Identical to H 507, filed 3/25/25.

Contains whereas clauses.

Section 1.

Titles the act the Child First Act (Act) and expresses the six purposes of the Act.

Section 2.

Appropriates $50 million from the General Fund to the Department of Health and Human Services (DHHS), Division of Child Development and Early Education (Division) in recurring funds for each year of the 2025-27 fiscal biennium to be allocated to the North Carolina Child Care Subsidy Program (CCSP) to be used for the three specified purposes. Effective July 1, 2025.

Appropriates $15 million from the General Fund to the Division for each year of the 2025-27 fiscal biennium to be used to provide grants for start-up costs associated with the establishment of new child care facilities in rural or underserved areas of the State, particularly those areas within a child care desert or low performing and high poverty district. Provides for an application process established by the Division under its eligibility criteria.  Requires the Division to submit a report by December 1, 2026, and December 1, 2027, to the specified NCGA committee and the Fiscal Research Division (FRD) on any grants awarded, including the three matters specified.

Establishes the Child Care Facilities Investment Fund Program (Fund) as a non-reverting special fund in the Department of Commerce (DOC) to provide loans at below-market interest rates with structured repayment terms to finance the costs of expanding or upgrading existing child care facilities in rural or underserved areas of the State, particularly those areas in a child care desert or low performing and high poverty district. Tasks DOC with administering the Fund, as described, including establishing an application period and process, evaluating an applicant’s ability to repay a loan, and implementing approved loan agreements.  Annually by December 1, beginning December 1, 2027, requires DOC to report to the specified NCGA committees and the FRD on any loans provided by the Fund, including at least the three specified matters. Effective July 1, 2025, appropriates $20 million from the General Fund to DOC in recurring funds for each year of the 2025-27 fiscal biennium to be allocated to the fund.

Enacts GS 105-163.20, concerning employer-provided child care credits, as follows. Allows a qualifying business (defined) that is allowed a credit against federal income tax for qualified child care expenditures under section 45F of the IRS Code a credit against the tax imposed by Part 1, Part 1A, or Part 2 of Article 4 of GS Chapter 105, as appropriate, the amount allowed under section 45F of the Code. In order to claim the credit allowed by this section, directs the taxpayer to provide with the tax return the information required by the Secretary. Provides for reductions on the credit for nonresidents or part-year residents. Bars a credit from being allowed for amounts deducted in calculating North Carolina taxable income. Does not allow for the credit to exceed the tax imposed, as described, except for payments of tax made by or on behalf of the taxpayer. Effective for taxable years beginning on or after January 1, 2026.

Section 3.

Directs DHHS’s Division of Health Benefits (DHB) to seek approval from the Centers for Medicare and Medicaid Services (CMS) to implement Medicaid coverage of certain healthcare services provided by a doula, as developed by DHB. Directs the coverage to be implement as soon as practicable upon approval by CMS. Requires DHB to report to the specified NCGA committee by no later than March 1, 2026, on the details of the Medicaid coverage of healthcare services provided by a doula, the specific reimbursement for these services, and the estimated recurring cost to the State of providing this coverage.

Effective July 1, 2025, appropriates $1 million from the General Fund to DHB in recurring funds for each year of the 2025-27 fiscal biennium to implement the Medicaid-related changes outlined in the act. Specifies that the State funds provide a State match for the described recurring federal funds, which are appropriated to DHB to for costs associated with the Medicaid-related changes outlined in the act.

Effective July 1, 2025, appropriates $500,000 from the General Fund to DHB in recurring funds for each year of the 2025-27 fiscal biennium to be used to provide training, support services, and technical assistance to the doula workforce.

Effective July 1, 2025, appropriates $1 million from the General Fund to the Division in recurring funds for each year of the 2025-27 fiscal biennium to be used to provide mental health training for child care workers, including suicide prevention strategies.

Effective July 1, 2025, appropriates $2.5 million from the General Fund to the Division for each year of the 2025-27 fiscal biennium to be used to provide for telehealth services for mental health screenings in child care centers.

