SENATE AMENDED
PRIOR PRINTER'S NOS. 989, 1746, 1991 PRINTER'S NO. 4708
No. 878 Session of 2001
INTRODUCED BY FAIRCHILD, M. BAKER, BISHOP, CAPPELLI, CLARK,
CLYMER, CORRIGAN, CREIGHTON, DAILEY, DeWEESE, EACHUS,
J. EVANS, FRANKEL, GEORGE, GRUCELA, HALUSKA, HARHAI,
HENNESSEY, HORSEY, HUTCHINSON, LAUGHLIN, McCALL, MELIO,
R. MILLER, NAILOR, ORIE, PHILLIPS, PRESTON, READSHAW,
RUFFING, SATHER, SCHRODER, SCRIMENTI, SHANER, STABACK,
STEELMAN, STERN, STRITTMATTER, SURRA, E. Z. TAYLOR,
J. TAYLOR, TRELLO, WILT, WOJNAROSKI, MAITLAND AND METCALFE,
MARCH 12, 2001
SENATOR THOMPSON, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
AMENDED, NOVEMBER 26, 2002
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 (A) GENERAL RULE.-- <--
12 (1) CONTRACTS FOR SUPPLIES MANUFACTURED BY and services
13 performed by persons with disabilities shall be entered into
14 in accordance with this section without the requirement for
1 competitive bidding. Persons with disabilities must make an
2 appreciable contribution in manufacturing an item or
3 performing a service.
4 (2) WHEN THE COMMONWEALTH ENTERS INTO A CONTRACT UNDER <--
5 THIS SECTION WITH A COST EXCEEDING $300,000 PER YEAR, THE
6 DEPARTMENT, IN COOPERATION WITH THE PURCHASING AGENCY, SHALL
7 CONDUCT AN ANNUAL REVIEW TO CONFIRM COMPLIANCE WITH THE
8 CONTRACT AND THE REQUIREMENTS OF THIS SECTION. THE ANNUAL
9 REVIEW SHALL INCLUDE, BUT NOT BE LIMITED TO, AN ASSESSMENT OF
10 ALL REQUIREMENTS RELATED TO APPRECIABLE CONTRIBUTION. IF THE
11 DEPARTMENT, IN COOPERATION WITH THE PURCHASING AGENCY,
12 DETERMINES THAT PERSONS WITH DISABILITIES ARE NOT MAKING AN
13 APPRECIABLE CONTRIBUTION IN THE MANUFACTURING OF AN ITEM OR
14 THE PERFORMANCE OF A SERVICE, OR AN AGENCY FOR PERSONS WITH
15 DISABILITIES IS NOT IN COMPLIANCE WITH OTHER REQUIREMENTS OF
16 THIS SECTION, THE DEPARTMENT SHALL GIVE AN AGENCY FOR PERSONS
17 WITH DISABILITIES 45 DAYS IN WHICH TO REMEDY THE DEFICIENCY.
18 IF THE AGENCY FOR PERSONS WITH DISABILITIES FAILS TO REMEDY
19 THE DEFICIENCY WITHIN 45 DAYS, THE AGENCY FOR PERSONS WITH
20 DISABILITIES SHALL BE DEEMED TO BE IN NONCOMPLIANCE WITH THE
21 CONTRACT, AND THE PURCHASING AGENCY MAY TERMINATE THE
22 CONTRACT AND SEEK TO PROCURE THE ITEM OR SERVICE THROUGH A
23 COMPETITIVE BIDDING PROCESS. NOTHING IN THIS SECTION SHALL
24 PRECLUDE A PURCHASING AGENCY FROM PROCURING AN ITEM OR
25 SERVICE THROUGH AN EMERGENCY CONTRACT WHEN AN AGENCY FOR
26 PERSONS WITH DISABILITIES IS DEEMED TO BE IN NONCOMPLIANCE.
27 (b) Fair market price.--Upon request [of] to the department
28 and notice to the purchasing agency, the department shall
29 determine the fair market price of any supply manufactured by or
30 service performed by persons with disabilities and offered for
20010H0878B4708 - 2 -
1 sale to any Commonwealth agency by an agency for persons with
2 disabilities. The department shall revise the prices in
3 accordance with changing market conditions.
4 (c) Distribution.--At the request of the department, the
5 Department of Public Welfare or a nonprofit agency with the
6 approval of the Department of Public Welfare shall facilitate
7 the distribution of orders for supplies manufactured by or
8 services performed by persons with disabilities among agencies
9 for persons with disabilities.
10 (d) Procurement of supplies manufactured and services
11 performed by persons with disabilities.--Except as provided in
12 subsection (e), all supplies manufactured by and services
13 furnished by persons with disabilities shall be procured in
14 accordance with applicable specifications of the department or
15 other Commonwealth agencies from any agency for persons with
16 disabilities whenever the supplies and services are available at
17 a price determined by the department to be the fair market
18 price. The head of a purchasing agency shall annually discuss
19 its needs for supplies or services with any agency for persons
20 with disabilities.
21 (e) Procurement from Commonwealth agency.--If any supply
22 manufactured by or any service performed by persons with
23 disabilities and offered for sale is available for procurement
24 from any Commonwealth agency and this part or any other statute
25 requires the procurement of the supply or service from the
26 Commonwealth agency, then the procurement of the supply or
27 service shall be made in accordance with the other provisions.
