PRIOR PRINTER'S NO. 2505 PRINTER'S NO. 3249
No. 1863 Session of 2005
INTRODUCED BY M. KELLER, HERMAN, LESCOVITZ, BIANCUCCI, HANNA,
ROSS, HARHAI, HICKERNELL, O'NEILL, KAUFFMAN, HENNESSEY,
HARPER, PETRI, T. STEVENSON, McNAUGHTON, GINGRICH, ARMSTRONG,
BALDWIN, BOYD, CAPPELLI, DALLY, DENLINGER, DeWEESE, FRANKEL,
GEIST, HARRIS, HERSHEY, McILHATTAN, PHILLIPS, PICKETT,
SCAVELLO AND WATSON, JULY 3, 2005
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, DECEMBER 6, 2005
AN ACT
1 Amending the act of August 9, 1955 (P.L.323, No.130), entitled,
2 as amended, "An act relating to counties of the first, third,
3 fourth, fifth, sixth, seventh and eighth classes; amending,
4 revising, consolidating and changing the laws relating
5 thereto; relating to imposition of excise taxes by counties,
6 including authorizing imposition of an excise tax on the
7 rental of motor vehicles by counties of the first class; and
8 providing for regional renaissance initiatives," further
9 providing for commissioners sole contractors for county, for
10 contract procedures, terms and bonds and advertising for bids
11 and for evasion of advertising requirements.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Sections 1801 and 1802(a) and (b) of the act of
15 August 9, 1955 (P.L.323, No.130), known as The County Code,
16 amended December 22, 2000 (P.L.1019, No.142), are amended to
17 read:
18 Section 1801. Commissioners Sole Contractors for County.--
19 (a) The county commissioners shall contract for and purchase
20 all services referred to in section five hundred eight and
1 personal property for county officers and agencies. All
2 contracts and purchases not in excess of [ten thousand dollars
3 ($10,000)] twenty-five thousand dollars ($25,000) EIGHTEEN <--
4 THOUSAND DOLLARS ($18,000) subject to annual adjustment under
5 subsection (b.1) shall be by note or memorandum, in writing,
6 signed by the county commissioners, or their designee. A copy of
7 all such notes and memorandums and all written contracts shall
8 be filed in the office of the controller, if any, and, if not,
9 then with the chief clerk of the commissioners.
10 (b) Written or telephonic price quotations from at least
11 three qualified and responsible contractors shall be requested
12 for all contracts that exceed [four thousand dollars ($4,000)]
13 ten thousand dollars ($10,000) SEVEN THOUSAND DOLLARS ($7,000) <--
14 subject to annual adjustment under subsection (b.1) but are less
15 than the amount requiring advertisement and competitive bidding
16 or, in lieu of price quotations, a memorandum shall be kept on
17 file showing that fewer than three qualified contractors exist
18 in the market area within which it is practicable to obtain
19 quotations. A written record of telephonic price quotations
20 shall be made and shall contain at least the date of the
21 quotation, the name of the contractor and the contractor's
22 representative, the construction, reconstruction, repair,
23 maintenance or work which was the subject of the quotation and
24 the price. Written price quotations, written records of
25 telephonic price quotations and memoranda shall be retained for
26 a period of three years.
27 (b.1) (1) The Department of Labor and Industry shall <--
28 determine the percentage change in the Consumer Price Index for
29 All Urban Consumers for the twelve-month period ending September
30 30 of the calendar year in which this subsection becomes
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1 effective, and for each successive twelve-month period
2 thereafter.
3 (B.1) (1) ANNUALLY, BEGINNING WITH THE YEAR IN WHICH THIS <--
4 SUBSECTION BECOMES APPLICABLE TO CONTRACTS AND PURCHASES, THE
5 DEPARTMENT OF LABOR AND INDUSTRY SHALL CALCULATE THE PERCENTAGE
6 CHANGE IN THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS (CPI-
7 U) FOR THE UNITED STATES CITY AVERAGE FOR ALL ITEMS AS PUBLISHED
8 BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR
9 STATISTICS, FOR THE TWELVE-MONTH AVERAGE ENDING IN SEPTEMBER OF
10 THE PRIOR YEAR.
11 (2) The amount at which competitive bidding is required
12 under subsection (a) and the amount at which written or
13 telephonic price quotations are required under subsection (b)
14 shall be adjusted annually as follows:
15 (i) In the case of competitive bidding, the positive
16 percentage change, as determined in accordance with paragraph
17 (1), shall be multiplied by the amount applicable under
18 subsection (a) for the current year and the product thereof
19 shall be added to the amount applicable under subsection (a) for
20 the current year, with the result rounded to the nearest
21 multiple of ten dollars ($10).
22 (ii) In the case of written or telephonic price quotations,
23 the positive percentage change, as determined in accordance with
24 paragraph (1), shall be multiplied by the amount applicable
25 under subsection (b) for the current year and the product
26 thereof shall be added to the amount applicable under subsection
27 (b) for the current year, with the result rounded to the nearest
28 multiple of ten dollars ($10).
