Bill Text: PA HB2325 | 2011-2012 | Regular Session | Amended


Bill Title: In preliminary provisions, further providing for adjustments based on Consumer Price Index; in grounds and buildings, further providing for work to be done under contract let on bids and exception; in books, furniture and supplies, further providing for purchase of supplies; in Thaddeus Stevens College of Technology, further providing for contracts for construction, repair, renovation or maintenance; and, in State System of Higher Education, further providing for project contracts and for powers and duties of institution presidents.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-06-25 - Laid on the table [HB2325 Detail]

Download: Pennsylvania-2011-HB2325-Amended.html

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PRIOR PRINTER'S NO. 3400

PRINTER'S NO.  3528

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

2325

Session of

2012

  

  

INTRODUCED BY M. K. KELLER, APRIL 25, 2012

  

  

REFERRED TO COMMITTEE ON LOCAL GOVERNMENT,  APRIL 25, 2012   

  

  

  

AN ACT

  

1

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

2

act relating to the public school system, including certain

3

provisions applicable as well to private and parochial

4

schools; amending, revising, consolidating and changing the

5

laws relating thereto," in preliminary provisions, further

6

providing for adjustments based on Consumer Price Index; in

7

grounds and buildings, further providing for work to be done

8

under contract let on bids and exception; in books, furniture

9

and supplies, further providing for purchase of supplies; in

10

Thaddeus Stevens College of Technology, further providing for

11

contracts for construction, repair, renovation or

12

maintenance; and, in State System of Higher Education,

13

further providing for project contracts and for powers and

14

duties of institution presidents.

<--

15

The General Assembly of the Commonwealth of Pennsylvania

16

hereby enacts as follows:

17

Section 1.  Section 119 of the act of March 10, 1949 (P.L.30,

18

No.14), known as the Public School Code of 1949, added November

19

3, 2011 (P.L.400, No.97), is repealed:

<--

20

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

21

Adjustments to the base amounts shall be made as follows:

22

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

23

percentage change in the Consumer Price Index for All Urban

24

Consumers: All Items (CPI-U) for the United States City Average

 


1

as published by the United States Department of Labor, Bureau of

2

Labor Statistics, for the twelve-month period ending September

3

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

4

thereafter.

5

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

6

percentage change, then no adjustment to the base amounts shall

7

occur for the relevant time period.

8

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

9

positive percentage change in the first year that the

10

determination is made under paragraph (1), the positive

11

percentage change shall be multiplied by each base amount, and

12

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

13

and the sums shall be preliminary adjusted amounts.

14

(ii)  The preliminary adjusted amounts shall be rounded to

15

the nearest one hundred dollars ($100) to determine the final

16

adjusted base amounts.

17

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

18

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

19

Average, the positive percentage change shall be multiplied by

20

the most recent preliminary adjusted amounts, and the products

21

shall be added to the preliminary adjusted amount of the prior

22

year to calculate the preliminary adjusted amounts for the

23

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

24

one hundred dollars ($100) to determine the new final adjusted

25

base amounts.

26

(5)  The determinations and adjustments required under this

27

section shall be made in the period between October 1 and

28

November 15 of the year following the effective date of this

29

section and annually between October 1 and November 15 of each

30

year thereafter.

- 2 -

 


1

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

2

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

3

effective January 1 for the calendar year following the year in

4

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

5

(7)  The department shall publish notice in the Pennsylvania

6

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

7

percentage change determined under paragraph (1) and the

8

unadjusted or final adjusted base amounts determined under

9

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

10

and written or telephonic price quotations are required,

11

respectively, for the calendar year beginning the first day of

12

January after publication of the notice. The notice shall

13

include a written and illustrative explanation of the

14

calculations performed by the department in establishing the

15

unadjusted or final adjusted base amounts under this section for

16

the ensuing calendar year.

17

(8)  The annual increase in the preliminary adjusted base

18

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

19

three percent (3%).]

20

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

21

Section 120.  Adjustments Based on Consumer Price Index.--

22

Adjustments to the base amounts shall be made as follows:

23

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

24

percentage change in the Consumer Price Index for All Urban

25

Consumers: All Items (CPI-U) for the United States City Average

26

as published by the United States Department of Labor, Bureau of

27

Labor Statistics, for the twelve-month period ending September

28

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

29

thereafter.

