PRINTER'S NO. 700
No. 640 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 June 24, 1931 (P.L.1206, No.331), entitled
2 "An act concerning townships of the first class; amending,
3 revising, consolidating, and changing the law relating
4 thereto," restricting certain persons from bidding on
5 contracts.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Section 1802 of the act of June 24, 1931
9 (P.L.1206, No.331), known as The First Class Township Code,
10 reenacted and amended May 27, 1949 (P.L.1955, No.569), is
11 amended by adding subsections to read:
12 Section 1802. General Regulations Concerning Contracts.--* *
13 *
14 (g) No person who or entity which, as a contractor or
15 subcontractor, supplied goods or services to a government or
16 government instrumentality and has been convicted of, or has
17 pleaded guilty or nolo contendere to, a Federal or State crime
18 involving fraud upon a government or a government
1 instrumentality for acts or omissions arising out of the
2 supplying of goods or services, and no entity in which that
3 person or entity has a substantial interest, may bid on a
4 contract for a period of three years after such conviction or
5 plea. For purposes of this subsection, the following words and
6 phrases shall have the following meanings:
7 (1) "Crime" means any criminal act committed after the
8 effective date of this amendatory act for which the maximum
9 possible penalty exceeds a fine of three hundred dollars ($300)
10 or exceeds imprisonment for ninety days.
11 (2) "Entity" means any association, corporation, limited
12 partnership, partnership, or other business or nonprofit
13 organization.
14 (3) "Fraud" includes, but is not limited to:
15 (i) A misrepresentation of a material fact that is not made
16 honestly and in good faith.
17 (ii) A promise, representation or prediction as to the
18 future that is not made honestly and in good faith.
19 (iii) An intentional failure to disclose a material fact.
20 (iv) A fictitious or pretended purchase or sale of a
21 security.
22 (v) The gaining, through the sale of a security, of an
23 underwriting or promotion fee or profit or a selling or managing
24 fee or profit that is so gross or exorbitant as to be
25 unconscionable. This includes a scheme, device or artifice to
26 obtain such a profit, fee or commission.
27 (vi) A scheme, device or artifice to defraud a prospective
28 or actual customer, client or subscriber of securities, money or
29 property.
30 (4) "State" means the District of Columbia and any
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1 possession, state, territory or trusteeship of the United
2 States.
3 (5) "Substantial interest" means serving as a director,
4 limited partner, officer, partner or proprietor, or owning more
5 than ten per centum of the number of shares of voting stock or
6 more than twenty per centum of the total number of shares of
7 stock.
8 (h) In the case of a bid involving the collection,
9 transportation, treatment, storage or disposal of solid waste or
10 hazardous waste under the act of July 7, 1980 (P.L.380, No.97),
11 known as the "Solid Waste Management Act," the following shall
12 apply:
13 (1) A bid may be rejected by the authorizing authorities if
14 one of the following applies:
15 (i) The authorizing authorities have reason to believe that
16 the bidder's responsibility, character and general fitness for
17 business do not command the confidence of the public and may not
18 be conducive to the honest and efficient conduct of business in
19 the best interest of the public.
20 (ii) The bidder's prior performance record in the
21 collection, transportation, treatment, storage or disposal of
22 solid waste exhibited insufficient reliability, expertise or
23 competency to warrant the belief that the bidder would be likely
24 to exhibit sufficient reliability, expertise or competence with
25 respect to the contract being bid.
26 (2) The township may require the following information to be
27 submitted with the bid:
28 (i) If the bidder has an equity interest in a company which
29 collects, transports, treats, stores or disposes of solid waste
30 or hazardous waste, the name and address of that company.
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1 (ii) A description of the bidder's experience and
2 credentials in collection, transportation, treatment, storage or
3 disposal of solid waste or hazardous waste. This includes past
4 or present licenses.
5 (iii) If the bidder is an entity, the names of the officers
6 and directors or partners.
7 (iv) A list and explanation of Federal, State and local
8 notices of violation, prosecutions, administrative orders and
9 license revocations for the ten years immediately preceding the
10 bid submission, if the action is pending or has resulted in a
11 finding or a settlement of a violation of law by the bidder or
12 its employes, and, in the case of an entity, by an officer or
13 director or a partner, relating to the collection,
14 transportation, treatment, storage or disposal of solid waste or
15 hazardous waste.
16 (v) A list and explanation of judgments of civil liability
17 and convictions against the bidder or its employes and, in the
18 case of an entity, against an officer or director or a partner.
19 (vi) A list of agencies outside of this Commonwealth which
20 had regulatory authority over the bidder in connection with the
21 collection, transportation, treatment, storage or disposal of
22 solid waste or hazardous waste.
23 (vii) Other information that the authorizing authorities
24 deem relevant to the competency, reliability or good character
25 of the bidder.
26 (i) The township may require the following information to be
27 submitted with the bid: a sworn statement by the bidder and, if
28 the affiant is an entity, by every person or entity having a
29 substantial interest therein, listing all Federal and state
30 convictions of, and pleas of guilty or nolo contendere to, any
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1 crime within three years prior to the date of the statement,
2 said statement to be dated no more than one week prior to the
3 date set for the opening of bids.
4 Section 2. This act shall take effect in 60 days.
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