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North Carolina House Bill H800

North Carolina 2025-2026 Regular Session

North Carolina House Bill H800 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-H 1
4-HOUSE BILL 800
3+H D
4+HOUSE BILL DRH10372-LUa-95A
5+
56
67
78 Short Title: Review Effectiveness & Delivery of Child Care. (Public)
8-Sponsors: Representatives Willis, Paré, Campbell, and Loftis (Primary Sponsors).
9-For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10-Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
11-April 8, 2025
12-*H800 -v-1*
9+Sponsors: Representative Willis.
10+Referred to:
11+
12+*DRH10372 -LUa-95A*
1313 A BILL TO BE ENTITLED 1
1414 AN ACT TO DIRECT THE DIVISION OF CHILD DEVELOPMENT AND EARLY 2
1515 EDUCATION WITHIN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES 3
1616 TO STUDY AND REPORT ON THE EFFECTIVENESS AND DELIVERY OF VARIOUS 4
1717 CHILD CARE INITIATIVES; TO APPROPRIATE FUNDS TO ESTABLISH A PILOT 5
1818 PROGRAM THAT WOULD ALLOW A CHILD CARE TEACHER EMPLOYED FULL 6
1919 TIME BY A LICENSED CHILD CARE PROGRAM IN THE STATE TO BE DEEMED 7
2020 AUTOMATICALLY ELIGIBLE FOR CHILD CARE SUBSIDY FOR THE TEACHER 'S 8
2121 PRESCHOOL-AGE CHILDREN; AND TO PROVIDE CERTAIN DIRECTIVES 9
2222 REGARDING CHILD CARE IN THIS STATE . 10
2323 The General Assembly of North Carolina enacts: 11
2424 SECTION 1.(a) The Department of Health and Human Services, Division of Child 12
2525 Development and Early Education (Division), shall study the effectiveness and delivery model 13
2626 of the North Carolina Prekindergarten (NC Pre-K) program and the North Carolina Partnership 14
2727 for Children (Smart Start) program, as well as review various other child care initiatives as 15
2828 provided in this section. In conducting the study, the Division shall do the following: 16
2929 (1) Review the complete allocation of funds for both NC Pre-K and Smart Start. 17
3030 (2) Review other early childhood models to determine whether those other 18
3131 models could better maximize funds available for child care needs in this State 19
3232 and maximize the number of children placed in licensed child care. 20
3333 (3) Review the current rules and guidelines regarding the quality rating 21
3434 improvement system (QRIS) to determine what, if any, temporary changes 22
3535 need to be considered that may provide relief to child care providers and those 23
3636 providers' ability to offer child care for as many children as permitted by law. 24
3737 SECTION 1.(b) The Division of Child Development and Early Education (Division) 25
3838 shall conduct a detailed analysis of the North Carolina Prekindergarten (NC Pre-K) program to 26
3939 ensure every funded slot can be filled. In conducting the analysis required by this section, if the 27
4040 Division determines there are open NC Pre-K slots for any reason, the Division shall reassign 28
4141 those slots for the remainder of the school year to another county that may have a waitlist for the 29
4242 NC Pre-K program. If a county has available slots but no additional teachers or classrooms to 30
4343 open, the Division may choose to increase the maximum class size to 22 students. 31
4444 SECTION 1.(c) The Division of Child Development and Early Education (Division) 32
4545 shall study the current child care subsidy market rates and determine a recommended minimum 33
46-amount to establish a reimbursement rate floor for subsidized child care. 34 General Assembly Of North Carolina Session 2025
47-Page 2 House Bill 800-First Edition
48-SECTION 1.(d) The Division of Child Development and Early Education (Division) 1
49-shall report its findings and recommendations, including any legislative proposals, regarding the 2
50-studies and analysis required by this section to the Joint Legislative Oversight Committee on 3
51-Health and Human Services and the Fiscal Research Division on or before April 30, 2026. 4
52-SECTION 2.(a) There is appropriated from the General Fund to the Department of 5
53-Health and Human Services, Division of Child Development and Early Education (Division), the 6
54-sum of ten million dollars ($10,000,000) in nonrecurring funds for each year of the 2025-2027 7
55-fiscal biennium to establish a pilot program that provides automatic eligibility for child care 8
56-subsidy for the preschool-age children, 8 weeks to 5 years of age, of all child care teachers 9
57-employed full time by a licensed child care program in this State. A child care teacher deemed 10
58-automatically eligible for subsidy pursuant to this section shall have completed, be in the process 11
