HOUSE AMENDED
PRIOR PRINTER'S NOS. 814, 1659, 2225 PRINTER'S NO. 2376
No. 750 Session of 1989
INTRODUCED BY STOUT, CORMAN, STEWART, BRIGHTBILL, PUNT, LEMMOND,
PORTERFIELD, MADIGAN, AFFLERBACH, REIBMAN AND PETERSON,
MARCH 23, 1989
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 26, 1990
AN ACT
1 Amending the act of May 2, 1945 (P.L.382, No.164), entitled "An
2 act providing for the incorporation as bodies corporate and
3 politic of 'Authorities' for municipalities, counties and
4 townships; prescribing the rights, powers and duties of such
5 Authorities heretofore or hereafter incorporated; authorizing
6 such Authorities to acquire, construct, improve, maintain and
7 operate projects, and to borrow money and issue bonds
8 therefor; providing for the payment of such bonds, and
9 prescribing the rights of the holders thereof; conferring the
10 right of eminent domain on such Authorities; authorizing such
11 Authorities to enter into contracts with and to accept grants
12 from the Federal Government or any agency thereof; and
13 conferring exclusive jurisdiction on certain courts over
14 rates," FURTHER DEFINING "PROJECT" AND "LOCAL GOVERNMENT <--
15 UNIT"; ADDING A DEFINITION FOR "WORKING CAPITAL"; FURTHER
16 PROVIDING FOR THE GENERAL POWERS AND DUTIES OF AN AUTHORITY;
17 AND FURTHER PROVIDING FOR REMOVAL OF MEMBERS; further <--
18 providing for contract procedures, purchases and advertising
19 for bids; AND PROVIDING A PENALTY. <--
20 The General Assembly of the Commonwealth of Pennsylvania
21 hereby enacts as follows:
