North Carolina 2025 Session Status: In Committee 6 D cosponsors

SB 680 — Comprehensive Capital for Childcare Expansion.

Last action — Passed 1st Reading

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the Senate. Introduced March 25, 2025. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the Senate.

Prognosis

Stalled 26% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • In Committee

    Current position in the legislative process.

  • 6 sponsors

    2 primary, 4 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (6 D).

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

70 added · 71 removed

Plain-language change summary

The changes made to SB 680 include clarification in definitions and the removal of redundant phrases, making the language more straightforward. Notably, the bill emphasizes that the North Carolina Child Care Finance Agency will prioritize supporting high-quality child care facilities, which is crucial for improving care standards. Additionally, it specifies that the Executive Director's salary and those of the staff won't be limited by state salary schedules, allowing for potentially more competitive compensation. These changes matter because they convey a commitment to enhancing child care services while also allowing for flexibility in staffing.

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FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA Mar 25, 2025 S.B.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 S 1 SENATE BILL 680 Short Title:
680 SESSION 2025 PRINCIPAL CLERK S D SENATE BILL DRS45337-TCa-6 Short Title:
A BILL TO BE ENTITLED AN ACT TO ESTABLISH THE NORTH CAROLINA CHILD CARE FINANCE AGENCY.
Rules and Operations of the Senate March 26, 2025 A BILL TO BE ENTITLED AN ACT TO ESTABLISH THE NORTH CAROLINA CHILD CARE FINANCE AGENCY.
(3) That the purposes of this Chapter are to provide financing for child care construction, neworrehabilitated, forindividuals providing high-quality child care to families.
(3) That the purposes of this Chapter are to provide financing for child care construction, neworrehabilitated, forindividuals providinghigh-qualitychild care to families.
(b) In accomplishing these public purposes, the North Carolina Child Care Finance Agency,apublicagency andaninstrumentalityoftheState,isactinginallrespectsforthebenefit of the people of the State in the performance of essential public functions and serves a public purpose in improving and otherwise promoting their health, welfare and prosperity.
(b) In accomplishing these public purposes, the North Carolina Child Care Finance Agency,apublicagencyandaninstrumentalityoftheState,isactinginallrespectsforthebenefit of the people of the State in the performance of essential public functions and serves a public purpose in improving and otherwise promoting their health, welfare and prosperity.
The North *DRS45337-TCa-6* General Assembly Of North Carolina Session 2025 Carolina Child Care Finance Agency, is empowered to act on behalf of the State of North Carolina and its people in serving this public purpose for the benefit of the general public.
The North *S680-v-1* General Assembly Of North Carolina Session 2025 Carolina Child Care Finance Agency, is empowered to act on behalf of the State of North Carolina and its people in serving this public purpose for the benefit of the general public.
(c) Whenever feasible, the North Carolina ChildCare Finance Agency shall prioritize the following policy goals in its actions:
(c) Whenever feasible, the North Carolina ChildCare Finance Agencyshall prioritize the following policy goals in its actions:
– Any bank or trust company, savings bank, national banking association, savings and loan association, or building and loan association, life insurance company, mortgage banking company, the federal government, and any other financial institution authorized to transact business in the State.
– Any bank or trust company, savings bank, national banking association, savings and loan association, or building and loan association, life insurance company, mortgage banking company, the federal government, and anyother financial institution authorized to transact business in the State.
Page 2 DRS45337-TCa-6 General Assembly Of North Carolina Session 2025 (9) Mortgagee.
Page 2 Senate Bill 680-First Edition General Assembly Of North Carolina Session 2025 (9) Mortgagee.
– The owner of a beneficial interest in a mortgage loan, the servicer for the owner of a beneficial interest in a mortgage loan, or the trustee for a securitized trust that holds title to a beneficial interest in a mortgage loan.
– The owner of a beneficial interest in a mortgage loan, the servicer for the owner of a beneficial interest in a mortgage loan, or the trustee for a securitized trust thatholds title to a beneficial interest in a mortgage loan.
– The renovation or improvement of a child care facility by the owner or operator of that facility.
– The renovation or improvement of a child care facilitybythe owner or operator of that facility.
– A loan made by a lending institution or by the Authority to any person for the purpose of financing renovation of a child care facility.
– A loan made bya lendinginstitution or bythe Authority to any person for the purpose of financing renovation of a child care facility.
Each member of the board of directors may be removed by the Governor for misfeasance, malfeasance or neglect of duty after reasonable notice and a public hearing, unless the same are in writing expressly waived.
Each member of the board of directors maybe removed bythe Governor for misfeasance, malfeasance or neglect of duty after reasonable notice and a public hearing, unless the same are in writing expressly waived.
