1Amending the act of August 23, 1967 (P.L.251, No.102), entitled,
2as amended, "An act providing for the incorporation as public
3instrumentalities of the Commonwealth and as bodies corporate
4and politic of industrial and commercial development
5authorities for municipalities, counties and townships;
6prescribing the rights, powers and duties of such authorities
7hereafter incorporated; authorizing such authorities to
8acquire, by gift or purchase, to construct, improve and
9maintain industrial, specialized, or commercial development
10projects including projects for the elimination or prevention
11of blight and the control of air and water pollution, and to
12borrow money and issue bonds therefor; providing for the
13payment of such bonds and giving security therefor, and
14prescribing the rights of the holders of such bonds;
15authorizing the lease or sale of industrial, specialized, or
16commercial development projects to industrial, specialized,
17or commercial enterprises; authorizing any county,
18municipality or township to transfer or convey to such
19authorities, any facilities or property available for
20industrial, specialized, or commercial development projects;
21exempting the property and securities of such authorities
22from taxation; authorizing such authorities to enter into
23contracts with and to accept grants from the Federal
24Government or any agency thereof; and providing for approval
25by the Secretary of Commerce of the proceedings relating to
26industrial, specialized, or commercial development projects
27of such authorities," further providing for competition in
28award of contracts.

29The General Assembly of the Commonwealth of Pennsylvania
30hereby enacts as follows:

1Section 1. Section 12 of the act of August 23, 1967
2(P.L.251, No.102), known as the Economic Development Financing
3Law, amended December 17, 1993 (P.L.490, No.74), is amended to
4read:

5Section 12. Competition in Award of Contracts.--(a) All
6construction, reconstruction, repairs or work of any nature made
7directly by any authority where the entire cost, value or amount
8of such construction, reconstruction, repairs or work, including
9labor and materials, shall exceed [ten thousand dollars
10($10,000)] the base amount established pursuant to 53 Pa.C.S. § 
115614 (relating to competition in award of contracts), except
12construction, reconstruction, repairs or work done by employes
13of said authority, or by labor supplied under agreement with any
14Federal or State agency, with supplies and materials purchased
15as hereinafter provided, shall be done only under contract or
16contracts to be entered into by the authority with the lowest
17responsible bidder upon proper terms, after due public notice
18has been given asking for competitive bids as hereinafter
19provided: Provided, however, That where the authority is the
20legal title holder to the project, and there exists an agreement
21whereby a project user or project applicant will or can acquire
22legal title to the said project under the then certain terms and
23conditions, contracts for construction, reconstruction, repair,
24or work of any nature, or purchase of machinery and equipment,
25may be awarded by the project user or project applicant without
26regard to the limitations of this section 12: And provided
27further, however, That for the purposes of this section 12,
28"construction" or "acquisition" shall not include acquisition of
29property for project purposes. No contract shall be entered into
30between an authority and a contractor for construction of any

1project or portion thereof, unless the contractor shall give an
2undertaking with a sufficient surety or sureties approved by the
3authority, and in an amount fixed by the authority, for the
4faithful performance of the contract. All contracts of surety
5shall provide among other things that the contractor entering
6into a contract with the authority will pay for all materials
7furnished and services rendered for the performance of the
8contract, and that any person or corporation furnishing such
9materials or rendering such services may maintain an action to
10recover for the same against the obligor in the undertaking, as
11though such person or corporation was named therein, provided
12the action is brought within one year after the time the cause
13of action accrued.

14(b) All supplies and materials costing [ten thousand dollars
15($10,000) or more] in excess of the base amount established 
16pursuant to 53 Pa.C.S. § 5614 to be purchased directly by an
17authority shall be purchased only after due advertisement as
18hereinafter provided. The authority shall accept the lowest bid
19or bids, kind, quality and material being equal, but the
20authority shall have the right to reject any or all bids or
21select a single item from any bid. The provisions as to bidding
22shall not apply to the purchase of patented and manufactured
23products offered for sale in a noncompetitive market or solely
24by a manufacturer's authorized dealer.

25(c) The terms "advertisement" or "due public notice"
26wherever used in this section, shall mean a notice published at
27least ten days before the award of any contract, in a newspaper
28of general circulation published in the municipality where the
29authority has its principal office, and if no newspaper is
30published therein then by publication in a newspaper in the

1county where the authority has its principal office: Provided,
2That such notice may be waived where the authority determines an
3emergency exists, and such supplies and materials must be
4immediately purchased by the said authority.

5(d) No member of the authority or officer or employe thereof
6shall, either directly or indirectly, be a party to or be in any
7manner interested in any contract or agreement with the
8authority for any matter, cause or thing whatsoever by reason
9whereof any liability or indebtedness shall in any way be
10created against such authority. If any contract or agreement
11shall be made in violation of the provisions of this section the
12same shall be null and void and no action shall be maintained
13thereon against such authority.

14(e) Subject to the aforesaid, any authority may (but without
15intending by this provision to limit any powers of such
16authority) enter into and carry out such contracts, or establish
17or comply with such rules and regulations concerning labor and
18materials and other related matters in connection with any
19project or portion thereof, as the authority may deem desirable,
20or as may be requested by any Federal agency that may assist in
21the financing of such project or any part thereof.

22(f) The provisions of this section 12 shall not apply in
23respect of the construction of any project or the purchase of
24any equipment, materials or supplies which the authority may
25have had transferred to it upon completion, by purchase or
26otherwise, by a project applicant or project user or any other
27person or corporation.

28(g) Notwithstanding any of the foregoing, all construction,
29reconstruction, repairs or work of any nature with regard to
30publicly owned infrastructure facilities, where the entire cost,

1value or amount of such construction, reconstruction, repairs or
2work, including labor and materials, shall exceed [ten thousand
3dollars ($10,000)] the base amount established pursuant to 53 
4Pa.C.S. § 5614, shall be done only under contract or contracts
5to be entered into by the authority or the owner of the
6infrastructure facility, with the lowest responsible bidder upon
7proper terms, after due public notice has been given asking for
8competitive bids as set forth in this section or other
9applicable law.

10Section 2. This act shall take effect immediately.