30

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

- 3 -

 


1

percentage change, then no adjustment to the base amounts shall

2

occur for the relevant time period.

3

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

4

positive percentage change in the first year that the

5

determination is made under paragraph (1), the positive

6

percentage change shall be multiplied by each base amount, and

7

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

8

and the sums shall be preliminary adjusted amounts.

9

(ii)  The preliminary adjusted amounts shall be rounded to

10

the nearest one hundred dollars ($100) to determine the final

11

adjusted base amounts.

12

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

13

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

14

Average, the positive percentage change shall be multiplied by

15

the most recent preliminary adjusted amounts, and the products

16

shall be added to the preliminary adjusted amount of the prior

17

year to calculate the preliminary adjusted amounts for the

18

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

19

one hundred dollars ($100) to determine the new final adjusted

20

base amounts.

21

(5)  The determinations and adjustments required under this

22

section shall be made in the period between October 1 and

23

November 15, 2012, and annually between October 1 and November

24

15 of each year thereafter.

25

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

26

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

27

effective January 1 for the calendar year following the year in

28

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

29

(7)  The department shall publish notice in the Pennsylvania

30

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

- 4 -

 


1

percentage change determined under paragraph (1) and the

2

unadjusted or final adjusted base amounts determined under

3

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

4

and written or telephonic price quotations are required,

5

respectively, for the calendar year beginning the first day of

6

January after publication of the notice. The notice shall

7

include a written and illustrative explanation of the

8

calculations performed by the department in establishing the

9

unadjusted or final adjusted base amounts under this section for

10

the ensuing calendar year.

11

(8)  The annual increase in the preliminary adjusted base

12

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

13

three percent (3%).

14

Section 3.  Section 751(a), (a.1), (b) and (f) of the act,

15

amended November 3, 2011 (P.L.400, No.97), are amended and the

16

section is amended by adding subsections to read:

17

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

18

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

19

maintenance or work of any nature, including the introduction of

20

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

21

school building or upon any school property, or upon any

22

building or portion of a building leased under the provisions of

23

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

24

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

25

repairs, maintenance or work, including labor and material,

26

shall exceed a base amount of eighteen thousand five hundred

27

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

28

shall be done under separate contracts to be entered into by

29

such school district with the lowest responsible bidder, upon

30

proper terms, after due public notice has been given asking for

- 5 -

 


1

competitive bids. Whenever a board of school directors shall

2

approve the use of a prefabricated unit, complete in itself, for

3

a school building or other proper structure to be erected upon

4

school property, the board of school directors may have prepared

5

appropriate specifications detailing the size and material

6

desired in a particular prefabricated unit, including all

7

utilities such as plumbing, heating and ventilating, and

8

electrical work, and may advertise for a single bid on all the

9

work and award the contract therefor to the lowest responsible

10

bidder: Provided, That if due to an emergency a school plant or

11

any part thereof becomes unusable competitive bids for repairs

12

or replacement may be solicited from at least three responsible

13

bidders, and upon the approval of any of these bids by the

14

Secretary of Education, the board of school directors may

15

proceed at once to make the necessary repairs or replacements in

16

accordance with the terms of said approved bid or bids. 

17

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

18

three qualified and responsible contractors shall be requested

19

by the board of school directors for all contracts that exceed a 

20

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

21

adjustment under section 119, but are less than the amount

22

requiring advertisement and competitive bidding, or, in lieu of

23

price quotations, a memorandum shall be kept on file showing

24

that fewer than three qualified contractors exist in the market

25

area within which it is practicable to obtain quotations. A

26

written record of telephonic price quotations shall be made and

27

shall contain at least the date of the quotation, the name of

28

the contractor and the contractor's representative, the

29

construction, reconstruction, repair, maintenance or work which

30

was the subject of the quotation and the price. Written price

- 6 -

 


1

quotations, written records of telephonic price quotations and

2

memoranda shall be retained for a period of three years.]