DRS45337-TCa-6 Page 3 General Assembly Of North Carolina Session 2025 (g) The Executive Director of the Agency shall be appointed by the Board of Directors, subject to approval by the Governor.
Senate Bill 680-First Edition Page 3 General Assembly Of North Carolina Session 2025 (g) The Executive Director of the Agency shall be appointed by the Board of Directors, subject to approval by the Governor.
The salary of the Executive Director shall be fixed by the Board ofDirectors.
The salaryof the Executive Director shall be fixed bythe Board ofDirectors.
Thesalary ofthe Executive Director andall staffand employees ofthe Agencyshall not be subject to any limitations imposed pursuant to any salary schedule adopted pursuant to the terms of the North Carolina Human Resources Act.
Thesalaryofthe ExecutiveDirector andall staffand employees ofthe Agencyshall not be subject to anylimitations imposed pursuant to any salary schedule adopted pursuant to the terms of the North Carolina Human Resources Act.
The members of the Agency shall receive no compensation for their services but shall be entitled to receive, from funds of the Agency, forattendanceat meetingsoftheAgencyoranycommitteethereofandforotherservices for the Agency reimbursement for such actual expenses as may be incurred for travel and subsistence in the performance of official duties and such per diem as is allowed by law for members of other State boards, commissions and committees.
The members of the Agency shall receive no compensation for their services but shall be entitled to receive, from funds of the Agency, forattendanceat meetings ofthe Agencyoranycommitteethereofandforotherservices for the Agency reimbursement for such actual expenses as may be incurred for travel and subsistence in the performance of official duties and such per diem as is allowed by law for members of other State boards, commissions and committees.
The Secretary may have copies made of all minutes and other records and documents of the Agency and may give certificates under the official seal of the Agency to the effect that such copies are true copies, and all persons dealing with the Agency may rely upon such certificates.
The Secretarymay have copies made of all minutes and other records and documents of the Agency and may give certificates under the official seal of the Agency to the effect that such copies are true copies, and all persons dealing with the Agency may rely upon such certificates.
(3) To acquire on a temporary basis real property, or an interest therein, in its own name, by purchase, transfer or foreclosure, where such acquisition is Page 4 DRS45337-TCa-6 General Assembly Of North Carolina Session 2025 necessary or appropriate to protect any loan in which the Agency has an interest and to sell, transfer and convey any such property to a buyer and, in the event such sale, transfer or conveyance cannot be effected with reasonable promptness or at a reasonable price, to rent or lease such property to a tenant pending such sale, transfer or conveyance.
(3) To acquire on a temporarybasis real property, or an interest therein, in its own name, by purchase, transfer or foreclosure, where such acquisition is Page 4 Senate Bill 680-First Edition General Assembly Of North Carolina Session 2025 necessary or appropriate to protect any loan in which the Agency has an interest and to sell, transfer and convey any such property to a buyer and, in the event such sale, transfer or conveyance cannot be effected with reasonable promptness or at a reasonable price, to rent or lease such property to a tenant pending such sale, transfer or conveyance.
(4) To sell, at public or private sale, all or any part of any mortgage or other instrument or document securing a loan of any type permitted by this Chapter.
(4) To sell, at public or private sale, all or any part of any mortgage or other instrument or document securing a loan of anytype permitted by this Chapter.
(11) To promote research and development in scientific methods of constructing low-costchildcarefacilitiesofhighdurabilityandimprovedsafety andutility.
(11) To promote research and development in scientific methods of constructing low-costchildcarefacilitiesofhighdurabilityandimprovedsafetyandutility.
(18) To employ fiscal consultants, engineers, attorneys, real estate counselors, appraisers and such other consultants and employees as may be required in the judgment of the Agency and to fix and pay their compensation from funds available to the Agency therefor.
(18) To employ fiscal consultants, engineers, attorneys, real estate counselors, appraisers and such other consultants and employees as may be required in the judgment of the Agency and to fix and paytheir compensation from funds available to the Agency therefor.
DRS45337-TCa-6 Page 5 General Assembly Of North Carolina Session 2025 (19) To purchase or to participate in the purchase and enter into commitments by itself or together with others for the purchase of federally insured securities;
Senate Bill 680-First Edition Page 5 General Assembly Of North Carolina Session 2025 (19) To purchase or to participate in the purchase and enter into commitments by itself or together with others for the purchase of federally insured securities;
(21) To acquire, hold, rent, encumber, transfer, convey, and otherwise deal with real property and utilities in the same manner as a private person or corporation, subject only to theapproval oftheGovernorandCouncil ofState.
(21) To acquire, hold, rent, encumber, transfer, convey, and otherwise deal with real property and utilities in the same manner as a private person or corporation, subject onlyto theapproval ofthe Governorand Council ofState.
