SENATE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

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 August 6, 1936 (Sp.Sess., P.L.95, No.38

1/2), entitled "An act to authorize and empower cities,

boroughs, towns, and townships, separately or jointly, to

provide for protection against floods by erecting and

constructing certain works and improvements, located within

or without their territorial limits, and within or without

the county in which situate; and to expend moneys and incur

indebtedness; to assess benefits against property benefited;

to issue improvement bonds imposing no municipal liability;

and to acquire, take, injure or destroy property for such

purposes," further providing for competitive bidding of

contracts.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 3 of the act of August 6, 1936 (Sp.Sess.,

<--

P.L.95, No.38 1/2), entitled "An act to authorize and empower

cities, boroughs, towns, and townships, separately or jointly,

to provide for protection against floods by erecting and

constructing certain works and improvements, located within or

without their territorial limits, and within or without the

county in which situate; and to expend moneys and incur

indebtedness; to assess benefits against property benefited; to

issue improvement bonds imposing no municipal liability; and to

acquire, take, injure or destroy property for such purposes,"

amended July 10, 1990 (P.L.402, No.97), is amended to read:

Section 3.  (a)  No such works or improvements, involving an

expenditure by any municipality or municipalities of more than

[ten thousand dollars ($10,000)] the base amount of twenty-five

thousand dollars ($25,000), subject to adjustment under

subsection (b.1), shall be erected, constructed or provided,

except by contract let to the lowest responsible bidder after

due advertisement, once a week for two successive weeks in at

least one newspaper of general circulation: Provided, however,

That no contract shall be required to be let for the performance

of the work on any such work or improvement where the cost of

the labor shall be paid by the Federal Government, or any agency

thereof, without cost to the municipality or municipalities.

(b)  Written or telephonic price quotations from at least

three qualified and responsible contractors shall be requested

for all contracts that exceed [four thousand dollars ($4,000)] 

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

adjustment under subsection (b.1), 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.1)  Adjustments to the base amounts specified under

subsections (a) and (b) 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

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 ($1,000), to determine the

final adjusted base amounts for purposes of subsections (a) and

(b).

(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 ($1,000) to determine the new final

adjusted base amounts for purposes of subsections (a) and (b).

(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.

(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) at which competitive bidding is required

under subsection (a) and written or telephonic price quotations

are required under subsection (b), 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)  No municipality shall evade the provisions of this

section as to advertising for bids or purchasing materials or

contracting for services piecemeal for the purpose of obtaining

prices under [ten thousand dollars ($10,000)] the amount

required by this section upon transactions which should, in the

exercise of reasonable discretion and prudence, be conducted as

one transaction amounting to more than [ten thousand dollars

($10,000)] the amount required by this section. 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 advertising requirement price or by making

several simultaneous purchases or contracts each below said

price, when in either case the transaction involved should have

been made as one transaction for one price.

(d)  Any member of a governing body of a municipality 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.

(e)  Every contract for the construction, reconstruction,

alteration, repair, improvement or maintenance of public works

shall comply with the provisions of the act of March 3, 1978

(P.L.6, No.3), known as the "Steel Products Procurement Act."

Section 2.  The amendment of section 3 of the act shall apply

to contracts and purchases advertised after December 31 of the

year in which this section takes effect.

Section 3.  This act shall take effect immediately.

Section 1.  Section 3 of the act of August 6, 1936 (Sp.Sess.,

<--

P.L.95, No.38 1/2), entitled "An act to authorize and empower

cities, boroughs, towns, and townships, separately or jointly,

to provide for protection against floods by erecting and

constructing certain works and improvements, located within or

without their territorial limits, and within or without the

county in which situate; and to expend moneys and incur

indebtedness; to assess benefits against property benefited; to

issue improvement bonds imposing no municipal liability; and to

acquire, take, injure or destroy property for such purposes,"

amended July 10, 1990 (P.L.402, No.97), is amended to read:

Section 3.  (a)  No such works or improvements, involving

[an] expenditure by any municipality or municipalities of more

than [ten thousand dollars ($10,000)] the base amount of

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

adjustment under subsection (b.1), shall be erected, constructed

or provided, except by contract let to the lowest responsible

bidder after due advertisement, once a week for two successive

weeks in at least one newspaper of general circulation:

Provided, however, That no contract shall be required to be let

for the performance of the work on any such work or improvement

where the cost of the labor shall be paid by the Federal

Government, or any agency thereof, without cost to the

municipality or municipalities.

(b)  Written or telephonic price quotations from at least

three qualified and responsible contractors shall be requested

for all contracts [that exceed four thousand dollars ($4,000)]

in excess of the base amount of ten thousand dollars ($10,000),

subject to adjustment under subsection (b.1), 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.1)  Adjustments to the base amounts specified under

subsections (a) and (b) 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 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 hundred dollars ($100), to determine the final

adjusted base amounts for purposes of subsections (a) and (b).

(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 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 ($100) to determine the new final adjusted

base amounts for purposes of subsections (a) and (b).

(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.

(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) at which competitive bidding is required

under subsection (a) and written or telephonic price quotations

are required under subsection (b), 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.

(8)  The annual increase in the preliminary adjusted base

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

three per centum.

(c)  No municipality shall evade the provisions of this

section as to advertising for bids or purchasing materials or

contracting for services piecemeal for the purpose of obtaining

prices under [ten thousand dollars ($10,000)] the amount

required by this section upon transactions which should, in the

exercise of reasonable discretion and prudence, be conducted as

one transaction amounting to more than [ten thousand dollars

($10,000)] the amount required by this section. 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 advertising requirement price or by making

several simultaneous purchases or contracts each below said

price, when in either case the transaction involved should have

been made as one transaction for one price.

(d)  Any member of a governing body of a municipality 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.

(e)  Every contract for the construction, reconstruction,

alteration, repair, improvement or maintenance of public works

shall comply with the provisions of the act of March 3, 1978

(P.L.6, No.3), known as the "Steel Products Procurement Act."

Section 2.  The amendment of section 3 of the act shall apply

to contracts and purchases advertised after December 31 of the

year in which this section takes effect.

Section 3.  This act shall take effect immediately.