PRIOR PRINTER'S NO. 2504 PRINTER'S NO 3248
No. 1862 Session of 2005
INTRODUCED BY HARPER, HERMAN, LESCOVITZ, BIANCUCCI, HANNA, ROSS, HARHAI, HICKERNELL, O'NEILL, KAUFFMAN, HENNESSEY, M. KELLER, PETRI, T. STEVENSON, McNAUGHTON, GINGRICH, ARMSTRONG, BALDWIN, BOYD, CAPPELLI, DALLY, DENLINGER, DeWEESE, FRANKEL, GEIST, HARRIS, HERSHEY, McILHATTAN, PHILLIPS, PICKETT, SCAVELLO AND WATSON, JULY 3, 2005
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF REPRESENTATIVES, AS AMENDED, DECEMBER 6, 2005
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 providing for competitive bidding of 12 contracts. 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
1 county in which situate; and to expend moneys and incur 2 indebtedness; to assess benefits against property benefited; to 3 issue improvement bonds imposing no municipal liability; and to 4 acquire, take, injure or destroy property for such purposes," 5 amended July 10, 1990 (P.L.402, No.97), is amended to read: 6 Section 3. (a) No such works or improvements, involving an 7 expenditure by any municipality or municipalities of more than 8 [ten thousand dollars ($10,000)] twenty-five thousand dollars <-- 9 ($25,000) EIGHTEEN THOUSAND DOLLARS ($18,000), subject to <-- 10 adjustment under subsection (b.1), shall be erected, constructed 11 or provided, except by contract let to the lowest responsible 12 bidder after due advertisement, once a week for two successive 13 weeks in at least one newspaper of general circulation: 14 Provided, however, That no contract shall be required to be let 15 for the performance of the work on any such work or improvement 16 where the cost of the labor shall be paid by the Federal 17 Government, or any agency thereof, without cost to the 18 municipality or municipalities. 19 (b) Written or telephonic price quotations from at least 20 three qualified and responsible contractors shall be requested 21 for all contracts that exceed [four thousand dollars ($4,000)] 22 ten thousand dollars ($10,000) SEVEN THOUSAND DOLLARS ($7,000), <-- 23 subject to adjustment under subsection (b.1), but are less than 24 the amount requiring advertisement and competitive bidding or, 25 in lieu of price quotations, a memorandum shall be kept on file 26 showing that fewer than three qualified contractors exist in the 27 market area within which it is practicable to obtain quotations. 28 A written record of telephonic price quotations shall be made 29 and shall contain at least the date of the quotation, the name 30 of the contractor and the contractor's representative, the 20050H1862B3248 - 2 -
1 construction, reconstruction, repair, maintenance or work which 2 was the subject of the quotation and the price. Written price 3 quotations, written records of telephonic price quotations and 4 memoranda shall be retained for a period of three years. 5 (b.1) Adjustments shall be made as follows: 6 (1) The Department of Labor and Industry shall determine the <-- 7 percentage change in the Consumer Price Index for All Urban 8 Consumers for the twelve-month period ending September 30 of the 9 calendar year in which this subsection becomes effective, and 10 for each successive twelve-month period thereafter. 11 (1) ANNUALLY, BEGINNING WITH THE YEAR IN WHICH THIS <-- 12 SUBSECTION BECOMES APPLICABLE TO CONTRACTS AND PURCHASES, THE 13 DEPARTMENT OF LABOR AND INDUSTRY SHALL CALCULATE THE PERCENTAGE 14 CHANGE IN THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS (CPI- 15 U) FOR THE UNITED STATES CITY AVERAGE FOR ALL ITEMS AS PUBLISHED 16 BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR 17 STATISTICS, FOR THE TWELVE-MONTH AVERAGE ENDING IN SEPTEMBER OF 18 THE PRIOR YEAR. 19 (2) The amount at which competitive bidding is required 20 under subsection (a) and the amount at which written or 21 telephonic price quotations are required under subsection (b) 22 shall be adjusted annually as follows: 23 (i) In the case of competitive bidding, the positive 24 percentage change, as determined in accordance with paragraph 25 (1), shall be multiplied by the amount applicable under 26 subsection (a) for the current year and the product thereof 27 shall be added to the amount applicable under subsection (a) for 28 the current year, with the result rounded to the nearest 29 multiple of ten dollars ($10). 30 (ii) In the case of written or telephonic price quotations, 20050H1862B3248 - 3 -
1 the positive percentage change, as determined in accordance with 2 paragraph (1), shall be multiplied by the amount applicable 3 under subsection (b) for the current year and the product 4 thereof shall be added to the amount applicable under subsection 5 (b) for the current year, with the result rounded to the nearest 6 multiple of ten dollars ($10). 7 (3) The annual determination required under paragraph (1) 8 and the calculation of the adjustments required under paragraph 9 (2) shall be made in the period between October 1 and November 10 15 of the year following the effective date of this subsection, 11 and annually between October 1 and November 15 of each 12 successive year. 13 (4) The adjusted amounts obtained in accordance with 14 paragraph (2) shall become effective January 1 for the calendar 15 year following the year in which the determination required 16 under paragraph (1) is made. 17 (5) The department shall give notice in the Pennsylvania 18 Bulletin prior to January 1 of each calendar year of the annual 19 percentage change determined in accordance with paragraph (1) 20 and the amounts, whether adjusted or unadjusted in accordance 21 with paragraph (2), at which competitive bidding is required 22 under subsection (a) and written or telephonic price quotations 23 are required under subsection (b) for the calendar year 24 beginning the first day of January after publication of the 25 notice. 26 (c) No municipality shall evade the provisions of this 27 section as to advertising for bids or purchasing materials or 28 contracting for services piecemeal for the purpose of obtaining 29 prices under [ten thousand dollars ($10,000)] the amount 30 required by this section upon transactions which should, in the 20050H1862B3248 - 4 -
1 exercise of reasonable discretion and prudence, be conducted as
2 one transaction amounting to more than [ten thousand dollars
3 ($10,000)] the amount required by this section. This provision
4 is intended to make unlawful the practice of evading advertising
5 requirements by making a series of purchases or contracts each
6 for less than the advertising requirement price or by making
7 several simultaneous purchases or contracts each below said
8 price, when in either case the transaction involved should have
9 been made as one transaction for one price.
10 (d) Any member of a governing body of a municipality who
11 votes to unlawfully evade the provisions of this section and who
12 knows that the transaction upon which he so votes is or ought to
13 be a part of a larger transaction and that it is being divided
14 in order to evade the requirements as to advertising for bids
15 commits a misdemeanor of the third degree for each contract
16 entered into as a direct result of that vote.
17 (e) Every contract for the construction, reconstruction,
18 alteration, repair, improvement or maintenance of public works
19 shall comply with the provisions of the act of March 3, 1978
20 (P.L.6, No.3), known as the "Steel Products Procurement Act."
21 Section 2. The amendment of section 3 of the act shall apply
22 to contracts and purchases advertised after December 31 of the
23 year in which this section takes effect.
24 Section 3. This act shall take effect immediately.
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