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        PRIOR PRINTER'S NO. 805                       PRINTER'S NO. 1657

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 741 Session of 1989


        INTRODUCED BY STOUT, CORMAN, STEWART, BRIGHTBILL, PUNT, LEMMOND,
           PORTERFIELD, MADIGAN, AFFLERBACH, REIBMAN AND PETERSON,
           MARCH 21, 1989

        SENATOR PECORA, LOCAL GOVERNMENT, AS AMENDED, OCTOBER 24, 1989

                                     AN ACT

     1  Amending the act of July 29, 1953 (P.L.1034, No.270), entitled,
     2     as amended, "An act creating as bodies corporate and politic
     3     'Public Auditorium Authorities' in counties of the second
     4     class and in cities of the second class and in cities of the
     5     second class A to borrow money and issue bonds therefor;
     6     providing for the payment of such bonds and prescribing the
     7     rights of the holders thereof; conferring the right of
     8     eminent domain on such Authorities; empowering such
     9     Authorities to enter into contracts, leases and licenses with
    10     and to accept grants from private sources, the Federal
    11     Government, State, political subdivisions of the State or any
    12     agency thereof; authorizing the making of said grants from
    13     bond funds or current revenues; authorizing Authorities to
    14     collect rentals, admissions, license fees for the use of the
    15     project; exempting the property and securities of such Public
    16     Auditorium Authorities from taxation," increasing the amount
    17     of contracts that may be awarded without competitive bids;
    18     and further providing for the purchase of supplies and
    19     materials.

    20     The General Assembly of the Commonwealth of Pennsylvania
    21  hereby enacts as follows:
    22     Section 1.  Subsections A and B of section SECTION 11 of the   <--
    23  act of July 29, 1953 (P.L.1034, No.270), known as the Public
    24  Auditorium Authorities Law, amended OR ADDED OCTOBER 4, 1978      <--
    25  (P.L.1055, NO.244) AND December 22, 1981 (P.L.549, No.161), are   <--
    26  IS amended to read:                                               <--

     1     Section 11.  Competition in Award of Contracts.
     2     A.  All construction, reconstruction, repairs or work of any
     3  nature made by any Authority, where the entire cost, value or
     4  amount of such construction, reconstruction, repairs or work,
     5  including labor and materials, shall exceed [four thousand
     6  dollars ($4,000.00)] ten thousand dollars ($10,000), except
     7  construction, reconstruction, repairs or work done by employes
     8  of said Authority or by labor supplied under agreement with any
     9  Federal or State agency with supplies and materials purchased,
    10  as hereinafter provided, shall be done only under contract or
    11  contracts to be entered into by the Authority with the lowest
    12  responsible bidder upon proper terms, after due public notice
    13  has been given asking for competitive bids hereinafter provided.
    14  No contract shall be entered into for construction or
    15  improvement or repair of any project or portion thereof unless
    16  the contractor shall give an undertaking, with a sufficient
    17  surety or sureties approved by the Authority and in an amount
    18  fixed by the Authority, for the faithful performance of the
    19  contract. All such contracts shall provide, among other things,
    20  that the person or corporation entering into such contract with
    21  the Authority will pay for all materials furnished and services
    22  rendered for the performance of the contract and that any person
    23  or corporation furnishing such materials or rendering such
    24  services may maintain an action to recover for the same against
    25  the obligor in the undertaking as though such person or
    26  corporation was named therein, provided the action is brought
    27  within one year after the time the cause of action accrued.
    28  Nothing in this section shall be construed to limit the power of
    29  the Authority to construct, repair or improve any project or
    30  portion thereof or any addition, betterment or extension thereto
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     1  directly by the officers, agents and employes of the Authority
     2  or otherwise than by contract.
     3     B.  All supplies and materials costing [four thousand dollars
     4  ($4,000.00)] ten thousand dollars ($10,000) or more shall be
     5  purchased only after due advertisement as hereinafter provided.
     6  The Authority shall accept the lowest bid or bids, kinds,
     7  quality and material being equal, but the Authority shall have
     8  the right to reject any or all bids or select a single item from
     9  any bid. The provisions as to bidding shall not apply to the
    10  purchase of patented and manufactured products offered for sale
    11  in a non-competitive market or solely by a manufacturer's
    12  authorized dealer.
    13     * * *                                                          <--
    14     C.  THE TERMS, ADVERTISEMENT OR DUE PUBLIC NOTICE, WHEREVER    <--
    15  USED IN THIS SECTION, SHALL MEAN A NOTICE PUBLISHED AT LEAST TEN
    16  (10) DAYS BEFORE THE AWARD ON ANY CONTRACT IN A NEWSPAPER OF
    17  GENERAL CIRCULATION PUBLISHED IN THE MUNICIPALITY WHERE THE
    18  AUTHORITY HAS ITS PRINCIPAL OFFICE, AND IF NO NEWSPAPER IS
    19  PUBLISHED THEREIN THEN BY PUBLICATION IN A NEWSPAPER IN THE
    20  COUNTY WHERE THE AUTHORITY HAS ITS PRINCIPAL OFFICE: PROVIDED,
    21  THAT SUCH NOTICE MAY BE WAIVED WHERE THE AUTHORITY DETERMINES AN
    22  EMERGENCY EXISTS AND SUCH SUPPLIES AND MATERIALS MUST BE
    23  IMMEDIATELY PURCHASED BY THE SAID AUTHORITY.
    24     D.  NO MEMBER OF THE AUTHORITY OR OFFICER OR EMPLOYE THEREOF
    25  SHALL, EITHER DIRECTLY OR INDIRECTLY, BE A PARTY TO OR BE IN ANY
    26  MANNER INTERESTED IN ANY CONTRACT OR AGREEMENT WITH THE
    27  AUTHORITY FOR ANY MATTER, CAUSE OR THING WHATSOEVER, BY REASON
    28  WHEREOF ANY LIABILITY OR INDEBTEDNESS SHALL IN ANY WAY BE
    29  CREATED AGAINST SUCH AUTHORITY. IF ANY CONTRACT OR AGREEMENT
    30  SHALL BE MADE IN VIOLATION OF THE PROVISION OF THIS SECTION, THE
    19890S0741B1657                  - 3 -

