Bill Text: PA HB279 | 2011-2012 | Regular Session | Amended

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Bill Title: In contracts, further providing for general regulations concerning contracts, for evasion of advertising requirements and for separate specifications for branches of work.

Spectrum: Partisan Bill (Republican 77-1)

Status: (Passed) 2011-11-03 - Act No. 85 [HB279 Detail]

Download: Pennsylvania-2011-HB279-Amended.html

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SENATE AMENDED
PRIOR PRINTER'S NOS. 232, 1427 PRINTER'S NO. 2420
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 279 Session of2011
INTRODUCED BY M. K. KELLER, AUMENT, BAKER, BEAR, BENNINGHOFF, BLOOM, BOBACK, BOYD, BROOKS, CAUSER, CHRISTIANA, CLYMER, COX, CREIGHTON, CUTLER, DELOZIER, DENLINGER, ELLIS, EVERETT, FARRY, FLECK, GABLER, GEIST, GILLESPIE, GINGRICH, GRELL, GROVE, HALUSKA, HARHART, HARPER, HARRIS, HELM, HENNESSEY, HESS, HICKERNELL, KAUFFMAN, KILLION, KNOWLES, MAJOR, MARSHALL, MARSICO, MASSER, METCALFE, MILLARD, MILLER, MOUL, OBERLANDER, O'NEILL, PAYNE, PEIFER, PERRY, PICKETT, PYLE, QUIGLEY, QUINN, RAPP, REED, REICHLEY, ROAE, ROCK, ROSS, SAYLOR, SCAVELLO, CULVER, SCHRODER, SIMMONS, SONNEY, STERN, STEVENSON, SWANGER, TALLMAN, TOBASH, TRUITT, TURZAI, VEREB, VULAKOVICH, WATSON AND F. KELLER, JANUARY 27, 2011
SENATOR EICHELBERGER, LOCAL GOVERNMENT, IN SENATE, AS AMENDED, SEPTEMBER 27, 2011
AN ACT
Amending the act of June 24, 1931 (P.L.1206, No.331), entitled
"An act concerning townships of the first class; amending,
revising, consolidating, and changing the law relating
thereto," in contracts, further providing for general
regulations concerning contracts, for evasion of advertising
requirements and for separate specifications for branches of
work.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1802(a), (a.1) and (d)(2) of the act of <--
June 24, 1931 (P.L.1206, No.331), known as The First Class
Township Code, reenacted and amended May 27, 1949 (P.L.1955,
No.569) and amended or added July 10, 1990 (P.L.389, No.92),
December 18, 1996 (P.L.1149, No.173) and December 20, 1996
(P.L.1495, No.192), are amended and the section is amended by
adding a subsection to read:
Section 1802. General Regulations Concerning Contracts.--(a)
All contracts or purchases made by any township, involving the
expenditure [of over ten thousand dollars] in excess of the base
amount of twenty-five thousand dollars subject to annual
adjustment under subsection (a.2), except those hereinafter
mentioned, shall not be made except with and from the lowest
responsible bidder, shall be in writing, and shall be made only
after notice by the secretary, published, in one newspaper of
general circulation, published or circulating in the county in
which the township is situated, at least two times at intervals
of not less than three days where daily newspapers of general
circulation are employed for such publication, or in case weekly
newspapers are employed then the notice shall be published once
a week for two successive weeks. The first advertisement shall
be published not more than forty-five days and the second
advertisement not less than ten days prior to the date fixed for
the opening of bids. Advertisements for contracts or purchases
shall also be posted in a conspicuous place within the township.
Advertisements for contracts or purchases shall contain the
date, time and location for opening of bids and shall state the
amount of the performance bond determined under subsection (c).
All plans and specifications shall be on file at least ten days
in advance of opening bids. The amount of the contract shall in
all cases, whether of straight sale price, conditional sale,
bailment lease, or otherwise, be the entire amount which the
township pays to the successful bidder or his assigns in order
to obtain the services or property, or both, and shall not be
construed to mean only the amount which is paid to acquire title
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or to receive any other particular benefit or benefits of the
whole bargain.
(a.1) Written or telephonic price quotations from at least
three qualified and responsible contractors shall be requested
for all contracts that [exceed four thousand dollars] are in
excess of the base amount of ten thousand dollars subject to
annual adjustment under subsection (a.2) 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.
(a.2) Adjustments to the base amounts specified under
subsections (a), (a.1) and (d)(2) and sections 1802.1(a) and
1805 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
of the calendar year in which this subsection becomes effective,
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
20110HB0279PN2420 - 3 -
occur for the relevant time period provided for in this
subsection.
(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 to determine the final adjusted
base amounts for purposes of subsections (a), (a.1) and (d)(2)
and sections 1802.1(a) and 1805.
(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 most recent preliminary adjusted amounts,
respectively. The sums thereof shall be rounded to the nearest
one thousand dollars to determine the new final adjusted base
amounts for purposes of subsections (a), (a.1) and (d)(2) and
sections 1802.1(a) and 1805.