Such rules and regulations shall bedesignedto effectuatethegeneral purposes ofthis Chapter and the following specific objectives:
Such rules and regulations shall bedesignedto effectuatethe general purposes ofthis Chapter and the following specific objectives:
(b) The interest rate or rates and other terms of federally insured securities or mortgage loans, construction loans, and rehabilitation loans purchased from the proceeds of any issue of bonds of the Agency shall be at least sufficient to assure the payment of said bonds and the Page 6 DRS45337-TCa-6 General Assembly Of North Carolina Session 2025 interest thereon as the same become due from the amounts received by the Agency in repayment of such federally insured securities or such loans and interest thereon.
(b) The interest rate or rates and other terms of federally insured securities or mortgage loans, construction loans, and rehabilitation loans purchased from the proceeds of any issue of bonds of the Agency shall be at least sufficient to assure the payment of said bonds and the Page 6 Senate Bill 680-First Edition General Assembly Of North Carolina Session 2025 interest thereon as the same become due from the amounts received by the Agency in repayment of such federally insured securities or such loans and interest thereon.
(d) The Agency shall require as a condition of the purchase of federally insured securities from a mortgage lender and the purchase or the making of a commitment to purchase mortgage loans from a mortgage lender where the Agency has not given its approval prior to the initial making of the mortgage loan that such mortgage lender shall on or prior to the one-hundred-eightieth day (or such earlier day as may be prescribed by rules and regulations of the Agency) following the receipt of the sale proceeds have entered into written commitments to make, and shall thereafter proceed as promptly as practicable to make from such sale proceeds, new mortgage loans with respect to child care facilities in the State having a stated maturity of not less than 20 years from the date thereof in an aggregate principal amount equal to the amount of such sale proceeds.
(d) The Agencyshall require as a condition of the purchase of federallyinsured securities from a mortgage lender and the purchase or the making of a commitment to purchase mortgage loans from a mortgage lender where the Agency has not given its approval prior to the initial making of the mortgage loan that such mortgage lender shall on or prior to the one-hundred-eightieth day (or such earlier day as may be prescribed by rules and regulations of the Agency) following the receipt of the sale proceeds have entered into written commitments to make, and shall thereafter proceed as promptly as practicable to make from such sale proceeds, new mortgage loans with respect to child care facilities in the State having a stated maturity of not less than 20 years from the date thereof in an aggregate principal amount equal to the amount of such sale proceeds.
(a) The Agency may upon application of a proposed mortgagee insure and make advance commitments to insure payments required by a loan for child care facilities upon such terms and conditions as the Agency may prescribe.
(a) The Agencymayupon application of a proposed mortgagee insure and make advance commitments to insure payments required by a loan for child care facilities upon such terms and conditions as the Agency may prescribe.
Theaggregateprincipal amount ofall mortgages soinsuredby theAgency underthis Chapter and outstanding at any one time shall not exceed 10 times the average annual balance for the preceding calendar year of funds on deposit in the child care mortgage insurance fund, the creation of which is hereby authorized.
Theaggregateprincipal amount of all mortgages soinsuredbytheAgencyunderthis Chapter and outstanding at any one time shall not exceed 10 times the average annual balance for the preceding calendar year of funds on deposit in the child care mortgage insurance fund, the creation of which is hereby authorized.
The aggregate amount of principal obligations of all mortgages so insured shall not be deemed to constitute a debt, liability or obligation of the State or of any political subdivision thereof or a pledge of the faith and credit of the State or of any such political subdivision, but shall be payable solely from moneys on deposit to the credit of the child care mortgage insurance fund.
The aggregate amount of principal obligations of all mortgages so insured shall not be deemed to constitute a debt, liability or obligation of the State or of any political subdivision thereof or a pledge of the faith and credit of the State or of any such political subdivision, but shall be payable solelyfrom moneys on deposit to the credit of the child care mortgage insurance fund.
Any contract of insurance executed by the Agency under this section shall be conclusive evidence of eligibility for such mortgage insurance and the validity of any contract of insurance so executed or of an advance commitment to issue such shall be incontestable in the hands of a mortgagee from the date of execution of such contract or commitment, except for fraud or misrepresentation on the part of such mortgagee and, as to commitments to insure, noncompliance with the terms of the advance commitment or Agency regulations in force at the time of issuance of the advance commitment.
