Indicates Matter Stricken

Indicates New Matter

Committee Report

March 1, 2023

S. 361

Introduced by Senators Grooms and Scott

S. Printed 03/01/23--H.

Read the first time February 16, 2023

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THE COMMITTEE ON HOUSE EDUCATION AND PUBLIC WORKS

To who was referred a Bill (S. 361) to amend the South Carolina Code of Laws by amending Section 57-5-1630, relating to the extension of construction contracts, so as to provide that the Department, etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass:

SHANNON ERICKSON for Committee.

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill amends §57-5-1630, relating to the extension of construction contracts awarded by DOT. Currently, construction contracts may not be extended to include work not contemplated in the original reward unless approved in advance by the commission, except under special circumstances. This bill provides that the commission is not required to provide preapproval of construction contract extensions. However, the commission must ratify any contract extensions at the next commission meeting. The bill also deletes the requirement that the extension of a contract to include additional work in advance of the approval of the commission may not exceed fifty percent of the total amount of the original contract being so extended or the sum of $150,000, whichever amount is less. 

Department of Transportation. The overall fiscal impact of this bill on DOT is undetermined. While the bill will have no expenditure impact, DOT indicates that the proposed changes in the contract extension process could save time on projects by allowing the agency to respond more quickly and efficiently. However, any cost savings will be dependent upon the size, scope, and length of time saved over the life of the project. Therefore, any potential cost savings associated with this bill are undetermined.

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

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A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 57-5-1630, RELATING TO THe EXTENSION OF CONSTRUCTION CONTRACTS, SO AS TO PROVIDE THAT THE department of transportation COMMISSION IS NOT REQUIRED TO PROVIDE PREAPPROVAL OF CONSTRUCTION CONTRACT EXTENSIONS AND TO PROVIDE THAT THE COMMISSION MUST RATIFY EXTENSIONS AT THE NEXT COMMISSION MEETING.

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

SECTION 1.  Section 57-5-1630 of the S.C. Code is amended to read:

    Section 57-5-1630. Unless approved in advance by the commission, noNo construction contract may be extended to include work not contemplated in the original award, except within the limitations imposed by the contract.  Where in the judgment of the Secretary of the Department of Transportation it is in the public's interest and prices advantageous to the department are obtained, the department may extend contracts to include additional work. in advance of the approval of the commission, if on the other hand to delay an extension until the next commission meeting an advantage to the department would be lost, but in In every case, the commission must ratify theevery contract extension must be subject to approval by the commission at the next succeeding commission meeting.  The extension of a contract to include additional work in advance of the approval of the commission may not exceed fifty percent of the total amount of the original contract being so extended or the sum of one hundred fifty thousand dollars, whichever amount is less.  Advertisement in the case of extensions of contracts under this section shall consist of detailed reports of the transactions made public at open meetings of the commission.

SECTION 2.  This act takes effect upon approval by the Governor.

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