North Carolina SB 1052: Transit Authority Vehicle Rental Tax.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 1052

Short Title: Amend Child Care Definitions/FFN Providers. (Public)
Sponsors: Senators Chaudhuri and Burgin (Primary Sponsors).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S1052-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ADD A DEFINITION FOR LICENSE-EXEMPT FAMILY, FRIEND, AND 2
NEIGHBOR CHILD CARE PROVIDERS UNDER THE LAWS REGULATING CHILD 3
CARE. 4
Whereas, family, friend, and neighbor (FFN) child care providers represent a broad 5
and diverse category of caregivers who provide informal child care arrangements outside the 6
licensed child care system, including relatives, neighbors, and close family friends; and 7
Whereas, the existing statutory framework under Article 7 of Chapter 110 of the 8
General Statutes does not define or formally recognize license-exempt FFN providers as a 9
distinct category of caregivers, creating ambiguity regarding their legal status, eligibility for 10
support programs, and relationships with the State; and 11
Whereas, formally defining license-exempt FFN providers in statute will clarify their 12
status, enable data collection, facilitate access to relevant support services and food programs, 13
and provide a legal foundation for future policies designed to support this population; and 14
Whereas, this definition does not impose new regulatory requirements on FFN 15
providers and shall not be construed to subject license-exempt FFN providers to licensing 16
obligations under that Article; Now, therefore, 17
The General Assembly of North Carolina enacts: 18
SECTION 1. G.S. 110-86 is amended by adding a new subdivision to read: 19
"(6a) License-exempt family, friend, and neighbor (FFN) child care provider. – An 20
individual who satisfies each of the following: 21
a. Provides child care to one or more children who are not the individual's 22
own biological, adopted, or step-children, or children for whom the 23
individual is a legal guardian. 24
b. Operates in a setting, including the caregiver's home or the home of 25
the child, that is not required to be licensed as a child care facility 26
under this Article by virtue of the number of children served, the nature 27
of the arrangement, or an applicable exemption under G.S. 110-86(2). 28
c. Has a pre-existing familial, social, or community relationship with the 29
child or the child's family, including but not limited to a grandparent, 30
aunt, uncle, sibling over the age of 18, family friend, or neighbor. 31
d. Is in compliance with all applicable requirements for legally operating 32
a child care arrangement under State law, including, but not limited to, 33
any notification, disclosure, or registration requirements adopted by 34
the Department pursuant to this Article. 35

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 1052-First Edition
The term does not include individuals who are required to obtain a license 1
under this Article. Nothing in this subdivision shall be construed to require 2
license-exempt FFN providers to obtain a license, to register with the State, or 3
to comply with any requirement not otherwise applicable to unlicensed child 4
care arrangements under this Article, unless otherwise required by law." 5
SECTION 2. There is appropriated from the General Fund to the Department of 6
Health and Human Services, Division of Child Development and Early Education (Division), the 7
sum of thirty thousand dollars ($30,000) in nonrecurring funds for the 2025-2026 fiscal year to 8
implement the following: 9
(1) Update public-facing materials, including the Division's website, printed 10
guides, and licensing portal, to incorporate the definition of "license-exempt 11
family, friend, and neighbor (FFN) child care provider" established under 12
G.S. 110-86(6a), as enacted by Section 1 of this act, and to clearly 13
communicate to the public the legal status of FFN providers and the 14
distinction between license-exempt FFN arrangements and licensed child care 15
facilities. 16
(2) Revise internal legal guidance documents, policy manuals, and staff training 17
materials within the Division to reflect the new statutory definition and its 18
application to eligibility determinations, program access, and enforcement 19
decisions. 20
(3) Update the Division's data collection and reporting systems to enable tracking 21
of license-exempt FFN providers as a distinct provider category, including the 22
number of such providers accessing State or federally administered programs, 23
the number of children served, and any relevant demographic or geographic 24
data, to the extent such information is voluntarily reported or otherwise 25
available to the Division. 26
SECTION 3. Existing exemptions from child care facility licensing requirements 27
under G.S. 110-86(2), including care provided by relatives and cooperative parent arrangements, 28
are retained without modification. G.S. 110-86(6a), as enacted by Section 1 of this act sh