Any contract of insurance executed by the Agency under this section shall be conclusive evidence of eligibility for such mortgage insurance and the validityof anycontract of insurance so executed or of an advance commitment to issue such shall be incontestable in the hands of a mortgagee from the date of execution of such contract or commitment, except for fraud or misrepresentation on the part of such mortgagee and, as to commitments to insure, noncompliance with the terms of the advance commitment or Agency regulations in force at the time of issuance of the advance commitment.
DRS45337-TCa-6 Page 7 General Assembly Of North Carolina Session 2025 (4) Contain amortization provisions satisfactory to the Agency requiring periodic payments by the mortgagor not in excess of the ability to pay as determined by the Agency.
Senate Bill 680-First Edition Page 7 General Assembly Of North Carolina Session 2025 (4) Contain amortization provisions satisfactory to the Agency requiring periodic payments by the mortgagor not in excess of the ability to pay as determined by the Agency.
The Agency shall cause an investigation of the proposed project to be made, review the application and the report of the investigation, and approve or deny the application.
The Agency shall cause an investigation of the proposed project to be made, review the application and the report of the investigation, and approve or denythe application.
Any such approval shall be conditioned upon payment to the Agency, within such reasonable time and after notification of approval as may be specified by the Agency, of the commitment fee prescribed by the Agency.
Any such approval shall be conditioned upon payment to the Agency, within such reasonable time and after notification of approval as maybe specified by the Agency, of the commitment fee prescribed by the Agency.
When it appears feasible, the Agencymayforatemporaryperiodupondefaultorthreateneddefaultbythemortgagorauthorize mortgage payments to be made by the Agency to the mortgagee which payments shall be repaid under such conditions as the Agency may prescribe.
When it appears feasible, the Agencymayforatemporaryperiodupondefaultorthreateneddefaultbythemortgagorauthorize mortgage payments to be made by the Agency to the mortgagee which payments shall be repaid under such conditions as the Agencymayprescribe.
The Agency may also agree to revised terms of financing when such appear prudent.
The Agencymay also agree to revised terms of financing when such appear prudent.
(1) Anysale ofthe mortgagedproperty bycourtorder in foreclosureora sale with the consent of the Agency by the mortgagor or a subsequent owner of the property or by the mortgagee after foreclosure or acquisition by deed in lieu of foreclosure, provided all claims of the mortgagee against the mortgagor or others arising from the mortgage, foreclosure, or any deficiency judgment shall be assigned to the Agency without recourse except such claims as may have been released with the consent of the Agency;
(1) Anysale ofthe mortgagedpropertybycourtorder in foreclosureora sale with the consent of the Agency by the mortgagor or a subsequent owner of the property or by the mortgagee after foreclosure or acquisition by deed in lieu of foreclosure, provided all claims of the mortgagee against the mortgagor or others arising from the mortgage, foreclosure, or any deficiency judgment shall be assigned to the Agency without recourse except such claims as may have been released with the consent of the Agency;
Upon the occurrence of either (1), (2) or (3) hereof, the obligation of the mortgagee to pay premium charges for insurance shall cease, and the Agency shall, within 30 days thereafter, pay to the mortgagee ninety-eight percent (98%) of the sum of (i) the then unpaid principal balance Page 8 DRS45337-TCa-6 General Assembly Of North Carolina Session 2025 of the insured indebtedness, (ii) the unpaid interest to the date of conveyance or assignment to the Agency, as the case may be, (iii) the amount of all payments made by the mortgagee for which it has not been reimbursed for taxes, insurance, assessments and mortgage insurance premiums, and (iv) such other necessary fees, costs or expenses of the mortgagee as may be approved by the Agency.
Upon the occurrence of either (1), (2) or (3) hereof, the obligation of the mortgagee to pay premium charges for insurance shall cease, and the Agency shall, within 30 days thereafter, pay to the mortgagee ninety-eight percent (98%) of the sum of (i) the then unpaid principal balance Page 8 Senate Bill 680-First Edition General Assembly Of North Carolina Session 2025 of the insured indebtedness, (ii) the unpaid interest to the date of conveyance or assignment to the Agency, as the case may be, (iii) the amount of all payments made by the mortgagee for which it has not been reimbursed for taxes, insurance, assessments and mortgage insurance premiums, and (iv) such other necessary fees, costs or expenses of the mortgagee as may be approved by the Agency.
(f) Upon request of the mortgagee, the Agency may at any time, under such terms and conditions as it may prescribe, consent to the release of the mortgagor from the mortgagor's liability orconsent to thereleaseofpartsofthepropertyfrom thelien ofthe mortgage,orapprove a substitute mortgagor or sale of the property or part thereof.
(f) Upon request of the mortgagee, the Agency may at any time, under such terms and conditions as it may prescribe, consent to the release of the mortgagor from the mortgagor's liabilityor consent to the releaseofparts ofthepropertyfrom thelienofthe mortgage,orapprove a substitute mortgagor or sale of the property or part thereof.
