Child Care Regulatory Reforms.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2025-36
HOUSE BILL 412

*H412-v-7*
AN ACT TO MAKE CHILD CARE REGULATORY REF ORMS; AND TO MAKE
BUILDING CODE REVISIONS.

The General Assembly of North Carolina enacts:

PART I. DECOUPLE RATED LICENSE AND SUBSIDIZED CHILD CARE
SECTION 1.(a) The General Assembly recognizes the need to balance maintaining
critical health, safety, and welfare standards for child care, as well as a well -established rating
system used for informational purposes, with the need to move toward maximizing State fund s
for child care and increasing the supply of child care from State -funded sources. The General
Assembly further recognizes the importance of weighing the need to decrease the cost of child
care through deregulatory actions and at the same time maintain ch ild care subsidy
reimbursement rates. The purpose of this provision, in part, is to encourage the business
community to partner with the State in achieving this goal.
SECTION 1.(b) To that end, by May 1, 2026, the Department of Health and Human
Services, Division of Child Development and Early Education (Division), shall develop a
proposed plan to separate the quality rating improvement system (QRIS) from the requirements
and payments for participation in the State -subsidized child care program using the m arket rate
study required by Section 1(c) of this act and make recommendations on implementation of the
plan while meeting the federal Child Care and Development Fund requirements including a
quality standard measurement. The Division should report any dif ference in the proposed plan
and the current reimbursement rate. The Division shall submit the proposed plan to the chairs of
the House and Senate Appropriations Committees, the chairs of the House and Senate
Appropriations Committees on Health and Human S ervices, the Joint Legislative Oversight
Committee on Health and Human Services, and the Fiscal Research Division by May 1, 2026.
The current plan will stay in full force and effect until such time as the General Assembly first
considers and approves and adopts the proposed plan and any amendments to that plan and then
the federal government approves the proposed plan and any amendments. The Division should
also include an update on the QRIS Modernization rules process under S.L. 2024-34.
SECTION 1.(c) The Division shall complete a new market rate study by May 1,
2026. This market rate study shall be made available to the public by May 1, 2026. The Division
shall ensure that the market rate study includes potential rates that are not segmented by
star-rating and new market rates for the QRIS system. The Division shall not implement new
reimbursement rates unless approved by the federal Administration of Children and Families and
authorized to do so by the General Assembly.
SECTION 1.(d) Nothing in this sect ion shall be construed as impacting the
star-rating requirements for the NC Prekindergarten (NC Pre-K) program.

PART II. REGULATORY CHANGES
SECTION 2. G.S. 110-86(5a) reads as rewritten:

Page 2 Session Law 2025-36 House Bill 412
"(5a) Lead teacher. – An individual who is responsible for planning and
implementing the daily program of activities for a group no more than two
groups of children in a child care facility."
SECTION 5.(a) G.S. 110-91 reads as rewritten:
"§ 110-91. Mandatory standards for a license.
All child care facilities shall comply with all State laws and federal laws and local ordinances
that pertain to child health, safety, and welfare. Except as otherwise provided in this Article, the
standards in this section shall be complied with by all child care facilities. However, none
Notwithstanding any provision of law or rule to the contrary, any building and grounds which
are currently approved for school occupancy and which house a public or private elementary or
middle school shall be deemed to have met the space and equipment, sanitation, fire, and building
code requirements for a licensed child care facility when the building and grounds are serving
the same, or a subset of the same, school -age children in an out -of-school child care program.
None of the standards in this secti on apply to the school -age children of the operator of a child
care facility but do apply to the preschool-age children of the operator. Children 13 years of age
or older may receive child care on a voluntary basis provided all applicable required standard s
are met. The standards in this section, along with any other applicable State laws and federal laws
or local ordinances, shall be the required standards for the issuance of a license by the Secretary
under the policies and procedures of the Commission ex cept that the Commission may, in its
discretion, adopt less stringent standards for the licensing of facilities which provide care on a
temporary, part-time, drop-in, seasonal, after-school or other than a full-time basis.
…
(6) Space and Equipment Requirements. – There shall be no less than 25 square
feet of indoor space for each child for which a child care center is licensed,
exclusive of closets, passageways, kitchens, and bathrooms, and this floor
space shall provide during rest periods 200 cubic feet of airspace per child for
which the center is licensed. There shall be adequate outdoor play area for
each child under rules adopted by the Commission which shall be related to
the size of center and the availability and location of outside land area. In n o
event shall the minimum required exceed 75 square feet per child. The outdoor
area shall be protected to assure the safety of the children receiving child care
by an adequate fence or other protection. A center operated in a public school
shall be deemed to have adequate fencing protection. A center operating
exclusively during the evening and early morning hours, between 6:00 P.M.
and 6:00 A.M., need not meet the outdoor play area requirements mandated
by this subdivision.
Each child care facility shall provide indoor area equipment and
furnishings that are child size, sturdy, safe, and in good repair. Each child care
facility that provides outdoor area equipment and furnishings shall provide
outdoor area equipment and furnishings that are child size, stu rdy, free of
hazards that pose a threat of serious injury to children while engaged in normal
play activities, and in good repair. The Commission shall adopt standards to
establish minimum requirements for equipment appropriate for the size of
child care facility. Space shall be available for proper storage of beds, cribs,
mats, cots, sleeping garments, and linens as well as designated space for each
child's personal belongings.
The Division of Child Development of the Department of Health and
Human Service s shall establish and implement a policy that defines any
building which is currently approved for school occupancy and which houses
a public or private elementary or middle school to include the playgrounds
and athletic fields as part of the school building when that building is used to