3

(a.2)  All construction, reconstruction, repairs, maintenance

4

or work of any nature, including the introduction of plumbing,

5

heating and ventilating, or lighting systems, upon any school

6

building or upon any school property, or upon any building or

7

portion of a building leased under the provisions of section

8

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

9

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

10

maintenance or work, including labor and material, shall exceed 

11

a base amount of eighteen thousand five hundred dollars

12

($18,500), subject to adjustment under section 120, shall be

13

done under separate contracts to be entered into by such school

14

district with the lowest responsible bidder, upon proper terms,

15

after due public notice has been given asking for competitive

16

bids. Whenever a board of school directors shall approve the use

17

of a prefabricated unit, complete in itself, for a school

18

building or other proper structure to be erected upon school

19

property, the board of school directors may have prepared

20

appropriate specifications detailing the size and material

21

desired in a particular prefabricated unit, including all

22

utilities such as plumbing, heating and ventilating, and

23

electrical work, and may advertise for a single bid on all the

24

work and award the contract therefor to the lowest responsible

25

bidder: Provided, That if due to an emergency a school plant or

26

any part thereof becomes unusable competitive bids for repairs

27

or replacement may be solicited from at least three responsible

28

bidders, and upon the approval of any of these bids by the

29

Secretary of Education, the board of school directors may

30

proceed at once to make the necessary repairs or replacements in

- 7 -

 


1

accordance with the terms of said approved bid or bids.

2

(a.3)  Written or telephonic price quotations from at least

3

three qualified and responsible contractors shall be requested

4

by the board of school directors for all contracts that exceed a

5

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

6

adjustment under section 120, but are less than the amount

7

requiring advertisement and competitive bidding, or, in lieu of

8

price quotations, a memorandum shall be kept on file showing

9

that fewer than three qualified contractors exist in the market

10

area within which it is practicable to obtain quotations. A

11

written record of telephonic price quotations shall be made and

12

shall contain at least the date of the quotation, the name of

13

the contractor and the contractor's representative, the

14

construction, reconstruction, repair, maintenance or work which

15

was the subject of the quotation and the price. Written price

16

quotations, written records of telephonic price quotations and

17

memoranda shall be retained for a period of three years.

18

[(b)  The board of school directors in any school district

19

may perform any construction, reconstruction, repairs, or work

20

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

21

and material, is less than a base amount of ten thousand dollars

22

($10,000), subject to adjustment under section 119, by its own

23

maintenance personnel. The board of school directors in any

24

school district may authorize the secretary of the board or

25

other executive to award contracts for construction,

26

reconstruction, repairs, or work of any nature, where the entire

27

cost or value, including labor and material, subject to

28

adjustment under section 119, is a base amount of eighteen

29

thousand five hundred dollars ($18,500) or less, without

30

soliciting competitive bids, subject, however, to the provisions

- 8 -

 


1

of subsection (a.1).]

2

(b.1)  The board of school directors in any school district

3

may perform any construction, reconstruction, repairs, or work

4

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

5

and material, is less than a base amount of ten thousand dollars

6

($10,000), subject to adjustment under section 120, by its own

7

maintenance personnel. The board of school directors in any

8

school district may authorize the secretary of the board or

9

other executive to award contracts for construction,

10

reconstruction, repairs, or work of any nature, where the entire

11

cost or value, including labor and material, subject to

12

adjustment under section 120, is a base amount of eighteen

13

thousand five hundred dollars ($18,500) or less, without

14

soliciting competitive bids, subject, however, to the provisions

15

of subsection (a.3).

16

* * *

17

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

18

of this section as to advertising for bids or purchasing

19

materials or contracting for services piecemeal for the purpose

20

of obtaining prices under a base amount of eighteen thousand

21

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

22

section 119, upon transactions which should, in the exercise of

23

reasonable discretion and prudence, be conducted as one

24

transaction amounting to more than a base amount of eighteen

25

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

26

under section 119. This provision is intended to make unlawful

27

the practice of evading advertising requirements by making a

28

series of purchases or contracts each for less than the

29

advertising requirement price, or by making several simultaneous

30

purchases or contracts each below said price, when in either

- 9 -

 


1

case the transaction involved should have been made as one

2

transaction for one price.]

3

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

4

of this section as to advertising for bids or purchasing

5

materials or contracting for services piecemeal for the purpose

6

of obtaining prices under a base amount of eighteen thousand

7

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

8

section 120, upon transactions which should, in the exercise of

9

reasonable discretion and prudence, be conducted as one

10

transaction amounting to more than a base amount of eighteen

11

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

12

under section 120. This provision is intended to make unlawful

13

the practice of evading advertising requirements by making a

14

series of purchases or contracts each for less than the

15

advertising requirement price, or by making several simultaneous

16

purchases or contracts each below said price, when in either

17

case the transaction involved should have been made as one

18

transaction for one price.

