A BILL TO BE ENTITLED
AN ACT to expand the scope of certain pornography laws by amending the definition of Sexual Activity;  to increase the penalty for FIRST, second, and third degree sexual exploitation of a minor; to provide that it shall be illegal for the owner or operator of a social networking web site to allow a minor using a protected computer to create or maintain a profile web page on a social networking web site without the permission of the minor's parent or guardian and without providing such parent or guardian access to such profile web page and to provide for penalties; to provide that a film processor, photo finisher, or computer technician who, in the course of work, encounters an image of a minor engaging in sexual activity must report the name of the customer requesting the work to the appropriate Authorities; to increase the penalty for certain offenses of solicitation of child by computer to commit an unlawful sex act; to make it a felony to lie to a sworn SBI agent conducting an official investigation; to provide that an investigative grand jury may investigate certain alleged crimes in addition to those relating to controlled substances and to amend the procedure for convening an investigative grand jury.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 14‑190.13 reads as rewritten:
"§ 14‑190.13.  Definitions for certain offenses concerning minors.
The following definitions apply to G.S. 14‑190.14, displaying material harmful to minors; G.S. 14‑190.15, disseminating or exhibiting to minors harmful material or performances; G.S. 14‑190.16, first degree sexual exploitation of a minor; G.S. 14‑190.17, second degree sexual exploitation of a minor; G.S. 14‑190.17A, third degree sexual exploitation of a minor; G.S. 14‑190.18, promoting prostitution of a minor; G.S. 14‑190.19, participating in prostitution of a minor, and G.S. 14‑190.25, film, digital image, video processor or photo finisher or computer technician to report digital image, video or film or computer images containing pictures of a minor engaging in sexual activity.
(1)	Harmful to Minors. – That quality of any material or performance that depicts sexually explicit nudity or sexual activity and that, taken as a whole, has the following characteristics:
a.	The average adult person applying contemporary community standards would find that the material or performance has a predominant tendency to appeal to a prurient interest of minors in sex; and
b.	The average adult person applying contemporary community standards would find that the depiction of sexually explicit nudity or sexual activity in the material or performance is patently offensive to prevailing standards in the adult community concerning what is suitable for minors; and
c.	The material or performance lacks serious literary, artistic, political, or scientific value for minors.
(2)	Material. – Pictures, drawings, video recordings, films or other visual depictions or representations but not material consisting entirely of written words.
(3)	Minor. – An individual who is less than 18 years old and is not married or judicially emancipated.
(4)	Prostitution. – Engaging or offering to engage in sexual activity with or for another in exchange for anything of value.
(5)	Sexual Activity. – Any of the following acts:
a.	Masturbation, whether done alone or with another human or an animal.
b.	Vaginal, anal, or oral intercourse, whether done with another human or with an animal.
c.	Touching, in an act of apparent sexual stimulation or sexual abuse, of the clothed or unclothed genitals, pubic area, or buttocks of another person or the clothed or unclothed breasts of a human female.
d.	An act or condition that depicts torture, physical restraint by being fettered or bound, or flagellation of or by a person clad in undergarments or in revealing or bizarre costume.
e.	Excretory functions; provided, however, that this sub‑subdivision shall not apply to G.S. 14‑190.17A.
f.	The insertion of any part of a person's body, other than the male sexual organ, or of any object into another person's anus or vagina, except when done as part of a recognized medical procedure.
g.	The lascivious exhibition of the genitals or pubic area of any person.
(6)	Sexually Explicit Nudity. – The showing of:
a.	Uncovered, or less than opaquely covered, human genitals, pubic area, or buttocks, or the nipple or any portion of the areola of the human female breast, except as provided in G.S. 14‑190.9(b); or
b.	Covered human male genitals in a discernibly turgid state."
SECTION 2.  G.S. 14‑190.16(d) reads as rewritten:
"(d)	Punishment and Sentencing. – Violation of this section is a Class C felony."
SECTION 3.  G.S. 14‑190.17(d) reads as rewritten:
"(d)	Punishment and Sentencing. – Violation of this section is a Class D felony."
