SENATE AMENDED
PRIOR PRINTER'S NOS. 2280, 3157 PRINTER'S NO. 3703
No. 1777 Session of 1975
INTRODUCED BY MESSRS. DeMEDIO, FRYER, RITTER, MEBUS AND WEIDNER,
OCTOBER 1, 1975
SENATOR MURPHY, LOCAL GOVERNMENT, IN SENATE, RE-REPORTED AS
AMENDED, SEPTEMBER 21, 1976
AN ACT
1 Amending the act of May 1, 1933 (P.L.103, No.69), entitled "An
2 act concerning townships of the second class; and amending,
3 revising, consolidating, and changing the law relating
4 thereto," further regulating contracts as to advertising
5 requirements.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Sections 802 and 802.1, act of May 1, 1933
9 (P.L.103, No.69), known as "The Second Class Township Code,"
10 reenacted and amended July 10, 1947 (P.L.1481, No.567), and
11 amended October 9, 1967 (P.L.371, No.168) and May 6, 1970
12 (P.L.348, No.114), are amended to read:
13 Section 802. Letting Contracts.--(a) Each township shall
14 have the power to make, to authorize, and to ratify,
15 expenditures for lawful purposes from funds available therefor,
16 by borrowing within legal limitations: Provided, That all
17 contracts or purchases in excess of [one thousand five hundred
18 dollars] two thousand dollars TWO THOUSAND FIVE HUNDRED DOLLARS <--
1 TWO THOUSAND DOLLARS, except thoses hereinafter mentioned, shall
2 not be made except with and from the lowest responsible bidder,
3 after due notice in one newspaper of general circulation,
4 published or circulating in the county in which the township is
5 situated, at least three times, at intervals of not less than
6 three days where daily newspapers of general circulation are
7 employed for such publication, or in case weekly newspapers are
8 employed, then the notice shall be published once a week for two
9 successive weeks. The first advertisement shall be published not
10 less than ten days prior to the date fixed for the opening of
11 bids.
12 (b) The amount of the contract shall in all cases, whether
13 of straight sale price, conditional sale, bailment lease, or
14 otherwise, be the entire amount which the township pays to the
15 successful bidder or his assigns in order to obtain the services
16 or property, or both, and shall not be construed to mean only
17 the amount which is paid to acquire title or to receive any
18 other particular benefit or benefits of the whole bargain.
19 (c) The acceptance of bids shall only be made by public
20 announcement at the meeting at which bids are received, or at a
21 subsequent meeting, the time and place of which shall be
22 publicly announced when bids are received. If for any reason one
23 or both of the above meetings shall not be held, the same
24 business may be transacted at subsequent meetings: Provided,
25 That at least five days' notice thereof shall be published in
26 the newspaper aforesaid.
27 (d) The successful bidder, when advertising is required
28 herein, shall be required to furnish a bond with suitable
29 reasonable requirements, guaranteeing performance of the
30 contract, with sufficient surety in the amount of fifty per
19750H1777B3703 - 2 -
1 centum (50%) of the amount of the contract within twenty days
2 after the contract has been awarded, unless the supervisors
3 shall prescribe a shorter period not less than ten days, and
4 upon failure to furnish such bond within such time, the previous
5 award shall be void. Delivery, accomplishment and guarantees may
6 be required in all cases of expenditures, including the
7 exceptions herein.
8 (e) The contracts or purchases made by any supervisors
9 involving an expenditure of over [one thousand five hundred
10 dollars] two thousand dollars TWO THOUSAND FIVE HUNDRED DOLLARS <--
11 TWO THOUSAND DOLLARS, which shall not require advertising or
12 bidding as hereinbefore provided, are as follows:
13 (1) Those made for maintenance, repairs or replacements for
14 water, electric light and other public works of the township,
15 provided they do not constitute new additions, extensions or
16 enlargements of existing facilities and equipment but a bond may
17 be required by the supervisors as in other cases of work done.
18 (2) Those made for improvements, repairs or maintenance of
19 any kind, made or provided by any township, through its own
20 employes: Provided, however, That all materials used for road
21 improvement, maintenance and/or construction in excess of [one
22 thousand five hundred dollars] two thousand dollars TWO THOUSAND <--
23 FIVE HUNDRED DOLLARS TWO THOUSAND DOLLARS be subject to the
24 advertising requirements contained herein.