22 SECTION 1. SECTION 2(J) AND (P) OF THE ACT OF MAY 2, 1945 <--
23 (P.L.382, NO.164), KNOWN AS THE MUNICIPALITY AUTHORITIES ACT OF
24 1945, AMENDED OCTOBER 21, 1988 (P.L.1041, NO.117), IS OR ADDED <--
25 JUNE 22, 1990 (P.L.236, NO.54), ARE AMENDED AND THE SECTION IS
1 AMENDED BY ADDING A CLAUSE TO READ:
2 SECTION 2. DEFINITIONS.--THE FOLLOWING TERMS WHENEVER USED <--
3 OR REFERRED TO IN THIS ACT SHALL HAVE THE FOLLOWING MEANINGS,
4 EXCEPT IN THOSE INSTANCES WHERE THE CONTEXT CLEARLY INDICATES
5 OTHERWISE:
6 * * *
7 (J) THE TERM "PROJECT" SHALL MEAN EQUIPMENT TO BE LEASED BY
8 AN AUTHORITY TO THE MUNICIPALITY OR MUNICIPALITIES THAT
9 ORGANIZED IT OR TO ANY MUNICIPALITY OR SCHOOL DISTRICT LOCATED
10 WHOLLY OR PARTIALLY WITHIN THE BOUNDARIES OF THE MUNICIPALITY OR
11 MUNICIPALITIES THAT ORGANIZED IT, OR ANY STRUCTURE, FACILITY OR
12 UNDERTAKING WHICH AN AUTHORITY IS AUTHORIZED TO ACQUIRE,
13 CONSTRUCT, FINANCE, IMPROVE, MAINTAIN OR OPERATE UNDER THE
14 PROVISIONS OF THIS ACT, OR ANY WORKING CAPITAL WHICH AN
15 AUTHORITY IS AUTHORIZED TO FINANCE UNDER THE PROVISIONS OF THIS
16 ACT.
17 * * *
18 (P) THE TERM "WORKING CAPITAL" SHALL MEAN AND INCLUDE, BUT
19 SHALL NOT BE LIMITED TO, FUNDS FOR SUPPLIES, MATERIALS,
20 SERVICES, SALARIES, PENSIONS AND ANY OTHER PROPER OPERATING
21 EXPENSES; PROVIDED THAT "WORKING CAPITAL" SHALL BE LIMITED
22 SOLELY TO HOSPITALS AND HEALTH CENTERS, AND PRIVATE, NONPROFIT,
23 NONSECTARIAN COLLEGES AND UNIVERSITIES, STATE-RELATED
24 UNIVERSITIES AND COMMUNITY COLLEGES, WHICH ARE DETERMINED BY THE
25 AUTHORITY TO BE ELIGIBLE EDUCATIONAL INSTITUTIONS. NOTHING
26 HEREIN SHALL PROHIBIT THE BORROWING OF WORKING CAPITAL AS MAY BE
27 NECESSARY OR INCIDENTAL TO THE UNDERTAKING OR PLACING IN
28 OPERATION OF ANY PROJECT UNDERTAKEN IN WHOLE OR IN PART PURSUANT
29 TO THIS ACT.
30 SECTION 2. DEFINITIONS.--THE FOLLOWING TERMS WHENEVER USED <--
19890S0750B2376 - 2 -
1 OR REFERRED TO IN THIS ACT SHALL HAVE THE FOLLOWING MEANINGS,
2 EXCEPT IN THOSE INSTANCES WHERE THE CONTEXT CLEARLY INDICATES
3 OTHERWISE:
4 * * *
5 (J) THE TERM "PROJECT" SHALL MEAN EQUIPMENT TO BE LEASED BY
6 AN AUTHORITY TO THE MUNICIPALITY OR MUNICIPALITIES THAT
7 ORGANIZED IT OR TO ANY MUNICIPALITY OR SCHOOL DISTRICT LOCATED
8 WHOLLY OR PARTIALLY WITHIN THE BOUNDARIES OF THE MUNICIPALITY OR
9 MUNICIPALITIES THAT ORGANIZED IT, OR ANY STRUCTURE, FACILITY OR
10 UNDERTAKING WHICH AN AUTHORITY IS AUTHORIZED TO ACQUIRE,
11 CONSTRUCT, FINANCE, IMPROVE, MAINTAIN OR OPERATE, OR PROVIDE
12 FINANCING FOR INSURANCE RESERVES UNDER THE PROVISIONS OF THIS
13 ACT, OR ANY WORKING CAPITAL WHICH AN AUTHORITY IS AUTHORIZED TO
14 FINANCE UNDER THE PROVISIONS OF THIS ACT.
15 * * *
16 (P) THE TERM "LOCAL GOVERNMENT UNIT" SHALL HAVE THE SAME
17 MEANING AS THAT PROVIDED IN SECTION 102(C)(10) OF THE ACT OF
18 JULY 12, 1972 (P.L.781, NO.185), KNOWN AS THE "LOCAL GOVERNMENT
19 UNIT DEBT ACT[."]," EXCEPT THAT THE TERM SHALL ALSO INCLUDE A
20 CITY OR COUNTY OF THE FIRST CLASS.
21 * * *
22 (R) THE TERM "WORKING CAPITAL" SHALL MEAN AND INCLUDE, BUT
