THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

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

AS AMENDED ON THIRD CONSIDERATION, SEPTEMBER 26, 2011   

AN ACT

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," providing for adjustments based on

Consumer Price Index; and further providing for work to be

done under contract let on bids and exception, for purchase

of supplies, for contracts for construction, repair,

renovation or maintenance, for project contracts and for

powers and duties of institution presidents.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of March 10, 1949 (P.L.30, No.14), known

as the Public School Code of 1949, is amended by adding a

section to read:

Section 119.  Adjustments Based on Consumer Price Index.--

Adjustments to the base amounts 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.

(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) hundred dollars

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

(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) hundred dollars ($100) to

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determine the new final adjusted base amounts.

(5)  The determinations and adjustments required under this

section shall be made in the period between October 1 and

November 15 of the year following the effective date of this

section, 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

and written or telephonic price quotations are required,

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 section for

the ensuing calendar year.

(8)  No adjustment to the base amounts shall exceed three

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percent of the most recently adjusted base amount. The annual

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increase in the preliminary adjusted base amounts obtained under

paragraphs (3) and (4) shall not exceed three percent (3%).

Section 2.  Sections 751(a), (a.1), (b) and (f) and 807.1 of

the act, amended or added May 4, 1990 (P.L.164, No.38), are

amended to read:

Section 751.  Work to be Done Under Contract Let on Bids;

Exception.--(a)  All construction, reconstruction, repairs,

maintenance or work of any nature, including the introduction of

plumbing, heating and ventilating, or lighting systems, upon any

school building or upon any school property, or upon any

building or portion of a building leased under the provisions of

section 703.1, made by any school district, where the entire

cost, value, or amount of such construction, reconstruction,

repairs, maintenance or work, including labor and material,

shall exceed [ten thousand dollars ($10,000)] a base amount of

eighteen thousand five hundred dollars ($18,500), subject to

adjustment under section 119, shall be done under separate

contracts to be entered into by such school district with the

lowest responsible bidder, upon proper terms, after due public

notice has been given asking for competitive bids. Whenever a

board of school directors shall approve the use of a

prefabricated unit, complete in itself, for a school building or

other proper structure to be erected upon school property, the

board of school directors may have prepared appropriate

specifications detailing the size and material desired in a

particular prefabricated unit, including all utilities such as

plumbing, heating and ventilating, and electrical work, and may

advertise for a single bid on all the work and award the

contract therefor to the lowest responsible bidder: Provided,

That if due to an emergency a school plant or any part thereof

becomes unusable competitive bids for repairs or replacement may

be solicited from at least three responsible bidders, and upon

the approval of any of these bids by the Secretary of Education,

the board of school directors may proceed at once to make the

necessary repairs or replacements in accordance with the terms

of said approved bid or bids.

(a.1)  Written or telephonic price quotations from at least

three qualified and responsible contractors shall be requested

by the board of school directors for all contracts that exceed 

[four thousand dollars ($4,000)] a base amount of ten thousand

dollars ($10,000), subject to adjustment under section 119, 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)  The board of school directors in any school district may

perform any construction, reconstruction, repairs, or work of

any nature, where the entire cost or value, including labor and

material, is less than [five thousand dollars ($5000)] a base

amount of ten thousand dollars ($10,000), subject to adjustment

under section 119, by its own maintenance personnel. The board

of school directors in any school district may authorize the

secretary of the board or other executive to award contracts for

construction, reconstruction, repairs, or work of any nature,

where the entire cost or value, including labor and material, 

[is ten thousand dollars ($10,000)] subject to adjustment under

section 119, is a base amount of eighteen thousand five hundred

dollars ($18,500) or less, without soliciting competitive bids,

subject, however, to the provisions of subsection (a.1).

* * *

(f)  No board of school directors shall evade the provisions

of this section as to advertising for bids or purchasing

materials or contracting for services piecemeal for the purpose

of obtaining prices under [ten thousand dollars ($10,000)] a

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

subject to adjustment under section 119, 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)] a base amount of eighteen thousand

five hundred dollars ($18,500), subject to adjustment under

section 119. 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.

Section 807.1.  Purchase of Supplies.--(a)  All furniture,

equipment, textbooks, school supplies and other appliances for

the use of the public schools, costing [ten thousand dollars

($10,000)], subject to adjustment under section 119, a base

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

more shall be purchased by the board of school directors only

after due advertisement as hereinafter provided. Supplies

costing [ten thousand dollars ($10,000)], subject to adjustment

under section 119, a base amount of eighteen thousand five

hundred dollars ($18,500) or more shall be purchased by the

board of school directors only after public notice has been

given by advertisement once a week for three (3) weeks in not

less than two (2) newspapers of general circulation. In any

district where no newspaper is published, said notice may, in

lieu of such publication, be posted in at least five (5) public

places.

(a.1)  Written or telephonic price quotations from at least

three qualified and responsible vendors shall be requested by

the board of school directors for all purchases of supplies that

exceed [four thousand dollars ($4,000)] a base amount of ten

thousand dollars ($10,000), subject to adjustment under section 

119, 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 vendors 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 vendor and the vendor's

representative, the supplies which were the subject of the

quotation and the price of the supplies. Written price

quotations, written records of telephonic price quotations and

memoranda shall be retained for a period of three years.

