North Carolina 2025-2026 Regular Session

North Carolina House Bill H576 Latest Draft

Bill / Amended Version Filed 04/15/2025

                            GENERAL ASSEMBLY OF NORTH CAROLINA 
SESSION 2025 
H 	2 
HOUSE BILL 576 
Committee Substitute Favorable 4/15/25 
 
Short Title: Dept. of Health and Human Services Revisions.-AB 	(Public) 
Sponsors:  
Referred to:  
April 1, 2025 
*H576 -v-2* 
A BILL TO BE ENTITLED 1 
AN ACT MAKING TECHNI CAL, CONFORMING, AND OTHER MODIFICATIONS TO 2 
LAWS PERTAINING TO THE DEPARTMENT OF HEA LTH AND HUMAN SERVIC ES. 3 
The General Assembly of North Carolina enacts: 4 
 5 
PART I. LAWS PERTAIN ING TO THE DIVISION OF CHILD AND FAMILY 6 
WELL-BEING 7 
 8 
DESIGNATE THE DEPARTMENT OF HEALTH AND HUMAN SERVICES AS THE 9 
STATE AGENCY RESPONSIBLE FOR MANAGING SCHOOL NURSE FUNDS 10 
SECTION 1.1. G.S. 130A-4.3(b) reads as rewritten: 11 
"(b) The Division of Public Health Department shall ensure that school nurses funded with 12 
State funds (i) do not assist in any instructional or administrative duties associated with a school's 13 
curriculum and (ii) perform all of the following with respect to school health programs: 14 
(1) Serve as the coordinator of the health services program and provide nursing 15 
care. 16 
(2) Provide health education to students, staff, and parents. 17 
(3) Identify health and safety concerns in the school environment and promote a 18 
nurturing school environment. 19 
(4) Support healthy food services programs. 20 
(5) Promote healthy physical education, sports policies, and practices. 21 
(6) Provide health counseling, assess mental health needs, provide interventions, 22 
and refer students to appropriate school staff or community agencies. 23 
(7) Promote community involvement in assuring a healthy school and serve as 24 
school liaison to a health advisory committee. 25 
(8) Provide health education and counseling and promote healthy activities and a 26 
healthy environment for school staff. 27 
(9) Be available to assist the county health department during a public health 28 
emergency." 29 
 30 
PART II. LAWS PERTAINING TO THE DIVISION OF HEALTH BENEFITS 31 
 32 
TEMPORARILY EXTEND OPTION TO DECREASE MEDICAID ENROLLMENT 33 
BURDEN ON COUNTY DEPARTMENTS OF SOCIAL SERVICES 34 
SECTION 2.1. Section 1.8(a) of S.L. 2023-7, as amended by Section 9(a) of S.L. 35 
2024-34, reads as rewritten: 36  General Assembly Of North Carolina 	Session 2025 
Page 2  House Bill 576-Second Edition 
"SECTION 1.8.(a) Notwithstanding G.S. 108A-54(d) and in accordance with 1 
G.S. 143B-24(b), the Department of Health and Human Services (DHHS) is authorized, on a 2 
temporary basis to conclude by June 30, 2025, 2028, to utilize the federally facilitated 3 
marketplace (Marketplace), also known as the federal health benefit exchange, to make Medicaid 4 
eligibility determinations. In accordance with G.S. 108A-54(b), G.S. 108A-54(f), these 5 
eligibility determinations shall be in compliance with all eligibility categories, resource limits, 6 
and income thresholds set by the General Assembly." 7 
 8 
CLARIFY ENROLLMENT IN MEDICAID MANAGED CARE AFTER RELEASE 9 
FROM INCARCERATION 10 
SECTION 2.2.(a) G.S. 108D-40 reads as rewritten: 11 
"§ 108D-40.  Populations covered by PHPs. 12 
(a) Capitated PHP contracts shall cover all Medicaid program aid categories except for 13 
the following categories: 14 
… 15 
(9) Recipients who are inmates of prisons. Upon the recipient's release from 16 
prison, the exception under this subdivision shall continue to apply for a 17 
period that is the shorter of the following:until the first day of the month 18 
following the twelfth month after the recipient's release. 19 
a. The recipient's initial Medicaid eligibility certification period post 20 
release. 21 
b. Three hundred sixty-five days. 22 
(9a) Recipients residing in carceral settings other than prisons and whose Medicaid 23 
eligibility has been suspended. Upon the recipient's release from 24 
incarceration, the exception under this subdivision shall continue to apply for 25 
a period that is the shorter of the following:until the first day of the month 26 
following the twelfth month after the recipient's release. 27 
a. The recipient's initial Medicaid eligibility certification period post 28 
release. 29 
b. Three hundred sixty-five days. 30 
…." 31 
SECTION 2.2.(b) This section is effective when it becomes law and applies to (i) 32 
inmates released on or after that date and (ii) inmates released on or after January 1, 2025, who 33 
are not enrolled with a PHP on the date this act becomes law. 34 
 35 
CONFORM NORTH CAROLINA LAW TO FEDERAL REQUIREMENTS FOR 36 
MEDICAID CATEGORICAL RISK LEVELS FOR PROVIDER SCREENINGS 37 
SECTION 2.3.(a) G.S. 108C-3 reads as rewritten: 38 
"§ 108C-3.  Medicaid provider screening. 39 
(a) Provider Screening. – The Department shall conduct provider screening of Medicaid 40 
providers in accordance with applicable State or federal law or regulation. 41 
(b) Enrollment Screening. – The Department must screen all initial provider applications 42 
for enrollment in Medicaid, including applications for a new practice location, and all 43 
revalidation requests based on Department the Department's assessment of risk and assignment 44 
of the provider to a categorical risk level of "limited," "moderate," or "high." limited, moderate, 45 
or high. If a provider could fit within more than one risk level described in this section, the highest 46 
level of screening is applicable. 47 
(c) Limited Categorical Risk Provider Types. – The All of the following provider types 48 
are hereby designated as "limited" limited categorical risk: 49 
… 50  General Assembly Of North Carolina 	Session 2025 
House Bill 576-Second Edition 	Page 3 
(4) Health programs operated by an Indian Health Program (as Program, as 1 
defined in section 4(12) of the Indian Health Care Improvement Act) Act, or 2 
an urban Indian organization (as organization, as defined in section 4(29) of 3 
the Indian Health Care Improvement Act) Act, that receives funding from the 4 
Indian Health Service pursuant to Title V of the Indian Health Care 5 
Improvement Act. 6 
… 7 
(10) Nursing facilities, including Intermediate Care Facilities for Individuals with 8 
Intellectual Disabilities.Disabilities, that are not skilled nursing facilities. 9 
(10a) Skilled nursing facilities that are limited categorical risk under subsection (k) 10 
of this section. 11 
… 12 
(12) Physician or nonphysician practitioners (including practitioners, including 13 
nurse practitioners, CRNAs, physician assistants, physician extenders, 14 
occupational therapists, speech/language pathologists, chiropractors, and 15 
audiologists), optometrists, audiologists; optometrists; dentists and 16 
orthodontists, orthodontists; and medical groups or clinics. 17 
… 18 
(d) Limited Categorical Risk Screenings. – When the Department designates a provider 19 
as a "limited" limited categorical level of risk, the Department shall conduct such the applicable 20 
screening functions as required by federal law. 21 
(e) Moderate Categorical Risk Provider Types. – The All of the following provider types 22 
are hereby designated as "moderate" moderate categorical risk: 23 
… 24 
(8) Pharmacy Services.services. 25 
… 26 
(11) Revalidating agencies providing durable medical equipment, including, but 27 
not limited to, including orthotics and prosthetics. 28 
… 29 
(15) Skilled nursing facilities that are moderate categorical risk under subsection 30 
