GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 678
Short Title: Onsite Childcare for State Employees Act. (Public)
Sponsors: Senators Chitlik and Chaudhuri (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S678 -v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ALLOW THE USE OF STATE-OWNED PROPERTY FOR THE USE OF 2
CHILDCARE FOR STATE EMPLOYEES, REQUIRE R ENOVATIONS OR NEW 3
BUILDS OF STATE-OWNED PROPERTY TO INCLUDE A CHILDCARE CENTER OR 4
ADULT CARE CENTER ON SITE, CREATE A PILOT PROGRAM FOR USE OF 5
STATE-OWNED PROPERTY FOR CHILDCARE FACIL ITIES FOR STATE 6
EMPLOYEES. 7
The General Assembly of North Carolina enacts: 8
9
PART I. USE OF STATE-OWNED PROPERTY FOR ONSITE CHILDCARE CEN TERS 10
FOR STATE EMPLOYEES. 11
SECTION 1.(a) The Department of Administration shall report to the Joint 12
Legislative Oversight Committee on Health and Human Services and the Joint Legislative 13
Commission on Governmental Operations, no later than March 31, 2026, on the feasibility and 14
advisability of using obsolete or underutilized State-owned buildings (available buildings) to 15
house childcare facilities giving childcare priority to State employees. The report shall include 16
the following: 17
(1) Location of each available building. 18
(2) Estimated costs for upfitting each property to meet daycare licensing 19
standards. 20
(3) Estimated costs for asbestos and lead remediation. 21
(4) Barriers to the available buildings' use as a childcare facility. 22
SECTION 1.(b) Any project undertaken by the State to build or renovate property 23
having a budget greater than five million dollars ($5,000,000) shall include a child care center or 24
adult day care center if more than 250 people would work in the building. This requirement 25
includes current projects which have not broken ground by July 1, 2025, unless one or both of 26
the following exceptions apply: 27
(1) Inclusion of either type of center would delay the project by six months or 28
more. 29
(2) Inclusion of either type of center would increase the project cost by 10% or 30
more. 31
32
PART II. CHILDCARE FOR STATE EMPLOYEES 33
SECTION 2.(a) The Division of Child Development and Early Education shall 34
establish a pilot program for onsite childcare for State employees as follows: 35 General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 678-First Edition
(1) The Division of Child Development and Early Education shall contract with 1
a private commercial childcare provider to establish three childcare centers 2
for State employees use to be established on State-owned property that is 3
unused or underutilized. 4
(2) Priority in contracting shall be given to commercial childcare providers who 5
currently operate five or fewer facilities and provide high quality childcare. 6
(3) The Division of Child Development and Early Education must include the 7
following terms in the contract with the commercial childcare providers: 8
a. The childcare facility must operate an apprenticeship program in 9
conjunction with a public or private university or community college 10
who operates an early childcare education program. 11
b. The childcare center must comply with the requirements established 12
by the Division of Child Development and Early Education for 13
apprenticeship program. 14
c. The childcare center must maintain the operation of the apprenticeship 15
program for so long as the childcare center is housed in state-owned 16
property and the university or community college is willing to 17
continue the partnership. 18
d. The State will provide the upfit cost of the space to meet the licensure 19
requirements at reasonable levels that are customary at the operators' 20
other facilities and those similarly situated and provide use of the space 21
rent free, notwithstanding the provisions of G.S. 146-29.1. 22
e. The lease terms for state-owned property must be approved as required 23
by G.S. 146-27. 24
SECTION 2.(b) The Division of Child Development and Early Education shall 25
create the requirements for the apprenticeship program and pair the childcare centers with a 26
university or community college early education program utilizing parameters similar to the 27
Durham Childcare Apprenticeship Program. 28
SECTION 2.(c) There is appropriated from the General Fund to the Department of 29
Health and Human Resources the sum of five million dollars ($5,000,000) for the 2025-2026 30
fiscal year for the Division of Child Development and Early Education's use in establishing the 31
childcare centers as required by Section 2(a) of this act. 32
SECTION 2.(d) If any expenses are incurred by the State for asbestos or lead 33
remediation in establishing the childcare centers required by Section 2.(a) of this act, the State 34
shall be eligible for reimbursement from the Asbestos and Lead Remediation Fund subject to the 35
rules of the fund for up to five hundred thousand dollars ($500,000). 36
SECTION 2.(e) By April 1, 2027, the Division of Child Development and Early 37
Education shall report on and make recommendations to the Joint Legislative Oversight 38
Committee on Health and Human Services, the Joint Legislative Oversight Committee on 39
General Government, and the Fiscal Research Division the status of the implementation of the 40
pilot program including successes, concerns, problems encountered, enrollment, and 41
expenditures. 42
SECTION 2.(f) Sections 2(c) and 2(d) of this act are effective July 1, 2025. 43
44
PART III. EFFECTIVE DATE 45
SECTION 3. Except as otherwise provided, this act is effective when it becomes 46
law. 47