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North Carolina House Bill H861

North Carolina 2025-2026 Regular Session

North Carolina House Bill H861 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-H 1
4-HOUSE BILL 861
3+H D
4+HOUSE BILL DRH40438-MGa-15B
5+
56
67
78 Short Title: Taxpayer Accountability/Pregnancy Centers. (Public)
8-Sponsors: Representatives Cervania, Crawford, and Greenfield (Primary Sponsors).
9-For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10-Referred to: Rules, Calendar, and Operations of the House
11-April 10, 2025
12-*H861 -v-1*
9+Sponsors: Representative Cervania.
10+Referred to:
11+
12+*DRH40438 -MGa-15B*
1313 A BILL TO BE ENTITLED 1
1414 AN ACT ENHANCING TAXPAYER ACCOUNTABILITY BY REQUIRING THE 2
1515 ESTABLISHMENT OF A COMPETITIVE GRANT PROCESS , PERFORMANCE 3
1616 STANDARDS, AND ADDITIONAL REPORTING REQUIREMENTS FOR 4
1717 PREGNANCY CENTERS. 5
1818 The General Assembly of North Carolina enacts: 6
1919 SECTION 1. Funds appropriated from the General Fund to the Department of Health 7
2020 and Human Services, Division of Public Health, for each year of the 2025-2027 fiscal biennium 8
2121 for Carolina Pregnancy Care Fellowship (CPCF), a nonprofit corporation, are subject to the 9
2222 following requirements: 10
2323 (1) The CPCF shall establish a competitive grant process for awarding the grants 11
2424 authorized by subdivisions (a)(1) through (a)(3) of Section 9H.11 of S.L. 12
2525 2023-134. The plan for administering the competitive grant process shall 13
2626 include all of the following: 14
2727 a. A request for application (RFA) process to allow pregnancy centers 15
2828 located in this State to apply for and receive a grant authorized by this 16
2929 section on a competitive basis. The RFA application shall include at 17
3030 least all of the following components: 18
3131 1. An explanation of the applicant's operations and staff, 19
3232 including all of the following: 20
3333 I. The hours of operation. 21
3434 II. The full name, official position, credentials, specialties, 22
3535 and salaries of all staff and volunteers. 23
3636 III. Required qualifications, trainings, and credentials for 24
3737 all employees, volunteers, contractors, and consultants. 25
3838 IV. An explanation of the application process for 26
3939 employees, volunteers, and consultants, including 27
4040 whether the application requires a disclosure about 28
4141 religious beliefs and if any answer or failure to answer 29
4242 will disqualify an applicant. 30
4343 V. What vendors and materials are used for training 31
4444 employees, consultants, and volunteers. 32
4545 VI. Whether licensed health care providers are required to 33
46-be on-site during operating hours and, if so, an 34 General Assembly Of North Carolina Session 2025
47-Page 2 House Bill 861-First Edition
48-explanation of the requirement and what arrangements 1
49-are made if the requirement cannot be met. 2
50-VII. Whether any employees, contractors, or volunteers are 3
51-unlicensed health care providers. 4
52-VIII. Whether ultrasounds are performed on-site and, if so, 5
53-the qualifications of those performing and interpreting 6
54-the ultrasounds. 7
55-IX. Whether testing for sexually transmitted diseases is 8
56-performed on-site and, if so, the names and 9
57-qualifications of those performing such testing. 10
58-2. The specific activities, services, and programs provided by the 11
59-applicant during any part of the year. 12
60-3. A description of all medical equipment, the purposes of the 13
61-equipment, and funding sources for all of the equipment. 14
62-4. An explanation of the applicant's best practices with respect to 15
63-the use of medical equipment and the provision of any medical 16
64-testing, medical procedures, or counseling services. 17
65-5. A description of the applicant's advertising and marketing 18
66-practices. 19
67-b. A plan to evaluate the effectiveness, including measurable impact or 20
68-outcomes, of the activities, services, and programs for which the grant 21
69-funds are being requested. 22
70-c. A plan to monitor compliance with applicable law and the grant 23
71-agreement, with respect to the grantee's expenditure of grant funds. 24
72-d. A plan to detect fraud and abuse by grantees. 25
73-(2) No later than July 1 of each year, beginning July 1, 2026, the CPCF shall 26
74-announce the recipients of the competitive grant awards and allocate funds to 27
75-the grantees for the respective grant period pursuant to the amounts designated 28
76-under subsection (a) of this section. After awards have been granted, the CPCF 29
