The Commonwealth Party Procurement Contract Terms Act establishes specific prohibitions on terms that can be included in procurement contracts entered into by Commonwealth parties and local agencies in Pennsylvania. The bill defines key terms such as "Commonwealth party," "local agency," "procurement," "services," and "supplies," and outlines prohibited provisions in contracts. These prohibitions include requirements for indemnification, binding arbitration, venue designations outside Pennsylvania, governance by laws of other jurisdictions, conflicts with federal or state statutes, responsibility for attorney fees, and payment of interest or late fees beyond what is authorized by existing law.

Any contract that includes these prohibited terms will have those specific terms deemed void and unenforceable, while the rest of the contract will remain valid. The act applies to contracts entered into, amended, or renewed after its effective date, which is set to be 60 days from the enactment. This legislation aims to protect Commonwealth parties and local agencies from potentially unfavorable contractual obligations.