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        PRIOR PRINTER'S NOS. 1314, 3500,              PRINTER'S NO. 4232
        4170

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1161 Session of 1999


        INTRODUCED BY BARD, HERMAN, ROSS, LESCOVITZ AND COY,
           APRIL 7, 1999

        AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES,
           NOVEMBER 21, 2000

                                     AN ACT

     1  Amending the act of December 20, 1967 (P.L.869, No.385),
     2     entitled "An act establishing a uniform and mandatory system
     3     governing the requirement of bonds to be furnished by
     4     contractors in the prosecution of any public building, or
     5     other public work or public improvement, including road work;
     6     the rights and remedies of persons furnishing labor or
     7     material in the prosecution of such public building, public
     8     work or public improvement, including road work; procedure in
     9     connection with suits on payment bonds; rights of persons
    10     furnishing labor or materials to a copy of bond; prescribing
    11     penalties; and repealing other prior acts or provisions
    12     thereof inconsistent herewith," further providing for
    13     enforcement of claims and for financial security to be
    14     provided by contractors and bidders; AND MAKING A REPEAL.      <--

    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17     Section 1.  Sections 4, 6 and 8 of the act of December 20,
    18  1967 (P.L.869, No.385), known as the Public Works Contractors'
    19  Bond Law of 1967, are amended to read:
    20     Section 4.  (a)--Subject to the provisions of subsection (b)
    21  hereof, any claimant who has performed labor or furnished
    22  material in the prosecution of the work provided for in any


     1  contract for which a payment bond has been given, pursuant to
     2  the provisions of subsection (a) of section 3 of this act or for
     3  which other financial security has been given pursuant to
     4  subsection (a) of section 3.1 of this act, and who has not been
     5  paid in full therefor before the expiration of ninety days after
     6  the day on which such claimant performed the last of such labor
     7  or furnished the last of such materials for which he claims
     8  payments, may bring an action on such payment bond or other
     9  financial security in his own name, in assumpsit, to recover any
    10  amount due him for such labor or material, and may prosecute
    11  such action to final judgment and have execution on the
    12  judgment.
    13     (b)  Any claimant who has a direct contractual relationship
    14  with any subcontractor of the prime contractor who gave such
    15  payment bond or other financial security but has no contractual
    16  relationship, express or implied, with such prime contractor may
    17  bring an action on the payment bond or other financial security
    18  only if he has given written notice to such contractor within
    19  ninety days from the date on which the claimant performed the
    20  last of the labor or furnished the last of the materials for
    21  which he claims payment, stating with substantial accuracy the
    22  amount claimed and the name of the person for whom the work was
    23  performed or to whom the material was furnished.
    24     Notice shall be served by registered or certified mail,
    25  postage prepaid, in an envelope addressed to such contractor at
    26  any place where his office is regularly maintained for the
    27  transaction of business or served in any manner in which legal
    28  process may be served in the manner now or hereafter provided by
    29  law for the service of a summons, except that such service need
    30  not be made by a public officer.
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     1     Section 6.  (a)--The contracting body shall furnish a
     2  certified copy of any payment bond or other financial security
     3  and the contract for which such bond or security was given to
     4  any person who makes an application for such copy and who
     5  submits an affidavit stating that:
     6     (1)  He has furnished material or performed labor, for the
     7  completion of the work provided for in the contract, and that he
     8  has not been fully paid for such labor or material; or
     9     (2)  He is a defendant in an action brought on a payment bond
    10  or other financial security; or
    11     (3)  He is the surety in a payment bond on which an action
    12  has been brought or is the representative of a lending
    13  institution that has issued or is maintaining financial security
    14  on which an action has been brought.
    15     (b)  Every such applicant shall pay for each certified copy a
    16  fee fixed by the contracting body to cover the actual cost of
    17  the preparation of such copy.
    18     (c)  A certified copy of any payment bond or other financial
    19  security and of the contract for which such bond or security was
    20  given shall constitute prima facie evidence of the contents,
    21  execution and delivery of the original of such bond and
    22  contract.
    23     Section 8.  (a)--It is unlawful for any representative of a
    24  contracting body, in issuing an invitation for bids, to require
    25  that any bond specified in section 3 of this act or authorized
    26  under section 3.1 of this act be furnished by a particular
    27  surety company or through a particular agent or broker.
    28     (b)  Any person who violates the provisions of this section
    29  is guilty of a misdemeanor and upon conviction thereof shall be
    30  sentenced to pay a fine not exceeding five thousand dollars
    19990H1161B4232                  - 3 -

     1  ($5,000), or undergo imprisonment for a term not exceeding five
     2  years, or both.
     3     SECTION 2.  FOR STATE PURCHASES OF GOODS AND SERVICES FROM     <--
     4  NONPROFIT WORK CENTERS EMPLOYING PERSONS WITH DISABILITIES, THE
     5  TERM "SERVICES" SHALL SPECIFICALLY INCLUDE SUCH PACKAGING OR
     6  REPACKAGING WHICH, AS DETERMINED BY THE DEPARTMENT OF GENERAL
     7  SERVICES, PROVIDES A SUBSTANTIAL AND REAL BENEFIT TO THE
     8  COMMONWEALTH AGENCY WHICH NEEDS THE SUPPLIES TO BE PACKAGED OR
     9  REPACKAGED. WHEN PACKAGING OR REPACKAGING SERVICES ARE TO BE
    10  PROVIDED TO A COMMONWEALTH AGENCY, BY AN AGENCY FOR PERSONS WITH
    11  DISABILITIES, THE COMMONWEALTH AGENCY SHALL MAKE THE
    12  ARRANGEMENTS FOR THE PROCUREMENT OF THE SUPPLIES TO BE PACKAGED
    13  OR REPACKAGED. PACKAGING OR REPACKAGING SHALL NOT BE CONSIDERED
    14  "SERVICES" IF THE MANUFACTURER USUALLY PACKAGES OR REPACKAGES
    15  THE SUPPLIES, IN THE QUANTITY REQUIRED BY THE AGENCY, AS PART OF
    16  ITS MANUFACTURING AND DISTRIBUTION PROCESS.
    17     SECTION 3.  THE ACT OF MAY 1, 1913 (P.L.155, NO.104),
    18  ENTITLED "AN ACT REGULATING THE LETTING OF CERTAIN CONTRACTS FOR
    19  THE ERECTION, CONSTRUCTION, AND ALTERATION OF PUBLIC BUILDINGS,"
    20  IS REPEALED INSOFAR AS IT RELATES TO TRANSPORTATION AUTHORITIES.
    21     Section 2 4.  The amendment of sections 4, 6 and 8 of the act  <--
    22  shall be retroactive to February 15, 1991.
    23     Section 3 5.  This act shall take effect immediately.          <--





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