HB 1364 — An Act amending the act of October 27, 1979 (P.L.241, No.78), entitled "An act authorizing political subdivisions, municipality authorities and transportation authorities to enter into contracts for the purchase of goods and the sale of real and personal property where no bids are received," further providing for title of the act; adding a short title; and providing for contracts for services.

PRIOR PRINTER'S NO.

1693 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

1364 2017 THEINTRODUCED GENERALBY ASSEMBLYJAMES, OFHARPER, PENNSYLVANIAKAMPF, HOUSEFREEMAN BILLAND SessionDALEY, MAY 9, 2017 REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MAY 9, 2017 AN ACT Amending the act of No.October 27, 1979 (P.L.241, No.78), entitled "An act authorizing political subdivisions, municipality authorities and transportation authorities to enter into contracts for the purchase of goods and the sale of real and personal property where no bids are received," further providing for contracts for services.g a short title;

1364 2017 INTRODUCED BY JAMES, HARPER, KAMPF, FREEMAN AND DALEY, MAY 9, 2017 AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 14, 2017 AN ACT Amending the act of October 27, 1979 (P.L.241, No.78), entitled "An act authorizing political subdivisions, municipality authorities and transportationThe authoritiesGeneral toAssembly enter into contracts for the purchase of goods and the saleCommonwealth of realPennsylvania andhereby providingenacts foras titlefollows: of the act;

adding a short title;

and providing for contracts for services.

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

Section 1 of the act is renumbered and amended by <-- adding subsections to read:

* * * <--(c) (A)Contracts PURCHASEfor OFservices.--When GOODS.--WHENa Apolitical POLITICALsubdivision, SUBDIVISION,municipality <--authority MUNICIPALITYor AUTHORITYtransportation ORauthority TRANSPORTATIONis AUTHORITYrequired ADVERTISESto FORadvertise BIDSfor ONbids ANin ITEMorder ANDto NOenter BIDSinto AREa RECEIVED,contract THEfor POLITICALservices SUBDIVISION,and MUNICIPALITYno AUTHORITYbids ORare TRANSPORTATIONreceived, AUTHORITYthe SHALLpolitical REBIDsubdivision, THEmunicipality ITEM.authority or transportation authority may proceed as follows:

IF [AGAIN SUCH BIDS ARE NOT RECEIVED] NO BIDS ARE RECEIVED FROM SUPPLIERS OF THE ITEM WITHIN 15 DAYS OF THE SECOND ADVERTISEMENT, THE POLITICAL SUBDIVISION, MUNICIPALITY AUTHORITY OR TRANSPORTATION AUTHORITY MAY PURCHASE OR ENTER INTO CONTRACTS FOR THE PURCHASE OF [ANY] THE ITEM [WHERE NO BIDS ARE RECEIVED FROM SUPPLIERS FOR THE ITEM WITHIN 45 DAYS OF THE DATE OF SECOND ADVERTISEMENT THEREFOR].

(B) SALE OF PROPERTY.--WHEN A POLITICAL SUBDIVISION, MUNICIPALITY AUTHORITY OR TRANSPORTATION AUTHORITY IS REQUIRED TO ADVERTISE FOR BIDS IN ORDER TO SELL REAL OR PERSONAL PROPERTY AND NO BIDS ARE RECEIVED, THE POLITICAL SUBDIVISION, MUNICIPALITY AUTHORITY OR TRANSPORTATION AUTHORITY MAY PROCEED AS FOLLOWS:

(1) THE POLITICAL SUBDIVISION, MUNICIPALITY AUTHORITY OR TRANSPORTATION AUTHORITY MAY ADVERTISE FOR BIDS A SECOND TIME.

(2) IF NO BIDS ARE RECEIVED WITHIN 15 DAYS OF THE SECOND ADVERTISEMENT, THE POLITICAL SUBDIVISION, MUNICIPALITY 20170HB1364PN2017 - 2 - AUTHORITY OR TRANSPORTATION AUTHORITY MAY INITIATE NEGOTIATIONS FOR A PRIVATE SALE OF THE PROPERTY, TAKING INTO CONSIDERATION ITS FAIR MARKET VALUE.

(3) THE POLITICAL SUBDIVISION, MUNICIPALITY AUTHORITY OR TRANSPORTATION AUTHORITY MUST PUBLICLY ANNOUNCE THE IDENTITY OF THE PARTIES, THE SALE PRICE AND A SUMMARY OF THE OTHER TERMS AND CONDITIONS RELATING TO ANY PROPOSED PRIVATE SALE AT A REGULAR OR SPECIAL MEETING OF ITS GOVERNING BODY.

(4) AFTER THE PUBLIC ANNOUNCEMENT OF THE SALE IS MADE IN ACCORDANCE WITH PARAGRAPH (3), AT LEAST 30 DAYS MUST ELAPSE BEFORE A POLITICAL SUBDIVISION, MUNICIPALITY AUTHORITY OR TRANSPORTATION AUTHORITY MAY AUTHORIZE THE PRIVATE SALE IN ACCORDANCE WITH THIS SUBSECTION.

(c) Contracts for services.--When a political subdivision, municipality authority or transportation authority is required to advertise for bids in order to enter into a contract for services and no bids are received, the political subdivision, municipality authority or transportation authority may proceed as follows:

(3) Prior to executing the contract, the political subdivision, municipality authority or transportation 20170HB1364PN2017 - 3 - authority, at a regular or special meeting of its governing body, must publicly announce the identity of the parties, the proposed contract price and a summary of the other terms and conditions relating to any proposed contract in order to demonstrate that the services to be procured are consistent with those previously advertised.

20170HB1364PN1693 - 2 - (d) Evasion.--The penalties, civil or criminal, surcharges and other liability set forth in law, regulation or ordinance for evading an advertising requirement for bids shall apply to a member of the governing body of a political subdivision, municipality authority or transportation authority who votes for a transaction under this section with the intent to evade the advertising requirement of the applicable law, regulation or ordinance.

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