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 TRANSPORTATION, HOUSE OF REPRESENTATIVES, AS AMENDED, APRIL 6, 2011   

AN ACT

Amending Title 74 (Transportation) of the Pennsylvania

Consolidated Statutes, in metropolitan transportation

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authorities, further providing for competitive bidding of

contracts relating to metropolitan transportation

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authorities.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1750(c), (d) and (k) of Title 74 of the

Pennsylvania Consolidated Statutes are amended and the section

is amended by adding a subsection to read:

§ 1750.  Contracts, procurement and sale of property.

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[(c)  Qualified vendors.--Written price quotations from at

least three qualified and responsible vendors shall be solicited

for all purchases and sales under $25,000 and over $10,000, or,

in lieu thereof, a memorandum approved by the general manager

shall be kept on file showing that less than three vendors so

qualified exist in the market area within which it is

practicable to obtain quotations, except as provided in this

chapter.]

(d)  Small purchases.--Purchases or sales under [$10,000] the

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base amount of $25,000, subject to annual adjustment under

subsection (l), may be negotiated with or without competitive

bidding under sound procurement procedures as promulgated and

established by the general manager.

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(k)  Concessions.--All concessions granted by the authority

for the sale of products or the rendition of services for a

consideration on authority property shall be awarded only under

written specifications after competitive bidding and to the

highest responsive, responsible bidder in a manner similar to

that required by subsection (b) [or (c) as appropriate]. This

requirement for competitive bidding shall not apply to any

concession which has been granted by a transportation system

acquired by the authority and which by the terms of the

agreement granting it will terminate within one year from date

of the acquisition of the transportation system by the authority

nor to any concession involving the estimated receipt by the

authority of less than [$10,000] the base amount of $25,000,

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subject to annual adjustment under subsection (l), over the

period for which the concession is granted.

(l)  Consumer Price Index 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 (b) shall be adjusted annually. 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 $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 (b)

for the calendar year beginning the first day of January

after publication of the notice.

Adjustments to the base amounts specified under subsections (d)

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and (k) 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 of Labor and Industry determines

that there is no positive percentage change, then no

adjustment to the base amounts shall occur for the relevant

time period provided for in this subsection.

(3)  (i)  If the Department of Labor and Industry

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 each base amount and the products shall be

added to the base amounts, respectively, and the sums

shall be preliminary adjusted amounts.

(ii)  The preliminary adjusted amounts shall be

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

adjusted base amounts for purposes of subsections (d) and

(k).

(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 amounts and the

products shall be added to the most recent preliminary

adjusted amounts, respectively. The sums thereof shall be

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

adjusted base amounts for purposes of subsections (d) and

(k).

(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 amounts and new final

adjusted base amounts 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 of Labor and Industry 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

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

of subsections (d) and (k), respectively, 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 of Labor and Industry in establishing the

unadjusted or final adjusted base amounts under this

subsection for the ensuing calendar year.

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.