PRIOR PRINTER'S NOS. 834, 2014                PRINTER'S NO. 2197

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 757 Session of 1991


        INTRODUCED BY STETLER, ANGSTADT, BILLOW, BUNT, CAPPABIANCA,
           COLAIZZO, COY, DEMPSEY, KOSINSKI, LINTON, McNALLY, MERRY,
           PESCI, PISTELLA, SERAFINI, STURLA, TRELLO, VAN HORNE AND
           WAMBACH, MARCH 13, 1991

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 28, 1991

                                     AN ACT

     1  Amending the act of June 23, 1931 (P.L.932, No.317), entitled
     2     "An act relating to cities of the third class; and amending,
     3     revising, and consolidating the law relating thereto,"
     4     granting city council the authority to determine whether or
     5     not security should accompany bids submitted in response to
     6     advertisement.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  Section 1901(f) of the act of June 23, 1931
    10  (P.L.932, No.317), known as The Third Class City Code, reenacted
    11  and amended June 28, 1951 (P.L.662, No.164) and amended
    12  September 17, 1959 (P.L.906, No.359), is amended to read:
    13     Section 1901.  Power to Make Contracts; Regulations
    14  Concerning Contracts.--* * *
    15     (f)  [All bids advertised for shall be accompanied by cash,
    16  by a certified or cashier's good faith check in an amount
    17  required by council but at least ten per centum of the bid, or
    18  by a bond with corporate surety in such amount as council shall


     1  determine but not less than ten per centum of the amount bid.]
     2  Council may require that any bids so advertised be accompanied
     3  by cash, by a certified or cashier's good faith check or other
     4  irrevocable letter of credit in an acceptable A REASONABLE        <--
     5  amount, or by a bond with corporate surety in an acceptable A     <--
     6  REASONABLE amount. Whenever it is required that a bid be
     7  accompanied by cash, certified check, cashier's good faith check
     8  or other irrevocable letter of credit, no bid shall be
     9  considered unless so accompanied. In the event any bidder shall,
    10  upon award of the contract to him, fail to comply with the
    11  requirements hereinafter stated as to a bond guaranteeing the
    12  performance of the contract the good faith deposit by cash,
    13  certified check, or bond, shall be forfeited to the city as
    14  liquidated damages.
    15     * * *
    16     Section 2.  This act shall take effect in 60 days.










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