HB 1259 — An Act amending Title 62 (Procurement) of the Pennsylvania Consolidated Statutes, in source selection and contract formation, providing for additional qualifications for public work projects; imposing duties on the Office of State Inspector General; and imposing penalties.

PRINTER'S NO.   1404

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1259
                                                  Session of
                                                    2025

     INTRODUCED BY SIEGEL, KRUEGER, MALAGARI, PIELLI, FIEDLER,
        WAXMAN, PROKOPIAK, HILL-EVANS, GIRAL, MERSKI, McNEILL, DALEY,
        KENYATTA, BRENNAN, SCHWEYER, MADDEN, KHAN, DONAHUE, SANCHEZ,
        BOYD, DAVIDSON, DEASY, OTTEN, WARREN, RIVERA, CERRATO,
        CIRESI, STEELE, SCHLOSSBERG AND O'MARA, APRIL 17, 2025

     REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, APRIL 17, 2025


                                     AN ACT
 1   Amending Title 62 (Procurement) of the Pennsylvania Consolidated
 2      Statutes, in source selection and contract formation,
 3      providing for additional qualifications for public work
 4      projects; imposing duties on the Office of State Inspector
 5      General; and imposing penalties.
 6      The General Assembly of the Commonwealth of Pennsylvania
 7   hereby enacts as follows:
 8      Section 1.    Chapter 5 of Title 62 of the Pennsylvania
 9   Consolidated Statutes is amended by adding a subchapter to read:
10                               SUBCHAPTER D.1
11           ADDITIONAL QUALIFICATIONS FOR PUBLIC WORK PROJECTS
12   Sec.
13   539.   Definitions.
14   539.1. Applicability.
15   539.2. Forms.
16   539.3. Responsibilities of purchasing agency.
17   539.4. Additional qualifications.
18   539.5. Enforcement, penalties and remedies.
 1   539.6. Criminal penalty.
 2   § 539.   Definitions.
 3      The following words and phrases when used in this subchapter
 4   shall have the meanings given to them in this section unless the
 5   context clearly indicates otherwise:
 6      "Apprenticeship program."    As follows:
 7            (1)   An apprenticeship training program that is approved
 8      by and registered with the Department of Labor and Industry
 9      under the act of July 14, 1961 (P.L.604, No.304), known as
10      The Apprenticeship and Training Act, and that provides for
11      on-the-job training, classroom training and the graduation of
12      apprentice trainees to journeyperson status.
13            (2)   The term includes an apprenticeship program subject
14      to ERISA or a non-ERISA program.
15      "ERISA."    The Employee Retirement Income Security Act of 1974
16   (Public Law 93-406, 88 Stat. 829).
17      "Public work contract."    A contract for a public work
18   project.
19      "Public work project."    A project providing for any aspect of
20   construction, reconstruction, demolition, alteration, repair or
21   maintenance work completed under a contract or cooperative
22   purchasing agreement by a Commonwealth agency, which costs at
23   least $300,000.
24      "Skilled craft laborer."    A member of a trade who:
25            (1)   is a journeyperson who has work experience
26      equivalent to the total number of on-the-job training hours
27      required by the applicable apprenticeship program; or
28            (2)   graduated from or is currently enrolled in an
29      apprenticeship program.
30   § 539.1.   Applicability.

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 1      Notwithstanding any provision of law and this title, this
 2   subchapter shall apply to public work projects. The requirements
 3   of this subchapter are intended to supplement the requirements
 4   under this chapter.
 5   § 539.2.    Forms.
 6      (a)     Development of form.--The department shall develop a
 7   form that a contractor or subcontractor will certify compliance
 8   with all of the requirements specified under this subchapter.
 9      (b)     Completion and submission.--The form under this section
10   must be completed by a contractor and submitted to a purchasing
11   agency with an offer or bid.
12      (c)     Subcontractor.--Forms must be completed by a
13   subcontractor, regardless of tier, and submitted to the
14   contractor and purchasing agency prior to commencing work on a
15   public work project.
16   § 539.3.    Responsibilities of purchasing agency.
17      A purchasing agency:
18            (1)   Shall only award a public work contract to a
19      contractor that meets the requirements of this subchapter.
20            (2)   Shall review a form submitted by a contractor for
21      compliance before awarding a public work contract.
22            (3)   May require any additional information from a
23      contractor that the purchasing agency deems necessary to
24      evaluate compliance with this subchapter.
25            (4)   Shall determine if each subcontractor on a
26      subcontractor list provided under section 539.4(b) (relating
27      to additional qualifications) meets the requirements of this
28      subchapter. If the purchasing agency determines that a
29      subcontractor does not meet the requirements of this
30      subchapter, the purchasing agency shall inform the contractor

