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                                 HOUSE AMENDED
        PRIOR PRINTER'S NOS. 817, 1662, 2228          PRINTER'S NO. 2379

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 753 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 August 6, 1936 (Sp.Sess., P.L.95, No.38
     2     1/2), entitled "An act to authorize and empower cities,
     3     boroughs, towns, and townships, separately or jointly, to
     4     provide for protection against floods by erecting and
     5     constructing certain works and improvements, located within
     6     or without their territorial limits, and within or without
     7     the county in which situate; and to expend moneys and incur
     8     indebtedness; to assess benefits against property benefited;
     9     to issue improvement bonds imposing no municipal liability;
    10     and to acquire, take, injure or destroy property for such
    11     purposes," further regulating purchases and bidding on such
    12     purchases; AND PROVIDING A PENALTY.                            <--

    13     The General Assembly of the Commonwealth of Pennsylvania
    14  hereby enacts as follows:
    15     Section 1.  Section 3 of the act of August 6, 1936 (Sp.Sess.,
    16  P.L.95, No.38 1/2), entitled "An act to authorize and empower
    17  cities, boroughs, towns, and townships, separately or jointly,
    18  to provide for protection against floods by erecting and
    19  constructing certain works and improvements, located within or
    20  without their territorial limits, and within or without the
    21  county in which situate; and to expend moneys and incur


     1  indebtedness; to assess benefits against property benefited; to
     2  issue improvement bonds imposing no municipal liability; and to
     3  acquire, take, injure or destroy property for such purposes,"
     4  amended December 22, 1981 (P.L.553, No.163), is amended to read:
     5     Section 3.  (a)  No such works or improvements, involving an
     6  expenditure by any municipality or municipalities of more than
     7  [four thousand dollars ($4,000)] ten thousand dollars ($10,000)   <--
     8  THE MONETARY THRESHOLD LEVEL FOR THE MUNICIPALITY OR              <--
     9  MUNICIPALITIES TEN THOUSAND DOLLARS ($10,000), shall be erected,  <--
    10  constructed or provided, except by contract let to the lowest
    11  responsible bidder after due advertisement, once a week for two
    12  successive weeks in at least one newspaper of general
    13  circulation: Provided, however, That no contract shall be
    14  required to be let for the performance of the work on any such
    15  work or improvement where the cost of the labor shall be paid by
    16  the Federal Government, or any agency thereof, without cost to
    17  the municipality or municipalities.
    18     (B)  THE MONETARY THRESHOLD LEVEL ABOVE WHICH COMPETITIVE      <--
    19  BIDDING SHALL BE REQUIRED SHALL BE ONE PER CENTUM OF THE TOTAL
    20  OF ALL BUDGETS ADMINISTERED BY THE MUNICIPALITY OR
    21  MUNICIPALITIES, BUT IN NO CASE SHALL THE MONETARY THRESHOLD BE
    22  LESS THAN FOUR THOUSAND DOLLARS ($4,000), NOR MORE THAN TEN
    23  THOUSAND DOLLARS ($10,000).
    24     (C) (B)  WRITTEN OR TELEPHONIC PRICE QUOTATIONS FROM AT LEAST  <--
    25  THREE QUALIFIED AND RESPONSIBLE CONTRACTORS SHALL BE REQUESTED
    26  FOR ALL CONTRACTS THAT EXCEED FOUR THOUSAND DOLLARS ($4,000) BUT
    27  ARE LESS THAN THE AMOUNT REQUIRING ADVERTISEMENT AND COMPETITIVE
    28  BIDDING OR, IN LIEU OF PRICE QUOTATIONS, A MEMORANDUM SHALL BE
    29  KEPT ON FILE SHOWING THAT FEWER THAN THREE QUALIFIED CONTRACTORS
    30  EXIST IN THE MARKET AREA WITHIN WHICH IT IS PRACTICABLE TO
    19890S0753B2379                  - 2 -

     1  OBTAIN QUOTATIONS. A WRITTEN RECORD OF TELEPHONIC PRICE
     2  QUOTATIONS SHALL BE MADE AND SHALL CONTAIN AT LEAST THE DATE OF
     3  THE QUOTATION, THE NAME OF THE CONTRACTOR AND THE CONTRACTOR'S
     4  REPRESENTATIVE, THE CONSTRUCTION, RECONSTRUCTION, REPAIR,
     5  MAINTENANCE OR WORK WHICH WAS THE SUBJECT OF THE QUOTATION AND
     6  THE PRICE. WRITTEN PRICE QUOTATIONS, WRITTEN RECORDS OF
     7  TELEPHONIC PRICE QUOTATIONS AND MEMORANDA SHALL BE RETAINED FOR
     8  A PERIOD OF THREE YEARS.
     9     (b) (D) (C)  No municipality shall evade the provisions of     <--
    10  this section as to advertising for bids or purchasing materials
    11  or contracting for services piece-meal, for the purpose of
    12  obtaining prices under ten thousand dollars ($10,000) THE         <--
    13  MONETARY THRESHOLD LEVEL FOR THE MUNICIPALITY OR MUNICIPALITIES
    14  TEN THOUSAND DOLLARS ($10,000) upon transactions which should in  <--
    15  the exercise of reasonable discretion and prudence be conducted
    16  as one transaction amounting to more than ten thousand dollars    <--
    17  ($10,000) THE MONETARY THRESHOLD LEVEL FOR THE MUNICIPALITY OR    <--
    18  MUNICIPALITIES TEN THOUSAND DOLLARS ($10,000). This provision is  <--
    19  intended to make unlawful the practice of evading advertising
    20  requirements by making a series of purchases or contracts each
    21  for less than the advertising requirement price, or by making
    22  several simultaneous purchases or contracts each below said
    23  price, when in either case the transaction involved should have
    24  been made as one transaction for one price.
    25     (D)  ANY MEMBER OF A GOVERNING BODY OF A MUNICIPALITY WHO      <--
    26  VOTES TO UNLAWFULLY EVADE THE PROVISIONS OF THIS SECTION AND WHO
    27  KNOWS THAT THE TRANSACTION UPON WHICH HE SO VOTES IS OR OUGHT TO
    28  BE A PART OF A LARGER TRANSACTION AND THAT IT IS BEING DIVIDED
    29  IN ORDER TO EVADE THE REQUIREMENTS AS TO ADVERTISING FOR BIDS,
    30  COMMITS A MISDEMEANOR OF THE THIRD DEGREE FOR EACH CONTRACT
    19890S0753B2379                  - 3 -

     1  ENTERED INTO AS A DIRECT RESULT OF THAT VOTE.
     2     (c) (E)  Every contract for the construction, reconstruction,  <--
     3  alteration, repair, improvement or maintenance of public works
     4  shall comply with the provisions of the act of March 3, 1978
     5  (P.L.6, No.3), known as the "Steel Products Procurement Act."
     6     Section 2.  This act shall take effect in 60 days.
















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