PRINTER'S NO. 2254
No. 1646 Session of 1990
INTRODUCED BY MUSTO, O'PAKE, STAPLETON, HELFRICK, PORTERFIELD
AND SHAFFER, JUNE 7, 1990
REFERRED TO STATE GOVERNMENT, JUNE 7, 1990
AN ACT
1 Providing for the debarment of certain contractors from
2 contracting with governmental units; providing for powers and
3 duties of the Department of General Services; and imposing a
4 penalty.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the Public Works
9 Contractors' Debarment Law.
10 Section 2. Definitions.
11 The following words and phrases when used in this act shall
12 have the meanings given to them in this section unless the
13 context clearly indicates otherwise:
14 "Affiliates." Persons having a relationship such that any
15 one of them directly or indirectly controls or has the power to
16 control another.
17 "Contract." Any arrangement resulting from a request for
18 bids which gives rise to an obligation to perform a public work,
1 or a portion thereof, or to supply materials for a public work.
2 "Debarment." An exclusion from contracting with all
3 government units for a specified period of time.
4 "Department." The Department of General Services of the
5 Commonwealth.
6 "Government unit." Any officer, employee, authority, board,
7 bureau, commission, county, city, district, municipal
8 corporation, municipality, municipal authority, political
9 subdivision, school district, borough, incorporated town,
10 township, county institution district, other incorporated
11 district, the Commonwealth or other public instrumentality which
12 has the authority to contract for the construction,
13 reconstruction, alteration, or repair of any public building,
14 other public work or public improvement, including highway work.
15 "Person." An individual, company, firm, association,
16 corporation or other entity.
17 "Public work." Any structure, building, highway, waterway,
18 street, bridge, pier, transit car or system, airport or other
19 betterment, work, repair, maintenance, expansion, extension or
20 improvement, whether of a permanent or temporary nature, and
21 whether for governmental or proprietary use, which is contracted
22 for by any government unit or financed in whole or in part by a
23 government unit.
24 "Secretary." The Secretary of General Services of the
25 Commonwealth.
26 Section 3. Notice.
27 In any action filed pursuant to section 4 of the act of
28 December 20, 1967 (P.L.869, No.385), known as the Public Works
29 Contractors' Bond Law of 1967, the prothonotary of the court
30 which has jurisdiction shall send a certified copy of any final
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1 order to the secretary.
2 Section 4. Debarment.
3 (a) Determination by secretary.--The secretary shall
4 determine if any person or affiliate has withheld payment of a
5 subcontractor or materialman without just cause. For the purpose
6 of this act, just cause includes, but is not limited to, failure
7 to comply with the terms of the contract or not performing the
8 contract in a workmanlike manner.
9 (b) Consequence of withholding payment without just cause.--
10 If the secretary determines that a person or affiliate has
11 withheld payment without just cause, the person or affiliate
12 shall be debarred from contracting with all government units in
13 this Commonwealth for a period of two years.
14 Section 5. Procedures.
15 (a) Notice of proposed debarment.--The department shall
16 furnish written notice to the person of proposed debarment, the
17 reason for proposed debarment, and the person's right to present
18 information.
19 (b) Determination.--Information in opposition may be
20 presented in person, in writing or through representatives. Any
21 such information must be presented within 30 days of the written
22 notice. The secretary shall make a determination on debarment
23 after the expiration of 30 days, but prior to the expiration of
24 90 days from the date of the written notice.
25 (c) Notice of determination.--The person and its known
26 affiliates shall be notified in writing within ten days of the
27 determination.
28 (d) Appeal.--The person shall have the right to appeal the
29 secretary's determination. All appeals shall be taken pursuant
30 to procedures set forth in Title 2 of the Pennsylvania
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1 Consolidated Statutes (relating to administrative law and
2 procedure).
3 Section 6. Publication.
4 (a) List of persons who have been debarred.--The department
5 shall publish a list of all persons and known affiliates who
6 have been debarred. The list shall be updated quarterly.
7 (b) Mailing of list.--A copy of the list shall be mailed to
8 the office of the chief clerk of each county and to the
9 department or agency official responsible for entering into
10 contracts on behalf of each executive department and agency of
11 the Commonwealth.
12 (c) Availability of list.--A copy of the list shall be made
13 available to each government unit located in whole or in part
14 within a county. Each county chief clerk shall charge for the
15 list. The charge shall not exceed the cost of copying and
16 postage.
17 Section 7. Prohibition against contracting with debarred
18 person.
19 A government unit shall not enter into a contract with any
20 person or affiliate which has been debarred by the secretary
21 under this act.
22 Section 8. Affidavit; penalty.
23 (a) Persons required to execute.--Every person seeking to
24 enter a contract with a government unit in the Commonwealth
25 shall sign an affidavit at the time of the contract that person
26 and affiliates are not debarred.
27 (b) Penalty.--Any person or affiliate who signs a false
28 affidavit shall be subject to criminal penalties pursuant to 18
29 Pa.C.S. § 4903 (relating to false swearing).
30 Section 9. Certain contracts void.
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1 Any contract entered into during a period of debarment is
2 void.
3 Section 10. Cause of action.
4 A government unit may maintain an action against a person or
5 affiliates for any additional cost or expenses incurred because
6 of a violation of this act.
7 Section 11. Regulations.
8 The department shall promulgate rules and regulations to
9 administer and enforce the provisions of this act.
10 Section 12. Repeal.
11 All acts and parts of acts are repealed insofar as they are
12 inconsistent with this act.
13 Section 13. Applicability.
14 This act shall not apply to any contract awarded pursuant to
15 an invitation to bid or pursuant to a bid submitted on or before
16 the effective date of this act.
17 Section 14. Effective date.
18 This act shall take effect in 60 days.
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