29 (3) The annual determination required under paragraph (1)
30 and the calculation of the adjustments required under paragraph
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1 (2) shall be made in the period between October 1 and November
2 15 of the year following the effective date of this subsection,
3 and annually between October 1 and November 15 of each
4 successive year.
5 (4) The adjusted amounts obtained in accordance with
6 paragraph (2) shall become effective January 1 for the calendar
7 year following the year in which the determination required
8 under paragraph (1) is made.
9 (5) The Department of Labor and Industry shall give notice
10 in the Pennsylvania Bulletin prior to January 1 of each calendar
11 year of the annual percentage change determined in accordance
12 with paragraph (1) and the amounts, whether adjusted or
13 unadjusted in accordance with paragraph (2), at which
14 competitive bidding is required under subsection (a) and written
15 or telephonic price quotations are required under subsection (b)
16 for the calendar year beginning the first day of January after
17 publication of the notice.
18 (c) The commissioners shall, where possible, anticipate the
19 needs of the various officers, agencies and operations of the
20 county and endeavor to purchase in wholesale quantities, where
21 practicable and where savings could be achieved thereby. The
22 commissioners may make contracts and purchases for all purposes
23 expressly or impliedly authorized by law.
24 Section 1802. Contract Procedures; Terms and Bonds;
25 Advertising for Bids.--(a) All contracts for services and
26 personal property where the amount thereof exceeds the sum of
27 [ten thousand dollars ($10,000),] twenty-five thousand dollars <--
28 EIGHTEEN THOUSAND DOLLARS ($18,000) subject to annual adjustment <--
29 under section 1801(b.1) shall be written and shall, except as
30 otherwise hereinafter specified, be made by advertising for
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1 bids.
2 (b) Contracts or purchases in excess of [ten thousand
3 dollars ($10,000)] twenty-five thousand dollars EIGHTEEN <--
4 THOUSAND DOLLARS ($18,000) subject to annual adjustment under
5 section 1801(b.1), except those hereinafter mentioned and except
6 as provided by the act of October 27, 1979 (P.L.241, No.78),
7 entitled "An act authorizing political subdivisions,
8 municipality authorities and transportation authorities to enter
9 into contracts for the purchase of goods and the sale of real
10 and personal property where no bids are received," shall not be
11 made except with and from the lowest responsible and responsive
12 bidder submitting a bid in conformity with the specifications
13 approved by the board of commissioners for the contract or
14 purchase, after due notice in one newspaper of general
15 circulation, published or circulating in the county, at least
16 two times at intervals of not less than three days where daily
17 newspapers of general circulation are employed for such
18 publication, or in case weekly newspapers are employed then the
19 notice shall be published once a week for two successive weeks.
20 The first advertisement shall be published not less than ten
21 days prior to the date fixed for the opening of bids. The
22 requirements of this subsection need not be followed in cases of
23 emergency, but in such cases the actual emergency shall be
24 declared and stated by resolution of the commissioners.
25 * * *
26 Section 2. Section 1803 of the act, amended July 10, 1990
27 (P.L.379, No.89), is amended to read:
28 Section 1803. Evasion of Advertising Requirements.--(a) No
29 commissioner or commissioners shall evade the provisions of
30 section one thousand eight hundred two of this act, as to
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1 advertising for bids or purchasing or contracting for services
2 and personal properties piece-meal, for the purpose of obtaining
3 prices under [ten thousand dollars ($10,000)] twenty-five <--
4 thousand dollars EIGHTEEN THOUSAND DOLLARS ($18,000) subject to <--
5 annual adjustment under section 1801(b.1) upon transactions
6 which should in the exercise of reasonable discretion and
7 prudence be conducted as one transaction amounting to more than
8 [ten thousand dollars ($10,000)] twenty-five thousand dollars <--
9 EIGHTEEN THOUSAND DOLLARS ($18,000) subject to annual adjustment <--
10 under section 1801(b.1). This provision is intended to make
11 unlawful the practice of evading advertising requirements by
12 making a series of purchases or contracts each for less than the
13 advertising requirement price, or by making several simultaneous
14 purchases or contracts each below said price, when in either
15 case the transaction involved should have been made as one
16 transaction for one price. Any county commissioners who so vote
17 in violation of this provision and who know that the transaction
18 upon which they so vote is or ought to be a part of a larger
19 transaction and that it is being divided in order to evade the
20 requirements as to advertising for bids shall be, jointly and
21 severally, subject to surcharge for any loss sustained. Wherever
22 it shall appear that a commissioner may have voted in violation
23 of this section, but the purchase or contract on which he so
24 voted was not approved by the board of county commissioners,
25 this section shall be inapplicable.
26 (b) Any county commissioner who votes to unlawfully evade
27 the provisions of section one thousand eight hundred two of this
28 act and who knows that the transaction upon which he so votes is
29 or ought to be a part of a larger transaction and that it is
30 being divided in order to evade the requirements as to
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1 advertising for bids commits a misdemeanor of the third degree
2 for each contract entered into as a direct result of that vote.
3 This penalty shall be in addition to any surcharge which may be
4 assessed pursuant to subsection (a).
5 Section 3. This act shall apply to contracts and purchases
6 advertised on or after January 1 of the year following the
7 effective date of this section.
8 Section 4. This act shall take effect immediately.
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