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, 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, WATSON AND F. KELLER, JANUARY 27, 2011

AS REPORTED FROM COMMITTEE ON URBAN AFFAIRS, HOUSE OF REPRESENTATIVES, AS AMENDED, APRIL 6, 2011   

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, in parking authorities, further

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providing for competitive bidding of contracts relating to

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parking authorities.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 5511(c) and (h)(1) of Title 53 of the

Pennsylvania Consolidated Statutes are amended and the section

is amended by adding a subsection to read:

§ 5511.  Competition in award of contracts.

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(c)  Quotations.--Written or telephonic price quotations from

at least three qualified and responsible contractors shall be

requested for a contract which exceeds [$4,000] the base amount

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of $10,000, subject to adjustment under subsection (c.1), but is

less than the amount requiring advertisement and competitive

bidding. 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.

(c.1)  Adjustments.--

(1)  The Department of Labor and Industry shall determine

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the percentage change in the Consumer Price Index for All

Urban Consumers for the 12-month period ending September 30

of the calendar year in which this subsection becomes

effective and for each successive 12-month period thereafter.

(2)  The amount at which competitive bidding is required

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

or telephonic price quotations are required under subsection

(c) shall be adjusted annually as follows:

(i)  For subsections (a) and (b):

(A)  Multiply the positive percentage change

under paragraph (1) by the amount applicable under

subsection (a) or (b) for the current year.

(B)  Add the product under clause (A) to the

amount applicable under subsection (a) or (b) for the

current year.

(C)  Round the sum under clause (B) to the

nearest multiple of $10.

(ii)  For subsection (c):

(A)  Multiply the positive percentage change, as

determined under paragraph (1) by the amount

applicable under subsection (c) for the current year.

(B)  Add the product under clause (A) to the

amount applicable under subsection (c) for the

current year.

(C)  Round the sum under clause (B) to the

nearest multiple of $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 under 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 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) or (b) and written

or telephonic price quotations are required under subsection

(c) for the calendar year beginning the first day of January

after publication of the notice.

Adjustments to the base amounts specified under subsection

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(c) shall be made as follows:

(1)  The Department of Labor and Industry shall determine

the percentage change in the All Items Consumer Price Index

for All Urban Consumers (CPI-U) for the United States City

Average as published by the United States Department of

Labor, Bureau of Labor Statistics 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)  If the department determines that there is no

positive percentage change, then no adjustment to the base

amount shall occur for the relevant time period provided for

in this subsection.

(3)  (i)  If the department determines that there is a

positive percentage change in the first year that the

determination is made under paragraph (1), the positive

percentage change shall be multiplied by the base amount

and the product shall be added to the base amount and the

sum shall be a preliminary adjusted amount.

(ii)  The preliminary adjusted amount shall be

rounded to the nearest $1,000, to determine the final

adjusted base amount for purposes of subsection (c).

(4)  In each successive year in which there is a positive

percentage change in the CPI-U for the United States City

Average, the positive percentage change shall be multiplied

by the most recent preliminary adjusted amount and the

product shall be added to the most recent preliminary

adjusted amount. The sum thereof shall be rounded to the

nearest $1,000 to determine the new final adjusted base

amount for purposes of subsection (c).

(5)  The determinations and adjustments required under

this subsection 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 year thereafter.

(6)  The final adjusted base amount and new final

adjusted base amount obtained under paragraphs (3) and (4)

shall become effective January 1 for the calendar year

following the year in which the determination required under

paragraph (1) is made.

(7)  The department shall publish notice in the

Pennsylvania Bulletin prior to January 1 of each calendar

year of the annual percentage change determined under

paragraph (1) and the unadjusted or final adjusted base

amount determined under paragraphs (3) and (4) for purposes

of subsection (c) for the calendar year beginning the first

day of January after publication of the notice. The notice

shall include a written and illustrative explanation of the

calculations performed by the department in establishing the

unadjusted or final adjusted base amount under this

subsection for the ensuing calendar year.

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(h)  Evasion.--

(1)  An authority may not evade the provisions of this

section as to bids or purchasing materials or contracting for

services piecemeal for the purpose of obtaining prices under

[$25,000] the amount required by this section upon

transactions which should, in the exercise of reasonable

discretion and prudence, be conducted as one transaction

amounting to more than [$25,000] the amount required by this

section.

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Section 2.  This act shall apply to contracts and purchases

advertised after December 31 of the year in which this section

takes effect.

Section 3.  This act shall take effect immediately.