page 2 Senate Bill 582-First Edition General Assembly Of North Carolina Session 2023 (f) Application Within Municipalities.

In the absence of an ordinance prohibiting or regulating the placement of political signs on the rights-of-way of streets located within a municipality and maintained by the municipality, the provisions of subsections (b) through (e) of this section shall apply." AMENDCLARIFY REQUIREMENTSDEFINITION ONOF AGRITOURISMPROPERTY-HAULING WARNINGVEHICLES SIGNS SECTION 2.1.(a)3. G.S.

99E-3 reads as rewritten:

"§ 99E-3.

Warning required.

(a) Every equine professional and every equine activity sponsor shall post and maintain signs which contain the warning notice specified in subsection (b) of this section.

The signs required by this section shall be placed in a clearly visible location on or near stables, corrals, or arenas where the equine professional or the equine activity sponsor conducts equine activities.

Thewarningnoticespecifiedinsubsection(b)ofthissectionshallbedesignedbytheDepartment of Agriculture and Consumer Services and shall consist of a sign in black letters, with each letter to be a minimum of three quarters of one inch in height.

Every written contract entered into by an equine professional or byan equine activitysponsor for the providing of professional services, instruction, or the rental of equipment or tack or an equine to a participant, whether or not the contract involves equine activities on or off the location or site of the equine professional's or the equine activity sponsor's business, shall contain in clearly readable print the warning notice specified in subsection (b) of this section.

(b) The signs and contracts described in subsection (a) of this section shall contain the following warning notice:

"WARNING Page 6 Senate Bill 582-Second Edition General Assembly Of North Carolina Session 2023 Under North Carolina law, an equine activity sponsor or equine professional is not liable for an injury to or the death of a participant in equine activities resulting exclusively from the inherent risks of equine activities.

Chapter 99E of the North Carolina General Statutes." (c) Failure to comply with the requirements concerning warning signs and notices provided in this Part shall prevent an equine activity sponsor or equine professional from invoking the privileges of immunity provided by this Part." SECTION 2.1.(b) G.S.

99E-8 reads as rewritten:

"§ 99E-8.

Warning required.

(a) Everyfarm animal activity sponsor and every farm animal professional shall post and maintain signs which contain thewarningnotices specifiedin subsection(b) or(c)of this section.

The signs required by this section shall be placed in a clearly visible location on or near stables, corrals, arenas, or other farm animal facilities where the farm animal professional or the farm animal activity sponsor conducts animal activities.

The warning notices specified in subsections (b) and (c) of this section shall be designed by the Department of Agriculture and Consumer Services and shall consist of a sign in black letters, with each letter to be a minimum of three quarters of one inch in height.

Every written contract entered into by a farm animal professional or by a farm animal activitysponsor for the providing of professional services, instruction, or the rental of equipment or tack or a farm animal to a participant, whether or not the contract involves farm animal activities on or off the location or site of the farm animal professional's or farm animal activity sponsor's business, shall contain in clearly readable print the warning notice specified in subsection (b) or (c) of this section.

(b) The signs and contracts described in subsection (a) of this section shall contain the following warning notice:

"WARNING Under North Carolina law, a farm animal activity sponsor or farm animal professional is not liable for an injury to or the death of a participant in farm animal activities resulting exclusively from the inherent risks of farm animal activities.

Chapter 99E of the North Carolina General Statutes." (c) If a farm animal activity sponsor or farm animal professional sponsors or engages in farm animal activities only involving equines, the signs and contracts described in subsection (a) of this section may contain the following warning notice:

"WARNING Under North Carolina law, an equine activity sponsor or equine professional is not liable for an injury to or the death of a participant in equine activities resulting exclusively from the inherent risks of equine activities.

Chapter 99E of the North Carolina General Statutes." (d) Failure to comply with the requirements concerning warning signs and notices provided in this Part shall prevent a farm animal activity sponsor or farm animal professional from invoking the privileges of immunity provided by this Part." SECTION 2.1.(c) G.S.

99E-32 reads as rewritten:

"§ 99E-32.

Warning required.

(a) Every agritourism professional must post and maintain signs that contain the warning notice specified in subsection (b) of this section.

