THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY M.K. KELLER, AUMENT, BAKER, BEAR, BENNINGHOFF, BLOOM, BOBACK, BOYD, BROOKS, CAUSER, CHRISTIANA, CLYMER, COX, CREIGHTON, CUTLER, DELOZIER, DENLINGER, ELLIS, EVERETT, FARRY, FLECK, GABLER, GEIST, GERBER, GILLESPIE, GINGRICH, GRELL, GROVE, HALUSKA, HARHART, HARPER, HARRIS, HELM, HENNESSEY, HESS, HICKERNELL, KAUFFMAN, KILLION, KNOWLES, MAJOR, MARSHALL, MARSICO, MASSER, METCALFE, MILLARD, MILLER, MOUL, OBERLANDER, O'NEILL, PAYNE, PEIFER, PERRY, PICKETT, PYLE, QUIGLEY, QUINN, RAPP, REED, REICHLEY, ROAE, ROCK, ROSS, SAYLOR, SCAVELLO, CULVER, SCHRODER, SIMMONS, SONNEY, STERN, STEVENSON, SWANGER, TALLMAN, TOBASH, TRUITT, TURZAI, VEREB, VULAKOVICH AND WATSON, JANUARY 27, 2011

REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JANUARY 27, 2011  

AN ACT

Amending the act of August 9, 1955 (P.L.323, No.130), entitled,

as amended, "An act relating to counties of the first, third,

fourth, fifth, sixth, seventh and eighth classes; amending,

revising, consolidating and changing the laws relating

thereto; relating to imposition of excise taxes by counties,

including authorizing imposition of an excise tax on the

rental of motor vehicles by counties of the first class; and

providing for regional renaissance initiatives," in

contracts, further providing for commissioners sole

contractors for county, for contract procedures, terms and

bonds and advertising for bids and for evasion of advertising

requirements.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 1801 and 1802(a) and (b) of the act of

August 9, 1955 (P.L.323, No.130), known as The County Code,

amended December 22, 2000 (P.L.1019, No.142), are amended to

read:

Section 1801.  Commissioners Sole Contractors for County.--

(a)  The county commissioners shall contract for and purchase

all services referred to in section five hundred eight and

personal property for county officers and agencies. All

contracts and purchases not in excess of [ten thousand dollars

($10,000)] twenty-five thousand dollars ($25,000) subject to

annual adjustment under subsection (b.1) shall be by note or

memorandum, in writing, signed by the county commissioners, or

their designee. A copy of all such notes and memorandums and all

written contracts shall be filed in the office of the

controller, if any, and, if not, then with the chief clerk of

the commissioners.

(b)  Written or telephonic price quotations from at least

three qualified and responsible contractors shall be requested

for all contracts that exceed [four thousand dollars ($4,000)]

ten thousand dollars ($10,000) subject to annual adjustment

under subsection (b.1) but are less than the amount requiring

advertisement and competitive bidding or, in lieu of price

quotations, a memorandum shall be kept on file showing that

fewer than three qualified contractors exist in the market area

within which it is practicable to obtain quotations. A written

record of telephonic price quotations shall be made and shall

contain at least the date of the quotation, the name of the

contractor and the contractor's representative, the

construction, reconstruction, repair, maintenance or work which

was the subject of the quotation and the price. Written price

quotations, written records of telephonic price quotations and

memoranda shall be retained for a period of three years.

(b.1)  (1)  The Department of Labor and Industry shall

determine the percentage change in the Consumer Price Index for

All Urban Consumers for the twelve-month period ending September

30 of the calendar year in which this subsection becomes

effective, and for each successive twelve-month period

thereafter.

(2)  The amount at which competitive bidding is required

under subsection (a) and the amount at which written or

telephonic price quotations are required under subsection (b)

shall be adjusted annually as follows:

(i)  In the case of competitive bidding, the positive

percentage change, as determined in accordance with paragraph

(1), shall be multiplied by the amount applicable under

subsection (a) for the current year and the product thereof

shall be added to the amount applicable under subsection (a) for

the current year, with the result rounded to the nearest

multiple of ten dollars ($10).

(ii)  In the case of written or telephonic price quotations,

the positive percentage change, as determined in accordance with

paragraph (1), shall be multiplied by the amount applicable

under subsection (b) for the current year and the product

thereof shall be added to the amount applicable under subsection

(b) for the current year, with the result rounded to the nearest

multiple of ten dollars ($10).

