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GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 2
SENATE BILL 488
House Committee Substitute Favorable 6/24/25
Short Title: Clarify Disp. Place Analysis/IOLTA. (Public)
Sponsors:
Referred to:
March 26, 2025
*S488-v-2*
A BILL TO BE ENTITLED 1
AN ACT TO CLARIFY DI SPOSITION PLACEMENT ANALYSIS AND REQUIRE 2
WRITTEN FINDINGS OF FACT; AND TO MODIFY IOLTA EXPENDITURES. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. G.S. 7B-903 reads as rewritten: 5
"§ 7B-903. Dispositional alternatives for abused, neglected, or dependent juvenile. 6
(a) The following alternatives for disposition shall be available to any court exercising 7
jurisdiction, and the court may combine any of the applicable alternatives when the court fin ds 8
the disposition to be in the best interests of the juvenile: 9
(1) Dismiss the case or continue the case in order to allow the parent, guardian, 10
custodian, caretaker or others to take appropriate action. 11
(2) Require that the juvenile be supervised in the juvenile's own home by the 12
department of social services in the juvenile's county or by another individual 13
as may be available to the court, subject to conditions applicable to the parent, 14
guardian, custodian, or caretaker as the court may specify. 15
(3) Repealed by Session Laws 2015 -136, s. 10, effective October 1, 2015, and 16
applicable to actions filed or pending on or after that date. 17
(4) Place the juvenile in the custody of a parent, relative, private agency offering 18
placement services, or some other suitable person. If the court determines that 19
the juvenile should be placed in the custody of an individual other than a 20
parent, the court shall verify that the person receiving custody of the juvenile 21
understands the legal significance of the placement and wil l have adequate 22
resources to care appropriately for the juvenile. The fact that the prospective 23
custodian has provided a stable placement for the juvenile for at least six 24
consecutive months is evidence that the person has adequate resources. 25
(5) Appoint a guardian of the person for the juvenile as provided in G.S. 7B-600. 26
(6) Place the juvenile in the custody of the department of social services in the 27
county of the juvenile's residence. In the case of a juvenile who has legal 28
residence outside the State, the court may place the juvenile in the physical 29
custody of the department of social services in the county where the juvenile 30
is found so that agency may return the juvenile to the responsible authorities 31
in the juvenile's home state. 32
(a1) In placing a ju venile in out -of-home care under this section, the court shall first 33
consider determine whether a relative of the juvenile is willing and able to provide proper care 34
and supervision of the juvenile in a safe home. If the court finds that the relative is wi lling and 35
able to provide proper care and supervision in a safe home, then the court shall order placement 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 488-Second Edition
of the juvenile with the relative unless the court finds determines that the placement is contrary 1
to the best interests of the juvenile. In placing a juvenile in out-of-home care under this section, 2
the court shall also consider whether it is in the juvenile's best interest to remain in the juvenile's 3
community of residence. Placement of a juvenile with a relative outside of this State must be in 4
accordance with the Interstate Compact on the Placement of Children. If the juvenile has been 5
placed in out-of-home care with a nonrelative , the court may compare all placement options to 6
determine which placement option is in the juvenile's best interest. 7
(a2) An order under this section placing or continuing the placement of the juvenile in 8
out-of-home care shall contain a finding that the juvenile's continuation in or return to the 9
juvenile's own home would be contrary to the juvenile's health and safety. 10
(a3) An order under this section placing the juvenile in out -of-home care shall contain 11
specific findings as to whether the department has made reasonable efforts to prevent the need 12
for placement of the juvenile. In determining whether efforts to prevent the placement of the 13
juvenile were reasonable, the juvenile's health and safety shall be the paramount concern. 14
The court may find that efforts to prevent the need for the juvenile's placement were 15
precluded by an immediate threat of harm to the juvenile. A finding that reasonable efforts were 16
not made by a county department of social services shall not preclude the entry of an order 17
authorizing the juvenile's placement when the court finds that placement is necessary for the 18
protection of the juvenile. 19
(a4) If the court does not place the juvenile with a relative, the court may consider whether 20
an appropriate former foster parent, nonrelative kin kin, or other persons with legal custody of a 21
sibling of the juvenile are willing and able to provide proper care and supervision of the juvenile 22
in a safe home. The court may order the department to notify the juvenile's State-recognized tribe 23
of the need for custodial care for the purpose of locating relatives or nonrelative kin for 24
placement. The court may order pla cement of the juvenile with an appropriate former foster 25
parent, nonrelative kin kin, or other persons with legal custody of a sibling of the juvenile if the 26
