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Bill Summary · HB 165

Summary — HB 165: Child and Family Welfare Ombudsman Office (North Carolina, 2025)

Status: Passed 1st Reading
Filed: 2025
Statutory placement: New Part 6A added to Article 3, Chapter 143B (creates G.S. § 143B‑156.1)

Purpose / Intent

Establish a Child and Family Welfare Ombudsman Office within the NC Department of Health and Human Services (DHHS) to advocate for and assist youth, birth families, and resource parents (foster parents), and to help resolve problems and disputes arising in the child welfare system. The Office is intended to provide neutral review, education, mediation, and targeted assistance related to foster home licensure, placement, adoption processes, and other child‑welfare matters.

Key provisions

  • Establishment and reporting
    • Creates the Child and Family Welfare Ombudsman Office within DHHS; the Office reports directly to the DHHS Secretary.
    • Secretary selects the Ombuds (must be qualified and have relevant work or “lived” experience); additional staff also should have foster‑care work or lived experience.
  • Core functions and authorities
    • Assist foster/resource parents with issues and licensing processes for family and therapeutic foster homes.
    • Help with placement of children in foster care and assist in adoption procedures; provide support and information to support the foster‑care process.
    • Investigate and attempt to resolve barriers to licensure or compliance; assist with waiver applications where applicable.
    • Gather information via interviews and direct access to case information in court and State databases.
    • Provide outreach, educational materials, classes or instructional videos for resource parents; identify supportive resources.
    • Develop mediation processes and coordinate with DHHS, the Social Services Commission, local county departments of social services, and relevant agencies.
  • Neutrality and confidentiality
    • The Office must operate neutrally and independently, prioritizing its internal scope without interference from other agencies.
    • Communications between the Office and prospective resource parents or individuals seeking assistance are confidential and are excluded from public records under Chapter 132.
  • Whistleblower protections
    • Prohibits adverse actions (termination, demotion, retaliation, hostile work environment, etc.) against persons who report violations of law or ethical concerns to the Office. The Office will review reports and may refer matters to law enforcement or the Attorney General as appropriate.
  • Reporting and transparency
    • By October 1 each year the Office must compile and submit data to the Governor’s Office and DHHS on inquiries/complaints and recurring trends (quantitative and qualitative); reports must be published on the Office’s website.
    • The Office must submit a report to the Joint Legislative Oversight Committee on Health and Human Services by November 1 each year.
  • Rulemaking
    • DHHS shall engage in appropriate rulemaking to implement the act.

Appropriations, staffing, timeline, and procedural details

  • Appropriation: recurring
    • FY 2025–26: $137,000
    • FY 2026–27: $145,000
    • Funding is to establish the Office and hire one full‑time equivalent (1.0 FTE).
  • Operational deadline: DHHS must have the Office operational by January 1, 2026.
  • Effective dates:
    • Sections establishing the Office and the appropriation (Sections 1 and 2) become effective July 1, 2025.
    • Remaining provisions take effect when the act becomes law.

Who is affected

  • Primary beneficiaries: youth in foster care, birth families, resource parents (foster and therapeutic foster parents).
  • Affected entities: DHHS, Social Services Commission, county departments of social services, courts (through case access), and agencies receiving referrals.
  • Stakeholders: foster‑care providers, child welfare advocates, legal/attorney general and law enforcement where referrals are made.

Potential impacts / considerations

  • Direct fiscal impact is limited to the specified appropriation and one staff position; other costs (e.g., IT access to case databases, coordination tasks, additional staff) are not explicitly funded in the bill.
  • Establishes a neutral, centralized resource for complaints, mediation, education, and advocacy which may improve problem resolution, increase transparency of recurring system issues, and support resource parents.
  • Confidentiality protections and the ability to access case information are designed to protect privacy while enabling effective investigations; the Office’s independence could reduce perceived conflicts when resolving disputes between families and child welfare agencies.
  • The Office’s mandate to operate without agency interference and to refer potential legal violations could lead to increased oversight and escalation of systemic issues to law enforcement or the Attorney General when warranted.

For full text and statutory language, see the bill adding Part 6A to Article 3 of Chapter 143B (G.S. § 143B‑156.1).

Compiled from official sources — confirm details with the bill’s official record.

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