House Bill 412 Session Law 2025-36 Page 3
serve school-age children in after-school out-of-school child care programs.
Playgrounds and athletic fields referenced in this section that do not meet
licensure standards promulgated by the North Carolina Child Care
Commission shall be noted on the program's licensure and rating information.
…."
SECTION 5.(b) The Child Care Commission shall adopt or amend any rules to
ensure uniformity and consistency in application of the exemptions for school -age children in
out-of-school child care programs as provided in this section.
SECTION 6. G.S. 110-91(7)a. reads as rewritten:
"a. The Commission shall adopt rules for child care centers regarding
staff-child ratios, group sizes and multi -age groupings other than for
infants and toddlers, provided that these rules shall be no less stringent
than those currently required for staff-child ratios as enacted in Section
156(e) of Chapter 757 of the 1985 Session Laws. Each lead teacher
shall support no more than two groups. In the circumstance in which a
lead teacher is responsible for two groups of children in a child care
facility, at least one other individual overseeing the group shall be
engaging in the North Carolina Early Childhood Credential
coursework or seeking job training with the goal of accomplishing the
five-year pathway to seek a future Lead Teacher qualification.
1. Except as otherwise provided in this subdivision, the
staff-child ratios and group sizes for infants and toddlers in
child care centers shall be no more than as follows:
Age Ratio Staff/Children Group Size
0 to 12 months 1/5 1015
12 to 24 months 1/6 1218
2 to 3 years 1/10 20.
No child care center shall care for more than 25 children in one
group. Child care centers providing care for 26 or more
children shall provide for two or more groups according to the
ages of children and shall provide separate supervisory
personnel and separate identifiable space for each group.
1a. If a child care center is operating under voluntary en hanced
requirements, the maximum group size for toddlers aged 2 to
3 years may be increased from 18 to 20 children when the child
care center maintains a 1/9 staff-child ratio.
1b. If a child care center is operating under the highest voluntary
enhanced requirements, the child care center may use the
following maximum group sizes for infants and toddlers when
the child care center maintains staff -child ratios as provided
herein:
Age Ratio Staff/Children Group Size
0 to 12 months 1/4 12
12 to 24 months 1/5 15
2 to 3 years 1/8 20.
…."
SECTION 7.(a) G.S. 110-91(8) reads as rewritten:
"(8) Qualifications for Staff. – Qualifications for child care staff are as follows:
a. All child care center administrators shall be at least 21 years of age.
All child care center administrato rs shall have the North Carolina
Early Childhood Administration Credential or its equivalent as