59-of completing, or enroll at the first available semester in an Introduction to Early Childhood class 12
60-at any local community college in this State. A child care teacher who does not already possess 13
61-an Early Childhood Education Infant/Toddler Certificate or Child Development Certificate shall 14
62-commit to remaining in college and completing either certificate within 18 months. Any 15
63-coursework taken pursuant to this section shall be paid for by the T.E.A.C.H. Early Childhood 16
64-North Carolina Scholarship Program, with no cost to the teacher. For purposes of this section, 17
65-"full time" means a minimum of 35 hours per week. 18
66-SECTION 2.(b) The Division of Child Development and Early Education (Division) 19
67-shall implement the pilot program within 120 days from the effective date of this section. The 20
68-Division shall select counties from across the State to participate in the pilot program. In selecting 21
69-counties, the Division shall focus on counties with the highest percentage of child care capacity 22
70-lost during the past 10 years. In determining the applicable rate for a child care teacher eligible 23
71-for subsidy under this section, the Division shall use the rate available in the county where the 24
72-teacher resides. Child care centers shall accept the current market subsidy rates and may not 25
73-charge copayment fees or any other fees in addition to the subsidy amount provided pursuant to 26
74-this section. County agencies shall use existing child care subsidy funding first before applying 27
75-for additional funding. 28
76-SECTION 2.(c) The Division of Child Development and Early Education (Division) 29
77-shall submit an initial report to the Joint Legislative Oversight Committee on Health and Human 30
78-Services and the Fiscal Research Division of the General Assembly by March 31, 2026, of the 31
79-number of child care teachers participating in the pilot program, by county. Thereafter, the 32
80-Division shall submit a quarterly report on the number of participants in the program, with a 33
81-detailed report by December 31 of each year the pilot program is in effect. The quarterly and 34
82-annual detailed reports shall include, at a minimum, the following: 35
83-(1) The number of teachers in the pilot program who were already teaching and 36
84-became automatically eligible for child care subsidy on the effective date of 37
85-this act. 38
86-(2) The number of new teachers added to the pilot program, by county, on a 39
87-monthly basis. 40
88-(3) The retention of every teacher in the pilot program. 41
89-SECTION 2.(d) This section becomes effective July 1, 2025. 42
90-SECTION 3. Funds provided to the Division of Child Development and Early 43
91-Education for the 2024-2025 fiscal year for the Pilot Program to Increase the Provision of 44
92-In-Home Child Care in accordance with Section 9D.8 of S.L. 2023-134 and the Tri-Share Child 45
93-Care Pilot Program in accordance with Section 9D.9 of S.L. 2023-134 shall be subject to review 46
94-and approval by the General Assembly before those funds may be further expended for either of 47
95-those pilot programs. 48
96-SECTION 4. Any county program that provides supplemental, local funds to 49
97-families for subsidized child care shall allow those families to select a four- or five-star rated 50
98-child care center of their choice rather than to be assigned a specific school. 51 General Assembly Of North Carolina Session 2025
99-House Bill 800-First Edition Page 3
100-SECTION 5. The Department of Health and Human Services shall collaborate with 1
101-the Department of Insurance to review and make suggestions to the General Assembly on how 2
102-to lower the costs of all of the various types of insurance required for the provision of child care 3
103-in this State. 4
104-SECTION 6. Except as otherwise provided, this act is effective when it becomes 5
105-law. 6
46+amount to establish a reimbursement rate floor for subsidized child care. 34
47+SECTION 1.(d) The Division of Child Development and Early Education (Division) 35
48+shall report its findings and recommendations, including any legislative proposals, regarding the 36
49+H.B. 800
50+Apr 7, 2025
51+HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
52+Page 2 DRH10372-LUa-95A
53+studies and analysis required by this section to the Joint Legislative Oversight Committee on 1
54+Health and Human Services and the Fiscal Research Division on or before April 30, 2026. 2
