PRINTER'S NO. 4013
No. 2790 Session of 2000
INTRODUCED BY WALKO, ROBINSON, THOMAS, LEDERER, ORIE, COSTA,
M. COHEN, PISTELLA, GEORGE, WOJNAROSKI, DALEY, LAUGHLIN,
BELFANTI, PETRARCA, SHANER, CURRY, DeLUCA, MELIO, HARHAI,
WOGAN AND JOSEPHS, OCTOBER 3, 2000
REFERRED TO COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT,
OCTOBER 3, 2000
AN ACT
1 Setting a limitation on certain contracts awarded to
2 disadvantaged business enterprises and imposing a penalty.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Limitation on State-funded contracts.
6 (a) General rule.--No contract to be paid wholly or in part
7 with State moneys shall be awarded to a disadvantaged business
8 enterprise which will not perform a commercially useful function
9 in fulfilling the terms of the contract.
10 (b) Penalty.--A contract awarded to a disadvantaged business
11 enterprise in violation of this section is null and void.
12 (c) Definitions.--As used in this section, the following
13 words and phrases shall have the meanings given to them in this
14 subsection:
15 "Commercially useful function." A disadvantaged business
16 enterprise performs a "commercially useful function" if it is
1 responsible for execution of the work of the contract and
2 carries out its responsibility by actually performing, managing
3 and supervising the work involved. To perform a "commercially
4 useful function," a disadvantaged business enterprise must also
5 be responsible for negotiating price, determining quality and
6 quantity, ordering, paying for and, where applicable, installing
7 materials and supplies used on the contract. In determining
8 whether a disadvantaged business enterprise performs a
9 "commercially useful function," the following shall be
10 considered along with other relevant factors: the amount and
11 percentage of the work subcontracted, industry practices and
12 whether the amount of money earned under the contract is
13 commensurate with the amount of work performed.
14 "Disadvantaged business enterprise." A disadvantaged
15 business enterprise as defined in 49 CFR Pt. 26 (relating to
16 participation by disadvantaged business enterprises in
17 department of transportation financial assistance programs).
18 Section 2. Applicability.
19 This act shall apply to contracts entered into on or after
20 the effective date of this act.
21 Section 3. Effective date.
22 This act shall take effect immediately.
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