North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S561 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 561
	3	+	S D
	4	+	SENATE BILL DRS45296-MGa-72A
	5	+
5	6
6	7
7	8		Short Title: The Working Hearts, Empowered Homes Act. (Public)
8	9		Sponsors: Senator Theodros (Primary Sponsor).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 26, 2025~~
11		-	~~S561 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS45296 -MGa-72A
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT INTEGRATING AND EXPANDING HEALTHCARE, CHILD CARE, 2
14	15		NUTRITIONAL ASSISTANCE, AND PREVENTIVE CARE PROGRAMS TO 3
15	16		STRENGTHEN SUPPORT FOR WORKING FAMILIES IN NORTH CAROLINA ; AND 4
16	17		APPROPRIATING FUNDS FOR THESE PURPOSES. 5
17	18		Whereas, working families face significant financial and logistical barriers to 6
18	19		accessing essential services such as healthcare, child care, and nutrition assistance; and 7
19	20		Whereas, existing programs that provide support to working families operate 8
20	21		independently, creating inefficiencies and gaps in service delivery for low- and middle-income 9
21	22		families; and 10
22	23		Whereas, integrating and enhancing the State's family support programs and services 11
23	24		will promote economic stability, health equity, and long-term well-being for North Carolina's 12
24	25		working families; Now, therefore, 13
25	26		The General Assembly of North Carolina enacts: 14
26	27		15
27	28		PART I. TITLE 16
28	29		SECTION 1.1. This act shall be known and may be cited as "The Working Hearts, 17
29	30		Empowered Homes Act." 18
30	31		19
31	32		PART II. DEFINITIONS 20
32	33		SECTION 2.1. The following definitions apply in this act: 21
33	34		(1) Integrated family support services. – Programs and services administered at 22
34	35		the State level that are designed to strengthen families through the provision 23
35	36		of State-funded or State-subsidized child care, nutritional assistance, 24
36	37		healthcare, or preventive care. 25
37	38		(2) Preventive care. – Healthcare services and activities aimed at reducing 26
38	39		long-term healthcare costs and improving an individual's overall well-being. 27
39	40		(3) Working families. – Households with one or more adults who are engaged in 28
40	41		employment but require support services to maintain economic stability. 29
41	42		30
42	43		PART III. PROGRAM INTEGRATION 31
43	44		32
44	45		STATEWIDE FAMILY SUPPORT COORDINATION SYSTEM 33
45	46		SECTION 3.1.(a) The Department of Health and Human Services shall coordinate 34
46		-	all family support contracts and activities across divisions. This coordination shall address 35 General Assembly Of North Carolina Session 2025
47		-	Page 2 Senate Bill 561-First Edition
	47	+	all family support contracts and activities across divisions. This coordination shall address 35
	48	+	FILED SENATE
	49	+	Mar 25, 2025
	50	+	S.B. 561
	51	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRS45296-MGa-72A
48	53		duplication, cost efficiency, and effectiveness and shall ensure compliance with federal 1
49	54		requirements while maximizing State and federal resources. 2
50	55		SECTION 3.1.(b) The Department of Health and Human Services shall develop a 3
51	56		family support coordination system that integrates family support programs, services, and 4
52	57		activities offered throughout the State to ensure streamlined access for working families. This 5
53	58		system shall consolidate application processes, eligibility requirements, and service delivery 6
54	59		methods for family support programs and services. 7
55	60		8
56	61		FAMILY SUPPORT REGIONAL HUBS PILOT PROGRAM 9
57	62		SECTION 3.2.(a) Program Purpose and Funding. – Effective July 1, 2025, there is 10
58	63		appropriated from the General Fund to the Department of Health and Human Services the sum 11
59	64		of three million dollars ($3,000,000) in nonrecurring funds for each year of the 2025-2027 fiscal 12
60	65		biennium to establish and administer a Regional Hubs Pilot Program (Pilot Program) in up to 13
61	66		three different regions of the State. The purpose of this Pilot Program is to evaluate the 14
62	67		effectiveness of utilizing regional hubs that are available in person, through the World Wide 15
63	68		Web, or through any other means of electronic access to assist working families with gaining 16