Effective July 1, 2025, appropriates $65,490,706 from the General Fund to the Department of Public Instruction (DPI) in recurring funds for each year of the 2025-27 fiscal biennium to be used to increase the School Health Personnel Allotment as established in GS 115C-316.5.

Amends GS 20-137.1, concerning the use of child restraint systems in vehicles, as follows. Defines child passenger restraint system as any device designed to restrain or position a child in a motor vehicle, including a booster seat. Under the current law, children younger than age eight and less than 80 pounds must be secured in a weight-appropriate child passenger restraint system, with specified provisions applicable when a vehicle has an active passenger side front air bag, and when no seating position equipped with a lap and shoulder belt to properly secure the child passenger restraint system is available. Removes these provisions and now requires the following instead. Requires a child younger than age eight and less than 57 inches in height to be secured in a height- and weight-appropriate child passenger restraint system. Requires, beginning as a newborn, for a child to be properly secured in a rear-facing child passenger restraint system with transition to a forward-facing system according to the manufacturer's instructions related to the child's height and weight requirements for use of the system as indicated by label on the car seat. Requires the child to be secured in a child passenger restraint system in a rear seat unless at least one of three circumstances exist, including when the system is designed for use with air bags. Prohibits placing a child in a rear-facing child passenger restraint system in a front passenger seat that has an active front air bag. Allows a child to be properly secured with a seat belt as follows: (1) a child less than eight years old, 40-80 pounds, and less than 57 inches tall in height may be restrained by a properly fitted lap belt, if no seating position equipped with a lap and shoulder belt to properly secure the weight-appropriate child passenger restraint system is available and (2) a child at least eight years old or 57 inches in height may be restrained by a properly secured lap and shoulder belt (sets out conditions met in order for a lap and shoulder belt to be considered properly secured).

Applies to offenses committed on or after December 1, 2025.

Removes requirement that firearm is stored or left in a condition where it can be discharged as one of the acts required for liability under GS 14-315.1 (storage of firearms to protect minors) and makes technical changes. Effective December 1, 2025, and applies to offenses committed on or after that date.

Expands the information that DHHS must provide to each operator of a child care facilities in GS 110-102 for distribution to the parents of each child receiving child care in the facility to include a summary of GS 14-315.1, to include information that the Department of Public Safety (DPS) has additional information on best practices for firearm safety and storage. Makes conforming changes. Effective December 1, 2025.

Effective July 1, 2025, appropriates $2.16 million from the General Fund to the DPS in recurring funds for 2025-26 to be used for costs associated with maintaining the NC SAFE (Secure All Firearms Effectively) initiative.

Amends GS 14-313 (concerning youth access to tobacco products) to raise the age to access tobacco and vapor products from 18 to 21. Effective December 1, 2025, and applies to offenses committed on or after that date.

Amends GS 105-113.39A (concerning the administrative provisions of the tax on tobacco provisions other than cigarettes) to add the following as an another location for which a wholesaler or retail dealer must obtain a vapor products license: each location from where a retail dealer receives or stores tax-paid vapor products if the location is a location other than the location where a wholesale dealer or a retail dealer receives or stores non-tax-paid vapor products. Effective December 1, 2025.

