PRIOR PRINTER'S NO. 2998                      PRINTER'S NO.3178

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2352 Session of 1978


        INTRODUCED BY MESSRS. IRVIS AND MEBUS, APRIL 11, 1978

        AS REPORTED FROM COMMITTEE ON URBAN AFFAIRS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, MAY 22, 1978

                                     AN ACT

     1  Amending the act of June 24, 1931 (P.L.1206, No.331), entitled
     2     "An act concerning townships of the first class; amending,
     3     revising, consolidating, and changing the law relating
     4     thereto," further regulating contracts, advertisements,
     5     specifications, and bids for certain contracts.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8     Section 1.  Subsection (a) and the first paragraph and clause
     9  (2) of subsection (d) of section 1802 and section 1802.1, act of
    10  June 24, 1931 (P.L.1206, No.331), known as "The First Class
    11  Township Code," reenacted and amended May 27, 1949 (P.L.1955,
    12  No.569), and amended November 23, 1976 (P.L.1135, No.243), are
    13  amended AND THE SECTION IS AMENDED BY ADDING A SUBSECTION to      <--
    14  read:
    15     Section 1802.  General Regulations Concerning Contracts.--(a)
    16  All contracts or purchases made by any township, involving the
    17  expenditure of over [two thousand dollars,] five thousand         <--
    18  dollars TWO THOUSAND FIVE HUNDRED DOLLARS except those            <--
    19  hereinafter mentioned, shall not be made except with and from


     1  the lowest responsible bidder, shall be in writing, and shall be
     2  made only after notice by the secretary, published, in one
     3  newspaper of general circulation, published or circulating in
     4  the county in which the township is situated, at least three
     5  times at intervals of not less than three days where daily
     6  newspapers of general circulation are employed for such
     7  publication, or in case weekly newspapers are employed then the
     8  notice shall be published once a week for two successive weeks.
     9  The first advertisement shall be published not less than ten
    10  days prior to the date fixed for the opening of bids. All plans
    11  and specifications shall be on file at least ten days in advance
    12  of opening bids. The amount of the contract shall in all cases,
    13  whether of straight sale price, conditional sale, bailment
    14  lease, or otherwise, be the entire amount which the township
    15  pays to the successful bidder or his assigns in order to obtain
    16  the services or property, or both, and shall not be construed to
    17  mean only the amount which is paid to acquire title or to
    18  receive any other particular benefit or benefits of the whole
    19  bargain.
    20     * * *
    21     (d)  The contracts or purchases made by the commissioners
    22  involving an expenditure of over [two thousand dollars] five      <--
    23  thousand dollars, TWO THOUSAND FIVE HUNDRED DOLLARS, which shall  <--
    24  not require advertising or bidding, as hereinbefore provided,
    25  are as follows:
    26     * * *
    27     (2)  Those made for improvements, repairs and maintenance of
    28  any kind made or provided by any township through its own
    29  employes: Provided, however, That all materials used for street
    30  improvement, maintenance, and/or construction in excess of [two
    19780H2352B3178                  - 2 -

     1  thousand dollars] five thousand dollars TWO THOUSAND FIVE         <--
     2  HUNDRED DOLLARS be subject to the advertising requirements as
     3  contained herein.
     4     * * *
     5     (E)  EVERY CONTRACT FOR THE CONSTRUCTION, RECONSTRUCTION,      <--
     6  REPAIR, IMPROVEMENT OR MAINTENANCE OF PUBLIC WORKS SHALL CONTAIN
     7  A PROVISION THAT ANY STEEL PRODUCTS USED OR SUPPLIED IN THE
     8  PERFORMANCE OF THE CONTRACT OR ANY SUBCONTRACTS THEREUNDER SHALL
     9  BE FROM STEEL MADE IN THE UNITED STATES.
    10     Section 1802.1.  Evasion of Advertising Requirements.--No
    11  commissioner or commissioners shall evade the provisions of
    12  section one thousand eight hundred two as to advertising for
    13  bids, by purchasing or contracting for services and personal
    14  properties piecemeal for the purpose of obtaining prices under
    15  [two thousand dollars] five thousand dollars TWO THOUSAND FIVE    <--
    16  HUNDRED DOLLARS upon transactions, which transactions should, in
    17  the exercise of reasonable discretion and prudence, be conducted
    18  as one transaction amounting to more than [two thousand dollars]
    19  five thousand dollars. TWO THOUSAND FIVE HUNDRED DOLLARS. This    <--
    20  provision is intended to make unlawful the evading of
    21  advertising requirements by making a series of purchases or
    22  contracts each for less than the advertising requirement price,
    23  or by making several simultaneous purchases or contracts, each
    24  below said price, when in either case, the transactions involved
    25  should have been made as one transaction for one price. Any
    26  commissioners who so vote in violation of this provision, and
    27  who know that the transaction upon which they so vote is or
    28  ought to be a part of a larger transaction, and that it is being
    29  divided in order to evade the requirements as to advertising for
    30  bids, shall be jointly and severally subject to surcharge for
    19780H2352B3178                  - 3 -

     1  ten per centum of the full amount of the contract or purchase.
     2  Whenever it shall appear that a commissioner may have voted in
     3  violation of this section, but the purchase or contract on which
     4  he so voted was not approved by the board of commissioners, this
     5  section shall be inapplicable.
     6     SECTION 2.  THE PROVISIONS OF THIS ACT SHALL BE CONSTRUED IN   <--
     7  A MANNER CONSISTENT WITH THE ACT OF MARCH 3, 1978 (NO.3), KNOWN
     8  AS THE "STEEL PRODUCTS PROCUREMENT ACT."
     9     Section 2. 3.  This act shall take effect in 60 days.          <--














    D4L58RAW/19780H2352B3178         - 4 -