SOS (State Owned Structures) Childcare Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 677

Short Title: SOS (State Owned Structures) Childcare Act. (Public)
Sponsors: Senators Chitlik, Chaudhuri, and Everitt (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S677-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ALLOW THE USE OF STATE OWNED P ROPERTY FOR THE USE OF 2
CHILDCARE FOR STATE EMPLOYEES, REQUIRE R ENOVATIONS OR NEW 3
BUILDS OF STATE-OWNED PROPERTY TO INCLUDE A CHILDCARE CENTER OR 4
ADULT CARE CENTER, CREATE A PILOT PROGRAM FOR USE OF STATE-OWNED 5
PROPERTY FOR CHILDCARE FACILITIES FOR ST ATE EMPLOYEES, TO CR EATE 6
A PILOT PROGRAM FOR COUNTY GRANTS FOR THIRD-SHIFT CHILDCARE FOR 7
FIRST RESPONDERS, RE QUIRE FEASIBILITY ST UDY FOR ONSITE CHILD CARE 8
AT EACH NORTH CAROLI NA COMMUNITY COLLEGE AND COLLEGE IN THE 9
UNIVERSITY OF NORTH CAROLINA SYSTEM, EST ABLISH WORKGROUP TO 10
EXAMINE STREAMLINING LICENSURE REQUIREME NTS FOR PHYSICAL 11
STRUCTURES FOR COMMERCIAL CHILDCARE FACILITIES. 12
The General Assembly of North Carolina enacts: 13
14
PART I. USE OF STATE -OWNED PROPERTY FOR CHILDC ARE CENTERS FOR 15
STATE EMPLOYEES 16
SECTION 1.(a) The Department of Administration shall report to the Joint 17
Legislative Oversight Committee on Health and Human Services and the Joint Legislative 18
Commission on Governmental Operations, no later than March 31, 2026, on the feasibility and 19
advisability of using obsolete or underutilized state -owned buildings (available buildings) to 20
house childcare facilities giving childcare priority to State employees. The report shall include 21
the following: 22
(1) Location of each available building. 23
(2) Estimated costs for upfitting each property to meet daycare licensing 24
standards. 25
(3) Estimated costs for asbestos and lead remediation. 26
(4) Barriers to the available buildings' use as a childcare facility. 27
SECTION 1.(b) Any project undertaken by the State to build or renovate property 28
having a budget greater than five million dollars ($5,000,000) shall include a child care center or 29
adult day care center if more than 250 people would work in the building. This requirement 30
includes current projects which have not broken ground by July 1, 2025, unless one or both of 31
the following exceptions apply: 32
(1) Inclusion of either type of center would delay the project by six months or 33
more. 34
(2) Inclusion of either type of center would increase the project cost by 10% or 35
more. 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 677-First Edition
1
PART II. CHILDCARE FOR STATE EMPLOYEES 2
SECTION 2.(a) The Division of Child Development and Early Education shall 3
establish a pilot program for onsite childcare for State employees as follows: 4
(1) The Division of Child Development and Early Education shall contract with 5
a private commercial childcare provider to establish three childcare centers 6
for State employees use to be established on State -owned property that is 7
unused or underutilized. 8
(2) Priority in contracting shall be given to commercial childcare providers who 9
currently operate five or fewer facilities and provide high quality childcare. 10
(3) The Division of Child Development and Early Education must include the 11
following terms in the contract with the commercial childcare providers: 12
a. The childcare facility must operate an apprenticeship program in 13
conjunction with a public or private university or community college 14
who operates an early childcare education program. 15
b. The childcare center must comply with the requirements established 16
by the Division of Child Development and Early Education for 17
apprenticeship program. 18
c. The childcare center must maintain the operation of the apprenticeship 19
program for so long as the childcare center is hou sed in state-owned 20
property and the university or community college is willing to 21
continue the partnership. 22
d. The State will provide the upfit cost of the space to meet the licensure 23
requirements at reasonable levels that are customary at the operators' 24
other facilities and those similarly situated and provide use of the space 25
rent free, notwithstanding the provisions of G.S. 146-29.1. 26
e. The lease terms for state-owned property must be approved as required 27
by G.S. 146-27. 28
SECTION 2.(b) The Division of Ch ild Development and Early Education shall 29
create the requirements for the apprenticeship program and pair the childcare centers with a 30
university or community college early education program utilizing parameters similar to the 31
Durham Childcare Apprenticeship Program. 32
SECTION 2.(c) There is appropriated from the General Fund to the Department of 33
Health and Human Resources the sum of five million dollars ($5,000,000) for the 2 025-2026 34
fiscal year for the Division of Child Development and Early Education's use in establishing the 35
childcare centers as required by Section 2(a) of this act. 36
SECTION 2.(d) If any expenses are incurred by the State for asbestos or lead 37
remediation in establishing the childcare centers required by Section 2(a) of this act, the Sta te 38
shall be eligible for reimbursement from the Asbestos and Lead Remediation Fund subject to the 39
rules of the fund for up to five hundred thousand dollars ($500,000). 40
SECTION 2.(e) By April 1, 2027, the Division of Child Development and Early 41
Education s hall report on and make recommendations to the Joint Legislative Oversight 42
Committee on Health and Human Services, the Joint Legislative Oversight Committee on 43
General Government, and the Fiscal Research Division the status of the implementation of the 44
pilot program including successes, concerns, problems encountered, enrollment, and 45
expenditures. 46
