North CarolinaHB 11232025-2026 SessionHouseWALLET

AN ACT TO MAKE VARIOUS CHANGES RELATED TO THE UNIVERSITY OF NORTH CAROLINA AND UPDATES TO STATUTES RELATED TO CONTRACTING FOR CAPITAL PROJECTS.

Sponsored By: Dean Arp (Republican), Kelly E. Hastings (Republican), Donny Lambeth (Republican), Ray Pickett (Republican)

Signed by Governor

ARCHITECTS & ARCHITECTUREARTSBOARDSBUDGETINGBUILDINGSCAPITAL SPENDINGCOLLEGES & UNIVERSITIESCONSTRUCTIONCONTRACTSCOUNTIESCULTURAL RESOURCESEDUCATIONFUNDINGFUNDS & ACCOUNTSGRANTSHIGHER EDUCATIONINFRASTRUCTUREMUNICIPALITIESOCCUPATIONSPRESENTEDPROPERTYPUBLICRATIFIEDSTEMSCHOOL OF SCIENCE & MATH BOARDSECONDARY EDUCATIONSTATE BUILDINGSDEBT/STATE GOVERNMENTTUITIONUNCUNC BOARD OF GOVERNORSDURHAM COUNTYNEW HANOVER COUNTYWAKE COUNTYMECKLENBURG COUNTYCHARLOTTECHAPEL HILLORANGE COUNTYWILMINGTONRALEIGHDURHAMCHAPTEREDSCHOLARSHIPS & FINANCIAL AIDPUBLIC BUILDINGSPROPERTY-STATE GOVERNMENTCAPITAL & INFRASTRUCTURE FUNDRESIDENCYSCHOOL OF SCIENCE & MATHSCHOOL OF THE ARTSSCHOOL OF THE ARTS BOARD

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 2 benefits, 0 costs, 5 mixed.

Tuition grants for NCSSM and Arts grads

Beginning with the 2026–2027 award year, the State gives tuition grants to graduates of the NC School of Science and Mathematics and the UNC School of the Arts. You must be a North Carolina resident for tuition, enroll full time the next year, and you can delay up to one year for military duty, serious medical issues, disability, or other hardship. Grants cover undergraduate tuition for up to eight academic terms. The State Education Assistance Authority runs the program, requires a FAFSA or other papers, and your school must certify you before payment. If you are not enrolled full time by the 10th class day, the school must refund the grant, and if funds fall short, awards are prorated; up to 5% may be used for administration.

UNC capital projects and bonds approved

The law funds selected UNC projects using non‑General Fund sources like gifts, grants, receipts, Medicare education reimbursements, and hospital patient revenues. Examples include NC State’s Cates West Phase I ($295 million) and UNC‑Chapel Hill’s New Residence Hall I ($141.2 million). Tuition and the General Fund are not used unless already allowed by statute. The UNC Board of Governors may issue special obligation bonds with Budget Director approval, up to each project’s listed amount plus 5% for costs and any increases the Director authorizes. The Budget Director may also change a project’s cost or funding method when it is in the State’s best interest.

Faster small UNC building contracts

The UNC Board of Governors runs design and construction for projects costing $4,000,000 or less. The Board may delegate to qualified campuses with required approvals, must use standard State contracts, and cannot split contracts to dodge the limit. UNC can award construction or repair contracts under $1,500,000 without following the usual bidding rules. State and community college capital projects under $1,500,000 are also exempt from that Article’s procedures. The Board files a yearly report on awards, including minority‑business participation.

Higher design‑seal and retainage thresholds

Repairs to most public buildings need an architect or engineer when they cost over $300,000; for UNC, the repair cutoff is $500,000. Work that affects life‑safety systems or has major structural changes needs sealed plans at $150,000 or more, and smaller jobs that do not touch life‑safety systems do not need a compliance certificate. The law raises the capital‑improvement definition to $150,000. Public owners cannot hold retainage on projects under $150,000; normal retainage rules still apply above that amount.

Fairer NCSSM admissions and residency

Starting with applications for the 2027–2028 school year, NCSSM applicants must be NC residents for tuition for at least 12 months or have a parent on active duty living in NC when they apply. A student’s eligibility ends after any school year in which they become a nonresident for tuition. Admissions and summer institutes aim to admit equal numbers from each congressional district without lowering standards. No district’s share may differ by more than 2.5 percentage points from the statewide district average.

More public projects follow contracting rules

Beginning June 19, 2026, smaller jobs that used to be exempt must follow the building contracting rules, including those under $300,000 (and UNC at $500,000). The same date, all building work done by a public entity must follow subsection (f1). Buying prefabricated or relocatable buildings is excluded when work happens off‑site, but any work done on the job site still follows the statute.