SECTION 4.  G.S. 14‑190.17A(d) reads as rewritten:
"(d)	Punishment and Sentencing. –  Violation of this section is a Class E felony."
SECTION 5.  Article 26 of Chapter 14 of the General Statutes is amended by adding a new section to read:
"§ 14‑190.25.  Film, digital image, video processor or photo finisher or computer technician to report digital image, video or film or computer images containing pictures of a minor engaging in sexual activity.
(a)	Any retail or wholesale film, digital image or video processor or photo finisher who is requested to develop film, digital image or video and any computer technician working with a computer who views an image of a minor or a person who appears to be a minor who is engaging in sexual activity shall report the name and address of the individual requesting the development of the film, or the owner or person in possession of the computer to the Cyber Tip Line at the National Center for Missing and Exploited Children and to the appropriate law enforcement official in the county or municipality in which the image or film was submitted. Any person complying with this section in good faith shall be immune from any civil or criminal liability that might otherwise be incurred as a result of the report.
(b)	Any person who knowingly fails to report as required by this section is guilty of an infraction punishable by a fine of two hundred fifty dollars ($250.00)."
SECTION 6.  G.S. 14‑202.3(c) reads as rewritten:
"(c)	Punishment. – A violation of this section is punishable as follows:
(1)	A violation is a Class H felony except as provided by subdivision (2) of this subsection.
(2)	If either the defendant or the person for whom the defendant was arranging the meeting in violation of this section actually appears at the meeting location, then the violation is a Class E felony."
SECTION 7.  G.S. 14‑225 reads as rewritten:
"§ 14‑225.  False reports to law enforcement agencies or officers.
(a)	For purposes of this section, the term "official inquiry" means the pursuit of an investigative matter by a sworn agent of the State Bureau of Investigation pursuant to a statutorily authorized request from the Governor or the Attorney General, assistance rendered in accordance with G.S. 114‑14, or an investigation being conducted as a matter of original jurisdiction conferred upon the State Bureau of Investigation by North Carolina law. 
(b)	Any person who shall willfully make or cause to be made to a law enforcement agency or officer any false, misleading or unfounded report, for the purpose of interfering with the operation of a law enforcement agency, or to hinder or obstruct any law enforcement officer in the performance of his duty, shall be guilty of a Class 2 misdemeanor.
(c)	In response to an official inquiry by a sworn agent of the State Bureau of Investigation, any person who shall willfully do any of the following is guilty of a Class H felony:
(1)	Falsify or conceal by any trick, scheme, or device a material fact.
(2)	Make any materially false, fictitious, or fraudulent statement or representation.
(3)	Use any false writing or document knowing the writing or document to contain any materially false, fictitious, or fraudulent statement or entry."SECTION 8.  Article 26 of Chapter 14 of the General Statutes is amended by adding a new section to read:
"§ 14‑318.5. Requiring parental permission for minors to access social networking Web sites.
(a)	Definitions. – The following definitions apply in this section:
(1)	Internet. – The global information system that is logically linked together by a globally unique address space based on the Internet Protocol or its subsequent extensions; that is able to support communications using the Transmission Control Protocol/Internet Protocol suite, its subsequent extensions, or other Internet Protocol compatible protocols; and that provides, uses, or makes accessible, either publicly or privately, high-level services layered on the communications and related infrastructure described in this subdivision.
(2)	Person. – A sole proprietor, partnership, corporation, limited liability company, trust, joint venture, or other legally cognizable entity.
(3)	Protected computer. – Any computer that, at the time of an alleged violation of any provision of this section involving that computer, was located within the geographic boundaries of the State of North Carolina.
(4)	Social networking Web site. – A Web site on the Internet that contains profile web pages of the members of the Web site containing the name or nickname of the member, photographs placed on the profile web page by the member, and other personal information about the member; contains links to other profile web pages on the social networking Web site of friends or associates of the member that can be accessed by other members or visitors to the Web site; and provides members of or visitors to the social networking Web site the ability to leave messages or comments on the profile web page that are visible to all or some visitors to the profile web page and may also include a form of electronic mail for members of the social networking Web site.
