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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY CLYMER, AUMENT, BAKER, BLOOM, CREIGHTON, CUTLER, KAUFFMAN, LAWRENCE, MILNE, MOUL, RAPP, REICHLEY, ROCK, ROSS, SCAVELLO AND TALLMAN, MAY 10, 2011 |
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| REFERRED TO COMMITTEE ON EDUCATION, MAY 10, 2011 |
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| AN ACT |
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1 | Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An |
2 | act relating to the public school system, including certain |
3 | provisions applicable as well to private and parochial |
4 | schools; amending, revising, consolidating and changing the |
5 | laws relating thereto," providing for adjustments based on |
6 | Consumer Price Index relating to contracts and purchases; and |
7 | further providing for work to be done under contract let on |
8 | bids and exception, for purchase of supplies, for contracts |
9 | for construction, repair, renovation or maintenance, for |
10 | project contracts and for powers and duties of institution |
11 | presidents. |
12 | The General Assembly of the Commonwealth of Pennsylvania |
13 | hereby enacts as follows: |
14 | Section 1. The act of March 10, 1949 (P.L.30, No.14), known |
15 | as the Public School Code of 1949, is amended by adding a |
16 | section to read: |
17 | Section 118. Adjustments Based on Consumer Price Index.--(a) |
18 | (1) Annually, beginning with the year in which this subsection |
19 | becomes applicable to contracts and purchases, the Department of |
20 | Labor and Industry shall calculate the percentage change in the |
21 | Consumer Price Index for All Urban Consumers (CPI-U) for the |
22 | United States city average for all items as published by the |
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1 | United States Department of Labor, Bureau of Labor Statistics, |
2 | for the twelve-month average ending in September of the prior |
3 | year. |
4 | (2) The amounts at which competitive bidding or written or |
5 | telephonic price quotations are required under this act shall be |
6 | adjusted annually as follows: |
7 | (i) In the case of competitive bidding, the positive |
8 | percentage change, as determined in accordance with clause (1), |
9 | shall be multiplied by the amount applicable under the provision |
10 | requiring competitive bidding for the current year and the |
11 | product thereof shall be added to the amount applicable under |
12 | the provision requiring competitive bidding for the current |
13 | year, with the result rounded to the nearest multiple of ten |
14 | dollars ($10). |
15 | (ii) In the case of written or telephonic price quotations, |
16 | the positive percentage change, as determined in accordance with |
17 | clause (1), shall be multiplied by the amount applicable under |
18 | the provision requiring written or telephonic price quotations |
19 | for the current year and the product thereof shall be added to |
20 | the amount applicable under the provision requiring written or |
21 | telephonic price quotations for the current year, with the |
22 | result rounded to the nearest multiple of ten dollars ($10). |
23 | (3) The annual determination required under clause (1) and |
24 | the calculation of the adjustments required under clause (2) |
25 | shall be made in the period between October 1 and November 15 of |
26 | the year following the effective date of this subsection, and |
27 | annually between October 1 and November 15 of each successive |
28 | year. |
29 | (4) The adjusted amounts obtained in accordance with clause |
30 | (2) shall become effective January 1 for the calendar year |
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1 | following the year in which the determination required under |
2 | clause (1) is made. |
3 | (5) The Department of Labor and Industry shall give notice |
4 | in the Pennsylvania Bulletin prior to January 1 of each calendar |
5 | year of the annual percentage change determined in accordance |
6 | with clause (1) and the amounts, whether adjusted or unadjusted |
7 | in accordance with clause (2), at which competitive bidding or |
8 | written or telephonic price quotations are required for the |
9 | calendar year beginning the first day of January after |
10 | publication of the notice. |
11 | Section 2. Sections 751(a), (a.1), (b) and (f) and 807.1 of |
12 | the act, amended or added May 4, 1990 (P.L.164, No.38), are |
13 | amended to read: |
14 | Section 751. Work to be Done Under Contract Let on Bids; |
15 | Exception.--(a) All construction, reconstruction, repairs, |
