Contractual Terms

Contractual Terms. (A) The terms of any performance contract or shared savings contract for efficiency services and equipment entered into under this section shall not exceed 20 years. (B) All contracts must contain the following annual allocation dependency clause: The continuation of this contract is contingent upon the appropriation of funds to fulfill the requirement of the contract by the Legislature or other budgeting authority. If the Legislature or other budgeting authority fails to appropriate sufficient monies to provide for the continuation of the contract, the contract shall terminate on the last day of the fiscal year for which appropriations were made. The termination shall be without penalty or expense to the entity of any kind whatsoever, except as to the portions of payments for which funds were appropriated. (C) All contracts must contain a provision for termination of the contract for cause. (D) All contracts must contain a provision for termination for convenience by the entity.