64	69		access to family support programs and services in one setting. The Pilot Program authorized by 17
65	70		this section shall terminate upon the filing of the report required by subsection (b) of this section. 18
66	71		SECTION 3.2.(b) Eligible Use of Funds. – The Department may use the funds 19
67	72		appropriated by subsection (a) of this section to enter into a contract with a third-party entity to 20
68	73		assist with the design, implementation, and operation of these regional hubs. 21
69	74		SECTION 3.2.(c) Reporting. – By February 1, 2028, the Department of Health and 22
70	75		Human Services shall conduct and submit to the Joint Legislative Oversight Committee on 23
71	76		Health and Human Services and the Fiscal Research Division a comprehensive evaluation of the 24
72	77		Pilot Program authorized by this section. The evaluation shall include, at a minimum, all of the 25
73	78		following information: 26
74	79		(1) A detailed breakdown of Pilot Program expenditures. 27
75	80		(2) A description of the design and operation of each regional hub. 28
76	81		(3) The number of counties and individuals served by each regional hub. 29
77	82		(4) A recommendation as to whether the Pilot Program should be implemented 30
78	83		statewide. 31
79	84		32
80	85		PART IV. SERVICE EXPANSION 33
81	86		34
82	87		CHILD CARE INNOVATION PILOT PROGRAM 35
83	88		SECTION 4.1.(a) Program Purpose and Funding. – Effective July 1, 2025, there is 36
84	89		appropriated from the General Fund to the Department of Health and Human Services, Division 37
85	90		of Child Development and Early Education (DCDEE), the sum of seven million dollars 38
86	91		($7,000,000) in nonrecurring funds for each year of the 2025–2027 fiscal biennium to establish 39
87	92		and administer a Child Care Innovation Pilot Program (Pilot Program). The purpose of the Pilot 40
88	93		Program is to evaluate the effectiveness of targeted child care interventions in improving access 41
89	94		for working families, especially those employed in industries with nontraditional work hours or 42
90	95		employed by small businesses. Upon the filing of the report required by subsection (c) of this 43
91	96		section, the Pilot Program terminates. 44
92	97		SECTION 4.1.(b) Eligible Use of Funds. – The DCDEE shall not use the funds 45
93	98		appropriated by subsection (a) of this section for any purpose other than to do one or more of the 46
94	99		following: 47
95	100		(1) To award grants on a competitive basis to small and midsize nonprofit 48
96	101		employers that establish or contract for on-site or near-site child care services 49
97	102		for their employees. The amount of any competitive grant will be limited to 50
98	103		the amount necessary to match the employer's expenses for these on-site or 51 General Assembly Of North Carolina Session 2025
99		-	~~Senate Bill 561-First Edition~~ Page 3
	104	+	DRS45296-MGa-72A Page 3
100	105		near-site child care services. The DCDEE shall develop an application 1
101	106		process, eligibility criteria, and selection criteria for the competitive grants 2
102	107		authorized by this section. 3
103	108		(2) To award directed grants of up to one thousand dollars ($1,000) each on a first 4
104	109		come, first serve basis to nonprofit or faith-based child care centers located in 5
105	110		rural or underserved communities to expand their child caring capacity or 6
106	111		extend their hours of operation. The DCDEE shall develop an application 7
107	112		process, eligibility criteria, and selection criteria for the microgrants 8
108	113		authorized by this section. 9
109	114		(3) To fund smaller, innovative child care pilot projects in up to five counties 10
110	115		determined by the Department to have the greatest need for expanded access 11
111	116		to child care, based on child care availability and economic data. 12
112	117		SECTION 4.1.(c) Report. – By February 1, 2028, the DCDEE shall report to the Joint 13
113	118		Legislative Oversight Committee on Health and Human Services and the Fiscal Research 14
114	119		Division on the outcomes of the Pilot Program authorized by this section. The report shall 15
115	120		include at least all of the following: 16
116	121		(1) An itemized list of expenditures. 17
117	122		(2) For any grants awarded under this section: 18