19

Section 4.  Section 807.1 of the act, amended November 3,

20

2011 (P.L.400, No.97), is amended to read: 

21

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

22

equipment, textbooks, school supplies and other appliances for

23

the use of the public schools, costing, subject to adjustment

24

under section 119, a base amount of eighteen thousand five

25

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

26

board of school directors only after due advertisement as

27

hereinafter provided. Supplies costing, subject to adjustment

28

under section 119, a base amount of eighteen thousand five

29

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

30

board of school directors only after public notice has been

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1

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

2

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

3

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

4

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

5

places.

6

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

7

three qualified and responsible vendors shall be requested by

8

the board of school directors for all purchases of supplies that

9

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

10

to adjustment under section 119, but are less than the amount

11

requiring advertisement and competitive bidding, or, in lieu of

12

price quotations, a memorandum shall be kept on file showing

13

that fewer than three qualified vendors exist in the market area

14

within which it is practicable to obtain quotations. A written

15

record of telephonic price quotations shall be made and shall

16

contain at least the date of the quotation, the name of the

17

vendor and the vendor's representative, the supplies which were

18

the subject of the quotation and the price of the supplies.

19

Written price quotations, written records of telephonic price

20

quotations and memoranda shall be retained for a period of three

21

years.]

22

(a.2)  All furniture, equipment, textbooks, school supplies

23

and other appliances for the use of the public schools costing,

24

subject to adjustment under section 120, a base amount of

25

eighteen thousand five hundred dollars ($18,500) or more shall

26

be purchased by the board of school directors only after due

27

advertisement as hereinafter provided. Supplies costing, subject

28

to adjustment under section 120, a base amount of eighteen

29

thousand five hundred dollars ($18,500) or more shall be

30

purchased by the board of school directors only after public

- 11 -

 


1

notice has been given by advertisement once a week for three (3)

2

weeks in not less than two (2) newspapers of general

3

circulation. In any district where no newspaper is published,

4

said notice may, in lieu of such publication, be posted in at

5

least five (5) public places.

6

(a.3)  Written or telephonic price quotations from at least

7

three qualified and responsible vendors shall be requested by

8

the board of school directors for all purchases of supplies that

9

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

10

to adjustment under section 120, but are less than the amount

11

requiring advertisement and competitive bidding, or, in lieu of

12

price quotations, a memorandum shall be kept on file showing

13

that fewer than three (3) qualified vendors exist in the market

14

area within which it is practicable to obtain quotations. A

15

written record of telephonic price quotations shall be made and

16

shall contain at least the date of the quotation, the name of

17

the vendor and the vendor's representative, the supplies which

18

were the subject of the quotation and the price of the supplies.

19

Written price quotations, written records of telephonic price

20

quotations and memoranda shall be retained for a period of three

21

(3) years.

22

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

23

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

24

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

25

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

26

in any district may authorize or appoint the secretary of the

27

board or other executive as purchasing agent for the district,

28

with authority to purchase supplies that cost a base amount of 

29

less than eighteen thousand five hundred dollars ($18,500),

30

subject to adjustment under section 119.]

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1

(b.1)  The board of school directors shall accept the bid of

2

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

3

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

4

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

5

in any district may authorize or appoint the secretary of the

6

board or other executive as purchasing agent for the district,

7

with authority to purchase supplies that cost a base amount of

8

less than eighteen thousand five hundred dollars ($18,500),

9

subject to adjustment under section 120.

10

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

11

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

12

prepared transparencies and slides, pre-recorded magnetic tapes

13

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

14

flannel board materials, flash cards, models, projectuals and

15

teacher demonstration devices necessary for school use.

16

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

17

of this section as to advertising for bids or purchasing

18

materials piecemeal for the purpose of obtaining prices under

19

the base amount of eighteen thousand five hundred dollars

20

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

21

transactions which should, in the exercise of reasonable

22

discretion and prudence, be conducted as one transaction

23

amounting to more than a base amount of eighteen thousand five

24

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

25

119. This provision is intended to make unlawful the practice of

26

evading advertising requirements by making a series of purchases

27

or contracts each for less than the advertising requirement

28

price, or by making several simultaneous purchases or contracts

29

each below said price, when in either case the transaction

30

involved should have been made as one transaction for one

- 13 -

 


1

price.]

