Bill Text: PA HB286 | 2011-2012 | Regular Session | Amended

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Bill Title: Increasing the amount of purchases that may be made subject to certain conditions.

Sponsorship: Partisan Bill (Republican 77-1)

Status: (Engrossed - Dead) 2011-09-28 - Re-referred to APPROPRIATIONS [HB286 Detail]

Download: Pennsylvania-2011-HB286-Amended.html

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SENATE AMENDED
PRIOR PRINTER'S NOS. 239, 1432 PRINTER'S NO. 2425
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 286 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
SENATOR EICHELBERGER, LOCAL GOVERNMENT, IN SENATE, AS AMENDED, SEPTEMBER 27, 2011
AN ACT
Amending the act of April 29, 1937 (P.L.526, No.118), entitled,
as reenacted and amended, "An act providing for and
regulating joint purchases by counties (other than counties
of the first class), cities of the second and third class,
boroughs, towns, townships, school districts, institution
districts, and poor districts," increasing the amount of
purchases that may be made subject to certain conditions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2 of the act of April 29, 1937 (P.L.526, <--
No.118), referred to as the Political Subdivision Joint
Purchases Law, reenacted and amended July 28, 1941 (P.L.544,
No.224) and amended July 10, 1990 (P.L.398, No.95), is amended
to read:
Section 2. (a) All such purchases involving the expenditure
of over [ten thousand dollars ($10,000)] the base amount of
twenty-five thousand dollars ($25,000) subject to annual
adjustment under subsection (b.1) shall be in writing, and shall
be made only after notice, by one of the political subdivisions
joining therein, once a week for two weeks in one or more
newspapers of general circulation published in the political
subdivision advertising the same. All plans and specifications
shall be placed on file by each of the political subdivisions
joining in such purchase at least fifteen days in advance of
opening 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 ($4,000)]
the base amount of ten thousand dollars ($10,000) subject to
annual adjustment under subsection (b.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 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.
(b.1) Adjustments to the base amounts specified under
subsections (a) and (b) shall be made as follows:
(1) The Department of Labor and Industry shall determine the
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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 subsection 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
occur for the relevant time period provided for in this
subsection.
(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 ($1,000), to determine the
final adjusted base amounts for purposes of subsections (a) and
(b).
(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 ($1,000) to determine the new final
adjusted base amounts for purposes of subsections (a) and (b).
(5) The determinations and adjustments required under this
subsection shall be made in the period between October 1 and
20110HB0286PN2425 - 3 -
November 15 of the year following the effective date of this
subsection, 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
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) at which competitive bidding is required
under subsection (a) and written or telephonic price quotations
are required under subsection (b), respectively, 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 subsection for the ensuing calendar
year.
(c) No county or municipal government shall 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)] the base amount of twenty-five thousand dollars
($25,000) subject to annual adjustment under subsection (b.1)
upon transactions which should, in the exercise of reasonable
discretion and prudence, be conducted as one transaction
amounting to more than [ten thousand dollars ($10,000)] the base
amount of twenty-five thousand dollars ($25,000) subject to
20110HB0286PN2425 - 4 -
annual adjustment under subsection (b.1). 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.
(d) Any member of a governing body of a county or
municipality who votes to unlawfully evade the provisions of
this section 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.
(e) Every contract for the construction, reconstruction,
alteration, repair, improvement or maintenance of public works
shall comply with the provisions of the act of March 3, 1978
(P.L.6, No.3), known as the "Steel Products Procurement Act."
Section 2. 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 3. This act shall take effect immediately.
Section 1. Section 2 of the act of April 29, 1937 (P.L.526, <--
No.118), referred to as the Political Subdivision Joint
Purchases Law, reenacted and amended July 28, 1941 (P.L.544, No.
224) and amended July 10, 1990 (P.L.398, No.95), is amended to
read:
Section 2. (a) All such purchases involving the expenditure
of over [ten thousand dollars ($10,000)] the base amount of
eighteen thousand five hundred dollars ($18,500) subject to
20110HB0286PN2425 - 5 -
adjustment under subsection (b.1) shall be in writing, and shall
be made only after notice, by one of the political subdivisions
joining therein, once a week for two weeks in one or more
newspapers of general circulation published in the political
subdivision advertising the same. All plans and specifications
shall be placed on file by each of the political subdivisions
joining in such purchase at least fifteen days in advance of
opening 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 ($4,000)]
the base amount of ten thousand dollars ($10,000) subject to
adjustment under subsection (b.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
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.
(b.1) Adjustments to the base amounts specified under
subsections (a) and (b) 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
20110HB0286PN2425 - 6 -
Labor Statistics for the twelve-month period ending September
30, 2012, 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
occur for the relevant time period provided for in this
subsection.
(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 hundred dollars ($100), to determine the final
adjusted base amounts for purposes of subsections (a) and (b).
(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 preliminary adjusted amount of the prior
year to calculate the preliminary adjusted amounts for the
current year. The sums thereof shall be rounded to the nearest
one hundred dollars ($100) to determine the new final adjusted
base amounts for purposes of subsections (a) and (b).
(5) The determinations and adjustments required under this
subsection shall be made in the period between October 1 and
November 15 of the year following the effective date of this
subsection, and annually between October 1 and November 15 of
each year thereafter.
20110HB0286PN2425 - 7 -
(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
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) at which competitive bidding is required
under subsection (a) and written or telephonic price quotations
are required under subsection (b), respectively, 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 subsection for the ensuing calendar
year.
(8) The annual increase in the preliminary adjusted base
amounts obtained under paragraphs (3) and (4) shall not exceed
three percent.
(c) No county or municipal government shall 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)] the base amount of eighteen thousand five hundred
dollars ($18,500) subject to adjustment under subsection (b.1)
upon transactions which should, in the exercise of reasonable
discretion and prudence, be conducted as one transaction
amounting to more than [ten thousand dollars ($10,000)] the base
amount of eighteen thousand five hundred dollars ($18,500)
20110HB0286PN2425 - 8 -
subject to adjustment under subsection (b.1). 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.
(d) Any member of a governing body of a county or
municipality who votes to unlawfully evade the provisions of
this section 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.
(e) Every contract for the construction, reconstruction,
alteration, repair, improvement or maintenance of public works
shall comply with the provisions of the act of March 3, 1978
(P.L.6, No.3), known as the "Steel Products Procurement Act."
Section 2. 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 3. This act shall take effect immediately.
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