23 SHALL NOT BE LIMITED TO, FUNDS FOR SUPPLIES, MATERIALS,
24 SERVICES, SALARIES, PENSIONS AND ANY OTHER PROPER OPERATING
25 EXPENSES; PROVIDED THAT "WORKING CAPITAL" SHALL BE LIMITED
26 SOLELY TO HOSPITALS AND HEALTH CENTERS, AND PRIVATE, NONPROFIT,
27 NONSECTARIAN COLLEGES AND UNIVERSITIES, STATE-RELATED
28 UNIVERSITIES AND COMMUNITY COLLEGES, WHICH ARE DETERMINED BY THE
29 AUTHORITY TO BE ELIGIBLE EDUCATIONAL INSTITUTIONS. NOTHING
30 HEREIN SHALL PROHIBIT THE BORROWING OF WORKING CAPITAL AS MAY BE
19890S0750B2376 - 3 -
1 NECESSARY OR INCIDENTAL TO THE UNDERTAKING OR PLACING IN
2 OPERATION OF ANY PROJECT UNDERTAKEN IN WHOLE OR IN PART PURSUANT
3 TO THIS ACT.
4 SECTION 2. THE INTRODUCTORY PARAGRAPH OF CLAUSE (A) AND
5 CLAUSE (B)(2)(IV) (B)(2)(V) OF SUBSECTION A OF SECTION 4 OF THE <--
6 ACT, AMENDED OCTOBER 21, 1988 (P.L.1041, NO.117) JUNE 22, 1990 <--
7 (P.L.236, NO.54), ARE AMENDED AND CLAUSE (B)(2) IS AMENDED BY <--
8 ADDING A SUBCLAUSE TO READ:
9 SECTION 4. PURPOSES AND POWERS; GENERAL.--A. EVERY <--
10 AUTHORITY INCORPORATED UNDER THIS ACT SHALL BE A BODY CORPORATE
11 AND POLITIC.
12 (A) THE AUTHORITY SHALL BE FOR THE PURPOSE OF FINANCING
13 WORKING CAPITAL AND OF ACQUIRING, HOLDING, CONSTRUCTING,
14 FINANCING, IMPROVING, MAINTAINING AND OPERATING, OWNING,
15 LEASING, EITHER IN THE CAPACITY OF LESSOR OR LESSEE, PROJECTS OF
16 THE FOLLOWING KIND AND CHARACTER:
17 * * *
18 (B) THIS SECTION IS SUBJECT TO THE FOLLOWING LIMITATIONS:
19 * * *
20 (2) THE PURPOSE AND INTENT OF THIS ACT BEING TO BENEFIT THE
21 PEOPLE OF THE COMMONWEALTH BY, AMONG OTHER THINGS, INCREASING
22 THEIR COMMERCE, HEALTH, SAFETY AND PROSPERITY, AND NOT TO
23 UNNECESSARILY BURDEN OR INTERFERE WITH EXISTING BUSINESS BY THE
24 ESTABLISHMENT OF COMPETITIVE ENTERPRISES, NONE OF THE POWERS
25 GRANTED BY THIS ACT SHALL BE EXERCISED IN THE CONSTRUCTION,
26 FINANCING, IMPROVEMENT, MAINTENANCE, EXTENSION OR OPERATION OF
27 ANY PROJECT OR PROJECTS WHICH IN WHOLE OR IN PART SHALL
28 DUPLICATE OR COMPETE WITH EXISTING ENTERPRISES SERVING
29 SUBSTANTIALLY THE SAME PURPOSES. THIS LIMITATION SHALL NOT APPLY
30 TO THE EXERCISE OF THE POWERS GRANTED HEREUNDER:
19890S0750B2376 - 4 -
1 * * *
2 (IV) TO HOSPITAL PROJECTS OR HEALTH CENTERS TO BE LEASED TO,
3 OR FINANCED WITH LOANS TO, PUBLIC HOSPITALS, NONPROFIT
4 CORPORATION HEALTH CENTERS OR NONPROFIT HOSPITAL CORPORATIONS
5 SERVING THE PUBLIC OR TO SCHOOL BUILDING PROJECTS AND FACILITIES
6 TO BE LEASED TO, OR FINANCED WITH LOANS TO, PRIVATE, NONPROFIT,
7 NONSECTARIAN COLLEGES AND UNIVERSITIES, STATE-RELATED
8 UNIVERSITIES AND COMMUNITY COLLEGES, OR TO FACILITIES, LIMITED
9 AS DESCRIBED ABOVE, TO PRODUCE STEAM OR TO GENERATE ELECTRIC
10 POWER, IF EACH MUNICIPALITY ORGANIZING AN AUTHORITY FOR SUCH A
11 PROJECT SHALL DECLARE BY RESOLUTION OR ORDINANCE THAT IT IS
12 DESIRABLE FOR THE HEALTH, SAFETY AND WELFARE OF THE PEOPLE IN
13 THE AREA SERVED BY SUCH FACILITIES TO HAVE SUCH FACILITIES
14 PROVIDED BY, OR FINANCED THROUGH, AN AUTHORITY[.]; NOR
15 (V) TO PROJECTS FOR FINANCING WORKING CAPITAL.