Enacts GS 14-313.5, concerning youth access to cannabis products, as follows. Defines cannabis product, distribute, and proof of age. Makes it a Class 2 misdemeanor for any person to distribute, or aid, assist, or abet any other person in distributing cannabis products to any person under the age of 21 years, or if any person purchases cannabis products on behalf of a person under the age of 21 years. Provides for posting of prominent signage with fines of $25 and $75, respectively for first and subsequent violations.  Requires a seller of cannabis products to require proof of age if they have reasonable grounds to believe the person is under age 21, with failure to demand such proof if the person is younger than 21 a Class 2 misdemeanor. Requires training of retail employees by retail distributors. Sets forth three defenses including (1) the person reasonably relied upon proof of age, as described, (2) the person relied upon the electronic system established by the DMV, and (3) the person relied on a biometric system, as described. Bans distribution of cannabis products in vending machines except for machines that are permitted (1) in any establishment which is open only to persons years of age and older or (2) in any establishment if the vending machine is under the continuous control of the owner or  licensee of the premises or an employee thereof and can be operated only upon activation by the  owner, licensee, or employee prior to each purchase and the vending machine is not accessible  to the public when the establishment is closed. Establishes the same proof of age requirements discussed above along with making violations a Class 2 misdemeanor. Establishes proof that the person demanded, was shown, and reasonably relied upon proof of age as a defense. Requires persons engaged in the distribution of cannabis products through the internet or other remote sales methods to perform an age verification through an independent, third-party age verification service, as specified.  Makes it a Class 2 misdemeanor for a person under 21 to purchase, attempt to purchase, or accept receipt of cannabis products. Exempts employees purchasing or accepting receipt of cannabis products when required in the performance of their duties. Specifies that any person charged with a misdemeanor under is qualified for deferred prosecution or a conditional discharge provided the defendant has not previously been placed on probation for a violation of this section and so states under oath. Effective December 1, 2025, and applies to offenses committed on or after that date.

Enacts GS 14-313.6, requiring cannabis products sold or distributed in this State to be sold or distributed in child-resistant packaging as described. Effective October 1, 2025, and applies to offenses committed on or after that date.

Enacts GS 14-313.7 preventing a retail store selling cannabis form operating from within 1,000 yards of a public school, nonpublic school, or child care center. 

Enacts Article 51A, concerning child safety online, in GS Chapter 66, as follows. Defines social media platform as an online service or website with users in this State that enables users to create, share, and interact with content and to participate in social networking by connecting with other users. States findings of the General Assembly.

Enacts GS 66-505, concerning child safety protections online, as follows. Prevents a person operating a social media platform from knowingly employing or implementing algorithmic features, notification systems, or interface designs specifically engineered to promote compulsive usage patterns among users in this State who are under 18 years of age. Lists four practices that are unlawful when employed or implemented by a person operating a social media platform for any user in this State under 18 years of age, including infinite scroll mechanisms, autoplay features, and variable reward mechanisms designed to increase engagement through unpredictable content delivery.  Specifies five unlawful practices by social media platforms for users under 18 years of age including collecting, processing or storing personal data of those users for the described purposes or selling such data to third parties without explicit disclosure of the specific purposes and recipients or retain such data beyond the period necessary for the explicitly authorized purpose (includes publication of an annual Child Safety Transparency Report, as described, along with submission of those reports and publication on its website as prohibited practices, but appears to intend that those practices be required instead). Makes violations a Class 1 misdemeanor. Directs that each item of prohibited content constitutes a separate violation.

Enacts GS 66-507, concerning protection from artificial intelligence (AI) and deep fakes for exploitative purposes. Prevents persons from knowingly engaging in three described courses of conduct, including generating, producing or creating any image, video, or audio recording that depicts a person under 18 years of age in a sexually explicit manner, a violent or abusive context, or in any situation intended to cause reputational harm using AI or digital manipulation technology, distributing or sharing such content as described, or modifying existing content depicting an actual minor through AI or digital manipulation to create a substantially altered representation of that minor. Makes violations a Class H felony if it involves creation or distribution of sexually explicit deep fake content depicting a minor. Makes it a Class I Felony if the violation involves possession of such content with intent to distribute. Directs that each item of prohibited content constitutes a separate violation. Contains severability clause. 

Effective December 1, 2025, and applies to acts and omissions committed on or after that date,

Section 4.

Adds Part 2A, “Fetal and Infant Mortality Review Team” to Article 5 of GS Chapter 130A.

Excludes the review of a fetal death that is the result of a voluntary or therapeutic termination of pregnancy from new Part 2A. Defines fetal death, infant, and team.

Enacts GS 130A-128.7 creating a 27-member statewide Fetal and Infant Mortality Review Team (Team) within the Division to ensure that certain fetal and infant deaths occurring in the State are analyzed in a systematic way, with the specific goal of decreasing the incidence of preventable fetal and infant death. Provides for appointment by the described authorities, co-chairs, additional members upon invitation by a majority of the Team, ex officio members, and vacancies.

