THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY M. K. KELLER, AUMENT, BAKER, BEAR, BENNINGHOFF, BLOOM, BOBACK, BOYD, BROOKS, CAUSER, CHRISTIANA, CLYMER, COX, CREIGHTON, CUTLER, DELOZIER, DENLINGER, ELLIS, EVERETT, FARRY, FLECK, GABLER, GEIST, GILLESPIE, GINGRICH, GRELL, GROVE, HALUSKA, HARHART, HARPER, HARRIS, HELM, HENNESSEY, HESS, HICKERNELL, KAUFFMAN, KILLION, KNOWLES, MAJOR, MARSHALL, MARSICO, MASSER, METCALFE, MILLARD, MILLER, MOUL, OBERLANDER, O'NEILL, PAYNE, PEIFER, PERRY, PICKETT, PYLE, QUIGLEY, QUINN, RAPP, REED, REICHLEY, ROAE, ROCK, ROSS, SAYLOR, SCAVELLO, CULVER, SCHRODER, SIMMONS, SONNEY, STERN, STEVENSON, SWANGER, TALLMAN, TOBASH, TRUITT, TURZAI, VEREB, VULAKOVICH, WATSON AND F. KELLER, JANUARY 27, 2011

AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF REPRESENTATIVES, AS AMENDED, APRIL 5, 2011   

AN ACT

Amending the act of August 9, 1955 (P.L.323, No.130), entitled,

as amended, "An act relating to counties of the first, third,

fourth, fifth, sixth, seventh and eighth classes; amending,

revising, consolidating and changing the laws relating

thereto; relating to imposition of excise taxes by counties,

including authorizing imposition of an excise tax on the

rental of motor vehicles by counties of the first class; and

providing for regional renaissance initiatives," in

contracts, further providing for commissioners sole

contractors for county, for contract procedures, terms and

bonds and advertising for bids and for evasion of advertising

requirements; and, in grounds and buildings, further

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providing for bids for plumbing, heating, ventilating,

electrical work, elevators and moving stairs.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 1801 and 1802(a) and (b) of the act of

August 9, 1955 (P.L.323, No.130), known as The County Code,

amended December 22, 2000 (P.L.1019, No.142), are amended to

read:

Section 1801.  Commissioners Sole Contractors for County.--

(a)  The county commissioners shall contract for and purchase

all services referred to in section five hundred eight and

personal property for county officers and agencies. All

contracts and purchases not in excess of [ten thousand dollars

($10,000)] the base amount of twenty-five thousand dollars

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($25,000) subject to annual adjustment under subsection (b.1) 

shall be by note or memorandum, in writing, signed by the county

commissioners, or their designee. A copy of all such notes and

memorandums and all written contracts shall be filed in the

office of the controller, if any, and, if not, then with the

chief clerk of the commissioners.

(b)  Written or telephonic price quotations from at least

three qualified and responsible contractors shall be requested

for all contracts that [exceed [four thousand dollars ($4,000)] 

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are in excess of the base amount of ten thousand dollars

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($10,000) subject to annual adjustment under subsection (b.1) 

but are less than the amount requiring advertisement and

competitive bidding or, in lieu of price quotations, a

memorandum shall be kept on file showing that fewer than three

qualified contractors exist in the market area within which it

is practicable to obtain quotations. A written record of

telephonic price quotations shall be made and shall contain at

least the date of the quotation, the name of the contractor and

the contractor's representative, the construction,

reconstruction, repair, maintenance or work which was the

subject of the quotation and the price. Written price

quotations, written records of telephonic price quotations and

memoranda shall be retained for a period of three years.

(b.1)  (1)  The Department of Labor and Industry shall

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determine the percentage change in the Consumer Price Index for

All Urban Consumers for the twelve-month period ending September

30 of the calendar year in which this subsection becomes

effective, and for each successive twelve-month period

thereafter.

(2)  The amount at which competitive bidding is required

under subsection (a) and the amount at which written or

telephonic price quotations are required under subsection (b)

shall be adjusted annually as follows:

(i)  In the case of competitive bidding, the positive

percentage change, as determined in accordance with paragraph

(1), shall be multiplied by the amount applicable under

subsection (a) for the current year and the product thereof

shall be added to the amount applicable under subsection (a) for

the current year, with the result rounded to the nearest

multiple of ten dollars ($10).