118	123		a. The identity and a brief description of each grantee and each program 19
119	124		or service offered by the grantee. 20
120	125		b. The amount of funding awarded to each grantee. 21
121	126		c. The number of individuals served by each grantee and, for the 22
122	127		individuals served, the types of services provided to each. 23
123	128		d. Any other information requested by the Office of Rural Health as 24
124	129		necessary for evaluating the success of the Community Health Grant 25
125	130		Program. 26
126	131		(3) An evaluation of the outcomes and cost-effectiveness of the Pilot Program. 27
127	132		(4) Any other information the DCDEE believes to be necessary for evaluating the 28
128	133		success of the Pilot Program. 29
129	134		30
130	135		NUTRITION ASSISTANCE PILOT PROGRAM 31
131	136		SECTION 4.2.(a) Program Purpose and Funding. – Effective July 1, 2025, there is 32
132	137		appropriated from the General Fund to the Department of Health and Human Services, Division 33
133	138		of Child and Family Well-Being (DCFW), the sum of five million dollars ($5,000,000) in 34
134	139		nonrecurring funds for each year of the 2025–2027 fiscal biennium to establish the Targeted 35
135	140		Food Access Pilot Program (Pilot Program). The purpose of this Pilot Program is to improve 36
136	141		food security and nutritional outcomes for working families through targeted, community-based 37
137	142		strategies. The Pilot Program authorized by this section shall terminate upon the filing of the 38
138	143		report required by subsection (c) of this section. 39
139	144		SECTION 4.2.(b) Eligible Use of Funds. – The DCFW shall not use the funds 40
140	145		appropriated by subsection (a) of this section for any purpose other than to do one or more of the 41
141	146		following: 42
142	147		(1) To support produce prescription programs administered in partnership with 43
143	148		local health clinics or federally qualified health centers, targeting working 44
144	149		families who have at least one family member with a chronic health condition 45
145	150		or that is actively engaged in workforce training. For the purpose of this 46
146	151		subdivision, a produce prescription program is a program in which healthcare 47
147	152		providers prescribe fruits and vegetables to patients at risk for diet-related 48
148	153		health problems or food insecurity, enabling access to healthy produce at low 49
149	154		or no cost. 50 General Assembly Of North Carolina Session 2025
150		-	Page 4 ~~Senate Bill 561-First Edition~~
	155	+	Page 4 DRS45296-MGa-72A
151	156		(2) To support the establishment or expansion of mobile food markets or food 1
152	157		delivery programs for working families in areas of the State with food deserts, 2
153	158		defined as areas of the State with limited access to affordable, nutritious food 3
154	159		due to a lack of grocery stores or other sources of fresh produce within a 4
155	160		reasonable distance. 5
156	161		(3) To support local partnerships with farmers markets, food co-ops, and 6
157	162		culturally appropriate food providers to improve food security for working 7
158	163		families. 8
159	164		(4) To provide the State contribution necessary to draw down federal matching 9
160	165		funds available through the Food and Nutrition Services Program or nutrition 10
161	166		initiatives supported by the United States Department of Agriculture, or both, 11
162	167		for the activities described in subdivisions (1) through (3) of this subsection. 12
163	168		SECTION 4.2.(c) Report. – By February 1, 2028, the DCFW shall report to the Joint 13
164	169		Legislative Oversight Committee on Health and Human Services and the Fiscal Research 14
165	170		Division on the Pilot Program authorized by this section. The report shall include at least all of 15
166	171		the following information: 16
167	172		(1) An itemized list of expenditures. 17
168	173		(2) The number of people served. 18
169	174		(3) An evaluation of the nutritional impact of the Pilot Program. 19
170	175		(4) An evaluation of the outcomes and cost-effectiveness of the Pilot Program. 20
171	176		(5) Any other information the DCFW believes to be necessary for evaluating the 21
172	177		success of the Pilot Program. 22
173	178		23
174	179		YEAR-ROUND NUTRITION SERVICE PILOT PROGRAM 24
175	180		SECTION 4.3.(a) Program, Purpose. – To the extent funds are made available for 25
