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                                 HOUSE AMENDED
        PRIOR PRINTER'S NOS. 806, 1014, 2219          PRINTER'S NO. 2370

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 742 Session of 1989


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

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 26, 1990

                                     AN ACT

     1  Amending the act of August 9, 1955 (P.L.323, No.130), entitled
     2     "An act relating to counties of the third, fourth, fifth,
     3     sixth, seventh and eighth classes; amending, revising,
     4     consolidating and changing the laws relating thereto,"
     5     further regulating contracts and purchases as to bids and
     6     advertising; FURTHER PROVIDING FOR THE DISPLAY OF FLAGS; AND   <--
     7     PROVIDING A PENALTY.

     8     The General Assembly of the Commonwealth of Pennsylvania
     9  hereby enacts as follows:
    10     Section 1.  Sections 1801, 1802(a), (b) and (h) and 1803 of
    11  the act of August 9, 1955 (P.L.323, No.130), known as The County
    12  Code, amended December 22, 1981 (P.L.580, No.167), are amended
    13  to read:
    14     Section 1801.  Commissioners Sole Contractors for County.--    <--
    15  (A)  The county commissioners shall contract for and purchase     <--
    16  all services referred to in section five hundred eight and
    17  personal property for county officers and agencies. All
    18  contracts and purchases not in excess of [four thousand dollars
    19  ($4,000)] ten thousand dollars ($10,000) THE MONETARY THRESHOLD   <--

     1  LEVEL FOR THE COUNTY SHALL BE SUBJECT TO SECTION 1802(A.1) AND
     2  TEN THOUSAND DOLLARS ($10,000) shall be by note or memorandum,    <--
     3  in writing, signed by the county commissioners, or their agent.
     4  A copy of all such notes and memorandums and all written
     5  contracts shall be filed in the office of the controller, if
     6  any, and, if not, then with the chief clerk of the                <--
     7  commissioners. The commissioners shall, where possible,
     8  anticipate the needs of the NOT, THEN WITH THE CHIEF CLERK OF     <--
     9  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) BUT
    13  ARE LESS THAN THE AMOUNT REQUIRING ADVERTISEMENT AND COMPETITIVE
    14  BIDDING OR, IN LIEU OF PRICE QUOTATIONS, A MEMORANDUM SHALL BE
    15  KEPT ON FILE SHOWING THAT FEWER THAN THREE QUALIFIED CONTRACTORS
    16  EXIST IN THE MARKET AREA WITHIN WHICH IT IS PRACTICABLE TO
    17  OBTAIN QUOTATIONS. A WRITTEN RECORD OF TELEPHONIC PRICE
    18  QUOTATIONS SHALL BE MADE AND SHALL CONTAIN AT LEAST THE DATE OF
    19  THE QUOTATION, THE NAME OF THE CONTRACTOR AND THE CONTRACTOR'S
    20  REPRESENTATIVE, THE CONSTRUCTION, RECONSTRUCTION, REPAIR,
    21  MAINTENANCE OR WORK WHICH WAS THE SUBJECT OF THE QUOTATION AND
    22  THE PRICE. WRITTEN PRICE QUOTATIONS, WRITTEN RECORDS OF
    23  TELEPHONIC PRICE QUOTATIONS AND MEMORANDA SHALL BE RETAINED FOR
    24  A PERIOD OF THREE YEARS.
    25     (C)  THE COMMISSIONERS SHALL, WHERE POSSIBLE, ANTICIPATE THE
    26  NEEDS OF THE various officers and agencies of the county and
    27  endeavor to purchase in wholesale quantities, where practicable
    28  and where savings could be achieved thereby. The commissioners
    29  may make contracts and purchases for all purposes expressly or
    30  impliedly authorized by law.
    19890S0742B2370                  - 2 -