The sign must be placed in a clearly visible location at the entrance to the agritourism location and at the site of the agritourism activity.

The warning notice must consist of a sign in black letters, with each letter to be a minimum of three quarters of one inch in height.

Every written contract entered into by an agritourism professional for the providing of professional services, instruction, or the rental of equipment to a participant, whether or not the contract involves agritourism activities on or off the location or at the site of the agritourism activity, must contain in clearly readable print the warning notice specified in subsection (b) of this section.

(b) The signs and contracts described in subsection (a) of this section must contain the following notice of warning:

Senate Bill 582-Second Edition Page 7 General Assembly Of North Carolina Session 2023 "WARNING Under North Carolina law, there is no liability for an injury to or death of a participant in an agritourism activityconducted at this agritourism location if such injuryor death results from the inherent risks of the agritourism activity.

Inherent risks of agritourism activities include, among others, risks of injury inherent to land, equipment, and animals, as well as the potential for you to act in a negligent manner that may contribute to your injury or death.

You are assuming the risk of participating in this agritourism activity." (c) Failure to comply with the requirements concerning warning signs and notices provided in this subsection will prevent an agritourism professional from invoking the privileges of immunity provided by this Article." SECTION 2.1.(d) This section is effective when it becomes law and applies to actions arising from events occurring on or after that date.

CLARIFY DEFINITION OF PROPERTY-HAULING VEHICLES SECTION 3.

CREATEREQUIRE CLASSPUBLIC 3SCHOOLS MISDEMEANORTO FORMAKE LEAVINGONE THEHUNDRED SCENEPERCENT OFMUSCADINE ANGRAPE ANIMALJUICE WASTEAVAILABLE SPILLTO STUDENTS SECTION 4.1.(a)5.(a) G.S.

14-399(i)(4) reads as rewritten:

"(4) "Litter" means any garbage, rubbish, trash, refuse, can, bottle, box, container, wrapper, paper, paper product, tire, appliance, mechanical equipment or part, building or construction material, tool, machinery, wood, motor vehicle or motorvehiclepart,vessel,aircraft,farmmachineryorequipment, sludge from awastetreatmentfacility,watersupplytreatmentplant,orairpollutioncontrol facility, animal waste as defined in G.S.

143-215.10B, dead animal, animal or animal parts, animal by-products, or discarded material in any form resulting from domestic, industrial, commercial, mining, agricultural, or governmental Page 8 Senate Bill 582-Second Edition General Assembly Of North Carolina Session 2023 operations.

While being used for or distributed in accordance with their intended uses, "litter" does not include political pamphlets, handbills, religious tracts, newspapers, and other similar printed materials the unsolicited distribution of which is protected bythe Constitution of the United States or the Constitution of North Carolina." SECTION 4.1.(b) Article 52 of Chapter 14 of the General Statutes is amended by adding a new section to read:

"§ 14-399.3.

Duty to stop in event of certain spills from vehicles.

Thedriverofanyvehiclewhoknowsorreasonablyshouldknowthatanimalwaste,asdefined in G.S.

143-215.10B, dead animals or animal parts, or animal by-products have been blown, scattered, spilled, thrown, or placed from the vehicle shall immediately stop his or her vehicle at the scene of the incident.

The driver shall remain with the vehicle at the scene of the incident until alawenforcement officercompletes theinvestigationoftheincident orauthorizes thedriver to leave and the vehicle to be removed, unless remaining at the scene places the driver or others at significant risk of injury.

Prior to the completion of the investigation of the incident by a law enforcement officer, or the consent of the officer to leave, the driver may not facilitate, allow, or agree to the removal of the vehicle from the scene for anypurpose other than to call for a law enforcement officer;

to call for assistance in removing the materials that were blown, scattered, thrown, spilled, or placed from the vehicle;

or to remove oneself or others from significant risk of injury.

If the driver does leave for a reason permitted by this section, then the driver must return with the vehicle to the scene of the incident within a reasonable period of time, unless otherwise instructed by a law enforcement officer.

