Bill Text: PA HB287 | 2011-2012 | Regular Session | Amended

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Bill Title: Further providing for awards of contracts, completion bond, additional bond for protection of materialmen and others.

Spectrum: Partisan Bill (Republican 77-1)

Status: (Engrossed - Dead) 2011-04-25 - Referred to URBAN AFFAIRS AND HOUSING [HB287 Detail]

Download: Pennsylvania-2011-HB287-Amended.html

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PRIOR PRINTER'S NO. 240 PRINTER'S NO. 1433
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 287 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
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF REPRESENTATIVES, AS AMENDED, APRIL 5, 2011
AN ACT
Amending the act of May 28, 1937 (P.L.955, No.265), entitled, as
amended, "An act to promote public health, safety, morals,
and welfare by declaring the necessity of creating public
bodies, corporate and politic, to be known as housing
authorities to engage in slum clearance, and to undertake
projects, to provide dwelling accommodations for persons of
low income; providing for the organization of such housing
authorities; defining their powers and duties; providing for
the exercise of such powers, including the acquisition of
property by purchase, gift or eminent domain, the renting and
selling of property, and including borrowing money, issuing
bonds, and other obligations, and giving security therefor;
prescribing the remedies of obligees of housing authorities;
authorizing housing authorities to enter into agreements,
including agreements with the United States, the
Commonwealth, and political subdivisions and municipalities
thereof; defining the application of zoning, sanitary, and
building laws and regulations to projects built or maintained
by such housing authorities; exempting the property and
securities of such housing authorities from taxation; and
imposing duties and conferring powers upon the State Planning
Board, and certain other State officers and departments,"
further providing for awards of contracts, completion bond,
additional bond for protection of materialmen and others.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 11 of the act of May 28, 1937 (P.L.955,
No.265), known as the Housing Authorities Law, amended or added
May 20, 1949 (P.L.1614, No.486), February 16, 1990 (P.L.67,
No.13) and November 21, 1990 (P.L.569, No.143), is amended to
read:
Section 11. Awards of Contracts; Completion Bond; Additional
Bond for Protection of Materialmen and Others.--
(a) Whenever the estimated cost of any construction,
erection, installation, completion, alteration, repair of, or
addition to, any project subject to the control of any Authority
shall exceed [ten thousand ($10,000) dollars] the base amount of <--
twenty-five thousand ($25,000) dollars subject to annual
adjustment under subsection (b.3), it shall be the duty of said
Authority to have such work performed pursuant to a contract
awarded to the lowest responsible bidder, after advertisement
for bids. Every such contract shall contain a provision
obligating the contractor to the prompt payment of all material
furnished, labor supplied or performed, rental for equipment
employed, and services rendered by public utilities in or in
connection with the prosecution of the work, whether or not the
said material, labor, equipment or service enter into and become
component parts of the work or improvement contemplated. Such
provision shall be deemed to be included for the benefit of
every person, copartnership, association or corporation who, as
subcontractor or otherwise, has furnished material, supplied or
performed labor, rented equipment or services in or in
connection with the prosecution of the work as aforesaid, and
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the inclusion thereof in any contract shall preclude the filing
by any such person, copartnership, association or corporation of
any mechanics' lien claim for such material, labor or rental of
equipment.
(b) Whenever the estimated cost of any purchase of supplies,
materials or equipment or the rental of any equipment, whether
or not the same is to be used in connection with the
construction, erection, installation, completion, alteration,
repair of, or addition to, any project subject to the control of
any Authority, shall exceed [ten thousand ($10,000) dollars] the <--
base amount of twenty-five thousand ($25,000) dollars subject to
annual adjustment under subsection (b.3), it shall be the duty
of such Authority to have such purchase or rental made pursuant
to a contract awarded to the lowest responsible bidder, after
advertisement for bids, such advertisement to be inserted in a
newspaper of general circulation within the county in which the
Authority operates.
(b.1) An authority shall not evade the provisions of
subsection (a) or (b) as to advertising for bids by purchasing
materials or contracting for services piecemeal for the purpose
of obtaining prices under [ten thousand ($10,000) dollars] the <--
base amount of twenty-five thousand ($25,000) dollars subject to
annual adjustment under subsection (b.3) upon transactions which
should, in the exercise of reasonable discretion and prudence,
be conducted as one transaction amounting to more than [ten
thousand ($10,000) dollars] the base amount of twenty-five <--
thousand ($25,000) dollars subject to annual adjustment under
subsection (b.3). 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
