Section 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.
1998, May 15, P.L. 358, No. 57, § 1, effective in 180 days. Amended 2002, Dec. 3, P.L. 1147, No. 142, § 3, imd. effective.