Page 4 Session Law 2025-36 House Bill 412
determined by the Department. Department or the School -Age
Administration Credential when exclusively providing school -age
child care. All child care administrators performing administrative
duties as of the date this act becomes law and child care administrators
who assume administrative duties at any time after this act becomes
law and until September 1, 1998, shall obtain the required credential
by September 1, 2000. Child care administrators who assume
administrative duties after September 1, 1998, shall begin working
toward the completion of the North Carolina Early Childhood
Administration Credential or its equivalent equivalent, or the
School-Age Administration Credential when exclusively providing
school-age child care, within six months after assuming administrative
duties and shall complete the credential or its equivalent within two
years after beginning work to complete the credential. Each child care
center shall be under the direction or supervision of a person meeting
these requirements. All staff counted toward meeting the required
staff-child ratio shall be at least 16 years of age, provided that persons
younger than 18 year s of age work under the direct supervision of a
credentialed staff person who is at least 21 years of age.
b. All lead teachers in a child care center shall have at least a North
Carolina Early Childhood Credential or its equivalent as determined
by the De partment. Lead teachers shall either (i) be enrolled in the
North Carolina Early Childhood Credential coursework or its
equivalent as determined by the Department within six months after
becoming employed as a lead teacher or within six months after this
act becomes law, whichever is later, and shall complete the credential
or its equivalent within 18 months after enrollment.enrollment or (ii)
have a minimum of five years of documented experience teaching in a
licensed child care facility in this State which shall be deemed
equivalent to the North Carolina Early Childhood Credential.
c. Only administrators and lead teachers in licensed child care centers are
required to have a North Carolina Early Childhood Credential or its
equivalent as determined by the Department. All other staff shall meet
the standards established by the Commission for their positions that do
not include a North Carolina Early Childhood Credential or its
equivalent as determined by the Department.
d. For child care centers licensed to care for 200 or more children, the
Department, in collaboration with the North Carolina Institute for
Early Childhood Professional Development, shall establish categories
to recognize the levels of education achieved by child care center
administrators and teachers who perform administrative functions.
The Department shall use these categories to establish appropriate
staffing based on the size of the center and the individual staff
responsibilities.
e. Effective January 1, 1998, an operator of a license d family child care
home shall be at least 21 years old and have a high school diploma or
its equivalent. Operators of a family child care home licensed prior to
January 1, 1998, shall be at least 18 years of age and literate. Literate
is defined as unders tanding licensing requirements and having the
ability to communicate with the family and relevant emergency

House Bill 412 Session Law 2025-36 Page 5
personnel. Any operator of a licensed family child care home shall be
the person on-site providing child care.
f. The Commission shall adopt standar ds to establish appropriate
qualifications for all staff in child care centers. These standards shall
reflect training, experience, education and credentialing and shall be
appropriate for the size center and the level of individual staff
responsibilities. It is the intent of this provision to guarantee that all
children in child care are cared for by qualified people. Pursuant to
G.S. 110-106, no requirements may interfere with the teachings or
doctrine of any established religious organization. The staff
qualification requirements of this subdivision do not apply to
religious-sponsored child care facilities pursuant to G.S. 110-106."
SECTION 8. Section 8 of S.L. 2024-34 is amended by adding a new subsection to
read:
"SECTION 8.(a1) In modifying the quality rating improvement system (QRIS), the Division
of Child Development and Early Education shall ensure a North Carolina Early Childhood
Credential based on five years of work experience in a licensed child care facility in this State is
treated as equivalent to when that credential is earned through other pathways for purposes of
awarding a star-rating."
SECTION 9. The Weikart Youth Program Quality Assessment ("Weikart Program")
shall be added as an assessment tool for evaluating out -of-school child care programs and
awarding of a star -rating. The Department of Health and Human Services, Division of Child
Development and Early Education, shall complete the necessary crosswalk evaluation of the
Weikart Program and have it available for applicants to use not later than one year after the date
this act becomes law.
SECTION 10. Notwithstanding any other provision of law, rule, or regulation, the
Department of Health and Human Services, Division of Child Development and Early Education
(Division), shall, for courses offered by a community college in the North Carolina Community
Colleges System (NCCCS), assign credit for continuing education courses on the same basis as
curriculum courses designated by NCCCS as equivalent to the continuing education courses for
the purpose of providing any credential offered by the Division.
SECTION 11. The Department of Health and Human Services, Division of Child
Development and Early Education, shall:
(1) Not later than December 1, 2025, and in consultation with the North Carolina
Community Colleges System, create a North Carolina School
Age/Out-of-School Care Credential that aligns with a new curriculum course
and continuing education course entitled "Introduction to School Age Care
and Education."
(2) Award the North Carolina Early Childhood Administration Credential or the
North Carolina Family Child Care Credential to individuals who have
successfully completed continuing education courses that are equivalent to
child care curriculum courses, as determi ned by the Community Colleges
System. The Community Colleges System shall ensure that the continuing
education courses are comparable to the corresponding curriculum courses in
course descriptions, competencies, and hour requirements and shall state the
credential that is to be awarded for each continuing education course.
SECTION 12.(a) The Commissioner of the Department of Insurance shall establish
a workgroup to examine the potential for developing group liability insurance plan opportunities
for all ch ild care providers and for all nongovernmental contractors that contract with the
Department of Health and Human Services and any county or local agency administering
programs of public assistance pursuant to Chapter 108A of the General Statutes for the provision

