1Amending the act of August 23, 1967 (P.L.251, No.102), entitled,
2as amended, "An act providing for the incorporation as public
3instrumentalities of the Commonwealth and as bodies corporate
4and politic of industrial and commercial development
5authorities for municipalities, counties and townships;
6prescribing the rights, powers and duties of such authorities
7hereafter incorporated; authorizing such authorities to
8acquire, by gift or purchase, to construct, improve and
9maintain industrial, specialized, or commercial development
10projects including projects for the elimination or prevention
11of blight and the control of air and water pollution, and to
12borrow money and issue bonds therefor; providing for the
13payment of such bonds and giving security therefor, and
14prescribing the rights of the holders of such bonds;
15authorizing the lease or sale of industrial, specialized, or
16commercial development projects to industrial, specialized,
17or commercial enterprises; authorizing any county,
18municipality or township to transfer or convey to such
19authorities, any facilities or property available for
20industrial, specialized, or commercial development projects;
21exempting the property and securities of such authorities
22from taxation; authorizing such authorities to enter into
23contracts with and to accept grants from the Federal
24Government or any agency thereof; and providing for approval
25by the Secretary of Commerce of the proceedings relating to
26industrial, specialized, or commercial development projects
27of such authorities," further providing for competition in
28award of contracts.

29The General Assembly of the Commonwealth of Pennsylvania
30hereby enacts as follows:

1Section 1. Section 12 of the act of August 23, 1967
2(P.L.251, No.102), known as the Economic Development Financing
3Law, amended December 17, 1993 (P.L.490, No.74), is amended to
4read:

5Section 12. Competition in Award of Contracts.--(a) All
6construction, reconstruction, repairs or work of any nature made
7directly by any authority where the entire cost, value or amount
8of such construction, reconstruction, repairs or work, including
9labor and materials, shall exceed [ten thousand dollars
10($10,000)] the base amount <-and subsequent adjustments 
11established pursuant to 53 Pa.C.S. § 5614 (relating to 
12competition in award of contracts), except construction,
13reconstruction, repairs or work done by employes of said
14authority, or by labor supplied under agreement with any Federal
15or State agency, with supplies and materials purchased as
16hereinafter provided, shall be done only under contract or
17contracts to be entered into by the authority with the lowest
18responsible bidder upon proper terms, after due public notice
19has been given asking for competitive bids as hereinafter
20provided: Provided, however, That where the authority is the
21legal title holder to the project, and there exists an agreement
22whereby a project user or project applicant will or can acquire
23legal title to the said project under the then certain terms and
24conditions, contracts for construction, reconstruction, repair,
25or work of any nature, or purchase of machinery and equipment,
26may be awarded by the project user or project applicant without
27regard to the limitations of this section 12: And provided
28further, however, That for the purposes of this section 12,
29"construction" or "acquisition" shall not include acquisition of
30property for project purposes. No contract shall be entered into

1between an authority and a contractor for construction of any
2project or portion thereof, unless the contractor shall give an
3undertaking with a sufficient surety or sureties approved by the
4authority, and in an amount fixed by the authority, for the
5faithful performance of the contract. All contracts of surety
6shall provide among other things that the contractor entering
7into a contract with the authority will pay for all materials
8furnished and services rendered for the performance of the
9contract, and that any person or corporation furnishing such
10materials or rendering such services may maintain an action to
11recover for the same against the obligor in the undertaking, as
12though such person or corporation was named therein, provided
13the action is brought within one year after the time the cause
14of action accrued.

15(b) All supplies and materials costing [ten thousand dollars
16($10,000) or more] in excess of the base amount <-and subsequent 
17adjustments established pursuant to 53 Pa.C.S. § 5614 to be
18purchased directly by an authority shall be purchased only after
19due advertisement as hereinafter provided. The authority shall
20accept the lowest bid or bids, kind, quality and material being
21equal, but the authority shall have the right to reject any or
22all bids or select a single item from any bid. The provisions as
23to bidding shall not apply to the purchase of patented and
24manufactured products offered for sale in a noncompetitive
25market or solely by a manufacturer's authorized dealer.

26(c) The terms "advertisement" or "due public notice"
27wherever used in this section, shall mean a notice published at
28least ten days before the award of any contract, in a newspaper
29of general circulation published in the municipality where the
30authority has its principal office, and if no newspaper is

1published therein then by publication in a newspaper in the
2county where the authority has its principal office: Provided,
3That such notice may be waived where the authority determines an
4emergency exists, and such supplies and materials must be
5immediately purchased by the said authority.

6(d) No member of the authority or officer or employe thereof
7shall, either directly or indirectly, be a party to or be in any
8manner interested in any contract or agreement with the
9authority for any matter, cause or thing whatsoever by reason
10whereof any liability or indebtedness shall in any way be
11created against such authority. If any contract or agreement
12shall be made in violation of the provisions of this section the
13same shall be null and void and no action shall be maintained
14thereon against such authority.

15(e) Subject to the aforesaid, any authority may (but without
16intending by this provision to limit any powers of such
17authority) enter into and carry out such contracts, or establish
18or comply with such rules and regulations concerning labor and
19materials and other related matters in connection with any
20project or portion thereof, as the authority may deem desirable,
21or as may be requested by any Federal agency that may assist in
22the financing of such project or any part thereof.

23(f) The provisions of this section 12 shall not apply in
24respect of the construction of any project or the purchase of
25any equipment, materials or supplies which the authority may
26have had transferred to it upon completion, by purchase or
27otherwise, by a project applicant or project user or any other
28person or corporation.

29(g) Notwithstanding any of the foregoing, all construction,
30reconstruction, repairs or work of any nature with regard to

1publicly owned infrastructure facilities, where the entire cost,
2value or amount of such construction, reconstruction, repairs or
3work, including labor and materials, shall exceed [ten thousand
4dollars ($10,000)] the base amount <-and subsequent adjustments 
5established pursuant to 53 Pa.C.S. § 5614, shall be done only
6under contract or contracts to be entered into by the authority
7or the owner of the infrastructure facility, with the lowest
8responsible bidder upon proper terms, after due public notice
9has been given asking for competitive bids as set forth in this
10section or other applicable law.

11Section 2. This act shall take effect immediately.