AN ACT

 

1Amending Title 62 (Procurement) of the Pennsylvania Consolidated
2Statutes, further providing for reciprocal limitations.

3The General Assembly of the Commonwealth of Pennsylvania
4hereby enacts as follows:

5Section 1. Section 107 of Title 62 of the Pennsylvania
6Consolidated Statutes is amended to read:

7§ 107. Reciprocal limitations.

8(a) Short title of section.--This section shall be known and
9may be cited as the [Reciprocal Limitations] Pennsylvania First 
10Act.

11(b) Legislative findings.--It is hereby determined by the 
12General Assembly [to reaffirm the legislative findings contained 
13in the act of November 28, 1986 (P.L.1465, No.146), known as the 
14Reciprocal Limitations Act, and codified in this section] that:

15(1) The award of contracts to the lowest responsible
16bidder generally provides for the most economical procurement

1of supplies and construction.

2(2) In some cases, award to the lowest responsible
3bidder may not be the most economical and practicable when
4the best interests of the Commonwealth are concerned.

5(3) Some states apply a preference favoring in-state
6supplies or bidders or they apply a prohibition against the
7use of out-of-state supplies or bidders.

8(4) The application of this preference or prohibition by
9other states diminishes or eliminates opportunities for
10bidders and manufacturers who reside in this Commonwealth to
11obtain construction contracts from or to sell supplies to
12states that have this preference, thereby resulting in the
13loss of business for resident bidders and manufacturers.
14Therefore, in order to offset or counteract the
15discriminatory practices of other states, [discourage other
16states from applying a preference and ultimately to] aid
17employment, help business and industry located in this
18Commonwealth, attract new business and industry to this
19Commonwealth and provide additional tax revenue both from
20those receiving contracts and those employed by contractors,
21the General Assembly hereby declares that it is the policy of
22this Commonwealth to [respond in like manner against those
23states that apply preferences or prohibitions by giving a
24similar offsetting] give preference to residents in this
25Commonwealth and bidders offering supplies manufactured in
26this Commonwealth and [by prohibiting] prohibit the purchase
27or use of certain supplies, in accordance with the provisions
28of this section.

29(c) Preference for supplies.--In all procurements of
30supplies exceeding the amount established by the department for

1small procurements under section 514 (relating to small
2procurements), all Commonwealth agencies shall give preference
3to those bidders or offerors offering supplies produced,
4manufactured, mined, grown or performed in this Commonwealth [as
5against those bidders or offerors offering supplies produced,
6manufactured, mined, grown or performed in any state that gives
7or requires a preference to supplies produced, manufactured,
8mined, grown or performed in that state. The amount of the
9preference shall be equal to the amount of the preference
10applied by the other state for that particular supply].

11(d) Preference for resident bidders or offerors.--When a
12contract for construction or supplies exceeding the amount
13established by the department for small procurements under
14section 514 is to be awarded, a resident bidder or offeror shall
15be granted a preference as against a nonresident bidder or
16offeror [from any state that gives or requires a preference to
17bidders or offerors from that state. The amount of the
18preference shall be equal to the amount of the preference
19applied by the state of the nonresident bidder or offeror].

20(e) Prohibition.--For all contracts for construction or
21supplies exceeding the amount established by the department for
22small procurements under section 514, no Commonwealth agency
23shall specify for, use or procure any supplies which are
24produced, manufactured, mined, grown or performed in any state
25that prohibits the specification for, use or procurement of
26these supplies in or on its public buildings or other works when
27these supplies are not produced, manufactured, mined, grown or
28performed in that state.

29(f) Listing discriminating states.--The department shall
30prepare a list of the states which apply a [preference favoring

1in-state supplies or bidders or offerors or a] prohibition
2against the use of out-of-state supplies or bidders or offerors
3and shall publish the list in the Pennsylvania Bulletin. When a
4state applies a new preference or prohibition, the department
5shall publish that information in the Pennsylvania Bulletin as
6an addition to the original list.

7(g) Inclusion in invitation for bids or request for
8proposals.--[In all invitations for bids and requests for
9proposals for the procurement of supplies exceeding the amount
10established by the department for small procurements under
11section 514, all Commonwealth agencies shall include a list of
12all the states that have been found by the department to have
13applied a preference favoring in-state supplies, bidders or
14offerors and the amount of the preference.] All invitations for
15bids, requests for proposals and notices issued for the purpose
16of securing bids or proposals for contracts for construction or
17supplies exceeding the amount established by the department for
18small procurements under section 514 shall include a list of all
19states that have been found by the department to have applied a
20preference for in-state bidders or offerors and the amount of
21the preference. All invitations for bids, requests for proposals
22and notices issued for the purpose of securing bids or proposals
23for contracts for construction or supplies exceeding the amount
24established by the purchasing agency for small procurements
25under section 514 shall also include a list of all states that
26apply a prohibition against certain supplies and shall inform
27potential bidders or offerors that they are prohibited from
28using supplies from those states. If a bid or proposal discloses
29that the bidder or offeror is offering supplies from a state
30which prohibits the use of out-of-state supplies, the bid or

1proposal shall be rejected.

2(h) Federal funds.--The provisions of this section shall not
3be applicable when the application of this section may
4jeopardize the receipt of Federal funds.

5(i) Waiver.--The provisions of this section may be waived
6when the head of the purchasing agency determines in writing
7that it is in the best interests of the Commonwealth.

8(j) Definitions.--As used in this section, the following
9words and phrases shall have the meanings given to them in this
10subsection:

11"Resident bidder or offeror." A person, partnership, 
12corporation or other business entity authorized to transact 
13business in this Commonwealth and having a bona fide 
14establishment for transacting business in this Commonwealth at 
15which it was transacting business on the date when bids or 
16proposals for the public contract were first solicited.

17Section 2. This act shall take effect in 60 days.