PRINTER'S NO. 2817

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2239 Session of 1991


        INTRODUCED BY HAGARTY, RYAN, PITTS, BARLEY, FLICK, SCHULER,
           GODSHALL, REBER, GLADECK, LANGTRY, M. N. WRIGHT, FARMER,
           LAWLESS, BIRMELIN, S. H. SMITH, CORNELL, GALLEN, PERZEL, LEH,
           FAIRCHILD, CLYMER, FREIND, E. Z. TAYLOR, FARGO, SAURMAN,
           JOHNSON, VROON, BLACK, HARLEY AND D. W. SNYDER,
           NOVEMBER 26, 1991

        REFERRED TO COMMITTEE ON CONSERVATION, NOVEMBER 26, 1991

                                     AN ACT

     1  Amending the act of April 9, 1929 (P.L.177, No.175), entitled
     2     "An act providing for and reorganizing the conduct of the
     3     executive and administrative work of the Commonwealth by the
     4     Executive Department thereof and the administrative
     5     departments, boards, commissions, and officers thereof,
     6     including the boards of trustees of State Normal Schools, or
     7     Teachers Colleges; abolishing, creating, reorganizing or
     8     authorizing the reorganization of certain administrative
     9     departments, boards, and commissions; defining the powers and
    10     duties of the Governor and other executive and administrative
    11     officers, and of the several administrative departments,
    12     boards, commissions, and officers; fixing the salaries of the
    13     Governor, Lieutenant Governor, and certain other executive
    14     and administrative officers; providing for the appointment of
    15     certain administrative officers, and of all deputies and
    16     other assistants and employes in certain departments, boards,
    17     and commissions; and prescribing the manner in which the
    18     number and compensation of the deputies and all other
    19     assistants and employes of certain departments, boards and
    20     commissions shall be determined," abolishing the State Board
    21     for Certification of Sewage Treatment Plant and Waterworks
    22     Operators; regulating the Energy Development Authority;
    23     placing the Crime Victim's Compensation Board under the
    24     Pennsylvania Commission on Crime and Delinquency; further
    25     providing for compensation and expenses and for an executive
    26     director; transferring the powers, duties and functions of
    27     the Agriculture Lands Condemnation Approval Board to the
    28     State Agricultural Land Preservation Board; limiting the use
    29     of certain debt-incurred funds for administrative purposes;
    30     providing for the transfer of the positive ending balance of


     1     the General Fund to the Tax Stabilization Reserve Fund;
     2     providing for a government management and costs study
     3     commission; providing for privatization of governmental
     4     functions; providing for duties of the Department of General
     5     Services and other executive agencies; providing for reports
     6     to the General Assembly; regulating private correctional
     7     facilities; providing for contracts with, licensing of and
     8     employee status for private correctional facilities; imposing
     9     powers and duties on the Department of Corrections; providing
    10     for enforcement and penalties; providing for the
    11     privatization of youth centers and certain public
    12     transportation services; and making repeals.

    13     The General Assembly of the Commonwealth of Pennsylvania
    14  hereby enacts as follows:
    15     Section 1.  Section 306 of the act of April 9, 1929 (P.L.177,
    16  No.175), known as The Administrative Code of 1929, is repealed.
    17     Section 2.  Section 471 of the act, amended November 1, 1979
    18  (P.L.251, No.83), is amended to read:
    19     Section 471.  Environmental Quality Board.--The Environmental
    20  Quality Board shall consist of the Secretary of Environmental
    21  Resources, who shall be chairman thereof, the Secretary of
    22  Health, the Secretary of Commerce, the Secretary of
    23  Transportation, the Secretary of Agriculture, the Secretary of
    24  Labor and Industry, the Secretary of Community Affairs, the
    25  Executive Director of the Fish Commission, the Executive
    26  Director of the Game Commission, the Chairman of the Public
    27  Utilities Commission, the Executive Director of the State
    28  Planning Board, the Executive Director of the Pennsylvania
    29  Historical and Museum Commission, [five members of the Citizens
    30  Advisory Council, and four members of the General Assembly. The
    31  Citizens Advisory Council members shall be designated by, and
    32  serve at the pleasure of, the Citizens Advisory Council. One of
    33  the General Assembly members shall be designated by, and serve
    34  at the pleasure of, the President Pro Tempore of the Senate, one
    35  by the Minority Leader of the Senate, one by the Speaker of the