77-shall submit a report to the Department of Health and Human Services, the 30
78-Joint Legislative Commission on Governmental Operations, the Joint 31
79-Legislative Oversight Committee on Health and Human Services, and the 32
80-Fiscal Research Division on the grant awards that includes at least all of the 33
81-following information: 34
82-a. The identity and a brief description of each grantee and each activity, 35
83-service, and program offered by the grantee. 36
84-b. The amount of funding awarded to each grantee. 37
85-c. The number of persons served by each grantee, broken down by 38
86-activity, service, and program. 39
87-d. The number of persons served by the Circle of Care Program. 40
88-e. A copy of each grantee's RFA application. 41
89-(3) The CPCF may not use more than ten percent (10%) of the total amount of 42
90-funds allocated by this section for the 2023-2025 fiscal biennium and not more 43
91-than fifteen percent (15%) of the total amount of funds allocated by this 44
92-section for subsequent fiscal years for administrative purposes. 45
93-(4) Funds allocated to CPCF shall be used for nonsectarian, nonreligious purposes 46
94-only. 47
95-(5) Annually on July 1, beginning July 1, 2026, the CPCF shall report to the 48
96-Department of Health and Human Services, the Joint Legislative Commission 49
97-on Governmental Operations, the Joint Legislative Oversight Committee on 50
98-Health and Human Services, and the Fiscal Research Division on the use of 51 General Assembly Of North Carolina Session 2025
99-House Bill 861-First Edition Page 3
100-funds allocated under this section. The report shall include at least all of the 1
101-following information for the preceding fiscal year: 2
102-a. A description of any monitoring activities undertaken by the CPCF to 3
103-ensure that grant funds awarded under the competitive grant process 4
104-authorized by this section are being spent for the purposes for which 5
105-they were requested. 6
106-b. A description of any technical assistance provided by the CPCF to 7
107-grant applicants or grantees. 8
108-c. A detailed breakdown of the funds expended by the CPCF for 9
109-administrative purposes related to the competitive grant process 10
110-authorized by this section. 11
111-(6) Annually on July 1, beginning July 1, 2026, each pregnancy center awarded 12
112-grant funds pursuant to the competitive grant process authorized by this 13
113-section shall report to the Department of Health and Human Services, the Joint 14
114-Legislative Commission on Governmental Operations, the Joint Legislative 15
115-Oversight Committee on Health and Human Services, and the Fiscal Research 16
116-Division on its use of the grant funds. The report shall include at least all of 17
117-the following information for the preceding fiscal year: 18
118-a. A report of its activities and services, broken down by funding source, 19
119-that includes the number of clients served by each pregnancy center 20
120-by county of residence and the following age categories: 21
121-1. Less than 16 years old. 22
122-2. 16 years old through 20 years old. 23
123-3. 21 years old through 25 years old. 24
124-4. 26 years old through 30 years old. 25
125-5. 31 years old through 35 years old. 26
126-6. 36 years old through 40 years old. 27
127-7. 41 years old through 45 years old. 28
128-8. 46 years old and older. 29
129-b. The number of visits by client for each of the previously defined age 30
130-categories, broken down by type of visit. 31
131-c. The number of services, supports, and referrals provided to clients for 32
132-each of the previously defined age categories, broken down by type of 33
133-service, support, or referral provided, including pregnancy counseling, 34
134-pregnancy testing, ultrasounds, and testing for sexually transmitted 35
135-diseases. 36
136-d. The number of service requests received by the pregnancy center. 37
137-e. The race and ethnicity data associated with clients receiving services. 38
138-f. The number of clients that fall under each of the following income 39
139-ranges: 40
140-1. Less than $20,000. 41
141-2. $20,000 to $34,999. 42
142-3. $35,000 to $49,999. 43
143-4. $50,000 to $74,999. 44
144-5. $75,000 to $99,999. 45
145-6. Over $100,000. 46
146-g. The total number of unduplicated clients served by the pregnancy 47
147-center and the total number of unduplicated new clients served during 48
148-the fiscal year. 49
149-SECTION 2. Chapter 131E of the General Statutes is amended by adding a new 50
150-section to read: 51 General Assembly Of North Carolina Session 2025
151-Page 4 House Bill 861-First Edition