176	181		the purpose, the Department of Public Instruction shall establish and administer the Year-Round 26
177	182		Nutrition Service Pilot Program (Program) in accordance with the provisions of this section. The 27
178	183		purpose of the program is to enable select local school administrative units to provide meals to 28
179	184		students at no cost to students through the summer. 29
180	185		SECTION 4.3.(b) Eligibility. – Any local school administrative unit that is or 30
181	186		contains schools that are eligible for and participating in the Community Eligibility Provision 31
182	187		Program is eligible to apply for the Program. 32
183	188		SECTION 4.3.(c) Application. – The Department of Public Instruction shall develop 33
184	189		and release an application for the Program each year. The Department shall notify the local school 34
185	190		administrative units selected to participate in the Program by July 15. The Department shall then 35
186	191		award grants to all selected local school administrative units. 36
187	192		SECTION 4.3.(d) Program Requirements. – Local school administrative units 37
188	193		participating in the Program shall do the following: 38
189	194		(1) Participate in the National School Lunch Program, School Breakfast Program, 39
190	195		and Summer Food Service Program. 40
191	196		(2) Provide two meals per day, breakfast and lunch, to students at no cost to the 41
192	197		students year-round, regardless of the school's instructional calendar. 42
193	198		SECTION 4.3.(e) Report. – No later than January 1 of each year of the Program, the 43
194	199		Department shall report to the Joint Legislative Education Oversight Committee at least the 44
195	200		following information: 45
196	201		(1) The selected local school administrative units and the award to each. 46
197	202		(2) The number of students served through the Program and the number of meals 47
198	203		served. 48
199	204		(3) The number of unfunded applications. 49
200	205		SECTION 4.3.(f) There is appropriated from the General Fund to the Department of 50
201	206		Public Instruction the sum of five million dollars ($5,000,000) in nonrecurring funds for the 51 General Assembly Of North Carolina Session 2025
202		-	~~Senate Bill 561-First Edition~~ Page 5
	207	+	DRS45296-MGa-72A Page 5
203	208		2025-2026 fiscal year for the Department to establish and administer the Year-Round Nutrition 1
204	209		Service Pilot Program, as enacted by this section. 2
205	210		SECTION 4.3.(g) This section becomes effective July 1, 2025, and applies 3
206	211		beginning with the 2025-2026 school year. 4
207	212		5
208	213		PART V. PREVENTIVE HEALTHCARE AND FAMILY WELL-BEING 6
209	214		7
210	215		PREVENTIVE CARE SERVICES 8
211	216		SECTION 5.1. Effective July 1, 2025, there is appropriated from the General Fund 9
212	217		to the Department of Health and Human Services, Division of Central Management and Support, 10
213	218		Office of Rural Health (ORH), the sum of two million dollars ($2,000,000) in recurring funds for 11
214	219		the 2025-2027 fiscal biennium to be used to provide grants to local health departments, federally 12
215	220		qualified health centers, community health centers, and other safety-net providers to expand 13
216	221		telehealth services in up to ten counties to enable working families to participate in virtual 14
217	222		preventative care services, including wellness checkups, mental health counseling, and pediatric 15
218	223		consultations. In selecting grant recipients, the ORH shall prioritize safety-net providers located 16
219	224		in low-wealth counties. 17
220	225		18
221	226		PARENTAL HEALTH AND FAMILY SUPPORT SERVICES 19
222	227		SECTION 5.2. Effective July 1, 2025, there is appropriated from the General Fund 20
223	228		to the Department of Health and Human Services, Division of Child and Family Well-Being, the 21
224	229		sum of three million dollars ($3,000,000) in recurring funds for each year of the 2025-2027 fiscal 22
225	230		biennium to be used to offer employers with 50 or more employees an incentive to offer on-site 23
226	231		child care and flexible work hours to accommodate working families. 24
227	232		25
228	233		PART VI. FEDERAL MATCHING FUNDS 26
229	234		SECTION 6.1. It is the intent of the General Assembly that the Department of Health 27