Page 6 Session Law 2025-36 House Bill 412
of services to minors which are licensed under Article 2 of Chapter 122C of the General Statutes
or Article 1A of Chapter 131D of the General Statutes. The workgroup shall consist of
representatives from all of the following:
(1) The Department of Insurance.
(2) The insurance industry.
(3) NC Licensed Child Care Association.
(4) The Department of Health and Human Services, Division of Child
Development and Early Education.
(5) The American Tort Reform Association.
(6) Benchmarks NC.
SECTION 12.(b) The workgroup shall develop findings and recommendations
related to at least the following:
(1) Potential methods for creating group liability insurance plan opportunities for
all child care providers.
(2) Reforms that could reduce group liability insurance plan premiums.
(3) Tort reforms that could reduce the liability damages of child care providers.
SECTION 12.(c) By January 1, 2026, the Department of Insurance shall report the
findings and recommendations of the workgroup to the Joint Legislative Overs ight Committee
on Health and Human Services, the Joint Legislative Oversight Committee on General
Government, and the Fiscal Research Division.
SECTION 13. The Child Care Commission shall adopt or amend any rules to ensure
uniformity and consistency in application of the provisions of this act.
SECTION 14. Article 7 of Chapter 110 of the General Statutes is amended by adding
a new section to read:
"§ 110-106.3. Exemption for certain Department of Defense family child care homes from
child care licensure requirements.
(a) The provisions of this Article shall not apply to a family child care home operating in
this State and located outside of the boundaries of a military installation if the family child care
home has a certificate issued by the United States Department of Defense (DOD) or the United
States Coast Guard to provide child care and has completed background screening by the DOD
pursuant to 34 U.S.C. § 20351 and 32 C.F.R. Part 86 and received a favorable suitability and
fitness determin ation. This exemption applies to DOD family child care home operators
providing child care exclusively to children eligible for care under the DOD Instruction 6060.02.
(b) A family child care home seeking to operate pursuant to this section shall register
with the Department. The individual at each military installation who provides oversight of
family child care homes shall be responsible for registering the family child care home operating
under this section with the Department. The Department shall establish and maintain a registry
in accordance with this section, and the registry shall be used for the following limited purposes:
(1) Ensuring the DOD family child care home is fully compliant with all DOD
requirements to operate the family child care home.
(2) Certifying that the following State safety provisions are met for the dwelling
unit in which the DOD family child care home is located:
a. Rooms and areas within a family child care home where occupants
receive care are located on the same level of exit discharge.
b. Rooms and areas within a family child care home where occupants
receive care are located on the same level with, and within a maximum
of 40 feet travel distance to, at least one 2A:10B:C fire extinguisher.
c. The family child care home has and maintain s a Fire Safety,
Evacuation, and Lockdown Plan compliant with Section 404 of the
North Carolina Fire Code.

