PRIOR PRINTER'S NO. 2511 PRINTER'S NO. 3255
No. 1869 Session of 2005
INTRODUCED BY PAYNE, HERMAN, LESCOVITZ, HANNA, M. KELLER,
HARHAI, HICKERNELL, O'NEILL, KAUFFMAN, ROSS, HARPER, PETRI,
T. STEVENSON, McNAUGHTON, GINGRICH, HENNESSEY, BIANCUCCI,
ARMSTRONG, BALDWIN, BOYD, CAPPELLI, DALLY, DENLINGER,
DeWEESE, FRANKEL, GEIST, HARRIS, HERSHEY, McILHATTAN,
PHILLIPS, PICKETT, 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 May 28, 1937 (P.L.955, No.265), entitled, as
2 amended, "An act to promote public health, safety, morals,
3 and welfare by declaring the necessity of creating public
4 bodies, corporate and politic, to be known as housing
5 authorities to engage in slum clearance, and to undertake
6 projects, to provide dwelling accommodations for persons of
7 low income; providing for the organization of such housing
8 authorities; defining their powers and duties; providing for
9 the exercise of such powers, including the acquisition of
10 property by purchase, gift or eminent domain, the renting and
11 selling of property, and including borrowing money, issuing
12 bonds, and other obligations, and giving security therefor;
13 prescribing the remedies of obligees of housing authorities;
14 authorizing housing authorities to enter into agreements,
15 including agreements with the United States, the
16 Commonwealth, and political subdivisions and municipalities
17 thereof; defining the application of zoning, sanitary, and
18 building laws and regulations to projects built or maintained
19 by such housing authorities; exempting the property and
20 securities of such housing authorities from taxation; and
21 imposing duties and conferring powers upon the State Planning
22 Board, and certain other State officers and departments,"
23 further providing for awards of contracts, completion bond,
24 additional bond for protection of materialmen and others.
25 The General Assembly of the Commonwealth of Pennsylvania
26 hereby enacts as follows:
1 Section 1. Section 11 of the act of May 28, 1937 (P.L.955,
2 No.265), known as the Housing Authorities Law, amended or added
3 May 20, 1949 (P.L.1614, No.486), February 16, 1990 (P.L.67,
4 No.13) and November 21, 1990 (P.L.569, No.143), is amended to
5 read:
6 Section 11. Awards of Contracts; Completion Bond; Additional
7 Bond for Protection of Materialmen and Others.--
8 (a) Whenever the estimated cost of any construction,
9 erection, installation, completion, alteration, repair of, or
10 addition to, any project subject to the control of any Authority
11 shall exceed [ten thousand ($10,000) dollars] twenty-five <--
12 thousand ($25,000) EIGHTEEN THOUSAND ($18,000) dollars subject <--
13 to annual adjustment under subsection (b.3), it shall be the
14 duty of said Authority to have such work performed pursuant to a
15 contract awarded to the lowest responsible bidder, after
16 advertisement for bids. Every such contract shall contain a
17 provision obligating the contractor to the prompt payment of all
18 material furnished, labor supplied or performed, rental for
19 equipment employed, and services rendered by public utilities in
20 or in connection with the prosecution of the work, whether or
21 not the said material, labor, equipment or service enter into
22 and become component parts of the work or improvement
23 contemplated. Such provision shall be deemed to be included for
24 the benefit of every person, copartnership, association or
25 corporation who, as subcontractor or otherwise, has furnished
26 material, supplied or performed labor, rented equipment or
27 services in or in connection with the prosecution of the work as
28 aforesaid, and the inclusion thereof in any contract shall
29 preclude the filing by any such person, copartnership,
30 association or corporation of any mechanics' lien claim for such
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1 material, labor or rental of equipment.
2 (b) Whenever the estimated cost of any purchase of supplies,
3 materials or equipment or the rental of any equipment, whether
4 or not the same is to be used in connection with the
5 construction, erection, installation, completion, alteration,
6 repair of, or addition to, any project subject to the control of
7 any Authority, shall exceed [ten thousand ($10,000) dollars]
8 twenty-five thousand ($25,000) EIGHTEEN THOUSAND ($18,000) <--
9 dollars subject to annual adjustment under subsection (b.3), it
10 shall be the duty of such Authority to have such purchase or
11 rental made pursuant to a contract awarded to the lowest
12 responsible bidder, after advertisement for bids, such
13 advertisement to be inserted in a newspaper of general
14 circulation within the county in which the Authority operates.
15 (b.1) An authority shall not evade the provisions of
16 subsection (a) or (b) as to advertising for bids by purchasing
17 materials or contracting for services piecemeal for the purpose
18 of obtaining prices under [ten thousand ($10,000) dollars]
19 twenty-five thousand ($25,000) EIGHTEEN THOUSAND ($18,000) <--
20 dollars subject to annual adjustment under subsection (b.3) upon
21 transactions which should, in the exercise of reasonable
22 discretion and prudence, be conducted as one transaction
23 amounting to more than [ten thousand ($10,000) dollars] twenty- <--
24 five thousand ($25,000) EIGHTEEN THOUSAND ($18,000) dollars <--
25 subject to annual adjustment under subsection (b.3). This
26 provision is intended to make unlawful the practice of evading
27 advertising requirements by making a series of purchases or
28 contracts, each for less than the advertising requirement price,
29 or by making several simultaneous purchases or contracts, each
30 below said price, when, in either case, the transactions
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1 involved should have been made as one transaction for one price.