SECTION 2.(f) Sections 2(c) and 2(d) of this act are effective July 1, 2025. 47
48
PART III. ONSITE CHILDCARE FOR THIRD-SHIFT FIRST RESPONDERS 49
SECTION 3.(a) There is appropriated from the General Fund to the Department of 50
Health and Human Services the sum of six million dollars ($6,000,000) for the 2025-2026 fiscal 51
General Assembly Of North Carolina Session 2025
Senate Bill 677-First Edition Page 3
year for a pilot program to provide counties grants to establish third -shift childcare for first 1
responders, with priority to be given to third shift facilities operated in unused or underutilized 2
county-owned buildings. By April 1, 2027, the Department of Health and Human Services shall 3
report on and make recommendations to the Joint Legislative Oversight C ommittee on Health 4
and Human Services, the Joint Legislative Oversight Committee on General Government, and 5
the Fiscal Research Division regarding the implementation of the pilot program including 6
successes, concerns, problems encountered, enrollment, and expenditures. 7
SECTION 3.(b) Section 3(a) of this act is effective July 1, 2025. 8
9
PART IV. ONSITE CHIL DCARE AT EACH NORTH CAROLINA COMMUNITY 10
COLLEGE AND COLLEGE IN THE UNIVERSITY OF NORTH CAROLINA SYSTEM 11
SECTION 4.1.(a) Report. – The State Board of Commun ity Colleges shall study 12
and report to the Joint Legislative Education Oversight Committee, the Joint Legislative 13
Oversight Committee on Health and Human Services, and the Fiscal Research Division of the 14
General Assembly, no later than March 31, 2026, on t he feasibility and advisability of 15
implementing a publicly available child care program on every community college campus that 16
offers priority enrollment to the children of community college employees and students. The 17
report shall include the following: 18
(1) Recommendations for implementing the childcare program. 19
(2) Estimated costs for implementation and maintenance of the childcare 20
program. 21
(3) Return on investment of the childcare program. 22
(4) Issues related to historical and ongoing utilization of grants or other funding. 23
(5) Barriers to implementation of the childcare program. 24
SECTION 4.1.(b) There is appropriated from the General Fund to the Community 25
College System Office the sum of one hundred thousand dollars ($100,000) for the study required 26
by Section 4.1(a) of this act. 27
SECTION 4.1.(c) Section 4.1(b) of this act is effective July 1, 2025. 28
SECTION 4.2.(a) The Board of Governors of the University of North Carolina shall 29
study and report to the Joint Legislative Education Oversight Committee, the Joint Legislative 30
Oversight Committee on Health and Human Services, and the Fiscal Research Division of the 31
General Assembly, no later than March 31, 2026, on the feasibility and advisability of 32
implementing a publicly available childcare program at each constituent institution campus that 33
offers priority enrollment to the children of university employees and students. The report shall 34
include: 35
(1) Recommendations for implementing the childcare program. 36
(2) Estimated costs for implementation and maintenanc e of the childcare 37
program. 38
(3) Return on investment of the childcare program. 39
(4) Issues related to historical and ongoing utilization of grants or other funding. 40
(5) Barriers to implementation of the childcare program. 41
SECTION 4.2.(b) There is appropria ted from the General Fund to the Board of 42
Governors the sum of one hundred thousand dollars ($100,000) for the study required by Section 43
4.2(a) of this act. 44
SECTION 4.2.(c) Section 4.2(b) of this act is effective July 1, 2025. 45
46
PART V. ESTABLISH WO RKGROUP TO EXAMINE STREAMLINING LICENSURE 47
REQUIREMENTS FOR PHY SICAL STRUCTURE OF C OMMERCIAL CHILDCARE 48
FACILITIES 49
SECTION 5.(a) The Division of Child Development and Early Education shall 50
establish the Commercial Childcare Licensure Workgroup to examine streamlining requirements 51
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 677-First Edition
related to the physical structure of commercial childcare centers. The workgroup shall consist of 1
one representative from each of the following to be chosen by the North Carolina Child Care 2
Commission: 3
(1) The Division of Child Development and Early Education. 4
(2) The Office of the State Fire Marshal. 5
(3) The Department of Insurance. 6
(4) The North Carolina Building Code Council. 7
(5) The Division of Public Health. 8
(6) The League of Municipalities. 9
(7) The North Carolina Association of County Commissioners. 10
The North Carolina Child Care Commission shall also appoint two commissioners to 11
the workgroup who shall also serve as co-chairs of the workgroup. 12
SECTION 5.(b) The workgroup shall develop findings and recommendations related 13
to at least the following: 14
(1) Streamlining the licensing requirements related to the physical facilities 15
related to commercial childcare facilities, including building codes, fire codes, 16
and sanitation codes. 17
(2) Developing statewide, uniform application of the commer cial childcare 18
licensing requirements related to the physical facility including building 19
codes, fire codes, and sanitation codes and statewide, uniform inspections 20
related to those codes. 21
(3) Resolving conflicts between various code requirements for comme rcial 22
childcare licensing. 23
SECTION 5.(c) By January 1, 2026, the Division of Child Development and Early 24
Education shall report the findings and recommendations of the work group to the Joint 25
Legislative Oversight Committee on Health and Human Services, the Joint Legislative Oversight 26
Committee on General Government, and the Fiscal Research Division. 27
28
PART VI. EFFECTIVE DATE 29
SECTION 6. Except as otherwise provided, this act is effective when it becomes 30
law. 31