     1     Section 1802.  Contract Procedures; Terms and Bonds;
     2  Advertising for Bids.--(a)  All contracts for services and
     3  personal property where the amount thereof exceeds the sum of
     4  [four thousand dollars ($4,000)] ten thousand dollars ($10,000)   <--
     5  THE MONETARY THRESHOLD LEVEL FOR THE COUNTY TEN THOUSAND DOLLARS  <--
     6  ($10,000), shall be written and shall, except as otherwise
     7  hereinafter specified, be made by advertising for bids.
     8     (A.1)  THE MONETARY THRESHOLD LEVEL ABOVE WHICH COMPETITIVE    <--
     9  BIDDING SHALL BE REQUIRED SHALL BE ONE PER CENTUM (1%) OF THE
    10  TOTAL OF ALL BUDGETS ADMINISTERED BY THE COUNTY, BUT IN NO CASE
    11  SHALL THE MONETARY THRESHOLD BE LESS THAN FOUR THOUSAND DOLLARS
    12  ($4,000), NOR MORE THAN TEN THOUSAND DOLLARS ($10,000).
    13     (b)  Contracts or purchases in excess of [four thousand
    14  dollars ($4,000)] ten thousand dollars ($10,000) THE MONETARY     <--
    15  THRESHOLD LEVEL FOR THE COUNTY TEN THOUSAND DOLLARS ($10,000),    <--
    16  except those hereinafter mentioned, hall not be made except with
    17  and from the lowest responsible bidder, after due notice in one
    18  newspaper of general circulation, published or circulating in
    19  the county, at least three times at intervals of not less than
    20  three days where daily newspapers of general circulation are
    21  employed for such publication, or in case weekly newspapers are
    22  employed then the notice shall be published once a week for two
    23  successive weeks. The first advertisement shall be published not
    24  less than ten days prior to the date fixed for the opening of
    25  bids. The requirements of this subsection need not be followed
    26  in cases of emergency, but in such cases the actual emergency
    27  shall be declared and stated by resolution of the commissioners.
    28     * * *
    29     (h)  The contracts or purchases made by the commissioners
    30  involving an expenditure of over [four thousand dollars
    19890S0742B2370                  - 3 -

     1  ($4,000)] ten thousand dollars ($10,000)] THE MONETARY THRESHOLD  <--
     2  LEVEL FOR THE COUNTY TEN THOUSAND DOLLARS ($10,000) which shall   <--
     3  not require advertising or bidding, as hereinbefore provided,
     4  are as follows:
     5     (1)  Those for maintenance, repairs or replacements for
     6  water, electric light, or other public works of the county where
     7  they do not constitute new additions, extensions or enlargements
     8  of existing facilities and equipment. A bond may be required by
     9  the commissioners as in other cases for work done.
    10     (2)  Those made for improvements, repairs and maintenance of
    11  any kind, made or provided by the county through its own
    12  employes. This shall not apply to construction materials used in
    13  a street improvement.
    14     (3)  Those where particular types, models or pieces of new
    15  equipment, articles, apparatus, appliances, vehicles or parts
    16  thereof, are desired by the commissioners, which are patented
    17  and manufactured or copyrighted products.
    18     (4)  Those involving any policies of insurance or surety
    19  company bonds, those made for public utility service under
    20  tariffs on file with the Pennsylvania Public Utility Commission,
    21  those made with another political subdivision, the Commonwealth
    22  of Pennsylvania, the Federal Government, any agency of the
    23  Commonwealth or the Federal Government or any municipal
    24  authority, including the sale, leasing or loan of any supplies
    25  or materials by the Commonwealth or the Federal Government or
    26  their agencies, but the price thereof shall not be in excess of
    27  that fixed by the Commonwealth, or the Federal Government, or
    28  their respective agencies.
    29     (5)  Those involving services of members of the medical or
    30  legal profession, registered architects, engineers, certified
    19890S0742B2370                  - 4 -

     1  public accountants or other personal services involving
     2  professional expert advice.
     3     (6)  Those involving contracts entered into by nonprofit
     4  cooperative hospital service associations for hospitals and
     5  nursing homes which are part of the institutional district or
     6  which are owned by the county; operated by the county; or
     7  affiliated with the county by the purchasing of, or
     8  participating in contracts for, materials, supplies and
     9  equipment.
    10     * * *
    11     Section 1803.  Evasion of Advertising Requirements.--(A)  No   <--
    12  commissioner or commissioners shall evade the provisions of
    13  section one thousand eight hundred two of this act, as to
    14  advertising for bids or purchasing or contracting for services
    15  and personal properties piece-meal, for the purpose of obtaining
    16  prices under [four thousand dollars ($4,000)] ten thousand        <--
    17  dollars ($10,000) THE MONETARY THRESHOLD LEVEL FOR THE COUNTY     <--
    18  TEN THOUSAND DOLLARS ($10,000) upon transactions which should in  <--
    19  the exercise of reasonable discretion and prudence be conducted
    20  as one transaction amounting to more than [four thousand dollars
    21  ($4,000)] ten thousand dollars ($10,000) THE MONETARY THRESHOLD   <--
    22  LEVEL FOR THE COUNTY TEN THOUSAND DOLLARS ($10,000). This         <--
    23  provision is intended to make unlawful the practice of evading
    24  advertising requirements by making a series of purchases or
    25  contracts each for less than the advertising requirement price,
    26  or by making several simultaneous purchases or contracts each
    27  below said price, when in either case the transaction involved
    28  should have been made as one transaction for one price. Any
    29  county commissioners who so vote in violation of this provision
    30  and who know that the transaction upon which they so vote is or
    19890S0742B2370                  - 5 -