152-"§ 131E-269.5. Pregnancy centers; performance standards; recovery of State funds for 1
153-noncompliance. 2
154-(a) As used in this section, the term "pregnancy center" means any nonprofit organization 3
155-other than a hospital, ambulatory surgical facility, or clinic that performs abortions, that holds 4
156-itself out as a facility that provides care for pregnant women, including pregnancy counseling 5
157-services, pregnancy testing, and other nonmedical pregnancy services. 6
158-(b) The Department shall adopt rules establishing performance standards for pregnancy 7
159-centers operating in this State. The rules shall, at a minimum, establish a monitoring mechanism 8
160-and reporting requirements to facilitate the Department periodically assessing whether pregnancy 9
161-centers are adhering to the established performance standards. The reporting requirements shall, 10
162-at a minimum, require pregnancy centers to annually report to the Department at least all of the 11
163-following information for the preceding five-year period: 12
164-(1) All contracts and agreements entered into with the State of North Carolina or 13
165-Carolina Pregnancy Care Fellowship (CPCF), a nonprofit organization, during 14
166-the preceding five-year period. 15
167-(2) A list of all monetary transactions between the pregnancy center and State of 16
168-North Carolina or CPCF. 17
169-(3) Itemized annual expenditures for all of the following: 18
170-a. Individual employees, with a breakdown of the number of full-time 19
171-and part-time staff, the number of hours worked by each full-time and 20
172-part-time staff member, and the salaries and wages paid to each staff 21
173-member. 22
174-b. Administrative supplies and materials, with an explanation of the 23
175-purposes for these items. 24
176-c. All supplies and materials provided to individuals served by the 25
177-pregnancy center, including: 26
178-1. Pregnancy tests. 27
179-2. Diapers. 28
180-3. Medicines. 29
181-4. Baby food. 30
182-5. Baby formula. 31
183-d. Marketing and promotional materials, including all of the following: 32
184-1. Flyers. 33
185-2. Print advertisements. 34
186-3. Broadcast advertisements. 35
187-4. Digital and social media advertisements. 36
188-5. Promotions for fundraisers. 37
189-e. Educational materials for clients or patients, including pamphlets and 38
190-audiovisual seminars. 39
191-f. Travel expenses. 40
192-g. Medical equipment, including ultrasound machines. 41
193-h. Events sponsored by the pregnancy center. 42
194-i. Medical training and medical equipment training offered by the 43
195-pregnancy center. 44
196-j. Contracted services, including staffing services, event services, 45
197-information technology services, and cleaning services. 46
198-k. Rent or mortgage and utilities. 47
199-(4) Documentation of applications for employment and applications for 48
200-volunteers. 49
201-(5) Copies of Internal Revenue Service Form 990. 50 General Assembly Of North Carolina Session 2025
202-House Bill 861-First Edition Page 5
203-(c) The Department shall take appropriate administrative action to recover any amount 1
204-of grant funds or State appropriations disbursed to a pregnancy center for any fiscal year in which 2
205-the Department determines that the pregnancy center is out of compliance with the performance 3
206-standards adopted under this section. A pregnancy center aggrieved by a final determination of 4
207-the Department pursuant to this subsection may appeal the decision as provided under Article 3 5
208-of Chapter 150B of the General Statutes." 6
209-SECTION 3. This act becomes effective July 1, 2025. 7
46+be on-site during operating hours and, if so, an 34
47+explanation of the requirement and what arrangements 35
48+are made if the requirement cannot be met. 36
49+H.B. 861
50+Apr 9, 2025
51+HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
52+Page 2 DRH40438-MGa-15B
53+VII. Whether any employees, contractors, or volunteers are 1
54+unlicensed health care providers. 2
55+VIII. Whether ultrasounds are performed on-site and, if so, 3
56+the qualifications of those performing and interpreting 4
57+the ultrasounds. 5
58+IX. Whether testing for sexually transmitted diseases is 6
59+performed on-site and, if so, the names and 7
60+qualifications of those performing such testing. 8
61+2. The specific activities, services, and programs provided by the 9
62+applicant during any part of the year. 10
63+3. A description of all medical equipment, the purposes of the 11
64+equipment, and funding sources for all of the equipment. 12
