PRIOR PRINTER'S NOS. 267, 971, 1565

PRINTER'S NO.  1595

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

293

Session of

2011

  

  

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

  

  

AS AMENDED ON THIRD CONSIDERATION, SEPTEMBER 26, 2011   

  

  

  

AN ACT

  

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Amending the act of July 5, 1947 (P.L.1217, No.498), entitled

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"An act to promote the education and educational facilities

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of the people of the Commonwealth of Pennsylvania; creating a

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State Public School Building Authority as a body corporate

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and politic with power to construct, improve and operate

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projects and to lease the same and to fix and collect fees,

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rentals and charges for the use thereof; authorizing school

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districts to enter into contracts to lease; authorizing and

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regulating the issuance of bonds by said Authority; and

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providing for the payment of such bonds and the rights of the

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holders thereof; granting the right of eminent domain;

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increasing the powers and duties of the Department of Public

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Instruction; and providing that no debt of the Commonwealth

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shall be incurred in the exercise of any of eminent domain;

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increasing the powers and duties of the Department of Public

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Instruction; and providing that no debt of the Commonwealth

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shall be incurred in the exercise of any of the powers

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granted under this act; and making an appropriation to said

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Authority to pay expenses incident to its formation," further

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providing for competitive bidding of contracts; and providing

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for evasion of advertising requirements.

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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 10 of the act of July 5, 1947 (P.L.1217,

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No.498), known as the State Public School Building Authority

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Act, amended April 20, 1949 (P.L.636, No.142), October 4, 1978

 


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(P.L.1024, No.227) and December 22, 1981 (P.L.554, No.164), is

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amended to read:

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Section 10.  Competition in Award of Contracts.--(a)  If any

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project or any portion thereof, or any improvement thereof,

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shall be constructed pursuant to a contract, and the estimated

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cost thereof exceeds [four thousand dollars ($4,000)]  the base

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

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subject to adjustment under  subsection (b), such contract shall

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be awarded to the lowest responsible bidder after advertisement

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for bids once a week for three weeks in at least one newspaper

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of general circulation in the county where the project or

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improvement is located. The authority may make rules and

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regulations for the submission of bids and the construction or

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improvement of any project or portion thereof. No contract shall

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be entered into for construction or improvement of any project

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or portion thereof, or for the purchase of materials, unless the

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contractor shall give an undertaking with a sufficient surety or

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sureties approved by the Authority, and in an amount fixed by

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the Authority, for the faithful performance of the contract, and

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such contract shall be accompanied by an additional bond for the

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protection of those who furnish labor and material, for such

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amount and subject to the same terms and conditions as

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recommended by The Administrative Code of one thousand nine

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hundred twenty-nine, as amended, on contracts entered into by

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the Department of General Services for the erection of

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buildings. All construction contracts shall provide, among other

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things, that the person or corporation entering into such

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contract with the Authority will pay for all materials furnished

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and services rendered, for the performance of the contract, and

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that any person or corporation furnishing such materials or

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rendering such services may maintain an action to recover for

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the same against the obligor in the undertaking as though such

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person or corporation was named therein, provided the action is

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brought within one year after the time the cause of action

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accrued. Nothing in this section shall be construed to limit the

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power of the Authority to construct any project or portion

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thereof or any addition, betterment or extension thereto,

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directly by the officers, agents and employes of the Authority,

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or otherwise than by contract.

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Subject to the aforesaid, the Authority may (but without

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intending by this provision to limit any powers of such

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Authority), enter into and carry out such contracts, or

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establish or comply with such rules and regulations concerning

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labor and materials and other related matters in connection with

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any project or portion thereof as the Authority may deem

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desirable, or as may be requested by any Federal agency that may

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assist in the financing of such project or any part thereof.

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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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(b)  Adjustments to the base amounts specified under

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subsection (a) 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) hundred dollars

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($100), to determine the final adjusted base amounts for

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purposes of subsection (a).

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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) hundred dollars ($100) to

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determine the new final adjusted base amounts for purposes of

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subsection (a).

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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) for the calendar year beginning the first

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day of January after publication of the notice. The notice shall

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include a written and illustrative explanation of the

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calculations performed by the department in establishing the

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unadjusted or final adjusted base amounts under this subsection

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for the ensuing calendar year.

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(8)  No adjustment to the base amounts specified under

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subsection (a) shall exceed three per centum of the most

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recently adjusted base amount.

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Section 2.  The act is amended by adding a section to read:

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Section 10.1.  Evasion of Advertising Requirements.--No

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member of the Authority shall evade the provisions of section 10

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as to advertising for bids, by purchasing or contracting for

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services and personal properties piecemeal to obtain prices

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under the required advertising price, subject to annual

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adjustment under section 10(b). This provision is intended to

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make unlawful the evading of advertising requirements by making

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a series of purchases or contracts each for less than the

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advertising requirement price, or by making several simultaneous

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purchases or contracts, each below said price, when in either

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case, the transactions involved should have been made as one

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transaction for one price. Any members of the Authority who so

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vote in violation of this provision, and who know that the

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transaction upon which they so vote is or ought to be a part of

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a larger transaction, and that it is being divided in order to

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evade the requirements as to advertising for bids, shall be

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jointly and severally subject to surcharge for ten per centum of

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the full amount of the contract or purchase. Whenever it shall

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appear that a member of the Authority may have voted in

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violation of this section, but the purchase or contract on which

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the member so voted was not approved by the Authority, this

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section shall be inapplicable.

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Section 3.  The amendment or addition of sections 10 and 10.1

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(8)  The annual increase in the preliminary adjusted base

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

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three per centum.

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Section 2.  The amendment of section 10 of the act shall

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apply to contracts and purchases advertised on or after January

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1 of the year following the effective date of this section.

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Section 4 3.  This act shall take effect immediately.

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