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| PRIOR PRINTER'S NOS. 270, 972 | PRINTER'S NO. 1567 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| 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 |
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| SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, SEPTEMBER 20, 2011 |
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| AN ACT |
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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 |
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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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