North Carolina 2025-2026 Regular Session

North Carolina House Bill H951 Latest Draft

Bill / Amended Version Filed 04/14/2025

                            GENERAL ASSEMBLY OF NORTH CAROLINA 
SESSION 2025 
H 	1 
HOUSE BILL 951 
 
 
Short Title: SOS (State Owned Structures) Child Care Act. 	(Public) 
Sponsors: Representatives Helfrich, Hawkins, Liu, and Colvin (Primary Sponsors). 
For a complete list of sponsors, refer to the North Carolina General Assembly web site. 
Referred to: Rules, Calendar, and Operations of the House 
April 14, 2025 
*H951 -v-1* 
A BILL TO BE ENTITLED 1 
AN ACT TO ALLOW THE USE OF STATE-OWNED PROPERTY FOR THE USE OF CHILD 2 
CARE FOR STATE EMPLO YEES, TO REQUIRE RENOVATIONS OR NEW BUIL DS 3 
OF STATE-OWNED PROPERTY TO INCLUDE A CHILD CARE CENTER OR ADULT 4 
CARE CENTER, TO CREA TE A PILOT PROGRAM FOR USE OF S TATE-OWNED 5 
PROPERTY FOR CHILD CARE FACILITIES FOR STATE EMPLOYEES, TO CREATE 6 
A PILOT PROGRAM FOR COUNTY GRANTS FOR TH IRD-SHIFT CHILD CARE FOR 7 
FIRST RESPONDERS, TO REQUIRE A FEASIBILITY STUDY FOR ON-SITE CHILD 8 
CARE AT EACH NORTH C AROLINA COMMUNITY COLLEGE A ND COLLEGE IN 9 
THE UNIVERSITY OF NO RTH CAROLINA SYSTEM, AND TO ESTABLISH A 10 
WORKGROUP TO EXAMINE STREAMLINING LICENSURE REQUIREMENTS FOR 11 
PHYSICAL STRUCTURES FOR COMMERCIAL CHILD CARE FACILITIES. 12 
The General Assembly of North Carolina enacts: 13 
 14 
PART I. USE OF STATE-OWNED PROPERTY FOR CHILD CARE CENTERS F OR 15 
STATE EMPLOYEES 16 
SECTION 1.(a) The Department of Administration shall report to the Joint 17 
Legislative Oversight Committee on Health and Human Services and the Joint Legislative 18 
Commission on Governmental Operations, no later than March 31, 2026, on the feasibility and 19 
advisability of using obsolete or underutilized State-owned buildings (available buildings) to 20 
house child care facilities giving child care priority to State employees. The report shall include 21 
the following: 22 
(1) Location of each available building. 23 
(2) Estimated costs for upfitting each property to meet daycare licensing 24 
standards. 25 
(3) Estimated costs for asbestos and lead remediation. 26 
(4) Barriers to the available buildings' use as a child care facility. 27 
SECTION 1.(b) Any project undertaken by the State to build or renovate property 28 
having a budget greater than five million dollars ($5,000,000) shall include a child care center or 29 
adult day care center if more than 250 people would work in the building. This requirement 30 
includes current projects which have not broken ground by July 1, 2025, unless one or both of 31 
the following exceptions apply: 32 
(1) Inclusion of either type of center would delay the project by six months or 33 
more. 34  General Assembly Of North Carolina 	Session 2025 
Page 2  House Bill 951-First Edition 
(2) Inclusion of either type of center would increase the project cost by ten percent 1 
(10%) or more. 2 
 3 
PART II. CHILD CARE FOR STATE EMPLOYEES 4 
SECTION 2.(a) The Division of Child Development and Early Education shall 5 
establish a pilot program for onsite child care for State employees as follows: 6 
(1) The Division of Child Development and Early Education shall contract with 7 
a private commercial child care provider to establish three child care centers 8 
for State employees' use to be established on State-owned property that is 9 
unused or underutilized. 10 
(2) Priority in contracting shall be given to commercial child care providers who 11 
currently operate five or fewer facilities and provide high-quality child care. 12 
(3) The Division of Child Development and Early Education must include the 13 
following terms in the contract with the commercial child care providers: 14 
a. The child care facility must operate an apprenticeship program in 15 
conjunction with a public or private university or community college 16 
who operates an early child care education program. 17 
b. The child care center must comply with the requirements established 18 
by the Division of Child Development and Early Education for the 19 