(5) The determinations and adjustments required under this
subsection shall be made in the period between October 1 and
November 15 of the year following the effective date of this
subsection, 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.
20110HB0279PN2420 - 4 -
(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) for purposes of subsections (a), (a.1)
and (d)(2) and sections 1802.1(a) and 1805, 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 subsection for the ensuing calendar
year.
* * *
Section 1. Section 1802(a), (a.1) and (d)(2) of the act of <--
June 24, 1931 (P.L.1206, No.331), known as The First Class
Township Code, reenacted and amended May 27, 1949 (P.L.1955,
No.569) and amended or added July 10, 1990 (P.L.389, No.92),
December 18, 1996 (P.L.1149, No.173) and December 20, 1996
(P.L.1495, No.192), are amended and the section is amended by
adding a subsection to read:
Section 1802. General Regulations Concerning Contracts.--(a)
All contracts or purchases made by any township, involving the
expenditure of over [ten thousand dollars] the base amount of
eighteen thousand five hundred dollars subject to adjustment
under subsection (a.2), except those hereinafter mentioned,
shall not be made except with and from the lowest responsible
bidder, shall be in writing, and shall be made only after notice
by the secretary, published, in one newspaper of general
circulation, published or circulating in the county in which the
township is situated, at least two times at intervals of not
20110HB0279PN2420 - 5 -
less than three days where daily newspapers of general
circulation are employed for such publication, or in case weekly
newspapers are employed then the notice shall be published once
a week for two successive weeks. The first advertisement shall
be published not more than forty-five days and the second
advertisement not less than ten days prior to the date fixed for
the opening of bids. Advertisements for contracts or purchases
shall also be posted in a conspicuous place within the township.
Advertisements for contracts or purchases shall contain the
date, time and location for opening of bids and shall state the
amount of the performance bond determined under subsection (c).
All plans and specifications shall be on file at least ten days
in advance of opening bids. The amount of the contract shall in
all cases, whether of straight sale price, conditional sale,
bailment lease, or otherwise, be the entire amount which the
township pays to the successful bidder or his assigns in order
to obtain the services or property, or both, and shall not be
construed to mean only the amount which is paid to acquire title
or to receive any other particular benefit or benefits of the
whole bargain.
(a.1) Written or telephonic price quotations from at least
three qualified and responsible contractors shall be requested
for all contracts [that exceed four thousand dollars] in excess
of the base amount of ten thousand dollars subject to adjustment
under subsection (a.2) 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
20110HB0279PN2420 - 6 -
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.
(a.2) Adjustments to the base amounts specified under
subsection (a) 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 provided for in this
subsection.
(3) (i) If the department determines that there is a
positive percentage change in the first year that the
determination is made under clause (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 hundred dollars, to determine the final adjusted
base amounts for purposes of subsection (a).
(4) In each successive year in which there is a positive
percentage change in the CPI-U for the United States City
20110HB0279PN2420 - 7 -
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 hundred dollars to determine the new final adjusted base
amounts for purposes of subsection (a).
(5) The determinations and adjustments required under this
subsection shall be made in the period between October 1 and
November 15 of the year following the effective date of this
subsection, 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 clauses (3) and (4) shall become
effective January 1 for the calendar year following the year in
which the determination required under clause (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 clause (1) and the unadjusted
or final adjusted base amounts determined under clauses (3) and
(4) at which competitive bidding is required under subsection
(a) 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 subsection for the
ensuing calendar year.
(8) The annual increase in the preliminary adjusted base
amounts obtained under clauses (3) and (4) shall not exceed
three per centum.
20110HB0279PN2420 - 8 -
* * *
(d) The contracts or purchases made by the commissioners
which shall not require advertising, bidding or price
quotations, as hereinbefore provided, are as follows:
* * *
(2) Those made for improvements, repairs and maintenance of
any kind made or provided by any township through its own
employes: Provided, however, That all materials used for street
improvement, maintenance, and/or construction in excess of
[four] the base amount of ten thousand dollars be subject to the
relevant price quotation or advertising requirements as
contained herein and to annual adjustment under subsection <--
(a.2).