2

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

3

of this section as to advertising for bids or purchasing

4

materials piecemeal for the purpose of obtaining prices under

5

the base amount of eighteen thousand five hundred dollars

6

($18,500), subject to adjustment under section 120, upon

7

transactions which should, in the exercise of reasonable

8

discretion and prudence, be conducted as one transaction

9

amounting to more than a base amount of eighteen thousand five

10

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

11

120. This provision is intended to make unlawful the practice of

12

evading advertising requirements by making a series of purchases

13

or contracts each for less than the advertising requirement

14

price, or by making several simultaneous purchases or contracts

15

each below said price, when in either case the transaction

16

involved should have been made as one transaction for one price.

17

Section 5.  Section 1913-B.1(c) of the act, amended November

18

3, 2011 (P.L.400, No.97), is amended and the section is amended

19

by adding a subsection to read:

20

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

21

Renovation or Maintenance.--* * *

22

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

23

of architects and engineers, authorized by this section which

24

exceed a base amount of eighteen thousand five hundred dollars

25

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

26

advertised in the manner provided by law and competitively bid

27

and awarded to the lowest responsible bidder. In case of

28

emergencies and notwithstanding any other provision of this

29

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

30

authorize others to make an emergency procurement whenever a

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1

threat exists to public health, welfare or safety or

2

circumstances outside the control of the college and creates an

3

urgency of need which does not permit the delay involved in

4

using more formal competitive methods. Whenever practical, in

5

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

6

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

7

emergency and for the selection of the particular contractor

8

shall be included in the contract file.]

9

(c.1)  All contracts, other than contracts for the retention

10

of architects and engineers, authorized by this section which

11

exceed a base amount of eighteen thousand five hundred dollars

12

($18,500), subject to adjustment under section 120, shall be

13

advertised in the manner provided by law and competitively bid

14

and awarded to the lowest responsible bidder. In case of

15

emergencies and notwithstanding any other provision of this

16

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

17

authorize others to make an emergency procurement whenever a

18

threat exists to public health, welfare or safety or

19

circumstances outside the control of the college and creates an

20

urgency of need which does not permit the delay involved in

21

using more formal competitive methods. Whenever practical, in

22

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

23

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

24

emergency and for the selection of the particular contractor

25

shall be included in the contract file.

26

* * *

27

Section 6.  Section 2003-A.1(c) and (c.1) of the act, amended

28

or added November 3, 2011 (P.L.400, No.97), are amended and the

29

section is amended by adding subsections to read:

30

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

- 15 -

 


1

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

2

of architects and engineers, authorized by this section which

3

exceed a base amount of eighteen thousand five hundred dollars

4

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

5

be advertised in the manner provided by law and competitively

6

bid and awarded to the lowest responsible bidder. In case of

7

emergencies and notwithstanding any other provision of this

8

section to the contrary, the chancellor may make or authorize

9

others to make an emergency procurement whenever a threat exists

10

to public health, welfare or safety or circumstances outside the

11

control of the State system and creates an urgency of need which

12

does not permit the delay involved in using more formal

13

competitive methods. Whenever practical, in the case of a

14

procurement of a supply, at least two (2) bids shall be

15

solicited. A written determination of the basis for the

16

emergency and for the selection of the particular contractor

17

shall be included in the contract file.

18

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

19

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

20

average annual percentage change in the Consumer Price Index for

21

All Urban Consumers: All Items (CPI-U) for the United States

22

City Average as published by the United States Department of

23

Labor, Bureau of Labor Statistics, for the twelve-month period

24

ending September 30, 2012, and for each successive twelve-month

25

period thereafter.

26

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

27

percentage change, then no adjustment to the base amounts shall

28

occur for the relevant time period.

29

(2)  The positive percentage change, as determined in

30

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

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1

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

2

product thereof shall be added to the amount applicable under

3

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

4

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

5

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

6

calculation adjustments required under clause (2) shall be made

7

in the period between October 1 and November 15 of the year

8

following the effective date of this subsection and between

9

October 1 and November 15 of each successive year.

10

(4)  The adjusted amounts obtained in accordance with clause

11

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

12

the year in which the determination required under clause (1) is

13

made.