Grants the Team ten powers and duties in GS 130A-128.8, including (1) to provide technical support to any established local fetal and infant mortality review teams and local child fatality review teams; (2) to develop or revise operating procedures as described; and (3) to make recommendations concerning training, assessment of service systems and community resources to promote the health and well-being of women, infants and family, plans for implementing changes to existing services, programs or organizations, as described.

Enacts GS 130A-128.9, requiring the Team to review every reported fetal and infant death in the state (with exceptions) falling within Part 2A in coordination with local teams after a law enforcement investigation or criminal prosecution has concluded. Provides for inspection and copying of records pertaining to fetal or infant death.

Enacts GS 130A-128.10, allowing the Chief Medical or designee to access information maintained by the district attorney, presentence reports for crimes that led to the death of a fetus or infant, and the described information from healthcare providers on behalf of the Team.  Requires the Commission for Public Health (CPH) and the Attorney General to adopt rules to implement GS 130A-128.10(c) (appears to intend GS 130A-128.10).

Enacts GS 130A-128.11 designating information and records obtained or created by or on behalf of the Team regarding a review as confidential and exempt from State public records law and other described compulsory process. Provides deidentification of healthcare providers in records provided to the Team for review. Permits Team findings to be disclosed in a statistical or other deidentified manner. Specifies that portions of Team meetings where individual or fetal deaths are discussed are not subject to the State’s open meetings act.  Requires Team members to sign a sworn statement honoring the confidentiality of the information at closed meetings as specified, punishable as a Class 3 misdemeanor if violated.

Enacts GS 130A-128.12 requiring, upon notification of a fetal or infant death, any State or local government agency maintaining records on the fetus or infant or the fetus or infant's family that are periodically purged to retain the records for the longer of 12 months or until the Team has completed its review of the case. Provides for triennial statistical data as described made available to the General Assembly, Governor, and divisions of DDHS in new GS 130A-128.13. Immunizes Team members from civil liability for any act or omission made in connection with their participation in a review, unless that act or omission was the result of gross negligence or willful misconduct in GS 130A-128.14. Provides immunity to any organization, institution, or person that furnishes information, data, testimony, reports, or records to the Team as part of a review, unless that act or omission was the result of gross negligence or willful misconduct.

Effective December 1, 2025.

Effective July 1, 2025, appropriates $250,000 from the General Fund to DPH for each year of the 2025-27 fiscal biennium to be used to fund expansion of the Safe Sleep North Carolina Campaign administered by the University of North Carolina Collaborative for Maternal and Infant Health, with the goal of strengthening the adoption of infant safe sleep practices across the State that reduce the risk of Sudden Infant Death Syndrome (SIDS) and other infant sleep-related deaths.

Section 5.

Effective July 1, 2025, appropriates $5 million from the General Fund to DHHS in recurring funds for each year of the 2025-27 fiscal biennium to be used for the two described purposes.

Enacts GS 115D-40.7, directing the Community Colleges System Office (Office) to establish and administer a program to provide tuition stipends to any student attending a community college who is participating in an apprenticeship related to child care. Provides for priority of recipients to those who demonstrate the most need. If funds are available, directs that the stipends of up to $2,500 per academic year and for up to two year per student recipient.

Section 6.

Requires DHHS and DPI to establish and use public-private partnerships to implement the programs and activities authorized by the act.

Section 7.

Establishes an eleven-member Child Care Innovation Task Force (CCITF) within the Division for budgetary purposes only to monitor the State’s progress in implementing the provisions of the act and to advise the General Assembly on strategies for improving the child care landscape in the State. Provides for membership, vacancies and a chair. Grants CCTIF five powers and duties, as described. Requires annually, by April 1, for CCTIF to submit a written report on its activities, findings, and recommendations to the specified NCGA committees and the FRD.

Section 8.

Contains severability clause.