PRIOR PRINTER'S NOS. 270, 972

PRINTER'S NO.  1567

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

296

Session of

2011

  

  

INTRODUCED BY EICHELBERGER, SCARNATI, KASUNIC, FOLMER, GORDNER, BOSCOLA, ORIE, YAW, RAFFERTY, M. WHITE, D. WHITE, ERICKSON, BAKER, ALLOWAY, BRUBAKER, GREENLEAF, FERLO, ROBBINS, VANCE, EARLL, SMUCKER, McILHINNEY, PICCOLA, MENSCH AND BROWNE, JANUARY 26, 2011

  

  

SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, SEPTEMBER 20, 2011   

  

  

  

AN ACT

  

1

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An

2

act relating to the public school system, including certain

3

provisions applicable as well to private and parochial

4

schools; amending, revising, consolidating and changing the

5

laws relating thereto," providing for adjustments based on

6

Consumer Price Index; and further providing for work to be

7

done under contract let on bids and exception, for purchase

8

of supplies, for contracts for construction, repair,

9

renovation or maintenance, for project contracts and for

10

powers and duties of institution presidents.

11

The General Assembly of the Commonwealth of Pennsylvania

12

hereby enacts as follows:

13

Section 1.  The act of March 10, 1949 (P.L.30, No.14), known

14

as the Public School Code of 1949, is amended by adding a

15

section to read:

16

Section 118.  Adjustments Based on Consumer Price Index.--(a)

<--

17

(1)  Every five years, beginning with the year in which this

18

subsection becomes applicable to contracts and purchases, the

19

Department of Labor and Industry shall calculate the average

20

percentage change in the Consumer Price Index for All Urban

 


1

Consumers (CPI-U) for the United States city average for all

2

items as published by the United States Department of Labor,

3

Bureau of Labor Statistics, for the preceding five-year period.

4

(2)  The amounts at which competitive bidding or written or

5

telephonic price quotations are required under this act shall be

6

adjusted every five years as follows:

7

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

8

percentage change, as determined in accordance with clause (1),

9

shall be multiplied by the amount applicable under the provision

10

requiring competitive bidding for the current five-year period

11

and the product thereof shall be added to the amount applicable

12

under the provision requiring competitive bidding for the

13

current five-year period, with the result rounded to the nearest

14

multiple of one hundred dollars ($100).

15

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

16

the positive percentage change, as determined in accordance with

17

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

18

the provision requiring written or telephonic price quotations

19

for the current five-year period and the product thereof shall

20

be added to the amount applicable under the provision requiring

21

written or telephonic price quotations for the current five-year

22

period, with the result rounded to the nearest multiple of one

23

hundred dollars ($100).

24

(3)  The determination required under clause (1) and the

25

calculation of the adjustments required under clause (2) shall

26

be made in the period between October 1 and November 15 of the

27

year following the effective date of this subsection, and

28

between October 1 and November 15 of each successive year.

29

(4)  The adjusted amounts obtained in accordance with clause

30

(2) shall become effective January 1 for the five-year period

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1

following the year in which the determination required under

2

clause (1) is made.

3

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

4

in the Pennsylvania Bulletin prior to January 1 of each calendar

5

year in which the percentage change is determined in accordance

6

with clause (1) of the amounts, whether adjusted or unadjusted

7

in accordance with clause (2), at which competitive bidding or

8

written or telephonic price quotations are required for the

9

five-year period beginning the first day of January after

10

publication of the notice.

11

Section 119.  Adjustments Based on Consumer Price Index.--

<--

12

Adjustments to the base amounts shall be made as follows:

13

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

14

percentage change in the All Items Consumer Price Index for All

15

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

16

published by the United States Department of Labor, Bureau of

17

Labor Statistics, for the twelve-month period ending September

18

30, 2012, and for each successive twelve-month period

19

thereafter.

20

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

21

percentage change, then no adjustment to the base amounts shall

22

occur for the relevant time period.