(ii)  In the case of written or telephonic price quotations,

the positive percentage change, as determined in accordance with

paragraph (1), shall be multiplied by the amount applicable

under subsection (b) for the current year and the product

thereof shall be added to the amount applicable under subsection

(b) for the current year, with the result rounded to the nearest

multiple of ten dollars ($10).

(3)  The annual determination required under paragraph (1)

and the calculation of the adjustments required under paragraph

(2) shall be made in the period between October 1 and November

15 of the year following the effective date of this subsection,

and annually between October 1 and November 15 of each

successive year.

(4)  The adjusted amounts obtained in accordance with

paragraph (2) shall become effective January 1 for the calendar

year following the year in which the determination required

under paragraph (1) is made.

(5)  The Department of Labor and Industry shall give notice

in the Pennsylvania Bulletin prior to January 1 of each calendar

year of the annual percentage change determined in accordance

with paragraph (1) and the amounts, whether adjusted or

unadjusted in accordance with paragraph (2), at which

competitive bidding is required under subsection (a) and written

or telephonic price quotations are required under subsection (b)

for the calendar year beginning the first day of January after

publication of the notice.

(b.1)  Adjustments to the base amounts specified under

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subsections (a) and (b) and sections 1802, 1803 and 2317 shall

be made as follows:

(1)  The Department of Labor and Industry shall determine the

percentage change in the All Items Consumer Price Index for All

Urban Consumers (CPI-U) for the United States City Average as

published by the United States Department of Labor, Bureau of

Labor Statistics for the twelve-month period ending September 30

of the calendar year in which this subsection becomes effective,

and for each successive twelve-month period thereafter.

(2)  If the department determines that there is no positive

percentage change, then no adjustment to the base amounts shall

occur for the relevant time period provided for in this

subsection.

(3)  (i)  If the department determines that there is a

positive percentage change in the first year that the

determination is made under paragraph (1), the positive

percentage change shall be multiplied by each base amount and

the products shall be added to the base amounts, respectively,

and the sums shall be preliminary adjusted amounts.

(ii)  The preliminary adjusted amounts shall be rounded to

the nearest one thousand dollars, to determine the final

adjusted base amounts for purposes of subsections (a) and (b)

and sections 1802, 1803 and 2317.

(4)  In each successive year in which there is a positive

percentage change in the CPI-U for the United States City

Average, the positive percentage change shall be multiplied by

the most recent preliminary adjusted amounts and the products

shall be added to the most recent preliminary adjusted amounts,

respectively. The sums thereof shall be rounded to the nearest

one thousand dollars to determine the new final adjusted base

amounts for purposes of subsections (a) and (b) and sections

1802, 1803 and 1807.

(5)  The determinations and adjustments required under this

subsection shall be made in the period between October 1 and

November 15 of the year following the effective date of this

subsection, and annually between October 1 and November 15 of

each year thereafter.

(6)  The final adjusted base amounts and new final adjusted

base amounts obtained under paragraphs (3) and (4) shall become

effective January 1 for the calendar year following the year in

which the determination required under paragraph (1) is made.

(7)  The department shall publish notice in the Pennsylvania

Bulletin prior to January 1 of each calendar year of the annual

percentage change determined under paragraph (1) and the

unadjusted or final adjusted base amounts determined under

paragraphs (3) and (4) for purposes of subsections (a) and (b)

and sections 1802, 1803 and 1807, respectively, for the calendar

year beginning the first day of January after publication of the

notice. The notice shall include a written and illustrative

explanation of the calculations performed by the department in

establishing the unadjusted or final adjusted base amounts under

this subsection for the ensuing calendar year.

(c)  The commissioners shall, where possible, anticipate the

needs of the various officers, agencies and operations of the

county and endeavor to purchase in wholesale quantities, where

practicable and where savings could be achieved thereby. The

commissioners may make contracts and purchases for all purposes

expressly or impliedly authorized by law.

Section 1802.  Contract Procedures; Terms and Bonds;

Advertising for Bids.--(a)  All contracts for services and

personal property where the amount thereof exceeds the [sum of

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[ten thousand dollars ($10,000),] base amount of twenty-five

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thousand dollars ($25,000) subject to annual adjustment under

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section 1801(b.1) shall be written and shall, except as

otherwise hereinafter specified, be made by advertising for

bids.