apprenticeship program. 20 
c. The child care center must maintain the operation of the apprenticeship 21 
program for so long as the child care center is housed in State-owned 22 
property and the university or community college is willing to 23 
continue the partnership. 24 
d. The State will provide the upfit cost of the space to meet the licensure 25 
requirements at reasonable levels that are customary at the operators' 26 
other facilities and those similarly situated and provide use of the space 27 
rent free, notwithstanding the provisions of G.S. 146-29.1. 28 
e. The lease terms for State-owned property must be approved as 29 
required by G.S. 146-27. 30 
SECTION 2.(b) The Division of Child Development and Early Education shall 31 
create the requirements for the apprenticeship program and pair the child care centers with a 32 
university or community college early education program utilizing parameters similar to the 33 
Durham Childcare Apprenticeship Program. 34 
SECTION 2.(c) There is appropriated from the General Fund to the Department of 35 
Health and Human Services the sum of five million dollars ($5,000,000) for the 2025-2026 fiscal 36 
year for the Division of Child Development and Early Education's use in establishing the child 37 
care centers as required by Section 2(a) of this act. 38 
SECTION 2.(d) If any expenses are incurred by the State for asbestos or lead 39 
remediation in establishing the child care centers required by Section 2(a) of this act, the State 40 
shall be eligible for reimbursement from the Asbestos and Lead Remediation Fund subject to the 41 
rules of the fund for up to five hundred thousand dollars ($500,000). 42 
SECTION 2.(e) By April 1, 2027, the Division of Child Development and Early 43 
Education shall report on and make recommendations to the Joint Legislative Oversight 44 
Committee on Health and Human Services, the Joint Legislative Oversight Committee on 45 
General Government, and the Fiscal Research Division the status of the implementation of the 46 
pilot program, including successes, concerns, problems encountered, enrollment, and 47 
expenditures. 48 
SECTION 2.(f) Sections 2(c) and 2(d) of this act are effective July 1, 2025. 49 
 50 
PART III. ON-SITE CHILD CARE FOR THIRD-SHIFT FIRST RESPONDERS 51  General Assembly Of North Carolina 	Session 2025 
House Bill 951-First Edition  	Page 3 
SECTION 3.(a) There is appropriated from the General Fund to the Department of 1 
Health and Human Services the sum of six million dollars ($6,000,000) for the 2025-2026 fiscal 2 
year for a pilot program to provide counties grants to establish third-shift child care for first 3 
responders, with priority to be given to third-shift facilities operated in unused or underutilized 4 
county-owned buildings. By April 1, 2027, the Department of Health and Human Services shall 5 
report on and make recommendations to the Joint Legislative Oversight Committee on Health 6 
and Human Services, the Joint Legislative Oversight Committee on General Government, and 7 
the Fiscal Research Division regarding the implementation of the pilot program, including 8 
successes, concerns, problems encountered, enrollment, and expenditures. 9 
SECTION 3.(b) Section 3(a) of this act is effective July 1, 2025. 10 
 11 
PART IV. ON-SITE CHILD CARE AT EACH NORT H CAROLINA COMMUNITY 12 
COLLEGE AND COLLEGE IN THE UNIVERSITY OF NORTH CA ROLINA SYSTEM 13 
SECTION 4.1.(a) Report. – The State Board of Community Colleges shall study 14 
and report to the Joint Legislative Education Oversight Committee, the Joint Legislative 15 
Oversight Committee on Health and Human Services, and the Fiscal Research Division, no later 16 
than March 31, 2026, on the feasibility and advisability of implementing a publicly available 17 
child care program on every community college campus that offers priority enrollment to the 18 
children of community college employees and students. The report shall include the following: 19 
(1) Recommendations for implementing the child care program. 20 