     1  ought to be a part of a larger transaction and that it is being
     2  divided in order to evade the requirements as to advertising for
     3  bids shall be, jointly and severally, subject to surcharge for
     4  any loss sustained. Wherever it shall appear that a commissioner
     5  may have voted in violation of this section, but the purchase or
     6  contract on which he so voted was not approved by the board of
     7  county commissioners, this section shall be inapplicable.
     8     (B)  ANY COUNTY COMMISSIONER WHO VOTES TO UNLAWFULLY EVADE     <--
     9  THE PROVISIONS OF SECTION ONE THOUSAND EIGHT HUNDRED TWO OF THIS
    10  ACT AND WHO KNOWS THAT THE TRANSACTION UPON WHICH HE SO VOTES IS
    11  OR OUGHT TO BE A PART OF A LARGER TRANSACTION AND THAT IT IS
    12  BEING DIVIDED IN ORDER TO EVADE THE REQUIREMENTS AS TO
    13  ADVERTISING FOR BIDS, COMMITS A MISDEMEANOR OF THE THIRD DEGREE
    14  FOR EACH CONTRACT ENTERED INTO AS A DIRECT RESULT OF THAT VOTE.
    15  THIS PENALTY SHALL BE IN ADDITION TO ANY SURCHARGE WHICH MAY BE
    16  ASSESSED PURSUANT TO SUBSECTION (A).
    17     Section 2.  Sections 2317 and 2670 SECTION 2317 of the act,    <--
    18  amended December 22, 1981 (P.L.580, No.167), are IS amended to    <--
    19  read:
    20     Section 2317.  Separate Bids for Plumbing, Heating,
    21  Ventilating, Electrical Work, Elevators and Moving Stairs.--In
    22  the preparation of specifications for the erection, construction
    23  and alteration of any public building, when the entire cost of
    24  such work shall exceed [four thousand dollars ($4000)] ten        <--
    25  thousand dollars ($10,000) THE MONETARY THRESHOLD LEVEL FOR THE   <--
    26  COUNTY TEN THOUSAND DOLLARS ($10,000) the architect, engineer or  <--
    27  other person preparing such specifications shall prepare only
    28  the following separate specifications: (1) plumbing, (2)
    29  heating, (3) ventilating, (4) electrical work, (5) elevators and
    30  moving stairs, and (6) one complete set of specifications for
    19890S0742B2370                  - 6 -

     1  all the other work to be done in such erection, construction and
     2  alteration. The board of commissioners shall receive separate
     3  bids upon each of the said branches of work and award the
     4  contract for the same to the lowest responsible bidder for each
     5  of said branches, including the balance of the work in addition
     6  to the plumbing, heating, ventilating and electrical work, and
     7  elevators and moving stairs. Where it is desired to install an
     8  air conditioning unit, the heating and ventilating so involved
     9  may be regarded as one branch of work having only one set of
    10  specifications, and bids may be received and a contract awarded
    11  thereon, as hereinbefore provided.
    12     SECTION 3.  SECTION 2327 OF THE ACT IS AMENDED TO READ:        <--
    13     SECTION 2327.  DISPLAY OF MUNICIPAL FLAGS ON COUNTY BUILDINGS
    14  AUTHORIZED.--IT SHALL BE LAWFUL TO DISPLAY THE FLAG OF ANY
    15  COUNTY, CITY, BOROUGH OR OTHER MUNICIPALITY IN THE COMMONWEALTH
    16  OR THE OFFICIAL POW/MIA FLAG ON THE PUBLIC BUILDINGS OR GROUNDS
    17  OF ANY COUNTY.
    18     SECTION 4.  SECTION 2670 OF THE ACT, AMENDED DECEMBER 22,
    19  1981 (P.L.580, NO.167), IS AMENDED TO READ:
    20     Section 2670.  Building or Repair of Bridges.--In addition to
    21  the provisions of Articles XVIII and XXIII of this act relating
    22  to contracting for services and personal property, whenever the
    23  county commissioners propose to build or repair a bridge at a
    24  cost in excess of [four thousand dollars ($4000)] ten thousand    <--
    25  dollars ($10,000) THE MONETARY THRESHOLD LEVEL FOR THE COUNTY     <--
    26  TEN THOUSAND DOLLARS ($10,000) their advertisements for bids      <--
    27  shall contain the description of the repairs, or designs of the
    28  kind of bridge, required. When the contract is for the building
    29  of a bridge, the designs and specifications therefor, or a copy
    30  thereof, shall be kept in the office of the county
    19890S0742B2370                  - 7 -

     1  commissioners, open to the inspection of all intending bidders
     2  during such advertising and the time specified therein for the
     3  reception of bids. In the case of a bridge to be erected over a
     4  stream upon the line between two adjoining counties, the
     5  advertising shall be done in each of said counties, and a copy
     6  of the plans and specifications shall be kept in the
     7  commissioners' office of each county. The time of filing bids
     8  and the person's name with whom filed must be marked on the
     9  outside of said bids.
    10     Section 3 5.  This act shall take effect in 60 days.           <--














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