North Carolina Rep. Lambeth’s child care licensing reform bill passes both chambers of North Carolina General Assembly

Passed bill sponsored by State Rep. Donny Lambeth seeks to separate child care quality ratings from subsidized reimbursement rates and introduce regulatory reforms for child care facilities in North Carolina, according to the North Carolina State House.

In the House, 14 Democrats and 67 Republicans voted in favor of the bill, while 31 Democrats opposed it.

Meanwhile, in the Senate, 19 Democrats and 26 Republicans voted in favor of the bill.

Lambeth filed the bill in the North Carolina House on March 17 during the 2025 regular session.

The legislation, known as HB 412, was passed on June 4 during the 2025 regular session.

According to the North Carolina General Assembly site, the bill’s official text was formally listed with the short title: “Child Care Regulatory Reforms.”

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill aims to decouple the child care rated license system from subsidized child care reimbursement rates and introduce regulatory reforms. By May 1, 2026, the Department of Health and Human Services must develop a plan to separate the quality rating improvement system from the subsidized child care program’s payment requirements. Child care facilities can opt for star-ratings, but these will not affect reimbursement rates. The bill allows facilities to charge either the market rate or the rate for private clients, with restrictions for certain low-quality facilities. Additionally, it modifies staff qualifications, facility space requirements, and exemptions for school-age care. It mandates a workgroup to explore group liability insurance options for child care providers, reporting findings by Jan. 1, 2026. The bill takes effect upon becoming law.

The bill was sponsored by Rep. Dean Arp (Republican-69th District), Rep. Donny Lambeth (Republican-75th District), and Rep. Erin Paré (Republican-37th District), along with one other sponsor.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Lambeth graduated from High Point University in 1972 with a BA.

Lambeth, a Republican, was elected to the North Carolina State House in 2013 to represent the state’s 75th House district, replacing previous state representative Bill McGee.

Under North Carolina law, bills must receive three readings in each chamber. According to the UNC School of Government, once a bill “passes its constitutionally required second reading and moves to its constitutionally required third reading,” additional debate can occur, but the final stage is often treated as a formality. Unless a legislator requests a roll-call, the third reading may be approved by voice vote or unanimous consent without a separate recorded tally.