| |
|
| |
| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
| |
| HOUSE BILL |
|
| |
| |
| INTRODUCED BY M. K. KELLER, APRIL 25, 2012 |
| |
| |
| REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, APRIL 25, 2012 |
| |
| |
| |
| AN ACT |
| |
1 | Amending the act of act of July 29, 1953 (P.L.1034, No.270), |
2 | entitled "An act creating as bodies corporate and politic |
3 | 'Public Auditorium Authorities' in counties of the second |
4 | class and in cities of the second class and in cities of the |
5 | second class A and counties in which a city of the second |
6 | class A is located, singly or jointly; prescribing the |
7 | rights, powers and duties of such Authorities; authorizing |
8 | such Authorities to acquire, construct, improve, maintain and |
9 | operate public auditoriums; to borrow money and issue bonds |
10 | therefor; providing for the payment of such bonds and |
11 | prescribing the rights of the holders thereof; conferring the |
12 | right of eminent domain on such Authorities; empowering such |
13 | Authorities to enter into contracts, leases and licenses with |
14 | and to accept grants from private sources, the Federal |
15 | Government, State, political subdivisions of the State or any |
16 | agency thereof; authorizing the making of said grants from |
17 | bond funds or current revenues; authorizing Authorities to |
18 | collect rentals, admissions, license fees for the use of the |
19 | project; exempting the property and securities of such Public |
20 | Auditorium Authorities from taxation," further providing for |
21 | competition in award of contracts. |
22 | The General Assembly of the Commonwealth of Pennsylvania |
23 | hereby enacts as follows: |
24 | Section 1. Section 11 of the act of July 29, 1953 (P.L.1034, |
25 | No.270), known as the Public Auditorium Authorities Law, amended |
26 | November 3, 2011 (P.L.353, No.87), is amended to read: |
27 | Section 11. Competition in Award of Contracts. |
28 | A. All construction, reconstruction, repairs or work of any |
|
1 | nature made by any Authority, where the entire cost, value or |
2 | amount of such construction, reconstruction, repairs or work, |
3 | including labor and materials, shall exceed the base amount of |
4 | [eighteen thousand five hundred dollars ($18,500)] $18,500, |
5 | subject to adjustment under subsection [I] J, except |
6 | construction, reconstruction, repairs or work done by employes |
7 | of said Authority or by labor supplied under agreement with any |
8 | Federal or State agency with supplies and materials purchased, |
9 | as hereinafter provided, shall be done only under contract or |
10 | contracts to be entered into by the Authority with the lowest |
11 | responsible bidder upon proper terms, after due public notice |
12 | has been given asking for competitive bids hereinafter provided. |
13 | No contract shall be entered into for construction or |
14 | improvement or repair of any project or portion thereof unless |
15 | the contractor shall give an undertaking, with a sufficient |
16 | surety or sureties approved by the Authority and in an amount |
17 | fixed by the Authority, for the faithful performance of the |
18 | contract. All such contracts shall provide, among other things, |
19 | that the person or corporation entering into such contract with |
20 | the Authority will pay for all materials furnished and services |
21 | rendered for the performance of the contract and that any person |
22 | or corporation furnishing such materials or rendering such |
23 | services may maintain an action to recover for the same against |
24 | the obligor in the undertaking as though such person or |
25 | corporation was named therein, provided the action is brought |
26 | within one year after the time the cause of action accrued. |
27 | Nothing in this section shall be construed to limit the power of |
28 | the Authority to construct, repair or improve any project or |
29 | portion thereof or any addition, betterment or extension thereto |
30 | directly by the officers, agents and employes of the Authority |
|
1 | or otherwise than by contract. |
2 | B. All supplies and materials costing, subject to adjustment |
3 | under subsection [I] J, in excess of the base amount of |
4 | [eighteen thousand five hundred dollars ($18,500)] $18,500 or |
5 | more shall be purchased only after due advertisement as |
6 | hereinafter provided. The Authority shall accept the lowest bid |
7 | or bids, kinds, quality and material being equal, but the |
8 | Authority shall have the right to reject any or all bids or |
9 | select a single item from any bid. The provisions as to bidding |