(2) Estimated costs for implementation and maintenance of the child care 21 
program. 22 
(3) Return on investment of the child care program. 23 
(4) Issues related to historical and ongoing utilization of grants or other funding. 24 
(5) Barriers to implementation of the child care program. 25 
SECTION 4.1.(b) There is appropriated from the General Fund to the Community 26 
Colleges System Office the sum of one hundred thousand dollars ($100,000) for the study 27 
required by Section 4.1(a) of this act. 28 
SECTION 4.1.(c) Section 4.1(b) of this act is effective July 1, 2025. 29 
SECTION 4.2.(a) The Board of Governors of The University of North Carolina shall 30 
study and report to the Joint Legislative Education Oversight Committee, the Joint Legislative 31 
Oversight Committee on Health and Human Services, and the Fiscal Research Division, no later 32 
than March 31, 2026, on the feasibility and advisability of implementing a publicly available 33 
child care program at each constituent institution campus that offers priority enrollment to the 34 
children of university employees and students. The report shall include: 35 
(1) Recommendations for implementing the child care program. 36 
(2) Estimated costs for implementation and maintenance of the child care 37 
program. 38 
(3) Return on investment of the child care program. 39 
(4) Issues related to historical and ongoing utilization of grants or other funding. 40 
(5) Barriers to implementation of the child care program. 41 
SECTION 4.2.(b) There is appropriated from the General Fund to the Board of 42 
Governors the sum of one hundred thousand dollars ($100,000) for the study required by Section 43 
4.2(a) of this act. 44 
SECTION 4.2.(c) Section 4.2(b) of this act is effective July 1, 2025. 45 
 46 
PART V. ESTABLISH WO RKGROUP TO EXAMINE S TREAMLINING LICENSUR E 47 
REQUIREMENTS FOR PHY SICAL STRUCTURE OF C OMMERCIAL CHILD CARE 48 
FACILITIES 49 
SECTION 5.(a) The Division of Child Development and Early Education shall 50 
establish the Commercial Child Care Licensure Workgroup to examine streamlining 51  General Assembly Of North Carolina 	Session 2025 
Page 4  House Bill 951-First Edition 
requirements related to the physical structure of commercial child care centers. The workgroup 1 
shall consist of one representative from each of the following to be chosen by the North Carolina 2 
Child Care Commission: 3 
(1) The Division of Child Development and Early Education. 4 
(2) The Office of the State Fire Marshal. 5 
(3) The Department of Insurance. 6 
(4) The North Carolina Building Code Council. 7 
(5) The Division of Public Health. 8 
(6) The League of Municipalities. 9 
(7) The North Carolina Association of County Commissioners. 10 
The North Carolina Child Care Commission shall also appoint two commissioners to 11 
the workgroup who shall also serve as cochairs of the workgroup. 12 
SECTION 5.(b) The workgroup shall develop findings and recommendations related 13 
to at least the following: 14 
(1) Streamlining the licensing requirements related to the physical facilities 15 
related to commercial child care facilities, including building codes, fire 16 
codes, and sanitation codes. 17 
(2) Developing statewide, uniform application of the commercial child care 18 
licensing requirements related to the physical facility, including building 19 
codes, fire codes, and sanitation codes and statewide, uniform inspections 20 
related to those codes. 21 
(3) Resolving conflicts between various code requirements for commercial child 22 
care licensing. 23 
SECTION 5.(c) By January 1, 2026, the Division of Child Development and Early 24 
Education shall report the findings and recommendations of the workgroup to the Joint 25 
Legislative Oversight Committee on Health and Human Services, the Joint Legislative Oversight 26 
Committee on General Government, and the Fiscal Research Division. 27 
 28 
PART VI. EFFECTIVE DATE 29 
SECTION 6. Except as otherwise provided, this act is effective when it becomes 30 
law. 31