Bill Text: PA SB332 | 2009-2010 | Regular Session | Introduced

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Bill Title: Providing for adjustments based on Consumer Price Index; and further providing for work to be done under contract let on bids and exception, for purchase of supplies, for contracts for construction, repair, renovation or maintenance, for project contracts and for powers and duties of institution presidents.

Spectrum: Moderate Partisan Bill (Republican 21-6)

Status: (Introduced - Dead) 2009-03-25 - Re-referred to APPROPRIATIONS [SB332 Detail]

Download: Pennsylvania-2009-SB332-Introduced.html

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PRINTER'S NO. 330
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 332 Session of2009
INTRODUCED BY EICHELBERGER, SCARNATI, MUSTO, ROBBINS, STOUT, FOLMER, ORIE, BAKER, SMUCKER, BROWNE, PICCOLA, BRUBAKER, CORMAN, KASUNIC, EARLL, GORDNER, PILEGGI, RAFFERTY, ERICKSON, ALLOWAY, BOSCOLA, O'PAKE, WONDERLING, M. WHITE, GREENLEAF, PIPPY AND FERLO, FEBRUARY 20, 2009
REFERRED TO EDUCATION, FEBRUARY 20, 2009
AN ACT
Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
act relating to the public school system, including certain
provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the
laws relating thereto," providing for adjustments based on
Consumer Price Index; and further providing for work to be
done under contract let on bids and exception, for purchase
of supplies, for contracts for construction, repair,
renovation or maintenance, for project contracts and for
powers and duties of institution presidents.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 10, 1949 (P.L.30, No.14), known
as the Public School Code of 1949, is amended by adding a
section to read:
Section 118. Adjustments Based on Consumer Price Index.--(a)
(1) Annually, beginning with the year in which this subsection
becomes applicable to contracts and purchases, the Department of
Labor and Industry shall calculate the percentage change in the
Consumer Price Index for All Urban Consumers (CPI-U) for the
United States city average for all items as published by the
United States Department of Labor, Bureau of Labor Statistics,
for the twelve-month average ending in September of the prior
year.
(2) The amounts at which competitive bidding or written or
telephonic price quotations are required under this act shall be
adjusted annually as follows:
(i) In the case of competitive bidding, the positive
percentage change, as determined in accordance with clause (1),
shall be multiplied by the amount applicable under the provision
requiring competitive bidding for the current year and the
product thereof shall be added to the amount applicable under
the provision requiring competitive bidding for the current
year, with the result rounded to the nearest multiple of ten
dollars ($10).
(ii) In the case of written or telephonic price quotations,
the positive percentage change, as determined in accordance with
clause (1), shall be multiplied by the amount applicable under
the provision requiring written or telephonic price quotations
for the current year and the product thereof shall be added to
the amount applicable under the provision requiring written or
telephonic price quotations for the current year, with the
result rounded to the nearest multiple of ten dollars ($10).
(3) The annual determination required under clause (1) and
the calculation of the adjustments required under clause (2)
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 successive
year.
(4) The adjusted amounts obtained in accordance with clause
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(2) shall become effective January 1 for the calendar year
following the year in which the determination required under
clause (1) is made.
(5) 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 clause (1) and the amounts, whether adjusted or unadjusted
in accordance with clause (2), at which competitive bidding or
written or telephonic price quotations are required for the
calendar year beginning the first day of January after
publication of the notice.
Section 2. Sections 751(a), (a.1), (b) and (f) and 807.1 of
the act, amended or added May 4, 1990 (P.L.164, No.38), are
amended to read:
Section 751. Work to be Done Under Contract Let on Bids;
Exception.--(a) All construction, reconstruction, repairs,
maintenance or work of any nature, including the introduction of
plumbing, heating and ventilating, or lighting systems, upon any
school building or upon any school property, or upon any
building or portion of a building leased under the provisions of
section 703.1, made by any school district, where the entire
cost, value, or amount of such construction, reconstruction,
repairs, maintenance or work, including labor and material,
shall exceed [ten thousand dollars ($10,000)] twenty-five
thousand dollars ($25,000), subject to annual adjustment under
section 118, shall be done under separate contracts to be
entered into by such school district with the lowest responsible
bidder, upon proper terms, after due public notice has been