23

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

24

positive percentage change in the first year that the

25

determination is made under paragraph (1), the positive

26

percentage change shall be multiplied by each base amount and

27

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

28

and the sums shall be preliminary adjusted amounts.

29

(ii)  The preliminary adjusted amounts shall be rounded to

30

the nearest one thousand dollars ($1,000), to determine the

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1

final adjusted base amounts.

2

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

3

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

4

Average, the positive percentage change shall be multiplied by

5

the most recent preliminary adjusted amounts and the products

6

shall be added to the preliminary adjusted amount of the prior

7

year to calculate the preliminary adjusted amounts for the

8

current year. The sums thereof shall be rounded to the nearest

9

one thousand dollars ($1,000) to determine the new final

10

adjusted base amounts.

11

(5)  The determinations and adjustments required under this

12

section shall be made in the period between October 1 and

13

November 15 of the year following the effective date of this

14

section, and annually between October 1 and November 15 of each

15

year thereafter.

16

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

17

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

18

effective January 1 for the calendar year following the year in

19

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

20

(7)  The department shall publish notice in the Pennsylvania

21

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

22

percentage change determined under paragraph (1) and the

23

unadjusted or final adjusted base amounts determined under

24

paragraphs (3) and (4) at which competitive bidding is required

25

and written or telephonic price quotations are required,

26

respectively, for the calendar year beginning the first day of

27

January after publication of the notice. The notice shall

28

include a written and illustrative explanation of the

29

calculations performed by the department in establishing the

30

unadjusted or final adjusted base amounts under this section for

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1

the ensuing calendar year.

2

(8)  No adjustment to the base amounts shall exceed three

3

percent of the most recently adjusted base amount.

4

Section 2.  Sections 751(a), (a.1), (b) and (f) and 807.1 of

5

the act, amended or added May 4, 1990 (P.L.164, No.38), are

6

amended to read:

7

Section 751.  Work to be Done Under Contract Let on Bids;

8

Exception.--(a)  All construction, reconstruction, repairs,

9

maintenance or work of any nature, including the introduction of

10

plumbing, heating and ventilating, or lighting systems, upon any

11

school building or upon any school property, or upon any

12

building or portion of a building leased under the provisions of

13

section 703.1, made by any school district, where the entire

14

cost, value, or amount of such construction, reconstruction,

15

repairs, maintenance or work, including labor and material,

16

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

<--

17

thousand dollars ($25,000) a base amount of eighteen thousand

<--

18

five hundred dollars ($18,500), subject to adjustment under

19

section 118 119, shall be done under separate contracts to be

<--

20

entered into by such school district with the lowest responsible

21

bidder, upon proper terms, after due public notice has been

22

given asking for competitive bids. Whenever a board of school

23

directors shall approve the use of a prefabricated unit,

24

complete in itself, for a school building or other proper

25

structure to be erected upon school property, the board of

26

school directors may have prepared appropriate specifications

27

detailing the size and material desired in a particular

28

prefabricated unit, including all utilities such as plumbing,

29

heating and ventilating, and electrical work, and may advertise

30

for a single bid on all the work and award the contract therefor

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1

to the lowest responsible bidder: Provided, That if due to an

2

emergency a school plant or any part thereof becomes unusable

3

competitive bids for repairs or replacement may be solicited

4

from at least three responsible bidders, and upon the approval

5

of any of these bids by the Secretary of Education, the board of

6

school directors may proceed at once to make the necessary

7

repairs or replacements in accordance with the terms of said

8

approved bid or bids.

9

(a.1)  Written or telephonic price quotations from at least

10

three qualified and responsible contractors shall be requested

11

by the board of school directors for all contracts that exceed 

12

[four thousand dollars ($4,000)] seven thousand dollars ($7,000) 

<--

13

a base amount of ten thousand dollars ($10,000), subject to

<--

14

adjustment under section 118 119, but are less than the amount

<--

15

requiring advertisement and competitive bidding, or, in lieu of

16

price quotations, a memorandum shall be kept on file showing

17

that fewer than three qualified contractors exist in the market

18

area within which it is practicable to obtain quotations. A

19

written record of telephonic price quotations shall be made and

20

shall contain at least the date of the quotation, the name of

21

the contractor and the contractor's representative, the

22

construction, reconstruction, repair, maintenance or work which

23

was the subject of the quotation and the price. Written price

24

quotations, written records of telephonic price quotations and

25

memoranda shall be retained for a period of three years.