House Bill 412 Session Law 2025-36 Page 7
d. The family child care home has carbon monoxide alarm and detection
systems compliant with Section R315 of the North Carolina
Residential Code.
e. The family child care home has smoke alarms compliant with Section
51 R314 of the North Carolina Residential Code.
(3) Receiving confirmation from the person operating the DOD family child care
home that the family child care home is within the same dwelling unit
occupied by the operator.
(4) Confirming inquiries regarding a DOD family child care home are directed to
the appropriate regulatory authority having oversight of family child care
homes for the respective military installation.
(c) The regulatory authority having oversight of family child care homes for the
respective military installation shall provide the Department with any updates to the registry on
a quarterly basis. The regulatory authority having oversight of family child care homes for the
respective military installation shall immediately notify the Department when the DOD adds or
removes a family child care home operating under this section from the registry or closes a family
child care home for cause.
(d) A DOD family chil d care home that meets the requirements of this section shall be
exempt from all other requirements of this Article and shall not be subject to licensure.
(e) In the event the program 's certification as a family child care home operator is
suspended or terminated due to noncompliance with the health, safety, or licensing standards or
there is substantiated evidence of child abuse, neglect, or endangerment, the operator shall be
ineligible to apply for a child care license pursuant to this Article and, if voluntarily licensed by
the Department under this Article, shall be subject to an administrative action revoking its child
care license. Further, if the DOD or United States Coast Guard substantiates child abuse, neglect,
or endangerment, the operator shall have the operator's name placed on the North Carolina Child
Maltreatment Registry and shall not be a caregiver pursuant to G.S. 110-105.5."
SECTION 14.1. The Department of Health and Human Services, Division of Child
Development and Early Education (Division), in coordination with the Child Care Commission,
shall work to clarify the rules governing multiuse child care centers to ensure each of the
following:
(1) Allow the use of existing buildings to house multiunit child care centers and
include mixed-age centers if they meet the requirements outlined in the rules
regarding multiunit child care centers.
(2) Grant individual licenses within a multiunit child care center based on the
square footage used by each owner.
Applicants who meet the pre-licensing guidelines and are awarded a license by the
Division shall be considered eligible to qualify as a tenant in a multiuse facility.
SECTION 14.2. G.S. 110-98.5 reads as rewritten:
"§ 110-98.5. Care for school-age children during state of emergency.
Notwithstanding any provision of law or rule to the contrary, when remote or virtual learning
is required due to a declared state of emergency issued under G.S. 166A-19.20, the following
shall apply:
…
(3) Care provided to school-age children pursuant to this section is not considered
child care as defined under G.S. 110-86. However, if a program was licensed
prior to the state of emergency, it shall be deemed licensed during the state of
emergency whether it expands its capacity to provide servi ces to more
children so long as it adheres to the staff-child ratios for licensure."

PART III. BUILDING CODE REVISIONS

Page 8 Session Law 2025-36 House Bill 412
SECTION 15.(a) Definitions. – For the purposes of this section, the following
definitions apply:
(1) Code. – The North Carolina State B uilding Code, and amendments to the
Code, as adopted by the Councils.
(2) Councils. – The Residential Code Council and the Building Code Council.
(3) Family child care home. – As described in G.S. 110-86(3)b.
SECTION 15.(b) Family Child Care Home. – Until the effective date of the rules to
create a family child care home occupancy classification within a dwelling subject to the North
Carolina Residential Code, the Office of the State Fire Marshal, the Councils, and State and local
governments enforcing the Code shall adhere to family child care home requirements as provided
in subsection (c) of this section.
SECTION 15.(c) Implementation. – Notwithstanding Section 310, Residential
Group R, of the North Carolina Building Code, and Section 203.10, Residential Group R, of the
North Carolina Fire Code, a family child care home located within a dwelling subject to the North
Carolina Residential Code shall be treated as a Residential Group R -3 occupancy. The building
where the family child care home is located shall be permitted to comply with the North Carolina
Residential Code, provided that a family child care home must meet only the following additional
requirements:
(1) Rooms and areas within a family child care home where occ upants receive
care shall be on the same level of exit discharge.
(2) Rooms and areas within a family child care home where occupants receive
care shall be located on the same level with, and within a maximum of 40 feet
travel distance to, at least one 2A:10B:C fire extinguisher.
(3) A family child care home shall have and maintain a Fire Safety, Evacuation,
and Lockdown Plan compliant with Section 404 of the North Carolina Fire
Code.
(4) A family child care home shall have carbon monoxide alarm and detecti on
systems compliant with Section R315 of the North Carolina Residential Code.
(5) A family child care home shall have smoke alarms compliant with Section
R314 of the North Carolina Residential Code.
SECTION 15.(d) Additional Residential Code Council Rule making Authority. –
The Residential Code Council shall adopt rules to amend the North Carolina Residential Code to
create a family child care home occupancy classification within a dwelling subject to the North
Carolina Residential Code consistent with sub section (c) of this section. Notwithstanding
G.S. 150B-19(4), the rules adopted by the Residential Code Council pursuant to this subsection
shall be substantively identical to the provisions of subsection (c) of this section. Rules adopted
pursuant to this subsection are not subject to Part 3 of Article 2A of Chapter 150B of the General
Statutes. Rules adopted pursuant to this subsection shall become effective as provided in
G.S. 150B-21.3(b1), as though 10 or more written objections had been received as pr ovided in
G.S. 150B-21.3(b2).
SECTION 15.(e) Additional Building Code Council Rulemaking Authority. – The
Building Code Council shall adopt rules to amend the North Carolina State Building Code
volumes specified within G.S. 143-138(a)(1) through (9) to make conforming changes consistent
with rules adopted by the Residential Code Council as required by subsection (d) of this section.
Rules adopted pursuant to this subsection are not subject to Part 3 of Article 2A of Chapter 150B
of the General Statutes. Ru les adopted pursuant to this subsection shall become effective as
provided in G.S. 150B-21.3(b1), as though 10 or more written objections had been received as
provided in G.S. 150B-21.3(b2).
SECTION 15.(f) Sunset. – This section expires when permanent rul es adopted as
required by subsections (d) and (e) of this section become effective.