(k) of this section. 31 
(f) Moderate Categorical Risk Screenings. – When the Department designates a provider 32 
as a "moderate"' moderate categorical level of risk, the Department shall conduct such the 33 
applicable screening functions as required by federal law and regulation. 34 
(g) High Categorical Risk Provider Types. – The All of the following provider types are 35 
hereby designated as "high" high categorical risk: 36 
(1) Prospective (newly enrolling) Prospective, or newly enrolling, adult care 37 
homes delivering Medicaid-reimbursed services. 38 
… 39 
(4) Prospective (newly enrolling) Prospective, or newly enrolling, agencies 40 
providing durable medical equipment, including, but not limited to, orthotics 41 
and prosthetics. 42 
… 43 
(6) Prospective (newly enrolling) Prospective, or newly enrolling, agencies 44 
providing nonbehavioral health home- or community-based services pursuant 45 
to waivers authorized by the federal Centers for Medicare and Medicaid 46 
Services under 42 U.S.C. § 1396n(c). 47 
(7) Prospective (newly enrolling) Prospective, or newly enrolling, agencies 48 
providing personal care services or in-home care services. 49 
(8) Prospective (newly enrolling) Prospective, or newly enrolling, agencies 50 
providing private duty nursing, home health, or home infusion. 51  General Assembly Of North Carolina 	Session 2025 
Page 4  House Bill 576-Second Edition 
(9) Providers against whom which the Department has imposed a payment 1 
suspension based upon a credible allegation of fraud in accordance with 42 2 
C.F.R. § 455.23 within the previous 12-month period. The Department shall 3 
return the provider to its original risk category not later than 12 months after 4 
the cessation of the payment suspension. 5 
… 6 
(11) Providers who that have incurred a Medicaid final overpayment, assessment, 7 
or fine to the Department in excess of twenty percent (20%) of the provider's 8 
payments received from Medicaid in the previous 12-month period. The 9 
Department shall return the provider to its original risk category not later than 10 
12 months after the completion of the provider's repayment of the final 11 
overpayment, assessment, or fine. 12 
… 13 
(13) Skilled nursing facilities that are high categorical risk under subsection (k) of 14 
this section. 15 
(h) High Categorical Risk Screenings. – When the Department designates a provider as 16 
a "high" high categorical level of risk, the Department shall conduct such the applicable screening 17 
functions as required by federal law and regulation. 18 
(i) Dually-Enrolled Providers. – For providers dually enrolled in the federal Medicare 19 
program and Medicaid, the Department may rely on the results of the provider screening 20 
performed by Medicare contractors. 21 
(j) Out-of-State Providers. – For out-of-state providers, the Department may rely on the 22 
results of the provider screening performed by the Medicaid agencies or Children's Health 23 
Insurance Program agencies of other states. 24 
(k) Skilled Nursing Facilities. – The categorial risk level for provider screening of skilled 25 
nursing facilities is the categorical risk level required by federal law or regulation. If federal law 26 
or regulation does not require a particular categorical risk level, skilled nursing facilities are 27 
limited categorical risk." 28 
SECTION 2.3.(b) G.S. 108C-3, as amended by Section 2.3(a) of this act, reads as 29 
rewritten: 30 
"§ 108C-3.  Medicaid provider screening. 31 
… 32 
(c) Limited Categorical Risk Provider Types. – All of the following provider types are 33 
designated as limited categorical risk: 34 
… 35 
(1a) Behavioral health and intellectual and developmental disability provider 36 
agencies that are nationally accredited by an entity approved by the 37 
Secretary.Secretary, unless they meet the description in subdivision (g)(15) of 38 
this section. 39 
… 40 
(16) Portable X-ray suppliers. 41 
… 42 
(e) Moderate Categorical Risk Provider Types. – All of the following provider types are 43 
designated as moderate categorical risk: 44 
… 45 
(5) Hospice organizations.Revalidating hospice organizations, unless they meet 46 
the description in subdivisions (g)(14) and (g)(15) of this section. 47 
… 48 
(10) Revalidating adult care homes delivering Medicaid-reimbursed 49 
services.services, unless they meet the description in subdivision (g)(15) of 50 
this section. 51  General Assembly Of North Carolina 	Session 2025 
House Bill 576-Second Edition 	Page 5 
(11) Revalidating agencies providing durable medical equipment, including 1 
orthotics and prosthetics.prosthetics, unless they meet the description in 2 
subdivision (g)(15) of this section. 3 
(12) Revalidating agencies providing nonbehavioral health home- or 4 
community-based services pursuant to waivers authorized by the federal 5 
Centers for Medicare and Medicaid Services under 42 U.S.C. § 1396n(c).42 6 
U.S.C. § 1396n(c), unless they meet the description in subdivision (g)(15) of 7 
this section. 8 
(13) Revalidating agencies providing private duty nursing, home health, personal 9 
care services or in-home care services, or home infusion.infusion, unless they 10 
meet the description in subdivision (g)(15) of this section. 11 
… 12 
(16) Portable X-ray suppliers. 13 
… 14 
(g) High Categorical Risk Provider Types. – All of the following provider types are 15 
designated as high categorical risk: 16 
… 17 
(14) Prospective, or newly enrolling, hospice organizations and revalidating 18 
hospice organizations undergoing a change in ownership. 19 
(15) The following revalidating providers (i) that are revalidating for the first time 20 
since newly enrolling and (ii) for which fingerprinting requirements, as a 21 
newly enrolling provider, were waived due to a national, state, or local 22 
emergency: 23 
a. Opioid treatment programs that have not been fully and continuously 24 
certified by the Substance Abuse and Mental Health Services 25 
Administration since October 23, 2018. 26 
b. Agencies providing durable medical equipment, including orthotics 27 
and prosthetics. 28 
c. Adult care homes delivering Medicaid-reimbursed services. 29 
d. Agencies providing private duty nursing, home health, personal care 30 
services, or in-home care services, or home infusion. 31 
e. Hospice organizations. 32 
…." 33 
SECTION 2.3.(c) Subsection (a) of this section is retroactively effective January 1, 34 
2023. The remainder of this section is retroactively effective January 1, 2024. 35 
 36 
CLARIFY MEDICAID SUBROGATION RIGHTS IN MANAGED CARE 37 
ENVIRONMENT 38 
SECTION 2.4.(a) G.S. 108A-57 reads as rewritten: 39 
"§ 108A-57.  Subrogation rights; withholding of information a misdemeanor. 40 
(a) As used in this section, the term "beneficiary" means (i) the beneficiary of medical 41 
assistance, including a minor beneficiary, (ii) the medical assistance beneficiary's parent, legal 42 
guardian, or personal representative, (iii) the medical assistance beneficiary's heirs, and (iv) the 43 
administrator or executor of the medical assistance beneficiary's estate. 44 
Notwithstanding any other provisions of the law, to the extent of payments under this Part, 45 
the State shall be subrogated to all rights of recovery, contractual or otherwise, of a beneficiary 46 
against any person. Any claim brought by a medical assistance beneficiary against a third party 47 
shall include a claim for all medical assistance payments for health care items or services 48 