(b)	Offense. – It is unlawful for the owner or operator of a social networking Web site to allow a minor using a protected computer to become a member or to create or maintain a profile web page on a social networking Web site without the permission of the minor's parent or guardian and without providing the parent or guardian access to the profile web page at all times. The identity of the parent or guardian shall be verified by comparing the personal information provided by the parent or guardian against information found in databases containing information aggregated about individuals. 
(c)	Penalties. – Any person violating this section shall be punished as follows:
(1)	On the first offense, a person is guilty of a Class 3 misdemeanor.
(2)	On the second or subsequent offense, a person is guilty of a Class 1 misdemeanor."
SECTION 9.(a)  Chapter 15A of the General Statutes is amended by adding a new section to read:
"§ 15A‑632.  Investigative grand jury.
(a)	Allegations Subject to Investigation. – An investigative grand jury may be convened in accordance with this section to investigate an allegation regarding the commission of or conspiracy to commit any of the following:
(1)	The misdemeanor or felony offense of obstruction of justice (Common law offense).
(2)	A violation of G.S. 14‑17 (Murder) or G.S. 14‑18 (Manslaughter).
(3)	A violation of G.S. 14‑90 (Embezzlement of property received by virtue of office or employment), G.S. 14‑100 (Obtaining property by false pretenses), G.S. 14‑118.4 (Extortion), or G.S. 14‑119 (Forgery of notes, checks, and other securities; counterfeiting of instruments).
(4)	A violation of G.S. 14‑190.6 through G.S. 14‑190.8 or G.S. 14‑190.14 through G.S. 14‑190.19 (Relating to the dissemination of certain materials to minors, the use of a minor for obscene purposes, sexual exploitation of a minor, and the promotion of or participation in prostitution of a minor).
(5)	A violation of G.S. 14‑209 (Perjury) or G.S. 14‑210 (Subornation of perjury).
(6)	A violation of Article 29, 30, or 30A of Chapter 14 of the General Statutes (Relating to bribery, obstructing justice, and secret listening), G.S. 14‑228 (Buying and selling of offices), G.S. 14‑230 (Failing to discharge duties), G.S. 14‑234 (Public officers or employees benefiting from public contracts), or G.S. 14‑234.1 (Misuse of confidential information).
(7)	A violation of G.S. 14‑254 (Malfeasance of corporation officers and agents).
(8)	A violation of Article 37 of Chapter 14 of the General Statutes (Relating to lotteries, gaming, bingo, and raffles).
(9)	A violation of G.S. 90‑95(h) or G.S. 90‑95.1 (Relating to controlled substances and continuing criminal enterprises).
(10)	A violation of Article 20, 22, or 22A of Chapter 163 of the General Statutes (Relating to absentee ballots, corrupt practices and other offenses against the elective franchise, and regulation of contributions and expenditures in political campaigns).
(b)	Appointment of Permanent Three‑Judge Panel to Determine Whether to Convene Investigative Grand Jury. – Beginning December 1, 2007, and every two years thereafter, the Chief Justice shall appoint a permanent panel of three superior court judges to determine whether to order an investigative grand jury convened under this section. The panel of judges shall be appointed to serve for a term of two years. The Chief Justice shall fill any vacancy that occurs on the panel before the two‑year term ends.
(c)	Procedure for Determining Whether to Convene Investigative Grand Jury. – A written petition for convening of an investigative grand jury under this section may be filed by the district attorney, the district attorney's designated assistant, or a special prosecutor requested pursuant to G.S. 114‑11.6 with the Clerk of the North Carolina Supreme Court. The petition shall be forwarded to the Chief Justice who shall refer the petition to the panel of three judges established under subsection (b) of this section to determine whether to order the grand jury convened. An investigative grand jury under this section may be convened if the three‑judge panel determines all of the following:
(1)	The petition alleges the commission of or a conspiracy to commit any of the offenses listed in subsection (a) of this section, any part of which violation or conspiracy occurred in the county where the proposed investigative grand jury sits or will sit, and that persons named in the petition have knowledge related to the identity of the perpetrators of those crimes but will not divulge that knowledge voluntarily or that such persons request that they be allowed to testify before the grand jury.