House Bill 412 Session Law 2025-36 Page 9
SECTION 16.(a) Definitions. – For the purposes of this section, the following
definitions apply:
(1) Code. – The North Carolina State Building Code, and amendments to the
Code, as adopted by the Councils.
(2) Councils. – The Residential Code Council and the Building Code Council.
(3) Family child care home. – As described in G.S. 110-86(3)b.
SECTION 16.(b) Family Child Care Home. – Until the effective date of the rules to
create a family child care home occupancy classification within a dwelling subject to the North
Carolina Building Code, the Office of the State Fire Marshal, the Councils, and State and local
governments enforcing the Code shall adhere to family child care home requirements as provided
in subsection (c) of this section.
SECTION 16.(c) Implementation. – Notwithstanding Section 310, Residential
Group R, of the North Carolina Building Code, and Section 203.10, Residential Group R, of the
North Carolina Fire Code, a family child care home located within a dwelling subject to the North
Carolina Building Code shall be treated as a Residential Group R -3 occupancy. The dwelling
where the family child care home is located shall be permitted to comply with the North Carolina
Building Code, provided that a family child care home must meet only the following additional
requirements:
(1) Rooms and areas within a family child care home where occupants receive
care shall be on the same level of exit discharge.
(2) Rooms and areas within a family child care home where occupants receive
care shall be located on the same level with, and within a maximum of 40 feet
travel distance to, at least one 2A:10B:C fire extinguisher.
(3) A family child care home shall have and maintain a Fire Safety, Evacuation,
and Lockdown Plan compliant with Section 404 of the North Carolina Fire
Code.
(4) A family child care home shall have carbon monoxide alarm and detection
systems compliant with Section 915 of the North Carolina Building Code.
(5) A family child care home shall have smoke alarms compliant with Section
R907 of the North Carolina Building Code.
SECTION 16.(d) Additional Building Code Council Rulemaking Authority. – The
Building Code Council shall adopt rules to amend the North Carol ina State Building Code
volumes specified within G.S. 143-138(a)(1) through (9) to create a family child care home
occupancy classification within a dwelling subject to the North Carolina Building Code
consistent with subsection (c) of this section. Notwit hstanding G.S. 150B-19(4), the rules
adopted by the Building Code Council pursuant to this subsection shall be substantively identical
to the provisions of subsection (c) of this section. Rules adopted pursuant to this subsection are
not subject to Part 3 of Article 2A of Chapter 150B of the General Statutes. Rules adopted
pursuant to this subsection shall become effective as provided in G.S. 150B-21.3(b1), as though
10 or more written objections had been received as provided in G.S. 150B-21.3(b2).
SECTION 16.(e) Additional Residential Code Council Rulemaking Authority. – The
Residential Code Council shall adopt rules to amend the North Carolina Residential Code to
make conforming changes consistent with rules adopted by the Building Code Council as
required by subsection (d) of this section. Rules adopted pursuant to this subsection are not
subject to Part 3 of Article 2A of Chapter 150B of the General Statutes. Rules adopted pursuant
to this subsection shall become effective as provided in G.S. 150B-21.3(b1), as though 10 or
more written objections had been received as provided in G.S. 150B-21.3(b2).
SECTION 16.(f) Sunset. – This section expires when permanent rules adopted as
required by subsections (d) and (e) of this section become effective.
SECTION 17.(a) Definitions. – For the purposes of this section, the following
definitions apply:

Page 10 Session Law 2025-36 House Bill 412
(1) Code. – The North Carolina State Building Code, and amendments to the
Code, as adopted by the Councils.
(2) Councils. – The Residential Code Council and the Building Code Council.
(3) Family child care home. – As described in G.S. 110-86(3)b.
SECTION 17.(b) Family Child Care Home. – Until the effective date of the rules to
create a family child care home occupancy classification within a dwelling subject to the State
of North Carolina Regulations for Manufactured Homes, the Office of the State Fire Marshal,
the Councils, and State and local governments enforcing the Code shall adhere to family child
care home requirements as provided in subsection (c) of this section.
SECTION 17.(c) Implementation. – Notwithstanding Section 310, Residential
Group R, of the North Carolina Building Code, and Section 203.10, Residential Group R, of the
North Carolina Fire Code, a family child care home located within a dwelling subject to the State
of North Carolina Regulations for Manufactured Homes shall be treated as a Resid ential Group
R-3 occupancy. The dwelling where the family child care home is located shall be permitted to
comply with the North Carolina Regulations for Manufactured Homes, provided that a family
child care home must meet only the following additional requirements:
(1) Rooms and areas within a family child care home where occupants receive
care shall be on the same level of exit discharge.
(2) Rooms and areas within a family child care home where occupants receive
care shall be located on the same level with, and within a maximum of 40 feet
travel distance to, at least one 2A:10B:C fire extinguisher.
(3) A family child care home shall have and maintain a Fire Safety, Evacuation,
and Lockdown Plan compliant with Section 404 of the North Carolina Fire
Code.
(4) A family child care home shall have carbon monoxide alarm and detection
systems compliant with Section R315 of the North Carolina Residential Code.
(5) A family child care home shall have smoke alarms compliant with Section
R314 of the North Carolina Residential Code.
SECTION 17.(d) Additional Building Code Council Rulemaking Authority. – The
Building Code Council shall adopt rules to amend the North Carolina State Building Code
volumes specified within G.S. 143-138(a)(1) through (9) to create a family child care home
occupancy classification within a dwelling subject to the State of North Carolina Regulations for
Manufactured Homes consistent with subsection (c) of this section. Notwithstanding
G.S. 150B-19(4), the rules adopted by the Building Code Cou ncil pursuant to this subsection
shall be substantively identical to the provisions of subsection (c) of this section. Rules adopted
pursuant to this subsection are not subject to Part 3 of Article 2A of Chapter 150B of the General
Statutes. Rules adopted pursuant to this subsection shall become effective as provided in
G.S. 150B-21.3(b1), as though 10 or more written objections had been received as provided in
G.S. 150B-21.3(b2).
SECTION 17.(e) Additional Residential Code Council Rulemaking Authority. – The
Residential Code Council shall adopt rules to amend the North Carolina Residential Code to
make conforming changes consistent with rules adopted by the Building Code Council as
required by subsection (d) of this section. Rules adopted pursuant to this s ubsection are not
subject to Part 3 of Article 2A of Chapter 150B of the General Statutes. Rules adopted pursuant
to this subsection shall become effective as provided in G.S. 150B-21.3(b1), as though 10 or
more written objections had been received as provided in G.S. 150B-21.3(b2).
SECTION 17.(f) Sunset. – This section expires when permanent rules adopted as
required by subsections (d) and (e) of this section become effective.
SECTION 18.(a) G.S. 110-86 reads as rewritten:
"§ 110-86. Definitions.