furnished to the medical assistance beneficiary as a result of the injury or action, hereinafter 49 
referred to as the "Medicaid claim." Any claim brought by a medical assistance beneficiary 50 
against a third party that does not state the Medicaid claim shall be deemed to include the 51  General Assembly Of North Carolina 	Session 2025 
Page 6  House Bill 576-Second Edition 
Medicaid claim. If the beneficiary has claims against more than one third party related to the 1 
same injury, then any amount received in payment of the Medicaid claim related to that injury 2 
shall reduce the total balance of the Medicaid claim applicable to subsequent recoveries related 3 
to that injury. 4 
The Department may designate one or more PHPs to receive all or a portion of payments due 5 
under this section to the Department for the Medicaid claim by sending a notice of designation 6 
to (i) the beneficiary who has the claim against the third party and (ii) any PHP designated in the 7 
notice. As used in this section, the term "designated PHP" refers to a PHP designated in the notice 8 
of designation under this subsection. 9 
(a1) If the amount of the Medicaid claim does not exceed one-third of the medical 10 
assistance beneficiary's gross recovery, it is presumed that the gross recovery includes 11 
compensation for the full amount of the Medicaid claim. If the amount of the Medicaid claim 12 
exceeds one-third of the medical assistance beneficiary's gross recovery, it is presumed that 13 
one-third of the gross recovery represents compensation for the Medicaid claim. 14 
(a2) A medical assistance beneficiary may dispute the presumptions established in 15 
subsection (a1) of this section by applying to the court in which the medical assistance 16 
beneficiary's claim against the third party is pending, or if there is none, then to a court of 17 
competent jurisdiction in this State, for a determination of the portion of the beneficiary's gross 18 
recovery that represents compensation for the Medicaid claim. An application under this 19 
subsection shall be filed with the court and served on the Department pursuant to the Rules of 20 
Civil Procedure no later than 30 days after the date that the settlement agreement is executed by 21 
all parties and, if required, approved by the court, or in cases in which judgment has been entered, 22 
no later than 30 days after the date of entry of judgment. If a PHP made payments on behalf of a 23 
Medicaid beneficiary that are included in the Medicaid claim, then the application shall also be 24 
served on that PHP within the same time frame in which service is required on the Department. 25 
The court shall hold an evidentiary hearing no sooner than 60 days after the date the action was 26 
filed. All of the following shall apply to the court's determination under this subsection: 27 
(1) The medical assistance beneficiary has the burden of proving by clear and 28 
convincing evidence that the portion of the beneficiary's gross recovery that 29 
represents compensation for the Medicaid claim is less than the portion 30 
presumed under subsection (a1) of this section. 31 
(2) The presumption arising under subsection (a1) of this section is not rebutted 32 
solely by the fact that the medical assistance beneficiary was not able to 33 
recover the full amount of all claims. 34 
(3) If the beneficiary meets its burden of rebutting the presumption arising under 35 
subsection (a1) of this section, then the court shall determine the portion of 36 
the recovery that represents compensation for the Medicaid claim and shall 37 
order the beneficiary to pay the amount so determined to the Department 38 
Department, or designated PHP, in accordance with subsection (a5) of this 39 
section. In making this determination, the court may consider any factors that 40 
it deems just and reasonable. 41 
(4) If the beneficiary fails to rebut the presumption arising under subsection (a1) 42 
of this section, then the court shall order the beneficiary to pay the amount 43 
presumed pursuant to subsection (a1) of this section to the Department 44 
Department, or designated PHP, in accordance with subsection (a5) of this 45 
section. 46 
(a3) Notwithstanding the presumption arising pursuant to subsection (a1) of this section, 47 
the medical assistance beneficiary and the Department may reach an agreement on the portion of 48 
the recovery that represents compensation for the Medicaid claim. If such an agreement is 49 
reached after an application has been filed pursuant to subsection (a2) of this section, a stipulation 50 
of dismissal of the application signed by both parties shall be filed with the court. 51  General Assembly Of North Carolina 	Session 2025 
House Bill 576-Second Edition 	Page 7 
(a4) Within 30 days of receipt of the proceeds of a settlement or judgment related to a 1 
claim described in subsection (a) of this section, the medical assistance beneficiary or any 2 
attorney retained by the beneficiary shall notify the Department Department, and any designated 3 
PHP, of the receipt of the proceeds. 4 
(a5) The medical assistance beneficiary or any attorney retained by the beneficiary shall, 5 
out of the proceeds obtained by or on behalf of the beneficiary by settlement with, judgment 6 
against, or otherwise from a third party by reason of injury or death, distribute to the Department 7 
Department, or designated PHP, the amount due pursuant to this section as follows: 8 
(1) If, upon the expiration of the time for filing an application pursuant subsection 9 
(a2) of this section, no application has been filed, then the amount presumed 10 
pursuant to subsection (a1) of this section, as prorated with the claims of all 11 
others having medical subrogation rights or medical liens against the amount 12 
received or recovered, shall be paid to the Department Department, or 13 
designated PHP, within 30 days of the beneficiary's receipt of the proceeds, in 14 
the absence of an agreement pursuant to subsection (a3) of this section. 15 
(2) If an application has been filed pursuant to subsection (a2) of this section and 16 
no agreement has been reached pursuant to subsection (a3) of this section, 17 
then the Department Department, or designated PHP, shall be paid as follows: 18 
a. If the beneficiary rebuts the presumption arising under subsection (a1) 19 
of this section, then the amount determined by the court pursuant to 20 
subsection (a2) of this section, as prorated with the claims of all others 21 
having medical subrogation rights or medical liens against the amount 22 
received or recovered, shall be paid to the Department Department, or 23 
designated PHP, within 30 days of the entry of the court's order. 24 
b. If the beneficiary fails to rebut the presumption arising under 25 
subsection (a1) of this section, then the amount presumed pursuant to 26 
subsection (a1) of this section, as prorated with the claims of all others 27 
having medical subrogation rights or medical liens against the amount 28 
received or recovered, shall be paid to the Department Department, or 29 
designated PHP, within 30 days of the entry of the court's order. 30 
(3) If an agreement has been reached pursuant to subsection (a3) of this section, 31 
then the agreed amount, as prorated with the claims of all others having 32 
medical subrogation rights or medical liens against the amount received or 33 
recovered, shall be paid to the Department Department, or designated PHP, 34 