16 * * *
17 SECTION 4. PURPOSES AND POWERS; GENERAL.--A. EVERY <--
18 AUTHORITY INCORPORATED UNDER THIS ACT SHALL BE A BODY CORPORATE
19 AND POLITIC, AND SHALL BE FOR THE PURPOSE OF ACQUIRING, HOLDING,
20 CONSTRUCTING, IMPROVING, MAINTAINING, AND OPERATING, OWNING,
21 LEASING, EITHER IN THE CAPACITY OF LESSOR OR LESSEE, PROJECTS OF
22 THE FOLLOWING KIND AND CHARACTER AND PROVIDING FINANCING FOR
23 INSURANCE RESERVES.
24 (A) THE AUTHORITY SHALL BE FOR THE PURPOSE OF FINANCING
25 WORKING CAPITAL AND OF ACQUIRING, HOLDING, CONSTRUCTING,
26 FINANCING, IMPROVING, MAINTAINING AND OPERATING, OWNING,
27 LEASING, EITHER IN THE CAPACITY OF LESSOR OR LESSEE, PROJECTS OF
28 THE KIND AND CHARACTER DESCRIBED IN THE FOLLOWING SUBCLAUSES AND
29 FOR THE PURPOSE OF PROVIDING FINANCING FOR INSURANCE RESERVES:
30 * * *
19890S0750B2376 - 5 -
1 (B) THIS SECTION IS SUBJECT TO THE FOLLOWING LIMITATIONS:
2 * * *
3 (2) THE PURPOSE AND INTENT OF THIS ACT BEING TO BENEFIT THE
4 PEOPLE OF THE COMMONWEALTH BY, AMONG OTHER THINGS, INCREASING
5 THEIR COMMERCE, HEALTH, SAFETY AND PROSPERITY, AND NOT TO
6 UNNECESSARILY BURDEN OR INTERFERE WITH EXISTING BUSINESS BY THE
7 ESTABLISHMENT OF COMPETITIVE ENTERPRISES, NONE OF THE POWERS
8 GRANTED BY THIS ACT SHALL BE EXERCISED IN THE CONSTRUCTION,
9 FINANCING, IMPROVEMENT, MAINTENANCE, EXTENSION OR OPERATION OF
10 ANY PROJECT OR PROJECTS OR PROVIDING FINANCING FOR INSURANCE
11 RESERVES WHICH IN WHOLE OR IN PART SHALL DUPLICATE OR COMPETE
12 WITH EXISTING ENTERPRISES SERVING SUBSTANTIALLY THE SAME
13 PURPOSES. THIS LIMITATION SHALL NOT APPLY TO THE EXERCISE OF THE
14 POWERS GRANTED HEREUNDER:
15 * * *
16 (V) TO PROVIDE FINANCING FOR INSURANCE RESERVES, IF EACH
17 MUNICIPALITY OR AUTHORITY INTENDING TO USE ANY PROCEEDS THEREOF
18 SHALL DECLARE BY RESOLUTION OR ORDINANCE THAT IT IS DESIRABLE
19 FOR THE HEALTH, SAFETY AND WELFARE OF THE PEOPLE IN SUCH LOCAL
20 GOVERNMENT UNIT OR SERVED BY SUCH AUTHORITY[.]; NOR
21 (VI) TO PROJECTS FOR FINANCING WORKING CAPITAL.
