PRINTER'S NO. 486
No. 444 Session of 1989
INTRODUCED BY GODSHALL, S. H. SMITH, COY, MRKONIC, TIGUE,
DISTLER, ROBBINS, GLADECK, MERRY, CIVERA, DEMPSEY, PHILLIPS,
NOYE, CARLSON, HERMAN, STABACK, ALLEN, McVERRY, HESS, FARGO,
GEIST, DeLUCA, NAHILL, JOHNSON, GIGLIOTTI, HALUSKA, REBER,
YANDRISEVITS, TRELLO, VROON, BUNT, McHALE, OLASZ, TRICH,
RAYMOND, CORNELL, WAMBACH, FLICK, G. SNYDER, HECKLER, MARSICO
AND VEON, FEBRUARY 14, 1989
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 14, 1989
AN ACT
1 Amending the act of May 2, 1945 (P.L.382, No.164), entitled "An
2 act providing for the incorporation as bodies corporate and
3 politic of 'Authorities' for municipalities, counties and
4 townships; prescribing the rights, powers and duties of such
5 Authorities heretofore or hereafter incorporated; authorizing
6 such Authorities to acquire, construct, improve, maintain and
7 operate projects, and to borrow money and issue bonds
8 therefor; providing for the payment of such bonds, and
9 prescribing the rights of the holders thereof; conferring the
10 right of eminent domain on such Authorities; authorizing such
11 Authorities to enter into contracts with and to accept grants
12 from the Federal Government or any agency thereof; and
13 conferring exclusive jurisdiction on certain courts over
14 rates," restricting certain persons from bidding on
15 contracts.
16 The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18 Section 1. The act of May 2, 1945 (P.L.382, No.164), known
19 as the Municipality Authorities Act of 1945, is amended by
20 adding a section to read:
21 Section 10.1. Restrictions Concerning Contracts.--A. No
22 person who or entity which, as a contractor or subcontractor,
1 supplied goods or services to a government or government
2 instrumentality and has been convicted of, or has pleaded guilty
3 or nolo contendere to, a Federal or state crime involving fraud
4 upon a government or a government instrumentality for acts or
5 omissions arising out of the supplying of goods or services, and
6 no entity in which that person or entity has a substantial
7 interest, may bid on a contract for a period of three years
8 after such conviction or plea. For purposes of this subsection,
9 the following words and phrases shall have the following
10 meanings:
11 (a) "Crime" means any criminal act committed after the
12 effective date of this amendatory act for which the maximum
13 possible penalty exceeds a fine of three hundred dollars ($300)
14 or exceeds imprisonment for ninety days.
15 (b) "Entity" means any association, corporation, limited
16 partnership, partnership, or other business or nonprofit
17 organization.
18 (c) "Fraud" includes, but is not limited to:
19 (1) A misrepresentation of a material fact that is not made
20 honestly and in good faith.
21 (2) A promise, representation or prediction as to the future
22 that is not made honestly and in good faith.
23 (3) An intentional failure to disclose a material fact.
24 (4) A fictitious or pretended purchase or sale of a
25 security.
26 (5) The gaining, through the sale of a security, of an
27 underwriting or promotion fee or profit or a selling or managing
28 fee or profit that is so gross or exorbitant as to be
29 unconscionable. This includes a scheme, device or artifice to
30 obtain such a profit, fee or commission.
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1 (6) A scheme, device or artifice to defraud a prospective or
2 actual customer, client or subscriber of securities, money or
3 property.
4 (d) "State" means the District of Columbia and any
5 possession, state, territory or trusteeship of the United
6 States.
7 (e) "Substantial interest" means serving as a director,
8 limited partner, officer, partner or proprietor, or owning more
9 than ten per centum of the number of shares of voting stock or
10 more than twenty per centum of the total number of shares of
11 stock.
12 B. The township may require the following information to be
13 submitted with the bid: a sworn statement by the bidder and, if
14 the affiant is an entity, by every person or entity having a
15 substantial interest therein, listing all Federal and State
16 convictions of, and pleas of guilty or nolo contendere to, any
17 crime within three years prior to the date of the statement,
18 said statement to be dated no more than one week prior to the
19 date set for the opening of bids.
20 Section 2. This act shall take effect in 60 days.
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