within 30 days of the execution of the agreement by the medical assistance 35 
beneficiary and the Department. 36 
(a6) The United States and the State of North Carolina shall be entitled to shares in each 37 
net recovery by the Department under this section. Their shares shall be promptly paid under this 38 
section and their proportionate parts of such sum shall be determined in accordance with the 39 
matching formulas in use during the period for which assistance was paid to the recipient. 40 
(b) It is a Class 1 misdemeanor for any person seeking or having obtained assistance 41 
under this Part for himself or another to willfully fail to disclose to the county department of 42 
social services or its attorney and to the Department the identity of any person or organization 43 
against whom the recipient of assistance has a right of recovery, contractual or otherwise. 44 
(c) (For contingent repeal, see note) This section applies to the administration of and 45 
claims payments under the NC Health Choice Program established under Part 8 of this Article. 46 
(d) As required to ensure compliance with this section, the Department may apply to the 47 
court in which the medical assistance beneficiary's claim against the third party is pending, or if 48 
there is none, then to a court of competent jurisdiction in this State for enforcement of this 49 
section." 50  General Assembly Of North Carolina 	Session 2025 
Page 8  House Bill 576-Second Edition 
SECTION 2.4.(b) This section is effective when it becomes law and applies to 1 
Medicaid claims brought by medical assistance beneficiaries against third parties on or after that 2 
date. 3 
 4 
PART III. LAWS PERTA INING TO THE DIVISIO N OF HEALTH SERVICE 5 
REGULATION 6 
 7 
ALIGN CAPACITY OF MEDICAL F OSTER HOMES OPERATING IN THE STATE 8 
UNDER THE SUPERVISION OF THE UNITED STATES DEPARTMENT OF 9 
VETERANS AFFAIRS WITH FEDERAL REGULATIONS 10 
SECTION 3.1. G.S. 131D-2.3 reads as rewritten: 11 
"§ 131D-2.3.  Exemptions from licensure. 12 
The following are excluded from this Article and are not required to be registered or obtain 13 
licensure under this Article: 14 
(1) Facilities licensed under Chapter 122C or Chapter 131E of the General 15 
Statutes. 16 
(2) Persons subject to rules of the Division of Employment and Independence for 17 
People with Disabilities. 18 
(3) Facilities that care for no more than four three persons, all of whom are under 19 
the supervision of the United States Veterans Administration. 20 
(4) Facilities that make no charges for housing, amenities, or personal care 21 
service, either directly or indirectly. 22 
(5) Institutions that are maintained or operated by a unit of government and that 23 
were established, maintained, or operated by a unit of government and exempt 24 
from licensure by the Department on September 30, 1995." 25 
 26 
AUTHORIZE THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO 27 
INSPECT RESIDENCES OR FACILITIES BELIEVED TO BE OPERATING AS 28 
ADULT CARE HOMES WITHOUT A LICENSE AND INCREASE PENALTIES FOR 29 
UNLAWFUL ADULT CARE HOME OPERATIONS 30 
SECTION 3.2.(a) G.S. 131D-2.5(b) reads as rewritten: 31 
"(b) The Department shall charge each registered multiunit assisted housing with services 32 
program a nonrefundable annual registration fee of three hundred fifty dollars ($350.00). Any 33 
individual or corporation that establishes, conducts, manages, or operates a multiunit housing 34 
with services program, subject to registration under this section, that fails to register is guilty of 35 
a Class 3 misdemeanor and, upon conviction shall be punishable only by a fine of not more than 36 
fifty dollars ($50.00) for the first offense and not more than five hundred dollars ($500.00) for 37 
each subsequent offense. Class H felony, including a fine of one thousand dollars ($1,000) per 38 
day for each day the facility is in operation in violation of this Article. Each day of a continuing 39 
violation after conviction shall be considered a separate offense." 40 
SECTION 3.2.(b) G.S. 131D-2.6 reads as rewritten: 41 
"§ 131D-2.6.  Legal action by Department. 42 
(a) Notwithstanding the existence or pursuit of any other remedy, the Department may, 43 
in the manner provided by law, maintain an action in the name of the State for injunction or other 44 
process against any person to restrain or prevent the establishment, conduct, management, or 45 
operation of an adult care home without a license. Such action shall be instituted in the superior 46 
court of the county in which any unlicensed activity has occurred or is occurring. 47 
(a1) The Department and county departments of social services may inspect any of the 48 
following as authorized by law: 49 
(1) A residence or facility the Department believes to be operating as an assisted 50 
living residence without an appropriate license or registration. 51  General Assembly Of North Carolina 	Session 2025 
House Bill 576-Second Edition 	Page 9 
(2) A registered multiunit assisted housing with services facility to determine if it 1 
is operating as a licensable adult care home facility without a license. 2 
(b) Any individual or corporation that establishes, conducts, manages, or operates a 3 
facility subject to licensure under this section without a license is guilty of a Class 3 misdemeanor 4 
and, upon conviction, shall be punishable only by a fine of not more than fifty dollars ($50.00) 5 
for the first offense and not more than five hundred dollars ($500.00) for each subsequent offense. 6 
an assisted living facility without a license or registration, as required under this Article, is guilty 7 
of a Class H felony, including a fine of one thousand dollars ($1,000) per day for each day the 8 
facility is in operation in violation of this Article. Each day of a continuing violation after 9 
conviction shall be considered a separate offense. 10 
(c) If any person shall hinder the proper performance of duty of the Secretary or the 11 
Secretary's representative in carrying out this section, the Secretary may institute an action in the 12 
superior court of the county in which the hindrance has occurred for injunctive relief against the 13 
continued hindrance, irrespective of all other remedies at law. 14 
(d) Actions under this section shall be in accordance with Article 37 of Chapter 1 of the 15 
General Statutes and Rule 65 of the Rules of Civil Procedure." 16 
SECTION 3.2.(c) This section becomes effective December 1, 2025, and applies to 17 
offenses committed on or after that date. 18 
 19 
ALIGN HOSPITAL REPORTING REQUIREMENTS UNDER THE HOSPITAL 20 
VIOLENCE PROTECTION ACT WITH T HE HOSPITAL LICENSE RENEWAL 21 
APPLICATION PROCESS 22 
SECTION 3.3.(a) G.S. 131E-76 is amended by adding a new subdivision to read: 23 
"(1c) Division of Health Service Regulation. – The Division of Health Service 24 
Regulation within the Department of Health and Human Services." 25 
SECTION 3.3.(b) G.S. 131E-88.2 reads as rewritten: 26 
"§ 131E-88.2.  Reports. 27 
(a) Annually by October 1, the Department of Health and Human Services, February 28, 28 
each hospital shall report to the Division of Health Service Regulation, shall collect in a manner 29 
and format requested by the Department, the following data from hospitals for the preceding 30 
calendar year: for the prior federal fiscal year ending September 30: (i) the number of assaults 31 
occurring in the hospital or on hospital grounds that required the involvement of law 32 
