PRINTER'S NO. 491
No. 449 Session of 1989
INTRODUCED BY GODSHALL, S. H. SMITH, COY, MRKONIC, TIGUE,
DISTLER, ROBBINS, GLADECK, MERRY, CIVERA, DEMPSEY, PHILLIPS,
NOYE, CARLSON, HERMAN, STABACK, ALLEN, HESS, FARGO, GEIST,
DeLUCA, NAHILL, JOHNSON, GIGLIOTTI, HALUSKA, REBER,
YANDRISEVITS, TRELLO, VROON, BUNT, McHALE, OLASZ, TRICH,
RAYMOND, CORNELL, WAMBACH, FLICK, VEON, McVERRY, G. SNYDER,
HECKLER AND MARSICO, FEBRUARY 14, 1989
REFERRED TO COMMITTEE ON URBAN AFFAIRS, FEBRUARY 14, 1989
AN ACT
1 Amending the act of June 23, 1931 (P.L.932, No.317), entitled
2 "An act relating to cities of the third class; and amending,
3 revising, and consolidating the law relating thereto,"
4 restricting persons from bidding on contracts.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. The act of June 23, 1931 (P.L.932, No.317), known
8 as The Third Class City Code, reenacted and amended June 28,
9 1951 (P.L.662, No.164), is amended by adding a section to read:
10 Section 1919. Restrictions.--(a) No person who or entity
11 which, as a contractor or subcontractor, supplied goods or
12 services to a government or government instrumentality and has
13 been convicted of, or has pleaded guilty or nolo contendere to,
14 a Federal or State crime involving fraud upon a government or a
15 government instrumentality for acts or omissions arising out of
16 the supplying of goods or services, and no entity in which that
1 person or entity has a substantial interest, may bid on a
2 contract for a period of three years after such conviction or
3 plea. For purposes of this subsection, the following words and
4 phrases shall have the following meanings:
5 (1) "Crime" means any criminal act committed after the
6 effective date of this amendatory act for which the maximum
7 possible penalty exceeds a fine of three hundred dollars ($300)
8 or exceeds imprisonment for ninety days.
9 (2) "Entity" means any association, corporation, limited
10 partnership, partnership, or other business or nonprofit
11 organization.
12 (3) "Fraud" includes, but is not limited to:
13 (i) A misrepresentation of a material fact that is not made
14 honestly and in good faith.
15 (ii) A promise, representation or prediction as to the
16 future that is not made honestly and in good faith.
17 (iii) An intentional failure to disclose a material fact.
18 (iv) A fictitious or pretended purchase or sale of a
19 security.
20 (v) The gaining, through the sale of a security, of an
21 underwriting or promotion fee or profit or a selling or managing
22 fee or profit that is so gross or exorbitant as to be
23 unconscionable. This includes a scheme, device or artifice to
24 obtain such a profit, fee or commission.
25 (vi) A scheme, device or artifice to defraud a prospective
26 or actual customer, client or subscriber of securities, money or
27 property.
28 (4) "State" means the District of Columbia, any possession,
29 state, territory or trusteeship of the United States.
30 (5) "Substantial interest" means serving as a director,
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1 limited partner, officer, partner or proprietor, or owning more
2 than ten per centum of the number of shares of voting stock or
3 more than twenty per centum of the total number of shares of
4 stock.
5 (b) The city may require the following information to be
6 submitted with the bid: a sworn statement by the bidder and, if
7 the affiant is an entity, by every person or entity having a
8 substantial interest therein, listing all Federal and state
9 convictions of, and pleas of guilty or nolo contendere to, any
10 crime within three years prior to the date of the statement,
11 said statement to be dated no more than one week prior to the
12 date set for the opening of bids.
13 Section 2. This act shall take effect in 60 days.
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