AN ACT appropriating funds to establish a pilot program that would allow a child care teacher employed full time by a licensed child care program in the state to be deemed automatically eligible for child care subsidy for the teacher's preschool‑age children.

The General Assembly of North Carolina enacts:

SECTION 1.  There is appropriated from the General Fund to the Department of Health and Human Services, Division of Child Development and Early Education (Division), the sum of ten million dollars ($10,000,000) in nonrecurring funds for each year of the 2023‑2025 fiscal biennium to establish a pilot program that provides automatic eligibility for child care subsidy for the preschool‑age children, 8 weeks to 5 years of age, of all child care teachers employed full time by a licensed child care program in this State. A child care teacher deemed automatically eligible for subsidy pursuant to this section shall have completed, be in the process of completing, or enroll at the first available semester in an Introduction to Early Childhood class at any local community college in this State. A child care teacher who does not already possess an Early Childhood Education Infant/Toddler Certificate or Child Development Certificate shall commit to remaining in college and completing either certificate within 18 months. Any coursework taken pursuant to this act shall be paid for by the T.E.A.C.H. Early Childhood North Carolina Scholarship Program, with no cost to the teacher. For purposes of this act, full time means a minimum of 35 hours per week.

SECTION 2.  The Division shall implement the pilot program within 120 days from the effective date of this act. The Division shall select counties from across the State to participate in the pilot program. In selecting counties, the Division shall focus on counties with the highest percentage of child care capacity lost during the past 10 years. In determining the applicable rate for a child care teacher eligible for subsidy under this act, the Division shall use the rate available in the county where the teacher resides. Child care centers shall accept the current market subsidy rates and may not charge copayment fees or any other fees in addition to the subsidy amount provided pursuant to this act. County agencies shall use existing child care subsidy funding first before applying for additional funding.

SECTION 3.  The Division shall submit an initial report to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division of the General Assembly by March 31, 2024, of the number of child care teachers participating in the pilot program, by county. Thereafter, the Division shall submit a quarterly report on the number of participants in the program, with a detailed report by December 31 of each year the pilot program is in effect. The quarterly and annual detailed reports shall include, at a minimum, the following:

(1)        The number of teachers in the pilot program who were already teaching and became automatically eligible for child care subsidy on the effective date of this act.

(2)        The number of new teachers added to the pilot program, by county, on a monthly basis.

(3)        The retention of every teacher in the pilot program.

(4)        Any other information the Division deems relevant.

SECTION 4.  This act becomes effective July 1, 2023.