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                                                       PRINTER'S NO. 851

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 509 Session of 2001


        INTRODUCED BY THOMPSON, MOWERY, KUKOVICH, RHOADES, COSTA,
           TARTAGLIONE, M. WHITE, MUSTO, BOSCOLA, LEMMOND, WILLIAMS,
           ROBBINS, LOGAN, SCHWARTZ, WAUGH, HELFRICK, TOMLINSON AND
           CONTI, APRIL 3, 2001

        REFERRED TO STATE GOVERNMENT, APRIL 3, 2001

                                     AN ACT

     1  Amending Title 62 (Procurement) of the Pennsylvania Consolidated
     2     Statutes, further providing for supplies manufactured and
     3     services performed by persons with disabilities.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6     Section 1.  Section 520 of Title 62 of the Pennsylvania
     7  Consolidated Statutes is amended to read:
     8  § 520.  Supplies manufactured and services performed by persons
     9             with disabilities.
    10     (a)  General rule.--Contracts for supplies manufactured by
    11  and services performed by persons with disabilities shall be
    12  entered into in accordance with this section without the
    13  requirement for competitive bidding. Persons with disabilities
    14  must make an appreciable contribution in manufacturing an item
    15  or performing a service.
    16     (b)  Fair market price.--Upon request of the department and
    17  notice to the purchasing agency, the department shall determine


     1  the fair market price of any supply manufactured by or service
     2  performed by persons with disabilities and offered for sale to
     3  any Commonwealth agency by an agency for persons with
     4  disabilities. The department shall revise the prices in
     5  accordance with changing market conditions.
     6     (c)  Distribution.--At the request of the department, the
     7  Department of Public Welfare or a nonprofit agency with the
     8  approval of the Department of Public Welfare shall facilitate
     9  the distribution of orders for supplies manufactured by or
    10  services performed by persons with disabilities among agencies
    11  for persons with disabilities.
    12     (d)  Procurement of supplies manufactured and services
    13  performed by persons with disabilities.--Except as provided in
    14  subsection (e), all supplies manufactured by and services
    15  furnished by persons with disabilities shall be procured in
    16  accordance with applicable specifications of the department or
    17  other Commonwealth agencies from any agency for persons with
    18  disabilities whenever the supplies and services are available at
    19  a price determined by the department to be the fair market
    20  price. The head of a purchasing agency shall annually discuss
    21  its needs for supplies or services with any agency for persons
    22  with disabilities.
    23     (e)  Procurement from Commonwealth agency.--If any supply
    24  manufactured by or any service performed by persons with
    25  disabilities and offered for sale is available for procurement
    26  from any Commonwealth agency and this part or any other statute
    27  requires the procurement of the supply or service from the
    28  Commonwealth agency, then the procurement of the supply or
    29  service shall be made in accordance with the other provisions.
    30     (f)  Exception.--Notwithstanding subsection (h), when the
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     1  Commonwealth enters into a contract under this section for the
     2  operation of the Commonwealth's driver's license photo centers,
     3  at least 70% of the amount paid by the Commonwealth shall be
     4  used to cover payment of wages and salaries to persons with
     5  disabilities and to cover actual manufacturing costs, real
     6  estate lease costs, property insurance and other costs which are
     7  specifically required by contract.
     8     (g)  Application.--
     9         (1)  This section shall not supersede any contract
    10     currently in force between a Commonwealth agency and another
    11     party.
    12         (2)  Nothing in this section shall be construed as
    13     conferring upon any party any right or interest in any
    14     contract entered into with the Commonwealth.
    15     (h)  Definitions.--As used in this section, the following
    16  words and phrases shall have the meanings given to them in this
    17  subsection:
    18     "Agency for persons with disabilities."  Any charitable,
    19  nonprofit agency incorporated under the laws of this
    20  Commonwealth and approved by the department through which
    21  persons with disabilities manufacture supplies or perform
    22  services in this Commonwealth.
    23     "Appreciable contribution."
    24         (1)  Except as provided in paragraph (2), the department
    25     shall determine whether the contribution by individuals with
    26     disabilities is appreciable. Persons with disabilities must
    27     make an appreciable contribution in manufacturing an item or
    28     performing a service.
    29         (2)  At least 75% of the personnel either engaged in the
    30     direct labor of manufacturing of a product or engaged in the
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     1     direct labor in performing a service in this Commonwealth
     2     must be visually impaired, mentally retarded, mentally ill or
     3     physically disabled. In addition, at least 75% of the amount
     4     paid by the Commonwealth agency for the product or the
     5     service shall be remitted to the agency for persons with
     6     disabilities to cover payment of wages and salaries to
     7     persons with disabilities and to cover other actual
     8     manufacturing costs incurred by the agency for persons with
     9     disabilities in manufacturing of a product.
    10     "Manufactured."  The transformation of raw materials or the
    11  assembly of essential component parts or a combination of both
    12  in the production of an item, which is different in form,
    13  composition or character from the raw materials or the essential
    14  component parts.
    15     "Mentally ill."  A severe personality or behavioral disorder
    16  that constitutes a substantial impediment to employment and
    17  which prevents the individual from engaging in normal
    18  competitive employment. Those disorders caused by substance
    19  abuse or chemical dependency are not included.
    20     "Mentally retarded."  Subaverage general intellectual
    21  functioning which originates during the developmental period and
    22  is associated with the impairment of maturation, learning or
    23  social adjustment.
    24     "Performed."  Labor provided to do the work to fulfill the
    25  requirements of the contract.
    26     "Persons with a disability."  A person who is visually
    27  impaired, mentally retarded, mentally ill or physically
    28  disabled.
    29     "Physically disabled."  A limitation of most activities and
    30  functioning by virtue of a severe impairment of the various
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     1  bodily systems which cannot be eliminated, modified or
     2  substantially reduced by the usual rehabilitation services and
     3  which precludes competitive employment.
     4     "Services."  While "services" is defined in section 103
     5  (relating to definitions) of this part, for the purposes of this
     6  section, the term specifically includes such packaging or
     7  repackaging which, as determined by the department, provides a
     8  substantial and real benefit to the Commonwealth agency which
     9  needs the supplies to be packaged or repackaged. When packaging
    10  or repackaging services are to be provided to a Commonwealth
    11  agency by an agency for persons with disabilities, the
    12  Commonwealth agency shall make the arrangements for the
    13  procurement of the supplies to be packaged or repackaged.
    14  Packaging or repackaging shall not be considered "services" if
    15  the manufacturer usually packages or repackages the supplies, in
    16  the quantity required by the agency, as a part of its
    17  manufacturing and distribution process.
    18     ["Supply manufactured by or service performed by person with
    19  disabilities."  At least 75% of the personnel either engaged in
    20  the direct labor of manufacturing of a product or engaged in the
    21  direct labor in performing a service in this Commonwealth must
    22  be visually impaired, mentally retarded or physically disabled.
    23  In addition, at least 75% of the amount paid by the Commonwealth
    24  agency for the product or the service shall be remitted to the
    25  agency for persons with disabilities to cover payment of wages
    26  and salaries to persons with disabilities and to cover other
    27  actual manufacturing costs incurred by the agency for persons
    28  with disabilities in manufacturing of a product.]
    29     "Visually impaired."  A condition in which central visual
    30  acuity does not exceed 20/200 in the better eye with correcting
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     1  lenses or in which the widest diameter of the visual field
     2  subtends an angle no greater than 20 degrees.
     3     Section 2.  This act shall take effect in 30 days.


















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