(b) Notwithstanding any other provision of this section, the interest rate or rates and other terms of the loans to lenders made from the proceeds of any issue of bonds of the Agency shall provide that the amounts received by the Agency in repayment of the loans and interest thereon shall be at least sufficient to assure the payment of the principal of and the interest on the bonds as they become due.
(b) Notwithstanding anyother provision of this section, the interest rate or rates and other terms of the loans to lenders made from the proceeds of any issue of bonds of the Agency shall provide that the amounts received by the Agency in repayment of the loans and interest thereon shall be at least sufficient to assure the payment of the principal of and the interest on the bonds as they become due.
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(d) Theloansto lendersshall begeneral obligations of therespectivelendersowing them.
(d) Theloansto lendersshall begeneral obligations of therespectivelendersowingthem.
The Agency shall require that such loans shall be secured as to payment of both principal and interest by a pledge and lien upon collateral security.
The Agency shall require that such loans shall be secured as to payment of both principal and interest bya pledge and lien upon collateral security.
The collateral security itself shall be in such amount as the Agency determines will assure the payment of the principal of and the interest on the bonds as they become due.
The collateral securityitself shall be in such amount as the Agency determines will assure the payment of the principal of and the interest on the bonds as theybecome due.
Collateral security shall be deemed to be sufficient if the principal of and the interest on the collateral security, when due, will be sufficient to pay the principal of and the interest on the bonds.
Collateral securityshall be deemed to be sufficient if the principal of and the interest on the collateral security, when due, will be sufficient to pay the principal of and the interest on the bonds.
(iv) mortgages insured or guaranteed by the United States of America or an instrumentality of it as DRS45337-TCa-6 Page 9 General Assembly Of North Carolina Session 2025 to payment of principal and interest;
(iv) mortgages insured or guaranteed by the United States of America or an instrumentality of it as Senate Bill 680-First Edition Page 9 General Assembly Of North Carolina Session 2025 to payment of principal and interest;
Each obligation issued under this Chapter shall contain on the face thereof a statement to the effect that the Agency shall not be obligated to pay the same nor the interest thereon except from the revenues or assets pledged therefor and that neither the faith and credit nor the taxing power of the State or of any political subdivision thereof is pledged to the payment of the principal of or the interest on such obligation.
Each obligation issued under this Chapter shall contain on the face thereof a statement to the effect that the Agency shall not be obligated to pay the same nor the interest thereon except from the revenues or assets pledged therefor and that neither the faith and credit nor the taxing power of the State or of anypolitical subdivision thereof is pledged to the payment of the principal of or the interest on such obligation.
Expenses incurred by the Agency in carrying out the provisions of this Chapter may be made payable from funds provided pursuant to this Chapter and no liability shall be incurred by the Agency hereunder beyond the extent to which moneys shall have been so provided.
Expenses incurred by the Agencyin carrying out the provisions of this Chapter may be made payable from funds provided pursuant to this Chapter and no liability shall be incurred by the Agency hereunder beyond the extent to which moneys shall have been so provided.
TheAgency is hereby authorizedto provide forthe issuance, at onetimeor fromtimeto time, of bonds and notes of the Agency to carry out and effectuate its corporate purposes.
TheAgencyis herebyauthorizedto provide forthe issuance, at onetimeor fromtimeto time, of bonds and notes of the Agency to carry out and effectuate its corporate purposes.
The Agency also is hereby authorized to provide for the issuance, at one time or from time to time of (i) bond anticipation notes in anticipation of the issuance of such bonds and (ii) construction loan notes to financethe making or purchase of mortgage loans,constructionloans, and rehabilitationloans, for the construction, rehabilitation or improvement of child care facilities.
The Agency also is hereby authorized to provide for the issuance, at one time or from time to time of (i) bond anticipation notes in anticipation of the issuance of such bonds and (ii) construction loan notes to financethe makingor purchase of mortgage loans,constructionloans, and rehabilitationloans, for the construction, rehabilitation or improvement of child care facilities.
The total amount of bonds, bond anticipation notes, and construction loan notes outstanding at any one time shall not exceed twelvebillion dollars($12,000,000,000) excluding therefrom any bondanticipation notes for the payment of which bonds have been issued.
The total amount of bonds, bond anticipation notes, and construction loan notes outstanding at any one time shall not exceed twelvebillion dollars($12,000,000,000) excludingtherefrom anybond anticipation notes for the payment of which bonds have been issued.
The principal of and the interest on such bonds or notes shall be payable solely from the funds herein provided for such payment.
The principal of and the interest on such bonds or notes shall be payable solelyfrom the funds herein provided for such payment.