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     1  House of Representatives and one by the Minority Leader of the
     2  House of Representatives.] one member appointed by the Governor,
     3  four citizen members appointed by the General Assembly and four
     4  members of the General Assembly. One of the citizen members
     5  shall be designated by, and serve at the pleasure of, the
     6  President pro tempore of the Senate, one by the Minority Leader
     7  of the Senate, one by the Speaker of the House of
     8  Representatives and one by the Minority Leader of the House of
     9  Representatives. The four members of the General Assembly shall
    10  be the Majority Chairman and Minority Chairman of Environmental
    11  Resources and Energy Committee of the Senate and the Majority
    12  Chairman and Minority Chairman of the Conservation Committee of
    13  the House of Representatives. In addition to the heads of the
    14  various departments as elsewhere in this act provided, the other
    15  members of the board may have named alternates to serve in their
    16  stead, the alternates for the members of the board from the
    17  Citizens Advisory Council to be selected by that council from
    18  members of the council and each other alternate to be selected
    19  by that particular member of the board in whose stead he is to
    20  serve. No person will serve as alternate for more than one board
    21  member.
    22     Eight members of the board shall constitute a quorum.
    23     Section 3.  Section 473 of the act is repealed.
    24     Section 4.  Section 477.1(a) and (e) of the act, added July
    25  9, 1976 (P.L.574, No.139), are amended to read:
    26     Section 477.1.  Crime Victim's Compensation Board.--(a)
    27  There is hereby created [a departmental administrative board for
    28  the administration of this act, which shall be known as the
    29  Crime Victim's Compensation Board.] an administrative board
    30  responsible to the Pennsylvania Commission on Crime and
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     1  Delinquency, to be known as the Crime Victim's Compensation
     2  Board. The board shall administer the crime victims'
     3  compensation provisions of this act. Such board shall consist of
     4  three members no more than two of whom shall belong to the same
     5  political party, who shall be appointed by the Governor by and
     6  with the consent of a majority of the Senate.
     7     * * *
     8     (e)  [The members of the board shall devote their full time
     9  and capacity to their duties.] The members of the board shall
    10  [receive an annual starting salary of twenty-five thousand
    11  dollars ($25,000). Thereafter they shall receive an annual
    12  salary to be fixed by the Executive Board of the Commonwealth
    13  within the amount made available by appropriation] be
    14  compensated at a rate of one hundred twenty-five dollars ($125)
    15  per day and receive reimbursement for their actual and necessary
    16  expenses while performing the business of the board. The
    17  chairman shall receive five hundred dollars ($500) additional
    18  compensation per annum.
    19     Section 5.  Section 477.2 of the act is amended by adding a
    20  subsection to read:
    21     Section 477.2.  Powers and Duties of Board.--The board shall
    22  have the following powers and duties:
    23     * * *
    24     (m)  To employ a director and a chief counsel. The director
    25  shall be responsible for the administrative operation of the
    26  board and shall perform such other duties as may be delegated or
    27  assigned to him by the board. The director shall be supervised
    28  by the Executive Director of the Pennsylvania Commission on
    29  Crime and Delinquency. The chief counsel shall be the chief
    30  legal officer of the board.
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     1     Section 6.  The act is amended by adding sections to read:
     2     Section 530.  Limitation on Utilization of Certain Funds.--
     3  Commencing with the fiscal year July 1, 1991, to June 30, 1992,
     4  and each fiscal year thereafter, no funds which are received
     5  through the incurrence of debt for any period in excess of one
     6  year shall be appropriated, authorized, allocated or used by any
     7  independent or administrative department, board, agency,
     8  authority or commission of the Commonwealth for any
     9  administrative purposes.
    10     Section 624.  Transfer to Tax Stabilization Reserve Fund.--At
    11  the close of the fiscal year 1990-1991, and each fiscal year
    12  thereafter, the amount of any positive ending balance of the
    13  General Fund shall, within ten days of the close of each fiscal
    14  year, be transferred to the Tax Stabilization Reserve Fund. The
    15  General Assembly hereby annually appropriates the positive
    16  ending balance of the General Fund for the fiscal year 1990-1991
    17  and for each fiscal year thereafter for transfers to the Tax
    18  Stabilization Reserve Fund.
    19     Section 625.  Government Management and Costs Study
    20  Commission.--(a)  A government management and costs study
    21  commission of leaders from the public and private sectors is
    22  hereby formed to study State government operations in an effort
    23  to propose changes which will:
    24     (1)  cut costs;
    25     (2)  increase efficiency;
    26     (3)  consolidate like functions;
    27     (4)  return functions to the private sector; and
    28     (5)  eliminate functions.
    29     (b)  The commission of leaders shall be comprised of fifteen
    30  members consisting of four members to be appointed by the
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     1  Governor, with at least two appointments being nongovernmental
     2  representatives; three members to be appointed by the Majority
     3  Leader of the Senate, two members to be appointed by the
     4  Minority Leader of the Senate with at least one appointment from
     5  each authority being a nongovernmental representative; three
     6  members to be appointed by the Majority Leader of the House of
     7  Representatives, two members to be appointed by the Minority
     8  Leader of the House of Representatives with at least one
     9  appointment from each authority being a nongovernmental
    10  representative; and one member who shall serve as chairman to be
    11  chosen by the majority vote of five appointing authorities.
    12     (c)  The commission of leaders shall make a report of its
    13  findings and recommendations to the Governor and the appointing
    14  authorities within one year of the formation of the commission.
    15     (d)  This section shall terminate and the commission shall
    16  expire following submission of the report required by subsection
    17  (c).
    18     Section 1714.  Farmland Preservation.--The Department of
    19  Agriculture shall have the power, and its duty shall be:
    20     (a)  To institute and administer a Statewide program for the
    21  purchase of conservation easements on land within agricultural
    22  security areas, as determined by the act of June 30, 1981
    23  (P.L.128, No.43), known as the "Agricultural Area Security Law";
    24     (b)  To encourage county participation in the funding of
    25  conservation easement purchases and the creation of county
    26  programs;
    27     (c)  To maintain a registry of lands preserved through the
    28  acquisition of conservation easements;
    29     (d)  To incur indebtedness, or to secure funds for
    30  conservation easement in any fashion permitted by law;
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     1     (e)  To explore alternative programs and methods for
     2  preserving farmland resources.
     3     Section 1715.  State Agricultural Land Preservation Board.--
     4  (a)  The State Agricultural Land Preservation Board shall
     5  exercise the powers and perform the duties imposed on it and on
     6  the Agricultural Lands Condemnation Approval Board by the act of
     7  June 30, 1981 (P.L.128, No.43), known as the "Agricultural Area
     8  Security Law."
     9     (b)  Before condemning for any of the purposes set forth in
    10  subsection (d) any agricultural lands, as classified by the
    11  Agricultural Soil Conservation Service of the United States
    12  Department of Agriculture, which lands are being used for
    13  productive agricultural purposes, but not including the growing
    14  of timber, the Commonwealth and any of its political
    15  subdivisions, agencies or authorities shall require the State
    16  Agricultural Land Preservation Board to determine that there is
    17  no reasonable and prudent alternative to the utilization of such
    18  lands for the project.
    19     (c)  The board shall have sixty days in which to determine
    20  whether there is a feasible and prudent alternative to the
    21  condemnation. If the board determines that there is no feasible
    22  and prudent alternative, or if the board fails to act within
    23  sixty days of receipt of the request, the requesting body may
    24  proceed to condemn; otherwise, the condemnation shall not be
    25  effected.
    26     (d)  The board shall have jurisdiction over condemnation for
    27  the following purposes:
    28     (1)  Highway purposes, but not including activities relating
    29  to existing highways such as, but not limited to, widening
    30  roadways, the elimination of curves or reconstruction.
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     1     (2)  Disposal of solid or liquid waste material, but not
     2  including underground pipes used to transport waste.
     3     Section 7.  Sections 1923-A and 1925-A of the act are
     4  repealed.
     5     Section 8.  The act is amended by adding an article to read:
     6                           ARTICLE XXIV-B
     7                      GOVERNMENT PRIVATIZATION
     8                    (a) Privatization Generally
     9     Section 2401-B.  Short Title of Article.--This article shall
    10  be known and may be cited as the "Pennsylvania Government
    11  Privatization Act."
    12     Section 2402-B.  Declaration of Policy.--The General Assembly
    13  finds and declares that the inherent rights of the citizens of
    14  this Commonwealth, as protected by their Constitution, are best
    15  fostered when State government is limited in its role to the
    16  provision of services that are essential to government.
    17  Government should not engage in activities that exceed its
    18  appropriate responsibilities, nor should government engage in
    19  activity in competition with private enterprise unless there is
    20  an overriding public interest which is served by the provision
    21  of a particular service by the government. The General Assembly
    22  further finds and declares that:
    23     (1)  State government has expanded beyond its appropriate
    24  scope of activity;
    25     (2)  this growth of State government activity has greatly
    26  outpaced the ability of Commonwealth taxpayers to support it;
    27     (3)  the essential functions of State government are
    28  competing for increasingly scarce resources;
    29     (4)  the tax burden on Commonwealth citizens can be
    30  controlled and the level of State expenditures can be reduced
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     1  through a process of defining and restructuring State
     2  governmental activities and responsibilities; and
     3     (5)  a careful study and review of State government agencies
     4  and activities is needed in order to determine which of their
     5  objectives can be more appropriately and efficiently fulfilled
     6  through alternative means.
     7     Section 2403-B.  Definitions.--The following words and
     8  phrases when used in this article shall have the meanings given
     9  to them in this section unless the context clearly indicates
    10  otherwise:
    11     "Activity" means an organized function of State government
    12  undertaken by an agency as a result of a statute or regulation,
    13  or by an order or directive of the Governor.
    14     "Agency" means a department, authority, board, commission or
    15  agency of the Commonwealth.
    16     "Contracting" means the entering into agreements by the
    17  Commonwealth with private enterprise for the provision of goods
    18  or services.
    19     "Divestiture" means the elimination, in whole or in part, of
    20  a nonessential government activity, which includes any activity
    21  that need not be performed by the Commonwealth and that can be
    22  fully discharged and shed as a governmental activity.
    23     "Franchise" means a form of contracting that gives monopoly
    24  privileges to a private enterprise in order to provide a
    25  government service in a given geographical area.
    26     "Private enterprise" means an individual, firm, partnership,
    27  joint venture, corporation, association or other legal entity
    28  engaged in the manufacturing, processing, sale, offering for
    29  sale, rental, leasing, delivery, dispensing, distributing or
    30  advertising of goods or services for profit.
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     1     "Privatize" means to act in concert with private enterprise
     2  to reduce State government to essential activities through
     3  contracting, grants and subsidies, franchises, asset sales or
     4  divestiture.
     5     Section 2404-B.  Privatization Activity Report.--(a)  The
     6  Governor shall, within six months of the enactment of this
     7  article, present to the General Assembly a report which
     8  inventories current activities of Commonwealth agencies
     9  involving contracts or franchises with private enterprise. In
    10  subsequent years this report shall be presented in conjunction
    11  with the Governor's annual budget presentation.
    12     (b)  The report shall contain, on an agency-by-agency basis,
    13  a listing of all contracts for services provided by private
    14  enterprises, including the name of the private enterprise, a
    15  description of the service rendered, the contracted amount for
    16  the service and the length of the contract.
    17     Section 2405-B.  Duties of Agencies.--Every department,
    18  board, commission, authority or other State agency shall
    19  promptly furnish such information as the Governor shall request
    20  as to its activities in order to complete the inventory required
    21  under section 2404-B.
    22     Section 2406-B.  Presumption.--In the absence of documentable
    23  evidence to the contrary, an activity of a State agency which is
    24  contained in section 2407-B shall be assumed to be a candidate
    25  for privatization. It shall be the responsibility of the
    26  Governor and the various departments and agencies of State
    27  government to recommend to the General Assembly steps to
    28  implement activities to reduce the size and functions of State
    29  government.
    30     Section 2407-B.  Activities Subject to Contracting.--The
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     1  following activities, to the extent that they are not already
     2  privatized, shall be contracted, unless the Governor shows cause
     3  why they should not be:
     4     (1)  General government operations (all agencies, as
     5  applicable):
     6     (i)  building maintenance and custodial services;
     7     (ii)  data management;
     8     (iii)  printing and graphic services;
     9     (iv)  computer maintenance;
    10     (v)  building security (except the Capitol Complex);
    11     (vi)  transcript typing services;
    12     (vii)  courier services;
    13     (viii)  data collection;
    14     (ix)  office renovation and moving services;
    15     (x)  photographic services;
    16     (xi)  education programs;
    17     (xii)  technical consultants and technical assistance;
    18     (xiii)  claims adjusting;
    19     (xiv)  mail services;
    20     (xv)  workmen's compensation administration; and
    21     (xvi)  facility and property management.
    22     (2)  Department of Agriculture:
    23     (i)  egg inspections;
    24     (ii)  livestock grading; and
    25     (iii)  testing.
    26     (3)  Civil Service:
    27     (i)  testing;
    28     (ii)  training; and
    29     (iii)  arbitration.
    30     (4)  Department of Commerce:
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     1     (i)  advertising.
     2     (5)  Department of Corrections:
     3     (i)  medical and dental services;
     4     (ii)  drug treatment;
     5     (iii)  diagnostic testing;
     6     (iv)  inmate transportation;
     7     (v)  refuse removal;
     8     (vi)  pharmacy operations;
     9     (vii)  optometric services;
    10     (viii)  inmate education;
    11     (ix)  halfway houses;
    12     (x)  food and laundry services;
    13     (xi)  mental health services; and
    14     (xii)  vocational counseling.
    15     (6)  Department of Education:
    16     (i)  testing materials and analysis; and
    17     (ii)  bibliographic services.
    18     (7)  Department of Environmental Resources:
    19     (i)  laboratory testing services;
    20     (ii)  permit reviews;
    21     (iii)  hazardous waste cleanup;
    22     (iv)  laboratory analysis; and
    23     (v)  asbestos removal.
    24     (8)  Department of General Services:
    25     (i)  electrical services;
    26     (ii)  painting services;
    27     (iii)  landscaping and groundskeeping;
    28     (iv)  plumbing services;
    29     (v)  elevator maintenance and repair services;
    30     (vi)  heating and air conditioning mechanical maintenance and
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     1  repair services;
     2     (vii)  land appraising and boundary surveying;
     3     (viii)  pest control;
     4     (ix)  snow removal; and
     5     (x)  fleet management and maintenance.
     6     (9)  Department of Health:
     7     (i)  drug and alcohol abuse programs;
     8     (ii)  AIDS programs;
     9     (iii)  environmental health programs;
    10     (iv)  lead poisoning programs;
    11     (v)  health facilities; and
    12     (vi)  research.
    13     (10)  Insurance Department:
    14     (i)  actuarial reviews.
    15     (11)  Department of Labor and Industry:
    16     (i)  vocational training;
    17     (ii)  job training; and
    18     (iii)  services for the disabled.
    19     (12)  Department of Public Welfare:
    20     (i)  mental health programs;
    21     (ii)  medical assistance;
    22     (iii)  health facilities;
    23     (iv)  welfare services;
    24     (v)  claims processing for medical assistance;
    25     (vi)  audits;
    26     (vii)  food stamp issuance; and
    27     (viii)  accreditation of life care facilities.
    28     (13)  Department of Revenue:
    29     (i)  debt collection.
    30     (14)  Department of State:
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     1     (i)  microfilming; and
     2     (ii)  professional examinations.
     3     (15)  Department of Transportation.
     4     (i)  highway maintenance;
     5     (ii)  design and planning;
     6     (iii)  highway construction; and
     7     (iv)  rest area maintenance.
     8     Section 2408-B.  Procedure.--(a)  The Department of General
     9  Services shall be responsible for overseeing the implementation
    10  of this article. The department shall distribute to all
    11  agencies, not later than ninety days after the effective date of
    12  this article and not later than the first day of August of each
    13  year thereafter, a request to compile information on activities
    14  or functions which each agency has determined can be performed
    15  by the private sector either by franchise, contract, divestiture
    16  or other means determined to be the most effective to rid that
    17  agency of a function.
    18     (b)  Agencies shall send to the Department of General
    19  Services, not later than one hundred twenty days after the
    20  effective date of this article and not later than the first day
    21  of September of each year thereafter, completed annual
    22  privatization surveys. These surveys shall include the results
    23  of the analysis performed by each agency according to the
    24  requirements established in section 2409-B.
    25     (c)  The Department of General Services shall be responsible
    26  for compiling the results of these surveys and the preparation
    27  of a report to be presented by the Governor to the General
    28  Assembly in conjunction with the annual submission of the
    29  budget.
    30     Section 2409-B.  Responsibilities of State Agencies.--(a)
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     1  Every executive agency of State government under the control of
     2  the Governor shall be responsible for analyzing the functions
     3  performed by that agency to determine whether it is cost
     4  effective for that agency to reduce or eliminate functions by
     5  returning the delivery of these services to the private sector.
     6     (b)  In order to perform the analysis required under this
     7  section, each agency shall be required to prepare requests for
     8  proposals to be issued to the private sector which invite
     9  private companies and individuals to indicate whether they have
    10  the capability to perform a particular function and the amount
    11  for which the bidder determines it can perform the service or
    12  function.
    13     (c)  If the agency has a responsible bidder to perform a
    14  function at a cost less than the cost currently paid by the
    15  agency to perform the function as a State function, the agency
    16  shall consider the function eligible for privatization. If the
    17  bids for the service provision are greater than the cost of the
    18  program as currently performed by the agency, the function shall
    19  not be considered eligible for private contracting and the
    20  agency shall make note of that fact in the response required
    21  under section 2408-B.
    22                (b) Private Correctional Facilities
    23     Section 2421-B.  Short Title of Subdivision.--This
    24  subdivision shall be known and may be cited as the "Private
    25  Correctional Facilities Act."
    26     Section 2422-B.  Declaration of Policy.--The General Assembly
    27  finds and declares as follows:
    28     (1)  The incarceration of prisoners is primarily a government
    29  function.
    30     (2)  The private sector, which has demonstrated an ability to
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     1  provide government services in an efficient and innovative
     2  manner, may serve a valuable role in helping the government
     3  operate its corrections system.
     4     (3)  The private sector can best serve the corrections system
     5  of the Commonwealth by operating minimum security private
     6  correctional facilities for the incarceration of low-risk
     7  offenders sentenced to a term of imprisonment in a State prison.
     8     Section 2423-B.  Definitions.--The following words and
     9  phrases when used in this subdivision shall have the meanings
    10  given to them in this section unless the context clearly
    11  indicates otherwise:
    12     "Contract monitor" means an employe of the Department of
    13  Corrections who shall be assigned to the private correctional
    14  facility or facility where private security services are
    15  provided.
    16     "Department" means the Department of Corrections of the
    17  Commonwealth.
    18     "Private contractor" means a person who owns or operates a
    19  private correctional facility.
    20     "Private contractor for security services" means a private
    21  contractor who provides security services to a correctional
    22  facility owned by the Department of Corrections.
    23     "Private correctional facility" means an adult correctional
    24  facility for the incarceration of low-risk offenders, owned or
    25  operated by a private contractor.
    26     "Security services" means the provision of corrections
    27  officers.
    28     Section 2424-B.  Facilities and Services.--(a)  The
    29  Commonwealth may enter into contracts with private contractors
    30  in accordance with this subdivision.
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     1     (b)  No private correctional facility licensed under this
     2  subdivision may incarcerate inmates from states other than this
     3  Commonwealth.
     4     Section 2425-B.  Licensure.--(a)  Private contractors
     5  operating within this Commonwealth must hold a valid license
     6  issued by the department.
     7     (b)  The department shall have the authority to establish
     8  criteria for licensure under this section.
     9     (c)  Licenses issued by the department shall be on a form
    10  prescribed by the department, shall not be transferable, shall
    11  be issued only for the private correctional facilities or
    12  contracted-for private security services named in the
    13  application and shall specify the maximum number of individuals
    14  who may be housed in the facility at one time. The license shall
    15  be posted in a conspicuous place on the licensee's premises.
    16     (d)  Licenses and inspection fees shall be established by the
    17  department.
    18     Section 2426-B.  Contracts.--(a)  Contracts executed under
    19  this subdivision shall include the following terms:
    20     (1)  The posting of an adequate performance bond by the
    21  private contractor.
    22     (2)  Proof of adequate insurance.
    23     (3)  A requirement that the private contractor comply with
    24  regulations of the department and with this subdivision.
    25     (4)  A requirement of contract approval by the Attorney
    26  General.
    27     (5)  A plan developed by the private contractor detailing all
    28  aspects of operations in the private correctional facility or in
    29  the provision of security services.
    30     (6)  A requirement of annual contract review by the Attorney
    19910H2239B2817                 - 17 -