enforcement, whether the assaults involved hospital personnel, and how those assaults were 33 
pursued by the hospital and processed by the judicial system, (ii) the number and impact of 34 
incidences where patient behavioral health and substance use issues resulted in violence in the 35 
hospital and the number that occurred specifically in the emergency department, and (iii) the 36 
number of workplace violence incidences occurring at the hospital that were reported as required 37 
by accrediting agencies, the Occupational Safety and Health Administration, and other entities. 38 
(b) The Department of Health and Human Services shall compile the information 39 
required by subsection (a) of this section and shall share that data with the North Carolina 40 
Sheriffs' Association, the North Carolina Association of Chiefs of Police, and the North Carolina 41 
Emergency Management Association. The Department shall request these organizations examine 42 
the data and make recommendations to the Department to decrease the incidences of violence in 43 
hospitals and to decrease assaults on hospital personnel. 44 
(c) The Department shall compile the information required by subsections (a) and (b) of 45 
this section and report findings and recommendations to the Joint Legislative Oversight 46 
Committee on Health and Human Services annually by December 1.May 1." 47 
 48 
REPEAL NC NEW ORGANIZATIONAL VISION AWARD PROGRAM 49 
SECTION 3.4. Part 6 of Article 6 of Chapter 131E of the General Statutes is 50 
repealed. 51  General Assembly Of North Carolina 	Session 2025 
Page 10  House Bill 576-Second Edition 
 1 
DESIGNATE THE NC OFFICE OF EMERGENCY MEDICAL SERVICES AS THE 2 
ENTITY RESPONSIBLE FOR APPROVING INDIVIDUALS TO ADMINISTER 3 
EPINEPHRINE 4 
SECTION 3.5. G.S. 143-509 reads as rewritten: 5 
"§ 143-509.  Powers and duties of Secretary. 6 
The Secretary of the Department of Health and Human Services has full responsibilities for 7 
supervision and direction of the emergency medical services program and, to that end, shall 8 
accomplish all of the following: 9 
… 10 
(9) Promote a means of training individuals to administer life-saving treatment to 11 
persons who suffer a severe adverse reaction to agents that might cause 12 
anaphylaxis. Individuals, upon successful completion of this training 13 
program, may be approved by the North Carolina Medical Care Commission 14 
Office of Emergency Medical Services to administer epinephrine to these 15 
persons, in the absence of the availability of physicians or other practitioners 16 
who are authorized to administer the treatment. This training may also be 17 
offered as part of the emergency medical services training program. 18 
…." 19 
 20 
PART IV. LAWS PERTAINING TO THE DIVISION OF PUBLIC HEALTH 21 
 22 
REVISE THE COMPOSITION OF LOCAL CHILD FATALITY REVIEW TEAMS TO 23 
SUPPORT GREATER EFFICIENCY 24 
SECTION 4.1. G.S. 7B-1407 reads as rewritten: 25 
"§ 7B-1407.  Local Teams; composition and leadership. 26 
… 27 
(b) Each Local Team shall consist of the following persons: 28 
(1) The director of the county department of social services or the director of the 29 
consolidated human services agency and a member of the director's 30 
staff.agency, or the director's designee, who shall be a member of senior 31 
management. 32 
(1a) A staff member of the county department of social services or of the 33 
consolidated human services agency, appointed by the county department of 34 
social services or the consolidated human services agency. 35 
(2) A local law enforcement officer, appointed by the board of county 36 
commissioners. 37 
(3) An attorney from the district attorney's office, appointed by the district 38 
attorney. 39 
(4) The executive director of the local community action agency, as defined by 40 
the Department of Health and Human Services, or the executive director's 41 
designee. 42 
(5) The superintendent of each local school administrative unit located in the 43 
county, or the superintendent's designee. 44 
(6) A member of the county board of social services, appointed by the chair of 45 
that board. 46 
(7) A local mental health professional, appointed by the director of the area 47 
authority established under Chapter 122C of the General Statutes. 48 
(8) The local guardian ad litem coordinator, or the coordinator's designee. 49 
(9) The director of the local department of public health.health, or the director's 50 
designee, who shall be a member of senior management. 51  General Assembly Of North Carolina 	Session 2025 
House Bill 576-Second Edition 	Page 11 
(10) A local health care provider, appointed by the local board of health. 1 
(11) An emergency medical services provider or firefighter, appointed by the board 2 
of county commissioners. 3 
(12) A district court judge, appointed by the chief district court judge in that 4 
district. 5 
(13) A county medical examiner, appointed by the Chief Medical Examiner. 6 
(14) A representative of a local child care facility or Head Start program, appointed 7 
by the director of the county department of social services. 8 
(15) A parent of a child who died before reaching the child's eighteenth birthday, 9 
to be appointed by the board of county commissioners. 10 
(c) The chair of the Local Team may invite a maximum of five additional individuals to 11 
participate on the Local Team on an ad hoc basis for a specific review if the chair believes the 12 
individual's subject matter expertise or position within an organization will enhance the ability 13 
of the Local Team to conduct an effective review. The chair may select ad hoc members from 14 
outside of the county or counties served by the Local Team. As a condition of participating in a 15 
specific review, each ad hoc member is required to sign the same confidentiality statement signed 16 
by a Local Team member and is subject to the provisions of G.S. 7B-1413. 17 
…." 18 
 19 
REMOVE ERRONEOUS REFERENCES TO THE COMMISSION FOR PUBLIC 20 
HEALTH FROM STATUTES GOVERNING THE STATEWIDE CHEMICAL 21 
ALCOHOL TESTING PROGRAM ADMINISTERED BY THE FORENSIC TESTS FOR 22 
ALCOHOL BRANCH 23 
SECTION 4.2.(a) G.S. 15A-534.2(d) reads as rewritten: 24 
"(d) In making his a determination about whether a defendant detained under this section 25 
remains impaired, the judicial official may request that the defendant submit to periodic tests to 26 
determine his the defendant's alcohol concentration. Instruments acceptable for making 27 
preliminary breath tests under G.S. 20-16.3 may be used for this purpose as well as instruments 28 
for making evidentiary chemical analyses. Unless there is evidence that the defendant is still 29 
impaired from a combination of alcohol and some other impairing substance or condition, a 30 
judicial official must is required to determine that a defendant with an alcohol concentration less 31 
than 0.05 is no longer impaired. The results of any periodic test to determine alcohol 32 
concentration may not be introduced in evidence:into evidence in either of the following 33 
circumstances: 34 
(1) Against the defendant by the State in any criminal, civil, or administrative 35 
proceeding arising out of an offense involving impaired driving; ordriving. 36 
(2) For any purpose in any proceeding if the test was not performed by a method 37 
approved by the Commission for Public Health Department of Health and 38 
Human Services under G.S. 20-139.1 and by a person licensed to administer 39 
