PRINTER'S NO. 503
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
478
Session of
2021
INTRODUCED BY DUSH, HUTCHINSON, J. WARD, SCHWANK AND KEARNEY,
MARCH 31, 2021
REFERRED TO LOCAL GOVERNMENT, MARCH 31, 2021
AN ACT
Amending 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," further
providing for title of the act; adding a short title; and
providing for contracts for services.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The title of 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," is amended to read:
AN ACT
Authorizing political subdivisions, municipality authorities and
transportation authorities to enter into contracts for
services, the purchase of goods and the sale of real and
personal property where no bids are received.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Section 2. The act is amended by adding a section to read:
Section 1. Short title.
This act shall be known and may be cited as the Public
Contract Bid Nonreceipt Act.
Section 3. Section 1 of the act is renumbered and amended by
adding subsections to read:
Section [1] 1.1. Nonreceipt of bids.
(a) Purchase of goods.--When a political subdivision,
municipality authority or transportation authority advertises
for bids on an item and no bids are received, the political
subdivision, municipality authority or transportation authority
shall rebid the item. If again such bids are not received, the
political subdivision, municipality authority or transportation
authority may purchase or enter into contracts for the purchase
of any item where no bids are received from suppliers for the
item within 45 days of the date of second advertisement
therefor.
(b) Sale of property.--When a political subdivision,
municipality authority or transportation authority is required
to advertise for bids in order to sell real or personal property
and no bids are received, the political subdivision,
municipality authority or transportation authority may proceed
as follows:
(1) The political subdivision, municipality authority or
transportation authority may advertise for bids a second
time.
(2) If no bids are received within 15 days of the second
advertisement, the political subdivision, municipality
authority or transportation authority may initiate
negotiations for a private sale of the property, taking into
20210SB0478PN0503 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
consideration its fair market value.
(3) The political subdivision, municipality authority or
transportation authority must publicly announce the identity
of the parties, the sale price and a summary of the other
terms and conditions relating to any proposed private sale at
a regular or special meeting of its governing body.
(4) After the public announcement of the sale is made in
accordance with paragraph (3), at least 30 days must elapse
before a political subdivision, municipality authority or
transportation authority may authorize the private sale in
accordance with this subsection.
(c) Contracts for services.--When a political subdivision,
municipality authority or transportation authority is required
to advertise for bids in order to enter into a contract for
services and no bids are received, the political subdivision,
municipality authority or transportation authority may proceed
as follows:
(1) The political subdivision, municipality authority or
transportation authority may advertise for bids a second
time.
(2) If no bids are received within 15 days of the second
advertisement, the political subdivision, municipality
authority or transportation authority may initiate
negotiations for a contract to obtain the services previously
advertised, with any provider not otherwise disqualified by
law or an enactment or policy of the governing body.
(3) Prior to executing the contract, the political
subdivision, municipality authority or transportation
authority, at a regular or special meeting of its governing
body, must publicly announce the identity of the parties, the
20210SB0478PN0503 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
proposed contract price and a summary of the other terms and
conditions relating to any proposed contract in order to
demonstrate that the services to be procured are consistent
with those previously advertised.
(d) Evasion.--The penalties, civil or criminal, surcharges
and other liability set forth in law, regulation or ordinance
for evading an advertising requirement for bids shall apply to a
member of the governing body of a political subdivision,
municipality authority or transportation authority who votes for
a transaction under this section with the intent to evade the
advertising requirement of the applicable law, regulation or
ordinance.
(e) Definition.--As used in this section, the term
"services" means the furnishing of labor, time or effort by a
contractor not involving the delivery of a specific end product
other than drawings, specifications or reports which are merely
incidental to the required performance. The term includes the
routine operation or maintenance of existing structures,
buildings or real property, the repair or rehabilitation of
existing infrastructure and utility services, or those services
formerly provided by public utilities, such as electrical,
telephone, water and sewage service. The term does not include
employment agreements or collective bargaining agreements.
Section 4. This act shall take effect in 60 days.
20210SB0478PN0503 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24