22 * * *
23 SECTION 3. SUBSECTION B OF SECTION 7 OF THE ACT, AMENDED
24 JULY 27, 1953 (P.L.639, NO.185), IS AMENDED TO READ:
25 SECTION 7. GOVERNING BODY.--* * *
26 B. MEMBERS SHALL HOLD OFFICE UNTIL THEIR SUCCESSORS HAVE
27 BEEN APPOINTED, AND MAY SUCCEED THEMSELVES, AND, EXCEPT MEMBERS
28 OF THE BOARDS OF AUTHORITIES ORGANIZED OR CREATED BY A SCHOOL
29 DISTRICT OR SCHOOL DISTRICTS, SHALL RECEIVE SUCH SALARIES AS MAY
30 BE DETERMINED BY THE GOVERNING BODY OR BODIES OF THE
19890S0750B2376 - 6 -
1 MUNICIPALITY OR MUNICIPALITIES, BUT NONE OF SUCH SALARIES SHALL
2 BE INCREASED OR DIMINISHED BY SUCH GOVERNING BODY OR BODIES
3 DURING THE TERM FOR WHICH THE MEMBER RECEIVING THE SAME SHALL
4 HAVE BEEN APPOINTED. MEMBERS OF THE BOARD OF ANY AUTHORITY
5 ORGANIZED OR CREATED BY A SCHOOL DISTRICT OR SCHOOL DISTRICTS
6 SHALL RECEIVE NO COMPENSATION FOR THEIR SERVICES, BUT THE
7 MEMBERS OF SUCH BOARD IN OFFICE ON THE EFFECTIVE DATE OF THIS
8 AMENDMENT SHALL CONTINUE TO RECEIVE THEIR SALARIES DURING THE
9 REMAINDER OF THEIR EXISTING TERM. A MEMBER MAY BE REMOVED [FOR
10 CAUSE BY THE COURT OF QUARTER SESSIONS OF THE COUNTY IN WHICH
11 THE AUTHORITY IS LOCATED AFTER HAVING BEEN PROVIDED WITH A COPY
12 OF THE CHARGES AGAINST HIM FOR AT LEAST TEN DAYS AND FULL
13 HEARING BY THE COURT.] BY THE GOVERNING BODY THAT APPOINTED THE
14 MEMBER. THE GOVERNING BODY SHALL GIVE THE MEMBER AT LEAST TEN
15 DAYS NOTICE OF THE INTENTION TO REMOVE, PRIOR TO THE REMOVAL
16 VOTE, AND SHALL CONDUCT A PUBLIC HEARING IF REQUESTED BY THE
17 MEMBER. IF A VACANCY SHALL OCCUR BY REASON OF THE DEATH,
18 DISQUALIFICATION, RESIGNATION OR REMOVAL OF A MEMBER, THE
19 MUNICIPAL AUTHORITIES SHALL APPOINT A SUCCESSOR TO FILL HIS
20 UNEXPIRED TERM. IN JOINT AUTHORITIES SUCH VACANCIES SHALL BE
21 FILLED BY THE MUNICIPAL AUTHORITIES OF THE MUNICIPALITY IN THE
22 REPRESENTATION OF WHICH THE VACANCY OCCURS. WHENEVER ANY
23 MUNICIPALITY SHALL WITHDRAW FROM A JOINT AUTHORITY THE TERM OF
24 ANY MEMBER OR MEMBERS APPOINTED FROM SUCH MUNICIPALITY SHALL
25 IMMEDIATELY TERMINATE.
26 * * *
27 Section 1 3 4. Section 10 of the act of May 2, 1945 <--
28 (P.L.382, No.164), known as the Municipality Authorities Act of
29 1945, amended or added June 28, 1979 (P.L.53, No.22) and
30 February 18, 1982 (P.L.86, No.31), is amended to read:
19890S0750B2376 - 7 -
1 Section 10. Competition in Award of Contracts.--A. All
2 construction, reconstruction, repairs or work of any nature made
3 by any Authority, where the entire cost, value or amount of such
4 construction, reconstruction, repairs or work, including labor
5 and materials, shall exceed [four thousand dollars ($4,000)] ten <--
6 thousand dollars ($10,000) THE MONETARY THRESHOLD LEVEL FOR THE <--