230	235		and Human Services and the Department of Public Instruction pursue all available federal 28
231	236		matching funds to supplement State investments in integrated family support services. 29
232	237		30
233	238		PART VII. OVERSIGHT AND ACCOUNTABILITY 31
234	239		SECTION 7.1.(a) Creation of Family Support Advisory Board. – There is 32
235	240		established the Family Support Advisory Board (Advisory Board) within the Department of 33
236	241		Health and Human Services. The Advisory Board shall consist of the following nine members: 34
237	242		(1) The Director of the Division of Child and Family Well-Being or the Director's 35
238	243		designee. 36
239	244		(2) The Secretary of the Department of Public Instruction or a designee. 37
240	245		(3) Two members of the House of Representatives appointed by the Speaker of 38
241	246		the House of Representatives. 39
242	247		(4) Two members of the Senate appointed by the President Pro Tempore of the 40
243	248		Senate. 41
244	249		(5) Three members appointed by the Governor, one of whom shall be a 42
245	250		representative of a community-based organization, one of whom shall be an 43
246	251		expert in healthcare policy, and one of whom shall be an expert in social 44
247	252		services. 45
248	253		SECTION 7.1.(b) Chairperson. – A chairperson shall be elected from among the 46
249	254		members. The chairperson shall organize and direct the work of the Advisory Board. 47
250	255		SECTION 7.1.(c) Administrative Support. – The Department of Health and Human 48
251	256		Services shall provide necessary clerical and administrative support to the Advisory Board. 49 General Assembly Of North Carolina Session 2025
252		-	Page 6 ~~Senate Bill 561-First Edition~~
	257	+	Page 6 DRS45296-MGa-72A
253	258		SECTION 7.1.(d) Meetings. – The Advisory Board shall meet at least quarterly and 1
254	259		at the call of the chairperson. A majority of the Advisory Board constitutes a quorum for the 2
255	260		transaction of business. 3
256	261		SECTION 7.1.(e) Expenses. – Members of the Advisory Board who are State 4
257	262		officers or employees shall receive no compensation for serving on the Advisory Board but may 5
258	263		be reimbursed for their expenses in accordance with G.S. 138-6. Members of the Advisory Board 6
259	264		who are full-time salaried public officers or employees other than State officers or employees 7
260	265		shall receive no compensation for serving on the Advisory Board but may be reimbursed for their 8
261	266		expenses in accordance with G.S. 138-5(b). All other members of the Advisory Board may 9
262	267		receive compensation and reimbursement for expenses in accordance with G.S. 138-5. 10
263	268		SECTION 7.1.(f) Duties. – The Advisory Board shall provide consultation to the 11
264	269		Department of Health and Human Services with respect to the fulfillment of the Department's 12
265	270		responsibilities under Section 3.1 of this act. 13
266	271		SECTION 7.1.(g) Annual Report. – Annually by May 1, beginning May 1, 2027, 14
267	272		the Advisory Board shall conduct a comprehensive evaluation of family support services in North 15
268	273		Carolina and submit a report of its findings and recommendations to the Joint Legislative 16
269	274		Oversight Committee on Health and Human Services and the Fiscal Research Division. The 17
270	275		evaluation shall be made publicly available on the Department's website and shall include at least 18
271	276		all of the following: 19
272	277		(1) The impact of integrated family support services on family economic stability. 20
273	278		(2) The efficiency and effectiveness of the statewide family support coordination 21
274	279		system developed pursuant to Section 3.1(b) of this act. 22
275	280		(3) Gaps and challenges in State-administered family support programs and 23
276	281		services requiring policy adjustments. 24
277	282		25
278	283		PART VIII. SEVERABILITY 26
279	284		SECTION 8.1. If any section or provision of this act is declared unconstitutional or 27
280	285		invalid by the courts, it does not affect the validity of this act as a whole or any part other than 28
281	286		the part declared to be unconstitutional or invalid. 29
282	287		30
283	288		PART IX. EFFECTIVE DATE 31
284	289		SECTION 9.1. Except as otherwise provided, this act is effective when it becomes 32
285	290		law. 33