PRIOR PRINTER'S NO. 989 PRINTER'S NO. 1746
No. 878 Session of 2001
INTRODUCED BY FAIRCHILD, M. BAKER, BISHOP, CAPPELLI, CLARK, CLYMER, CORRIGAN, CREIGHTON, DAILEY, DeWEESE, EACHUS, J. EVANS, FRANKEL, GEORGE, GRUCELA, HALUSKA, HARHAI, HENNESSEY, HORSEY, HUTCHINSON, LAUGHLIN, McCALL, MELIO, R. MILLER, NAILOR, ORIE, PHILLIPS, PRESTON, READSHAW, RUFFING, SATHER, SCHRODER, SCRIMENTI, SHANER, STABACK, STEELMAN, STERN, STRITTMATTER, SURRA, E. Z. TAYLOR, J. TAYLOR, TRELLO, WILT, WOJNAROSKI, MAITLAND AND METCALFE, MARCH 12, 2001
AS REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF REPRESENTATIVES, AS AMENDED, APRIL 30, 2001
AN ACT 1 Amending Title 62 (Procurement) of the Pennsylvania Consolidated 2 Statutes, further providing for supplies manufactured and 3 services performed by persons with disabilities. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Section 520 of Title 62 of the Pennsylvania 7 Consolidated Statutes is amended to read: 8 § 520. Supplies manufactured and services performed by persons 9 with disabilities. 10 (a) General rule.--Contracts for supplies manufactured by 11 and services performed by persons with disabilities shall be 12 entered into in accordance with this section without the 13 requirement for competitive bidding. Persons with disabilities 14 must make an appreciable contribution in manufacturing an item
1 or performing a service. 2 (b) Fair market price.--Upon request [of] TO the department <-- 3 and notice to the purchasing agency, the department shall 4 determine the fair market price of any supply manufactured by or 5 service performed by persons with disabilities and offered for 6 sale to any Commonwealth agency by an agency for persons with 7 disabilities. The department shall revise the prices in 8 accordance with changing market conditions. 9 (c) Distribution.--At the request of the department, the 10 Department of Public Welfare or a nonprofit agency with the 11 approval of the Department of Public Welfare shall facilitate 12 the distribution of orders for supplies manufactured by or 13 services performed by persons with disabilities among agencies 14 for persons with disabilities. 15 (d) Procurement of supplies manufactured and services 16 performed by persons with disabilities.--Except as provided in 17 subsection (e), all supplies manufactured by and services 18 furnished by persons with disabilities shall be procured in 19 accordance with applicable specifications of the department or 20 other Commonwealth agencies from any agency for persons with 21 disabilities whenever the supplies and services are available at 22 a price determined by the department to be the fair market 23 price. The head of a purchasing agency shall annually discuss 24 its needs for supplies or services with any agency for persons 25 with disabilities. 26 (e) Procurement from Commonwealth agency.--If any supply 27 manufactured by or any service performed by persons with 28 disabilities and offered for sale is available for procurement 29 from any Commonwealth agency and this part or any other statute 30 requires the procurement of the supply or service from the 20010H0878B1746 - 2 -
1 Commonwealth agency, then the procurement of the supply or 2 service shall be made in accordance with the other provisions. 3 (f) Exception.--Notwithstanding subsection (h), when the 4 Commonwealth enters into a contract under this section for the 5 operation of the Commonwealth's driver's license photo centers, 6 at least 70% of the amount paid by the Commonwealth shall be 7 used to cover payment of wages and salaries to persons with 8 disabilities and to cover actual manufacturing costs, real 9 estate lease costs, property insurance and other costs which are 10 specifically required by contract. 11 (g) Application.-- 12 (1) This section shall not supersede any contract 13 currently in force between a Commonwealth agency and another 14 party. 15 (2) Nothing in this section shall be construed as 16 conferring upon any party any right or interest in any 17 contract entered into with the Commonwealth. 18 (h) Definitions.--As used in this section, the following 19 words and phrases shall have the meanings given to them in this 20 subsection: 21 "Agency for persons with disabilities." Any charitable, 22 nonprofit agency incorporated under the laws of this 23 Commonwealth and approved by the department through which 24 persons with disabilities manufacture supplies or perform 25 services in this Commonwealth. 26 "Appreciable contribution." 27 (1) Except as provided in IN ADDITION TO paragraph (2), <-- 28 the department shall determine whether the contribution by 29 individuals with disabilities is appreciable. Persons with 30 disabilities must make an appreciable contribution in 20010H0878B1746 - 3 -