28 (f) Exception.--Notwithstanding subsection (h), when the
29 Commonwealth enters into a contract under this section for the
30 operation of the Commonwealth's driver's license photo centers,
20010H0878B4708 - 3 -
1 at least 70% of the amount paid by the Commonwealth shall be
2 used to cover payment of wages and salaries to persons with
3 disabilities and to cover actual manufacturing costs, real
4 estate lease costs, property insurance and other costs which are
5 specifically required by contract.
6 (g) Application.--
7 (1) This section shall not supersede any contract
8 currently in force between a Commonwealth agency and another
9 party.
10 (2) Nothing in this section shall be construed as
11 conferring upon any party any right or interest in any
12 contract entered into with the Commonwealth.
13 (h) Definitions.--As used in this section, the following
14 words and phrases shall have the meanings given to them in this
15 subsection:
16 "Agency for persons with disabilities." Any charitable,
17 nonprofit agency incorporated under the laws of this
18 Commonwealth and approved by the department through which
19 persons with disabilities manufacture supplies or perform
20 services in this Commonwealth.
21 "Appreciable contribution."
22 (1) In addition to paragraph (2), the department shall
23 determine whether the contribution by individuals with
24 disabilities is appreciable. Persons with disabilities must
25 make an appreciable contribution in manufacturing a supply or
26 performing a service.
27 (2) At least 75% of the personnel either engaged in the
28 direct labor of manufacturing of a supply or engaged in the
29 direct labor in performing a service in this Commonwealth
30 must be visually impaired, mentally retarded, mentally ill or <--
20010H0878B4708 - 4 -
1 physically disabled. In addition, at least 75% of the amount
2 paid by the Commonwealth agency for the supply or the service
3 shall be remitted to the agency for persons with disabilities
4 to cover payment of wages and salaries to persons with
5 disabilities and to cover other actual manufacturing costs
6 incurred by the agency for persons with disabilities in
7 manufacturing of a supply.
8 "Manufactured." The transformation of raw materials or the
9 assembly of essential component parts or a combination of both
10 in the production of a supply, which is different in form,
11 composition or character from the raw materials or the essential
12 component parts. THIS DEFINITION APPLIES ONLY TO THE ASSEMBLY OF <--
13 A SUPPLY.
14 Mentally ill." A severe personality or behavioral disorder, <--
15 including, but not limited to, the following which are defined
16 by the American Psychiatric Association in the most recent
17 edition of the Diagnostic and Statistical Manual: schizophrenia,
18 bipolar disorder, obsessive-compulsive disorder, major
19 depressive disorder, panic disorder, anorexia nervosa, bulimia
20 nervosa, schizoaffective disorder and delusional disorder, that
21 constitutes a substantial impediment to employment and which
22 prevents the individual from engaging in normal competitive
23 employment. Those disorders caused by substance abuse or
24 chemical dependency are not included.
25 "Mentally retarded." Subaverage general intellectual
26 functioning which originates during the developmental period and
27 is associated with the impairment of maturation, learning or
28 social adjustment.
29 "Performed." Labor provided to do the work to fulfill the
30 requirements of the contract.
20010H0878B4708 - 5 -
1 "Persons with a disability." A person who is visually
2 impaired, mentally retarded, mentally ill or physically <--
3 disabled.
4 "Physically disabled." A limitation of most activities and
5 functioning by virtue of a severe impairment of the various
6 bodily systems which cannot be eliminated, modified or
7 substantially reduced by the usual rehabilitation services and
8 which precludes competitive employment.
9 "Services." While "services" is defined in section 103
10 (relating to definitions) of this part, for the purposes of this
11 section, the term specifically includes such packaging or
12 repackaging which, as determined by the department, provides a
13 substantial and real benefit to the Commonwealth agency which
14 needs the supplies to be packaged or repackaged. When packaging
15 or repackaging services are to be provided to a Commonwealth
16 agency by an agency for persons with disabilities, the
17 Commonwealth agency shall make the arrangements for the
18 procurement of the supplies to be packaged or repackaged.
19 Packaging or repackaging shall not be considered "services" if
20 the manufacturer usually packages or repackages the supplies, in
21 the quantity required by the agency, as a part of its
22 manufacturing and distribution process. THIS DEFINITION APPLIES <--
23 ONLY TO THE PACKAGING OR REPACKAGING OF A SUPPLY.
24 ["Supply manufactured by or service performed by person with
25 disabilities." At least 75% of the personnel either engaged in
26 the direct labor of manufacturing of a product or engaged in the
27 direct labor in performing a service in this Commonwealth must
28 be visually impaired, mentally retarded or physically disabled.
29 In addition, at least 75% of the amount paid by the Commonwealth
30 agency for the product or the service shall be remitted to the
20010H0878B4708 - 6 -
1 agency for persons with disabilities to cover payment of wages
2 and salaries to persons with disabilities and to cover other
3 actual manufacturing costs incurred by the agency for persons
4 with disabilities in manufacturing of a product.]
5 "Visually impaired." A condition in which central visual
6 acuity does not exceed 20/200 in the better eye with correcting
7 lenses or in which the widest diameter of the visual field
8 subtends an angle no greater than 20 degrees.
9 Section 2. This act shall take effect in 30 days.
A24L62JLW/20010H0878B4708 - 7 -