16 | maintenance or work of any nature, including the introduction of |
17 | plumbing, heating and ventilating, or lighting systems, upon any |
18 | school building or upon any school property, or upon any |
19 | building or portion of a building leased under the provisions of |
20 | section 703.1, made by any school district, where the entire |
21 | cost, value, or amount of such construction, reconstruction, |
22 | repairs, maintenance or work, including labor and material, |
23 | shall exceed [ten thousand dollars ($10,000)] fifty thousand |
24 | dollars ($50,000), subject to annual adjustment under section |
25 | 118, shall be done under separate contracts to be entered into |
26 | by such school district with the lowest responsible bidder, upon |
27 | proper terms, after due public notice has been given asking for |
28 | competitive bids. Whenever a board of school directors shall |
29 | approve the use of a prefabricated unit, complete in itself, for |
30 | a school building or other proper structure to be erected upon |
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1 | school property, the board of school directors may have prepared |
2 | appropriate specifications detailing the size and material |
3 | desired in a particular prefabricated unit, including all |
4 | utilities such as plumbing, heating and ventilating, and |
5 | electrical work, and may advertise for a single bid on all the |
6 | work and award the contract therefor to the lowest responsible |
7 | bidder: Provided, That if due to an emergency a school plant or |
8 | any part thereof becomes unusable competitive bids for repairs |
9 | or replacement may be solicited from at least three responsible |
10 | bidders, and upon the approval of any of these bids by the |
11 | Secretary of Education, the board of school directors may |
12 | proceed at once to make the necessary repairs or replacements in |
13 | accordance with the terms of said approved bid or bids. |
14 | (a.1) Written or telephonic price quotations from at least |
15 | three qualified and responsible contractors shall be requested |
16 | by the board of school directors for all contracts that exceed |
17 | [four thousand dollars ($4,000)] twenty thousand dollars |
18 | ($20,000), subject to annual adjustment under section 118, but |
19 | are less than the amount requiring advertisement and competitive |
20 | bidding, or, in lieu of price quotations, a memorandum shall be |
21 | kept on file showing that fewer than three qualified contractors |
22 | exist in the market area within which it is practicable to |
23 | obtain quotations. A written record of telephonic price |
24 | quotations shall be made and shall contain at least the date of |
25 | the quotation, the name of the contractor and the contractor's |
26 | representative, the construction, reconstruction, repair, |
27 | maintenance or work which was the subject of the quotation and |
28 | the price. Written price quotations, written records of |
29 | telephonic price quotations and memoranda shall be retained for |
30 | a period of three years. |
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1 | (b) The board of school directors in any school district may |
2 | perform any construction, reconstruction, repairs, or work of |
3 | any nature, where the entire cost or value, including labor and |
4 | material, is less than [five thousand dollars ($5000)] twenty |
5 | thousand dollars ($20,000), subject to annual adjustment under |
6 | section 118, by its own maintenance personnel. The board of |
7 | school directors in any school district may authorize the |
8 | secretary of the board or other executive to award contracts for |
9 | construction, reconstruction, repairs, or work of any nature, |
10 | where the entire cost or value, including labor and material, |
11 | [is ten thousand dollars ($10,000)] subject to annual adjustment |
12 | under section 118, is fifty thousand dollars ($50,000) or less, |
13 | without soliciting competitive bids, subject, however, to the |
14 | provisions of subsection (a.1). |
15 | * * * |
16 | (f) No board of school directors shall evade the provisions |
17 | of this section as to advertising for bids or purchasing |
18 | materials or contracting for services piecemeal for the purpose |
19 | of obtaining prices under [ten thousand dollars ($10,000)] fifty |
20 | thousand dollars ($50,000), subject to annual adjustment under |
21 | section 118, upon transactions which should, in the exercise of |
22 | reasonable discretion and prudence, be conducted as one |
23 | transaction amounting to more than [ten thousand dollars |
24 | ($10,000)] fifty thousand dollars ($50,000), subject to annual |
