HOUSE AMENDED

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

AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF REPRESENTATIVES, AS AMENDED, OCTOBER 4, 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)] the base 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)] 

in excess of the base amount of 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)  Adjustments to the base amounts specified under

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 hundred dollars ($100), 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 hundred dollars ($100) 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)  The annual increase in the preliminary adjusted base

amounts obtained under paragraphs (3) and (4) shall not exceed

three percent.

(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

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

hundred dollars ($18,500), 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)] the 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.

* * *

Section 2.  Section 1803 Sections 1803 and 2317 of the act,

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amended July 10, 1990 (P.L.379, No.89), is are amended to read:

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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)] the base amount of

eighteen thousand 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)] the base 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 2317.  Separate Bids for Plumbing, Heating,

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Ventilating, Electrical Work, Elevators and Moving Stairs.--In

the preparation of specifications for the erection, construction

and alteration of any public building, when the entire cost of

such work shall exceed [ten thousand dollars ($10,000)] the base

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

subject to adjustment under section 1801(b.1) the architect,

engineer or other person preparing such specifications shall

prepare only the following separate specifications: (1)

plumbing, (2) heating, (3) ventilating, (4) electrical work, (5)

elevators and moving stairs, and (6) one complete set of

specifications for all the other work to be done in such

erection, construction and alteration. The board of

commissioners shall receive separate bids upon each of the said

branches of work and award the contract for the same to the

lowest responsible bidder for each of said branches, including

the balance of the work in addition to the plumbing, heating,

ventilating and electrical work, and elevators and moving

stairs. Where it is desired to install an air conditioning unit,

the heating and ventilating so involved may be regarded as one

branch of work having only one set of specifications, and bids

may be received and a contract awarded thereon, as hereinbefore

provided.

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.