PRINTER'S NO. 694
No. 634 Session of 1987
INTRODUCED BY GODSHALL, LLOYD, KUKOVICH, OLASZ, WOGAN, MRKONIC,
D. W. SNYDER, YANDRISEVITS, NOYE, BATTISTO, FOX, DISTLER,
CARLSON, PRESSMANN, TRELLO, HERSHEY, VROON, WOZNIAK,
COLAFELLA, BALDWIN, HECKLER, LANGTRY AND PHILLIPS, MARCH 9,
1987
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MARCH 9, 1987
AN ACT
1 Amending the act of May 27, 1953 (P.L.244, No.34), entitled "An
2 act relating to and regulating the contracts of incorporated
3 towns and providing penalties," restricting certain persons
4 from bidding on contracts.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 2 of the act of May 27, 1953 (P.L.244,
8 No.34), entitled "An act relating to and regulating the
9 contracts of incorporated towns and providing penalties," is
10 amended by adding subsections to read:
11 Section 2. Regulation of Contracts.--* * *
12 (f) No person or entity which, as a contractor or
13 subcontractor, supplied goods or services to a government or
14 government instrumentality and who has been convicted of, or has
15 pleaded guilty or nolo contendere to, a Federal or State crime
16 involving fraud upon a government or a government
17 instrumentality for acts or omissions arising out of the
1 supplying of goods or services, and no entity in which that
2 person or entity has a substantial interest, may bid on a
3 contract for a period of three years after such conviction or
4 plea. For purposes of this subsection, the following words and
5 phrases shall have the following meanings:
6 (1) "Crime" means any criminal act committed after the
7 effective date of this amendatory act for which the maximum
8 possible penalty exceeds a fine of three hundred dollars ($300)
9 or exceeds imprisonment for ninety days.
10 (2) "Entity" means any association, corporation, limited
11 partnership, partnership, or other business or nonprofit
12 organization.
13 (3) "Fraud" includes, but is not limited to:
14 (i) A misrepresentation of a material fact that is not made
15 honestly and in good faith.
16 (ii) A promise, representation or prediction as to the
17 future that is not made honestly and in good faith.
18 (iii) An intentional failure to disclose a material fact.
19 (iv) A fictitious or pretended purchase or sale of a
20 security.
21 (v) The gaining, through the sale of a security, of an
22 underwriting or promotion fee or profit or a selling or managing
23 fee or profit that is so gross or exorbitant as to be
24 unconscionable. This subclause includes a scheme, device or
25 artifice to obtain such a profit, fee or commission.
26 (vi) A scheme, device or artifice to defraud a prospective
27 or actual customer, client or subscriber of securities, money or
28 property.
29 (4) "State" means the District of Columbia and any
30 possession, state, territory or trusteeship of the United
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1 States.
2 (5) "Substantial interest" means serving as a director,
3 limited partner, officer, partner or proprietor, or owning more
4 than ten per centum of the number of shares of voting stock or
5 more than twenty per centum of the total number of shares of
6 stock.
7 (g) In the case of a bid involving the collection,
8 transportation, treatment, storage or disposal of solid waste or
9 hazardous waste under the act of July 7, 1980 (P.L.380, No.97),
10 known as the "Solid Waste Management Act," the following shall
11 apply:
12 (1) A bid may be rejected by the council if one of the
13 following applies:
14 (i) The council have reason to believe that the bidder's
15 responsibility, character and general fitness for business do
16 not command the confidence of the public and may not be
17 conducive to the honest and efficient conduct of business in the
18 best interest of the public.
19 (ii) The bidder's prior performance record in the
20 collection, transportation, treatment, storage or disposal of
21 solid waste exhibited insufficient reliability, expertise or
22 competency to warrant the belief that the bidder would be likely
23 to exhibit sufficient reliability, expertise or competence with
24 respect to the contract being bid.
25 (2) The council may require the following information to be
26 submitted with the bid:
27 (i) If the bidder has an equity interest in a company which
28 collects, transports, treats, stores or disposes of solid waste
29 or hazardous waste, the name and address of that company.
30 (ii) A description of the bidder's experience and
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1 credentials in collection, transportation, treatment, storage or
2 disposal of solid waste or hazardous waste. This includes past
3 or present licenses.
4 (iii) If the bidder is an entity, the names of the officers
5 and directors or partners.
6 (iv) A list and explanation of Federal, State and local
7 notices of violation, prosecutions, administrative orders and
8 license revocations, for the ten years immediately preceding the
9 bid submission, if the action is pending or has resulted in a
10 finding or a settlement of a violation of law by the bidder or
11 its employes, and, in the case of an entity, by an officer or
12 director or a partner, relating to the collection,
13 transportation, treatment, storage or disposal of solid waste or
14 hazardous waste.
15 (v) A list and explanation of judgments of civil liability
16 and convictions against the bidder or its employes and, in the
17 case of an entity, against an officer or director or a partner.
18 (vi) A list of agencies outside of this Commonwealth which
19 had regulatory authority over the bidder in connection with the
20 collection, transportation, treatment, storage or disposal of
21 solid waste or hazardous waste.
22 (vii) Other information that the council deems relevant to
23 the competency, reliability or good character of the bidder.
24 (h) The town may require the following information to be
25 submitted with the bid: a sworn statement by the bidder and, if
26 the affiant is an entity, by every person or entity having a
27 substantial interest therein, listing all Federal and state
28 convictions of, and pleas of guilty or nolo contendere to, any
29 crime within three years prior to the date of the statement,
30 said statement to be dated no more than one week prior to the
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1 date set for the opening of bids.
2 Section 2. This act shall take effect in 60 days.
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