Any such notes may be made payable from the proceeds of bonds or renewal notes or, in the event bond or renewal note proceeds are not available, such notes may be paid from any available revenues or assets of the Agency.
Anysuch notes may be made payable from the proceeds of bonds or renewal notes or, in the event bond or renewal note proceeds are not available, such notes may be paid from any available revenues or assets of the Agency.
The bonds or notes may be issued in coupon or in registered form, or both, as the Agency may Page 10 DRS45337-TCa-6 General Assembly Of North Carolina Session 2025 determine, and provision may be made for the registration of any coupon bonds or notes as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds or notes of any bonds or notes registered as to both principal and interest, and for the interchange of registered and coupon bonds or notes.
The bonds or notes may be issued in coupon or in registered form, or both, as the Agency may Page 10 Senate Bill 680-First Edition General Assembly Of North Carolina Session 2025 determine, and provision may be made for the registration of any coupon bonds or notes as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds or notes of any bonds or notes registered as to both principal and interest, and for the interchange of registered and coupon bonds or notes.
Such trust agreement or resolution may contain such provisions for protecting and enforcing the rights and remedies of the holders of any such obligations as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the Agency in relation to the purposes to which obligation proceeds may be applied, the disposition or pledging of the revenues or assets of the Agency, the terms and conditions for the issuance of additional obligations, and the custody, safeguarding and application ofall moneys.It shall belawfulforany bank ortrust company incorporatedunder the laws of the State which may act as depositary of the proceeds of obligations, revenues or other money hereunder to furnish such indemnifying bonds or to pledge such securities as may be required by the Agency.
Such trust agreement or resolution may contain such provisions for protecting and enforcing the rights and remedies of the holders of any such obligations as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the Agency in relation to the purposes to which obligation proceeds may be applied, the disposition or pledging of the revenues or assets of the Agency, the terms and conditions for the issuance of additional obligations, and the custody, safeguarding and application ofall moneys.
Any such trust agreement or resolution may set forth the rights and remedies of the holders of any obligations and of the trustee, and may restrict the individual right of action by any such holders.
It shall belawfulforanybankortrust companyincorporatedunder the laws of the State which may act as depositary of the proceeds of obligations, revenues or other money hereunder to furnish such indemnifying bonds or to pledge such securities as may be required by the Agency.
In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the Agency may deem reasonable and proper for the security of the holders of any obligations.
Any such trust agreement or resolution may set forth the rights and remedies of the holders of anyobligations and of the trustee, and may restrict the individual right of action byanysuch holders.
In addition to the foregoing, anysuch trust agreement or resolution may contain such other provisions as the Agency may deem reasonable and proper for the security of the holders of any obligations.
DRS45337-TCa-6 Page 11 General Assembly Of North Carolina Session 2025 The pledge of any assets or revenues of the Agency to the payment of the principal of or the interest on any obligations of the Agency shall be valid and binding from the time when the pledge is made and any such assets or revenues shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Agency, irrespective of whether such parties have notice thereof.
Senate Bill 680-First Edition Page 11 General Assembly Of North Carolina Session 2025 The pledge of any assets or revenues of the Agency to the payment of the principal of or the interest on any obligations of the Agency shall be valid and binding from the time when the pledge is made and any such assets or revenues shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Agency, irrespective of whether such parties have notice thereof.
159-30(b) the Agency may deposit moneys at interest in banks or trust companies outside as well as in this State, as long as any moneys at deposit outside this State are collateralized to the same extent and manner as if at deposit in this State.
159-30(b) the Agencymaydeposit moneys at interest in banks or trust companies outside as well as in this State, as long as any moneys at deposit outside this State are collateralized to the same extent and manner as if at deposit in this State.
The repurchase agreement provides that it shall be terminated, without penalty, if the institution with which the repurchase agreement is Page 12 DRS45337-TCa-6 General Assembly Of North Carolina Session 2025 entered or by whom the institution's obligations are guaranteed fails to maintain (i) in the event that the repurchase agreement was entered into in reliance upon the rating of the institution's long-term obligations, a rating of its long-term obligations in one of the three highest ratings categories by at least one nationally recognized securities rating agency, or (ii) in the event that the repurchase agreement was entered into in reliance upon the rating of the institution's short-term obligations, a rating of its short-term obligations in one of the two highest ratings categories by at least one nationally recognized securities rating agency.
