Children's Online Safety Act/Funds.

SB 722 creates the Online Safety Division within North Carolina’s Department of Justice, the Cyberbullying Unit at the State Bureau of Investigation, and an Online Child Safety Commission. It directly affects major digital platforms with over 5 million users in North Carolina and $25 million in annual revenue, requiring them to implement parental notification systems, disable manipulative design features ("dark patterns"), and provide robust privacy tools for children. Platforms must submit annual Child Impact Assessments detailing risks to minors, limit data collection for children, prohibit targeted advertising, and default to strict privacy settings. The law authorizes civil penalties of up to $500,000 per violation for noncompliance, with funding of $5 million for 2025-2026 allocated to establish these new state units.