2 (b.2) Written or telephonic price quotations from at least
3 three qualified and responsible contractors shall be requested
4 for all contracts that exceed [four thousand ($4,000) dollars]
5 ten thousand ($10,000) SEVEN THOUSAND ($7,000) dollars subject <--
6 to annual adjustment under subsection (b.3) but are less than
7 the amount requiring advertisement and competitive bidding or,
8 in lieu of price quotations, a memorandum shall be kept on file
9 showing that fewer than three qualified contractors exist in the
10 market area within which it is practicable to obtain quotations.
11 A written record of telephonic price quotations shall be made
12 and shall contain at least the date of the quotation, the name
13 of the contractor and the contractor's representative, the
14 construction, reconstruction, repair, maintenance or work which
15 was the subject of the quotation and the price. Written price
16 quotations, written records of telephonic price quotations and
17 memoranda shall be retained for a period of three years. period
18 of three years.
19 (b.3) (1) The Department of Labor and Industry shall <--
20 determine the percentage change in the Consumer Price Index for
21 All Urban Consumers for the twelve-month period ending September
22 30 of the calendar year in which this subsection becomes
23 effective, and for each successive twelve-month period
24 thereafter.
25 (B.3) (1) ANNUALLY, BEGINNING WITH THE YEAR IN WHICH THIS <--
26 SUBSECTION BECOMES APPLICABLE TO CONTRACTS AND PURCHASES, THE
27 DEPARTMENT OF LABOR AND INDUSTRY SHALL CALCULATE THE PERCENTAGE
28 CHANGE IN THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS (CPI-
29 U) FOR THE UNITED STATES CITY AVERAGE FOR ALL ITEMS AS PUBLISHED
30 BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR
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1 STATISTICS, FOR THE TWELVE-MONTH AVERAGE ENDING IN SEPTEMBER OF
2 THE PRIOR YEAR.
3 (2) The amount at which competitive bidding is required
4 under subsection (a) and the amount at which written or
5 telephonic price quotations are required under subsection (b.2)
6 shall be adjusted annually as follows:
7 (i) In the case of competitive bidding, the positive
8 percentage change, as determined in accordance with clause (1),
9 shall be multiplied by the amount applicable under subsection
10 (a) for the current year and the product thereof shall be added
11 to the amount applicable under subsection (a) for the current
12 year, with the result rounded to the nearest multiple of ten
13 ($10) dollars.
14 (ii) In the case of written or telephonic price quotations,
15 the positive percentage change, as determined in accordance with
16 clause (1), shall be multiplied by the amount applicable under
17 subsection (b.2) for the current year and the product thereof
18 shall be added to the amount applicable under subsection (b.2)
19 for the current year, with the result rounded to the nearest
20 multiple of ten ($10) dollars.
21 (3) The annual determination required under clause (1) and
22 the calculation of the adjustments required under clause (2)
23 shall be made in the period between October 1 and November 15 of
24 the year following the effective date of this subsection, and
25 annually between October 1 and November 15 of each successive
26 year.
27 (4) The adjusted amounts obtained in accordance with clause
28 (2) shall become effective January 1 for the calendar year
29 following the year in which the determination required under
30 clause (1) is made.
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1 (5) The Department of Labor and Industry shall give notice
2 in the Pennsylvania Bulletin prior to January 1 of each calendar
3 year of the annual percentage change determined in accordance
4 with clause (1) and the amounts, whether adjusted or unadjusted
5 in accordance with clause (2), at which competitive bidding is
6 required under subsection (a) and written or telephonic price
7 quotations are required under subsection (b.2) for the calendar
8 year beginning the first day of January after publication of the
9 notice.
10 (c) A housing authority shall require as a condition of the
11 award of any contract, pursuant to subsection (a) or (b) of this
12 section, that the contractor give to the Authority any bond
13 (including bonds for the performance of the contract, and for
14 the prompt payment by the contractor for material, supplies,
15 labor, services and equipment) which are prescribed by law for
16 contracts awarded by cities or counties, as the case may be, of
17 the same class as the city or county for which such Authority
18 has been created.
19 (d) Notwithstanding anything to the contrary contained in
20 this act or in any other provision of law, a housing authority
21 may include, in any contract let in connection with a project,
22 stipulations requiring that the contractor and any
23 subcontractors comply with requirements as to minimum wages and
24 maximum hours of labor, and comply with any conditions which the
25 Federal or State Government may have attached to its financial
26 aid of the project.
27 (e) Every Authority awarding contracts or requiring the
28 delivery of bonds pursuant to this section shall keep an exact
29 copy of every contract awarded or bond delivered upon file at
30 its principal office. Subject to regulations to be prescribed by
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1 the State Planning Board for their safe keeping such copies
2 shall be opened to public inspection.
3 (f) Any authority member who votes to unlawfully evade the
4 provisions of this section and who knows that the transaction
5 upon which he so votes is or ought to be a part of a larger
6 transaction and that it is being divided in order to evade the
7 requirements as to advertising for bids commits a misdemeanor of
8 the third degree for each contract entered into as a direct
9 result of that vote.
10 Section 2. This act shall apply to contracts and purchases
11 advertised on or after January 1 of the year following the
12 effective date of this section.
13 Section 3. This act shall take effect immediately.
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