the test by the Department of Health and Human Services. 40 
The fact that a defendant refused to comply with a judicial official's request that he submit to a 41 
chemical analysis may not be admitted into evidence in any criminal action, administrative 42 
proceeding, or a civil action to review a decision reached by an administrative agency in which 43 
the defendant is a party." 44 
SECTION 4.2.(b) G.S. 20-138.7(d) reads as rewritten: 45 
"(d) Alcohol Screening Test. – Notwithstanding any other provision of law, an alcohol 46 
screening test may be administered to a driver suspected of violating subsection (a) of this 47 
section, and the results of an alcohol screening test or the driver's refusal to submit may be used 48 
by a law enforcement officer, a court, or an administrative agency in determining if alcohol was 49 
present in the driver's body. No alcohol screening tests are valid under this section unless the 50 
device used is one approved by the Commission for Public Health, Department of Health and 51  General Assembly Of North Carolina 	Session 2025 
Page 12  House Bill 576-Second Edition 
Human Services, and the screening test is conducted in accordance with the applicable 1 
regulations of the Commission rules adopted by the Department of Health and Human Services 2 
as to the manner of its use." 3 
 4 
REMOVE REFERENCES TO THE NORTH CAROLINA 	MEDICAL SOCIETY'S 5 
DEFUNCT CANCER COMMITTEE 6 
SECTION 4.3.(a) G.S. 130A-33.50 reads as rewritten: 7 
"§ 130A-33.50.  Advisory Committee on Cancer Coordination and Control established; 8 
membership, compensation. 9 
… 10 
(b) The Committee shall have consist of up to 34 members, including the Secretary of the 11 
Department or the Secretary's designee. The members of the Committee shall elect a chair and 12 
vice-chair from among the Committee membership. The Committee shall meet not more than 13 
twice a year at the call of the chair. Six of the members shall be legislators, three of whom shall 14 
be appointed by the Speaker of the House of Representatives, and three of whom shall be 15 
appointed by the President Pro Tempore of the Senate. Four of the members shall be cancer 16 
survivors, two of whom shall be appointed by the Speaker of the House of Representatives, and 17 
two of whom shall be appointed by the President Pro Tempore of the Senate. The remainder of 18 
the members shall be appointed by the Governor as follows: 19 
(1) One member from the Department of Environmental Quality;Quality. 20 
(2) Three members, one from each of the following: the Department, the 21 
Department of Public Instruction, and the North Carolina Community College 22 
System;System. 23 
(3) Four members representing the cancer control programs at North Carolina 24 
medical schools, one from each of the following: the University of North 25 
Carolina at Chapel Hill School of Medicine, the Bowman Gray School of 26 
Medicine, the Duke University School of Medicine, and the East Carolina 27 
University School of Medicine;Medicine. 28 
(4) One member who is an oncology nurse representing the North Carolina 29 
Nurses Association;Association. 30 
(5) One member representing the Cancer Committee of the North Carolina 31 
Medical Society;Society. 32 
(6) One member representing the Old North State Medical Society;Society. 33 
(7) One member representing the American Cancer Society, North Carolina 34 
Division, Inc.;Division, Inc. 35 
(8) One member representing the North Carolina Hospital 36 
Association;Association. 37 
(9) One member representing the North Carolina Association of Local Health 38 
Directors;Directors. 39 
(10) One member who is a primary care physician licensed to practice medicine in 40 
North Carolina;North Carolina. 41 
(11) One member representing the American College of Surgeons;Surgeons. 42 
(12) One member representing the North Carolina Oncology Society;Society. 43 
(13) One member representing the Association of North Carolina Cancer 44 
Registrars;Registrars. 45 
(14) One member representing the Medical Directors of the North Carolina 46 
Association of Health Plans; andPlans. 47 
(15) Up to four additional members at large. 48 
Except for the Secretary, the members shall be appointed for staggered four-year terms and 49 
until their successors are appointed and qualify. The Governor may remove any member of the 50 
Committee from office in accordance with the provisions of G.S. 143B-13. Members may 51  General Assembly Of North Carolina 	Session 2025 
House Bill 576-Second Edition 	Page 13 
succeed themselves for one term and may be appointed again after being off the Committee for 1 
one term. 2 
…." 3 
SECTION 4.3.(b) G.S. 130A-213 reads as rewritten: 4 
"§ 130A-213.  Cancer Committee of the North Carolina Medical Society.Consultation with 5 
the Advisory Committee on Cancer Coordination and Control. 6 
In implementing this Part, the Department shall consult with the Cancer Committee of the 7 
North Carolina Medical Society. The Committee shall consist of at least one physician from each 8 
congressional district. Advisory Committee on Cancer Coordination and Control established by 9 
G.S. 130A-33.50. Any proposed rules or reports affecting the operation of the cancer control 10 
program shall be reviewed by the Committee for comment prior to adoption." 11 
 12 
AUTHORIZE LOCAL REGISTRARS AT LOCAL HEALTH DEPARTMENTS TO 13 
REMOVE OUTDATED REFERENCES TO PAPER FORMAT VITAL R ECORDS 14 
SECTION 4.4. G.S. 130A-97 reads as rewritten: 15 
"§ 130A-97.  Duties of local registrars. 16 
The local registrar shall:shall do all of the following: 17 
(1) Administer and enforce provisions of this Article and the rules, and 18 
immediately report any violation to the State Registrar;Registrar. 19 
(2) Furnish certificate forms and instructions supplied by the State Registrar to 20 
persons who require them;them. 21 
(3) Examine each certificate when submitted to determine if it has been completed 22 
in accordance with the provisions of this Article and the rules. If a certificate 23 
is incomplete or unsatisfactory, the responsible person shall be notified and 24 
required to furnish the necessary information. All birth and death certificates 25 
shall be typed or written legibly prepared in permanent black, blue-black, or 26 
blue ink;black ink. 27 
(4) Enter the date on which a certificate is received and sign Sign and date as local 28 
registrar;registrar using the registration method prescribed by the State 29 
Registrar. 30 
(5) Transmit Using the registration method prescribed by the State Registrar, 31 
transmit to the register of deeds of the county a copy of each certificate 32 
registered within seven days of after receipt of a birth or death certificate. The 33 
copy transmitted transmittal shall include the race of the father and mother if 34 
that information is contained on the State copy of in the State Record of the 35 
certificate of live birth. Copies transmitted may be on blanks furnished by the 36 
State Registrar or may be photocopies made in a manner approved by the 37 
register of deeds. The local registrar may also keep a copy of each certificate 38 
for no more than two years;years. 39 
(6) On the fifth day of each month or more often, if requested, send to the State 40 
Registrar all original certificates registered during the preceding month; 41 
andmonth. 42 
(7) Maintain records, make reports and perform other duties required by the State 43 
Registrar." 44 
 45 
ALIGN STATE LAW WITH UPDATED FEDERAL GUIDELINES CONCERNING THE 46 
