NC S638

Authorizes the UNC Board of Governors or President to engage private legal counsel with Attorney General approval and to resolve litigation independently through agreements with the Attorney General.

Allows the Board of Governors to approve expenditures from operating funds for repairs and renovations of state-supported facilities without requiring separate capital approval processes.

Increases the percentage of General Fund reversions that UNC institutions can carry forward from 2.5% to 5%, with amounts above 2.5% deposited in institutional trust funds for one-time expenditures, building repairs, equipment upgrades, and energy savings projects.

Permits UNC institutions to retain tuition revenue collected from self-supporting instructional programs previously approved by the Board of Governors as institutional trust funds rather than returning to General Fund.

Establishes a state aid intercept mechanism requiring the Director of the Budget to withhold UNC appropriations to pay principal and interest on special obligation bonds if institutions fail to make payments 15 days before they are due.

Authorizes the UNC President to create self-insurance trusts or combinations of insurance and self-insurance trusts to cover institutional liability, with coverage levels exceeding $150,000 per claim exempt from certain state employee liability limitations.