(2)	The affidavit sets forth facts that establish probable cause to believe that the crimes specified in the petition have been committed and reasonable grounds to suspect that the persons named in the petition have knowledge related to the identity of the perpetrators of those crimes.
The affidavit shall be based upon personal knowledge or, if the source of the information and basis for the belief are stated, upon information and belief. The panel's order convening the grand jury as an investigative grand jury shall direct the grand jury to investigate the crimes and persons named in the petition, and shall be filed with the Clerk of the North Carolina Supreme Court. A grand jury so convened retains all powers, duties, and responsibilities of a grand jury under this Article. The contents of the petition and the affidavit shall not be disclosed. 
A grand jury authorized by this section may be convened from an existing grand jury or grand juries authorized by G.S. 15A‑622(b) or may be convened as an additional grand jury to an existing grand jury or grand juries. Notwithstanding G.S. 15A‑622(b), grand jurors impaneled pursuant to this section shall serve for a period of 12 months, and, if an additional grand jury is convened, 18 persons shall be selected to constitute that grand jury. At any time for cause shown, the presiding superior court judge may excuse a juror temporarily or permanently, and in the latter event the court may impanel another person in place of the juror excused.
(d)	Investigative Grand Jury Proceedings and Operations. –  If an investigative grand jury is convened pursuant to this section, notwithstanding G.S. 15A‑623(d), a prosecutor shall be present to examine witnesses, and a court reporter shall be present and record the examination of witnesses. The record shall be transcribed. If the prosecutor determines that it is necessary to compel testimony from the witness, the prosecutor may grant use immunity to the witness. The grant of use immunity shall be given to the witness in writing by the prosecutor and shall be signed by the prosecutor. The written grant of use immunity shall also be read into the record by the prosecutor and shall include an explanation of use immunity as provided in G.S. 15A‑1051. A witness shall have the right to leave the grand jury room to consult with the witness's counsel at reasonable intervals and for a reasonable period of time upon the request of the witness. Notwithstanding G.S. 15A‑623(e), the record of the examination of witnesses shall be made available to the examining prosecutor, and the prosecutor may disclose contents of the record to other investigative or law enforcement officers, the witness or the witness's attorney to the extent that the disclosure is appropriate to the proper performance of the prosecutor's official duties. The record of the examination of a witness may be used in a trial to the extent that it is relevant and otherwise admissible. Further disclosure of grand jury proceedings convened pursuant to this section may be made upon written order of a superior court judge if the judge determines disclosure is essential:
(1)	To prosecute a witness who appeared before the grand jury for contempt or perjury; or
(2)	To protect a defendant's constitutional rights or statutory rights to discovery pursuant to G.S. 15A‑903.
Upon the convening of the investigative grand jury pursuant to this section, the district attorney shall subpoena the witnesses. The subpoena shall be served by the investigative grand jury officer, who shall be appointed by the court. The name of the person subpoenaed and the issuance and service of the subpoena shall not be disclosed, except that a witness so subpoenaed may divulge that information. The presiding superior court judge shall hear any matter concerning the investigative grand jury in camera to the extent necessary to prevent disclosure of its existence. The court reporter for the investigative grand jury shall be present and record and transcribe the in camera proceeding. The transcription of any in camera proceeding and a copy of all subpoenas and other process shall be returned to the Chief Justice or to such member of the three‑judge panel as the Chief Justice may designate, to be filed with the Clerk of the North Carolina Supreme Court. The subpoena shall otherwise be subject to the provisions of G.S. 15A‑801 and Article 43 of Chapter 15A of the General Statutes. When an investigative grand jury has completed its investigation of the crimes alleged in the petition, the investigative functions of the grand jury shall be dissolved and such investigation shall cease. The District Attorney shall file a notice of dissolution of the investigative functions of the grand jury with the Clerk of the North Carolina Supreme Court."
SECTION 9.(b)  G.S. 15A‑622(h) is repealed.
SECTION 9.(c)  G.S. 15A‑623(h) is repealed.
SECTION 10.  This act becomes effective December 1, 2007, and applies to offenses committed on or after that date.