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        PRIOR PRINTER'S NO. 2506                      PRINTER'S NO. 3250

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1864 Session of 2005


        INTRODUCED BY ROSS, HERMAN, LESCOVITZ, BIANCUCCI, HANNA,
           M. KELLER, HARHAI, HICKERNELL, O'NEILL, KAUFFMAN, HENNESSEY,
           HARPER, PETRI, T. STEVENSON, McNAUGHTON, GINGRICH, ARMSTRONG,
           BALDWIN, BOYD, CAPPELLI, DALLY, DENLINGER, DeWEESE, FRANKEL,
           GEIST, HARRIS, HERSHEY, McILHATTAN, PHILLIPS, SCAVELLO AND
           WATSON, JULY 3, 2005

        AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
           REPRESENTATIVES, AS AMENDED, DECEMBER 6, 2005

                                     AN ACT

     1  Amending the act of August 7, 1936 (1st Sp.Sess., P.L.106,
     2     No.46), entitled, as reenacted and amended, "An act relating
     3     to flood control; prescribing the powers and duties of the
     4     Water and Power Resources Board of the Department of Forests
     5     and Waters in relation to the creation of flood control
     6     districts, adoption of plans for flood control works and
     7     improvements, carrying into effect of such plans, assistance,
     8     aid and cooperation with public and private agencies and the
     9     Federal Government in Federal flood control works and
    10     improvements, and entering into compacts and agreements with
    11     other states for flood control works and improvements;
    12     conferring the power of eminent domain; providing for the
    13     setting off of benefits; imposing certain charges upon the
    14     Commonwealth; providing for appeals; and conferring certain
    15     powers on municipalities, counties, and townships, and the
    16     Department of Highways," further providing for contracts and
    17     acquisition of property; and providing for annual adjustment
    18     AND FOR EVASION OF ADVERTISING REQUIREMENTS.                   <--

    19     The General Assembly of the Commonwealth of Pennsylvania
    20  hereby enacts as follows:
    21     Section 1.  Section 10 of the act of August 7, 1936 (1st
    22  Sp.Sess., P.L.106, No.46), referred to as the Flood Control Law,
    23  reenacted and amended March 10, 1937 (P.L.43, No.18), and


     1  amended December 22, 1981 (P.L.551, No.162), is amended to read:
     2     Section 10.  Contracts and Acquisition of Property.--All work
     3  of any character whatever performed by the board under the
     4  authority of this act, except as hereinafter provided, in
     5  connection with any State public flood control works and
     6  improvements, involving an expenditure of more than [four
     7  thousand dollars] twenty-five EIGHTEEN thousand dollars subject   <--
     8  to annual adjustment under section 10.1, shall be performed
     9  under written contract let by the board to the lowest
    10  responsible bidder after due advertisement as prescribed by the
    11  board; except, however, that the board may, with the approval of
    12  the Governor, enter into contracts or agreements, without
    13  advertisement, with any person, corporation or municipality,
    14  covering the removal or relocation of gas, water, and telephone,
    15  telegraph, electric light, and electric power lines, highways,
    16  railroads, or other facilities, and providing therein for said
    17  removal or relocation by the person, corporation or municipality
    18  owning such facility. The board may, with the approval of the
    19  Governor, acquire any necessary easements and rights-of-way and
    20  may pay all costs and damages necessary, arising from and
    21  incidental to said removal or relocation. Payment shall be made
    22  from the General Fund Appropriations for Flood Control Projects.
    23     The board may sell, lease, or otherwise dispose of all
    24  property, real, personal or mixed, acquired under the provisions
    25  of this act, not needed by the Commonwealth for reservoir or
    26  flood control purposes, subject to the approval of the Governor.
    27  The moneys received through such sale, lease or other
    28  disposition shall accrue to the General Fund.
    29     Every contract for the construction, reconstruction,
    30  alteration, repair, improvement or maintenance of public works
    20050H1864B3250                  - 2 -     