A willful violation of this section shall be punished as a Class 3 misdemeanor, and the court mayorder restitution for the cost of removing the materials that were blown, scattered, thrown, spilled, or placed from the vehicle." SECTION 4.1.(c) This section becomes effective December 1, 2023, and applies to offenses committed on or after that date.

ENCOURAGE PUBLIC SCHOOLS TO MAKE ONE HUNDRED PERCENT MUSCADINE GRAPE JUICE AVAILABLE TO STUDENTS SECTION 5.(a) G.S.

"(49) GoalDuty To Make Available Muscadine Grape Juice In Certain Schools.

– The State Board of Education shall strive to ensure that one hundred percent (100%) muscadine grape juice is made available to students in every school operated under Article 9C of this Chapter as a part of the school's nutrition program or through the operation of the school's vending facilities." SECTION 5.(b) Part 2 of Article 17 of Chapter 115C of the General Statutes is amended by adding a new section to read:

Senate Bill 582-First Edition Page 3 General Assembly Of North Carolina Session 2023 Local boards of education shall strive to ensure that one hundred percent (100%) muscadine grape juice is made available to students in everyeveryschool school in the local school administrative unit as a part of the school's nutrition program or through the operation of the school's vending facilities." SECTION 5.(c) G.S.

– A charter school shall strive to ensure that one hundred percent (100%) muscadine grape juice is made available to students as a part of the school's nutrition program or through the operation of the school's vending facilities." SECTION 5.(d) G.S.

– A regional school shall strive to ensure that one hundred percent (100%) muscadine grape juice is made available to students Senate Bill 582-Second Edition Page 9 General Assembly Of North Carolina Session 2023 as a part of the school's nutrition program or through the operation of the school's vending facilities." SECTION 5.(e) G.S.

– The laboratory school shall strive to ensure that one hundred percent (100%) muscadine grape juice is made available to students as a part of the school's nutrition program or through the operation of the school's vending facilities.

… (15) To strive to make available one hundred percent (100%) muscadine grape juiceasjuice abeverageas optionina beverage option in the operationoftheoperation communitycollege'sof the community college's vending facilities." SECTION5.(g) Part5ofArticle1ofChapter116oftheGeneral Statutesis amended by adding a new section to read:

Each constituent institution shall strive to make one hundred percent (100%) muscadine grape juice available as a beverage option in the operation of the institution's vending facilities." SECTION 5.(h) This section is effective when it becomes law.

Page 4 Senate Bill 582-First Edition General Assembly Of North Carolina Session 2023 SECTION 6.(c) The Department shall support, promote, encourage, and facilitate the establishment of trail segments on State park lands and on lands of other federal, State, local, and private landowners.

provided, however, that the State may receive donations of appropriate land and may purchase other needed lands for the Equine State Trail with existing funds in the Land and Water Fund, the Parks and Recreation Trust Fund, the Page 10 Senate Bill 582-Second Edition General Assembly Of North Carolina Session 2023 Complete the Trails Fund, the federal Land and Water Conservation Fund, and other available sources of funding.

4 RENAME THE OFFICIAL STATE FRUIT TO THE MUSCADINE GRAPE SECTION 7.(a) The General Assembly makes the following findings:

The pine is hereby adopted as the official State tree of the State of North Carolina.Carolina, and thelongleafpine(Pinus palustris)is designated as theemblem representingrepresentingthetrees thetrees ofNorth Carolina." PRESCRIBED BURNING ACT AMENDMENTS SECTION 9.(a) G.S.

Senate Bill 582-First Edition Page 5 General Assembly Of North Carolina Session 2023 (3) "Prescription" means a written plan establishing the conditions and methods for conducting a prescribed burn prepared by a certified prescribed burner for starting, controlling, and extinguishing a prescribed burning." SECTION 9.(b) G.S.

106-968 shall not be liable in any civil action for any damage or injury Senate Bill 582-Second Edition Page 11 General Assembly Of North Carolina Session 2023 caused by fire, including reignition of a smoldering, previously contained burn, or resulting from smoke.

(c) Notwithstanding subsections (a) and (b), this section does not apply when a nuisance or damage results from a negligently or improperly conducted prescribed burning.gross negligence.negligence." SECTION 9.(c) G.S.

