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                                 HOUSE AMENDED
        PRIOR PRINTER'S NO. 766                       PRINTER'S NO. 1449

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 706 Session of 1999


        INTRODUCED BY CONTI, THOMPSON, WOZNIAK, STOUT AND ROBBINS,
           APRIL 7, 1999

        AS REPORTED FROM COMMITTEE ON URBAN AFFAIRS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, OCTOBER 26, 1999

                                     AN ACT

     1  Amending the act of July 28, 1953 (P.L.723, No.230), entitled,
     2     as amended, "An act relating to counties of the second class
     3     and second class A; amending, revising, consolidating and
     4     changing the laws relating thereto," providing for an
     5     operating reserve fund; AND FURTHER PROVIDING FOR THE MAKING   <--
     6     OF CONTRACTS.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  The act of July 28, 1953 (P.L.723, No.230), known
    10  as the Second Class County Code, is amended by adding a section
    11  to read:
    12     Section 511.  Operating Reserve Fund.--(a)  The county
    13  commissioners shall have the power to create and maintain a
    14  separate operating reserve fund in order to minimize future
    15  revenue shortfalls and deficits, provide greater continuity and
    16  predictability in the funding of vital government services,
    17  minimize the need to increase taxes to balance the budget in
    18  times of fiscal distress, provide the capacity to undertake


     1  long-range financial planning and develop fiscal resources to
     2  meet long-term needs.
     3     (b)  The county commissioners may annually make
     4  appropriations from the general county fund to the operating
     5  reserve fund, but no appropriation shall be made to the
     6  operating reserve fund if the effect of the appropriation would
     7  cause the fund to exceed five per cent of the estimated revenues
     8  of the county's general fund in the current fiscal year.
     9     (c)  The commissioners may at any time, by resolution, make
    10  appropriations from the operating reserve fund for the following
    11  purposes only:
    12     (1)  to meet emergencies involving the health, safety or
    13  welfare of the residents of the county;
    14     (2)  to counterbalance potential budget deficits resulting
    15  from shortfalls in anticipated revenues or program receipts from
    16  whatever source; or
    17     (3)  to provide for anticipated operating expenditures
    18  related either to the planned growth of existing projects or
    19  programs or to the establishment of new projects or programs if
    20  for each such project or program appropriations have been made
    21  and allocated to a separate restricted account established
    22  within the operating reserve fund.
    23     (d)  The operating reserve fund shall be invested, reinvested
    24  and administered in a manner consistent with the provisions of
    25  section 1964 of this act relating to the investment of county
    26  funds generally.
    27     SECTION 2.  SECTION 2001(D) OF THE ACT, AMENDED OCTOBER 5,     <--
    28  1990 (P.L.519, NO.125), IS AMENDED TO READ:
    29     SECTION 2001.  COUNTY COMMISSIONERS TO MAKE CONTRACTS.--THE
    30  COUNTY COMMISSIONERS MAY MAKE CONTRACTS FOR LAWFUL PURPOSES AND
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     1  FOR THE PURPOSES OF CARRYING INTO EXECUTION THE PROVISIONS OF
     2  THIS SECTION AND THE LAWS OF THE COMMONWEALTH.
     3     * * *
     4     (D)  THE CONTRACTS OR PURCHASES MADE BY THE COMMISSIONERS
     5  INVOLVING AN EXPENDITURE OF OVER TEN THOUSAND DOLLARS ($10,000)
     6  WHICH SHALL NOT REQUIRE ADVERTISING OR BIDDING AS HEREINBEFORE
     7  PROVIDED ARE AS FOLLOWS:
     8     (1)  THOSE FOR MAINTENANCE, REPAIRS OR REPLACEMENTS FOR
     9  WATER, ELECTRIC LIGHT, OR OTHER PUBLIC WORKS: PROVIDED, THAT
    10  THEY DO NOT CONSTITUTE NEW ADDITIONS, EXTENSIONS OR ENLARGEMENTS
    11  OF EXISTING FACILITIES AND EQUIPMENT, BUT A BOND MAY BE REQUIRED
    12  BY THE COUNTY COMMISSIONERS AS IN OTHER CASES OF WORK DONE.
    13     (2)  THOSE MADE FOR IMPROVEMENTS, REPAIRS AND MAINTENANCE OF
    14  ANY KIND MADE OR PROVIDED BY THE COUNTY THROUGH ITS OWN
    15  EMPLOYES: PROVIDED, THAT THIS SHALL NOT APPLY TO CONSTRUCTION
    16  MATERIALS USED IN A STREET IMPROVEMENT.
    17     (3)  THOSE WHERE PARTICULAR TYPES, MODELS OR PIECES OF NEW
    18  EQUIPMENT, ARTICLES, APPARATUS, APPLIANCES, VEHICLES OR PARTS
    19  THEREOF ARE DESIRED BY THE COUNTY COMMISSIONERS, WHICH ARE
    20  PATENTED AND MANUFACTURED PRODUCTS OR COPYRIGHTED PRODUCTS.
    21     (4)  THOSE INVOLVING ANY POLICIES OF INSURANCE OR SURETY
    22  COMPANY BONDS, THOSE MADE FOR PUBLIC UTILITY SERVICE UNDER
    23  TARIFFS ON FILE WITH THE PENNSYLVANIA PUBLIC UTILITY COMMISSION,
    24  THOSE MADE WITH ANOTHER POLITICAL SUBDIVISION OR A COUNTY, THE
    25  COMMONWEALTH OF PENNSYLVANIA, THE FEDERAL GOVERNMENT, ANY AGENCY
    26  OF THE COMMONWEALTH OR THE FEDERAL GOVERNMENT, OR ANY MUNICIPAL
    27  AUTHORITY, INCLUDING THE SALE, LEASING OR LOAN OF ANY SUPPLIES
    28  OR MATERIALS BY THE COMMONWEALTH OR THE FEDERAL GOVERNMENT, OR
    29  THEIR AGENCIES, BUT THE PRICE THEREOF SHALL NOT BE IN EXCESS OF
    30  THAT FIXED BY THE COMMONWEALTH, THE FEDERAL GOVERNMENT, OR THEIR
    19990S0706B1449                  - 3 -

