House Bill 652 amends North Carolina law governing the Department of Transportation’s efficiency and cost-control requirements for transportation goods used in highway maintenance and construction. The bill revises G.S. 136-18.05(b)(1a) to change how the Department calculates baseline unit pricing and annual targets, replacing the prior reference to a 2015-2016 fiscal year data collection and rolling three-year average with updated language tied to the Department’s ongoing pricing structure and annual efficiency efforts.
The measure keeps the existing framework that requires Highway Divisions to monitor unit pricing, stay within a 10% variance of the baseline unit price, and report to legislative oversight and fiscal committees if they exceed that threshold. It also preserves the Department’s ability to reduce unit pricing over time as efficiencies are achieved. The act takes effect July 1, 2025.
Impact
The bill affects state transportation procurement and internal cost-monitoring practices by modifying how the Department of Transportation establishes and updates unit pricing for goods used in highway maintenance and construction. It does not create a new program, but it updates the statutory methodology for calculating pricing benchmarks and reinforces reporting obligations for divisions that exceed the allowable variance. The primary affected parties are the Department of Transportation, Highway Divisions, and legislative oversight committees that receive variance reports.
Sentiment
The available voting history suggests broad support for the bill, with the House passing second reading unanimously by a 108-0 vote. No committee transcript is available, but the bill’s focus on efficiency, cost control, and savings in transportation spending indicates a generally favorable reception. The absence of recorded opposition in the vote suggests little public controversy at this stage.
Contention
There is no recorded committee debate or opposition in the materials provided, so no specific points of contention are documented. Based on the text, any potential concerns would likely center on how the Department calculates baseline prices, whether the 10% variance threshold is flexible enough to reflect regional differences, and how strictly Highway Divisions will be monitored and required to justify deviations. However, the vote history does not show these issues generating visible disagreement.
State property; creating a differential pricing preference for the cost of goods manufactured or produced in the United States of America. Effective date.
State property; creating a differential pricing preference for the cost of goods manufactured or produced in the United States of America. Effective date.