THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY EICHELBERGER, KASUNIC, FOLMER, GORDNER, BOSCOLA, ORIE, RAFFERTY, YAW, M. WHITE, D. WHITE, ERICKSON, BAKER, ALLOWAY, BRUBAKER, GREENLEAF, SMUCKER, EARLL, SCARNATI, FERLO, ROBBINS, VANCE, WAUGH, McILHINNEY, PICCOLA, WARD, MENSCH AND BROWNE, JANUARY 26, 2011

SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, SEPTEMBER 20, 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," 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) the base

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amount of eighteen thousand five hundred dollars ($18,500),

subject to 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)] 

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seven thousand dollars ($7,000) in excess of the base amount of

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ten thousand dollars ($10,000), subject to 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)  Every five years, beginning with the year in

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which this subsection becomes applicable to contracts and

purchases, the Department of Labor and Industry shall calculate

the average percentage change in the Consumer Price Index for

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

for all items as published by the United States Department of

Labor, Bureau of Labor Statistics, for the preceding five years.

(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 every five years 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 in effect under

subsection (a) for the prior five-year period and the product

thereof shall be added to the amount in effect under subsection

(a) for the prior five-year period, with the result rounded to

the nearest multiple of one hundred dollars ($100).

(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 in effect under

subsection (b) for the prior five-year period and the product

thereof shall be added to the amount in effect under subsection

(b) for the prior five-year period, with the result rounded to

the nearest multiple of one hundred dollars ($100).

(3)  The 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

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 a five-year

period 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 in which the 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 five-year period beginning the first day of January

after publication of the notice.

(b.1)  Adjustments to the base amounts specified under

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subsections (a) and (b) 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, 2012, 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 amounts 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 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 one thousand dollars ($1,000), to determine the

final adjusted base amounts for purposes of subsections (a) and

(b).

(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 preliminary adjusted amount of the prior

year to calculate the preliminary adjusted amounts for the

current year. The sums thereof shall be rounded to the nearest

one thousand dollars ($1,000) to determine the new final

adjusted base amounts for purposes of subsections (a) and (b).

(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 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) at which competitive bidding is required

under subsection (a) and written or telephonic price quotations

are required under subsection (b), 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 in establishing the unadjusted or final adjusted

base amounts under this subsection for the ensuing calendar

year.

(8)  No adjustment to the base amounts specified under

subsections (a) and (b) shall exceed three percent of the most

recently adjusted base amount.

(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 base amount thereof exceeds the sum

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

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($25,000) eighteen thousand five hundred dollars ($18,500),

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subject to 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 ($25,000) the

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base amount of eighteen thousand five hundred dollars ($18,500),

subject to 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.

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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

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thousand dollars ($25,000) the base amount of eighteen thousand

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five hundred dollars ($18,500), subject to 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 ($25,000) the base

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amount of eighteen thousand five hundred dollars ($18,500),

subject to 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.