     1  General.
     2     (7)  Proof that the private contractor holds a license issued
     3  by the department.
     4     (8)  A requirement of access by the department to all records
     5  of the private contractor.
     6     (9)  A requirement that the department provide a contract
     7  monitor at the private correctional facility or facility where
     8  private security services are provided.
     9     (b)  Contracts must be approved by the Attorney General.
    10  Contract approval shall be conditioned upon all of the
    11  following:
    12     (1)  The private contractor's assumption of liability caused
    13  by or arising out of all aspects of the ownership or operation
    14  of the private correctional facility or the provision of
    15  security services, including, but not limited to, escape or
    16  other emergency situations, legal fees and damage awards,
    17  involving the private contractor and the Commonwealth.
    18     (2)  Liability insurance covering the private contractor and
    19  its officers, employes and agents in an amount sufficient to
    20  cover liability arising out of the ownership or operation of a
    21  private correctional facility or the provision of security
    22  services. A copy of the proposed insurance policy for the first
    23  year shall be submitted for approval with the contract.
    24     (c)  Disapproval of a contract may be based on any reasonable
    25  grounds, including, but not limited to, the following:
    26     (1)  Inadequacy or inappropriateness of the proposed plan of
    27  operation.
    28     (2)  Failure to meet department regulations.
    29     (3)  Unsuitability of the proposed private contractor or its
    30  employes.
    19910H2239B2817                 - 18 -

