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

Modifies the legislative findings and directives to the Department of Health and Human Services (DHHS), Division of Child Development and Early Education (Division) as follows. No longer specifically recognizes the importance of the child care stabilization grants. Directs the Division to develop a proposed plan (was plan) by May 1, 2026, to separate the quality rating improvement system (QRIS) from the requirements and payments for participation in the State subsidized child care program using the market rate study required by the act and make recommendations on its implementation while meeting the federal Child Care and Development Fund requirements. No longer explicitly allows for the continuation of the star-rating system. Replaces the reporting requirements, instead requiring the Division to submit the proposed plan to the specified NCGA committee chairs, committee, and division by May 1, 2026. Specifies that the current plan is effective until the NCGA and federal government approves and adopts the proposed plan and any amendments.

Explicitly directs the Division to complete a new market rate study made available to the public by May 1, 2026. Requires the study to include potential rates that are not segmented by star-rating and new market rates for the QRIS system (previously required to ensure inclusion of recommended rates that are not segmented by star-rating). Now prohibits implementing new reimbursement rates unless approved by the federal Administration of Children and Families and authorized by the NCGA (was conditioned on NCGA authorization only).

Deletes the proposed changes to Section 9D.3 of SL 2023-134 and GS 110-90 (concerning child care subsidy rates). Eliminates the directive to the NC Child Care Commission (Commission) to adopt, amend, or repeal any rules regarding separating the star-rating system from requirements and payments for reimbursement for subsidized child care.

Deletes the proposed changes to GS 110-90 (concerning rated licenses issued to child care facilities).

Modifies the proposed changes to GS 110-91, moving the provisions of proposed subdivision (6a) to the section's body and extending those provisions to deem buildings and grounds approved for school occupancy housing elementary or middle school to have met space and equipment requirements for a licensed child care facility when serving the same or subset of the same school-aged children in an out-of-school child care program. Amends subdivision (6) to eliminate the requirement that playgrounds and athletic fields that do not meet licensure standards of the Commission be noted on the program's licensure and rating information.

Modifies the proposed changes to GS 110-91(7)a (staff/child ratios for childcare centers), as follows. Specifies that each lead teacher may support no more than two groups. Deletes the proposed change to deem, for groups of children 1 year of age or older, the staff/child ratio during nap time compliant with the requirements of rules adopted by the Commission if three criteria were met. Adds a new provision authorizing a child care center director to assign a floater to relive one teacher at a time for 0 to 24 month old age groups if the floater meets federal requirements to care for infants or holds an Early Education credential or higher educational level. 

Adds a new section directing the Commission to develop standards for infant and toddler care provider staff in licensed child care facilities caring for infants and toddlers from birth to 24 months old which provides staff the option to either (1) meet all of the federal health and safety requirements tied to the Child Care and Development Block Grant (CCDBG) funding, including CPR and SIDS training and age-appropriate health and safety training requirements set by the Commission, or (2) hold an Early Childhood credential.

Requires the Division to take the described steps and have the Weikart Program available for applicants not later than one year (was, six months) after the act becomes law.

Adds a directive for the Commission to adopt or amend rules to ensure uniformity and consistency in application of the act's provisions.