Revise Child Passenger Restraint Systems Law.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 3
HOUSE BILL 368
Committee Substitute Favorable 4/9/25
Senate Judiciary Committee Substitute Adopted 6/16/26

Short Title: Revise Child Passenger Restraint Systems Law. (Public)
Sponsors:
Referred to:
March 12, 2025
*H368-v-3*
A BILL TO BE ENTITLED 1
AN ACT TO REVISE THE LAW REGARDING THE M ANDATORY USE OF CHIL D 2
PASSENGER RESTRAINT SYSTEMS AND TO ADD A RBITRATION 3
REQUIREMENTS FOR UNI NSURED AND UNDERINSU RED MOTOR VEHICLE 4
LIABILITY POLICIES. 5
The General Assembly of North Carolina enacts: 6
SECTION 1.(a) G.S. 20-137.1 reads as rewritten: 7
"§ 20-137.1. Child restraint systems required. 8
(a) Every driver who is transporting one or more passengers of less than 16 years of age 9
shall have all such passengers properly secured in a child passenger restraint system or seat belt 10
which meets federal standards applicable at the time of its manufacture. For purposes of this 11
section, a "child passenger restraint system" means any device designed to restrain or position a 12
child in a motor vehicle, including a booster seat. 13
(a1) A child less than eight years of age and less than 80 pounds in weight 57 inches in 14
height shall be properly secured in a weight-appropriate height and weight appropriate child 15
passenger restraint system. In vehicles equipped with an active passenger -side front air bag, if 16
the vehicle has a rear seat, a child less than five years of age and less than 40 pounds in weight 17
shall be properly secured in a rear seat, unless the child restraint system is designed for use with 18
air bags. If system as follows: 19
(1) Beginning as a newborn, a child shall be properly secured in a rear -facing 20
child passenger restraint system with transition to a forward-facing system 21
according to the manufacturer 's instructions related to the child 's height and 22
weight requirements for use of the system as indicated by the federally 23
required label on the car seat which states those requirements. 24
(2) The child shall be properly secured in a child passenger restraint system in a 25
rear seat of a vehicle and may only be positioned in the front seat of a vehicle 26
if one of the following exceptions applies: 27
a. The vehicle does not have a rear seat. However, under no 28
circumstances shall a child be placed in the front seat of a vehicle that 29
has an active front air bag using a rear-facing child passenger restraint 30
system. When height and weight requirements for use of a child 31
passenger restraint system require the seat to be rear -facing, the seat 32
must be secured in a vehicle with a rear seat. 33
b. The vehicle is not equipped with an active passenger-side front air bag. 34
General Assembly Of North Carolina Session 2025
Page 2 House Bill 368-Third Edition
c. The child passenger restraint system is designed for use with front air 1
bags when used according to the manufacturer 's instructions as 2
indicated by the federally required label on the car seat. 3
(a2) A driver may satisfy the requirements of this section by properly securing a child 4
passenger with a seat belt as follows: 5
(1) Notwithstanding subsection (a1) of this section, if no seating position 6
equipped with a lap and shoulder belt to properly secure the 7
weight-appropriate child passenger restraint system is available, a child less 8
than eight years of age and between at least 40 and 80 pounds may be 9
restrained by a properly fitted lap belt only. 10
(2) A child who is at least eight years of age or 57 inches in height may be 11
restrained by a properly secured lap and shoulder belt. For purposes of this 12
subdivision, a lap and shoulder belt are properly secured if, when fastened, all 13
of the following apply: 14
a. The lap belt fits across the child 's thighs and hips and not across the 15
child's abdomen. 16
b. The shoulder belt crosses the child's body diagonally at approximately 17
the mid-point of the child's shoulder and the center of the child's chest. 18
c. The child is able to sit with the child 's back straight against the 19
vehicle's seat back cushion and with the child 's knees bent over the 20
vehicle's seat edge without slouching. 21
…." 22
SECTION 1.(b) This section becomes effective December 1, 2026, and applies to 23
offenses committed on or after that date. 24
SECTION 2.(a) G.S. 20-279.21 reads as rewritten: 25
"§ 20-279.21. "Motor vehicle liability policy" defined. 26
… 27
(f) Every motor vehicle liability policy shall be subject to the following provisions which 28
need not be contained therein: 29
… 30
(5) For any uninsured or underinsured claim under a policy, if the insured and the 31
insurer do not agree whether the insured is legally entitled to recover 32
compensatory damages from the owner of an uninsured or underinsured motor 33
vehicle or the amount of compensatory damages, then the insured may 34
demand to settle these disputes by arbitration. 35
a. If an insured files a lawsuit against the insurer or the owner or operator 36
of an uninsured or underinsured vehicle seeking damages that are 37
subject to a claim for uninsured or underinsured motorist coverage 38
under the policy, the insured shall have the right to demand arbitration 39
only if both of the following apply: 40
1. The suit is filed within the time limit required by the law of the 41
state where the acci dent occurred for filing a lawsuit against 42
the owner or operator of the uninsured or underinsured motor 43
vehicle for the damages arising out of the accident. 44
2. The insured gives the insurer a written demand for arbitration 45
within 30 days after the filing of the lawsuit. 46
b. For underinsured motorist claims, the insured shall provide the insurer 47
notice of the arbitration demand within 30 days after the latest of the 48
following: 49
General Assembly Of North Carolina Session 2025
House Bill 368-Third Edition Page 3
1. The date the insurer advance s payment to the insured in an 1
amount equal to a tentative settlement between the insured and 2
the owner or operator of the underinsured motor vehicle. 3
2. The date any applicable liability bonds or policies have been 4
exhausted by payments of judgments or settlements. 5
3. The filing of a lawsuit pursuant to sub -subdivision a. of this 6
subdivision. 7
c. Unless the insured and insurer agree on a different procedure, the 8
following procedures shall be used for all arbitrations under this 9
subdivision: 10
1. Each party will select a competent arbitrator. The two selected 11
arbitrators will select a third competent and disinterested 12
arbitrator. 13
2. If the third arbitrator is not selected within 30 days, the insured 14
or insurer may request a judge of a court of record to name one. 15
The court must be in the county and state in which arbitration 16
is pending. 17
3. Each party will pay its chosen arbitrator and half of all other 18
expenses of arbitration. Fees to lawyers and expert witnesses 19
are not considered arbitration expen ses and are to be paid by 20
the hiring party. 21
4. Unless the insured and insurer agree otherwise, arbitration will 22
occur in the county and state where the insured resides. 23
Arbitration will be subject to the rules of procedure and 24
evidence in the county and state. The arbitrators will resolve 25
the issues. A written decision on which two arbitrators agree is 26
binding on the insured and insurer. 27
5. Judgment upon award may be entered in any proper court. 28
…." 29
SECTION 2.(b) This section is effective whe n it becomes law and applies to any 30
claim for uninsured motorist coverage or underinsured motorist coverage that is pending and has 31
not been finally adjudicated or settled as of that date. 32
SECTION 3. Except as otherwise provided, this act is effective when it becomes 33
law. 34