SENATE AMENDED
        PRIOR PRINTER'S NOS. 2287, 3159               PRINTER'S NO. 3705

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1784 Session of 1975


        INTRODUCED BY MESSRS. DeMEDIO, RITTER, FRYER, 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 2, 1945 (P.L.382, No.164), entitled "An
     2     act providing for the incorporation as bodies corporate and
     3     politic of 'Authorities' for municipalities, counties and
     4     townships; prescribing the rights, powers and duties of such
     5     Authorities heretofore or hereafter incorporated; authorizing
     6     such Authorities to acquire, construct, improve, maintain and
     7     operate projects, and to borrow money and issue bonds
     8     therefor; providing for the payment of such bonds, and
     9     prescribing the rights of the holders thereof; conferring the
    10     right of eminent domain on such Authorities; authorizing such
    11     Authorities to enter into contracts with and to accept grants
    12     from the Federal Government or any agency thereof; and
    13     conferring exclusive jurisdiction on certain courts over
    14     rates," regulating contract procedures and advertising for
    15     bids.

    16     The General Assembly of the Commonwealth of Pennsylvania
    17  hereby enacts as follows:
    18     Section 1.  Subsections A and B of section 10, act of May 2,
    19  1945 (P.L.382, No.164), known as the "Municipality Authorities
    20  Act of 1945," amended September 1, 1967 (P.L.293, No.122), are
    21  amended to read:
    22     Section 10.  Competition in Award of Contracts.--A.  All
    23  construction, reconstruction, repairs or work of any nature made


     1  by any Authority, where the entire cost, value or amount of such
     2  construction, reconstruction, repairs or work, including labor
     3  and materials, shall exceed [one thousand five hundred dollars
     4  ($1500)] two thousand dollars ($2,000) TWO THOUSAND FIVE HUNDRED  <--
     5  DOLLARS ($2,500), TWO THOUSAND DOLLARS ($2,000), except
     6  construction, reconstruction, repairs or work done by employes
     7  of said Authority, or by labor supplied under agreement with any
     8  Federal or State agency, with supplies and materials purchased
     9  as hereinafter provided, shall be done only under contract or
    10  contracts to be entered into by the Authority with the lowest
    11  responsible bidder upon proper terms, after due public notice
    12  has been given asking for competitive bids as hereinafter
    13  provided. No contract shall be entered into for construction or
    14  improvement or repair of any project or portion thereof, unless
    15  the contractor shall give an undertaking with a sufficient
    16  surety or sureties approved by the Authority, and in an amount
    17  fixed by the Authority, for the faithful performance of the
    18  contract. All such contracts shall provide among other things
    19  that the person or corporation entering into such contract with
    20  the Authority will pay for all materials furnished and services
    21  rendered for the performance of the contract, and that any
    22  person or corporation furnishing such materials or rendering
    23  such services may maintain an action to recover for the same
    24  against the obligor in the undertaking, as though such person or
    25  corporation was named therein, provided the action is brought
    26  within one year after the time the cause of action accrued.
    27  Nothing in this section shall be construed to limit the power of
    28  the Authority to construct, repair or improve any project or
    29  portion thereof, or any addition, betterment or extension
    30  thereto, directly by the officers, agents and employes of the
    19750H1784B3705                  - 2 -

     1  Authority, or otherwise than by contract.
     2     B.  All supplies and materials costing [one thousand five
     3  hundred dollars ($1500)] two thousand dollars ($2,000) TWO        <--
     4  THOUSAND FIVE HUNDRED DOLLARS ($2,500), TWO THOUSAND DOLLARS
     5  ($2,000), or more shall be purchased only after due
     6  advertisement as hereinafter provided. Authority shall accept
     7  the lowest bid or bids, kind, quality and material being equal,
     8  but the Authority shall have the right to reject any or all bids
     9  or select a single item from any bid. The provisions as to
    10  bidding shall not apply to the purchase of patented and
    11  manufactured products offered for sale in a noncompetitive
    12  market or solely by a manufacturer's authorized dealer.
    13     * * *
    14     Section 2.  This act shall take effect immediately IN 60       <--
    15  DAYS.










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