The repurchase agreement provides that it shall be terminated, without penalty, if the institution with which the repurchase agreement is Page 12 Senate Bill 680-First Edition General Assembly Of North Carolina Session 2025 entered or by whom the institution's obligations are guaranteed fails to maintain (i) in the event that the repurchase agreement was entered into in reliance upon the rating of the institution's long-term obligations, a rating of its long-term obligations in one of the three highest ratings categories by at least one nationally recognized securities rating agency, or (ii) in the event that the repurchase agreement was entered into in reliance upon the rating of the institution's short-term obligations, a rating of its short-term obligations in one of the two highest ratings categories by at least one nationally recognized securities rating agency.
The repurchase agreement does not have to beterminated,however,if anewguarantor meeting the rating requirement set forth in subparagraph a.
The repurchase agreement does not have to beterminated,however,if anew guarantor meeting the rating requirement set forth in subparagraph a.
DRS45337-TCa-6 Page 13 General Assembly Of North Carolina Session 2025 "§ 122F-16.
Senate Bill 680-First Edition Page 13 General Assembly Of North Carolina Session 2025 "§ 122F-16.
Such obligations are hereby made securities which may properly and legally be deposited with and received by any State or municipal officer or any agency or political subdivision of the State for any purpose for which the deposit of bonds, notes or obligations of the State is now or may hereafter be authorized by law.
Such obligations are hereby made securities which may properlyand legally be deposited with and received by anyState or municipal officer or any agency or political subdivision of the State for any purpose for which the deposit of bonds, notes or obligations of the State is now or may hereafter be authorized by law.
Pending the application of the proceeds of any such refunding obligations, with any other available funds, to the payment of the principal, accrued interest and any redemption premium on the obligations being refunded, and, if so provided or permitted in the resolution authorizing the issuance of such refunding obligations or in the trust agreement securing the same, to the payment of any interest on such refunding obligations and any expenses in connection with such refunding, such proceeds may be invested in direct obligations of, or obligations the principal of and the interest on which are unconditionally guaranteed by, the United States of America which shall mature or which shall be subject to redemption by the holders thereof, at the option of such holders, not later than the respective dates when the proceeds, together with the interest accruing thereon, will be required for the purposes intended.
Pending the application of the proceeds of any such refunding obligations, with any other available funds, to the payment of the principal, accrued interest and any redemption premium on the obligations being refunded, and, if so provided or permitted in the resolution authorizing the issuance of such refunding obligations or in the trust agreement securing the same, to the payment of any interest on such refunding obligations and any expenses in connection with such refunding, such proceeds may be invested in direct obligations of, or obligations the principal of and the interest on which are unconditionally guaranteed by, the United States of America which shall mature or which shall be subject to redemption by the holders thereof, at the option of such holders, not later than the respective dates when the proceeds, together with the interest accruingthereon, will be required for the purposes intended.
– The Agency shall cause an audit of its books and accounts to be made at least once in each year by an independent certified public accountant and the cost thereof may be paid from any available moneys of the Agency.
– The Agencyshall cause an audit of its books and accounts to be made at least once in each year by an independent certified public accountant and the cost thereof may be paid from any available moneys of the Agency.
Page 14 DRS45337-TCa-6 General Assembly Of North Carolina Session 2025 "§ 122F-19.
Page 14 Senate Bill 680-First Edition General Assembly Of North Carolina Session 2025 "§ 122F-19.
The exercise of the powers granted by this Chapter will be in all respects for the benefit of thepeople oftheState, fortheir well-being andprosperity and for the improvement of theirsocial and economic conditions, and the Agency shall not be required to pay any tax or assessment on any property owned by the Agency under the provisions of this Chapter or upon the income therefrom.
The exercise of the powers granted by this Chapter will be in all respects for the benefit of thepeople oftheState, fortheir well-beingandprosperityand for theimprovementof theirsocial and economic conditions, and the Agency shall not be required to pay any tax or assessment on any property owned by the Agency under the provisions of this Chapter or upon the income therefrom.
DRS45337-TCa-6 Page 15 General Assembly Of North Carolina Session 2025 d.
Senate Bill 680-First Edition Page 15 General Assembly Of North Carolina Session 2025 d.
Page 16 DRS45337-TCa-6
Page 16 Senate Bill 680-First Edition
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How this bill changes current law