     1     (4)  Absence of required or desired contract provisions.
     2     (5)  Unavailability of adequate funds.
     3     (6)  Lack of proof of appropriate insurance.
     4     (7)  Absence of licensure by the department.
     5     (d)  Contracts executed under this subdivision shall provide
     6  for termination for cause by the Commonwealth upon ninety days'
     7  notice to the private contractor. Termination shall be allowed
     8  for reasons which include, but are not limited to, the
     9  following:
    10     (1)  Failure to be licensed or to comply with regulations of
    11  the department.
    12     (2)  Failure to meet other contract provisions.
    13     (3)  Failure to meet the provisions of this subdivision.
    14     Section 2427-B.  Duties of Contract Monitor.--The contract
    15  monitor shall have the duty to:
    16     (1)  Monitor compliance of the private contractor with terms
    17  of the contract.
    18     (2)  Supervise the administration of misconducts, discipline
    19  and earned time within the correctional facility.
    20     (3)  Coordinate prerelease and parole release functions.
    21     Section 2428-B.  Maximum Capacity of Facility.--A private
    22  correctional facility may not exceed a capacity of two hundred
    23  fifty inmates.
    24     Section 2429-B.  Police Power.--Security personnel employed
    25  by private contractors shall be deemed peace officers under
    26  section 2.1 of the act of May 16, 1921 (P.L.579, No.262),
    27  referred to as the County Prison Board Law.
    28     Section 2430-B.  Labor Disputes.--(a)  (1)  A private
    29  contractor shall notify the department sixty days prior to the
    30  termination of a labor contract.
    19910H2239B2817                 - 19 -