7 AUTHORITY TEN THOUSAND DOLLARS ($10,000), except construction, <--
8 reconstruction, repairs or work done by employes of said
9 Authority, or by labor supplied under agreement with any Federal
10 or State agency, with supplies and materials purchased as
11 hereinafter provided, shall be done only under contract or
12 contracts to be entered into by the Authority with the lowest
13 responsible bidder upon proper terms, after due public notice
14 has been given asking for competitive bids as hereinafter
15 provided. No contract shall be entered into for construction or
16 improvement or repair of any project or portion thereof, unless
17 the contractor shall give an undertaking with a sufficient
18 surety or sureties approved by the Authority, and in an amount
19 fixed by the Authority, for the faithful performance of the
20 contract. All such contracts shall provide among other things
21 that the person or corporation entering into such contract with
22 the Authority will pay for all materials furnished and services
23 rendered for the performance of the contract, and that any
24 person or corporation furnishing such materials or rendering
25 such services may maintain an action to recover for the same
26 against the obligor in the undertaking, as though such person or
27 corporation was named therein, provided the action is brought
28 within one year after the time the cause of action accrued.
29 Nothing in this section shall be construed to limit the power of
30 the Authority to construct, repair or improve any project or
19890S0750B2376 - 8 -
1 portion thereof, or any addition, betterment or extension
2 thereto, directly by the officers, agents and employes of the
3 Authority, or otherwise than by contract.
4 (A.1) THE MONETARY THRESHOLD LEVEL ABOVE WHICH COMPETITIVE <--
5 BIDDING SHALL BE REQUIRED SHALL BE ONE PER CENTUM OF THE TOTAL
6 OF ALL BUDGETS ADMINISTERED BY THE AUTHORITY, BUT IN NO CASE
7 SHALL THE MONETARY THRESHOLD BE LESS THAN FOUR THOUSAND DOLLARS
8 ($4,000), NOR MORE THAN TEN THOUSAND DOLLARS ($10,000).
9 B. All supplies and materials [costing [[four thousand <--
10 dollars ($4,000)] ten thousand dollars ($10,000), or more,] <--
11 WHICH COST OR EXCEED THE MONETARY THRESHOLD LEVEL FOR THE <--
12 AUTHORITY TEN THOUSAND DOLLARS ($10,000), OR MORE, shall be <--
13 purchased only after due advertisement as hereinafter provided.
14 Authority shall accept the lowest bid or bids, kind, quality and
15 material being equal, but the Authority shall have the right to
16 reject any or all bids or select a single item from any bid. The
17 provisions as to bidding shall not apply to the purchase of
18 patented and manufactured products offered for sale in a
19 noncompetitive market or solely by a manufacturer's authorized
20 dealer.