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Compared against the N.C. General Statutes as published AI-generated reading aid — verify against the official bill.

The bill establishes the North Carolina Child Care Finance Agency, creating a new agency responsible for financing child care facilities and programs.

  • Chapter 122F. North Carolina Child Care Finance Agency.

    Introduces a new chapter in the General Statutes specifically for the North Carolina Child Care Finance Agency.

  • § 122F-1. Short title. This Chapter shall be known and may be cited as the "North Carolina Child Care Finance Agency Act."

    Defines the short title for the newly established chapter regarding the Child Care Finance Agency.

  • § 122F-2. Legislative findings and purposes. (a) The General Assembly hereby finds and declares the following: (1) That there exists in the State of North Carolina a serious shortage of accessible and affordable child care. This statewide shortage severely impacts the State's workforce and economy and is inimical to the health, safety, welfare and prosperity of all residents of the State and to the sound growth of North Carolina's economy. (2) That private enterprise and investment have not been able to produce, without assistance, the needed supply or rehabilitation of child care facilities to provide sufficient child care for the State's workforce, including low-income families. It is imperative that the supply of child care for families be increased; and that private enterprise and investment be encouraged to sponsor, build, rehabilitate, and operate child care for families to remove barriers to employment and to foster healthy development for children. (3) That the purposes of this Chapter are to provide financing for child care construction, new or rehabilitated, for individuals providing high-quality child care to families. (4) That faith-based organizations are eligible for financing for child care construction that provides high-quality child care. (5) That businesses that make child care accessible to their employees are eligible for financing for child care construction that provides high-quality child care.

    Establishes legislative findings regarding the need for child care in North Carolina and outlines the purpose of the Child Care Finance Agency.

  • § 122F-3. Definitions. The following definitions apply in this Chapter: (1) Agency. – The North Carolina Child Care Finance Agency created by this Chapter. (2) Bonds or notes. – The bonds or the bond anticipation notes or construction loan notes authorized to be issued by the Agency under this Chapter. (3) Child care facility. – As defined in G.S. 110-86. For the purposes of this chapter, a child care facility does not include a residential dwelling where child care is provided. (4) Construction loan. – A loan made by a lending institution or by the Authority to any person for the purpose of financing construction of a child care facility. (5) Federally insured securities. – An evidence of indebtedness secured by a first mortgage lien on child care centers and insured or guaranteed as to repayment of principal and interest by the United States or any agency or instrumentality thereof. (6) Governmental agency. – Any department, division, public agency, political subdivision, or other public instrumentality of the State, the federal government, any other State or public agency, or any two or more thereof. (7) Mortgage or mortgage loan. – A mortgage loan for child care facilities, including, without limitation, a mortgage loan to finance, either temporarily or permanently, the construction, rehabilitation, improvement, or acquisition and rehabilitation or improvement of a child care facility and a mortgage loan insured or guaranteed by the United States or an instrumentality thereof or for which there is a commitment by the United States or an instrumentality thereof to insure such a mortgage. A mortgage obligation may be evidenced by a security document and secured by a lien upon real property, including a deed of trust and land sale agreement. (8) Mortgage lenders. – Any bank or trust company, savings bank, national banking association, savings and loan association, or building and loan association, life insurance company, mortgage banking company, the federal government, and any other financial institution authorized to transact business in the State.

    Defines key terms relevant to the North Carolina Child Care Finance Agency.

  • § 122F-4. North Carolina Child Care Finance Agency. (a) There is hereby created a body politic and corporate to be known as "North Carolina Child Care Finance Agency" which shall be constituted a public agency and an instrumentality of the State for the performance of essential public functions. (b) The Agency shall be governed by a board of directors composed of 12 members for a term of four years beginning July 1. The directors of the Agency shall be residents of the State and shall not hold other public office. (c) The Agency shall be appointed as follows: (1) Six members appointed by the Governor as follows: ...

    Creates the North Carolina Child Care Finance Agency as a public agency responsible for financing child care facilities and related operations.

Action History

  1. Passed 1st Reading

  2. Ref To Com On Rules and Operations of the Senate

  3. Withdrawn From Com

  4. Re-ref Com On Appropriations/Base Budget

  5. Filed

Sponsors

Sponsorship breakdown

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2 sponsors · 4 co-sponsors · 173 not signed on

Sponsors (2)

Co-sponsors (4)

Not signed on (173)

173 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

public-safety labor education
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 680?
SB 680 is sponsored by Joyce Waddell (Democratic), Natalie S. Murdock (Democratic), Woodson Bradley (Democratic), Michael Garrett (Democratic), Jay J. Chaudhuri (Democratic), and Sophia Chitlik (Democratic).
What is the current status of SB 680?
This bill is in committee in the Senate. Introduced March 25, 2025. It must pass committee before a floor vote.
Where can I track SB 680?
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