PENNSYLVANIA, June 29 - "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

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