     1  shall comply with the provisions of the act of March 3, 1978
     2  (P.L.6, No.3), known as the "Steel Products Procurement Act."
     3     Section 2.  The act is amended by adding a section SECTIONS    <--
     4  to read: period of three years.                                   <--
     5     Section 10.1.  Annual Adjustment.--(a)  The Department of      <--
     6  Labor and Industry shall determine the percentage change in the
     7  Consumer Price Index for All Urban Consumers for the twelve-
     8  month period ending September 30 of the calendar year in which
     9  this section becomes effective, and for each successive twelve-
    10  month period thereafter. ANNUALLY, BEGINNING WITH THE YEAR IN     <--
    11  WHICH THIS SUBSECTION BECOMES APPLICABLE TO CONTRACTS AND
    12  PURCHASES, THE DEPARTMENT OF LABOR AND INDUSTRY SHALL CALCULATE
    13  THE PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX FOR ALL URBAN
    14  CONSUMERS (CPI-U) FOR THE UNITED STATES CITY AVERAGE FOR ALL
    15  ITEMS AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR,
    16  BUREAU OF LABOR STATISTICS, FOR THE TWELVE-MONTH AVERAGE ENDING
    17  IN SEPTEMBER OF THE PRIOR YEAR.
    18     (b)  The amount at which competitive bidding is required
    19  under section 10 shall be adjusted annually. The positive
    20  percentage change, as determined in accordance with subsection
    21  (a), shall be multiplied by the amount applicable under section
    22  10 for the current year and the product thereof shall be added
    23  to the amount applicable under section 10 for the current year,
    24  with the result rounded to the nearest multiple of ten dollars.
    25     (c)  The annual determination required under subsection (a)
    26  and the calculation of the adjustments required under subsection
    27  (b) shall be made in the period between October 1 and November
    28  15 of the year following the effective date of this section, and
    29  annually between October 1 and November 15 of each successive
    30  year.
    20050H1864B3250                  - 3 -     

     1     (d)  The adjusted amounts obtained in accordance with
     2  subsection (b) shall become effective January 1 for the calendar
     3  year following the year in which the determination required
     4  under subsection (a) is made.
     5     (e)  The Department of Labor and Industry shall give notice
     6  in the Pennsylvania Bulletin prior to January 1 of each calendar
     7  year of the annual percentage change determined in accordance
     8  with subsection (a) and the amounts, whether adjusted or
     9  unadjusted in accordance with subsection (b), at which
    10  competitive bidding is required under section 10 for the
    11  calendar year beginning the first day of January after
    12  publication of the notice.
    13     SECTION 10.2.  EVASION OF ADVERTISING REQUIREMENTS.--NO BOARD  <--
    14  MEMBER SHALL EVADE THE PROVISIONS OF SECTION 10 AS TO
    15  ADVERTISING FOR BIDS, BY PURCHASING OR CONTRACTING FOR SERVICES
    16  AND PERSONAL PROPERTIES PIECEMEAL TO OBTAIN PRICES UNDER THE
    17  REQUIRED ADVERTISING PRICE, SUBJECT TO ANNUAL ADJUSTMENT UNDER
    18  SECTION 10.1. THIS PROVISION IS INTENDED TO MAKE UNLAWFUL THE
    19  EVADING OF ADVERTISING REQUIREMENTS BY MAKING A SERIES OF
    20  PURCHASES OR CONTRACTS EACH FOR LESS THAN THE ADVERTISING
    21  REQUIREMENT PRICE, OR BY MAKING SEVERAL SIMULTANEOUS PURCHASES
    22  OR CONTRACTS, EACH BELOW SAID PRICE, WHEN IN EITHER CASE, THE
    23  TRANSACTIONS INVOLVED SHOULD HAVE BEEN MADE AS ONE TRANSACTION
    24  FOR ONE PRICE. ANY BOARD MEMBERS WHO SO VOTE IN VIOLATION OF
    25  THIS PROVISION, AND WHO KNOW THAT THE TRANSACTION UPON WHICH
    26  THEY SO VOTE IS OR OUGHT TO BE A PART OF A LARGER TRANSACTION,
    27  AND THAT IT IS BEING DIVIDED IN ORDER TO EVADE THE REQUIREMENTS
    28  AS TO ADVERTISING FOR BIDS, SHALL BE JOINTLY AND SEVERALLY
    29  SUBJECT TO SURCHARGE FOR TEN PER CENTUM (10%) OF THE FULL AMOUNT
    30  OF THE CONTRACT OR PURCHASE. WHENEVER IT SHALL APPEAR THAT A
    20050H1864B3250                  - 4 -     

     1  BOARD MEMBER MAY HAVE VOTED IN VIOLATION OF THIS SECTION, BUT
     2  THE PURCHASE OR CONTRACT ON WHICH THE MEMBER SO VOTED WAS NOT
     3  APPROVED BY THE BOARD, THIS SECTION SHALL BE INAPPLICABLE.
     4     Section 3.  This act shall apply to contracts and purchases
     5  advertised on or after January 1 of the year following the
     6  effective date of this section.
     7     Section 4.  This act shall take effect immediately.
















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