     1  SAME SHALL BE NULL AND VOID AND NO ACTION SHALL BE MAINTAINED
     2  THEREON AGAINST SUCH AUTHORITY.
     3     E.  SUBJECT TO THE AFORESAID, ANY AUTHORITY MAY (BUT WITHOUT
     4  INTENDING BY THIS PROVISION TO LIMIT ANY POWERS OF SUCH
     5  AUTHORITY) ENTER INTO AND CARRY OUT SUCH CONTRACTS OR ESTABLISH
     6  OR COMPLY WITH SUCH RULES AND REGULATIONS CONCERNING LABOR AND
     7  MATERIALS AND OTHER RELATED MATTERS, IN CONNECTION WITH ANY
     8  PROJECT OR PORTION THEREOF, AS THE AUTHORITY MAY DEEM DESIRABLE,
     9  OR AS MAY BE REQUESTED BY ANY FEDERAL AGENCY THAT MAY ASSIST IN
    10  THE FINANCING OF SUCH PROJECT OR ANY PART THEREOF: PROVIDED,
    11  HOWEVER, THAT THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO
    12  ANY CASE IN WHICH THE AUTHORITY HAS TAKEN OVER BY TRANSFER OR
    13  ASSIGNMENT ANY CONTRACT AUTHORIZED TO BE ASSIGNED TO IT UNDER
    14  THE PROVISIONS OF SECTION TEN OF THIS ACT, NOR TO ANY CONTRACT
    15  IN CONNECTION WITH THE CONSTRUCTION OF ANY PROJECT WHICH THE
    16  AUTHORITY MAY HAVE HAD TRANSFERRED TO IT BY ANY PERSON OR
    17  PRIVATE CORPORATION.
    18     F.  EVERY CONTRACT FOR THE CONSTRUCTION, RECONSTRUCTION,
    19  ALTERATION, REPAIR, IMPROVEMENT OR MAINTENANCE OF PUBLIC WORKS
    20  SHALL COMPLY WITH THE PROVISIONS OF THE ACT OF MARCH 3, 1978
    21  (P.L.6, NO.3), KNOWN AS THE "STEEL PRODUCTS PROCUREMENT ACT."
    22     G.  AN AUTHORITY SHALL NOT EVADE THE PROVISIONS OF THIS
    23  SECTION AS TO ADVERTISING FOR BIDS OR PURCHASING MATERIALS OR
    24  CONTRACTING FOR SERVICES PIECE-MEAL, FOR THE PURPOSE OF
    25  OBTAINING PRICES UNDER TEN THOUSAND DOLLARS ($10,000) UPON
    26  TRANSACTIONS WHICH SHOULD IN THE EXERCISE OF REASONABLE
    27  DISCRETION AND PRUDENCE BE CONDUCTED AS ONE TRANSACTION
    28  AMOUNTING TO MORE THAN TEN THOUSAND DOLLARS ($10,000). THIS
    29  PROVISION IS INTENDED TO MAKE UNLAWFUL THE PRACTICE OF EVADING
    30  ADVERTISING REQUIREMENTS BY MAKING A SERIES OF PURCHASES OR
    19890S0741B1657                  - 4 -

     1  CONTRACTS EACH FOR LESS THAN THE ADVERTISING REQUIREMENT PRICE,
     2  OR BY MAKING SEVERAL SIMULTANEOUS PURCHASES OR CONTRACTS EACH
     3  BELOW SAID PRICE, WHEN IN EITHER CASE THE TRANSACTION INVOLVED
     4  SHOULD HAVE BEEN MADE AS ONE TRANSACTION FOR ONE PRICE.
     5     Section 2.  This act shall take effect in 60 days.

















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