H 4322 General Bill, By F. Smith and McMahand
 A BILL TO AMEND CHAPTER 35, TITLE 11, CODE OF LAWS OF SOUTH CAROLINA, RELATING
 TO THE SOUTH CAROLINA CONSOLIDATED PROCUREMENT CODE, BY ADDING ARTICLE 22 SO
 AS TO ENACT PROVISIONS REQUIRING THAT AT LEAST TEN PERCENT OF ALL STATE
 CONTRACTS, INCLUDING ANY SUBCONTRACTOR WORK, MUST BE AWARDED TO ECONOMICALLY
 DISADVANTAGED PERSONS; AND TO REPEAL ARTICLE 21 OF CHAPTER 35, TITLE 11,
 RELATING TO THE CONSOLIDATED PROCUREMENT CODE AND ASSISTANCE TO "MINORITY
 BUSINESSES".

   06/05/97  House  Introduced and read first time HJ-132
   06/05/97  House  Referred to Committee on Ways and Means HJ-132

TO AMEND CHAPTER 35, TITLE 11, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA CONSOLIDATED PROCUREMENT CODE, BY ADDING ARTICLE 22 SO AS TO ENACT PROVISIONS REQUIRING THAT AT LEAST TEN PERCENT OF ALL STATE CONTRACTS, INCLUDING ANY SUBCONTRACTOR WORK, MUST BE AWARDED TO ECONOMICALLY DISADVANTAGED PERSONS; AND TO REPEAL ARTICLE 21 OF CHAPTER 35, TITLE 11, RELATING TO THE CONSOLIDATED PROCUREMENT CODE AND ASSISTANCE TO "MINORITY BUSINESSES".

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Chapter 35, Title 11 of the 1976 Code is amended by adding:

"Article 22

Section 11-35-5310. As used in this article, 'economically disadvantaged persons' means those individuals whose ability to compete in the free enterprise system has historically been impaired due to diminished capital and credit opportunities on account of race, gender, or ethnic background as compared to others in the same business area who are not so disadvantaged.

Section 11-35-5320. (A) The chief procurement officers shall provide appropriate staffs to assist economically disadvantaged persons with the procurement procedures developed pursuant to this code.

(B) The chief procurement officers in cooperation with other appropriate private and state agencies shall issue supplementary instructions designed to assist these persons with the state procurement procedures.

(C) Chief procurement officers shall maintain special source lists of such persons and their business firms detailing the products and services which they provide. These lists shall be made available to agency purchasing personnel.

(D) The chief procurement officers shall include and identify these persons and their businesses on the state's bidders' list.

(E) The chief procurement officers shall work with other appropriate state offices and groups in conducting seminars to assist economically disadvantaged persons in learning how to do business with the State.

Section 11-35-5330. At least ten percent of all state contracts, including any subcontractor work, must be awarded to economically disadvantaged persons.

Section 11-35-5340. (A) The chief procurement officers may make special provisions for progress payments, and letters of credit, as deemed reasonable to assist economically disadvantaged persons to carry out the terms of a state contract, or any subcontract under a state contract, pursuant to regulations which must be promulgated by the Budget and Control Board.

(B) When an economically disadvantaged person certified by the Department of Revenue receives a contract, or a subcontract, with the State, the appropriate chief procurement officer shall furnish a letter, upon request, stating the dollar value and duration of, and other information about the contract or subcontract, which may be used by that person in negotiating lines of credit with lending institutions.

Section 11-35-5350. Each governmental body shall report to the Division of Operations of the Budget and Control Board annually, no later than August fifteenth, in a format prescribed by the division, the total dollar volume of business that was contracted either directly or through subcontractors with economically disadvantaged persons during the previous fiscal year. These records shall be maintained to evaluate whether the governmental body has complied with the provisions and requirements of this article."

SECTION 2. Article 21 of Chapter 35, Title 11 of the 1976 Code is repealed.

SECTION 3. This act takes effect upon approval by the Governor.