Test Drive Our New Site! We have some improvements in the works that we're excited for you to experience. Click here to try our new, faster, mobile friendly beta site. We will be maintaining our current version of the site thru the end of 2024, so you can switch back as our improvements continue.
Legislation Quick Search
06/20/2024 04:32 AM
Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20130&cosponId=13622
Share:
Home / Senate Co-Sponsorship Memoranda

Senate Co-Sponsorship Memoranda

Subscribe to PaLegis Notifications
NEW!

Subscribe to receive notifications of new Co-Sponsorship Memos circulated

By Member | By Date | Keyword Search


Senate of Pennsylvania
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted: November 6, 2013 09:53 AM
From: Senator John H. Eichelberger, Jr.
To: All Senate members
Subject: Performance Bonds
 
I plan to introduce legislation to amend the Public Works Contractors' Bond Law of 1967 to address another issue raised in last session’s Senate Local Government Committee hearings on the Harrisburg incinerator project.

One factor remained prominent throughout the hearings: Had the Public Works Contractors’ Bond Law worked as intended, Harrisburg could have saved hundreds of millions in unsustainable debt. My legislation would close the apparent “loophole” which can allow projects to be embarked upon without adequate security for the municipality.

My bill would eliminate alternative security instruments which do not adequately protect the taxpayers when projects go bad. The law would require security for all levels of governments equal to the contract amount in the form of a performance bond, payment bond (for supply of materials), irrevocable letters of credit, or escrow account.



Introduced as SB1189