65+4. An explanation of the applicant's best practices with respect to 13
66+the use of medical equipment and the provision of any medical 14
67+testing, medical procedures, or counseling services. 15
68+5. A description of the applicant's advertising and marketing 16
69+practices. 17
70+b. A plan to evaluate the effectiveness, including measurable impact or 18
71+outcomes, of the activities, services, and programs for which the grant 19
72+funds are being requested. 20
73+c. A plan to monitor compliance with applicable law and the grant 21
74+agreement, with respect to the grantee's expenditure of grant funds. 22
75+d. A plan to detect fraud and abuse by grantees. 23
76+(2) No later than July 1 of each year, beginning July 1, 2026, the CPCF shall 24
77+announce the recipients of the competitive grant awards and allocate funds to 25
78+the grantees for the respective grant period pursuant to the amounts designated 26
79+under subsection (a) of this section. After awards have been granted, the CPCF 27
80+shall submit a report to the Department of Health and Human Services, the 28
81+Joint Legislative Commission on Governmental Operations, the Joint 29
82+Legislative Oversight Committee on Health and Human Services, and the 30
83+Fiscal Research Division on the grant awards that includes at least all of the 31
84+following information: 32
85+a. The identity and a brief description of each grantee and each activity, 33
86+service, and program offered by the grantee. 34
87+b. The amount of funding awarded to each grantee. 35
88+c. The number of persons served by each grantee, broken down by 36
89+activity, service, and program. 37
90+d. The number of persons served by the Circle of Care Program. 38
91+e. A copy of each grantee's RFA application. 39
92+(3) The CPCF may not use more than ten percent (10%) of the total amount of 40
93+funds allocated by this section for the 2023-2025 fiscal biennium and not more 41
94+than fifteen percent (15%) of the total amount of funds allocated by this 42
95+section for subsequent fiscal years for administrative purposes. 43
96+(4) Funds allocated to CPCF shall be used for nonsectarian, nonreligious purposes 44
97+only. 45
98+(5) Annually on July 1, beginning July 1, 2026, the CPCF shall report to the 46
99+Department of Health and Human Services, the Joint Legislative Commission 47
100+on Governmental Operations, the Joint Legislative Oversight Committee on 48
101+Health and Human Services, and the Fiscal Research Division on the use of 49
102+funds allocated under this section. The report shall include at least all of the 50
103+following information for the preceding fiscal year: 51 General Assembly Of North Carolina Session 2025
104+DRH40438-MGa-15B Page 3
105+a. A description of any monitoring activities undertaken by the CPCF to 1
106+ensure that grant funds awarded under the competitive grant process 2
107+authorized by this section are being spent for the purposes for which 3
108+they were requested. 4
109+b. A description of any technical assistance provided by the CPCF to 5
110+grant applicants or grantees. 6
111+c. A detailed breakdown of the funds expended by the CPCF for 7
112+administrative purposes related to the competitive grant process 8
113+authorized by this section. 9
114+(6) Annually on July 1, beginning July 1, 2026, each pregnancy center awarded 10
115+grant funds pursuant to the competitive grant process authorized by this 11
116+section shall report to the Department of Health and Human Services, the Joint 12
117+Legislative Commission on Governmental Operations, the Joint Legislative 13
118+Oversight Committee on Health and Human Services, and the Fiscal Research 14
119+Division on its use of the grant funds. The report shall include at least all of 15
120+the following information for the preceding fiscal year: 16
121+a. A report of its activities and services, broken down by funding source, 17
122+that includes the number of clients served by each pregnancy center 18
123+by county of residence and the following age categories: 19
124+1. Less than 16 years old. 20
125+2. 16 years old through 20 years old. 21
126+3. 21 years old through 25 years old. 22
127+4. 26 years old through 30 years old. 23
128+5. 31 years old through 35 years old. 24
129+6. 36 years old through 40 years old. 25
130+7. 41 years old through 45 years old. 26
131+8. 46 years old and older. 27
132+b. The number of visits by client for each of the previously defined age 28
133+categories, broken down by type of visit. 29
134+c. The number of services, supports, and referrals provided to clients for 30
135+each of the previously defined age categories, broken down by type of 31