1 manufacturing an item A SUPPLY or performing a service. <-- 2 (2) At least 75% of the personnel either engaged in the 3 direct labor of manufacturing of a product SUPPLY or engaged <-- 4 in the direct labor in performing a service in this 5 Commonwealth must be visually impaired, mentally retarded, 6 mentally ill or physically disabled. In addition, at least 7 75% of the amount paid by the Commonwealth agency for the 8 product SUPPLY or the service shall be remitted to the agency <-- 9 for persons with disabilities to cover payment of wages and 10 salaries to persons with disabilities and to cover other 11 actual manufacturing costs incurred by the agency for persons 12 with disabilities in manufacturing of a product SUPPLY. <-- 13 "Manufactured." The transformation of raw materials or the 14 assembly of essential component parts or a combination of both 15 in the production of an item A SUPPLY, which is different in <-- 16 form, composition or character from the raw materials or the 17 essential component parts. 18 "Mentally ill." A severe personality or behavioral disorder 19 that constitutes a substantial impediment to employment and 20 which prevents the individual from engaging in normal 21 competitive employment. Those disorders caused by substance 22 abuse or chemical dependency are not included. 23 "Mentally retarded." Subaverage general intellectual 24 functioning which originates during the developmental period and 25 is associated with the impairment of maturation, learning or 26 social adjustment. 27 "Performed." Labor provided to do the work to fulfill the 28 requirements of the contract. 29 "Persons with a disability." A person who is visually 30 impaired, mentally retarded, mentally ill or physically 20010H0878B1746 - 4 -
1 disabled. 2 "Physically disabled." A limitation of most activities and 3 functioning by virtue of a severe impairment of the various 4 bodily systems which cannot be eliminated, modified or 5 substantially reduced by the usual rehabilitation services and 6 which precludes competitive employment. 7 "Services." While "services" is defined in section 103 8 (relating to definitions) of this part, for the purposes of this 9 section, the term specifically includes such packaging or 10 repackaging which, as determined by the department, provides a 11 substantial and real benefit to the Commonwealth agency which 12 needs the supplies to be packaged or repackaged. When packaging 13 or repackaging services are to be provided to a Commonwealth 14 agency by an agency for persons with disabilities, the 15 Commonwealth agency shall make the arrangements for the 16 procurement of the supplies to be packaged or repackaged. 17 Packaging or repackaging shall not be considered "services" if 18 the manufacturer usually packages or repackages the supplies, in 19 the quantity required by the agency, as a part of its 20 manufacturing and distribution process. 21 ["Supply manufactured by or service performed by person with 22 disabilities." At least 75% of the personnel either engaged in 23 the direct labor of manufacturing of a product or engaged in the 24 direct labor in performing a service in this Commonwealth must 25 be visually impaired, mentally retarded or physically disabled. 26 In addition, at least 75% of the amount paid by the Commonwealth 27 agency for the product or the service shall be remitted to the 28 agency for persons with disabilities to cover payment of wages 29 and salaries to persons with disabilities and to cover other 30 actual manufacturing costs incurred by the agency for persons 20010H0878B1746 - 5 -
1 with disabilities in manufacturing of a product.] 2 "Visually impaired." A condition in which central visual 3 acuity does not exceed 20/200 in the better eye with correcting 4 lenses or in which the widest diameter of the visual field 5 subtends an angle no greater than 20 degrees. 6 Section 2. This act shall take effect in 30 days. A24L62JLW/20010H0878B1746 - 6 -