PRIOR PRINTER'S NO. 263

PRINTER'S NO.  1561

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

289

Session of

2011

  

  

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

  

  

SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, SEPTEMBER 20, 2011   

  

  

  

AN ACT

  

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Amending the act of August 6, 1936 (Sp.Sess., P.L.95, No.38

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1/2), entitled "An act to authorize and empower cities,

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boroughs, towns, and townships, separately or jointly, to

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provide for protection against floods by erecting and

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constructing certain works and improvements, located within

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or without their territorial limits, and within or without

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the county in which situate; and to expend moneys and incur

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indebtedness; to assess benefits against property benefited;

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to issue improvement bonds imposing no municipal liability;

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and to acquire, take, injure or destroy property for such

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purposes," further providing for competitive bidding of

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contracts.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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Section 1.  Section 3 of the act of August 6, 1936 (Sp.Sess.,

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P.L.95, No.38 1/2), entitled "An act to authorize and empower

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cities, boroughs, towns, and townships, separately or jointly,

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to provide for protection against floods by erecting and

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constructing certain works and improvements, located within or

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without their territorial limits, and within or without the

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county in which situate; and to expend moneys and incur

 


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indebtedness; to assess benefits against property benefited; to

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issue improvement bonds imposing no municipal liability; and to

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acquire, take, injure or destroy property for such purposes,"

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amended July 10, 1990 (P.L.402, No.97), is amended to read:

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Section 3.  (a)  No such works or improvements, involving

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[an] expenditure by any municipality or municipalities of more

<--

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

<--

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

<--

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($18,500), subject to adjustment under subsection (b.1), shall

<--

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be erected, constructed or provided, except by contract let to

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the lowest responsible bidder after due advertisement, once a

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week for two successive weeks in at least one newspaper of

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general circulation: Provided, however, That no contract shall

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be required to be let for the performance of the work on any

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such work or improvement where the cost of the labor shall be

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paid by the Federal Government, or any agency thereof, without

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cost to the municipality or municipalities.

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(b)  Written or telephonic price quotations from at least

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three qualified and responsible contractors shall be requested

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for all contracts [that exceed [four thousand dollars ($4,000)]

<--

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seven in excess of the base amount of ten thousand dollars

<--

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($7,000) ($10,000), subject to adjustment under subsection

<--

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(b.1), but are less than the amount requiring advertisement and

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competitive bidding or, in lieu of price quotations, a

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memorandum shall be kept on file showing that fewer than three

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qualified contractors exist in the market area within which it

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is practicable to obtain quotations. A written record of

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telephonic price quotations shall be made and shall contain at

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least the date of the quotation, the name of the contractor and

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the contractor's representative, the construction,

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reconstruction, repair, maintenance or work which was the

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subject of the quotation and the price. Written price

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quotations, written records of telephonic price quotations and

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memoranda shall be retained for a period of three years.

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(b.1)  Adjustments shall be made as follows:

<--

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(1)  Every five years, beginning with the year in which this

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subsection becomes applicable to contracts and purchases, the

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Department of Labor and Industry shall calculate the average

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percentage change in the Consumer Price Index for All Urban

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

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items as published by the United States Department of Labor,

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Bureau of Labor Statistics, for the preceding five-year period.

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(2)  The amount at which competitive bidding is required

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

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telephonic price quotations are required under subsection (b)

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shall be adjusted every five years as follows:

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(i)  In the case of competitive bidding, the positive

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percentage change, as determined in accordance with paragraph

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(1), shall be multiplied by the amount applicable under

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

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thereof shall be added to the amount applicable under subsection

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

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

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(ii)  In the case of written or telephonic price quotations,

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the positive percentage change, as determined in accordance with

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paragraph (1), shall be multiplied by the amount applicable

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under subsection (b) for the current five-year period and the

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product thereof shall be added to the amount applicable under

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subsection (b) for the current five-year period, with the result

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

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(3)  The determination required under paragraph (1) and the

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calculation of the adjustments required under paragraph (2)

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shall be made in the period between October 1 and November 15 of

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the year following the effective date of this subsection, and

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between October 1 and November 15 of each successive year.

