SOUTH CAROLINA REVENUE AND FISCAL AFFAIRS OFFICE
S
TATEMENT OF ESTIMATED FISCAL IMPACT
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This fiscal impact statement is produced in compliance with the South Carolina Code of Laws and House and Senate rules. The focus of
the analysis is on governmental expenditure and revenue impacts and may not provide a comprehensive summary of the legislation.
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H. 3801
Fiscal Impact Summary
This bill amends §11-35-710, relating to exemptions from the state procurement code, so as to
add transportation planning, operation of bridges, highways, and roads, and other improvements
on the state’s rights of way to the list of exemptions. This exemption does not apply to welcome
centers operated or staffed by the Department of Parks, Recreation and Tourism (PRT).
This bill will have no expenditure impact on the Department of Transportation (DOT). DOT
indicates that the bill clarifies the agency’s ability to work on other improvements on the state’s
right of way and their authority to do procurement on those projects but does not create any
additional costs for the agency.
PRT indicates that this bill will have no expenditure impact because it does not materially or
fiscally impact the agency.
DOT indicates that by including transportation planning in the list of exemptions, the department
will be able to utilize all of its available Federal Funds. DOT reports that the Federal Highway
Administration (FHWA) distributes $4,400,000 of federal funding to South Carolina for
transportation planning. Pursuant to the state procurement procedures in §11-35-3310, indefinite
quantity contracts for engineering firms are limited to $300,000 for a two-year period with
individual project expenditures not to exceed $100,000. This threshold is currently preventing
DOT from utilizing all of the available $4,400,000 and from meeting some required planning
activities pursuant to 23 C.F.R. Parts 420 and 450.
Explanation of Fiscal Impact
Introduced on January 28, 2025
State Expenditure
This bill amends §11-35-710, relating to exemptions from the state procurement code, so as to
add transportation planning, operation of bridges, highways, and roads, and other improvements
on the state’s rights of way to the list of exemptions. The bill specifies that this exemption does
not apply to welcome centers operated or staffed by PRT.
Bill Number: H. 3801 Introduced on Januar
y 28, 2025
Subject: Procurement
Requestor: House Education and Public Works
RFA Anal
yst(s): Daigle
Impact Date: February 6, 2025
__________________________________
Frank A. Rainwater, Executive Director
DISCLAIMER: THIS FISCAL IMPACT STATEMENT REPRESENTS THE OPINION AND INTERPRETATION OF THE
AGENCY OFFICIAL WHO APPROVED AND SIGNED THIS DOCUMENT. IT IS PROVIDED AS INFORMATION TO
THE GENERAL ASSEMBLY AND IS NOT TO BE CONSIDERED AS AN EXPRESSION OF LEGISLATIVE INTENT.
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H. 3801
Exemptions from the state procurement code currently include construction, maintenance, and
repair of bridges, highways and roads; vehicle and road equipment maintenance and repair; and
other emergency-type parts or equipment utilized by DOT or the Department of Public Safety.
Department of Transportation. DOT indicates that this bill clarifies the agency’s ability to
work on other improvements on the state’s right of way and their authority to do procurement on
those projects but does not create any additional costs for the agency. Therefore, this bill will
have no expenditure impact on the department.
Department of Parks, Recreation, and Tourism. This bill specifies that the exemption does
not apply to welcome centers operated or staffed by PRT. Therefore, the department indicates
that the bill will have no expenditure impact because it does not materially or fiscally impact the
agency.
State Revenue
This bill adds transportation planning, operation of bridges, highways, and roads, and other
improvements on the state’s rights of way to the list of exemptions from the purchasing
procedures in Chapter 35 of Title 11, South Carolina’s Consolidated Procurement Code.
DOT indicates that by including transportation planning in the list of exemptions, the department
will be able to utilize all of its available federal funding. DOT reports that FHWA distributes
$4,400,000 of federal funding to South Carolina for transportation planning. DOT currently
solicits for these services under the state procurement request for proposals process. Pursuant to
the state procurement procedures in §11-35-3310, indefinite quantity contracts for engineering
firms are limited to $300,000 for a two-year period with individual project expenditures not to
exceed $100,000. This threshold is preventing DOT from utilizing all of the available $4,400,000
and from meeting some required planning activities pursuant to 23 C.F.R. Parts 420 and 450.
Therefore, this bill will enable the department to utilize all of its available Federal Funds.
Local Expenditure
N/A
Local Revenue
N/A