25 | adjustment under section 118. This provision is intended to make |
26 | unlawful the practice of evading advertising requirements by |
27 | making a series of purchases or contracts each for less than the |
28 | advertising requirement price, or by making several simultaneous |
29 | purchases or contracts each below said price, when in either |
30 | case the transaction involved should have been made as one |
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1 | transaction for one price. |
2 | Section 807.1. Purchase of Supplies.--(a) All furniture, |
3 | equipment, textbooks, school supplies and other appliances for |
4 | the use of the public schools, costing [ten thousand dollars |
5 | ($10,000)], subject to annual adjustment under section 118, |
6 | fifty thousand dollars ($50,000) or more shall be purchased by |
7 | the board of school directors only after due advertisement as |
8 | hereinafter provided. Supplies, subject to annual adjustment |
9 | under section 118, costing [ten thousand dollars ($10,000)] |
10 | fifty thousand dollars ($50,000) or more shall be purchased by |
11 | the board of school directors only after public notice has been |
12 | given by advertisement once a week for three (3) weeks in not |
13 | less than two (2) newspapers of general circulation. In any |
14 | district where no newspaper is published, said notice may, in |
15 | lieu of such publication, be posted in at least five (5) public |
16 | places. |
17 | (a.1) Written or telephonic price quotations from at least |
18 | three qualified and responsible vendors shall be requested by |
19 | the board of school directors for all purchases of supplies that |
20 | exceed [four thousand dollars ($4,000)] twenty thousand dollars |
21 | ($20,000), subject to annual adjustment under section 118, but |
22 | are less than the amount requiring advertisement and competitive |
23 | bidding, or, in lieu of price quotations, a memorandum shall be |
24 | kept on file showing that fewer than three qualified vendors |
25 | exist in the market area within which it is practicable to |
26 | obtain quotations. A written record of telephonic price |
27 | quotations shall be made and shall contain at least the date of |
28 | the quotation, the name of the vendor and the vendor's |
29 | representative, the supplies which were the subject of the |
30 | quotation and the price of the supplies. Written price |
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1 | quotations, written records of telephonic price quotations and |
2 | memoranda shall be retained for a period of three years. |
3 | (b) The board of school directors shall accept the bid of |
4 | the lowest responsible bidder, kind, quality, and material being |
5 | equal, but shall have the right to reject any and all bids, or |
6 | select a single item from any bid. The board of school directors |
7 | in any district may authorize or appoint the secretary of the |
8 | board or other executive as purchasing agent for the district, |
9 | with authority to purchase supplies costing less than [ten |
10 | thousand dollars ($10,000)] fifty thousand dollars ($50,000), |
11 | subject to annual adjustment under section 118. |
12 | (c) The following shall be exempt from the above provisions: |
13 | maps, music, globes, charts, educational films, filmstrips, |
14 | prepared transparencies and slides, pre-recorded magnetic tapes |
15 | and disc recordings, textbooks, games, toys, prepared kits, |
16 | flannel board materials, flash cards, models, projectuals and |
17 | teacher demonstration devices necessary for school use. |
18 | (d) No board of school directors shall evade the provisions |
19 | of this section as to advertising for bids or purchasing |
20 | materials piecemeal for the purpose of obtaining prices under |
21 | [ten thousand dollars ($10,000)] fifty thousand dollars |
22 | ($50,000), subject to annual adjustment under section 118, upon |
23 | transactions which should, in the exercise of reasonable |
24 | discretion and prudence, be conducted as one transaction |
25 | amounting to more than [ten thousand dollars ($10,000)] fifty |
26 | thousand dollars ($50,000), subject to annual adjustment under |
27 | section 118. This provision is intended to make unlawful the |
28 | practice of evading advertising requirements by making a series |
29 | of purchases or contracts each for less than the advertising |
30 | requirement price, or by making several simultaneous purchases |
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1 | or contracts each below said price, when in either case the |
2 | transaction involved should have been made as one transaction |
