Enacts GS 131D-10.2C, limiting the allowed number of children in a family foster home to five children at any time. Specifies that these five children include the foster parent's own children, children placed for family foster care, licensed capacity for in-home day care children, children kept for babysitting, or any other children residing in the home. Specifies that children kept for in-home day care and babysitting are considered residents of the home. Exempts family foster homes from this requirement if written documentation is submitted to the licensing authority for family foster care that siblings will be placed together and that the foster home complies with all other licensure requirements. Requires the foster agreement to evaluate the foster parent’s skill, stamina, and ability to care for the children. Allows for foster family homes that would otherwise qualify but for the presence of more than five children in the home, to apply for licensure.

Requires the Social Services Commission (Commission) to adopt temporary rules to implement the act. Requires the Department of Health and Human Services, Division of Social Services, or appropriate agency to submit an updated State Plan to the United States Secretary of Health and Human Services for approval in accordance with 42 U.S.C. § 671 to maintain federal funding for foster care maintenance payments if necessary to implement the act.

Specifies that GS 131D-10.2C is effective October 1, 2023, if no State Plan amendment is required. If an amendment is required, then GS 131D-10.2C is effective on the date that that the family foster care home rule is changed, as approved by the United States Secretary of Health and Human Services. Requires the Secretary of Department of Health and Human Services to report to the Revisor of Statutes when the family foster care home is changed under the act, approved by State Plan amendment and the specific date approved for that change, or on October 1, 2023, as applicable.