10 | shall not apply to the purchase of patented and manufactured |
11 | products offered for sale in a non-competitive market or solely |
12 | by a manufacturer's authorized dealer. |
13 | B.1. Written or telephonic price quotations from at least |
14 | three (3) qualified and responsible contractors shall be |
15 | requested for all contracts that exceed the base amount of [ten |
16 | thousand dollars ($10,000)] $10,000, subject to adjustment under |
17 | subsection [I] J, but are less than the amount requiring |
18 | advertisement and competitive bidding or, in lieu of price |
19 | quotations, a memorandum shall be kept on file showing that |
20 | fewer than three (3) qualified contractors exist in the market |
21 | area within which it is practicable to obtain quotations. A |
22 | written record of telephonic price quotations shall be made and |
23 | shall contain at least the date of the quotation, the name of |
24 | the contractor and the contractor's representative, the |
25 | construction, reconstruction, repair, maintenance or work which |
26 | was the subject of the quotation and the price. Written price |
27 | quotations, written records of telephonic price quotations and |
28 | memoranda shall be retained for a period of three (3) years. |
29 | C. The terms, advertisement or due public notice, wherever |
30 | used in this section, shall mean a notice published at least ten |
|
1 | (10) days before the award on any contract in a newspaper of |
2 | general circulation published in the municipality where the |
3 | Authority has its principal office, and if no newspaper is |
4 | published therein then by publication in a newspaper in the |
5 | county where the Authority has its principal office: Provided, |
6 | That such notice may be waived where the Authority determines an |
7 | emergency exists and such supplies and materials must be |
8 | immediately purchased by the said Authority. |
9 | D. No member of the Authority or officer or employe thereof |
10 | shall, either directly or indirectly, be a party to or be in any |
11 | manner interested in any contract or agreement with the |
12 | Authority for any matter, cause or thing whatsoever, by reason |
13 | whereof any liability or indebtedness shall in any way be |
14 | created against such Authority. If any contract or agreement |
15 | shall be made in violation of the provision of this section, the |
16 | same shall be null and void and no action shall be maintained |
17 | thereon against such Authority. |
18 | E. Subject to the aforesaid, any Authority may (but without |
19 | intending by this provision to limit any powers of such |
20 | Authority) enter into and carry out such contracts or establish |
21 | or comply with such rules and regulations concerning labor and |
22 | materials and other related matters, in connection with any |
23 | project or portion thereof, as the Authority may deem desirable, |
24 | or as may be requested by any Federal agency that may assist in |
25 | the financing of such project or any part thereof: Provided, |
26 | however, That the provisions of this section shall not apply to |
27 | any case in which the Authority has taken over by transfer or |
28 | assignment any contract authorized to be assigned to it under |
29 | the provisions of section ten of this act, nor to any contract |
30 | in connection with the construction of any project which the |
|
1 | Authority may have had transferred to it by any person or |
2 | private corporation. |
3 | F. Every contract for the construction, reconstruction, |
4 | alteration, repair, improvement or maintenance of public works |
5 | shall comply with the provisions of the act of March 3, 1978 |
6 | (P.L.6, No.3), known as the "Steel Products Procurement Act." |
7 | G. An Authority shall not evade the provisions of this |
8 | section as to advertising for bids or purchasing materials or |
9 | contracting for services piecemeal for the purpose of obtaining |
10 | prices under the base amount of [eighteen thousand five hundred |
11 | dollars ($18,500)] $18,500, subject to adjustment under |
12 | subsection [I] J, upon transactions which should, in the |
13 | exercise of reasonable discretion and prudence, be conducted as |
14 | one transaction amounting to more than the base amount of |
15 | [eighteen thousand five hundred dollars ($18,500)] $18,500, |
16 | subject to adjustment under subsection [I] J. This provision is |
17 | intended to make unlawful the practice of evading advertising |
18 | requirements by making a series of purchases or contracts each |
19 | for less than the advertising requirement price or by making |
20 | several simultaneous purchases or contracts each below said |
