PRINTER'S NO. 42
No. 48 Session of 1997
INTRODUCED BY HOLL, JANUARY 15, 1997
REFERRED TO LOCAL GOVERNMENT, JANUARY 15, 1997
AN ACT
1 Prohibiting certain persons and corporations from bidding on
2 municipal contracts.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Definitions.
6 The following words and phrases when used in this act shall
7 have the meanings given to them in this section unless the
8 context clearly indicates otherwise:
9 "Conviction." An entry of a plea of guilty or a plea of nolo
10 contendere or a verdict of guilty by a jury or a judge sitting
11 without a jury. The conviction shall be considered final for the
12 purpose of this act after the imposition of sentence.
13 "Enterprise." An individual, partnership, corporation,
14 association or other legal entity engaged in commerce or a union
15 or group of individuals associated in fact, although not a legal
16 entity, engaged in commerce.
17 "High managerial agent." An officer of a corporation or an
1 unincorporated association; an agent of a corporation or
2 association having duties or such responsibility that the
3 agent's conduct may fairly be assumed to represent the policy of
4 the corporation or association; or, in the case of a
5 partnership, a partner.
6 "Municipal contract." A contract entered into by a
7 municipality which by statute requires bidding.
8 "Municipality." A county, city, borough, incorporated town,
9 township, school district or municipal authority.
10 "Person." An individual or entity capable of holding a legal
11 and official interest in property.
12 "Substantial stockholder." A stockholder who, in the
13 aggregate, directly or indirectly, owns or controls 5% of the
14 outstanding securities of a class of stock.
15 Section 2. Certain persons prohibited from bidding.
16 A person who has been convicted of any of the following
17 crimes shall be debarred from bidding on any municipal contract:
18 18 Pa.C.S. § 911 (relating to corrupt organizations).
19 18 Pa.C.S. Ch. 39 (relating to theft and related
20 offenses), wherein the victim is a municipality.
21 18 Pa.C.S. § 4108 (relating to commercial bribery and
22 breach of duty to act disinterestedly), in any case where a
23 participant to the crime was a municipal employee.
24 18 Pa.C.S. Ch. 47 (relating to bribery and corrupt
25 influence).
26 Section 3. Certain enterprises prohibited from bidding.
27 An enterprise which has previously been convicted of any of
28 the following crimes may not bid on a municipal contract:
29 18 Pa.C.S. § 911 (relating to corrupt organizations).
30 18 Pa.C.S. Ch. 39 (relating to theft and related
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1 offenses), wherein the victim is a municipality.
2 18 Pa.C.S. § 4108 (relating to commercial bribery and
3 breach of duty to act disinterestedly), in any case where a
4 participant to the crime was a municipal employee.
5 18 Pa.C.S. Ch. 47 (relating to bribery and corrupt
6 influence).
7 Section 4. Debarment.
8 (a) Establishment of cause for debarment.--The existence of
9 a cause for debarment from bidding under this act shall be
10 established by conviction or a judgment obtained in a court of
11 competent jurisdiction.
12 (b) Term.--Debarments under this act shall be for a period
13 of three years after conviction.
14 (c) Parties affected.--Debarment may include all known
15 affiliates. Decisions to include an affiliate shall be made on a
16 case-by-case basis after giving due regard to all relevant facts
17 and the circumstances. The conviction of a high managerial agent
18 or substantial stockholder for a crime listed in section 2 or 3
19 shall be imputed to the business with which the agent or
20 stockholder is connected when the impropriety involved was
21 performed in the course of official duty or operation of an
22 enterprise or with the knowledge or approval of the business or
23 enterprise.
24 Section 5. Procedure.
25 (a) Notice.--The municipality shall furnish the person or
26 enterprise and its known affiliates with written notice of
27 debarment containing the following:
28 (1) A statement that debarment has occurred.
29 (2) The specific reason for the debarment.
30 (3) The period of time of debarment.
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1 (b) Compliance with act.--A person, enterprise or affiliate
2 covered by a debarment who believes that the debarment was not
3 imposed in accordance with the provisions of this act may appeal
4 the debarment in person, in writing or through representation
5 within 30 days after receipt of written notice of the debarment.
6 The municipality shall make a determination as to whether the
7 debarment was imposed in accordance with this act. If the
8 municipality finds that there was no conviction for any of the
9 crimes set forth in section 2 or 3, the debarment shall be
10 lifted.
11 Section 6. Bidders to file affidavit.
12 Bidders on municipal contracts shall file with their bid an
13 affidavit stating that they are not prohibited from submitting
14 their bid by reason of disqualification under section 2, 3 or 4.
15 The affidavit shall be signed under penalty of perjury.
16 Section 7. Municipality prohibited from awarding contracts.
17 A municipality may not award a municipal contract to an
18 enterprise or entity which is prohibited from bidding on the
19 contract by this act.
20 Section 8. Certain contracts void.
21 A contract entered into in violation of this act is void ab
22 initio, and no action in quantum meruit shall be permitted for
23 recovery against the municipality.
24 Section 9. Effective date.
25 This act shall take effect in 60 days.
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