21 (B.1) WRITTEN OR TELEPHONIC PRICE QUOTATIONS FROM AT LEAST <--
22 THREE QUALIFIED AND RESPONSIBLE CONTRACTORS SHALL BE REQUESTED
23 FOR ALL CONTRACTS THAT EXCEED FOUR THOUSAND DOLLARS ($4,000) BUT
24 ARE LESS THAN THE AMOUNT REQUIRING ADVERTISEMENT AND COMPETITIVE
25 BIDDING OR, IN LIEU OF PRICE QUOTATIONS, A MEMORANDUM SHALL BE
26 KEPT ON FILE SHOWING THAT FEWER THAN THREE QUALIFIED CONTRACTORS
27 EXIST IN THE MARKET AREA WITHIN WHICH IT IS PRACTICABLE TO
28 OBTAIN QUOTATIONS. A WRITTEN RECORD OF TELEPHONIC PRICE
29 QUOTATIONS SHALL BE MADE AND SHALL CONTAIN AT LEAST THE DATE OF
30 THE QUOTATION, THE NAME OF THE CONTRACTOR AND THE CONTRACTOR'S
19890S0750B2376 - 9 -
1 REPRESENTATIVE, THE CONSTRUCTION, RECONSTRUCTION, REPAIR,
2 MAINTENANCE OR WORK WHICH WAS THE SUBJECT OF THE QUOTATION AND
3 THE PRICE. WRITTEN PRICE QUOTATIONS, WRITTEN RECORDS OF
4 TELEPHONIC PRICE QUOTATIONS AND MEMORANDA SHALL BE RETAINED FOR
5 A PERIOD OF THREE YEARS.
6 C. The terms advertisement or due public notice wherever
7 used in this section, shall mean a notice published at least ten
8 (10) days before the award of any contract, in a newspaper of
9 general circulation published in the municipality where the
10 Authority has its principal office, and if no newspaper is
11 published therein then by publication in a newspaper in the
12 county where the Authority has its principal office: Provided,
13 That such notice may be waived where the Authority determines an
14 emergency exists, and such supplies and materials must be
15 immediately purchased by the said Authority.
16 D. No member of the Authority or officer or employe thereof
17 shall either directly or indirectly be a party to or be in any
18 manner interested in any contract or agreement with the
19 Authority for any matter, cause or thing whatsoever by reason
20 whereof any liability or indebtedness shall in any way be
21 created against such Authority. If any contract or agreement
22 shall be made in violation of the provisions of this section the
23 same shall be null and void and no action shall be maintained
24 thereon against such Authority.
25 E. Subject to the aforesaid any Authority may (but without
26 intending by this provision to limit any powers of such
27 Authority) enter into and carry out such contracts, or establish
28 or comply with such rules and regulations concerning labor and
29 materials and other related matters in connection with any
30 project or portion thereof, as the Authority may deem desirable,
19890S0750B2376 - 10 -
1 or as may be requested by any Federal agency that may assist in
2 the financing of such project or any part thereof: Provided,
3 however, That the provisions of this section shall not apply to
4 any case in which the Authority has taken over by transfer or
5 assignment any contract authorized to be assigned to it under
6 the provisions of section nine of this act, nor to any contract
7 in connection with the construction of any project which the
8 Authority may have had transferred to it by any person or
9 private corporation.
10 F. Every contract for the construction, reconstruction,
11 repair, improvement or maintenance of public works shall contain
12 a provision that any steel products used or supplied in the
13 performance of the contract or any subcontracts thereunder shall
14 be from steel made in the United States.
15 G. An Authority shall not evade the provisions of this
16 section as to bids or purchasing materials or contracting for
17 services piece-meal, for the purpose of obtaining prices under
18 ten thousand dollars ($10,000) THE MONETARY THRESHOLD LEVEL FOR <--
19 THE AUTHORITY TEN THOUSAND DOLLARS ($10,000), upon transactions <--
20 which should in the exercise of reasonable discretion and
21 prudence be conducted as one transaction amounting to more than
22 ten thousand dollars ($10,000) THE MONETARY THRESHOLD LEVEL FOR <--
23 THE AUTHORITY TEN THOUSAND DOLLARS ($10,000). This provision is <--
24 intended to make unlawful the practice of evading contracting
25 requirements by making a series of purchases or contracts each
26 for less than the advertising requirement price, or by making
27 several simultaneous purchases or contracts each below said
28 price, when in either case the transaction involved should have
29 been made as one transaction for one price.
30 H. ANY AUTHORITY MEMBER WHO VOTES TO UNLAWFULLY EVADE THE <--
19890S0750B2376 - 11 -
1 PROVISIONS OF THIS SECTION AND WHO KNOWS THAT THE TRANSACTION
2 UPON WHICH HE SO VOTES IS OR OUGHT TO BE PART OF A LARGER
3 TRANSACTION AND THAT IT IS BEING DIVIDED IN ORDER TO EVADE THE
4 REQUIREMENTS AS TO ADVERTISING FOR BIDS, COMMITS A MISDEMEANOR
5 OF THE THIRD DEGREE FOR EACH CONTRACT ENTERED INTO AS A DIRECT
6 RESULT OF THAT VOTE.
7 Section 2 4 5. This act shall take effect in 60 days. <--
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