Bill Text: PA HB1164 | 2009-2010 | Regular Session | Introduced

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Bill Title: Providing for adjustments based on Consumer Price Index; and further regulating contracts and purchases.

Spectrum: Partisan Bill (Republican 22-0)

Status: (Introduced - Dead) 2009-04-01 - Referred to LOCAL GOVERNMENT [HB1164 Detail]

Download: Pennsylvania-2009-HB1164-Introduced.html

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PRINTER'S NO. 1386
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1164 Session of2009
INTRODUCED BY M. KELLER, CREIGHTON, CUTLER, FAIRCHILD, HICKERNELL, KAUFFMAN, MAJOR, MENSCH, MILLARD, PAYNE, PYLE, QUINN, STEVENSON, WATSON, MOUL, GINGRICH, DENLINGER, SWANGER AND ROCK, APRIL 1, 2009
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, APRIL 1, 2009
AN ACT
Amending the act of July 28, 1953 (P.L.723, No.230), entitled,
as amended, "An act relating to counties of the second class
and second class A; amending, revising, consolidating and
changing the laws relating thereto," providing for
adjustments based on Consumer Price Index; and further
regulating contracts and purchases.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of July 28, 1953 (P.L.723, No.230), known
as the Second Class County Code, is amended by adding a section
to read:
Section 112. Adjustments Based on Change in Consumer Price
Index.--(a) Annually, beginning with the year in which this
subsection becomes applicable to contracts and purchases, the
Department of Labor and Industry shall calculate the percentage
change in the Consumer Price Index for All Urban Consumers (CPI-
U) for the United States city average for all items as published
by the United States Department of Labor, Bureau of Labor
Statistics, for the twelve-month average ending in September of
the prior year.
(b) The amounts at which competitive bidding, separate bids
and written or telephonic price quotations are required under
this act shall be adjusted annually. The positive percentage
change, as determined in accordance with subsection (a), shall
be multiplied by the applicable amount for the current year and
the product thereof shall be added to the applicable amount for
the current year, with the result rounded to the nearest
multiple of ten dollars ($10).
(c) The annual determination required under subsection (a)
and the calculation of the adjustments required under subsection
(b) shall be made in the period between October 1 and November
15 of the year following the effective date of this section, and
annually between October 1 and November 15 of each successive
year.
(d) The adjusted amounts obtained in accordance with
subsection (b) shall become effective January 1 for the calendar
year following the year in which the determination required
under subsection (a) is made.
(e) The Department of Labor and Industry shall give notice
in the Pennsylvania Bulletin prior to January 1 of each calendar
year of the annual percentage change determined in accordance
with subsection (a) and the amounts, whether adjusted or
unadjusted in accordance with subsection (b), at which
competitive bidding, separate bids and written or telephonic
price quotations are required under this act for the calendar
year beginning the first day of January after publication of the
notice.
Section 2. Section 2001(a) and (d) of the act, amended
November 30, 2004 (P.L.1439, No.186), are amended to read:
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Section 2001. County Commissioners to Make Contracts.--The
County Commissioners may make contracts for lawful purposes and
for the purposes of carrying into execution the provisions of
this section and the laws of the Commonwealth.
(a) Except as provided in subsection (a.1), all contracts or
purchases in excess of [ten thousand dollars ($10,000)] twenty-
five thousand dollars ($25,000), subject to annual adjustment
under section 112, shall be in writing and, except those
hereinafter mentioned and except as provided by the act of
October 27, 1979 (P.L.241, No.78), entitled "An act authorizing
political subdivisions, municipality authorities and
transportation authorities to enter into contracts for the
purchase of goods and the sale of real and personal property
where no bids are received," shall not be made except with and
from the lowest responsible and responsive bidder meeting
specifications, after due notice in at least one newspaper of
general circulation, published or circulating in the county at
least two (2) times, at intervals of not less than three (3)
days where daily newspapers of general circulation are employed
for such publication, or in case weekly newspapers are employed,
then the notice shall be published once a week for two (2)
successive weeks. The first advertisement shall be published not
less than ten (10) days prior to the date fixed for the opening
of bids.
* * *
(d) The contracts or purchases made by the commissioners
involving an expenditure of over [ten thousand dollars
($10,000)] twenty-five thousand dollars ($25,000), subject to
annual adjustment under section 112, which shall not require
advertising or bidding as hereinbefore provided are as follows:
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(1) Those for maintenance, repairs or replacements for
water, electric light, or other public works: Provided, That
they do not constitute new additions, extensions or enlargements
of existing facilities and equipment. Security may be required
by the county commissioners as in other cases of work done.
(2) Those made for improvements, repairs and maintenance of
any kind made or provided by the county through its own
employes. This paragraph shall not apply to construction
materials used in a street improvement.
(3) Those where particular types, models or pieces of new
equipment, articles, apparatus, appliances, vehicles or parts
thereof are desired by the county commissioners, which are
patented and manufactured products or copyrighted products.
(4) Those involving any policies of insurance or surety
company bonds, those made for public utility service and
electricity, natural gas or telecommunication services:
Provided, That, in the case of utilities not under tariffs on
file with the Pennsylvania Public Utility Commission, contracts
made without advertising and bidding shall be made only after
receiving written or telephonic price quotations from at least
three (3) qualified and responsible contractors, or in lieu of
price quotations a memorandum shall be kept on file showing that
fewer than three (3) 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
contain at least the date of the quotation, the name of the
contractor and the contractor's representative.
(5) Those involving personal or professional services,