55+SECTION 2.(a) There is appropriated from the General Fund to the Department of 3
56+Health and Human Services, Division of Child Development and Early Education (Division), the 4
57+sum of ten million dollars ($10,000,000) in nonrecurring funds for each year of the 2025-2027 5
58+fiscal biennium to establish a pilot program that provides automatic eligibility for child care 6
59+subsidy for the preschool-age children, 8 weeks to 5 years of age, of all child care teachers 7
60+employed full time by a licensed child care program in this State. A child care teacher deemed 8
61+automatically eligible for subsidy pursuant to this section shall have completed, be in the process 9
62+of completing, or enroll at the first available semester in an Introduction to Early Childhood class 10
63+at any local community college in this State. A child care teacher who does not already possess 11
64+an Early Childhood Education Infant/Toddler Certificate or Child Development Certificate shall 12
65+commit to remaining in college and completing either certificate within 18 months. Any 13
66+coursework taken pursuant to this section shall be paid for by the T.E.A.C.H. Early Childhood 14
67+North Carolina Scholarship Program, with no cost to the teacher. For purposes of this section, 15
68+"full time" means a minimum of 35 hours per week. 16
69+SECTION 2.(b) The Division of Child Development and Early Education (Division) 17
70+shall implement the pilot program within 120 days from the effective date of this section. The 18
71+Division shall select counties from across the State to participate in the pilot program. In selecting 19
72+counties, the Division shall focus on counties with the highest percentage of child care capacity 20
73+lost during the past 10 years. In determining the applicable rate for a child care teacher eligible 21
74+for subsidy under this section, the Division shall use the rate available in the county where the 22
75+teacher resides. Child care centers shall accept the current market subsidy rates and may not 23
76+charge copayment fees or any other fees in addition to the subsidy amount provided pursuant to 24
77+this section. County agencies shall use existing child care subsidy funding first before applying 25
78+for additional funding. 26
79+SECTION 2.(c) The Division of Child Development and Early Education (Division) 27
80+shall submit an initial report to the Joint Legislative Oversight Committee on Health and Human 28
81+Services and the Fiscal Research Division of the General Assembly by March 31, 2026, of the 29
82+number of child care teachers participating in the pilot program, by county. Thereafter, the 30
83+Division shall submit a quarterly report on the number of participants in the program, with a 31
84+detailed report by December 31 of each year the pilot program is in effect. The quarterly and 32
85+annual detailed reports shall include, at a minimum, the following: 33
86+(1) The number of teachers in the pilot program who were already teaching and 34
87+became automatically eligible for child care subsidy on the effective date of 35
88+this act. 36
89+(2) The number of new teachers added to the pilot program, by county, on a 37
90+monthly basis. 38
91+(3) The retention of every teacher in the pilot program. 39
92+SECTION 2.(d) This section becomes effective July 1, 2025. 40
93+SECTION 3. Funds provided to the Division of Child Development and Early 41
94+Education for the 2024-2025 fiscal year for the Pilot Program to Increase the Provision of 42
95+In-Home Child Care in accordance with Section 9D.8 of S.L. 2023-134 and the Tri-Share Child 43
96+Care Pilot Program in accordance with Section 9D.9 of S.L. 2023-134 shall be subject to review 44
97+and approval by the General Assembly before those funds may be further expended for either of 45
98+those pilot programs. 46
99+SECTION 4. Any county program that provides supplemental, local funds to 47
100+families for subsidized child care shall allow those families to select a four- or five-star rated 48
101+child care center of their choice rather than to be assigned a specific school. 49
102+SECTION 5. The Department of Health and Human Services shall collaborate with 50
103+the Department of Insurance to review and make suggestions to the General Assembly on how 51 General Assembly Of North Carolina Session 2025
104+DRH10372-LUa-95A Page 3
105+to lower the costs of all of the various types of insurance required for the provision of child care 1
106+in this State. 2
107+SECTION 6. Except as otherwise provided, this act is effective when it becomes 3
108+law. 4