PA.Regulation
Pennsylvania Act 114 bars out-of-state dispute, arbitration and indemnification terms in Commonwealth procurement contracts
Pennsylvania enacted the Commonwealth Party Procurement Contract Terms Act (Senate Bill 1410) as Act No. 114 of 2026 on October 22, 2026. The act prohibits Commonwealth parties and local agencies from entering procurement contracts containing out-of-state dispute provisions, binding arbitration, non-Pennsylvania governing law or indemnification clauses. A prohibited term is void and unenforceable, and the remainder of the contract stays valid. The act takes effect December 21, 2026, and applies to contracts entered into, amended or renewed from that date.
Enrolled text (Pennsylvania General Assembly) → · Pennsylvania House of Representatives, Senator Kristin Phillips-Hill
Key points
- Section 3 also bars attorney- and collection-fee terms and interest or late fees beyond what the Fiscal Code authorizes.Pennsylvania General AssemblyPennsylvania House of Representatives
- The act applies to contracts for supplies, services, construction and software or information-technology licensing, entered, amended or renewed on or after its effective date.Pennsylvania General AssemblyPennsylvania House of Representatives
- The Senate passed the bill 49 to 0 on October 7, 2026, and the House passed it 203 to 0 on October 21, 2026.Pennsylvania General Assembly
- Senator Kristin Phillips-Hill sponsored the bill, introduced at the request of Attorney General Dave Sunday.Senator Kristin Phillips-Hill
- The prohibition covers terms conflicting with an applicable federal or state statute or regulation.Pennsylvania General AssemblyPennsylvania House of Representatives
- Section 6 takes effect 60 days after approval, on December 21, 2026.Pennsylvania General AssemblyPennsylvania House of Representatives
Sources3 articles across 3 outlets
Pennsylvania General Assembly
Pennsylvania House of Representatives
Senator Kristin Phillips-Hill
Filed under
RegulationPa.Commonwealth Party Procurement Contract Terms ActComplianceContractsRegulatoryFor practitionersFor governance