PRIOR PRINTER'S NO. 2513 PRINTER'S NO. 3257
No. 1871 Session of 2005
INTRODUCED BY PETRI, HERMAN, LESCOVITZ, HANNA, M. KELLER,
HARHAI, O'NEILL, KAUFFMAN, ROSS, HARPER, HICKERNELL,
T. STEVENSON, McNAUGHTON, GINGRICH, HENNESSEY, BIANCUCCI,
ARMSTRONG, BALDWIN, BOYD, CAPPELLI, DALLY, DENLINGER,
DeWEESE, FRANKEL, GEIST, HARRIS, HERSHEY, McILHATTAN,
PHILLIPS, SCAVELLO AND WATSON, JULY 3, 2005
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, DECEMBER 6, 2005
AN ACT
1 Amending the act of July 29, 1953 (P.L.1034, No.270), entitled,
2 as amended, "An act creating as bodies corporate and politic
3 "Public Auditorium Authorities" in counties of the second
4 class and in cities of the second class and in cities of the
5 second class A and counties in which a city of the second
6 class A is located, singly or jointly; prescribing the
7 rights, powers and duties of such Authorities; authorizing
8 such Authorities to acquire, construct, improve, maintain and
9 operate public auditoriums; to borrow money and issue bonds
10 therefor; providing for the payment of such bonds and
11 prescribing the rights of the holders thereof; conferring the
12 right of eminent domain on such Authorities; empowering such
13 Authorities to enter into contracts, leases and licenses with
14 and to accept grants from private sources, the Federal
15 Government, State, political subdivisions of the State or any
16 agency thereof; authorizing the making of said grants from
17 bond funds or current revenues; authorizing Authorities to
18 collect rentals, admissions, license fees for the use of the
19 project; exempting the property and securities of such Public
20 Auditorium Authorities from taxation," increasing the dollar
21 amount of supplies and materials which may be purchased
22 without advertising.
23 The General Assembly of the Commonwealth of Pennsylvania
24 hereby enacts as follows:
25 Section 1. Section 11 of the act of July 29, 1953 (P.L.1034,
1 No.270), known as the Public Auditorium Authorities Law, amended
2 July 10, 1990 (P.L.376, No.88), is amended to read:
3 Section 11. Competition in Award of Contracts.
4 A. All construction, reconstruction, repairs or work of any
5 nature made by any Authority, where the entire cost, value or
6 amount of such construction, reconstruction, repairs or work,
7 including labor and materials, shall exceed [ten thousand
8 dollars ($10,000)] twenty-five thousand dollars ($25,000) <--
9 EIGHTEEN THOUSAND DOLLARS ($18,000), subject to annual <--
10 adjustment under subsection I, except construction,
11 reconstruction, repairs or work done by employes of said
12 Authority or by labor supplied under agreement with any Federal
13 or State agency with supplies and materials purchased, as
14 hereinafter provided, shall be done only under contract or
15 contracts to be entered into by the Authority with the lowest
16 responsible bidder upon proper terms, after due public notice
17 has been given asking for competitive bids hereinafter provided.
18 No contract shall be entered into for construction or
19 improvement or repair of any project or portion thereof unless
20 the contractor shall give an undertaking, with a sufficient
21 surety or sureties approved by the Authority and in an amount
22 fixed by the Authority, for the faithful performance of the
23 contract. All such contracts shall provide, among other things,
24 that the person or corporation entering into such contract with
25 the Authority will pay for all materials furnished and services
26 rendered for the performance of the contract and that any person
27 or corporation furnishing such materials or rendering such
28 services may maintain an action to recover for the same against
29 the obligor in the undertaking as though such person or
30 corporation was named therein, provided the action is brought
20050H1871B3257 - 2 -
1 within one year after the time the cause of action accrued.
2 Nothing in this section shall be construed to limit the power of
3 the Authority to construct, repair or improve any project or
4 portion thereof or any addition, betterment or extension thereto
5 directly by the officers, agents and employes of the Authority
6 or otherwise than by contract.
