Bill Text: PA HB282 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amending the act of May 27, 1953 (P.L.244, No.34), entitled "An act relating to and regulating the contracts of incorporated towns and providing penalties," further providing for regulation of contracts; providing for annual adjustment; further providing for evasion of advertising requirements, for contracts between $750 and $10,000 and for separate bids for plumbing, heating, ventilating and electrical work.

Spectrum: Partisan Bill (Republican 77-1)

Status: (Engrossed - Dead) 2011-09-28 - Re-referred to APPROPRIATIONS [HB282 Detail]

Download: Pennsylvania-2011-HB282-Amended.html

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PRIOR PRINTER'S NO. 235 PRINTER'S NO. 1430
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 282 Session of2011
INTRODUCED BY M. K. KELLER, AUMENT, BAKER, BEAR, BENNINGHOFF, BLOOM, BOBACK, BOYD, BROOKS, CAUSER, CHRISTIANA, CLYMER, COX, CREIGHTON, CUTLER, DELOZIER, DENLINGER, ELLIS, EVERETT, FARRY, FLECK, GABLER, GEIST, GILLESPIE, GINGRICH, GRELL, GROVE, HALUSKA, HARHART, HARPER, HARRIS, HELM, HENNESSEY, HESS, HICKERNELL, KAUFFMAN, KILLION, KNOWLES, MAJOR, MARSHALL, MARSICO, MASSER, METCALFE, MILLARD, MILLER, MOUL, OBERLANDER, O'NEILL, PAYNE, PEIFER, PERRY, PICKETT, PYLE, QUIGLEY, QUINN, RAPP, REED, REICHLEY, ROAE, ROCK, ROSS, SAYLOR, SCAVELLO, CULVER, SCHRODER, SIMMONS, SONNEY, STERN, STEVENSON, SWANGER, TALLMAN, TOBASH, TRUITT, TURZAI, VEREB, VULAKOVICH, WATSON AND F. KELLER, JANUARY 27, 2011
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF REPRESENTATIVES, AS AMENDED, APRIL 5, 2011
AN ACT
Amending the act of May 27, 1953 (P.L.244, No.34), entitled "An
act relating to and regulating the contracts of incorporated
towns and providing penalties," further providing for
regulation of contracts; providing for annual adjustment;
further providing for evasion of advertising requirements,
for contracts between $750 and $10,000 and for separate bids
for plumbing, heating, ventilating and electrical work.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2(a) of the act of May 27, 1953 (P.L.244, <--
No.34), entitled "An act relating to and regulating the
contracts of incorporated towns and providing penalties,"
amended July 10, 1990 (P.L.392, No.93), is amended to read:
Section 1. Section 2(a) and (d)(2) of the act of May 27, <--
1953 (P.L.244, No.34), entitled "An act relating to and
regulating the contracts of incorporated towns and providing
penalties," amended July 10, 1990 (P.L.392, No.93) and December
18, 1996 (P.L.1140, No.17), are amended to read:
Section 2. Regulation of Contracts.--(a) All contracts or
purchases of incorporated towns in excess of [ten thousand
dollars] the base amount of twenty-five thousand dollars subject <--
to annual adjustment under section 2.1, except those hereinafter
mentioned, shall not be made except with and from the lowest
responsible bidder, after due notice in one newspaper of general
circulation published or circulated in the county in which the
town is situated at least three times at intervals of not less
than three days where daily newspapers of general circulation
are available for such publication, and in case of weekly
newspapers shall be published once a week for two successive
weeks. The first advertisement shall be published not less than
ten days prior to the date fixed for the opening of bids. The
amount of the contract shall in all cases, whether of straight
sale price, conditional sale, bailment lease or otherwise, be
the entire amount which the town pays to the successful bidder
or his assigns in order to obtain the services or property or
both, and shall not be construed to mean only the amount which
is paid to acquire title or to receive any other particular
benefit or benefits of the whole bargain.
* * *
(d) The contracts or purchases made by council, which shall <--
not require advertising, bidding or price quotations as
hereinbefore provided, are as follows:
* * *
(2) Those made for improvements, repairs and maintenance of
any kind made or provided by any incorporated town through its
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own employes: Provided, That all materials used for street
improvement, maintenance and/or construction in excess of [four]
ten thousand dollars be subject to the relevant price quotation
or advertising requirements contained herein and to annual
adjustment under section 2.1.
* * *
Section 2. The act is amended by adding a section to read:
Section 2.1. Annual Adjustment.--(a) The Department of <--
Labor and Industry shall determine the percentage change in the
Consumer Price Index for All Urban Consumers for the twelve-
month period ending September 30 of the calendar year in which
this section becomes effective, and for each successive twelve-
month period thereafter.
(b) The amount at which competitive bidding is required
under section 2(a) and the amount at which written or telephonic
price quotations are required under section 3.1 shall be
adjusted annually as follows:
(1) In the case of competitive bidding, the positive
percentage change, as determined in accordance with subsection
(a), shall be multiplied by the amount applicable under section
2 for the current year and the product thereof shall be added to
the amount applicable under section 2 for the current year, with
the result rounded to the nearest multiple of ten dollars.
(2) In the case of written or telephonic price quotations,
the positive percentage change, as determined in accordance with
subsection (a), shall be multiplied by the amount applicable
under section 3.1 for the current year and the product thereof
shall be added to the amount applicable under section 3.1 for
the current year, with the result rounded to the nearest
multiple of ten dollars.
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(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 is required under section 2 and written or
telephonic price quotations are required under section 3.1 for
the calendar year beginning the first day of January after
publication of the notice. Adjustments to the base amounts <--
specified under sections 2(a) and (d)(2), 3(a), 3.1(b) and 5
shall be made as follows:
(1) The Department of Labor and Industry shall determine the
percentage change in the All Items Consumer Price Index for All
Urban Consumers (CPI-U) for the United States City Average as
published by the United States Department of Labor, Bureau of
