Part I.

States the Part’s purpose is to provide alternative pathways to career advancement in licensed child care.  Accordingly, directs the North Carolina Partnership for Children, Inc., (Partnership) in collaboration with the North Carolina Community Colleges System Office (Office), to develop and implement a two-year pilot program that expands the child care workforce academies currently operating in Johnston and Wayne Counties (Program). Requires the Office and Partnership to (1) select ten additional local partnerships to participate in the pilot program with at least one local partnership selected from each of the four local partnership regions of the statewide Smart Start network and (2) ensure that graduates meet all requirements to be credentialed as lead teachers in child care in the State. Sets enrollment metrics of at least 10 students per course, with a goal of enrolling at least 15 students. Provides for hours of operations, run times. Directs that the academies are free to applicants. Specifies that upon successful completion of the academy, each student will receive a North Carolina Early Childhood Credential that will enable the student to begin teaching in a licensed child care program immediately upon graduation. Authorizes one-time stipends of at least $150 to graduates and additional $500 one-time stipend upon completion of one year of employment as a lead teacher in a licensed child care program in the State. Requires the Partnership, in collaborations with local partnerships and participating community college to submit a progress report to the specified NCGA committee and division by March 31, 2027, with a final report due by December 31, 2027.

Appropriates $1.476 million from the General Fund to the Department of Health and Human Services (DHHS), Division of Child Development and Early Education (Division) for 2026-27 to be allocated to the Partnership in the amounts specified for the five uses described.

Requires the Division to establish a Provisional Early Childhood Care Credential for individuals who are 16 or 17 years of age and preparing to work in licensed child care programs in this State so long as the individual completes an approved early childhood education course and a series of micro-credentials demonstrating competency in required child care and health and safety trainings. Instructs the NC Community Colleges System, the Department of Public Instruction (DPI), the NC Center for Afterschool Programs, and the Division to collaborate to develop the micro credential opportunities by December 31, 2026. Provides for creation of pre-apprenticeship and apprenticeship pathways aligned with the Provisional Early Childhood Credential. Specifies that the Provisional Early Childhood Credential enables those individuals to work in any out-of-school and summer programs, including those located at licensed child care facilities, as group leaders according to the specified staff-child ratios and group sizes. Requires the Division to issue an individual holding a Provisional Early Childhood Credential a full credential upon notification by the individual that they have turned 18.

Part II.

Appropriates $15 million from the ARPA Temporary Savings Fund to the Division for 2025-27 to be allocated to the Partnership to expand mental and behavioral health services for children, families, and staff in child care facility settings and out-of-school programs. Identifies budget codes wherein the Partnership must spend the funds appropriated. Directs the Partnership to distribute appropriated funds to local partnerships and specifies that the funds cannot supplement or supplant existing Smart Start partnership behavioral health spending. Provides that the funds remain available for the initiatives described until expended. Directs the Partnership to submit a progress report on the described mental and behavioral health initiatives to the specified legislative committee and division, and the DHHS Secretary, by March 15, 2027, and a final report by November 15, 2028. Details required content of the reports. Excludes funds allocated to the Partnership by the Division from specified state laws relating to: administrative cost requirements; child care services funding requirements; child care subsidy expansion requirements; and match requirements.

Amends GS 143B-168.15 to establish the North Carolina Partnership for Children, Inc., Special Fund (Fund) as a nonreverting fund in DHHS. Directs that all appropriations from the General Fund to DHHS for Smart Start and the Partnership be deposited in the Fund and be used by the Partnership and local partnerships exclusively as authorized by law. Specifies that all State funds allocated to local partnership do not revert but remain available. Grants the Partnership explicit authority to hold cash in excess of incurred expenditures at the end of each fiscal year up to $5 million. Requires the Partnership to annually provide the Division a financial status report for the preceding fiscal year as described. 

Part III.

Amends the qualifications for staff under the mandatory standards for licensure as a child care facility in GS 110-91(8) as follows. Authorizes a licensed child care center may use the combined education and experience of two staff persons to meet the requirements for a Level II or Level III administrator designation to obtain the same quality rating improvement system rating so long as the staff person who has the early childhood education and experience is assigned to the center and on-site at least 20 hours per week. Requires the Department to allow a child care center administrator to earn  the North Carolina Early Childhood Administration Credential without completing the specified coursework when the administrator has (i) an associate degree or higher in business administration or a related field or (ii) two years of verifiable business or administrative work experience.

Part IV.

Directs the Department of Insurance (DOI) to use a consulting firm, actuarial firm, a brokerage firm, or any combination thereof, to study the feasibility of establishing liability insurance coverage, including State-supported captive insurance, for North Carolina child care providers to provide liability insurance coverage to participating child care providers. Specifies seven matters that must be covered by the study. Directs DHHS to cooperate with DOI and any entity it has retained to conduct the study.  Requires DOI to submit a report to the specified NCGA committee with the study findings by June 1, 2027. Appropriates $350,000 from the General Fund to DOI for 2026-27 to fund the study.

Part V.

Increases the qualifying amounts of the Partnership’s bidding categories under Section 9D.5(e) of SL 2023-134 so that the lowest category is for amounts of $15,000 or less (currently, $5,000 or less) and the second category range is for amounts greater than $15,000 but less than $25,000. For amounts greater than $25,000 but less than $40,000 adds a solicitation requirement to the process. Makes technical change.

Part VI.

Effective July 1, 2026, unless otherwise provided.