Bill Text: PA HB289 | 2011-2012 | Regular Session | Amended

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Bill Title: Amending the act of August 6, 1936 (Sp.Sess., P.L.95, No.38 1/2), entitled "An act to authorize and empower cities, boroughs, towns, and townships, separately or jointly, to provide for protection against floods by erecting and constructing certain works and improvements, located within or without their territorial limits, and within or without the county in which situate; and to expend moneys and incur indebtedness; to assess benefits against property benefited; to issue improvement bonds imposing no municipal liability; and to acquire, take, injure or destroy property for such purposes," further providing for competitive bidding of contracts.

Spectrum: Partisan Bill (Republican 77-1)

Status: (Passed) 2011-11-03 - Act No. 88 [HB289 Detail]

Download: Pennsylvania-2011-HB289-Amended.html

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SENATE AMENDED
PRIOR PRINTER'S NOS. 242, 1435 PRINTER'S NO. 2429
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 289 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 August 6, 1936 (Sp.Sess., P.L.95, No.38
1/2), entitled "An act to authorize and empower cities,
boroughs, towns, and townships, separately or jointly, to
provide for protection against floods by erecting and
constructing certain works and improvements, located within
or without their territorial limits, and within or without
the county in which situate; and to expend moneys and incur
indebtedness; to assess benefits against property benefited;
to issue improvement bonds imposing no municipal liability;
and to acquire, take, injure or destroy property for such
purposes," further providing for competitive bidding of
contracts.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 3 of the act of August 6, 1936 (Sp.Sess., <--
P.L.95, No.38 1/2), entitled "An act to authorize and empower
cities, boroughs, towns, and townships, separately or jointly,
to provide for protection against floods by erecting and
constructing certain works and improvements, located within or
without their territorial limits, and within or without the
county in which situate; and to expend moneys and incur
indebtedness; to assess benefits against property benefited; to
issue improvement bonds imposing no municipal liability; and to
acquire, take, injure or destroy property for such purposes,"
amended July 10, 1990 (P.L.402, No.97), is amended to read:
Section 3. (a) No such works or improvements, involving an
expenditure by any municipality or municipalities of more than
[ten thousand dollars ($10,000)] the base amount of twenty-five
thousand dollars ($25,000), subject to adjustment under
subsection (b.1), shall be erected, constructed or provided,
except by contract let to the lowest responsible bidder after
due advertisement, once a week for two successive weeks in at
least one newspaper of general circulation: Provided, however,
That no contract shall be required to be let for the performance
of the work on any such work or improvement where the cost of
the labor shall be paid by the Federal Government, or any agency
thereof, without cost to the municipality or municipalities.
(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
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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
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
20110HB0289PN2429 - 3 -
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
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 municipality shall evade the provisions of this
20110HB0289PN2429 - 4 -
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 amount
required by this section 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 amount required by this section. 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 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. The amendment of section 3 of the act shall apply
to contracts and purchases advertised after December 31 of the
year in which this section takes effect.
Section 3. This act shall take effect immediately.
Section 1. Section 3 of the act of August 6, 1936 (Sp.Sess., <--
P.L.95, No.38 1/2), entitled "An act to authorize and empower
20110HB0289PN2429 - 5 -
cities, boroughs, towns, and townships, separately or jointly,
to provide for protection against floods by erecting and
constructing certain works and improvements, located within or
without their territorial limits, and within or without the
county in which situate; and to expend moneys and incur
indebtedness; to assess benefits against property benefited; to
issue improvement bonds imposing no municipal liability; and to
acquire, take, injure or destroy property for such purposes,"
amended July 10, 1990 (P.L.402, No.97), is amended to read:
Section 3. (a) No such works or improvements, involving
[an] expenditure by any municipality or municipalities of more
than [ten thousand dollars ($10,000)] the base amount of
eighteen thousand five hundred dollars ($18,500), subject to
adjustment under subsection (b.1), shall be erected, constructed
or provided, except by contract let to the lowest responsible
bidder after due advertisement, once a week for two successive
weeks in at least one newspaper of general circulation:
Provided, however, That no contract shall be required to be let
for the performance of the work on any such work or improvement
where the cost of the labor shall be paid by the Federal
Government, or any agency thereof, without cost to the
municipality or municipalities.
(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)]
in excess of 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
20110HB0289PN2429 - 6 -
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
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).
20110HB0289PN2429 - 7 -
(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.
(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
20110HB0289PN2429 - 8 -
year.
(8) The annual increase in the preliminary adjusted base
amounts obtained under paragraphs (3) and (4) shall not exceed
three per centum.
(c) No municipality 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 amount
required by this section 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 amount required by this section. 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 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. The amendment of section 3 of the act shall apply
20110HB0289PN2429 - 9 -
to contracts and purchases advertised after December 31 of the
year in which this section takes effect.
Section 3. This act shall take effect immediately.
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