107 - Reciprocal limitations.

     § 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).        References in Text.  The act of November 28, 1986 (P.L.1465,     No.146), known as the Reciprocal Limitations Act, referred to in     subsec. (b), was repealed by the act of May, 15, 1998, (P.L.358,     No.57). The subject matter is now contained in section 107.