14

(5)  The Department of Labor and Industry shall give notice

15

in the Pennsylvania Bulletin prior to January 1 of each calendar

16

year in which the percentage change is determined in accordance

17

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

18

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

19

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

20

day of January after publication of the notice.

21

(6)  The annual increase in the preliminary adjusted base

22

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

23

three percent (3%).]

24

(c.2)  All contracts, other than contracts for the retention

25

of architects and engineers, authorized by this section which

26

exceed a base amount of eighteen thousand five hundred dollars

27

($18,500), subject to adjustment under subsection (c.3), shall

28

be advertised in the manner provided by law and competitively

29

bid and awarded to the lowest responsible bidder. In case of

30

emergencies and notwithstanding any other provision of this

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1

section to the contrary, the chancellor may make or authorize

2

others to make an emergency procurement whenever a threat exists

3

to public health, welfare or safety or circumstances outside the

4

control of the State system and creates an urgency of need which

5

does not permit the delay involved in using more formal

6

competitive methods. Whenever practical, in the case of a

7

procurement of a supply, at least two (2) bids shall be

8

solicited. A written determination of the basis for the

9

emergency and for the selection of the particular contractor

10

shall be included in the contract file.

11

(c.3)  Adjustments shall be made as follows:

12

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

13

average annual percentage change in the Consumer Price Index for

14

All Urban Consumers: All Items (CPI-U) for the United States

15

City Average as published by the United States Department of

16

Labor, Bureau of Labor Statistics, for the twelve-month period

17

ending September 30, 2012, and for each successive twelve-month

18

period thereafter.

19

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

20

percentage change, then no adjustment to the base amounts shall

21

occur for the relevant time period.

22

(2)  The positive percentage change, as determined in

23

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

24

applicable under subsection (c.2) for the current period, and

25

the product thereof shall be added to the amount applicable

26

under subsection (c.2) for the current period, with the result

27

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

28

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

29

calculation adjustments required under clause (2) shall be made

30

in the period between October 1 and November 15, 2012, and

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1

between October 1 and November 15 of each successive year.

2

(4)  The adjusted amounts obtained in accordance with clause

3

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

4

the year in which the determination required under clause (1) is

5

made.

6

(5)  The Department of Labor and Industry shall give notice

7

in the Pennsylvania Bulletin prior to January 1 of each calendar

8

year in which the percentage change is determined in accordance

9

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

10

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

11

required under subsection (c.2) for the period beginning the

12

first day of January after publication of the notice.

13

(6)  The annual increase in the preliminary adjusted base

14

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

15

three percent (3%).

16

* * *

17

Section 7.  Section 2010-A(10) of the act, amended November

18

3, 2011 (P.L.400, No.97), is amended and the section is amended

19

by adding a paragraph to read:

20

Section 2010-A.  Power and Duties of Institution

21

Presidents.--The president of each institution shall be

22

appointed by the board. The president shall be the chief

23

executive officer of that institution. He shall have the right

24

to attend all meetings of the council of that institution and

25

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

26

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

27

and the council, each president shall have the following powers

28

and duties: 

29

* * *

30

[(10)  Within the limitations of the operating budget and

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1

other available funds in accordance with the procedures

2

established by the board and with the approval of the local

3

council, to negotiate and award all contracts for equipment,

4

services and supplies in excess of a cost of a base amount of

5

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

6

adjustment under section 119, on a competitive bid basis and to

7

purchase instructional, educational, extracurricular, technical,

8

administrative, custodial and maintenance equipment and supplies

9

not in excess of a cost of a base amount of eighteen thousand

10

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

11

section 119, without competitive bidding, except that such items

12

shall not be bought in series to avoid the dollar ceiling.]

13

(10.1)  Within the limitations of the operating budget and

14

other available funds in accordance with the procedures

15

established by the board and with the approval of the local

16

council, to negotiate and award all contracts for equipment,

17

services and supplies in excess of a cost of a base amount of

18

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

19

adjustment under section 120, on a competitive bid basis and to

20

purchase instructional, educational, extracurricular, technical,

21

administrative, custodial and maintenance equipment and supplies

22

not in excess of a cost of a base amount of eighteen thousand

23

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

24

section 120, without competitive bidding, except that such items

25

shall not be bought in series to avoid the dollar ceiling.

26

* * *

27

Section 8.  This act shall apply to contracts and purchases

28

advertised on or after the effective date of this section.

29

Section 9.  This act shall take effect immediately.

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