7 B. All supplies and materials costing [ten thousand dollars
8 ($10,000)], subject to annual adjustment under subsection I,
9 twenty-five thousand dollars ($25,000) EIGHTEEN THOUSAND DOLLARS <--
10 ($18,000) or more shall be purchased only after due
11 advertisement as hereinafter provided. The Authority shall
12 accept the lowest bid or bids, kinds, quality and material being
13 equal, but the Authority shall have the right to reject any or
14 all bids or select a single item from any bid. The provisions as
15 to bidding shall not apply to the purchase of patented and
16 manufactured products offered for sale in a non-competitive
17 market or solely by a manufacturer's authorized dealer.
18 B.1. Written or telephonic price quotations from at least
19 three (3) qualified and responsible contractors shall be
20 requested for all contracts that exceed [four thousand dollars
21 ($4,000)] ten thousand dollars ($10,000) SEVEN THOUSAND DOLLARS <--
22 ($7,000), subject to annual adjustment under subsection I, but
23 are less than the amount requiring advertisement and competitive
24 bidding or, in lieu of price quotations, a memorandum shall be
25 kept on file showing that fewer than three (3) qualified
26 contractors exist in the market area within which it is
27 practicable to obtain quotations. A written record of telephonic
28 price quotations shall be made and shall contain at least the
29 date of the quotation, the name of the contractor and the
30 contractor's representative, the construction, reconstruction,
20050H1871B3257 - 3 -
1 repair, maintenance or work which was the subject of the
2 quotation and the price. Written price quotations, written
3 records of telephonic price quotations and memoranda shall be
4 retained for a period of three (3) years.
5 C. The terms, advertisement or due public notice, wherever
6 used in this section, shall mean a notice published at least ten
7 (10) days before the award on any contract in a newspaper of
8 general circulation published in the municipality where the
9 Authority has its principal office, and if no newspaper is
10 published therein then by publication in a newspaper in the
11 county where the Authority has its principal office: Provided,
12 That such notice may be waived where the Authority determines an
13 emergency exists and such supplies and materials must be
14 immediately purchased by the said Authority.
15 D. No member of the Authority or officer or employe thereof
16 shall, either directly or indirectly, be a party to or be in any
17 manner interested in any contract or agreement with the
18 Authority for any matter, cause or thing whatsoever, by reason
19 whereof any liability or indebtedness shall in any way be
20 created against such Authority. If any contract or agreement
21 shall be made in violation of the provision of this section, the
22 same shall be null and void and no action shall be maintained
23 thereon against such Authority.
24 E. Subject to the aforesaid, any Authority may (but without
25 intending by this provision to limit any powers of such
26 Authority) enter into and carry out such contracts or establish
27 or comply with such rules and regulations concerning labor and
28 materials and other related matters, in connection with any
29 project or portion thereof, as the Authority may deem desirable,
30 or as may be requested by any Federal agency that may assist in
20050H1871B3257 - 4 -
1 the financing of such project or any part thereof: Provided,
2 however, That the provisions of this section shall not apply to
3 any case in which the Authority has taken over by transfer or
4 assignment any contract authorized to be assigned to it under
5 the provisions of section ten of this act, nor to any contract
6 in connection with the construction of any project which the
7 Authority may have had transferred to it by any person or
8 private corporation.
9 F. Every contract for the construction, reconstruction,
10 alteration, repair, improvement or maintenance of public works
11 shall comply with the provisions of the act of March 3, 1978
12 (P.L.6, No.3), known as the "Steel Products Procurement Act."