Limits on state funds in PPPs

Starting June 19, 2026, the law defines public‑private partnership projects and sets what they include. State agencies, including UNC campuses, cannot use State funds tied to a PPP project to support a non‑PPP capital or self‑liquidating project without a new law that allows it. The entity created under G.S. 116‑350.5 and the Department of Transportation are exempt from this limit.

Sponsors & Cosponsors

Sponsors

  • Dean Arp

    Republican • House

  • Kelly E. Hastings

    Republican • House

  • Donny Lambeth

    Republican • House

  • Ray Pickett

    Republican • House

Cosponsors

  • Jonathan L. Almond

    Republican • House

  • Vernetta Alston

    Democratic • House

  • Mary Belk

    Democratic • House

  • John R. Bell, IV

    Republican • House

  • Brian Biggs

    Republican • House

  • Jerry "Alan" Branson

    Republican • House

  • Allen Buansi

    Democratic • House

  • Laura Budd

    Democratic • House

  • Grant L. Campbell, MD

    Republican • House

  • Becky Carney

    Democratic • House

  • Tracy Clark

    Democratic • House

  • Mike Colvin

    Democratic • House

  • Tricia Ann Cotham

    Republican • House

  • Carla D. Cunningham

    Independent • House

  • Frances Jackson, PhD

    Democratic • House

  • Gloristine Brown

    Democratic • House

  • Wyatt Gable

    Republican • House

  • Zack Hawkins

    Democratic • House

  • Chris Humphrey

    Republican • House

  • Frank Iler

    Republican • House

  • Jake Johnson

    Republican • House

  • Keith Kidwell

    Republican • House

  • Donnie Loftis

    Republican • House

  • Carolyn G. Logan

    Democratic • House

  • Tim Longest

    Democratic • House

  • Nasif Majeed

    Independent • House

  • Jeffrey C. McNeely

    Republican • House

  • Marcia Morey

    Democratic • House

  • Larry W. Potts

    Republican • House

  • Lindsey Prather

    Democratic • House

  • Heather H. Rhyne

    Republican • House

  • Phil Rubin

    Democratic • House

  • Terry M. Brown Jr.

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 545 • No: 3

House vote • 6/17/2026

HB 1123: UNC Omnibus & Capital Contracting Law Changes.

Yes: 110 • No: 1 • Other: 6

Senate vote • 6/11/2026

HB 1123: UNC Omnibus and Capital Contracting Law Changes.

Yes: 40 • No: 0 • Other: 9

Senate vote • 6/10/2026

HB 1123: UNC Omnibus and Capital Contracting Law Changes.

Yes: 48 • No: 0 • Other: 2

House vote • 5/19/2026

HB 1123: UNC Omnibus and Capital Contracting Law Changes.

Yes: 117 • No: 1 • Other: 1

House vote • 5/19/2026

HB 1123: UNC Omnibus and Capital Contracting Law Changes.

Yes: 117 • No: 1 • Other: 1

House vote • 5/12/2026

HB 1123: UNC Omnibus & Capital Contracting Law Changes.

Yes: 113 • No: 0 • Other: 4

Actions Timeline

  1. Ch. SL 2026-9

    6/19/2026House
  2. Signed by Gov. 6/19/2026

    6/19/2026House
  3. Pres. To Gov. 6/18/2026

    6/18/2026House
  4. Ratified

    6/18/2026House
  5. Ordered Enrolled

    6/17/2026House
  6. Concurred In S Com Sub

    6/17/2026House
  7. Added to Calendar

    6/17/2026House
  8. Cal Pursuant 36(b)

    6/17/2026House
  9. Regular Message Received For Concurrence in S Com Sub

    6/16/2026House
  10. Regular Message Sent To House

    6/16/2026Senate
  11. Passed 3rd Reading

    6/11/2026Senate
  12. Passed 2nd Reading

    6/10/2026Senate
  13. Reptd Fav

    6/9/2026Senate
  14. Re-ref Com On Rules and Operations of the Senate

    6/4/2026Senate
  15. Reptd Fav

    6/4/2026Senate
  16. Re-ref Com On Finance

    6/3/2026Senate
  17. Com Substitute Adopted

    6/3/2026Senate
  18. Reptd Fav Com Substitute

    6/3/2026Senate
  19. Ref to Education/Higher Education. If fav, re-ref to Finance. If fav, re-ref to Rules and Operations of the Senate

    5/21/2026Senate
  20. Passed 1st Reading

    5/21/2026Senate
  21. Regular Message Received From House

    5/21/2026Senate
  22. Regular Message Sent To Senate

    5/20/2026House
  23. Ordered Engrossed

    5/19/2026House
  24. Passed 3rd Reading

    5/19/2026House
  25. Amend Adopted A1

    5/19/2026House

Bill Text

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