Each year many of the universities in the UNC system put in their proposals for construction projects to be endorsed by the UNC-system Board of Governors.
If the projects are approved by the BOG, they then become non-appropriation bills that go before the General Assembly.
The non-appropriations bill will allow the UNC system to use the money provided by fees and donations for improvements in the absence of tax funds.
The Senate passed the non-appropriations bill by a 45-to-0 vote Tuesday.
It will now go before the House for final approval.
An identical version of the bill has been introduced in the House, but it has yet to be heard by any committee.
Sen. John Kerr, D-Greene, who introduced the bill in the Senate, said that this is a way for universities to get funding, "when no tax money is available."
While the bill does not specifically state how much funding the universities could receive from the state for the projects, it does include several provisions that would allow the state to fund some of the projects at a later date.
At UNC-Chapel Hill the legislation approves the construction of a $44 million Ramshead Complex for Parking and Student Support and $10 million for the renovation of several residence halls.