136+service, support, or referral provided, including pregnancy counseling, 32
137+pregnancy testing, ultrasounds, and testing for sexually transmitted 33
138+diseases. 34
139+d. The number of service requests received by the pregnancy center. 35
140+e. The race and ethnicity data associated with clients receiving services. 36
141+f. The number of clients that fall under each of the following income 37
142+ranges: 38
143+1. Less than $20,000. 39
144+2. $20,000 to $34,999. 40
145+3. $35,000 to $49,999. 41
146+4. $50,000 to $74,999. 42
147+5. $75,000 to $99,999. 43
148+6. Over $100,000. 44
149+g. The total number of unduplicated clients served by the pregnancy 45
150+center and the total number of unduplicated new clients served during 46
151+the fiscal year. 47
152+SECTION 2. Chapter 131E of the General Statutes is amended by adding a new 48
153+section to read: 49
154+"§ 131E-269.5. Pregnancy centers; performance standards; recovery of State funds for 50
155+noncompliance. 51 General Assembly Of North Carolina Session 2025
156+Page 4 DRH40438-MGa-15B
157+(a) As used in this section, the term "pregnancy center" means any nonprofit organization 1
158+other than a hospital, ambulatory surgical facility, or clinic that performs abortions, that holds 2
159+itself out as a facility that provides care for pregnant women, including pregnancy counseling 3
160+services, pregnancy testing, and other nonmedical pregnancy services. 4
161+(b) The Department shall adopt rules establishing performance standards for pregnancy 5
162+centers operating in this State. The rules shall, at a minimum, establish a monitoring mechanism 6
163+and reporting requirements to facilitate the Department periodically assessing whether pregnancy 7
164+centers are adhering to the established performance standards. The reporting requirements shall, 8
165+at a minimum, require pregnancy centers to annually report to the Department at least all of the 9
166+following information for the preceding five-year period: 10
167+(1) All contracts and agreements entered into with the State of North Carolina or 11
168+Carolina Pregnancy Care Fellowship (CPCF), a nonprofit organization, during 12
169+the preceding five-year period. 13
170+(2) A list of all monetary transactions between the pregnancy center and State of 14
171+North Carolina or CPCF. 15
172+(3) Itemized annual expenditures for all of the following: 16
173+a. Individual employees, with a breakdown of the number of full-time 17
174+and part-time staff, the number of hours worked by each full-time and 18
175+part-time staff member, and the salaries and wages paid to each staff 19
176+member. 20
177+b. Administrative supplies and materials, with an explanation of the 21
178+purposes for these items. 22
179+c. All supplies and materials provided to individuals served by the 23
180+pregnancy center, including: 24
181+1. Pregnancy tests. 25
182+2. Diapers. 26
183+3. Medicines. 27
184+4. Baby food. 28
185+5. Baby formula. 29
186+d. Marketing and promotional materials, including all of the following: 30
187+1. Flyers. 31
188+2. Print advertisements. 32
189+3. Broadcast advertisements. 33
190+4. Digital and social media advertisements. 34
191+5. Promotions for fundraisers. 35
192+e. Educational materials for clients or patients, including pamphlets and 36
193+audiovisual seminars. 37
194+f. Travel expenses. 38
195+g. Medical equipment, including ultrasound machines. 39
196+h. Events sponsored by the pregnancy center. 40
197+i. Medical training and medical equipment training offered by the 41
198+pregnancy center. 42
199+j. Contracted services, including staffing services, event services, 43
200+information technology services, and cleaning services. 44
201+k. Rent or mortgage and utilities. 45
202+(4) Documentation of applications for employment and applications for 46
203+volunteers. 47
204+(5) Copies of Internal Revenue Service Form 990. 48
205+(c) The Department shall take appropriate administrative action to recover any amount 49
206+of grant funds or State appropriations disbursed to a pregnancy center for any fiscal year in which 50
207+the Department determines that the pregnancy center is out of compliance with the performance 51 General Assembly Of North Carolina Session 2025
208+DRH40438-MGa-15B Page 5
209+standards adopted under this section. A pregnancy center aggrieved by a final determination of 1
210+the Department pursuant to this subsection may appeal the decision as provided under Article 3 2
211+of Chapter 150B of the General Statutes." 3
212+SECTION 3. This act becomes effective July 1, 2025. 4