26

(b)  The board of school directors in any school district may

27

perform any construction, reconstruction, repairs, or work of

28

any nature, where the entire cost or value, including labor and

29

material, is less than [five thousand dollars ($5000)] seven

<--

30

thousand dollars ($7,000) a base amount of ten thousand dollars

<--

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1

($10,000), subject to adjustment under section 118 119, by its

<--

2

own maintenance personnel. The board of school directors in any

3

school district may authorize the secretary of the board or

4

other executive to award contracts for construction,

5

reconstruction, repairs, or work of any nature, where the entire

6

cost or value, including labor and material, [is ten thousand

7

dollars ($10,000)] subject to adjustment under section 118 119,

<--

8

is twenty-five thousand dollars ($25,000) a base amount of

<--

9

eighteen thousand five hundred dollars ($18,500) or less,

10

without soliciting competitive bids, subject, however, to the

11

provisions of subsection (a.1).

12

* * *

13

(f)  No board of school directors shall evade the provisions

14

of this section as to advertising for bids or purchasing

15

materials or contracting for services piecemeal for the purpose

16

of obtaining prices under [ten thousand dollars ($10,000)] 

17

twenty-five thousand dollars ($25,000) a base amount of eighteen

<--

18

thousand five hundred dollars ($18,500), subject to adjustment

19

under section 118 119, upon transactions which should, in the

<--

20

exercise of reasonable discretion and prudence, be conducted as

21

one transaction amounting to more than [ten thousand dollars

22

($10,000)] twenty-five thousand dollars ($25,000) a base amount

<--

23

of eighteen thousand five hundred dollars ($18,500), subject to

24

adjustment under section 118 119. This provision is intended to

<--

25

make unlawful the practice of evading advertising requirements

26

by making a series of purchases or contracts each for less than

27

the advertising requirement price, or by making several

28

simultaneous purchases or contracts each below said price, when

29

in either case the transaction involved should have been made as

30

one transaction for one price.

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1

Section 807.1.  Purchase of Supplies.--(a)  All furniture,

2

equipment, textbooks, school supplies and other appliances for

3

the use of the public schools, costing [ten thousand dollars

4

($10,000)], subject to adjustment under section 118, twenty-five

<--

5

thousand dollars ($25,000) 119, a base amount of eighteen

<--

6

thousand five hundred dollars ($18,500) or more shall be

7

purchased by the board of school directors only after due

8

advertisement as hereinafter provided. Supplies, subject to

<--

9

adjustment under section 118, costing [ten thousand dollars

10

($10,000)] twenty-five thousand dollars ($25,000) Supplies

<--

11

costing [ten thousand dollars ($10,000)], subject to adjustment

12

under section 119, a base amount of eighteen thousand five

13

hundred dollars ($18,500) or more shall be purchased by the

14

board of school directors only after public notice has been

15

given by advertisement once a week for three (3) weeks in not

16

less than two (2) newspapers of general circulation. In any

17

district where no newspaper is published, said notice may, in

18

lieu of such publication, be posted in at least five (5) public

19

places.

20

(a.1)  Written or telephonic price quotations from at least

21

three qualified and responsible vendors shall be requested by

22

the board of school directors for all purchases of supplies that

23

exceed [four thousand dollars ($4,000)] seven thousand dollars

<--

24

($7,000) a base amount of ten thousand dollars ($10,000),

<--

25

subject to adjustment under section 118 119, but are less than

<--

26

the amount requiring advertisement and competitive bidding, or,

27

in lieu of price quotations, a memorandum shall be kept on file

28

showing that fewer than three qualified vendors exist in the

29

market area within which it is practicable to obtain quotations.