given asking for competitive bids. Whenever a board of school
directors shall approve the use of a prefabricated unit,
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complete in itself, for a school building or other proper
structure to be erected upon school property, the board of
school directors may have prepared appropriate specifications
detailing the size and material desired in a particular
prefabricated unit, including all utilities such as plumbing,
heating and ventilating, and electrical work, and may advertise
for a single bid on all the work and award the contract therefor
to the lowest responsible bidder: Provided, That if due to an
emergency a school plant or any part thereof becomes unusable
competitive bids for repairs or replacement may be solicited
from at least three responsible bidders, and upon the approval
of any of these bids by the Secretary of Education, the board of
school directors may proceed at once to make the necessary
repairs or replacements in accordance with the terms of said
approved bid or bids.
(a.1) Written or telephonic price quotations from at least
three qualified and responsible contractors shall be requested
by the board of school directors for all contracts that exceed
[four thousand dollars ($4,000)] seven thousand dollars
($7,000), subject to annual adjustment under section 118, 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
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telephonic price quotations and memoranda shall be retained for
a period of three years.
(b) The board of school directors in any school district may
perform any construction, reconstruction, repairs, or work of
any nature, where the entire cost or value, including labor and
material, is less than [five thousand dollars ($5000)] seven
thousand dollars ($7,000), subject to annual adjustment under
section 118, by its own maintenance personnel. The board of
school directors in any school district may authorize the
secretary of the board or other executive to award contracts for
construction, reconstruction, repairs, or work of any nature,
where the entire cost or value, including labor and material,
[is ten thousand dollars ($10,000)] subject to annual adjustment
under section 118, is twenty-five thousand dollars ($25,000) or
less, without soliciting competitive bids, subject, however, to
the provisions of subsection (a.1).
* * *
(f) No board of school directors 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)]
twenty-five thousand dollars ($25,000), subject to annual
adjustment under section 118, 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)] twenty-five thousand dollars ($25,000), subject to
annual adjustment under section 118. 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
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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.
Section 807.1. Purchase of Supplies.--(a) All furniture,
equipment, textbooks, school supplies and other appliances for
the use of the public schools, costing [ten thousand dollars
($10,000)], subject to annual adjustment under section 118,
twenty-five thousand dollars ($25,000) or more shall be
purchased by the board of school directors only after due
advertisement as hereinafter provided. Supplies, subject to
annual adjustment under section 118, costing [ten thousand
dollars ($10,000)] twenty-five thousand dollars ($25,000) or
more shall be purchased by the board of school directors only
after public notice has been given by advertisement once a week
for three (3) weeks in not less than two (2) newspapers of
general circulation. In any district where no newspaper is
published, said notice may, in lieu of such publication, be
posted in at least five (5) public places.
(a.1) Written or telephonic price quotations from at least
three qualified and responsible vendors shall be requested by
the board of school directors for all purchases of supplies that
exceed [four thousand dollars ($4,000)] seven thousand dollars
($7,000), subject to annual adjustment under section 118, 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 vendors
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 vendor and the vendor's
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representative, the supplies which were the subject of the
quotation and the price of the supplies. Written price
quotations, written records of telephonic price quotations and
memoranda shall be retained for a period of three years.
(b) The board of school directors shall accept the bid of
the lowest responsible bidder, kind, quality, and material being
equal, but shall have the right to reject any and all bids, or
select a single item from any bid. The board of school directors
in any district may authorize or appoint the secretary of the
board or other executive as purchasing agent for the district,
with authority to purchase supplies costing less than [ten
thousand dollars ($10,000)] twenty-five thousand dollars
($25,000), subject to annual adjustment under section 118.
