An Act prohibiting certain terms in procurement contracts entered into by Commonwealth parties.

PRINTER'S NO. 1864
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1410
Session of
2026
INTRODUCED BY PHILLIPS-HILL, JUNE 29, 2026
REFERRED TO STATE GOVERNMENT, JUNE 29, 2026
AN ACT
Prohibiting certain terms in procurement contracts entered into
by Commonwealth parties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Commonwealth
Party Procurement Contract Terms Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Commonwealth party." The government of the Commonwealth,
including any of its courts and other officers or agencies of
the unified judicial system, the General Assembly and its
officers and agencies, the Governor and a department, board,
commission, authority, officer and agency of the Commonwealth.
The term does not include a political subdivision or municipal
or other local authority, or any of their officers or agencies.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
"Construction." As defined in 62 Pa.C.S. § 103 (relating to
definitions).
"Local agency." A government unit other than the
Commonwealth government. The term includes an intermediate unit,
municipality cooperating in the exercise or performance of
governmental functions, powers or responsibilities under 53
Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental
cooperation), a council of government and other entity created
by two or more municipalities under 53 Pa.C.S. Ch. 23 Subch. A.
"Procurement." As defined in 62 Pa.C.S. § 103.
"Services." As defined in 62 Pa.C.S. § 103.
"Supplies." As defined in 62 Pa.C.S. § 103.
Section 3. Prohibited terms.
Except as otherwise required by Federal or State law, a
contract or agreement, regardless of cost, for the procurement
or disposal of supplies, services or construction or the
licensing, access, exchange or use of information, software or
information technology entered into by a Commonwealth party or
local agency may not include a provision that:
(1) Requires the Commonwealth party or local agency to
indemnify, defend or hold any other entity harmless from
liability.
(2) Subjects the Commonwealth party or local agency to
binding arbitration or any other binding dispute resolution
process.
(3) Designates a venue for a legal action or dispute
against the Commonwealth party outside the courts of the
Commonwealth or a Federal court in Pennsylvania or waives a
claim or defense that the forum is not convenient or proper.
(4) Requires the contract to be governed by the laws of
20260SB1410PN1864 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
a jurisdiction other than the Commonwealth of Pennsylvania or
required by Federal law.
(5) Conflicts with an applicable Federal or State
statute or regulation.
(6) Requires the Commonwealth party or local agency to
be responsible for or pay attorney or collection fees.
(7) Requires the Commonwealth party to pay interest or
late fees other than what the Commonwealth party is
authorized to pay under section 1507 of the act of April 9,
1929 (P.L.343, No.176), known as The Fiscal Code, and
accompanying regulations under 4 Pa. Code Ch. 2 Subch. B
(relating to interest penalties for late payments).
Section 4. Effect of prohibited terms.
A term or condition in a contract or agreement, regardless of
cost, for the procurement or disposal of supplies, services or
construction or the licensing, access or use of software or
information technology entered into by a Commonwealth party or
local agency that violates section 3 shall be void and
unenforceable. The remainder of the contract or agreement shall
remain valid and enforceable as if the void term had not been
included.
Section 5. Applicability.
This act shall apply to contracts and agreements entered
into, amended or renewed, on or after the effective date of this
section.
Section 6. Effective date.
This act shall take effect in 60 days.
20260SB1410PN1864 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27