25 (3) Those where particular types, models or pieces of new
26 equipment, articles, apparatus, appliances, vehicles, or parts
27 thereof, are desired by the supervisors, which are patented and
28 manufactured products.
29 (4) Those involving any policies of insurance or surety
30 company bonds, those made for public utility service under
19750H1777B3703 - 3 -
1 tariffs on file with the Pennsylvania Public Utility Commission,
2 those made with another political subdivision, county, the
3 Commonwealth of Pennsylvania or the Federal Government, or any
4 agency of the Commonwealth or Federal Government, or any
5 municipal authority, including the sale, leasing or loan of any
6 supplies or materials by the Commonwealth, or the Federal
7 Government, or their agencies, but the price thereof, or the
8 expenditure therefor, shall not be in excess of those fixed by
9 the Commonwealth, the Federal Government or their agencies.
10 (5) Those involving personal or professional services.
11 (f) Except as herein provided, no township official, either
12 elected or appointed, who knows, or who by the exercise of
13 reasonable diligence, could know, shall be interested to any
14 appreciable degree, either directly or indirectly, in any
15 contract for the sale or furnishing of any supplies or materials
16 for the use of the township, or for any work to be done for such
17 township involving the expenditure by the township of more than
18 three hundred dollars ($300) in any year, but this limitation
19 shall not apply to cases where such officer, or appointee of the
20 township, is an employe of the person, firm or corporation to
21 which the money is to be paid in a capacity with no possible
22 influence on the transaction, and in which he cannot be possibly
23 benefited thereby, either financially or otherwise: Provided,
24 however, That in the case of a supervisor, if he knows that he
25 is within the exception just mentioned, he shall so inform the
26 supervisors and shall refrain from voting on the expenditures,
27 or any ordinance relating thereto, and shall in no manner
28 participate therein: Provided, further, That any such official
29 or appointee who shall knowingly violate this provision shall be
30 subject to surcharge to the extent of the damage shown to be
19750H1777B3703 - 4 -
1 thereby sustained by the township, ouster from office, and shall
2 be guilty of a misdemeanor, and upon conviction thereof, shall
3 be sentenced to pay a fine not exceeding five hundred dollars
4 ($500): Provided, That in the case of the purchase of material
5 for the construction, reconstruction, maintenance and
6 improvement of roads and bridges, the contract, which shall be
7 in writing, and shall be let only on standard specifications of
8 the Department of [Highways] Transportation, and materials so
9 purchased shall only be used in accordance with specifications
10 of said department.
11 Section 802.1. Evasion of Advertising Requirements.--No
12 supervisor or supervisors shall evade the provisions of section
13 eight hundred two as to advertising for bids, by purchasing or
14 contracting for services and personal properties piecemeal for
15 the purpose of obtaining prices under [one thousand five hundred
16 dollars] two thousand dollars TWO THOUSAND FIVE HUNDRED DOLLARS <--
17 TWO THOUSAND DOLLARS upon transactions which should, in the
18 exercise of reasonable discretion and prudence, be conducted as
19 one transaction amounting to more than [one thousand five
20 hundred dollars] two thousand dollars. TWO THOUSAND FIVE HUNDRED <--
21 DOLLARS. TWO THOUSAND DOLLARS. This provision is intended to
22 make unlawful the evading of advertising requirements by making
23 a series of purchases or contracts each for less than the
24 advertising requirement price, or by making several simultaneous
25 purchases or contracts, each below said price, when, in either
26 case, the transactions involved should have been made as one
27 transaction for one price. Any supervisors who so vote in
28 violation of this provision, and who know that the transaction
29 upon which they so vote is or ought to be part of a larger
30 transaction and that it is being divided in order to evade the
19750H1777B3703 - 5 -
1 requirements as to advertising for bids, shall be jointly and
2 severally subject to surcharge for ten per centum of the full
3 amount of the contract or purchase. Whenever it shall appear
4 that a supervisor may have voted in violation of this section,
5 but the purchase or contract on which he so voted was not
6 approved by the board of supervisors, this section shall be
7 inapplicable.
8 Section 2. This act shall take effect immediately. IN 60 <--
9 DAYS.
G7L58CVV/19750H1777B3703 - 6 -