13 G. An Authority shall not evade the provisions of this
14 section as to advertising for bids or purchasing materials or
15 contracting for services piecemeal for the purpose of obtaining
16 prices under [ten thousand dollars ($10,000)] twenty-five <--
17 thousand dollars ($25,000) EIGHTEEN THOUSAND DOLLARS ($18,000), <--
18 subject to annual adjustment under subsection I, upon
19 transactions which should, in the exercise of reasonable
20 discretion and prudence, be conducted as one transaction
21 amounting to more than [ten thousand dollars ($10,000)] twenty- <--
22 five thousand dollars ($25,000) EIGHTEEN THOUSAND DOLLARS <--
23 ($18,000), subject to annual adjustment under subsection I. This
24 provision is intended to make unlawful the practice of evading
25 advertising requirements by making a series of purchases or
26 contracts each for less than the advertising requirement price
27 or by making several simultaneous purchases or contracts each
28 below said price, when in either case the transaction involved
29 should have been made as one transaction for one price.
30 H. Any member of the Authority who votes to unlawfully evade
20050H1871B3257 - 5 -
1 the provisions of this section and who knows that the
2 transaction upon which he so votes is or ought to be a part of a
3 larger transaction and that it is being divided in order to
4 evade the requirements as to advertising for bids commits a
5 misdemeanor of the third degree for each contract entered into
6 as a direct result of that vote.
7 I. (1) The Department of Labor and Industry shall determine <--
8 the percentage change in the Consumer Price Index for All Urban
9 Consumers for the twelve-month period ending September 30 of the
10 calendar year in which this subsection becomes effective, and
11 for each successive twelve-month period thereafter.
12 I. (1) ANNUALLY, BEGINNING WITH THE YEAR IN WHICH THIS <--
13 SUBSECTION BECOMES APPLICABLE TO CONTRACTS AND PURCHASES, THE
14 DEPARTMENT OF LABOR AND INDUSTRY SHALL CALCULATE THE PERCENTAGE
15 CHANGE IN THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS (CPI-
16 U) FOR THE UNITED STATES CITY AVERAGE FOR ALL ITEMS AS PUBLISHED
17 BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR
18 STATISTICS, FOR THE TWELVE-MONTH AVERAGE ENDING IN SEPTEMBER OF
19 THE PRIOR YEAR.
20 (2) The amounts at which competitive bidding and written or
21 telephonic price quotations are required under this section
22 shall be adjusted annually as follows:
23 (i) In the case of competitive bidding, the positive
24 percentage change, as determined in accordance with clause (1),
25 shall be multiplied by the amount applicable under subsection A,
26 B or G for the current year and the product thereof shall be
27 added to the amount applicable under subsection A, B or G for
28 the current year, with the result rounded to the nearest
29 multiple of ten dollars ($10).
30 (ii) In the case of written or telephonic price quotations,
20050H1871B3257 - 6 -
1 the positive percentage change, as determined in accordance with
2 clause (1), shall be multiplied by the amount applicable under
3 subsection B.1 for the current year and the product thereof
4 shall be added to the amount applicable under subsection B.1 for
5 the current year, with the result rounded to the nearest
6 multiple of ten dollars ($10).
7 (3) The annual determination required under clause (1) and
8 the calculation of the adjustments required under clause (2)
9 shall be made in the period between October 1 and November 15 of
10 the year following the effective date of this subsection, and
11 annually between October 1 and November 15 of each successive
12 year.
13 (4) The adjusted amounts obtained in accordance with clause
14 (2) shall become effective January 1 for the calendar year
15 following the year in which the determination required under
16 clause (1) is made.
17 (5) The Department of Labor and Industry shall give notice
18 in the Pennsylvania Bulletin prior to January 1 of each calendar
19 year of the annual percentage change determined in accordance
20 with clause (1) and the amounts, whether adjusted or unadjusted
21 in accordance with clause (2), at which competitive bidding is
22 required and written or telephonic price quotations are required
23 for the calendar year beginning the first day of January after
24 publication of the notice.
25 Section 2. This act shall apply to contracts and purchases
26 advertised on or after January 1 of the year following the
27 effective date of this section.
28 Section 3. This act shall take effect in 60 days.
E19L64RLE/20050H1871B3257 - 7 -