COMMUNICATION OF MAMMOGRAPHIC INFORMATION TO PATIENTS 47 
SECTION 4.5. G.S. 130A-215.5 reads as rewritten: 48 
"§ 130A-215.5.  Communication of mammographic breast density information to patients. 49 
(a) All health care facilities that perform mammography examinations shall include in 50 
the summary of the mammography report, required by federal law to be provided to a patient, 51  General Assembly Of North Carolina 	Session 2025 
Page 14  House Bill 576-Second Edition 
information that identifies the patient's individual breast density classification based on the Breast 1 
Imaging Reporting and Data System established by the American College of Radiology. If the 2 
facility determines that a patient has heterogeneously or extremely dense breasts, the summary 3 
of the mammography report shall include the following notice: 4 
"Your mammogram indicates that you may have dense breast tissue. Dense breast tissue is 5 
relatively common and is found in more than forty percent (40%) of women. The presence of 6 
dense tissue may make it more difficult to detect abnormalities in the breast and may be 7 
associated with an increased risk of breast cancer. We are providing this information to raise your 8 
awareness of this important factor and to encourage you to talk with your physician about this 9 
and other breast cancer risk factors. Together, you can decide which screening options are right 10 
for you. A report of your results was sent to your physician.provide each patient with a summary 11 
of the mammography report in language understandable by a layperson that includes an 12 
assessment of the patient's breast density. 13 
(a1) Each health care facility that provides a mammography report to a patient following 14 
a mammography examination shall include in the report information about breast density based 15 
on the patient's mammogram that is consistent with the federal regulations issued by the United 16 
States Food and Drug Administration pursuant to the Mammography Quality Standards Act, 42 17 
U.S.C. § 263b, et seq., as from time to time amended. If a health care facility determines that a 18 
patient has heterogeneously or extremely dense breasts, the report provided to the patient shall 19 
communicate all of the following information: 20 
(1) Breast tissue can be either dense or not dense. 21 
(2) Dense breast tissue makes it harder to find breast cancer on a mammogram 22 
and also increases the risk of developing breast cancer. 23 
(3) In some people with dense breast tissue, other imaging tests in addition to a 24 
mammogram may help find cancers. 25 
(4) Patients with dense breast tissue should talk to their healthcare provider about 26 
breast density, risks for breast cancer, and their individual situation. 27 
(b) Patients Health care facilities may direct patients who receive diagnostic or screening 28 
mammograms may be directed to informative material about breast density. This informative 29 
material may include the American College of Radiology's most current brochure on the subject 30 
of breast density." 31 
 32 
EXTEND THE OPTION FOR NORTH CAROLINIANS TO DONATE A PORTION OF 33 
THEIR TAX REFUNDS TO THE BREAST AND CERVICAL CANCER CONTROL 34 
PROGRAM 35 
SECTION 4.6. G.S. 105-269.8 reads as rewritten: 36 
"§ 105-269.8.  Contribution by individual for early detection of breast and cervical cancer. 37 
(a) Contribution. – An individual entitled to a refund of income taxes under Part 2 of 38 
Article 4 of this Chapter may elect to contribute all or part of the refund to be used for early 39 
detection of breast and cervical cancer at the Cancer Prevention and Control Branch of the 40 
Division of Public Health of the Department of Health and Human Services. The Secretary shall 41 
provide appropriate language and space on the individual income tax form in which to make the 42 
election. The Secretary shall include in the income tax instructions an explanation that the 43 
contributions will be used for early detection of breast and cervical cancer only. The election 44 
becomes irrevocable upon filing the individual's income tax return for the taxable year. 45 
(b) Distribution. – The Secretary shall transmit the contributions made pursuant to this 46 
section to the State Treasurer to be distributed for early detection of breast and cervical cancer. 47 
The State Treasurer shall distribute the contributions to the Cancer Prevention and Control 48 
Branch of the Division of Public Health of the Department of Health and Human Services. Funds 49 
distributed pursuant to this section shall be used only for early detection of breast and cervical 50  General Assembly Of North Carolina 	Session 2025 
House Bill 576-Second Edition 	Page 15 
cancer and shall be used in accordance with North Carolina's Breast and Cervical Cancer Control 1 
Program's policies and procedures. 2 
(c) Sunset. – This section expires for taxable years beginning on or after January 1, 3 
2026.January 1, 2030." 4 
 5 
PART V. LAWS PERTAINING TO THE DIVISION OF SOCIAL SERVICES 6 
 7 
AUTHORIZE MAGISTRATES TO ACCEPT FOR FILING PETITIONS FOR ADULT 8 
PROTECTIVE SERVICES E MERGENCY ORDERS AFTER BUSINESS HOURS AND 9 
TO HEAR EX PARTE MOTIONS REGARDING THESE PETITIONS WHEN A 10 
DISTRICT COURT JUDGE IS UNAVAILABLE 11 
SECTION 5.1. Article 6 of Chapter 108A of the General Statutes is amended by 12 
adding the following new sections to read: 13 
"§ 108A-106.1.  Immediate need for petition for emergency services when clerk's office is 14 
closed. 15 
(a) When the office of the clerk is closed, a magistrate shall accept for filing a petition 16 
for an order authorizing the provision of emergency services to a disabled adult and shall note 17 
the date of the filing. 18 
(b) The authority of the magistrate under this section is limited to emergency situations 19 
in which a petition is filed under G.S. 108A-106 seeking an order ex parte for the provision of 20 
emergency services to a disabled adult. Any magistrate who accepts a petition for filing under 21 
this section shall deliver the petition to the clerk's office for processing as soon as that office is 22 
open for business. 23 
"§ 108A-106.2.  Ex parte emergency orders by authorized magistrate. 24 
(a) The chief district court judge may authorize one or more magistrates to hear ex parte 25 
motions for the provision of emergency services to disabled adults and issue a show-cause notice 26 
in the order as required by G.S. 108A-106(d). A magistrate may proceed with hearing a motion 27 
ex parte and issuing a show-cause notice under this subsection only if, prior to the hearing, the 28 
magistrate determines that at the time the party is seeking emergency services ex parte the district 29 
court is not in session and a district court judge is not and will not be available to hear the motion. 30 
(b) An authorized magistrate that issues an ex parte order under this section shall deliver 31 
the signed order to the clerk's office for processing as soon as that office is open for business. 32 
(c) All authorizations for ex parte orders for emergency services may be made by 33 
telephone when other means of communication are impractical. A copy of the petition for an 34 
order authorizing the provision of emergency services shall be provided to the district court judge 35 
or the authorized magistrate by any appropriate method, including hand delivery, facsimile, or 36 
electronic means. All written orders pursuant to telephonic communication shall bear the name 37 