     1     (2)  A private contractor shall notify the department
     2  immediately upon learning of a potential or impending strike.
     3     (b)  In the event of a strike, the department shall assume
     4  operation of the private correctional facility and shall use
     5  Commonwealth emergency resources necessary to operate the
     6  facility until the strike has ended. Costs incurred by the
     7  Commonwealth and the department shall be reimbursed by the
     8  private contractor.
     9     Section 2431-B.  Emergencies.--(a)  Upon the occurrence of an
    10  escape of an inmate or upon a violent disturbance within a
    11  private correctional facility or a facility using private
    12  security services, the facility shall immediately notify the
    13  local police within the county and the Pennsylvania State
    14  Police.
    15     (b)  Upon the occurrence of an emergency in a private
    16  correctional facility or a facility using private security
    17  services, the department shall have the authority to enter and
    18  control the facility until the emergency ends.
    19     (c)  Costs incurred by the Commonwealth, the department or a
    20  county shall be reimbursed by the private contractor.
    21     Section 2432-B.  Inspections.--(a)  The department shall
    22  annually inspect private correctional facilities and facilities
    23  using private security services to insure compliance with its
    24  regulations. The department shall submit a written report on the
    25  findings of its inspection to the private contractor within
    26  sixty days of the inspection. The private contractor shall be
    27  given a reasonable period of time within which to correct
    28  deficiencies or to come into compliance with the applicable
    29  regulations. If the private contractor does not come into
    30  compliance with the applicable regulations, the department may
    19910H2239B2817                 - 20 -

     1  revoke its license after a hearing under 2 Pa.C.S. Ch. 5 Subch.
     2  A (relating to practice and procedure of Commonwealth agencies)
     3  and Ch. 7 Subch. A (relating to judicial review of Commonwealth
     4  agency action).
     5     (b)  Personnel of the department or other administrative
     6  agencies authorized by the Secretary of Corrections to inspect
     7  correctional facilities may enter a private correctional
     8  facility unannounced at any time to investigate any facet of the
     9  operation of a private correctional facility.
    10     Section 2433-B.  Regulations.--The department shall, within
    11  six months of the effective date of this section, promulgate
    12  regulations for the provision and operation of private
    13  correctional facilities and for the provision of private
    14  security services. The regulations shall include, but not be
    15  limited to:
    16     (1)  Security requirements, including staffing levels and
    17  emergency plans.
    18     (2)  Minimum standards for the care of inmates, procedures
    19  for misconduct adjudication and disposition, visitation
    20  policies, the provision of medical and mental health services,
    21  treatment and education programs.
    22     (3)  A program of training and certification for corrections
    23  officers employed by private contractors. Cost of training shall
    24  be paid by the private contractor.
    25     Section 2434-B.  Violations of Contract.--(a)  If the
    26  department learns of a violation of a contract by a private
    27  contractor, it shall immediately give written notice to the
    28  Commonwealth, the private contractor and the Attorney General.
    29  Violation of the contract shall be grounds for termination of
    30  the contract under section 2426-B(d).
    19910H2239B2817                 - 21 -

     1     (b)  Notice to the private contractor shall require action to
     2  bring the facility into compliance with the relevant contractual
     3  provision in the time period determined by the department.
     4     Section 2435-B.  License Revocation.--(a)  The department
     5  shall, by regulation, establish procedures for revocation of a
     6  license under this subdivision to include provisions for notice
     7  and hearing under 2 Pa.C.S. Ch. 5 Subch. A (relating to practice
     8  and procedure of Commonwealth agencies).
     9     (b)  Grounds for revocation include, but are not limited to:
    10     (1)  Violation of this subdivision or regulations of the
    11  department.
    12     (2)  Fraud or misrepresentation.
    13     (3)  Failure to maintain adequate insurance.
    14     (4)  Gross incompetence or negligence.
    15     (5)  Moral turpitude.
    16     (6)  Violation of other laws of this Commonwealth.
    17     (7)  Violation of the civil rights of an individual inmate.
    18     (8)  Failure to comply with official inspection reports of
    19  the department under section 2437-B(a).
    20     Section 2436-B.  Criminal Penalty.--A private contractor who
    21  operates a private correctional facility or provides private
    22  security services in this Commonwealth without a license under
    23  section 2425-B commits a misdemeanor of the first degree and
    24  shall, upon conviction, be sentenced to pay a fine of ten
    25  thousand dollars ($10,000) and costs of prosecution or, if the
    26  private contractor fails to pay the fine, to imprisonment for
    27  not more than one year. Each day of operation of a private
    28  correctional facility or of provision of private security
    29  services without a license shall constitute a separate offense.
    30  If the private contractor is a partnership, the partners are
    19910H2239B2817                 - 22 -

     1  liable under this section. If the private contractor is a
     2  corporation or unincorporated association, the chief executive
     3  officer is liable under this section.
     4     Section 2437-B.  Annual Reports.--(a)  A private contractor
     5  shall submit an annual report to the Commonwealth with which it
     6  has a contract.
     7     (b)  The department shall submit to the General Assembly an
     8  annual report on the status of private contractors in this
     9  Commonwealth, including problems related to private contractors.
    10     Section 2438-B.  Other Statutes.--Private correctional
    11  facilities are deemed to be correctional institutions for
    12  purposes of Title 18 of the Pennsylvania Consolidated Statutes
    13  (relating to crimes and offenses) and Title 42 of the
    14  Pennsylvania Consolidated Statutes (relating to judiciary and
    15  judicial procedure) and are deemed to be prisons for purposes of
    16  the act of July 11, 1923 (P.L.1044, No.425), referred to as the
    17  Prisoner Transfer Law. Other statutes relating to
    18  penitentiaries, prisons, workhouses, houses of corrections and
    19  institutions for prisoners shall apply to private correctional
    20  facilities to the extent necessary to carry out the intent and
    21  provisions of this subdivision.
    22                 (c) Privatization of Youth Centers
    23     Section 2451-B.  Definitions.--The following words and
    24  phrases when used in this subdivision shall have the meanings
    25  given to them in this section unless the context clearly
    26  indicates otherwise:
    27     "Court" means the court of common pleas of the committing
    28  county.
    29     "Department" means the Department of Public Welfare of the
    30  Commonwealth.
    19910H2239B2817                 - 23 -

     1     "Youth center" means any incorporated or unincorporated
     2  organization, society, corporation or agency, public or private,
     3  which may receive or care for delinquent minors, either at
     4  board, wages or free; or any individual who for hire, gain or
     5  reward receives for care a child, unless he is related to such
     6  child by blood or marriage within second degree. The term shall
     7  include, but not be limited to, a youth development center and a
     8  youth forestry center. The term shall not include a family day-
     9  care home in which care is provided in lieu of parental care to
    10  six or less children for part of a twenty-four-hour day.
    11     Section 2452-B.  Custody and Supervision.--(a)  Juveniles
    12  committed to a youth center shall be in the custody of the
    13  department. The department shall assure that proper care,
    14  guidance and control are provided for those minors under
    15  eighteen yeas of age committed under 42 Pa.C.S. Ch. 63 (relating
    16  to juvenile matters). Such minors may remain committed until
    17  they attain twenty-one years of age.
    18     (b)  All youth centers shall be supervised by the department.
    19  Juveniles committed to a youth center shall remain under the
    20  supervision of the court.
    21     (c)  Whenever, in the judgment of the department, the
    22  rehabilitation of a committed minor will be served by his full
    23  or partial employment off the grounds of a youth center, the
    24  department may consent to such employment: Provided, That the
    25  terms of the employment do not violate applicable labor or wage
    26  laws and that the minor returns to the center or his foster
    27  boarding home each day after work.
    28     (d)  Whenever, in the judgment of the department, a committed
    29  minor is ready for release, but is in need of continuing
    30  counseling from the youth center, the superintendent shall so
    19910H2239B2817                 - 24 -

