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

1hereby enacts as follows:

2Section 1. Section 12 of the act of August 23, 1967
3(P.L.251, No.102), known as the Economic Development Financing
4Law, amended December 17, 1993 (P.L.490, No.74), is amended to
5read:

6Section 12. Competition in Award of Contracts.--(a) All
7construction, reconstruction, repairs or work of any nature made
8directly by any authority where the entire cost, value or amount
9of such construction, reconstruction, repairs or work, including
10labor and materials, shall exceed [ten thousand dollars
11($10,000)] the base amount and subsequent adjustments 
12established pursuant to 53 Pa.C.S. § <-5614 5614(a)(1), (b) and 
13(c.1) (relating to competition in award of contracts), except
14construction, reconstruction, repairs or work done by employes
15of said authority, or by labor supplied under agreement with any
16Federal or State agency, with supplies and materials purchased
17as hereinafter provided, shall be done only under contract or
18contracts to be entered into by the authority with the lowest
19responsible bidder upon proper terms, after due public notice
20has been given asking for competitive bids as hereinafter
21provided: Provided, however, That where the authority is the
22legal title holder to the project, and there exists an agreement
23whereby a project user or project applicant will or can acquire
24legal title to the said project under the then certain terms and
25conditions, contracts for construction, reconstruction, repair,
26or work of any nature, or purchase of machinery and equipment,
27may be awarded by the project user or project applicant without
28regard to the limitations of this section 12: And provided
29further, however, That for the purposes of this section 12,
30"construction" or "acquisition" shall not include acquisition of

1property for project purposes. No contract shall be entered into
2between an authority and a contractor for construction of any
3project or portion thereof, unless the contractor shall give an
4undertaking with a sufficient surety or sureties approved by the
5authority, and in an amount fixed by the authority, for the
6faithful performance of the contract. All contracts of surety
7shall provide among other things that the contractor entering
8into a contract with the authority will pay for all materials
9furnished and services rendered for the performance of the
10contract, and that any person or corporation furnishing such
11materials or rendering such services may maintain an action to
12recover for the same against the obligor in the undertaking, as
13though such person or corporation was named therein, provided
14the action is brought within one year after the time the cause
15of action accrued.

16(b) All supplies and materials costing [ten thousand dollars
17($10,000) or more] in excess of the base amount and subsequent 
18adjustments established pursuant to 53 Pa.C.S. § <-5614 5614(a)
19(1), (b) and (c.1) to be purchased directly by an authority
20shall be purchased only after due advertisement as hereinafter
21provided. The authority shall accept the lowest bid or bids,
22kind, quality and material being equal, but the authority shall
23have the right to reject any or all bids or select a single item
24from any bid. The provisions as to bidding shall not apply to
25the purchase of patented and manufactured products offered for
26sale in a noncompetitive market or solely by a manufacturer's
27authorized dealer.

28(c) The terms "advertisement" or "due public notice"
29wherever used in this section, shall mean a notice published at
30least ten days before the award of any contract, in a newspaper

1of general circulation published in the municipality where the
2authority has its principal office, and if no newspaper is
3published therein then by publication in a newspaper in the
4county where the authority has its principal office: Provided,
5That such notice may be waived where the authority determines an
6emergency exists, and such supplies and materials must be
7immediately purchased by the said authority.

8(d) No member of the authority or officer or employe thereof
9shall, either directly or indirectly, be a party to or be in any
10manner interested in any contract or agreement with the
11authority for any matter, cause or thing whatsoever by reason
12whereof any liability or indebtedness shall in any way be
13created against such authority. If any contract or agreement
14shall be made in violation of the provisions of this section the
15same shall be null and void and no action shall be maintained
16thereon against such authority.

17(e) Subject to the aforesaid, any authority may (but without
18intending by this provision to limit any powers of such
19authority) enter into and carry out such contracts, or establish
20or comply with such rules and regulations concerning labor and
21materials and other related matters in connection with any
22project or portion thereof, as the authority may deem desirable,
23or as may be requested by any Federal agency that may assist in
24the financing of such project or any part thereof.

25(f) The provisions of this section 12 shall not apply in
26respect of the construction of any project or the purchase of
27any equipment, materials or supplies which the authority may
28have had transferred to it upon completion, by purchase or
29otherwise, by a project applicant or project user or any other
30person or corporation.

1(g) Notwithstanding any of the foregoing, all construction,
2reconstruction, repairs or work of any nature with regard to
3publicly owned infrastructure facilities, where the entire cost,
4value or amount of such construction, reconstruction, repairs or
5work, including labor and materials, shall exceed [ten thousand
6dollars ($10,000)] the base amount and subsequent adjustments 
7established pursuant to 53 Pa.C.S. § <-5614 5614(a)(1), (b) and 
8(c.1), shall be done only under contract or contracts to be
9entered into by the authority or the owner of the infrastructure
10facility, with the lowest responsible bidder upon proper terms,
11after due public notice has been given asking for competitive
12bids as set forth in this section or other applicable law.

13Section 2. This act shall take effect immediately.