Labor Statistics for the twelve-month period ending September 30
of the calendar year in which this section becomes effective,
and for each successive twelve-month period thereafter.
(2) If the department determines that there is no positive
percentage change, then no adjustment to the base amounts shall
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occur for the relevant time period provided for in this section.
(3) (i) If the department determines that there is a
positive percentage change in the first year that the
determination is made under paragraph (1), the positive
percentage change shall be multiplied by each base amount and
the products shall be added to the base amounts, respectively,
and the sums shall be preliminary adjusted amounts.
(ii) The preliminary adjusted amounts shall be rounded to
the nearest one thousand dollars, to determine the final
adjusted base amounts for purposes of sections 2(a) and (d)(2),
3(a), 3.1(b) and 5.
(4) In each successive year in which there is a positive
percentage change in the CPI-U for the United States City
Average, the positive percentage change shall be multiplied by
the most recent preliminary adjusted amounts and the products
shall be added to the most recent preliminary adjusted amounts,
respectively. The sums thereof shall be rounded to the nearest
one thousand dollars to determine the new final adjusted base
amounts for purposes of sections 2(a) and (d)(2), 3(a), 3.1(b)
and 5.
(5) The determinations and adjustments required under this
section 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
year thereafter.
(6) The final adjusted base amounts and new final adjusted
base amounts obtained under paragraphs (3) and (4) shall become
effective January 1 for the calendar year following the year in
which the determination required under paragraph (1) is made.
(7) The department shall publish notice in the Pennsylvania
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Bulletin prior to January 1 of each calendar year of the annual
percentage change determined under paragraph (1) and the
unadjusted or final adjusted base amounts determined under
paragraphs (3) and (4) for purposes of sections 2(a) and (d)(2),
3(a), 3.1(b) and 5 for the calendar year beginning the first day
of January after publication of the notice. The notice shall
include a written and illustrative explanation of the
calculations performed by the department in establishing the
unadjusted or final adjusted base amounts under this section for
the ensuing calendar year.
Section 3. Section 3 of the act, amended July 10, 1990
(P.L.392, No.93), is amended to read:
Section 3. Evasion of Advertising Requirements.--(a) No
member or members of council shall evade the provisions of
Section two hereof by purchasing or contracting for services and
personal properties piecemeal for the purpose of obtaining
prices under [ten thousand dollars] the base amount of twenty- <--
five thousand dollars subject to annual adjustment under section
2.1 upon transactions which transaction should, in the exercise
of reasonable discretion and prudence, be conducted as one
transaction amounting to more than [ten thousand dollars] the <--
base amount of twenty-five thousand dollars subject to annual
adjustment under section 2.1. This provision is intended to make
unlawful the evading of advertising requirements by making a
series of purchases or contracts each for less than the
advertising requirement of price, or by making several
simultaneous purchases or contracts each below said price, when,
in either case, the transactions involved should have been made
as one transaction for one price. Any members of council who so
vote in violation of this provision and who know that the
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transaction upon which they so vote is or ought to be a part of
a larger transaction and that it is being divided in order to
evade the requirements as to advertising for bids shall be
jointly and severally subject to surcharge for ten per centum of
the full amount of the contract or purchase.
(b) Whenever it shall appear that a member of council may
have voted in violation of this section but the purchase or
contract on which he so voted was not approved by council, this
section shall be inapplicable.
(c) Any council member who votes to unlawfully evade the
provisions of section 2 and who knows that the transaction upon
which he so votes is or ought to be a part of a larger
transaction and that it is being divided in order to evade the
requirements as to advertising for bids commits a misdemeanor of
the third degree for each contract entered into as a direct
result of that vote. This penalty shall be in addition to any
surcharge which may be assessed pursuant to subsection (a).
Section 4. Section 3.1 of the act, amended July 10, 1990
(P.L.392, No.93) and repealed in part December 18, 1996
(P.L.1140, No.170), is amended to read:
Section 3.1. Contracts between Seven Hundred Fifty Dollars
and [Ten thousand] Twenty-five Thousand Dollars; Written Bids.--
(b) Written or telephonic price quotations from at least
three qualified and responsible contractors shall be requested
for all contracts that [exceed [four thousand dollars] are in <--
excess of the base amount of ten thousand dollars subject to
annual adjustment under section 2.1 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 qualified contractors exist in the market
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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 years.
Section 5. Section 5 of the act, amended July 10, 1990
(P.L.392, No.93), is amended to read:
Section 5. Separate Bids for Plumbing, Heating, Ventilating
and Electrical Work.--In the preparation for the erection,
construction and alteration of any public building of an
incorporated town, when the entire cost of such work shall
[exceed [ten thousand dollars] be in excess of the base amount <--
of twenty-five thousand dollars subject to annual adjustment
under section 2.1, the architect, engineer or other person
preparing such specifications shall prepare separate
specifications for the plumbing, heating, ventilating and
electrical work. The person or persons authorized to enter into
contracts for the erection, construction or alteration of such
public buildings 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 6. 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 7. This act shall take effect immediately.
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