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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.
(b.2) Written or telephonic price quotations from at least
three qualified and responsible contractors shall be requested
for all contracts that exceed [four thousand ($4,000) dollars]
the base amount of ten thousand ($10,000) dollars subject to <--
annual adjustment under subsection (b.3) 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.3) (1) The Department of Labor and Industry shall <--
determine the percentage change in the Consumer Price Index for
All Urban Consumers 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) The amount at which competitive bidding is required
under subsection (a) and the amount at which written or
telephonic price quotations are required under subsection (b.2)
shall be adjusted annually as follows:
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(i) In the case of competitive bidding, the positive
percentage change, as determined in accordance with clause (1),
shall be multiplied by the amount applicable under subsection
(a) for the current year and the product thereof shall be added
to the amount applicable under subsection (a) for the current
year, with the result rounded to the nearest multiple of ten
($10) dollars.
(ii) In the case of written or telephonic price quotations,
the positive percentage change, as determined in accordance with
clause (1), shall be multiplied by the amount applicable under
subsection (b.2) for the current year and the product thereof
shall be added to the amount applicable under subsection (b.2)
for the current year, with the result rounded to the nearest
multiple of ten ($10) dollars.
(3) The annual determination required under clause (1) and
the calculation of the 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
annually 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 calendar year
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 of the annual percentage change determined in accordance
with clause (1) and the amounts, whether adjusted or unadjusted
in accordance with clause (2), at which competitive bidding is
required under subsection (a) and written or telephonic price
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quotations are required under subsection (b.2) for the calendar
year beginning the first day of January after publication of the
notice.
(b.3) Adjustments to the base amounts specified under <--
clauses (a), (b), (b.1) and (b.2) 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 clause 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
occur for the relevant time period provided for in this clause.
(3) (i) If the department determines that there is a
positive percentage change in the first year that the
determination is made under subclause (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), to determine the
final adjusted base amounts for purposes of clauses (a), (b),
(b.1) and (b.2).
(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,
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respectively. The sums thereof shall be rounded to the nearest
one thousand dollars ($1,000) to determine the new final
adjusted base amounts for purposes of clauses (a), (b), (b.1)
and (b.2).
(5) The determinations and adjustments required under this
clause 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 subclauses (3) and (4) shall become
effective January 1 for the calendar year following the year in
which the determination required under subclause (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 subclause (1) and the
unadjusted or final adjusted base amounts determined under
subclauses (3) and (4) for purposes of clauses (a), (b), (b.1)
and (b.2), 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.
(c) A housing authority shall require as a condition of the
award of any contract, pursuant to subsection (a) or (b) of this
section, that the contractor give to the Authority any bond
(including bonds for the performance of the contract, and for
the prompt payment by the contractor for material, supplies,
labor, services and equipment) which are prescribed by law for
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contracts awarded by cities or counties, as the case may be, of
the same class as the city or county for which such Authority
has been created.
(d) Notwithstanding anything to the contrary contained in
this act or in any other provision of law, a housing authority
may include, in any contract let in connection with a project,
stipulations requiring that the contractor and any
subcontractors comply with requirements as to minimum wages and
maximum hours of labor, and comply with any conditions which the
Federal or State Government may have attached to its financial
aid of the project.
(e) Every Authority awarding contracts or requiring the
delivery of bonds pursuant to this section shall keep an exact
copy of every contract awarded or bond delivered upon file at
its principal office. Subject to regulations to be prescribed by
the State Planning Board for their safe keeping such copies
shall be opened to public inspection.
(f) Any authority member who votes to unlawfully evade the
provisions of this section 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.
Section 2. 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 3. This act shall take effect immediately.
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