PRINTER'S NO. 483
No. 441 Session of 1989
INTRODUCED BY GODSHALL, S. H. SMITH, COY, MRKONIC, TIGUE,
DISTLER, ROBBINS, GLADECK, MERRY, CIVERA, DEMPSEY, PHILLIPS,
NOYE, CARLSON, HERMAN, STABACK, ALLEN, McVERRY, HESS, FARGO,
GEIST, DeLUCA, NAHILL, JOHNSON, GIGLIOTTI, HALUSKA, REBER,
YANDRISEVITS, TRELLO, VROON, BUNT, McHALE, OLASZ, TRICH,
RAYMOND, CORNELL, WAMBACH, FLICK, VEON, G. SNYDER, HECKLER
AND MARSICO, FEBRUARY 14, 1989
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 14, 1989
AN ACT
1 Amending the act of February 1, 1966 (1965 P.L.1656, No.581),
2 entitled "An act concerning boroughs, and revising, amending
3 and consolidating the law relating to boroughs," restricting
4 certain persons from bidding on contracts.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 1402 of the act of February 1, 1966 (1965
8 P.L.1656, No.581), known as The Borough Code, is amended by
9 adding subsections to read:
10 Section 1402. Regulation of Contracts.--* * *
11 (g) No person who or entity which, as a contractor or
12 subcontractor, supplied goods or services to a government or
13 government instrumentality and has been convicted of, or has
14 pleaded guilty or nolo contendere to, a Federal or State crime
15 involving fraud upon a government or a government
16 instrumentality for acts or omissions arising out of the
1 supplying of goods or services, and no entity in which that
2 person or entity has a substantial interest, may bid on a
3 contract for a period of three years after such conviction or
4 plea. For purposes of this subsection, the following words and
5 phrases shall have the following meanings:
6 (1) "Crime" means any criminal act committed after the
7 effective date of this amendatory act for which the maximum
8 possible penalty exceeds a fine of three hundred dollars ($300)
9 or exceeds imprisonment for ninety days.
10 (2) "Entity" means any association, corporation, limited
11 partnership, partnership, or other business or nonprofit
12 organization.
13 (3) "Fraud" includes, but is not limited to:
14 (i) A misrepresentation of a material fact that is not made
15 honestly and in good faith.
16 (ii) A promise, representation or prediction as to the
17 future that is not made honestly and in good faith.
18 (iii) An intentional failure to disclose a material fact.
19 (iv) A fictitious or pretended purchase or sale of a
20 security.
21 (v) The gaining, through the sale of a security, of an
22 underwriting or promotion fee or profit or a selling or managing
23 fee or profit that is so gross or exorbitant as to be
24 unconscionable. This includes a scheme, device or artifice to
25 obtain such a profit, fee or commission.
26 (vi) A scheme, device or artifice to defraud a prospective
27 or actual customer, client or subscriber of securities, money or
28 property.
29 (4) "State" means the District of Columbia and any
30 possession, state, territory or trusteeship of the United
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1 States.
2 (5) "Substantial interest" means serving as a director,
3 limited partner, officer, partner or proprietor, or owning more
4 than ten percent of the number of shares of voting stock or more
5 than twenty percent of the total number of shares of stock.
6 (h) The borough may require the following information to be
7 submitted with the bid: a sworn statement by the bidder and, if
8 the affiant is an entity, by every person or entity having a
9 substantial interest therein, listing all Federal and state
10 convictions of, and pleas of guilty or nolo contendere to, any
11 crime within three years prior to the date of the statement,
12 said statement to be dated no more than one week prior to the
13 date set for the opening of bids.
14 Section 2. This act shall take effect in 60 days.
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