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(4)  The adjusted amounts obtained in accordance with

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paragraph (2) shall become effective January 1 for the five-year

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period following the year in which the determination required

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under paragraph (1) is made.

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(5)  The department shall give notice in the Pennsylvania

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Bulletin prior to January 1 of each calendar year in which the

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percentage change determined in accordance with paragraph (1)

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and the amounts, whether adjusted or unadjusted in accordance

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with paragraph (2), at which competitive bidding is required

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under subsection (a) and written or telephonic price quotations

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are required under subsection (b) for the five-year period

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beginning the first day of January after publication of the

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notice.

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

<--

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subsections (a) and (b) shall be made as follows:

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(1)  The Department of Labor and Industry shall determine the

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percentage change in the All Items Consumer Price Index for All

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

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published by the United States Department of Labor, Bureau of

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Labor Statistics for the twelve-month period ending September

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30, 2012, and for each successive twelve-month period

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thereafter.

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(2)  If the department determines that there is no positive

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percentage change, then no adjustment to the base amounts shall

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occur for the relevant time period provided for in this

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subsection.

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

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positive percentage change in the first year that the

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determination is made under paragraph (1), the positive

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percentage change shall be multiplied by each base amount and

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the products shall be added to the base amounts, respectively,

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and the sums shall be preliminary adjusted amounts.

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(ii)  The preliminary adjusted amounts shall be rounded to

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

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

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(b).

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

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

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Average, the positive percentage change shall be multiplied by

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the most recent preliminary adjusted amounts and the products

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shall be added to the preliminary adjusted amount of the prior

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year to calculate the preliminary adjusted amounts for the

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

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

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

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(5)  The determinations and adjustments required under this

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subsection shall be made in the period between October 1 and

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November 15 of the year following the effective date of this

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subsection, and annually between October 1 and November 15 of

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each year thereafter.

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(6)  The final adjusted base amounts and new final adjusted

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base amounts obtained under paragraphs (3) and (4) shall become

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effective January 1 for the calendar year following the year in

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which the determination required under paragraph (1) is made.

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(7)  The department shall publish notice in the Pennsylvania

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Bulletin prior to January 1 of each calendar year of the annual

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percentage change determined under paragraph (1) and the

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unadjusted or final adjusted base amounts determined under

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paragraphs (3) and (4) at which competitive bidding is required

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under subsection (a) and written or telephonic price quotations

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are required under subsection (b), respectively, for the

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calendar year beginning the first day of January after

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publication of the notice. The notice shall include a written

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and illustrative explanation of the calculations performed by

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the department in establishing the unadjusted or final adjusted

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base amounts under this subsection for the ensuing calendar

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year.

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(8)  No adjustment to the base amounts specified under

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

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recently adjusted base amount.

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(c)  No municipality shall evade the provisions of this

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section as to advertising for bids or purchasing materials or

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contracting for services piecemeal for the purpose of obtaining

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prices under [ten thousand dollars ($10,000)] the amount

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required by this section upon transactions which should, in the

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exercise of reasonable discretion and prudence, be conducted as

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one transaction amounting to more than [ten thousand dollars

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($10,000)] the amount required by this section. This provision

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is intended to make unlawful the practice of evading advertising

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requirements by making a series of purchases or contracts each

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for less than the advertising requirement price or by making

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several simultaneous purchases or contracts each below said

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price, when in either case the transaction involved should have

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been made as one transaction for one price.

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(d)  Any member of a governing body of a municipality who

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votes to unlawfully evade the provisions of this section and who

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knows that the transaction upon which he so votes is or ought to

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be a part of a larger transaction and that it is being divided

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in order to evade the requirements as to advertising for bids

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commits a misdemeanor of the third degree for each contract

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entered into as a direct result of that vote.

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(e)  Every contract for the construction, reconstruction,

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alteration, repair, improvement or maintenance of public works

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shall comply with the provisions of the act of March 3, 1978

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(P.L.6, No.3), known as the "Steel Products Procurement Act."

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Section 2.  The amendment of section 3 of the act shall apply

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to contracts and purchases advertised after December 31 of the

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year in which this section takes effect.

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Section 3.  This act shall take effect immediately.

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