(b)  The board of school directors shall accept the bid of

the lowest responsible bidder, kind, quality, and material being

equal, but shall have the right to reject any and all bids, or

select a single item from any bid. The board of school directors

in any district may authorize or appoint the secretary of the

board or other executive as purchasing agent for the district,

with authority to purchase supplies [costing] that cost a base

amount of less than [ten thousand dollars ($10,000)] eighteen

thousand five hundred dollars ($18,500), subject to adjustment

under section 119.

(c)  The following shall be exempt from the above provisions:

maps, music, globes, charts, educational films, filmstrips,

prepared transparencies and slides, pre-recorded magnetic tapes

and disc recordings, textbooks, games, toys, prepared kits,

flannel board materials, flash cards, models, projectuals and

teacher demonstration devices necessary for school use.

(d)  No board of school directors shall evade the provisions

of this section as to advertising for bids or purchasing

materials piecemeal 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 119, 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)] a base amount of eighteen thousand five hundred

dollars ($18,500), subject to adjustment under section 119. 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.

Section 3.  Section 1913-B.1(c) of the act, added December 9,

2002 (P.L.1472, No.187), is amended to read:

Section 1913-B.1.  Contracts for Construction, Repair,

Renovation or Maintenance.--* * *

(c)  All contracts, other than contracts for the retention of

architects and engineers, authorized by this section which

exceed [ten thousand dollars ($10,000) or any larger amount as

otherwise provided for in 62 Pa.C.S. (relating to procurement)] 

a base amount of eighteen thousand five hundred dollars

($18,500), subject to adjustment under section 119, shall be

advertised in the manner provided by law and competitively bid

and awarded to the lowest responsible bidder. In case of

emergencies and notwithstanding any other provision of this

section to the contrary, the board of trustees may make or

authorize others to make an emergency procurement whenever a

threat exists to public health, welfare or safety or

circumstances outside the control of the college and creates an

urgency of need which does not permit the delay involved in

using more formal competitive methods. Whenever practical, in

the case of a procurement of a supply, at least two (2) bids

shall be solicited. A written determination of the basis for the

emergency and for the selection of the particular contractor

shall be included in the contract file.

* * *

Section 4.  Section 2003-A.1(c) of the act, amended April 27,

1998 (P.L.270, No.46), is amended and the section is amended by

adding a subsection to read:

Section 2003-A.1.  Project Contracts.--* * *

(c)  All contracts, other than contracts for the retention of

architects and engineers, authorized by this section which

exceed [ten thousand dollars ($10,000)] a base amount of

eighteen thousand five hundred dollars ($18,500), subject to

adjustment under subsection (c.1), shall be advertised in the

manner provided by law and competitively bid and awarded to the

lowest responsible bidder. In case of emergencies and

notwithstanding any other provision of this section to the

contrary, the chancellor may make or authorize others to make an

emergency procurement whenever a threat exists to public health,

welfare or safety or circumstances outside the control of the

State system and creates an urgency of need which does not

permit the delay involved in using more formal competitive

methods. Whenever practical, in the case of a procurement of a

supply, at least two (2) bids shall be solicited. A written

determination of the basis for the emergency and for the

selection of the particular contractor shall be included in the

contract file.

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

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

average annual 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.

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

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percentage change, then no adjustment to the base amounts shall

occur for the relevant time period.

(2)  The positive percentage change, as determined in

accordance with clause (1), shall be multiplied by the amount

applicable under subsection (c) for the current period and the

product thereof shall be added to the amount applicable under

subsection (c) for the current period, with the result rounded

to the nearest multiple of one thousand dollars ($1,000) hundred

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dollars ($100).

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

calculation adjustments required under clause (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 clause

(2) shall become effective January 1 for the period following

the year in which the determination required under clause (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 is determined in accordance

with clause (1) of the amounts, whether adjusted or unadjusted

in accordance with clause (2), at which competitive bidding is

required under subsection (c) for the period beginning the first

day of January after publication of the notice.

(6)  No adjustment to the base amounts shall exceed three

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percent of the most recently adjusted base amount. The annual

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increase in the preliminary adjusted base amounts obtained under

clauses (3) and (4) shall not exceed three percent (3%).

* * *

Section 4.1.  Section 2010-A of the act, amended April 27,

1998 (P.L.270, No.46), is amended to read:

Section 2010-A.  Power and Duties of Institution

Presidents.--The president of each institution shall be

appointed by the board. The president shall be the chief

executive officer of that institution. He shall have the right

to attend all meetings of the council of that institution and

shall have the right to speak on all matters before the council

but not to vote. Subject to the stated authority of the board

and the council, each president shall have the following powers

and duties:

* * *

(10)  Within the limitations of the operating budget and

other available funds in accordance with the procedures

established by the board and with the approval of the local

council, to negotiate and award all contracts for equipment,

services and supplies in excess of a cost of [ten thousand

dollars ($10,000)] a base amount of eighteen thousand five

hundred dollars ($18,500), subject to adjustment under section 

119, on a competitive bid basis and to purchase instructional,

educational, extracurricular, technical, administrative,

custodial and maintenance equipment and supplies not in excess

of a cost of [ten thousand dollars ($10,000)] a base amount of

eighteen thousand five hundred dollars ($18,500), subject to

adjustment under section 119, without competitive bidding,

except that such items shall not be bought in series to avoid

the dollar ceiling.

* * *

Section 5.  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 6.  This act shall take effect in 60 days.