PRINTER'S NO. 504
No. 484 Session of 1999
INTRODUCED BY REINARD, ARMSTRONG, BUXTON, RUBLEY, HENNESSEY,
E. Z. TAYLOR, HERSHEY, STERN, BARD, STABACK, STEELMAN,
WILLIAMS, BARRAR, SEMMEL, MARSICO, HARHAI, WILT, RAMOS,
M. COHEN, THOMAS, NAILOR, FARGO, MICOZZIE, TRELLO, GODSHALL,
LEH, SEYFERT, FLICK AND CLYMER, FEBRUARY 9, 1999
REFERRED TO COMMITTEE ON STATE GOVERNMENT, FEBRUARY 9, 1999
AN ACT
1 Amending Title 62 (Procurement) of the Pennsylvania Consolidated
2 Statutes, providing for alternate security for performance of
3 contracts.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Section 512 of Title 62 of the Pennsylvania
7 Consolidated Statutes is amended by adding a subsection to read:
8 § 512. Competitive sealed bidding.
9 * * *
10 (g.1) Security.--In lieu of a bond to secure a bidder's
11 performance, the contracting agency in its discretion may
12 accept, as a substitute therefor, alternate security in the form
13 of an assignment of time certificates of deposit of banks
14 licensed by the Commonwealth, securities of or those guaranteed
15 by the United States of America, the Commonwealth and its
16 political subdivisions, or shares of savings and loan
17 institutions authorized to transact business in this
1 Commonwealth. In the event such alternate security is accepted,
2 the bidder shall be entitled to all interest or income earned on
3 such security, and all such security shall be returned to the
4 bidder by the department within 60 days after performance.
5 * * *
6 Section 2. This act shall take effect in 60 days.
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