and the title of the director, the name and the title of the district court judge or authorized 38 
magistrate issuing the ex parte order, the hour and date of the telephonic authorization, and the 39 
signature and the title of the clerk or magistrate receiving the authorization and entering the order 40 
and who accepted the petition for filing." 41 
 42 
ALIGN STATE LAW WITH THE FEDERAL PROHIBITION ON CONDITIONAL 43 
EMPLOYMENT OF APPLICANTS OF CHILD CARE INSTITUTIONS PRIOR TO 44 
OBTAINING CRIMINAL HISTORY RECORD CHECK RESULTS 45 
SECTION 5.2. G.S. 108A-150(g) reads as rewritten: 46 
"(g) Conditional Employment. – A child care institution may shall not employ an applicant 47 
conditionally prior to obtaining the results of a criminal history record check regarding the 48 
applicant if both of the following requirements are met:applicant. 49 
(1) The child care institution shall not employ an applicant prior to obtaining the 50 
applicant's consent for a criminal history record check as required in 51  General Assembly Of North Carolina 	Session 2025 
Page 16  House Bill 576-Second Edition 
subsection (b) of this section or the completed fingerprint cards as required in 1 
G.S. 143B-1209.53. 2 
(2) The child care institution shall submit the request for a criminal history record 3 
check not later than five business days after the individual begins conditional 4 
employment." 5 
 6 
ALIGN DISSEMINATION OF BACKGROUND CHECK INF	ORMATION FOR 7 
PROSPECTIVE ADOPTIVE AND FOSTER CARE PARENTS WITH FEDERAL 8 
POLICY, LAW, AND STANDARDS 9 
SECTION 5.3.(a) G.S. 48-3-309(e) reads as rewritten: 10 
"(e) The Department shall notify the prospective adoptive parent's supervising county 11 
department of social services of the results of the criminal history check. In accordance with the 12 
federal and State law regulating the dissemination of the contents of the criminal history file, the 13 
Department shall not release or disclose any portion of an individual's criminal history to the 14 
prospective adoptive parent or any other individual required to be checked. the Department may 15 
provide the prospective adoptive parent or any other individual required to submit to a criminal 16 
history record check pursuant to subsection (a) of this section a copy of that applicant's criminal 17 
history information for the purpose of reviewing or challenging the accuracy of the criminal 18 
history. The Department, however, Department shall ensure that the prospective adoptive parent 19 
or any other individual required to be checked pursuant to subsection (a) of this section is notified 20 
of the individual's right to review the criminal history information, the procedure for completing 21 
or challenging the accuracy of the criminal history, and the prospective adoptive parent's right to 22 
contest the preplacement assessment of the county department of social services. Public child 23 
placing agencies, including supervising county departments of social services, are required to 24 
have an employee on staff that is trained and certified to receive criminal history record 25 
information to the extent required by federal policy, law, and standards. 26 
A prospective adoptive parent who disagrees with the preplacement assessment of the county 27 
department of social services may request a review of the assessment pursuant to 28 
G.S. 48-3-308(a)." 29 
SECTION 5.3.(b) G.S. 131D-10.3A(f) reads as rewritten: 30 
"(f) The Department shall notify in writing the foster parent and any person applying to 31 
be licensed as a foster parent, and that individual's supervising agency parent of the determination 32 
by the Department of whether the foster parent or prospective foster parent is qualified to provide 33 
foster care based on the criminal history of all individuals required to be checked. In accordance 34 
with the law regulating the dissemination of the contents of the criminal history file furnished by 35 
the Federal Bureau of Investigation, the Department shall not release nor disclose any portion of 36 
an individual's criminal history to the foster parent or any other individual required to be checked. 37 
checked pursuant to subsection (a) of this section. The Department may provide the foster parent, 38 
prospective foster parent, or any other individual required to be checked pursuant to subsection 39 
(a) of this section with a copy of that applicant's criminal history information for the purpose of 40 
reviewing or challenging the accuracy of the criminal history. The Department shall also notify 41 
the each individual required to be checked pursuant to subsection (a) of this section of the 42 
individual's right to review the criminal history information, the procedure for completing or 43 
challenging the accuracy of the criminal history, and the foster parent's or prospective foster 44 
parent's right to contest the Department's determination. Public child placing agencies, including 45 
supervising county departments of social services, are required to have an employee on staff that 46 
is trained and certified to receive criminal history record information to the extent required by 47 
federal policy, law and standards. 48 
A foster parent or prospective foster parent who disagrees with the Department's decision 49 
may request a hearing pursuant to Chapter 150B of the General Statutes, the Administrative 50 
Procedure Act." 51  General Assembly Of North Carolina 	Session 2025 
House Bill 576-Second Edition 	Page 17 
 1 
PART VI. LAWS PERTAI NING TO THE DIVISION OF STATE-OPERATED 2 
HEALTHCARE FACILITIE S 3 
 4 
SUPPORT IMPLEMENTATION OF CAPACITY RESTORATION PILOT PROGRAMS 5 
SECTION 6.1. Part 6 of Article 5 of Chapter 122C of the General Statutes is 6 
amended by adding a new section to read: 7 
"§ 122C-256.  Capacity restoration pilot programs. 8 
(a) The following definitions apply in this section: 9 
(1) CBCRP. – Community-based capacity restoration program. 10 
(2) DCCRP. – Detention center capacity restoration program. 11 
(b) Community-Based Capacity Restoration Program. – The Department or an 12 
LME/MCO may contract for three or more CBCRPs. CBCRPs may be county-based or 13 
regionally based. If regionally based, a CBCRP shall align with the State-operated psychiatric 14 
hospital within closest proximity. The Department may consult with one or more LME/MCOs 15 
for the purposes of contracting for CBCRPs under this subsection. 16 
(c) Detention Center Capacity Restoration Program. – The Department or an LME/MCO, 17 
in consultation and with the consent of relevant sheriffs, may contract for up to three DCCRPs. 18 
DCCRPs may be county-based or regionally based. All county sheriffs choosing to participate in 19 
a regional program must enter into an operational agreement with the sheriff hosting the regional 20 
program prior to referring defendants to the program. A regionally based DCCRP shall align with 21 
the State-operated psychiatric hospital within closest proximity. The Department may consult 22 
with one or more LME/MCOs for the purposes of contracting for DCCRPs under this subsection. 23 
(d) Judicial Discretion. – A court may order capacity restoration to be completed at a 24 
CBCRP or DCCRP as an alternative to a State-operated psychiatric hospital for individuals 25 
recommended for participation in CBCRP or DCCRP by a forensic evaluator." 26 
 27 
PART VII. EFFECTIVE DATE 28 
SECTION 7.1. Except as otherwise provided, this act is effective when it becomes 29 
law. 30