21 | price, when in either case the transaction involved should have |
22 | been made as one transaction for one price. |
23 | H. Any member of the Authority who votes to unlawfully evade |
24 | the provisions of this section and who knows that the |
25 | transaction upon which he so votes is or ought to be a part of a |
26 | larger transaction and that it is being divided in order to |
27 | evade the requirements as to advertising for bids commits a |
28 | misdemeanor of the third degree for each contract entered into |
29 | as a direct result of that vote. |
30 | [I. Adjustments to the base amounts specified under |
|
1 | subsections A, B, B.1 and G shall be made as follows: |
2 | (1) The Department of Labor and Industry shall determine the |
3 | percentage change in the Consumer Price Index for All Urban |
4 | Consumers: All Items (CPI-U) for the United States City Average |
5 | as published by the United States Department of Labor, Bureau of |
6 | Labor Statistics, for the twelve-month period ending September |
7 | 30, 2012, and for each successive twelve-month period |
8 | thereafter. |
9 | (2) If the department determines that there is no positive |
10 | percentage change, then no adjustment to the base amounts shall |
11 | occur for the relevant time period provided for in this |
12 | subsection. |
13 | (3) (i) If the department determines that there is a |
14 | positive percentage change in the first year that the |
15 | determination is made under paragraph (1), the positive |
16 | percentage change shall be multiplied by each base amount, and |
17 | the products shall be added to the base amounts, respectively, |
18 | and the sums shall be preliminary adjusted amounts. |
19 | (ii) The preliminary adjusted amounts shall be rounded to |
20 | the nearest one hundred dollars ($100) to determine the final |
21 | adjusted base amounts for purposes of subsections A, B, B.1 and |
22 | G. |
23 | (4) In each successive year in which there is a positive |
24 | percentage change in the CPI-U for the United States City |
25 | Average, the positive percentage change shall be multiplied by |
26 | the most recent preliminary adjusted amounts, and the products |
27 | shall be added to the preliminary adjusted amount of the prior |
28 | year to calculate the preliminary adjusted amounts for the |
29 | current year. The sums thereof shall be rounded to the nearest |
30 | one hundred dollars ($100) to determine the new final adjusted |
|
1 | base amounts for purposes of subsections A, B, B.1 and G. |
2 | (5) The determinations and adjustments required under this |
3 | subsection shall be made in the period between October 1 and |
4 | November 15 of the year following the effective date of this |
5 | subsection and annually between October 1 and November 15 of |
6 | each year thereafter. |
7 | (6) The final adjusted base amounts and new final adjusted |
8 | base amounts obtained under paragraphs (3) and (4) shall become |
9 | effective January 1 for the calendar year following the year in |
10 | which the determination required under paragraph (1) is made. |
11 | (7) The department shall publish notice in the Pennsylvania |
12 | Bulletin prior to January 1 of each calendar year of the annual |
13 | percentage change determined under paragraph (1) and the |
14 | unadjusted or final adjusted base amounts determined under |
15 | paragraphs (3) and (4) at which competitive bidding is required |
16 | under subsections A, B and G and written or telephonic price |
17 | quotations are required under subsection B.1, respectively, for |
18 | the calendar year beginning the first day of January after |
19 | publication of the notice. The notice shall include a written |
20 | and illustrative explanation of the calculations performed by |
21 | the department in establishing the unadjusted or final adjusted |
22 | base amounts under this subsection for the ensuing calendar |
23 | year. |
24 | (8) The annual increase in the preliminary adjusted base |
25 | amounts obtained under paragraphs (3) and (4) shall not exceed |
26 | three per centum.] |
27 | J. Adjustments to the base amounts specified under |
28 | subsections A, B, B.1 and G shall be made as follows: |
29 | (1) The Department of Labor and Industry shall determine the |
30 | percentage change in the Consumer Price Index for All Urban |
|
1 | Consumers: All Items (CPI-U) for the United States City Average |
2 | as published by the United States Department of Labor, Bureau of |
3 | Labor Statistics, for the twelve-month period ending September |
4 | 30, 2012, and for each successive twelve-month period |
5 | thereafter. |