3 | for one price. |
4 | Section 3. Section 1913-B.1(c) of the act, added December 9, |
5 | 2002 (P.L.1472, No.187), is amended to read: |
6 | Section 1913-B.1. Contracts for Construction, Repair, |
7 | Renovation or Maintenance.--* * * |
8 | (c) All contracts, other than contracts for the retention of |
9 | architects and engineers, authorized by this section which |
10 | exceed [ten thousand dollars ($10,000) or any larger amount as |
11 | otherwise provided for in 62 Pa.C.S. (relating to procurement)] |
12 | fifty thousand dollars ($50,000), subject to annual adjustment |
13 | under section 118, shall be advertised in the manner provided by |
14 | law and competitively bid and awarded to the lowest responsible |
15 | bidder. In case of emergencies and notwithstanding any other |
16 | provision of this section to the contrary, the board of trustees |
17 | may make or authorize others to make an emergency procurement |
18 | whenever a threat exists to public health, welfare or safety or |
19 | circumstances outside the control of the college and creates an |
20 | urgency of need which does not permit the delay involved in |
21 | using more formal competitive methods. Whenever practical, in |
22 | the case of a procurement of a supply, at least two (2) bids |
23 | shall be solicited. A written determination of the basis for the |
24 | emergency and for the selection of the particular contractor |
25 | shall be included in the contract file. |
26 | * * * |
27 | Section 4. Sections 2003-A.1(c) and 2010-A(10) of the act, |
28 | amended April 27, 1998 (P.L.270, No.46), are amended to read: |
29 | Section 2003-A.1. Project Contracts.--* * * |
30 | (c) All contracts, other than contracts for the retention of |
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1 | architects and engineers, authorized by this section which |
2 | exceed [ten thousand dollars ($10,000)] fifty thousand dollars |
3 | ($50,000), subject to annual adjustment under section 118, shall |
4 | be advertised in the manner provided by law and competitively |
5 | bid and awarded to the lowest responsible bidder. In case of |
6 | emergencies and notwithstanding any other provision of this |
7 | section to the contrary, the chancellor may make or authorize |
8 | others to make an emergency procurement whenever a threat exists |
9 | to public health, welfare or safety or circumstances outside the |
10 | control of the State system and creates an urgency of need which |
11 | does not permit the delay involved in using more formal |
12 | competitive methods. Whenever practical, in the case of a |
13 | procurement of a supply, at least two (2) bids shall be |
14 | solicited. A written determination of the basis for the |
15 | emergency and for the selection of the particular contractor |
16 | shall be included in the contract file. |
17 | * * * |
18 | Section 2010-A. Power and Duties of Institution |
19 | Presidents.--The president of each institution shall be |
20 | appointed by the board. The president shall be the chief |
21 | executive officer of that institution. He shall have the right |
22 | to attend all meetings of the council of that institution and |
23 | shall have the right to speak on all matters before the council |
24 | but not to vote. Subject to the stated authority of the board |
25 | and the council, each president shall have the following powers |
26 | and duties: |
27 | * * * |
28 | (10) Within the limitations of the operating budget and |
29 | other available funds in accordance with the procedures |
30 | established by the board and with the approval of the local |
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1 | council, to negotiate and award all contracts for equipment, |
2 | services and supplies in excess of a cost of [ten thousand |
3 | dollars ($10,000)] fifty thousand dollars ($50,000), subject to |
4 | annual adjustment under section 118, on a competitive bid basis |
5 | and to purchase instructional, educational, extracurricular, |
6 | technical, administrative, custodial and maintenance equipment |
7 | and supplies not in excess of a cost of [ten thousand dollars |
8 | ($10,000)] fifty thousand dollars ($50,000), subject to annual |
9 | adjustment under section 118, without competitive bidding, |
10 | except that such items shall not be bought in series to avoid |
11 | the dollar ceiling. |
12 | * * * |
13 | Section 5. This act shall apply to contracts and purchases |
14 | advertised on or after January 1 of the year following the |
15 | effective date of this section. |
16 | Section 6. This act shall take effect in 60 days. |
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