THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SOLOBAY, BELFANTI, BRENNAN, COHEN, DALEY, EVERETT, GIBBONS, GOODMAN, KOTIK, KULA, MARSHALL, MUSTIO, M. O'BRIEN, O'NEILL, PAYNE, PYLE, READSHAW, ROAE, ROCK, MILNE AND MAHONEY, APRIL 21, 2009

REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 21, 2009  

AN ACT

Amending Title 62 (Procurement) of the Pennsylvania Consolidated

Statutes, further providing for reciprocal limitations.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 107 of Title 62 of the Pennsylvania

Consolidated Statutes is amended to read:

§ 107.  Reciprocal limitations.

(a)  Short title of section.--This section shall be known and

may be cited as the [Reciprocal Limitations] Pennsylvania First

Act.

(b)  Legislative findings.--It is hereby determined by the

General Assembly [to reaffirm the legislative findings contained

in the act of November 28, 1986 (P.L.1465, No.146), known as the

Reciprocal Limitations Act, and codified in this section] that:

(1)  The award of contracts to the lowest responsible

bidder generally provides for the most economical procurement

of supplies and construction.

(2)  In some cases, award to the lowest responsible

bidder may not be the most economical and practicable when

the best interests of the Commonwealth are concerned.

(3)  Some states apply a preference favoring in-state

supplies or bidders or they apply a prohibition against the

use of out-of-state supplies or bidders.

(4)  The application of this preference or prohibition by

other states diminishes or eliminates opportunities for

bidders and manufacturers who reside in this Commonwealth to

obtain construction contracts from or to sell supplies to

states that have this preference, thereby resulting in the

loss of business for resident bidders and manufacturers.

Therefore, in order to offset or counteract the

discriminatory practices of other states, [discourage other

states from applying a preference and ultimately to] aid

employment, help business and industry located in this

Commonwealth, attract new business and industry to this

Commonwealth and provide additional tax revenue both from

those receiving contracts and those employed by contractors,

the General Assembly hereby declares that it is the policy of

this Commonwealth to [respond in like manner against those

states that apply preferences or prohibitions by giving a

similar offsetting] give preference to residents in this

Commonwealth and bidders offering supplies manufactured in

this Commonwealth and [by prohibiting] prohibit the purchase

or use of certain supplies, in accordance with the provisions

of this section.

(c)  Preference for supplies.--In all procurements of

supplies exceeding the amount established by the department for

small procurements under section 514 (relating to small

procurements), all Commonwealth agencies shall give preference

to those bidders or offerors offering supplies produced,

manufactured, mined, grown or performed in this Commonwealth [as

against those bidders or offerors offering supplies produced,

manufactured, mined, grown or performed in any state that gives

or requires a preference to supplies produced, manufactured,

mined, grown or performed in that state. The amount of the

preference shall be equal to the amount of the preference

applied by the other state for that particular supply].

(d)  Preference for resident bidders or offerors.--When a

contract for construction or supplies exceeding the amount

established by the department for small procurements under

section 514 is to be awarded, a resident bidder or offeror shall

be granted a preference as against a nonresident bidder or

offeror [from any state that gives or requires a preference to

bidders or offerors from that state. The amount of the

preference shall be equal to the amount of the preference

applied by the state of the nonresident bidder or offeror].

(e)  Prohibition.--For all contracts for construction or

supplies exceeding the amount established by the department for

small procurements under section 514, no Commonwealth agency

shall specify for, use or procure any supplies which are

produced, manufactured, mined, grown or performed in any state

that prohibits the specification for, use or procurement of

these supplies in or on its public buildings or other works when

these supplies are not produced, manufactured, mined, grown or

performed in that state.

(f)  Listing discriminating states.--The department shall

prepare a list of the states which apply a [preference favoring

in-state supplies or bidders or offerors or a] prohibition

against the use of out-of-state supplies or bidders or offerors

and shall publish the list in the Pennsylvania Bulletin. When a

state applies a new preference or prohibition, the department

shall publish that information in the Pennsylvania Bulletin as

an addition to the original list.

(g)  Inclusion in invitation for bids or request for

proposals.--[In all invitations for bids and requests for

proposals for the procurement of supplies exceeding the amount

established by the department for small procurements under

section 514, all Commonwealth agencies shall include a list of

all the states that have been found by the department to have

applied a preference favoring in-state supplies, bidders or

offerors and the amount of the preference.] All invitations for

bids, requests for proposals and notices issued for the purpose

of securing bids or proposals for contracts for construction or

supplies exceeding the amount established by the department for

small procurements under section 514 shall include a list of all

states that have been found by the department to have applied a

preference for in-state bidders or offerors and the amount of

the preference. All invitations for bids, requests for proposals

and notices issued for the purpose of securing bids or proposals

for contracts for construction or supplies exceeding the amount

established by the purchasing agency for small procurements

under section 514 shall also include a list of all states that

apply a prohibition against certain supplies and shall inform

potential bidders or offerors that they are prohibited from

using supplies from those states. If a bid or proposal discloses

that the bidder or offeror is offering supplies from a state

which prohibits the use of out-of-state supplies, the bid or

proposal shall be rejected.

(h)  Federal funds.--The provisions of this section shall not

be applicable when the application of this section may

jeopardize the receipt of Federal funds.

(i)  Waiver.--The provisions of this section may be waived

when the head of the purchasing agency determines in writing

that it is in the best interests of the Commonwealth.

(j)  Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection:

"Resident bidder or offeror."  A person, partnership,

corporation or other business entity authorized to transact

business in this Commonwealth and having a bona fide

establishment for transacting business in this Commonwealth at

which it was transacting business on the date when bids or

proposals for the public contract were first solicited.

Section 2.  This act shall take effect in 60 days.