(3)  The annual determination required under paragraph (1)

and the calculation of the adjustments required under paragraph

(2) shall be made in the period between October 1 and November

15 of the year following the effective date of this subsection,

and annually between October 1 and November 15 of each

successive year.

(4)  The adjusted amounts obtained in accordance with

paragraph (2) shall become effective January 1 for the calendar

year following the year in which the determination required

under paragraph (1) is made.

(5)  The Department of Labor and Industry shall give notice

in the Pennsylvania Bulletin prior to January 1 of each calendar

year of the annual percentage change determined in accordance

with paragraph (1) and the amounts, whether adjusted or

unadjusted in accordance with paragraph (2), at which

competitive bidding is required under subsection (a) and written

or telephonic price quotations are required under subsection (b)

for the calendar year beginning the first day of January after

publication of the notice.

(c)  The commissioners shall, where possible, anticipate the

needs of the various officers, agencies and operations of the

county and endeavor to purchase in wholesale quantities, where

practicable and where savings could be achieved thereby. The

commissioners may make contracts and purchases for all purposes

expressly or impliedly authorized by law.

Section 1802.  Contract Procedures; Terms and Bonds;

Advertising for Bids.--(a)  All contracts for services and

personal property where the amount thereof exceeds the sum of

[ten thousand dollars ($10,000),] twenty-five thousand dollars

subject to annual adjustment under section 1801(b.1) shall be

written and shall, except as otherwise hereinafter specified, be

made by advertising for bids.

(b)  Contracts or purchases in excess of [ten thousand

dollars ($10,000)] twenty-five thousand dollars subject to

annual adjustment under section 1801(b.1), except those

hereinafter mentioned and except as provided by the act of

October 27, 1979 (P.L.241, No.78), entitled "An act authorizing

political subdivisions, municipality authorities and

transportation authorities to enter into contracts for the

purchase of goods and the sale of real and personal property

where no bids are received," shall not be made except with and

from the lowest responsible and responsive bidder submitting a

bid in conformity with the specifications approved by the board

of commissioners for the contract or purchase, after due notice

in one newspaper of general circulation, published or

circulating in the county, at least two times at intervals of

not less than three days where daily newspapers of general

circulation are employed for such publication, or in case weekly

newspapers are employed then the notice shall be published once

a week for two successive weeks. The first advertisement shall

be published not less than ten days prior to the date fixed for

the opening of bids. The requirements of this subsection need

not be followed in cases of emergency, but in such cases the

actual emergency shall be declared and stated by resolution of

the commissioners.

* * *

Section 2.  Section 1803 of the act, amended July 10, 1990

(P.L.379, No.89), is amended to read:

Section 1803.  Evasion of Advertising Requirements.--(a)  No

commissioner or commissioners shall evade the provisions of

section one thousand eight hundred two of this act, as to

advertising for bids or purchasing or contracting for services

and personal properties piece-meal, for the purpose of obtaining

prices under [ten thousand dollars ($10,000)] twenty-five

thousand dollars subject to annual adjustment under section

1801(b.1) upon transactions which should in the exercise of

reasonable discretion and prudence be conducted as one

transaction amounting to more than [ten thousand dollars

($10,000)] twenty-five thousand dollars subject to annual

adjustment under section 1801(b.1). This provision is intended

to make unlawful the practice of evading advertising

requirements by making a series of purchases or contracts each

for less than the advertising requirement price, or by making

several simultaneous purchases or contracts each below said

price, when in either case the transaction involved should have

been made as one transaction for one price. Any county

commissioners who so vote in violation of this provision and who

know that the transaction upon which they so vote is or ought to

be a part of a larger transaction and that it is being divided

in order to evade the requirements as to advertising for bids

shall be, jointly and severally, subject to surcharge for any

loss sustained. Wherever it shall appear that a commissioner may

have voted in violation of this section, but the purchase or

contract on which he so voted was not approved by the board of

county commissioners, this section shall be inapplicable.

(b)  Any county commissioner who votes to unlawfully evade

the provisions of section one thousand eight hundred two of this

act and who knows that the transaction upon which he so votes is

or ought to be a part of a larger transaction and that it is

being divided in order to evade the requirements as to

advertising for bids commits a misdemeanor of the third degree

for each contract entered into as a direct result of that vote.

This penalty shall be in addition to any surcharge which may be

assessed pursuant to subsection (a).

Section 3.  This act shall apply to contracts and purchases

advertised on or after January 1 of the year following the

effective date of this section.

Section 4.  This act shall take effect immediately.