House Bill 412 Session Law 2025-36 Page 11
Unless the context or subject matter otherwise requires, the terms or phrases used in this
Article shall be defined as follows:
…
(3) Child care facility. – Includes child care centers, family child care homes, and
any other child care arrangement not excluded b y G.S. 110-86(2), that
provides child care, regardless of the time of day, wherever operated, and
whether or not operated for profit.
a. A child care center is an arrangement where, at any one time, there are
three or more preschool -age children or nine or more school -age
children receiving child care.
b. A family child care home is a child care arrangement located in a
residence an operator occupied private dwell ing where, at any one
time, more than two children, but less than 11 children, receive child
care, provided the arrangement is in accordance with G.S. 110-91(7)b.
…."
SECTION 18.(b) G.S. 110-91 reads as rewritten:
"§ 110-91. Mandatory standards for a license.
All child care facilities shall comply with all State laws and federal laws and local ordinances
that pertain to child health, safety, and welfare. Except as otherwise provided in this Article, the
standards in this section shall be complied with by all child care facilities. However, none of the
standards in this section apply to the school -age children of the operator of a child care facility
but do apply to the preschool-age children of the operator. Children 13 years of age or older may
receive child care on a voluntary basis provided all applicable required standards are met. The
standards in this section, along with any other applicable State laws and federal laws or local
ordinances, shall be the required standards for the issuance of a license by the Secretary under
the policies and procedures of the Commission except that the Commission may, in its discretion,
adopt less stringent standards for the licensing of facilities which provide care on a temporary,
part-time, drop-in, seasonal, after-school or other than a full-time basis.
…
(4) Building. – Each child care facility shall be located in a building which meets
the appropriate requirements of the North Carolina State Building Code under
standards which shall be developed by the Building Code Council, Code,
subject to adoption by the Commission specifically for child care facilities,
including facilities operated in a private residence. as family child care homes.
These standards shall be consistent with the provisions of this Article. A local
building code e nforcement officer shall approve any proposed alternate
material, design, or method of construction, provided the building code
enforcement officer finds that the alternate, for the purpose intended, is at least
the equivalent of that prescribed in the tec hnical building codes in quality,
strength, effectiveness, fire resistance, durability, or safety. A local building
code enforcement officer shall require that sufficient evidence or proof be
submitted to substantiate any claim made regarding the alternate . The Child
Care Commission may request changes to the North Carolina State Building
Code to suit the special needs of preschool children. Satisfactorily written
reports from representatives of building inspection agencies shall be required
prior to the issuance of a license and whenever renovations are made to a child
care center, or when the operator requests licensure of space not previously
approved for child care.
(5) Fire Prevention. – Each child care facility shall be located in a building that
meets appropriate requirements for fire prevention and safe evacuation that
apply to child care facilities as established by the Department of Insurance

Page 12 Session Law 2025-36 House Bill 412
Office of the State Fire Marshal in consultation with the Department. Except
for child care centers located on State property, each child care center shall be
inspected at least annually by a local fire department or volunteer fire
department for compliance with these requirements. Child care centers located
on State property shall be inspected at least annually by an official designated
by the Department of Insurance.Office of the State Fire Marshal."
SECTION 19.1. The Division of Child Development and Early Education (Division)
shall establish the Licensed Childcare Licensure Workgroup to examine streamlining regulatory
requirements related to the physical structures of licensed child care facilities. The workgroup
shall consist of at least one representative from each of the following:
(1) The Division of Child Development and Early Education.
(2) The Office of the State Fire Marshal.
(3) The Department of Insurance.
(4) The North Carolina Building Code Council.
(5) The Division of Public Health.
(6) The League of Municipalities.
(7) The North Carolina Association of County Commissioners.
(8) N.C. Licensed Child Care Association.
(9) The North Carolina Child Care Commission.
(10) Other representatives deemed necessary by the Division.
The Division shall appoint two individuals to serve as co-chairs of the workgroup.
Each entity above shall choose the individual or individuals to serve on the workgroup
in a number to be determined by the Division.
SECTION 19.2. The workgroup shall develop findings and recommendations
related to at least the following:
(1) Streamlining the regulatory requirements related to the physical structures of
licensed child care facilities, including building codes, fire codes, and
sanitation codes.
(2) Resolving conflicts between various code requirements for licensed child care
facilities.
SECTION 19.3. The Division of Child Development and Early Education shall
report the findings and recommendations of the workgroup to the Joint Legislative Oversight
Committee on Health and Human Services, the Joint Legislative O versight Committee on
General Government, and the Fiscal Research Division no later than one year after this act
becomes law.

House Bill 412 Session Law 2025-36 Page 13
PART IV. EFFECTIVE DATE
SECTION 20. This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 26th day of June, 2025.

s/ Rachel Hunt
President of the Senate

s/ Destin Hall
Speaker of the House of Representatives

s/ Josh Stein
Governor

Approved 9:24 a.m. this 1st day of July, 2025