6 | (2) If the department determines that there is no positive |
7 | percentage change, then no adjustment to the base amounts shall |
8 | occur for the relevant time period provided for in this |
9 | subsection. |
10 | (3) (i) If the department determines that there is a |
11 | positive percentage change in the first year that the |
12 | determination is made under paragraph (1), the positive |
13 | percentage change shall be multiplied by each base amount, and |
14 | the products shall be added to the base amounts, respectively, |
15 | and the sums shall be preliminary adjusted amounts. |
16 | (ii) The preliminary adjusted amounts shall be rounded to |
17 | the nearest $100 to determine the final adjusted base amounts |
18 | for purposes of subsections A, B, B.1 and G. |
19 | (4) In each successive year in which there is a positive |
20 | percentage change in the CPI-U for the United States City |
21 | Average, the positive percentage change shall be multiplied by |
22 | the most recent preliminary adjusted amounts, and the products |
23 | shall be added to the preliminary adjusted amount of the prior |
24 | year to calculate the preliminary adjusted amounts for the |
25 | current year. The sums thereof shall be rounded to the nearest |
26 | $100 to determine the new final adjusted base amounts for |
27 | purposes of subsections A, B, B.1 and G. |
28 | (5) The determinations and adjustments required under this |
29 | subsection shall be made in the period between October 1 and |
30 | November 15, 2012, and annually between October 1 and November |
|
1 | 15 of each year thereafter. |
2 | (6) The final adjusted base amounts and new final adjusted |
3 | base amounts obtained under paragraphs (3) and (4) shall become |
4 | effective January 1 for the calendar year following the year in |
5 | which the determination required under paragraph (1) is made. |
6 | (7) The department shall publish notice in the Pennsylvania |
7 | Bulletin prior to January 1 of each calendar year of the annual |
8 | percentage change determined under paragraph (1) and the |
9 | unadjusted or final adjusted base amounts determined under |
10 | paragraphs (3) and (4) at which competitive bidding is required |
11 | under subsections A, B and G and written or telephonic price |
12 | quotations are required under subsection B.1, respectively, for |
13 | the calendar year beginning the first day of January after |
14 | publication of the notice. The notice shall include a written |
15 | and illustrative explanation of the calculations performed by |
16 | the department in establishing the unadjusted or final adjusted |
17 | base amounts under this subsection for the ensuing calendar |
18 | year. |
19 | (8) The annual increase in the preliminary adjusted base |
20 | amounts obtained under paragraphs (3) and (4) shall not exceed |
21 | three per centum. |
22 | Section 2. Notwithstanding the provisions of section 2 of |
23 | the act of November 3, 2011 (P.L.353, NO.87), entitled "An act |
24 | amending the act of July 29, 1953 (P.L.1034, No.270), entitled, |
25 | as amended, 'An act creating as bodies corporate and politic |
26 | "Public Auditorium Authorities" in counties of the second class |
27 | and in cities of the second class and in cities of the second |
28 | class A and counties in which a city of the second class A is |
29 | located, singly or jointly; prescribing the rights, powers and |
30 | duties of such Authorities; authorizing such Authorities to |
|
1 | acquire, construct, improve, maintain and operate public |
2 | auditoriums; to borrow money and issue bonds therefor; providing |
3 | for the payment of such bonds and prescribing the rights of the |
4 | holders thereof; conferring the right of eminent domain on such |
5 | Authorities; empowering such Authorities to enter into |
6 | contracts, leases and licenses with and to accept grants from |
7 | private sources, the Federal Government, State, political |
8 | subdivisions of the State or any agency thereof; authorizing the |
9 | making of said grants from bond funds or current revenues; |
10 | authorizing Authorities to collect rentals, admissions, license |
11 | fees for the use of the project; exempting the property and |
12 | securities of such Public Auditorium Authorities from taxation,' |
13 | increasing the dollar amount of supplies and materials which may |
14 | be purchased without advertising," the base amount of $18,500 |
15 | specified in section 11A, B, B.1 and G of the act shall apply to |
16 | contracts and purchases advertised on or after the effective |
17 | date of this section. |
18 | Section 3. This act shall take effect immediately. |
|
