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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY M. K. KELLER, APRIL 25, 2012 |
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| REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, APRIL 25, 2012 |
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| AN ACT |
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1 | Amending the act of August 23, 1967 (P.L.251, No.102), entitled, |
2 | as amended, "An act providing for the incorporation as public |
3 | instrumentalities of the Commonwealth and as bodies corporate |
4 | and politic of industrial and commercial development |
5 | authorities for municipalities, counties and townships; |
6 | prescribing the rights, powers and duties of such authorities |
7 | hereafter incorporated; authorizing such authorities to |
8 | acquire, by gift or purchase, to construct, improve and |
9 | maintain industrial, specialized, or commercial development |
10 | projects including projects for the elimination or prevention |
11 | of blight and the control of air and water pollution, and to |
12 | borrow money and issue bonds therefor; providing for the |
13 | payment of such bonds and giving security therefor, and |
14 | prescribing the rights of the holders of such bonds; |
15 | authorizing the lease or sale of industrial, specialized, or |
16 | commercial development projects to industrial, specialized, |
17 | or commercial enterprises; authorizing any county, |
18 | municipality or township to transfer or convey to such |
19 | authorities, any facilities or property available for |
20 | industrial, specialized, or commercial development projects; |
21 | exempting the property and securities of such authorities |
22 | from taxation; authorizing such authorities to enter into |
23 | contracts with and to accept grants from the Federal |
24 | Government or any agency thereof; and providing for approval |
25 | by the Secretary of Commerce of the proceedings relating to |
26 | industrial, specialized, or commercial development projects |
27 | of such authorities," further providing for competition in |
28 | award of contracts. |
29 | The General Assembly of the Commonwealth of Pennsylvania |
30 | hereby enacts as follows: |
31 | Section 1. Section 12 of the act of August 23, 1967 |
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1 | (P.L.251, No.102), known as the Economic Development Financing |
2 | Law, amended December 17, 1993 (P.L.490, No.74), is amended to |
3 | read: |
4 | Section 12. Competition in Award of Contracts.--(a) All |
5 | construction, reconstruction, repairs or work of any nature made |
6 | directly by any authority where the entire cost, value or amount |
7 | of such construction, reconstruction, repairs or work, including |
8 | labor and materials, shall exceed [ten thousand dollars |
9 | ($10,000)] eighteen thousand five hundred dollars ($18,500), |
10 | subject to adjustment under subsection (h), except construction, |
11 | reconstruction, repairs or work done by employes of said |
12 | authority, or by labor supplied under agreement with any Federal |
13 | or State agency, with supplies and materials purchased as |
14 | hereinafter provided, shall be done only under contract or |
15 | contracts to be entered into by the authority with the lowest |
16 | responsible bidder upon proper terms, after due public notice |
17 | has been given asking for competitive bids as hereinafter |
18 | provided: Provided, however, That where the authority is the |
19 | legal title holder to the project, and there exists an agreement |
20 | whereby a project user or project applicant will or can acquire |
21 | legal title to the said project under the then certain terms and |
22 | conditions, contracts for construction, reconstruction, repair, |
23 | or work of any nature, or purchase of machinery and equipment, |
24 | may be awarded by the project user or project applicant without |
25 | regard to the limitations of this section 12: And provided |
26 | further, however, That for the purposes of this section 12, |
27 | "construction" or "acquisition" shall not include acquisition of |
28 | property for project purposes. No contract shall be entered into |
29 | between an authority and a contractor for construction of any |
30 | project or portion thereof, unless the contractor shall give an |
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1 | undertaking with a sufficient surety or sureties approved by the |
2 | authority, and in an amount fixed by the authority, for the |
3 | faithful performance of the contract. All contracts of surety |
4 | shall provide among other things that the contractor entering |
5 | into a contract with the authority will pay for all materials |
6 | furnished and services rendered for the performance of the |
7 | contract, and that any person or corporation furnishing such |
8 | materials or rendering such services may maintain an action to |
9 | recover for the same against the obligor in the undertaking, as |
10 | though such person or corporation was named therein, provided |
11 | the action is brought within one year after the time the cause |
12 | of action accrued. |
13 | (b) All supplies and materials costing [ten thousand dollars |
14 | ($10,000)], subject to adjustment under subsection (h), eighteen |
15 | thousand five hundred dollars ($18,500) or more to be purchased |
16 | directly by an authority shall be purchased only after due |
17 | advertisement as hereinafter provided. The authority shall |
18 | accept the lowest bid or bids, kind, quality and material being |
19 | equal, but the authority shall have the right to reject any or |
20 | all bids or select a single item from any bid. The provisions as |
21 | to bidding shall not apply to the purchase of patented and |
22 | manufactured products offered for sale in a noncompetitive |
23 | market or solely by a manufacturer's authorized dealer. |
24 | (c) The terms "advertisement" or "due public notice" |
25 | wherever used in this section, shall mean a notice published at |
26 | least ten days before the award of any contract, in a newspaper |
27 | of general circulation published in the municipality where the |
