Section 1.

States the act’s purpose to authorize the financing of the capital improvement projects listed in this act for the respective institutions of The University of North Carolina with the described funds available, including revenue bonds or special obligation bonds, to the institutions. Authorizes four capital improvement projects for the four listed UNC constituent institutions in the amounts specified. Allows the Director the Budget (Director), upon request of the UNC Board of Governors (BOG), to authorize and increase or decrease in the specified costs, as described. Provides for special obligations bonds capped at the amounts of each capital project cost plus 5% to pay issuance expenses, fund reserve funds, and to pay capitalized interest or other related  costs or project increases.

Section 2.

Modifies the residency requirement for admission of students to the NC School of Science and Mathematics (NCSSM) under GS 116-235 so that it applies to a student who has who has established legal residence (domicile) in North Carolina and maintained that legal residence for at least 12 months immediately prior to his or her classification as a resident for tuition purposes (currently, applicant just has to be a legal resident). Tasks the State Education Assistance Authority (Authority) with determining residency. Makes technical, organizational, and clarifying changes.  Applies beginning with applications to NCSSM for the 2027-28 school year.

Section 3.

Specifies the purpose of the tuition grant for graduates of NCSSM and the NC School of the Arts (NCSOA) in GS 116-209.89 is to provide financial assistance to promote the retention of high-performing students in the State. Adds terms eligible graduate, eligible student, and program. Clarifies that a student’s residency eligibility for a tuition grant is determined at the time of application for the initial tuition grant in GS 116-209.90. Requires that the scholarship recipient be enrolled full-time, as described, to maintain continued eligibility for the scholarship award. Reorganizes the FAFSA submission requirement into GS 116-209.1 (administration of tuition grants) and allows the Authority to require a student to submit other documentation, as necessary to administer and award the tuition grant. Makes conforming and technical changes. Applies with the award of tuition grants in the 2025-26 academic year.

Section 4.

Amends the definition of capital improvement in GS 143C-1-1 to increase the threshold from $100,000 to $150,000 in value. Increases the amounts that trigger use of an architect or an engineer for public buildings under GS 133-1.1 as follows: for buildings needing repair from $300,000 to in excess of $300,000; for buildings needing repairs affecting life safety systems, from $100,000 to $150,000; for buildings where the repair includes major structural changes in framing or foundation, from $135,000 to $150,000, and for construction of or additions to State public buildings, from $135,000 to $150,000. Makes organizational and technical changes. Increases the amount triggering a need for a certificate of compliance with the State Building Code (Code), from $100,000 to $150,000.  Increases the amounts that authorize retainage on periodic or final payments made by the owner or prime contractor in public construction contracts from $100,000 to $150,000. Increases the dollar amount triggering the letting process for public contracts under GS 143-129 from $500,000 to $1.5 million for construction or repair work. Increases the dollar amount falling under UNC’s capital improvement projects under GS 143-64.34 from $500,000 to $1.5 million. Removes the projects tied to dollar amounts under the exceptions to GS 143-128.

Section 5.

Prevents, in GS 143C-8-7.1, State funds appropriated for a capital improvement project at a State agency that is not a public-private partnership (defined) project from being used in conjunction with or for the benefit of public-private partnership project without express authorization by an act of the NCGA.

Section 6.

Designates the BOG as being responsible for the final determinations on all expenditures and project scope for capital improvement projects for UNC and its constituent institutions in GS 116-31.11. Appropriates $1 million from the State Capital and Infrastructure Fund to UNC for 2026-27 to be used for time-limited capital project management positions at the System Office to assist constituent institutions without capital project management staff. Effective July 1, 2026.

Section 7.

Contains a severability clause.

Section 8.

Effective when it becomes law, except as otherwise provided.