Includes whereas clauses.

Amends GS 110-103(b), which makes it a Class I felony to willfully operate an unlicensed child care facility or to operate a licensed child care facility in willful violation of the provisions in Article 7 while providing child care to three or more children for over four hours per day on two consecutive days. Reduces the offense to a Class A1 misdemeanor for the first offense and a Class I felony for second or subsequent offenses. Grants the prosecutor discretion to charge any violation that poses a substantial risk of harm to the child as a Class I felony upon consideration of the nature and circumstances of the violation, the number of children placed at risk, the history of prior violations, and whether the operator took prompt corrective action. Specifies that the Department of Health and Human Services (DHHS) maintains authority to pursue civil or administrative remedies concurrently or in lieu of criminal prosecution.

Appropriates $50,000 from the General Fund to DHHS, Division of Child Development and Early Education for 2025-26. Requires funds be used to update enforcement protocols, internal policy, and staff training materials; develop and distribute guidance to child care facility operators and the public; and coordinate with the Department of Justice and the Administrative Office of the Courts (AOC) with regard to the reclassifications and prosecutorial discretion granted under GS 110-103(b).

Appropriates $25,000 from the General Fund to AOC for 2025-26 to be used to update charging instruments, case management systems, and related forms, and provide notice and guidance to district attorneys, clerks of superior court, and other court personnel, with regard to the reclassifications and prosecutorial discretion granted under GS 110-103(b).

Includes a savings clause for prosecution or punishment related to offenses committed before the date the act becomes law.