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Reciprocal limitations - 62 Pa. Cons. Stat. § 107

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     § 107.  Reciprocal limitations.
        (a)  Short title of section.--This section shall be known and
     may be cited as the Reciprocal Limitations Act.
        (b)  Legislative findings.--It is hereby determined by the
     General Assembly to reaffirm the legislative findings contained
     in the act of November 28, 1986 (P.L.1465, No.146), known as the
     Reciprocal Limitations Act, and codified in this section:
            (1)  The award of contracts to the lowest responsible
        bidder generally provides for the most economical procurement
        of supplies and construction.
            (2)  In some cases, award to the lowest responsible
        bidder may not be the most economical and practicable when
        the best interests of the Commonwealth are concerned.
            (3)  Some states apply a preference favoring in-state
        supplies or bidders or they apply a prohibition against the
        use of out-of-state supplies or bidders.
            (4)  The application of this preference or prohibition by
        other states diminishes or eliminates opportunities for
        bidders and manufacturers who reside in this Commonwealth to
        obtain construction contracts from or to sell supplies to
        states that have this preference, thereby resulting in the
        loss of business for resident bidders and manufacturers.
        Therefore, in order to offset or counteract the
        discriminatory practices of other states, discourage other
        states from applying a preference and ultimately to aid
        employment, help business and industry located in this
        Commonwealth, attract new business and industry to this
        Commonwealth and provide additional tax revenue both from
        those receiving contracts and those employed by contractors,
        the General Assembly hereby declares that it is the policy of
        this Commonwealth to respond in like manner against those
        states that apply preferences or prohibitions by giving a
        similar offsetting preference to residents in this
        Commonwealth and bidders offering supplies manufactured in
        this Commonwealth and by prohibiting the purchase or use of
        certain supplies, in accordance with the provisions of this
        section.
        (c)  Preference for supplies.--In all procurements of
     supplies exceeding the amount established by the department for
     small procurements under section 514 (relating to small
     procurements), all Commonwealth agencies shall give preference
     to those bidders or offerors offering supplies produced,
     manufactured, mined, grown or performed in this Commonwealth as
     against those bidders or offerors offering supplies produced,
     manufactured, mined, grown or performed in any state that gives
     or requires a preference to supplies produced, manufactured,
     mined, grown or performed in that state. The amount of the
     preference shall be equal to the amount of the preference
     applied by the other state for that particular supply.
        (d)  Preference for resident bidders or offerors.--When a
     contract for construction or supplies exceeding the amount
     established by the department for small procurements under
     section 514 is to be awarded, a resident bidder or offeror shall
     be granted a preference as against a nonresident bidder or
     offeror from any state that gives or requires a preference to
     bidders or offerors from that state. The amount of the
     preference shall be equal to the amount of the preference
     applied by the state of the nonresident bidder or offeror.
        (e)  Prohibition.--For all contracts for construction or
     supplies exceeding the amount established by the department for
     small procurements under section 514, no Commonwealth agency
     shall specify for, use or procure any supplies which are
     produced, manufactured, mined, grown or performed in any state
     that prohibits the specification for, use or procurement of
     these supplies in or on its public buildings or other works when
     these supplies are not produced, manufactured, mined, grown or
     performed in that state.
        (f)  Listing discriminating states.--The department shall
     prepare a list of the states which apply a preference favoring
     in-state supplies or bidders or offerors or a prohibition
     against the use of out-of-state supplies or bidders or offerors
     and shall publish the list in the Pennsylvania Bulletin. When a
     state applies a new preference or prohibition, the department
     shall publish that information in the Pennsylvania Bulletin as
     an addition to the original list.
        (g)  Inclusion in invitation for bids or request for
     proposals.--In all invitations for bids and requests for
     proposals for the procurement of supplies exceeding the amount
     established by the department for small procurements under
     section 514, all Commonwealth agencies shall include a list of
     all the states that have been found by the department to have
     applied a preference favoring in-state supplies, bidders or
     offerors and the amount of the preference. All invitations for
     bids, requests for proposals and notices issued for the purpose
     of securing bids or proposals for contracts for construction or
     supplies exceeding the amount established by the department for
     small procurements under section 514 shall include a list of all
     states that have been found by the department to have applied a
     preference for in-state bidders or offerors and the amount of
     the preference. All invitations for bids, requests for proposals
     and notices issued for the purpose of securing bids or proposals
     for contracts for construction or supplies exceeding the amount
     established by the purchasing agency for small procurements
     under section 514 shall also include a list of all states that
     apply a prohibition against certain supplies and shall inform
     potential bidders or offerors that they are prohibited from
     using supplies from those states. If a bid or proposal discloses
     that the bidder or offeror is offering supplies from a state
     which prohibits the use of out-of-state supplies, the bid or
     proposal shall be rejected.
        (h)  Federal funds.--The provisions of this section shall not
     be applicable when the application of this section may
     jeopardize the receipt of Federal funds.
        (i)  Waiver.--The provisions of this section may be waived
     when the head of the purchasing agency determines in writing
     that it is in the best interests of the Commonwealth.
        (j)  Definitions.--As used in this section, the following
     words and phrases shall have the meanings given to them in this
     subsection:
        "Resident bidder or offeror."  A person, partnership,
     corporation or other business entity authorized to transact
     business in this Commonwealth and having a bona fide
     establishment for transacting business in this Commonwealth at
     which it was transacting business on the date when bids or
     proposals for the public contract were first solicited.
     (Dec. 3, 2002, P.L.1147, No.142, eff. imd.)

        2002 Amendment.  Act 142 amended subsecs. (e) and (g).

Last modified: November 27, 2007