North CarolinaHB 5762025-2026 SessionHouseWALLET

AN ACT MAKING TECHNICAL, CONFORMING, AND OTHER MODIFICATIONS TO LAWS PERTAINING TO THE DEPARTMENT OF HEALTH AND HUMAN SERVICES.

Sponsored By: Larry W. Potts (Republican)

Signed by Governor

ADOPTIONOBSOLETE LAWSAOCATTORNEYSCANCERCHARITABLE DONATIONSCHILD CUSTODYCOMMISSIONSCORPORATIONS, NONPROFITCORRECTIONAL INSTITUTIONSCOUNTIESCOURTSCRIMINAL RECORDSDEATH & DYINGDHHSDISEASES & HEALTH DISORDERSDRUG & ALCOHOL TESTINGEDUCATIONEMERGENCY MEDICAL SERVICESEMERGENCY SERVICESEVIDENCEFOSTER CAREGENERAL STATUTESGUARDIANSHIPHEALTH DEPTS

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Bill Overview

Analyzed Economic Effects

17 provisions identified: 13 benefits, 4 costs, 0 mixed.

Limits on Medicaid plans after release

People whose Medicaid was suspended while incarcerated stay out of prepaid health plans after release. The exclusion lasts the shorter of your first post‑release Medicaid certification period or 365 days. This applies to releases on or after the day this law took effect. It also applies to people released on or after January 1, 2025 who were not in a prepaid plan when the law took effect.

Medicaid share of lawsuit recoveries

If you get money from a third party for an injury or illness, the law sets how much pays Medicaid. If the Medicaid claim is one‑third or less of your gross recovery, Medicaid can get the full claim. If the claim is more than one‑third, Medicaid is limited to one‑third of the gross recovery. You must notify the Department (and any designated health plan) within 30 days of receiving money and pay under the timing rules. You can challenge the presumption in court within 30 days; the court holds a hearing no sooner than 60 days after filing.

Tougher rules and fees for adult care

Multiunit assisted housing with services must pay a nonrefundable $350 yearly registration fee. Operating without registration can bring fines up to $50 for a first offense, up to $500 for later offenses, and $1,000 per day if operation continues after conviction. DHHS and counties get stronger inspection powers and can seek court orders to stop unlicensed operations starting December 1, 2025. The VA‑supervised small facility licensure exemption now applies only when caring for no more than three people (reduced from four).

Adoptive, foster parents can review background checks

DHHS must notify adoptive and foster parents and their agencies about decisions based on criminal history checks. Applicants may get a copy of their criminal history to review or challenge accuracy, and DHHS must tell them about these rights. Public child‑placing agencies must have trained staff to receive criminal history information. Foster parents and applicants can request an administrative hearing under Chapter 150B.

After‑hours emergency orders for disabled adults

When the clerk’s office is closed, a magistrate must accept filings for emergency services to a disabled adult and note the date. Starting November 1, 2025, chief district court judges may allow magistrates to hear ex parte emergency motions and issue orders when the court is not in session and no judge is available. Magistrates must deliver signed orders to the clerk when it reopens and document phone authorizations.

Faster, cleaner birth and death records

Local registrars must check certificates for completeness, sign and date them, and require fixes. They must send a copy of each birth and death to the county register of deeds within seven days and send originals to the State monthly or on request. Certificates must be typed or written in permanent black or blue ink. These steps help families get accurate records faster.

Breast density notices and cancer planning

Mammography facilities must tell you your breast density category in plain language. If your breasts are heterogeneously or extremely dense, the notice must explain cancer risk, limits of mammograms, and suggest talking to your doctor about other screening. The cancer advisory committee is updated to up to 34 members, meets no more than twice a year, and must include six legislators and four survivors. DHHS must also consult the Medical Society’s Cancer Committee, which includes at least one physician from each congressional district, on rules and reports.

Federal exchange can decide Medicaid

The Department can use the federal health exchange to decide Medicaid eligibility. This authority lasts through June 30, 2028. Decisions must follow the State’s eligibility categories, resource limits, and income rules. This can make applying and getting a decision easier for some people.

Faster background checks for child care staff

Child care institutions must get an applicant’s consent and fingerprint cards before employment. They must submit the criminal history background check no later than five business days after conditional employment starts. This speeds safety checks for centers and families.

Donate tax refund to cancer screening

You can choose to give part or all of your state income tax refund to support early detection of breast and cervical cancer. This option remains available for taxable years beginning before January 1, 2030. It is voluntary and does not change your tax due, only your refund amount if you donate.

Broader teams review child deaths and injuries

County Local Teams that review child deaths and serious injuries must include the DSS director or a senior designee and a DSS staff member. Required seats also include law enforcement, the district attorney, schools, public health, a judge, a medical examiner, child care/Head Start, and a parent appointed by county commissioners. Chairs may invite up to five experts for specific reviews.

Stronger rules for alcohol screening tests

A blood alcohol result below 0.05 is evidence a detained person is no longer impaired unless other substances are involved. Periodic alcohol tests used only for detention decisions cannot be used at trial in impaired‑driving cases. Tests must use DHHS‑approved devices and licensed testers, and follow DHHS rules. A refusal to comply with a court‑requested chemical analysis is not admissible in criminal, administrative, or civil reviews of agency decisions.

Hospitals must report workplace violence

Hospitals must report each year by February 28 on assaults needing law enforcement, violent incidents tied to behavioral health or substance use, and workplace violence reported to accrediting bodies or OSHA. DHHS compiles and shares the data and reports findings and recommendations to lawmakers by May 1 each year. The law also repeals the NC New Organizational Vision Award program and the related statutory part in hospital law.

More people can give epinephrine

The Office of Emergency Medical Services approves people who complete the Secretary’s training to give epinephrine in emergencies when no doctor is present. This training can be part of EMS training. The change can speed help for severe allergic reactions.

Pilots to restore capacity for defendants

DHHS or an LME/MCO can contract for three or more community‑based capacity restoration programs and, with sheriff consent, up to three detention‑center programs. Regional programs must align with the nearest State psychiatric hospital, and sheriffs must have operational agreements before referrals. DHHS and the courts must also study and propose a permanent capacity‑restoration process that avoids involuntary commitment, with a report due January 1, 2026.

State‑funded school nurses focus on health

School nurses paid with State funds cannot do teaching or school administration. They must coordinate health services, provide nursing care and health education, spot health and safety risks, support healthy food and activity policies, and make counseling and mental‑health referrals. They also advise staff and help public health responses. State‑funded nurses must be available to assist county health departments during public‑health emergencies.

Stricter Medicaid provider screening tiers

DHHS must screen all new Medicaid provider enrollments and revalidations and assign each provider a risk level: limited, moderate, or high. The highest applicable level applies. This screening rule is retroactive to January 1, 2023. The law also updates which provider types fall into each tier, retroactive to January 1, 2024.

Sponsors & Cosponsors

Sponsor

Larry W. Potts
Republican • House

Cosponsors

Carla D. Cunningham
Independent • House
Rodney D. Pierce
Democratic • House
Jeffrey C. McNeely
Republican • House
MD Timothy Reeder
Republican • House
Donna McDowell White
Republican • House
Shelly Willingham
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 308 • No: 0

House vote • 6/26/2025

HB 576: Department of Health and Human Services Revisions.

Yes: 108 • No: 0 • Other: 10

Senate vote • 6/25/2025

HB 576: Dept. of Health and Human Services Revisions.-AB

Yes: 46 • No: 0 • Other: 4

Senate vote • 6/17/2025