(b)  Contracts or purchases in excess of [ten thousand

dollars ($10,000)] the base amount of twenty-five thousand

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dollars ($25,000) subject to annual adjustment under section

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1801(b.1), except those hereinafter mentioned and except as

provided by the act of October 27, 1979 (P.L.241, No.78),

entitled "An act authorizing political subdivisions,

municipality authorities and transportation authorities to enter

into contracts for the purchase of goods and the sale of real

and personal property where no bids are received," shall not be

made except with and from the lowest responsible and responsive

bidder submitting a bid in conformity with the specifications

approved by the board of commissioners for the contract or

purchase, after due notice in one newspaper of general

circulation, published or circulating in the county, at least

two times at intervals of not less than three days where daily

newspapers of general circulation are employed for such

publication, or in case weekly newspapers are employed then the

notice shall be published once a week for two successive weeks.

The first advertisement shall be published not less than ten

days prior to the date fixed for the opening of bids. The

requirements of this subsection need not be followed in cases of

emergency, but in such cases the actual emergency shall be

declared and stated by resolution of the commissioners.

* * *

Section 2.  Section 1803 Sections 1803 and 2317 of the act,

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amended July 10, 1990 (P.L.379, No.89), is are amended to read:

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Section 1803.  Evasion of Advertising Requirements.--(a)  No

commissioner or commissioners shall evade the provisions of

section one thousand eight hundred two of this act, as to

advertising for bids or purchasing or contracting for services

and personal properties piece-meal, for the purpose of obtaining

prices under [ten thousand dollars ($10,000)] the base amount of

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twenty-five thousand dollars ($25,000) subject to annual

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adjustment under section 1801(b.1) upon transactions which

should in the exercise of reasonable discretion and prudence be

conducted as one transaction amounting to more than [ten

thousand dollars ($10,000)] the base amount of twenty-five

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thousand dollars ($25,000) subject to annual adjustment under

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section 1801(b.1). This provision is intended to make unlawful

the practice of evading advertising requirements by making a

series of purchases or contracts each for less than the

advertising requirement price, or by making several simultaneous

purchases or contracts each below said price, when in either

case the transaction involved should have been made as one

transaction for one price. Any county commissioners who so vote

in violation of this provision and who know that the transaction

upon which they so vote is or ought to be a part of a larger

transaction and that it is being divided in order to evade the

requirements as to advertising for bids shall be, jointly and

severally, subject to surcharge for any loss sustained. Wherever

it shall appear that a commissioner may have voted in violation

of this section, but the purchase or contract on which he so

voted was not approved by the board of county commissioners,

this section shall be inapplicable.

(b)  Any county commissioner who votes to unlawfully evade

the provisions of section one thousand eight hundred two of this

act and who knows that the transaction upon which he so votes is

or ought to be a part of a larger transaction and that it is

being divided in order to evade the requirements as to

advertising for bids commits a misdemeanor of the third degree

for each contract entered into as a direct result of that vote.

This penalty shall be in addition to any surcharge which may be

assessed pursuant to subsection (a).

Section 2317.  Separate Bids for Plumbing, Heating,

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Ventilating, Electrical Work, Elevators and Moving Stairs.--In

the preparation of specifications for the erection, construction

and alteration of any public building, when the entire cost of

such work shall exceed [ten thousand dollars ($10,000)] twenty-

five thousand dollars ($25,000) subject to annual adjustment

under section 1801(b.1) the architect, engineer or other person

preparing such specifications shall prepare only the following

separate specifications: (1) plumbing, (2) heating, (3)

ventilating, (4) electrical work, (5) elevators and moving

stairs, and (6) one complete set of specifications for all the

other work to be done in such erection, construction and

alteration. The board of commissioners shall receive separate

bids upon each of the said branches of work and award the

contract for the same to the lowest responsible bidder for each

of said branches, including the balance of the work in addition

to the plumbing, heating, ventilating and electrical work, and

elevators and moving stairs. Where it is desired to install an

air conditioning unit, the heating and ventilating so involved

may be regarded as one branch of work having only one set of

specifications, and bids may be received and a contract awarded

thereon, as hereinbefore provided.

Section 3.  This act shall apply to contracts and purchases

advertised on or after January 1 of the year following the

effective date of this section.

Section 4.  This act shall take effect immediately.