     1  advise the court. If the court approves, the minor shall be
     2  released and the youth center shall provide counseling to the
     3  minor until the court approves the discontinuance of the
     4  counseling or the discharge of the minor.
     5     Section 2453-B.  Operation of Facilities.--(a)  The
     6  department shall divest itself of the actual operation of all
     7  State-owned and State-maintained youth development centers,
     8  including those centers located at Bensalem, New Castle,
     9  Loysville, Danville and Embreeville. The ownership of said
    10  facilities may remain with the Commonwealth. However, the
    11  department shall contract with private contractors for operation
    12  of said facilities.
    13     (b)  Private contractors operating within this Commonwealth
    14  must hold a valid license issued by the department, pursuant to
    15  Article IX of the act of June 13, 1967 (P.L.31, No.21), known as
    16  the "Public Welfare Code."
    17     Section 2454-B.  Contracts.--(a)  Contracts executed under
    18  this subdivision shall include the following terms:
    19     (1)  The posting of an adequate performance bond by the
    20  private contractor.
    21     (2)  Proof of adequate insurance.
    22     (3)  A requirement that the private contractor comply with
    23  regulations of the department and with this act.
    24     (4)  A plan developed by the private contractor detailing all
    25  aspects of operations in the youth center.
    26     (5)  A requirement of annual contract review by the
    27  department.
    28     (6)  Proof that the private contractor holds a license issued
    29  by the department.
    30     (7)  A requirement of access by the department to all records
    19910H2239B2817                 - 25 -

     1  of the private contractor.
     2     (8)  A requirement that the department provide a contract
     3  monitor at the youth center.
     4     (9)  A requirement for the first year of the contract that
     5  the private contractor shall employ all current Commonwealth
     6  youth center employes. Employes may only be dismissed for cause.
     7     (10)  A requirement that all civil service policies, such as
     8  affirmative action and due process, are carried out by the
     9  provider.
    10     (11)  A provision that the determination as to which
    11  delinquent minors will be placed at the respective youth centers
    12  shall be at the discretion of the court and not the contractor.
    13     (12)  A provision that youth centers may not accept custody
    14  of delinquents placed by a court outside of this Commonwealth.
    15     (b)  Contracts shall be conditioned upon all of the
    16  following:
    17     (1)  The private contractor's assumption of liability caused
    18  by or arising out of all aspects of operation of youth centers.
    19     (2)  A provision of security services, including, but not
    20  limited to, escape or other emergency situations, legal fees and
    21  damage awards, involving the private contractor and the
    22  department.
    23     (3)  Liability insurance covering the private contractor and
    24  its officers, employes and agents in an amount sufficient to
    25  cover liability arising out of the operation of the youth
    26  center. A copy of the proposed insurance policy for the first
    27  year shall be submitted for approval with the contract.
    28     (c)  Disapproval of a contract may be based on any reasonable
    29  grounds, including, but not limited to, the following:
    30     (1)  Inadequacy or inappropriateness of the proposed plan of
    19910H2239B2817                 - 26 -

     1  operation.
     2     (2)  Failure to meet department regulations.
     3     (3)  Unsuitability of the proposed private contractor or its
     4  employes.
     5     (4)  Absence of required or desired contract provisions.
     6     (5)  Unavailability of adequate funds.
     7     (6)  Lack of proof of appropriate insurance.
     8     (7)  Absence of licensure by the department.
     9     (d)  Contracts executed under this subdivision shall provide
    10  for termination for cause by the Commonwealth upon ninety days'
    11  notice to the private contractor. Termination shall be allowed
    12  for reasons which include, but are not limited to, the
    13  following:
    14     (1)  Failure to be licensed or to comply with regulations of
    15  the department.
    16     (2)  Failure to meet other contract provisions.
    17     (3)  Failure to meet the provisions of this act.
    18     Section 2455-B.  Contract Monitor.--The contract monitor
    19  shall:
    20     (1)  Monitor compliance of the private contractor with terms
    21  of the contract.
    22     (2)  Supervise the administration, well-being and general
    23  welfare of children committed to youth centers.
    24     (3)  Insure that adequate social services, facilities for
    25  rehabilitation, care, guidance and control are maintained.
    26     Section 2456-B.  Labor Disputes.--(a)  (1)  A private
    27  contractor shall notify the department sixty days prior to the
    28  termination of a labor contract.
    29     (2)  A private contractor shall notify the department
    30  immediately upon learning of a potential or impending strike.
    19910H2239B2817                 - 27 -

     1     (b)  In the event of a strike, the department shall assume
     2  operation of the youth center and shall use Commonwealth
     3  resources necessary to operate the facility until the strike has
     4  ended. Costs incurred by the Commonwealth or the department
     5  shall be reimbursed by the private contractor.
     6     Section 2457-B.  Emergencies.--(a)  Upon the occurrence of an
     7  escape of a delinquent at a secured youth center facility, the
     8  facility shall immediately notify the local police within the
     9  county.
    10     (b)  Upon the occurrence of an emergency in a youth center,
    11  the department shall have the authority to enter and control the
    12  facility until the emergency ends.
    13     (c)  Costs incurred by the Commonwealth or the department
    14  shall be reimbursed by the private contractor.
    15     Section 2458-B.  Rules and Regulations.--The department
    16  shall, within six months of the effective date of this
    17  subdivision, promulgate rules and regulations for the provisions
    18  and operation of youth centers. These regulations shall include,
    19  but not be limited to:
    20     (1)  Staffing levels and emergency plans.
    21     (2)  Security requirements at a secured youth center.
    22     (3)  Minimum standards for the care, guidance and control of
    23  children committed to a youth center.
    24              (d) Public Transportation Privatization
    25     Section 2461-B.  Declaration of Policy.--The General Assembly
    26  finds and declares that:
    27     (1)  Public transportation services are provided to assist
    28  the transit-dependent and the poor, to relieve congestion and to
    29  minimize automobile pollution.
    30     (2)  Protection of consumers, public transit riders and
    19910H2239B2817                 - 28 -

     1  taxpayers requires that public transportation service be
     2  provided at the lowest possible cost consistent with service and
     3  safety standards.
     4     (3)  Private transportation providers have been used under
     5  competitive contracts to provide public transportation services
     6  at lower costs and with lower annual cost increases.
     7     (4)  Decisions on whether a public transportation service
     8  should be operated by a public agency or a private company
     9  should be made on economic considerations rather than on
    10  institutional considerations.
    11     (5)  Obtaining cost-effective public transportation services
    12  requires a competitive environment and a mechanism for
    13  competitive contracting of such services.
    14     (6)  Facilities and vehicles purchased for public
    15  transportation service are public assets which are held in the
    16  public trust for service to public transit riders and the
    17  taxpayers.
    18     Section 2462-B.  Definitions.--The following words and
    19  phrases when used in this subdivision shall have the meanings
    20  given to them in this section unless the context clearly
    21  indicates otherwise:
    22     "Attributable fully allocated cost" means the operating and
    23  capital cost of a public transportation service, including the
    24  direct costs of driver labor and benefits based upon actual
    25  driver work assignments for the service, and a reasonable
    26  allocation of costs for replacement and spare drivers and all
    27  other costs of providing and administering transportation and
    28  maintenance for the service, minus the cost of any function not
    29  to be contracted for competitively.
    30     "Department" means the Department of Transportation of the
    19910H2239B2817                 - 29 -