including, but not limited to, services of members of the
medical or legal profession, registered architects, engineers,
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certified public accountants or other personal services
involving professional expertise.
(6) Those involving tangible client services provided by
nonprofit agencies. For the purposes of this clause, the term
"tangible client services" shall mean congregate meals, home-
delivered meals, transportation and chore services provided
through area agencies on aging.
(6.1) Those involving contracts entered into by nonprofit
cooperative hospital service associations for hospitals and
nursing homes which are part of the institutional district or
which are owned by the county, operated by the county or
affiliated with the county by the purchasing of or participating
in contracts for materials, supplies and equipment.
(7) Those involving the purchase of milk.
(8) Those made with any public body, including, but not
limited to, the sale, lease or loan of any supplies or materials
to the county by a public body, provided that the price thereof
shall not be in excess of that fixed by the public body. The
requirements of 53 Pa.C.S. Ch. 23 Subch. A (relating to
intergovernmental cooperation) shall not apply when a county
purchases cooperatively with another public body which has
entered into a contract for supplies or materials. As used in
this paragraph, "public body" shall mean any of the following:
(i) the Federal Government;
(ii) the Commonwealth of Pennsylvania;
(iii) any other state;
(iv) a political subdivision, local or municipal authority
or other similar local entity of the Commonwealth or any other
state; or
(v) an agency of the Federal Government, the Commonwealth or
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any other state.
(9) Those exclusively involving construction management
services.
(10) Those involving computer software.
* * *
Section 3. Section 2517(a) of the act, amended December 9,
2002 (P.L.1383, No.170), is amended to read:
Section 2517. Separate Specifications and Contracts for
Certain Items.--(a) In the preparation of specifications for
the erection, construction and alteration of any public
building, when the entire cost of such work shall exceed [ten
thousand dollars ($10,000)] twenty-five thousand dollars
($25,000), subject to annual adjustment under section 112, the
architect, engineer or other person preparing such
specifications shall prepare separate specifications for the
plumbing, heating, ventilating and electrical work. The board of
commissioners shall receive separate bids upon each of the said
branches of work and award the contract for the same to the
lowest responsible bidder for each of said branches.
* * *
Section 4. Section 2511-A(a), (b), (b.1) and (h) of the act,
added October 30, 2000 (P.L.616, No.85), are amended to read:
Section 2511-A. Competition in Award of Contracts.--(a) All
construction, reconstruction, repairs or work of any nature made
by any Authority, where the entire cost, value or amount of such
construction, reconstruction, repairs or work, including labor
and materials, shall exceed [ten thousand dollars ($10,000)]
twenty-five thousand dollars ($25,000), subject to annual
adjustment under section 112, except construction,
reconstruction, repairs or work done by employes of said
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Authority or by labor supplied under agreement with any Federal
or State agency with supplies and materials purchased, as
hereinafter provided, shall be done only under contract or
contracts to be entered into by the Authority with the lowest
responsible bidder upon proper terms, after due public notice
has been given asking for competitive bids hereinafter provided.
No contract shall be entered into for construction or
improvement or repair of any project or portion thereof unless
the contractor shall give an undertaking, with a sufficient
surety or sureties approved by the Authority and in an amount
fixed by the Authority, for the faithful performance of the
contract. All such contracts shall provide, among other things,
that the person or corporation entering into such contract with
the Authority will pay for all materials furnished and services
rendered for the performance of the contract and that any person
or corporation furnishing such materials or rendering such
services may maintain an action to recover for the same against
the obligor in the undertaking as though such person or
corporation was named therein, provided the action is brought
within one (1) year after the time the cause of action accrued.
Nothing in this section shall be construed to limit the power of
the Authority to construct, repair or improve any project or
portion thereof or any addition, betterment or extension thereto
directly by the officers, agents and employes of the Authority
or otherwise than by contract.
(b) All supplies and materials costing [ten thousand dollars
($10,000)] twenty-five thousand dollars ($25,000), subject to
annual adjustment under section 112, or more shall be purchased
only after due advertisement as hereinafter provided. The
Authority shall accept the lowest bid or bids, kinds, quality
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and material being equal, but the Authority shall have the right
to reject any or all bids or select a single item from any bid.
The provisions as to bidding shall not apply to the purchase of
patented and manufactured products offered for sale in a non-
competitive market or solely by a manufacturer's authorized
dealer.
(b.1) Written or telephonic price quotations from at least
three (3) qualified and responsible contractors shall be
requested for all contracts that exceed [four thousand dollars
($4,000)] ten thousand dollars ($10,000), subject to annual
adjustment under section 112, 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 (3) 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 (3) years.
* * *
(h) An Authority shall not 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)] twenty-five
thousand dollars ($25,000), subject to annual adjustment under
section 112, upon transactions which should, in the exercise of
reasonable discretion and prudence, be conducted as one
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transaction amounting to more than [ten thousand dollars
($10,000)] twenty-five thousand dollars ($25,000), subject to
annual adjustment under section 112. 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.
* * *
Section 5. This act shall apply to contracts and purchases
advertised on or after January 1 of the year following the
effective date of this section.
Section 6. This act shall take effect immediately.
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