Bill would fund trafficking reports and tax certain in-store sales

The North Carolina Human Trafficking Commission would hire a vendor to build and run a trafficking reporting system. The system would serve the public and professionals. Mandated reporters are people already required by law to report suspected abuse, exploitation, or trafficking of a minor or vulnerable person. Mandated reporters could use the system as their main reporting channel, but could still use the National Human Trafficking Hotline or other channels. The Commission could use available federal, State, local, or private funds for this work. This section would take effect July 1, 2026. The first quarterly report would be due by March 1, 2027.

The system would sort and route reports, alert officials about high-priority tips, and let authorized staff respond through secure dashboards. Reports would go to the appropriate law enforcement, child protection, or vetted service provider based on location and priority. Reporters could communicate with investigators or survivors with consent. Except when another law requires it, the system could not share a reporter’s personal data with agencies without the reporter’s consent. The system would use security measures and keep data for no more than five years, unless State or federal law requires otherwise. The Commission would report to lawmakers every quarter. It would arrange a public independent review within two years after the system starts operating, and every two years after that.

Retailers would pay a 10% tax on sales of certain material at physical stores in North Carolina. The tax would cover gross receipts from sales of covered material at a retailer’s physical location in the State. The tax would apply to sales of material judged sexually explicit and harmful to minors under the bill’s definition; that definition excludes material made up entirely of written words. Vendors would register, file quarterly returns, and keep records. Half of net tax proceeds would go to the Human Trafficking Commission through the courts administration office; the rest would go to the Domestic Violence Center Fund. This section would take effect October 1, 2026.

The bill would require some vacation rental contractors to ensure workers receive trafficking awareness training and would revise an exception for certain government investigations. These provisions concern vacation rental contractors, their housekeeping and guest service workers, and government employees conducting the specified investigations. The training requirement covers contractor employees who do housekeeping at a vacation rental or provide guest check-in or check-out services. The government investigation exception covers official investigations involving people under Department of Adult Correction supervision or misuse of that department’s devices. These provisions would take effect when the bill becomes law. The contractor rule would apply to training due on or after that date; the investigation exception would apply to investigations before, on, or after that date.

The bill would set aside money for the reporting system and a Cleveland County Sheriff’s Office task force. Funds would go to the Administrative Office of the Courts for the Human Trafficking Commission, and to the Department of Public Safety for the Cleveland County Sheriff’s Office. The Commission money would cover implementation costs and vendor grants. The task force money would support work on trafficking, child sexual assault, and child sexual exploitation. The Commission would receive $200,000 for fiscal year 2026–2027 and $100,000 for 2027–2028. The task force section would take effect July 1, 2026, and provide $150,000 in each of those fiscal years.