28 | authority has its principal office, and if no newspaper is |
29 | published therein then by publication in a newspaper in the |
30 | county where the authority has its principal office: Provided, |
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1 | That such notice may be waived where the authority determines an |
2 | emergency exists, and such supplies and materials must be |
3 | immediately purchased by the said authority. |
4 | (d) No member of the authority or officer or employe thereof |
5 | shall, either directly or indirectly, be a party to or be in any |
6 | manner interested in any contract or agreement with the |
7 | authority for any matter, cause or thing whatsoever by reason |
8 | whereof any liability or indebtedness shall in any way be |
9 | created against such authority. If any contract or agreement |
10 | shall be made in violation of the provisions of this section the |
11 | same shall be null and void and no action shall be maintained |
12 | thereon against such authority. |
13 | (e) Subject to the aforesaid, any authority may (but without |
14 | intending by this provision to limit any powers of such |
15 | authority) enter into and carry out such contracts, or establish |
16 | or comply with such rules and regulations concerning labor and |
17 | materials and other related matters in connection with any |
18 | project or portion thereof, as the authority may deem desirable, |
19 | or as may be requested by any Federal agency that may assist in |
20 | the financing of such project or any part thereof. |
21 | (f) The provisions of this section 12 shall not apply in |
22 | respect of the construction of any project or the purchase of |
23 | any equipment, materials or supplies which the authority may |
24 | have had transferred to it upon completion, by purchase or |
25 | otherwise, by a project applicant or project user or any other |
26 | person or corporation. |
27 | (g) Notwithstanding any of the foregoing, all construction, |
28 | reconstruction, repairs or work of any nature with regard to |
29 | publicly owned infrastructure facilities, where the entire cost, |
30 | value or amount of such construction, reconstruction, repairs or |
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1 | work, including labor and materials, shall exceed [ten thousand |
2 | dollars ($10,000)] eighteen thousand five hundred dollars |
3 | ($18,500), subject to adjustment under subsection (h), shall be |
4 | done only under contract or contracts to be entered into by the |
5 | authority or the owner of the infrastructure facility, with the |
6 | lowest responsible bidder upon proper terms, after due public |
7 | notice has been given asking for competitive bids as set forth |
8 | in this section or other applicable law. |
9 | (h) Adjustments to the base amounts shall be made as |
10 | follows: |
11 | (1) The Department of Labor and Industry shall determine the |
12 | percentage change in the Consumer Price Index for All Urban |
13 | Consumers: All Items (CPI-U) for the United States City Average |
14 | as published by the United States Department of Labor, Bureau of |
15 | Labor Statistics, for the twelve-month period ending September |
16 | 30, 2012, and for each successive twelve-month period |
17 | thereafter. |
18 | (2) If the department determines that there is no positive |
19 | percentage change, then no adjustment to the base amounts shall |
20 | occur for the relevant time period. |
21 | (3) (i) If the department determines that there is a |
22 | positive percentage change in the first year that the |
23 | determination is made under paragraph (1), the positive |
24 | percentage change shall be multiplied by each base amount, and |
25 | the products shall be added to the base amounts, respectively, |
26 | and the sums shall be preliminary adjusted amounts. |
27 | (ii) The preliminary adjusted amounts shall be rounded to |
28 | the nearest one hundred dollars ($100) to determine the final |
29 | adjusted base amounts. |
30 | (4) In each successive year in which there is a positive |
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1 | percentage change in the CPI-U for the United States City |
2 | Average, the positive percentage change shall be multiplied by |
3 | the most recent preliminary adjusted amounts, and the products |
4 | shall be added to the preliminary adjusted amount of the prior |
5 | year to calculate the preliminary adjusted amounts for the |
6 | current year. The sums thereof shall be rounded to the nearest |
7 | one hundred dollars ($100) to determine the new final adjusted |
8 | base amounts. |
9 | (5) The determinations and adjustments required under this |
10 | subsection shall be made in the period between October 1 and |
11 | November 15, 2012, and annually between October 1 and November |
12 | 15 of each year thereafter. |
13 | (6) The final adjusted base amounts and new final adjusted |
14 | base amounts obtained under paragraphs (3) and (4) shall become |
15 | effective January 1 for the calendar year following the year in |
16 | which the determination required under paragraph (1) is made. |
17 | (7) The department shall publish notice in the Pennsylvania |
18 | Bulletin prior to January 1 of each calendar year of the annual |
19 | percentage change determined under paragraph (1) and the |
20 | unadjusted or final adjusted base amounts determined under |
21 | paragraphs (3) and (4) at which competitive bidding is required |
22 | for the calendar year beginning the first day of January after |
23 | publication of the notice. The notice shall include a written |
24 | and illustrative explanation of the calculations performed by |
25 | the department in establishing the unadjusted or final adjusted |
26 | base amounts under this subsection for the ensuing calendar |
27 | year. |
28 | (8) The annual increase in the preliminary adjusted base |
29 | amounts obtained under paragraphs (3) and (4) shall not exceed |
30 | three percent. |
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1 | Section 2. This act shall apply to contracts and purchases |
2 | advertised on or after the effective date of this section. |
3 | Section 3. This act shall take effect immediately. |
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