* * *
Section 2. Sections 1802.1 and 1805 of the act, amended <--
July 10, 1990 (P.L.389, No.92), are amended to read:
Section 1802.1. Evasion of Advertising Requirements.--(a)
No commissioner or commissioners shall evade the provisions of
section one thousand eight hundred two as to advertising for
bids, by purchasing or contracting for services and personal
properties piecemeal for the purpose of obtaining prices under
[ten thousand dollars] the base amount of twenty-five thousand
dollars subject to annual adjustment under section 1802(a.2)
upon transactions, which transactions should, in the exercise of
reasonable discretion and prudence, be conducted as one
transaction amounting to more than [ten thousand dollars] the
base amount of twenty-five thousand dollars subject to annual
adjustment under section 1802(a.2). This provision is intended
to make unlawful the evading of advertising requirements by
making a series of purchases or contracts each for less than the
20110HB0279PN2420 - 9 -
advertising requirement price, or by making several simultaneous
purchases or contracts, each below said price, when in either
case, the transactions involved should have been made as one
transaction for one price. Any commissioners who so vote in
violation of this provision, and who know that the transaction
upon which they so vote is or ought to be a part of a larger
transaction, and that it is being divided in order to evade the
requirements as to advertising for bids, shall be jointly and
severally subject to surcharge for ten per centum of the full
amount of the contract or purchase. Whenever it shall appear
that a commissioner may have voted in violation of this section,
but the purchase or contract on which he so voted was not
approved by the board of commissioners, this section shall be
inapplicable.
(b) Any commissioner who votes to unlawfully evade the
provisions of section one thousand eight hundred two and who
knows that the transaction upon which he so votes is or ought to
be a part of a larger transaction and that it is being divided
in order to evade the requirements as to advertising for bids
commits a misdemeanor of the third degree for each contract
entered into as a direct result of that vote. This penalty shall
be in addition to any surcharge which may be assessed pursuant
to subsection (a).
Section 2. Sections 1802.1 and 1805 of the act, amended July <--
10, 1990 (P.L.389, No.92), are amended to read:
Section 1802.1. Evasion of Advertising Requirements.--(a) No
commissioner or commissioners shall evade the provisions of
section one thousand eight hundred two as to advertising for
bids, by purchasing or contracting for services and personal
properties piecemeal for the purpose of obtaining prices under
20110HB0279PN2420 - 10 -
[ten thousand dollars] eighteen thousand five hundred dollars
subject to adjustment under section 1802(a.2) upon transactions,
which transactions should, in the exercise of reasonable
discretion and prudence, be conducted as one transaction
amounting to more than [ten thousand dollars] eighteen thousand
five hundred dollars subject to adjustment under section
1802(a.2). This provision is intended to make unlawful the
evading of 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
transactions involved should have been made as one transaction
for one price. Any commissioners who so vote in violation of
this provision, and who know that the transaction upon which
they so vote is or ought to be a part of a larger transaction,
and that it is being divided in order to evade the requirements
as to advertising for bids, shall be jointly and severally
subject to surcharge for ten per centum of the full amount of
the contract or purchase. Whenever it shall appear that a
commissioner may have voted in violation of this section, but
the purchase or contract on which he so voted was not approved
by the board of commissioners, this section shall be
inapplicable.
(b) Any commissioner who votes to unlawfully evade the
provisions of section one thousand eight hundred two and who
knows that the transaction upon which he so votes is or ought to
be a part of a larger transaction and that it is being divided
in order to evade the requirements as to advertising for bids
commits a misdemeanor of the third degree for each contract
entered into as a direct result of that vote. This penalty shall
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be in addition to any surcharge which may be assessed pursuant
to subsection (a).
Section 1805. Separate Specifications for Branches of
Work.--In the preparation of specifications for the erection or
alteration of any public building, when the entire cost of such
work exceeds [ten] twenty-five thousand] the base amount of <--
eighteen thousand five hundred dollars, subject to annual
adjustment under section 1802(a.2), the architect, engineer, or
person preparing such specifications shall prepare separate
specifications for the plumbing, heating, ventilating, and
electrical work, and the township shall receive separate bids
upon each of such branches of work, and award the contract for
the same to the lowest responsible bidder.
Section 3. 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 4. This act shall take effect immediately.
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