Senate committee substitute makes the following changes to the 1st edition.

Amends GS 110-106.2(b)(1) to delete provision that the Department of Health and Human Services (DHHS) must issue a North Carolina child care license to the DOD-certified child care facility upon the filing by the DOD-certified child care facility of a notice of intent to operate a child care facility.

Amends GS 110-106.2 to clarify that facilities that meet all the requirements of this section are exempt from all other requirements of GS Chapter 110, Article 7, Child Care Facilities, and are not to be subject to licensure. Provides that for the purposes of the North Carolina Subsidized Child Care Program, the Department of Defense (DOD)-certified child care facilities are reimbursed under the NC Subsidized Child Care Program as follows: (1) DOD-certified child care facilities that are accredited by the National Association for the Education of Young Children (NAEYC) must be reimbursed at the five-star rated license rate and (2) all other DOD-certified child care facilities shall be reimbursed at the four-star rated license rate.

Deletes additional provisions concerning provisional licensure, lead teacher qualification, and administrator employee qualifications. Deletes provision that prohibits DHHS from assessing a licensure fee. Removes language that provides that a revocation of DOD certification results in termination of a NC child care license.