(c) The following shall be exempt from the above provisions:
maps, music, globes, charts, educational films, filmstrips,
prepared transparencies and slides, pre-recorded magnetic tapes
and disc recordings, textbooks, games, toys, prepared kits,
flannel board materials, flash cards, models, projectuals and
teacher demonstration devices necessary for school use.
(d) No board of school directors shall evade the provisions
of this section as to advertising for bids or purchasing
materials piecemeal for the purpose of obtaining prices under
[ten thousand dollars ($10,000)] twenty-five thousand dollars
($25,000), subject to annual adjustment under section 118, 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)] twenty-
five thousand dollars ($25,000), subject to annual adjustment
under section 118. This provision is intended to make unlawful
the practice of evading advertising requirements by making a
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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.
Section 3. Section 1913-B.1(c) of the act, added December 9,
2002 (P.L.1472, No.187), is amended to read:
Section 1913-B.1. Contracts for Construction, Repair,
Renovation or Maintenance.--* * *
(c) All contracts, other than contracts for the retention of
architects and engineers, authorized by this section which
exceed [ten thousand dollars ($10,000) or any larger amount as
otherwise provided for in 62 Pa.C.S. (relating to procurement)]
twenty-five thousand dollars ($25,000), subject to annual
adjustment under section 118, shall be advertised in the manner
provided by law and competitively bid and awarded to the lowest
responsible bidder. In case of emergencies and notwithstanding
any other provision of this section to the contrary, the board
of trustees may make or authorize others to make an emergency
procurement whenever a threat exists to public health, welfare
or safety or circumstances outside the control of the college
and creates an urgency of need which does not permit the delay
involved in using more formal competitive methods. Whenever
practical, in the case of a procurement of a supply, at least
two (2) bids shall be solicited. A written determination of the
basis for the emergency and for the selection of the particular
contractor shall be included in the contract file.
* * *
Section 4. Sections 2003-A.1(c) and 2010-A(10) of the act,
amended April 27, 1998 (P.L.270, No.46), are amended to read:
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Section 2003-A.1. Project Contracts.--* * *
(c) All contracts, other than contracts for the retention of
architects and engineers, authorized by this section which
exceed [ten thousand dollars ($10,000)] twenty-five thousand
dollars ($25,000), subject to annual adjustment under section
118, shall be advertised in the manner provided by law and
competitively bid and awarded to the lowest responsible bidder.
In case of emergencies and notwithstanding any other provision
of this section to the contrary, the chancellor may make or
authorize others to make an emergency procurement whenever a
threat exists to public health, welfare or safety or
circumstances outside the control of the State system and
creates an urgency of need which does not permit the delay
involved in using more formal competitive methods. Whenever
practical, in the case of a procurement of a supply, at least
two (2) bids shall be solicited. A written determination of the
basis for the emergency and for the selection of the particular
contractor shall be included in the contract file.
* * *
Section 2010-A. Power and Duties of Institution
Presidents.--The president of each institution shall be
appointed by the board. The president shall be the chief
executive officer of that institution. He shall have the right
to attend all meetings of the council of that institution and
shall have the right to speak on all matters before the council
but not to vote. Subject to the stated authority of the board
and the council, each president shall have the following powers
and duties:
* * *
(10) Within the limitations of the operating budget and
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other available funds in accordance with the procedures
established by the board and with the approval of the local
council, to negotiate and award all contracts for equipment,
services and supplies in excess of a cost of [ten thousand
dollars ($10,000)] twenty-five thousand dollars ($25,000),
subject to annual adjustment under section 118, on a competitive
bid basis and to purchase instructional, educational,
extracurricular, technical, administrative, custodial and
maintenance equipment and supplies not in excess of a cost of
[ten thousand dollars ($10,000)] twenty-five thousand dollars
($25,000), subject to annual adjustment under section 118,
without competitive bidding, except that such items shall not be
bought in series to avoid the dollar ceiling.
* * *
Section 5. 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 6. This act shall take effect in 60 days.
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