court finds the placement is in the juvenile's best interests. 27
(a5) In placing a juvenile in out -of-home care under this section, the court shall also 28
determine whether it is in the juvenile 's best interest to remain in the juvenile 's community of 29
residence and make written findings of fact to support that determination. Placement of a juvenile 30
with a relative outside of this State must be in accordance with the Interstate Compact on the 31
Placement of Children. 32
(b) When the court has found that a juvenile has suffered physical abuse and that the 33
individual responsible for the abuse has a history of viol ent behavior against people, the court 34
shall consider the opinion of the mental health professional who performed an evaluation under 35
G.S. 7B-503(b) before returning the juvenile to the custody of that individual. 36
(c) Repealed by Session Laws 2015-136, s. 10, effective October 1, 2015, and applicable 37
to actions filed or pending on or after that date. 38
(d) The court may order that the juvenile be examined by a physician, psychiatrist, 39
psychologist, or other qualified expert as may be needed for the court to d etermine the needs of 40
the juvenile. Upon completion of the examination, the court shall conduct a hearing to determine 41
whether the juvenile is in need of medical, surgical, psychiatric, psychological, or other treatment 42
and who should pay the cost of the treatment. The county manager, or such person who shall be 43
designated by the chairman of the county commissioners, of the juvenile's residence shall be 44
notified of the hearing and allowed to be heard. Subject to G.S. 7B-903.1, if the court finds the 45
juvenile to be in need of medical, surgical, psychiatric, psychological, or other treatment, the 46
court shall permit the parent or other responsible persons to arrange for treatment. If the parent 47
declines or is unable to make necessary arrangements, the court may order the needed treatment, 48
surgery, or care and the court may order the parent to pay the cost of the care pursuant to 49
G.S. 7B-904. If the court finds the parent is unable to pay the cost of treatment, the court shall 50
order the county to arrange for treatment of the juvenile and to pay for the cost of the treatment. 51
General Assembly Of North Carolina Session 2025
Senate Bill 488-Second Edition Page 3
The county department of social services shall recommend the facility that will provide the 1
juvenile with treatment. 2
(e) If the court determines that the juvenile may be mentally ill or develo pmentally 3
disabled, the court may order the county department of social services to coordinate with the 4
appropriate representative of the area mental health, developmental disabilities, and substance 5
abuse services authority or other managed care organizat ion responsible for managing public 6
funds for mental health and developmental disabilities to develop a treatment plan for the 7
juvenile. The court shall not commit a juvenile directly to a State hospital or developmental center 8
for persons with intellectua l and developmental disabilities and orders purporting to commit a 9
juvenile directly to a State hospital or developmental center for persons with intellectual and 10
developmental disabilities shall be void and of no effect. If the court determines that 11
institutionalization is the best service for the juvenile, admission shall be with the voluntary 12
consent of the parent, guardian, or custodian. If the parent, guardian, or custodian refuses to 13
consent to admission to a mental hospital or developmental center fo r persons with intellectual 14
and developmental disabilities, the signature and consent of the court may be substituted for that 15
purpose. A State hospital or developmental center for persons with intellectual and 16
developmental disabilities that refuses admission to a juvenile referred for admission by a court, 17
or discharges a juvenile previously admitted on court referral prior to completion of treatment, 18
shall submit to the court a written report setting out the reasons for denial of admission or 19
discharge and setting out the juvenile's diagnosis, indications of mental illness or intellectual and 20
developmental disabilities, indications of need for treatment, and a statement as to the location 21
of any facility known to have a treatment program for the juvenile in question. 22
(f) All findings and determinations made by the court pursuant to this section shall be 23
supported by written findings of fact." 24
SECTION 2. All funds received by the North Carolina State Bar, and administered 25
by the North Carolina Interest on Lawyers' Trust Accounts (NC IOLTA) Board of Trustees, from 26
banks by reason of interest earned on general trust accounts established by lawyers pursuant to 27
Rule 1.15 -2(b) of the Rules of Professional Conduct, or interest earned on trust or escrow 28
accounts m aintained by settlement agents pursuant to G.S. 45A-9, including any interest 29
dividends, or other proceeds earned on or with respect to these funds, shall not be encumbered 30
or expended for the purpose of awarding grants or for any purpose other than administrative costs 31
during the period beginning July 1, 2025, and ending June 30, 2026. 32
SECTION 3. Section 1 of this act becomes effective October 1, 2025, and applies to 33
petitions filed on or after that date. The remainder of this act is effective when it becomes law. 34