PRINTER'S NO. 1041
No. 910 Session of 1985
INTRODUCED BY BOWSER, MERRY, DISTLER, MACKOWSKI, GODSHALL,
COLAFELLA, TRELLO, BARLEY, NOYE, TELEK AND RICHARDSON,
APRIL 16, 1985
REFERRED TO COMMITTEE ON BUSINESS AND COMMERCE, APRIL 16, 1985
AN ACT
1 Amending the act of August 23, 1967 (P.L.251, No.102), entitled,
2 as amended, "An act providing for the incorporation as public
3 instrumentalities of the Commonwealth and as bodies corporate
4 and politic of industrial and commercial development
5 authorities for municipalities, counties and townships;
6 prescribing the rights, powers and duties of such authorities
7 hereafter incorporated; authorizing such authorities to
8 acquire, by gift or purchase, to construct, improve and
9 maintain industrial, specialized, or commercial development
10 projects including projects for the elimination or prevention
11 of blight and the control of air and water pollution, and to
12 borrow money and issue bonds therefor; providing for the
13 payment of such bonds and giving security therefor, and
14 prescribing the rights of the holders of such bonds;
15 authorizing the lease or sale of industrial, specialized, or
16 commercial development projects to industrial, specialized,
17 or commercial enterprises; authorizing any county,
18 municipality or township to transfer or convey to such
19 authorities, any facilities or property available for
20 industrial, specialized, or commercial development projects;
21 exempting the property and securities of such authorities
22 from taxation; authorizing such authorities to enter into
23 contracts with and to accept grants from the Federal
24 Government or any agency thereof; and providing for approval
25 by the Secretary of Commerce of the proceedings relating to
26 industrial, specialized, or commercial development projects
27 of such authorities," further providing for the removal of
28 authority board members and for competitive bids on certain
29 contracts.
30 The General Assembly of the Commonwealth of Pennsylvania
31 hereby enacts as follows:
1 Section 1. Section 9(a) and (b) of the act of August 23,
2 1967 (P.L.251, No.102), known as the Industrial and Commercial
3 Development Authority Law, are amended to read:
4 Section 9. Governing Body.--(a) The powers of each
5 authority shall be exercised by a board composed as follows: the
6 board shall consist of such number of members not less than five
7 as shall be set forth in the articles of incorporation or
8 amendment thereto. Except in cities operating under a duly
9 adopted charter, the governmental body of such municipality
10 shall appoint the members of the board, whose terms of office
11 shall commence on the date of appointment. One member shall
12 serve for one year, one for two years, one for three years, one
13 for four years and one for five years from the January first
14 next succeeding the date of incorporation or amendment, and if
15 there are more than five members of the board, their terms shall
16 be staggered in a similar manner for terms of from one to five
17 years from the January first next succeeding. Thereafter,
18 whenever a vacancy has occurred or is about to occur by reason
19 of the expiration of the term of any member, the said
20 governmental body shall appoint a member of the board[, except
21 in cities operating under a duly adopted charter,] for a term of
22 five years from the date of expiration of the prior term to
23 succeed the member whose term has expired or is about to expire.
24 [In cities operating under a duly adopted charter the members of
25 the board shall be appointed and the members shall hold office
26 in accordance with the provisions of said charter.]
27 (b) Members shall hold office until their successors have
28 been appointed, and may succeed themselves. Members of the board
29 of any authority organized or created pursuant to this act shall
30 receive no compensation for their services, but shall be
19850H0910B1041 - 2 -
1 reimbursed for necessary traveling and other expenses incurred
2 in the performance of their duties. [Except in cities operating
3 under a duly adopted charter where removal shall be in
4 accordance with the said charter, a] A member may be removed
5 [with or without] for reasonable cause by the governmental body
6 [or by the appointing authority]. If a vacancy shall occur by
7 reason of the death, disqualification, resignation or removal of
8 a member, a successor shall be appointed to fill his unexpired
9 term in the manner provided in section 9 (a).
10 * * *
11 Section 2. Section 12(a) and (b) of the act, amended
12 December 19, 1975 (P.L.576, No.165), are amended to read:
13 Section 12. Competition in Award of Contracts.--(a) All
14 construction, reconstruction, repairs or work of any nature made
15 directly by any authority where the entire cost, value or amount
16 of such construction, reconstruction, repairs or work, including
17 labor and materials, shall exceed [five thousand dollars
18 ($5,000)] ten thousand dollars ($10,000), except construction,
19 reconstruction, repairs or work done by employes of said
20 authority, or by labor supplied under agreement with any Federal
21 or State agency, with supplies and materials purchased as
22 hereinafter provided, shall be done only under contract or
23 contracts to be entered into by the authority with the lowest
24 responsible bidder upon proper terms, after due public notice
25 has been given asking for competitive bids as hereinafter
26 provided: Provided, however, That where the authority is the
27 legal title holder to the industrial, specialized, or commercial
28 development project, and there exists an agreement whereby an
29 occupant or an investor-developer will or can acquire legal
30 title to the said project under the then certain terms and
19850H0910B1041 - 3 -
1 conditions, contracts for construction, reconstruction, repair,
2 or work of any nature, or purchase of machinery and equipment,
3 may be awarded by the occupant or the investor-developer without
4 regard to the limitations of this section 12: And provided
5 further, however, That for the purposes of this section 12,
6 "construction" or "acquisition" shall not include acquisition of
7 property for industrial, specialized, or commercial development
8 purposes. No contract shall be entered into between an authority
9 and a contractor for construction or improvement or repair of
10 any project or portion thereof, unless the contractor shall give
11 an undertaking with a sufficient surety or sureties approved by
12 the authority, and in an amount fixed by the authority, for the
13 faithful performance of the contract. All contracts of surety
14 shall provide among other things that the contractor entering
15 into a contract with the authority will pay for all materials
16 furnished and services rendered for the performance of the
17 contract, and that any person or corporation furnishing such
18 materials or rendering such services may maintain an action to
19 recover for the same against the obligor in the undertaking, as
20 though such person or corporation was named therein, provided
21 the action is brought within one year after the time the cause
22 of action accrued.
23 (b) All supplies and materials costing [two thousand five
24 hundred dollars ($2500)] five thousand dollars ($5,000) or more
25 to be purchased directly by an authority shall be purchased only
26 after due advertisement as hereinafter provided. The authority
27 shall accept the lowest bid or bids, kind, quality and material
28 being equal, but the authority shall have the right to reject
29 any or all bids or select a single item from any bid. The
30 provisions as to bidding shall not apply to the purchase of
19850H0910B1041 - 4 -
1 patented and manufactured products offered for sale in a
2 noncompetitive market or solely by a manufacturer's authorized
3 dealer.
4 * * *
5 Section 3. This act shall take effect in 60 days.
B8L64WMB/19850H0910B1041 - 5 -