     1  Commonwealth.
     2     "Public transit operator" means a public agency which:
     3     (1)  provides or sponsors public transportation service on
     4  fixed routes in an area that includes an entire city of the
     5  first or second class; and
     6     (2)  receives a public subsidy.
     7     Section 2463-B.  Competitive Proposal Requirement.--(a)  On
     8  an annual basis, each public transit operator shall seek
     9  competitive proposals on at least ten percent (10%) of its
    10  existing fixed-route bus service and on an amount of fixed-route
    11  bus service equivalent to any increase in its fixed-route bus
    12  service in the next year. The annual competitive proposal
    13  requirement shall be met only by the requests for proposal for
    14  services not currently operated under competitive proposals. The
    15  annual competitive proposal requirement shall be based upon the
    16  annual vehicle miles for the latest fiscal year for which
    17  information is available.
    18     (b)  (1)  The competitive contracting required under this
    19  section shall be accomplished through attrition of the full-time
    20  drivers and mechanics in the employ of the public transit
    21  operator on the effective date of this subdivision. A public
    22  transit operator may hire new permanent drivers and mechanics
    23  only to the extent necessary to operate services that the public
    24  transit operator has been awarded through competitive proposals.
    25     (2)  Fixed-route bus services operated under competitive
    26  proposals on the effective date of this article or thereafter
    27  shall be subject to a new competitive proposal at least every
    28  five years. A service operated under competitive proposal may
    29  not be returned to operation not subject to competitive
    30  proposal. Renewal options that extend a contract beyond five
    19910H2239B2817                 - 30 -

     1  years are prohibited.
     2     (3)  Each public transit operator shall determine the routes,
     3  schedules and fares included in requests for proposal.
     4     (4)  Savings obtained through competitive service provision
     5  shall be used only for consumer benefit, including increased
     6  service levels, reduced passenger fares, new capital facilities
     7  and reduction of public transportation subsidies.
     8     (5)  Each public transit operator shall make buses purchased
     9  after the effective date of this article available for operation
    10  under competitive proposals by private transportation providers
    11  under lease.
    12     (6)  Each public transit operator shall maintain a list of
    13  interested proposers, which shall include all organizations that
    14  have requested inclusion on the list. The public transit
    15  operator shall advertise for additions to the interested
    16  proposers list at least annually in accordance with its general
    17  procurement policy.
    18     (7)  Each public transit operator may replace service with
    19  alternative service provision methods through competitive
    20  proposals if the public transit operator finds the alternative
    21  service methods to be in the public interest.
    22     (8)  Each public transit operator may execute standby
    23  competitive contracts with private transportation providers to
    24  operate service on an interim basis in the event that the public
    25  transit operator determines the operation to be required by the
    26  public welfare. Service operated under a standby contract shall
    27  be subject to competitive proposal within six months of standby
    28  contract service commencement.
    29     Section 2464-B.  Standards and Requirements.--(a)  Within six
    30  months of the effective date of this subdivision, each public
    19910H2239B2817                 - 31 -

     1  transit operator shall promulgate reasonable standards with
     2  respect to experience, safety records and financial
     3  responsibility by which private transportation providers can be
     4  qualified to provide bus services under this subdivision.
     5  Standards shall not be designed to restrict the number of
     6  eligible participants in the competitive proposal process.
     7     (b)  Within six months of the effective date of this
     8  subdivision, each public transit operator shall prepare a
     9  standard form of agreement to provide bus services. The contract
    10  shall include:
    11     (1)  Reasonable passenger comfort, safety and vehicle
    12  maintenance standards.
    13     (2)  Standards for access to bus services for persons with
    14  disabilities, which shall be as specified in the public transit
    15  operator's plan for such services.
    16     (3)  Standards for training and safety records to be required
    17  of drivers.
    18     (4)  Requirements for reasonable insurance protecting the
    19  public transit operator from liability for the acts, negligence
    20  or omission of private transportation providers and their agents
    21  and employes.
    22     (5)  Reasonable standards for reliability and on-time
    23  performance.
    24     (6)  Reasonable penalties for inadequate performance,
    25  including the public transit operator's right to cancel
    26  contracts.
    27     (7)  Provisions and standards for the use of the public
    28  transit operator's logo, transfers, transit ways, bus stops,
    29  vehicles and other elements that are owned by the public transit
    30  operator and are appropriate for use by the private
    19910H2239B2817                 - 32 -

     1  transportation providers under contract to the public transit
     2  operator.
     3     (c)  A public transit operator may not establish a
     4  requirement relating to the wages, benefits or union
     5  organization of contractor employes. Contractors shall comply
     6  with, and must give adequate certification of compliance with,
     7  applicable Federal and State labor laws.
     8     (d)  No change in contract payment amount to a private
     9  transportation provider may be made except as specified in the
    10  contract. Payment changes in a contract shall be limited to
    11  indices, escalators, deflators, changes in service level and
    12  other expressly stated or calculable amounts, consistent with
    13  the request for proposal and with the proposal of the private
    14  transportation provider awarded the contract.
    15     (e)  Contract expiration dates shall be rotated to the
    16  maximum extent feasible to minimize the number of contract
    17  awards under consideration at any particular time.
    18     Section 2465-B.  Requests for Proposals.--(a)  A request for
    19  proposals shall specify the route, service frequency and fares,
    20  as determined by the public transit operator.
    21     (b)  The public transit operator shall seek the widest
    22  reasonable distribution of requests for proposals and, at a
    23  minimum, shall send requests for proposals to each organization
    24  on the interested proposers list and to each additional
    25  organization which requests the specific request for proposal.
    26     (c)  The public transit operator shall advertise requests for
    27  proposals within ten days in accordance with its general
    28  procurement policy. Proposals shall be required not less than
    29  forty-five days from the advertisement date.
    30     (d)  Contracts shall provide that services commence within
    19910H2239B2817                 - 33 -