30

A written record of telephonic price quotations shall be made

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1

and shall contain at least the date of the quotation, the name

2

of the vendor and the vendor's representative, the supplies

3

which were the subject of the quotation and the price of the

4

supplies. Written price quotations, written records of

5

telephonic price quotations and memoranda shall be retained for

6

a period of three years.

7

(b)  The board of school directors shall accept the bid of

8

the lowest responsible bidder, kind, quality, and material being

9

equal, but shall have the right to reject any and all bids, or

10

select a single item from any bid. The board of school directors

11

in any district may authorize or appoint the secretary of the

12

board or other executive as purchasing agent for the district,

13

with authority to purchase supplies [costing] that cost a base

<--

14

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

<--

15

thousand dollars ($25,000) eighteen thousand five hundred

<--

16

dollars ($18,500), subject to adjustment under section 118 119.

<--

17

(c)  The following shall be exempt from the above provisions:

18

maps, music, globes, charts, educational films, filmstrips,

19

prepared transparencies and slides, pre-recorded magnetic tapes

20

and disc recordings, textbooks, games, toys, prepared kits,

21

flannel board materials, flash cards, models, projectuals and

22

teacher demonstration devices necessary for school use.

23

(d)  No board of school directors shall evade the provisions

24

of this section as to advertising for bids or purchasing

25

materials piecemeal for the purpose of obtaining prices under

26

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

<--

27

($25,000) the base amount of eighteen thousand five hundred

<--

28

dollars ($18,500), subject to adjustment under section 118 119, 

<--

29

upon transactions which should, in the exercise of reasonable

30

discretion and prudence, be conducted as one transaction

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1

amounting to more than [ten thousand dollars ($10,000)] twenty-

<--

2

five thousand dollars ($25,000)  a base amount of eighteen

<--

3

thousand five hundred dollars ($18,500), subject to adjustment

4

under section 118 119. This provision is intended to make

<--

5

unlawful the practice of evading advertising requirements by

6

making a series of purchases or contracts each for less than the

7

advertising requirement price, or by making several simultaneous

8

purchases or contracts each below said price, when in either

9

case the transaction involved should have been made as one

10

transaction for one price.

11

Section 3.  Section 1913-B.1(c) of the act, added December 9,

12

2002 (P.L.1472, No.187), is amended to read:

13

Section 1913-B.1.  Contracts for Construction, Repair,

14

Renovation or Maintenance.--* * *

15

(c)  All contracts, other than contracts for the retention of

16

architects and engineers, authorized by this section which

17

exceed [ten thousand dollars ($10,000) or any larger amount as

18

otherwise provided for in 62 Pa.C.S. (relating to procurement)] 

19

twenty-five thousand dollars ($25,000) a base amount of eighteen

<--

20

thousand five hundred dollars ($18,500), subject to adjustment

21

under section 118 119, shall be advertised in the manner

<--

22

provided by law and competitively bid and awarded to the lowest

23

responsible bidder. In case of emergencies and notwithstanding

24

any other provision of this section to the contrary, the board

25

of trustees may make or authorize others to make an emergency

26

procurement whenever a threat exists to public health, welfare

27

or safety or circumstances outside the control of the college

28

and creates an urgency of need which does not permit the delay

29

involved in using more formal competitive methods. Whenever

30

practical, in the case of a procurement of a supply, at least

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1

two (2) bids shall be solicited. A written determination of the

2

basis for the emergency and for the selection of the particular

3

contractor shall be included in the contract file.