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 1      in writing of the determination and shall:
 2                  (i)    Permit the contractor to substitute the
 3            subcontractor with a subcontractor that meets the
 4            requirements of this subchapter.
 5                  (ii)    Disqualify the contractor if the subcontractor
 6            remains in noncompliance.
 7            (5)   Shall notify the contractor, in writing, whether a
 8      contractor or subcontractor meets or does not meet the
 9      requirements of this subchapter.
10   § 539.4.    Additional qualifications.
11      (a)     Requirements for public work project.--In addition to
12   the requirements under this subchapter, to receive an award for
13   or commence work on a public work project, a contractor or
14   subcontractor, regardless of tier, shall:
15            (1)   Maintain all registrations, certificates or other
16      credentials required by Federal and State law and regulations
17      that may be required to do business.
18            (2)   Be in compliance with bonding and general liability
19      insurance requirements required by law or contract
20      specifications and with the act of June 2, 1915 (P.L.736,
21      No.338), known as the Workers' Compensation Act, and the act
22      of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1),
23      known as the Unemployment Compensation Law.
24            (3)   Within the previous three years, have not, after
25      notice and appeal procedures specified in applicable law:
26                  (i)    been debarred or suspended by a Federal, State
27            or local government agency or authority;
28                  (ii)    defaulted on a project;
29                  (iii)    had any business, contracting or trade
30            license, registration or certification revoked or

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 1        suspended; or
 2               (iv)   been found in violation of any law applicable
 3        to its business, including licensing, tax, wage and hour,
 4        environmental or safety laws.
 5        (4)    Within the previous 10 years, have not been
 6    convicted of any crime relating to its business.
 7        (5)    Ensure that all construction workers employed on the
 8    public work project and the prime contractor or onsite
 9    supervisor have completed the Occupational Safety and Health
10    Administration 10-hour construction training course
11    established by the United States Department of Labor.
12        (6)    Participate in an apprenticeship program for each
13    specific trade or classification employed by the contractor
14    on the project.
15        (7)    Provide a list of all crafts or classifications for
16    all construction workers that it will employ on the public
17    work project and the names and addresses of the applicable
18    apprenticeship programs.
19        (8)    Have all other resources, including equipment,
20    personnel and financial resources, to successfully perform
21    the public work contract or subcontract and to maintain
22    capabilities throughout the duration of the public work
23    project or obtain these resources through the use of
24    subcontractors or vendors.
25        (9)    Notify the purchasing agency within seven days of
26    any material changes in its operation that impact compliance
27    with this subsection.
28        (10)    For the previous five years, disclose any
29    fictitious name changes or controlling interests by another
30    company or business entity.

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 1      (b)     Contractors.--A contractor shall:
 2            (1)   Submit a subcontractor list to the purchasing agency
 3      that provides the name and address of the subcontractors that
 4      it intends to use on the public work project and the scope of
 5      work assigned to each subcontractor. The contractor shall
 6      only use subcontractors identified on the list and may
 7      request written authorization from the purchasing agency to
 8      substitute or add subcontractors.
 9            (2)   Ensure that the following percentage of workers
10      employed for the construction of a public work project are
11      skilled craft laborers:
12                  (i)    50% for years one and two;
13                  (ii)    55% for year three;
14                  (iii)    60% for year four;
15                  (iv)    65% for year five; and
16                  (v)    70% for every year thereafter.
17   § 539.5.    Enforcement, penalties and remedies.
18      (a)     Termination and forfeiture of money.--If a purchasing
19   agency determines that a contractor has knowingly falsified a
20   compliance form or failed to meet additional qualifications
21   under section 539.4 (relating to additional qualifications), the
22   purchasing agency may terminate the public work contract, and
23   all money due or to become due to the contractor may be
24   forfeited as a violation of the terms and conditions of the
25   contract.
26      (b)     Enforcement by Office of State Inspector General.--In
27   addition to the responsibilities assigned to a purchasing agency
28   under this subchapter, the Office of State Inspector General
29   shall provide supplemental enforcement by:
30            (1)   Accepting, reviewing and investigating in a timely

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 1      manner any credible complaint that a contractor has violated
 2      a provision of this subchapter.
 3            (2)   Conducting complaint-based and random audits of
 4      contracts covered by this subchapter to ensure compliance.
 5      (c)     Penalties imposed by Office of State Inspector
 6   General.--If the Office of State Inspector General finds that a
 7   contractor has knowingly falsified a compliance form or failed
 8   to meet the additional qualifications under section 539.4, the
 9   Office of State Inspector General shall:
10            (1)   Assess an administrative fine of $1,000 for a first
11      offense and up to $25,000 for a subsequent offense, depending
12      on the severity of the violation.
13            (2)   Notify the purchasing agency and require
14      cancellation or termination of the public work contract at no
15      fault to the purchasing agency.
16            (3)   Refer all identified or suspected violations of
17      existing wage and hour, safety, procurement or other laws to
18      the appropriate Federal or State agency for additional
19      enforcement.
20      (d)     Cooperative agreements.--To the extent permitted by
21   Federal and State law, the Office of State Inspector General or
22   purchasing agencies may enter into cooperative agreements with
23   purchasing agencies to facilitate information sharing and
24   enforcement of the requirements of this subchapter.
25      (e)     Notice and hearing.--Enforcement actions under this
26   section may be appealed in accordance with 2 Pa.C.S. (relating
27   to administrative law and procedure).
28   § 539.6.    Criminal penalty.
29      An individual or contractor who knowingly submits a form or
30   other information to the purchasing agency under this subchapter

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1   which is false in any material manner shall be guilty of a
2   misdemeanor in accordance with 18 Pa.C.S. § 4903 (relating to
3   false swearing) and shall be subject to a fine not to exceed
4   $1,000.
5      Section 2.   The addition of 62 Pa.C.S. Ch. 5 Subch. D.1 shall
6   apply to bids or proposals made on or after the date that is one
7   year after the effective date of this section.
8      Section 3.   This act shall take effect in 60 days.




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