(d) Notwithstanding subsections (a), (b) and (c), this section shall not apply to claims by public utilities resulting from damage to their equipment or facilities, where a prescribed burn proximately causes such damage.

(e) For purposes of this section, the term "public utility" means an electric power supplier, as defined in 62-133.8(a)(3), a gas operator, as defined in 62-50(g), or a business providing telecommunications service taxed under G.S.

105-164.4(a)(4c)." SECTION 9.(c) G.S.

Page 6 Senate Bill 582-First Edition General Assembly Of North Carolina Session 2023 (9) Provision for reasonable notice of the prescribed burning to be provided to nearby homes and businesses located adjacent to the burn site to avoid effects on health and property.

(b) The prescribed burning shall be conducted by a certified prescribed burner in accordancewithaprescriptionthatsatisfiessubsection(a)ofthissection.Thecertifiedprescribed Page 12 Senate Bill 582-Second Edition General Assembly Of North Carolina Session 2023 burner shall be present on the site and shall be in charge of the burning throughout the period of the burning.

Senate Bill 582-First Edition Page 7 General Assembly Of North Carolina Session 2023 (2) A person who uses an unmanned aircraft system in violation of subsection (a) of this section and such use is the proximate cause of serious bodily injury to another person is guilty of a Class E felony and shall also be fined not less than one thousand dollars ($1,000).

Senate Bill 582-Second Edition Page 13 General Assembly Of North Carolina Session 2023 (3) A person who uses an unmanned aircraft system in violation of subsection (a) of this section and such use is the proximate cause of serious physical or mental injury to another person is guilty of a Class F felony and shall also be fined not less than one thousand dollars ($1,000).

(3) Serious physical ormental injury.– Physical ormentalormentalinjurythat injurythat causes great pain and suffering." SECTION 10.(b) This section becomes effective December 1, 2023, and applies to offenses committed on or after that date.

Page 8 Senate Bill 582-First Edition General Assembly Of North Carolina Session 2023 (a) Offense.

Page 14 Senate Bill 582-Second Edition General Assembly Of North Carolina Session 2023 (1) Knowingly and willfully cuts down, injures, or removes any timber owned by another person, without the consent of the owner of the land or the owner of the timber, or without a lawful easement running with the land.

– An owner of timber who does not receive payment in full within thetimeperiodset in subdivision(2)ofsubsection(a)ofthissubdivision(2)ofsubsection (a)ofthis section maynotifythetimber buyer in writing of the owner's demand for payment at the timber buyer's last known address by Senate Bill 582-First Edition Page 9 General Assembly Of North Carolina Session 2023 certified mail or by personal delivery.

The timber buyer's failure to make payment in full within 10 days after the mailing or personal delivery authorized under this subsection shall constitute Senate Bill 582-Second Edition Page 15 General Assembly Of North Carolina Session 2023 prima facie evidence of the timber buyer's intent to commit an offense under subdivision (2) of subsection (a) of this section.

Additionally, a defendant convicted of an offense under subsection(a)ofthissectionshallbeorderedtomakerestitutiontothesubsection(a)ofthissectionshallbeorderedtomakerestitutiontothetimberownerin timberownerin anamount equal to either of the following:

Page 10 Senate Bill 582-First Edition General Assembly Of North Carolina Session 2023 d.

Page 16 Senate Bill 582-Second Edition General Assembly Of North Carolina Session 2023 f.

Wetlands do not include prior converted cropland as defined in the National Food Security Act Manual, Fifth Edition, which is hereby incorporated by reference, not including subsequent amendments and editions.

WASTEWATER AMENDMENTS Senate Bill 582-Second582-First Edition Page 1711 General Assembly Of North Carolina Session 2023 SECTION 16.(a) Definitions.

Page 1812 Senate Bill 582-Second582-First Edition General Assembly Of North Carolina Session 2023 If the Department designates a wastewater dispersal system as an Accepted wastewater system pursuant to this section, the following shall apply:

SECTION18.(b) Except as otherwise provided,provided,this this act is effective whenitwhen it becomes law.

Senate Bill 582-Second582-First Edition Page 1913