4

* * *

5

Section 4.  Sections 2003-A.1(c) and 2010-A(10) Section

<--

6

2003-A.1(c) of the act, amended April 27, 1998 (P.L.270, No.46),

7

are is amended and the section is amended by adding a subsection

<--

8

to read:

9

Section 2003-A.1.  Project Contracts.--* * *

10

(c)  All contracts, other than contracts for the retention of

11

architects and engineers, authorized by this section which

12

exceed [ten thousand dollars ($10,000)] twenty-five thousand

<--

13

dollars ($25,000) a base amount of eighteen thousand five

<--

14

hundred dollars ($18,500), subject to adjustment under section

<--

15

118 subsection (c.1), shall be advertised in the manner provided

<--

16

by law and competitively bid and awarded to the lowest

17

responsible bidder. In case of emergencies and notwithstanding

18

any other provision of this section to the contrary, the

19

chancellor may make or authorize others to make an emergency

20

procurement whenever a threat exists to public health, welfare

21

or safety or circumstances outside the control of the State

22

system and creates an urgency of need which does not permit the

23

delay involved in using more formal competitive methods.

24

Whenever practical, in the case of a procurement of a supply, at

25

least two (2) bids shall be solicited. A written determination

26

of the basis for the emergency and for the selection of the

27

particular contractor shall be included in the contract file.

28

(c.1)  Adjustments shall be made as follows:

<--

29

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

30

average annual percentage change in the All Items Consumer Price

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1

Index for All Urban Consumers (CPI-U) for the United States City

2

Average as published by the United States Department of Labor,

3

Bureau of Labor Statistics, for the twelve-month period ending

4

September 30, 2012, and for each successive twelve-month period

5

thereafter.

6

(2)  The positive percentage change, as determined in

7

accordance with clause (1), shall be multiplied by the amount

8

applicable under subsection (c) for the current period and the

9

product thereof shall be added to the amount applicable under

10

subsection (c) for the current period, with the result rounded

11

to the nearest multiple of one thousand dollars ($1,000).

12

(3)  The determination required under clause (1) and the

13

calculation adjustments required under clause (2) shall be made

14

in the period between October 1 and November 15 of the year

15

following the effective date of this subsection, and between

16

October 1 and November 15 of each successive year.

17

(4)  The adjusted amounts obtained in accordance with clause

18

(2) shall become effective January 1 for the period following

19

the year in which the determination required under clause (1) is

20

made.

21

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

22

in the Pennsylvania Bulletin prior to January 1 of each calendar

23

year in which the percentage change is determined in accordance

24

with clause (1) of the amounts, whether adjusted or unadjusted

25

in accordance with clause (2), at which competitive bidding is

26

required under subsection (c) for the period beginning the first

27

day of January after publication of the notice.

28

(6)  No adjustment to the base amounts shall exceed three

29

percent of the most recently adjusted base amount.

30

* * *

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1

Section 4.1.  Section 2010-A of the act, amended April 27,

<--

2

1998 (P.L.270, No.46), is amended to read:

3

Section 2010-A.  Power and Duties of Institution

4

Presidents.--The president of each institution shall be

5

appointed by the board. The president shall be the chief

6

executive officer of that institution. He shall have the right

7

to attend all meetings of the council of that institution and

8

shall have the right to speak on all matters before the council

9

but not to vote. Subject to the stated authority of the board

10

and the council, each president shall have the following powers

11

and duties:

12

* * *

13

(10)  Within the limitations of the operating budget and

14

other available funds in accordance with the procedures

15

established by the board and with the approval of the local

16

council, to negotiate and award all contracts for equipment,

17

services and supplies in excess of a cost of [ten thousand

18

dollars ($10,000)] twenty-five thousand dollars ($25,000) a base

<--

19

amount of eighteen thousand five hundred dollars ($18,500),

20

subject to adjustment under section 118 119, on a competitive

<--

21

bid basis and to purchase instructional, educational,

22

extracurricular, technical, administrative, custodial and

23

maintenance equipment and supplies not in excess of a cost of

24

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

<--

25

($25,000) a base amount of eighteen thousand five hundred

<--

26

dollars ($18,500), subject to adjustment under section 118 119, 

<--

27

without competitive bidding, except that such items shall not be

28

bought in series to avoid the dollar ceiling.

29

* * *

30

Section 5.  This act shall apply to contracts and purchases

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1

advertised on or after January 1 of the year following the

2

effective date of this section.

3

Section 6.  This act shall take effect in 60 days.

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