Section 1.

Adds new Article 11, Online Safety Division, to GS Chapter 114, providing as follows. Establishes the Online Safety Division (Division) within the Office of the Attorney General, with the following duties: (1) investigation of complaints made under GS Chapter 114B (NC Children’s Safe Screens Act); (2) education of law enforcement agencies and the general public about the online safety of all North Carolinians, with an emphasis targeting harmful activities and dark patterns; (3) issuance of online safety standards and guidelines and review of relevant industry codes pertaining to internet safety, age-appropriate design, and compliance with the NC Children’s Safe Screens Act; and (4) facilitating advisory panels on internet safety, including child development experts, technology specialists, parent representatives, community stakeholders, and industry representatives. Specifies that the Division includes the NC Online Child Safety Commission (Commission) created in new GS Chapter 114B.  Establishes a children’s online safety fund (Fund) in the Department of Justice (DOJ) administered by the Commission and used exclusively for prevention, education, and enforcement activities under GS Chapter 114B. Provides for annual reports by the Commission to the NCGA on Fund expenditures and outcomes.

Section 2.

Enacts new GS Chapter 114B, NC Children’s Safe Screens Act, providing as follows. Defines terms used in the Chapter, including defining covered platform as an internet platform providing online services having more than 5 million users in North Carolina and revenue exceeding $25 million annually. Makes it State public policy that its children are owned a duty of care with regard to their online activities in order to limit foreseeable harm and their exposure to dark patterns and harmful content on covered platforms; also endorses age-appropriate design and strong parental controls as central to protecting children. Requires covered platforms to require parental notifications for accounts created by children (defines child as an individual under age 18) and requires offering robust, easy-to-use parental supervision tools. Makes it illegal for covered platforms to use dark patterns (manipulative design elements in online environments) or deploy features known to be addictive or manipulative. Requires covered platforms to define cyberbullying and include provisions for reporting to the Division and provide intervention and support services for affected children. Requires platforms to submit an annual Child Impact Assessment to the Division for new and existing services; sets out required content and requires retaining documentation supporting the annual assessments for at least three years. Requires covered platforms to use the highest privacy settings by default for all users likely to be children and establish strict data minimization principles that include the nine specified elements, including requiring deletion when no longer needed, prohibiting profiling and behavioral advertising targeting children, and data broker restrictions for children’s information. Allows the Attorney General to bring civil actions to enforce this Article. Allows, when the defendant is found to have knowingly violated the Chapter, imposing civil penalties of up to $500,000 per violation. Sets out what must be considered in setting the amount of the penalty. Requires penalty proceeds to be remitted to the Civil Penalty and Forfeiture Fund. Clarifies that GS Chapter 114B does not create a private right of action. Requires the Commission to refer all matters requiring civil enforcement to the AG, whose authority to bring civil actions under GS Chapter 114B is exclusive. Provides for limited injunctive relief.

Establishes the eleven-member North Carolina Online Child Safety Commission (Commission) (nine voting members and the AG and Superintendent of Public Instruction as two ex officio members) within DOJ to protect the state’s children from online harms through research, education, regulation, enforcement and ongoing adaptation to the evolving digital landscape. Sets out additional Commission duties. Voting members are to be appointed by the Governor and must have expertise in and commitment to child welfare, digital technology, mental health, education, or related fields relevant to children’s online safety; sets out additional membership qualifications. Sets terms at four years, staggered, and prohibits serving more than two consecutive terms. Provides for a chair and vice-chair, professional support staff, investigative staff, and specialized units. Requires the Commission to conduct a comprehensive review of its activities and impact, assess changing technological landscapes and emerging challenges, revise strategic priorities and approaches as needed, and recommend statutory amendments to maintain effectiveness, every three years.

Requires the Commission to give expert guidance to, among others, the Governor and General Assembly on matters relating to online child safety, educational institutions on digital literacy and safety curricula, technology platforms on best practices for age-appropriate design, and parents and caregivers on tools and strategies to protect children online. Requires the Commission to: (1) conduct research and data collection as specified; (2) develop and oversee the specified educational initiatives; (3) handle complaints in the specified manner; (4) adopt binding regulations on age verification, minor account data practices, default safety settings, complaint procedures, and platform transparency disclosure; and (5) coordinate and collaborate with listed entities.

Requires the Commission to prepare and publish an annual “State of Children’s Online Safety in North Carolina” report that includes the specified items. Requires the Commission to conduct annual compliance reviews of covered platforms that include seven specified measures. Requires the Commission to submit annual recommendations to the NCGA on five specified issues. Requires the Commission to hold at least four public hearings including specialized hearings on emerging issues of concern. Requires the Commission to engage with the industry in five specified ways, including convening an annual Industry Safety Summit with platform representatives and reviewing and approving updates to industry codes of practice. Requires the Commission to publish annual transparency reports that detail information related to enforcement actions, complaints, penalties, and other Commission actions. Requires the Commission to annually audit and evaluate five listed programs and initiatives, including digital literacy programs in schools and public awareness campaign effectiveness. Requires the Commission to establish annual research priorities based on identified gaps, commission or conduct studies on priority areas, award research grants from the Children's Online Safety Fund, publish findings and recommendations based on research, and ensure research informs regulatory and educational approaches.

Includes a severability clause.

Section 3.

Requires initial appointments to the Commission to be made and the first meeting to be convened by September 1, 2026. Requires the Commission to take specified actions during its first year. Requires the Commission to develop a phased implementation plan that: (1) prioritizes addressing the most serious harms, (2) accommodates different compliance timelines based on platform size, (3) allows for industry adjustment to new requirements, and (4) includes benchmarks for measuring progress. Requires the Commission, every three years, to: (1) review its activities and impact, (2) assess changing technological landscapes and emerging challenges, (3) revise strategic priorities and approaches as needed, and (4) recommend statutory amendments to maintain effectiveness.

Section 4.

Enacts new GS 143B-1209 establishing the Cyberbullying Unit (Unit) within the State Bureau of Investigation to protect children online and aid in the enforcement of new Article 11. Requires the Unit, in addition to other duties, to operate a toll-free number and website on online child safety and cyberbullying.

Section 5.

Effective July 1, 2026, appropriates from the General Fund to the Fund $6 million in recurring funds for 2026-27 to fund its work as provided by the act. These funds shall not revert at the end of the fiscal biennium. Effective July 1, 2026, appropriates from the General Fund to the Fund $10 million for 2026-27 to fund its work as provided by the act. These funds shall not revert at the end of the fiscal biennium.

Effective July 1, 2026, appropriates from the General Fund to the State Bureau of Investigation (SBI) $2 million for 2026-27 to create the Cyberbullying Unit at the SBI. These funds shall not revert at the end of the fiscal biennium.

Section 6.

Effective July 1, 2026, except as otherwise provided. Specifies that the substantive requirements and provisions of new GS Chapter 114B apply to acts or omissions occurring on or after December 1, 2026.