Enacts new GS 14-406.2, Prohibition on sale, transfer, ownership, or possession of unsafe handgun. Includes findings of the General Assembly and defined terms. Directs the Department of Public Safety (DPS) to develop a roster of handguns determined not be unsafe based off the California Roaster of Handguns Certified for Sale (roster), defined as a roster compiled by the Department of Justice for the State of California pursuant to California Penal Code 12131 that lists all of the pistols, revolvers, and other firearms that have been tested by a certified testing laboratory and determined not to be unsafe. Makes it a Class 3 misdemeanor for any person, firm, or corporation to (1) manufacture, sell, give, loan, import, or otherwise transfer a handgun that is not listed on the roster as of January 1 of the calendar year in which the handgun is to be transferred or (2) own or possess a handgun that is not listed on the roster as of January 1 of the applicable calendar year, unless the person, firm, or corporation lawfully owned or possessed the handgun prior to that date. Limits lawful owners of handguns not listed on the roster as of January 1 of the applicable calendar year to selling or otherwise transferring the handgun only to a dealer or sheriff of the county where the person resides. Authorizes the sheriff to destroy or dispose of the handgun pursuant to the specified provisions. Limits a dealer who retains or lawfully acquires a handgun not listed on the roster as of January 1 of the applicable year to selling or otherwise transferring the handgun to another dealer. Prohibits the transfer of a handgun not listed on the roster as of January 1 of the applicable year by devise or bequest. Makes a violation of these provisions a Class 3 misdemeanor.

Identifies seven exemptions from the statute, including the temporary transfer of a lawfully owned handgun for the purposes of cleaning, repairing, or servicing the handgun by a dealer, and the possession of a handgun by a nonresident while temporarily traveling through the state. 

Provides for DPS testing of handguns that it believes should be added to the roster or should be removed from the roster in accordance with the specified parameters. Directs DPS to annually review and update the roster by rule by January 1, including (1) adding or removing those handguns tested by DPS under subsection (f) and (2) adding to the exemptions approved pistols developed by other states as authorized under subdivision (e)(7). Directs DPS to publish the roster and any updates to its website at least 30 days prior to the date the roster is to take effect.

Specifies that the initial roster developed pursuant to new GS 14-406.2 is to be based on the California Roster of Handguns Certified for Sale as of January 1, 2019. 

Directs DPS to submit a report to the Joint Legislative Oversight Committee on Justice and Public Safety on the development of the roster and the types of handguns included on the roster, and publish the roster on its website, by January 15, 2019. 

Effective January 1, 2019.

Appropriates $25,000 in nonrecurring funds for the 2018-19 fiscal year from the General Fund to DPS to cover costs incurred in meeting the requirements set out in new GS 14-406.2. Exempts the act from the provisions of GS 143C-5-2, concerning the order of appropriations bills. Effective July 1, 2018.