     1  one hundred twenty days of the deadline for proposals.
     2     (e)  Requests for proposals shall be limited to the least
     3  amount of service as may be commercially practicable so that the
     4  largest possible number of private transportation providers may
     5  respond. No single request for proposal may include more than
     6  the greater of either:
     7     (1)  three percent (3%) of the public transit operator's
     8  weekday peak period requirement; or
     9     (2)  a fifteen-bus peak requirement.
    10     (f)  A qualified private transportation provider may respond
    11  to a request for proposals. Each public transit operator shall
    12  ensure that enterprises defined as disadvantaged businesses in
    13  49 CFR Part 23 have the greatest possible opportunity to
    14  respond.
    15     (g)  With respect to a request for proposals, the public
    16  transit operator shall award the contract to the private
    17  transportation provider or public transit operator whose
    18  responsible and responsive proposal offers the lowest cost.
    19     (h)  (1)  No private transportation provider may aggregately
    20  award contracts covering:
    21     (i)  more than twenty-five percent (25%) of the annual
    22  vehicle miles of a public transit operator with a bus peak
    23  requirement of sixty or more; or
    24     (ii)  more than a fifteen-bus peak of a public transit
    25  operator with a bus peak requirement of fewer than sixty.
    26     (2)  No company, or affiliate of a company, holding a
    27  contract to manage the public transit operator may submit a
    28  proposal or be awarded a contract to operate public
    29  transportation services for the public transit operator.
    30     (i)  A public transit operator may reject all proposals for
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     1  private service if the public operator can show that it can
     2  offer the same service at a cost less than any of the proposals
     3  submitted.
     4     Section 2466-B.  Public Transit Operator Proposals.--A public
     5  transit operator, including a public transit operator issuing
     6  the competitive procurement, may submit a proposal and be
     7  awarded a contract, subject to the following conditions:
     8     (1)  That it submit a sealed proposal before the advertised
     9  deadline, that the proposal not be altered after that deadline
    10  and that the proposal be publicly opened and made public at the
    11  deadline.
    12     (2)  That any labor provision assumed in the proposal either
    13  be specified in currently effective labor contracts or be
    14  executed before the proposal deadline in a written and binding
    15  agreement between the public transportation operator and the
    16  appropriate labor organization.
    17     (3)  That it take reasonable steps to ensure an objective and
    18  fair evaluation process, including prohibition of proposal
    19  evaluation participation by personnel or departments which were
    20  involved in preparing the public transportation operator's
    21  proposal.
    22     (4)  That its proposal price be not less than its
    23  attributable fully allocated cost for the service, that its
    24  proposal price not be based on part-time labor provisions or
    25  other less costly labor provisions to a greater percentage than
    26  such provisions are employed in the public transportation
    27  operator's fixed-route bus services which have not been
    28  subjected to competitive proposals and that its proposal price
    29  be consistent with currently adopted budgets and financial
    30  plans.
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     1     (5)  That it not be bound by a contract which creates or
     2  extends any form of obligation for continued employment or
     3  employe compensation, except for pension, beyond the contract
     4  expiration date under the provisions of the request for proposal
     5  for employes assigned to the service.
     6     (6)  That it be bound by the same terms, conditions and
     7  performance and other standards as would have applied to a
     8  private transportation provider awarded the contract under the
     9  request for proposal.
    10     (7)  (i)  That its costs per vehicle mile, exclusive of
    11  capital costs, for fixed-route bus services which have not been
    12  subjected to competitive proposals shall not, at any point
    13  during the contract, rise by a percentage greater than the cost
    14  per vehicle mile, exclusive of capital costs, for the
    15  competitive service in the public transit operator's proposal
    16  for the corresponding period.
    17     (ii)  Each adopted budget or budget revision and each United
    18  States Department of Transportation Urban Mass Transportation
    19  Administration Section 15 annual report shall be reviewed by the
    20  public transit operator to determine compliance with this
    21  provision.
    22     (iii)  If the public transit operator's cost performance is
    23  not in compliance with this clause, the public transit operator
    24  shall relinquish the contract; and a new request for proposal
    25  for the service shall be issued within ninety days.
    26     Section 2467-B.  Performance Audit.--Each public transit
    27  operator shall contract with an independent certified accounting
    28  firm, other than the public transit operator's regular auditor,
    29  for a neutral and unbiased performance audit to be completed and
    30  reported to the General Assembly within two years after the
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     1  effective date of this article. The performance audit shall
     2  analyze, in a fair and equitable fashion, the implementation of
     3  this article, including, but not limited to:
     4     (1)  Compliance with the competitive proposal process.
     5     (2)  Compliance with fully allocated costing requirements.
     6     (3)  The level of contract compliance by private
     7  transportation providers.
     8     (4)  The cost of compliance under clause (3) and whether
     9  costs will be recurring or may be reduced.
    10     (5)  Application of savings to consumer benefit.
    11     (6)  Taxes paid by private transportation providers.
    12     Section 2468-B.  Facilities and Vehicles.--(a)  The planning
    13  of all maintenance facilities, operations facilities and garages
    14  shall include a thorough review of competitive alternatives
    15  available for efficient development, management and operations.
    16  The planning process shall include private transportation
    17  providers. An application for funding assistance shall include a
    18  full description of alternatives reviewed.
    19     (b)  A public transit vehicle or maintenance or operating
    20  facility purchased or leased after the effective date of this
    21  article must not be encumbered by a contract which limits its
    22  use by private transportation providers in the operation of
    23  public transportation service under contract, subject to the
    24  policy control of the public transit operator.
    25     Section 2469-B.  Restrictive Agreements.--A public transit
    26  operator may not make a contract that restricts its ability to
    27  comply with this subdivision.
    28     Section 9.  Sections 2803-C, 2804-C, 2805-C, 2806-C, 2807-C,
    29  2808-C, 2809-C, 2810-C, 2811-C, 2812-C and 2813-C of the act are
    30  repealed.
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     1     Section 10.  (a)  All personnel, allocations, equipment,
     2  files, records, contracts, agreements, obligations and other
     3  materials which are used, employed or expended in connection
     4  with the powers, duties or functions heretofore exercised by the
     5  Agricultural Lands Condemnation Approval Board in connection
     6  with those responsibilities transferred by this act to the State
     7  Agricultural Land Preservation Board, as described in section
     8  1716, are hereby transferred from the Agricultural Lands
     9  Condemnation Approval Board to the State Agricultural Land
    10  Preservation Board with the same force and effect as if the
    11  appropriations had been made to and said items had been the
    12  property of the State Agricultural Land Preservation Board in
    13  the first instance and as if said contracts, agreements and
    14  obligations had been incurred or entered into by the State
    15  Agricultural Land Preservation Board.
    16     (b)  All personnel transferred pursuant to this act shall
    17  retain any civil service employment status held by said
    18  personnel.
    19     Section 11.  (a)  The following acts and parts of acts are
    20  repealed:
    21     Subarticle (d) of Article III of the act of June 13, 1967
    22  (P.L.31, No.21), known as the Public Welfare Code.
    23     Act of November 18, 1968 (P.L.1052, No.322), known as the
    24  Sewage Treatment Plant and Waterworks Operators' Certification
    25  Act.
    26     Act of July 22, 1974 (P.L.598, No.206), known as the
    27  Pennsylvania Minority Business Development Authority Act.
    28     Act of July 1, 1978 (P.L.584, No.109), known as the Milrite
    29  Act.
    30     Act of July 19, 1979 (P.L.130, No.48), known as the Health
    19910H2239B2817                 - 38 -

     1  Care Facilities Act.
     2     Act of July 8, 1986 (P.L.408, No.89), known as the Health
     3  Care Cost Containment Act.
     4     (b)  The following acts and parts of acts are repealed
     5  insofar as they are inconsistent with this act:
     6     Act of May 15, 1945 (P.L.547, No.217), known as the
     7  Conservation District Law.
     8     Section 7 of the act of December 21, 1973 (P.L.425, No.148),
     9  referred to as the Municipal Environmental Advisory Council Law.
    10     (c)  The act of June 30, 1981 (P.L.128, No.43), known as the
    11  Agricultural Area Security Law, is repealed insofar as it
    12  relates to the Agricultural Lands Condemnation Approval Board.
    13     Section 12.  This act shall take effect in 90 days.












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