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TO AMEND SECTION 11-35-2030, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MULTI-TERM CONTRACTS IN CONNECTION WITH THE SOUTH CAROLINA CONSOLIDATED PROCUREMENT CODE, SO AS TO LIMIT A MULTI-TERM CONTRACT TO A MAXIMUM OF FIVE YEARS, WITH CERTAIN EXCEPTIONS INCLUDING THE REQUIREMENT OF UNANIMOUS WRITTEN CONSENT OF THE STATE BUDGET AND CONTROL BOARD TO EXTEND A ONE MILLION-DOLLAR OR LESS CONTRACT FOR ONLY ONE FIVE-YEAR TERM.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 11-35-2030 of the 1976 Code, as last amended by Act 376 of 2006, is further amended to read:
"Section 11-35-2030. (1) Specified Period. Unless otherwise provided by law, a contract for supplies, services, or information technology must not be entered into for any a period of more than one year unless approved in a manner prescribed by regulation of the board and subject to (4) below. The term of the contract and conditions of renewal or extension must be included in the solicitation and funds must be available for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal periods must be subject to the availability and appropriation of funds for them.
(2) Determination Prior to Use. Before the utilization of a multi-term contract, it must be determined in writing by the appropriate governmental body that:
(a) estimated requirements cover the period of the contract and are reasonably firm and continuing; and
(b) such a contract serves the best interests of the State by encouraging effective competition or otherwise promoting economies in state procurement.
(3) Cancellation Due to Unavailability of Funds in Succeeding Fiscal Periods. When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract must be canceled.
(4) The Except as otherwise provided in connection with the South Carolina Lottery Commission, the maximum time for a multi-term contract is five years. Contract terms of up to seven years may be approved by the designated board officer. Contracts exceeding seven years must be approved by the board. A contract of one million dollars or less may be extended for only one five-year term for just cause by unanimous written consent of the board."
SECTION 2. This act takes effect upon approval by the Governor and applies to contracts entered into after that date.
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