An Act prohibiting certain terms in procurement contracts entered into by Commonwealth parties.
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This act prohibits certain terms from being included in contracts entered into by Commonwealth parties, such as government agencies and related entities. Specifically, it restricts provisions that require indemnification, subject parties to binding arbitration, designate venues outside Pennsylvania courts, or are governed by laws outside of Pennsylvania. The goal is to standardize procurement practices and limit potential legal risks for the Commonwealth.
Key provisions
- Prohibits requiring Commonwealth parties to indemnify other entities.
- Restricts the use of binding arbitration clauses.
- Prevents designating venues outside Pennsylvania courts for legal disputes.
- Requires contracts to be governed by Pennsylvania law, unless mandated by federal law.
- Prohibits requiring Commonwealth parties to pay attorney or collection fees.
- Limits interest or late fees to those authorized by The Fiscal Code.
- Defines ‘Commonwealth party’ broadly to include various state agencies and entities.
Who is affected
- Commonwealth government agencies
- Courts and judicial system entities
- Legislative bodies and agencies
- The Governor and related departments
- Local government units (excluding political subdivisions)
Notable changes
- This act introduces a specific prohibition on certain contract terms, adding a layer of regulation to Commonwealth procurement.
Bill text
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Document of record
- Version
- Pn 1864 Html
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Sponsors
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1 on record
Primary sponsor
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