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Senate Co-Sponsorship Memoranda

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Senate of Pennsylvania
Session of 2013 - 2014 Regular Session


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