     1  AGENCIES.
     2     (5)  THOSE INVOLVING PERSONAL OR PROFESSIONAL SERVICES.
     3     (6)  THOSE INVOLVING TANGIBLE CLIENT SERVICES PROVIDED BY
     4  NONPROFIT AGENCIES. FOR THE PURPOSES OF THIS CLAUSE, THE TERM
     5  "TANGIBLE CLIENT SERVICES" SHALL MEAN CONGREGATE MEALS, HOME-
     6  DELIVERED MEALS, TRANSPORTATION AND CHORE SERVICES PROVIDED
     7  THROUGH AREA AGENCIES ON AGING.
     8     (7)  THOSE INVOLVING THE PURCHASE OF MILK.
     9     (8)  THOSE MADE WITH ANY PUBLIC BODY, INCLUDING, BUT NOT
    10  LIMITED TO, THE SALE, LEASE OR LOAN OF ANY SUPPLIES OR MATERIALS
    11  TO THE COUNTY BY A PUBLIC BODY, PROVIDED THAT THE PRICE THEREOF
    12  SHALL NOT BE IN EXCESS OF THAT FIXED BY THE PUBLIC BODY. THE
    13  REQUIREMENTS OF 53 PA.C.S. CH. 23 SUBCH. A (RELATING TO
    14  INTERGOVERNMENTAL COOPERATION) SHALL NOT APPLY WHEN A COUNTY
    15  PURCHASES COOPERATIVELY WITH ANOTHER PUBLIC BODY WHICH HAS
    16  ENTERED INTO A CONTRACT FOR SUPPLIES OR MATERIALS. AS USED IN
    17  THIS PARAGRAPH, "PUBLIC BODY" SHALL MEAN ANY OF THE FOLLOWING:
    18     (I)  ANY OTHER STATE;
    19     (II)  A POLITICAL SUBDIVISION, LOCAL OR MUNICIPAL AUTHORITY
    20  OR OTHER SIMILAR LOCAL ENTITY OF THE COMMONWEALTH OR ANY OTHER
    21  STATE; OR
    22     (III)  AN AGENCY OF THE FEDERAL GOVERNMENT, THE COMMONWEALTH
    23  OR ANY OTHER STATE.
    24     * * *
    25     Section 2 3.  This act shall take effect in 60 days.           <--




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