Source: http://www.pabulletin.com/secure/data/vol33/33-20/922.html
Timestamp: 2015-03-30 02:17:27
Document Index: 314127637

Matched Legal Cases: ['§ 1204', '§ 1709', '§ 1201', '§ 6103', '§ 2615', '§ 9511', '§ 449', '§ 449', '§ 449', '§ 449', '§ 449', '§ 9010', '§ 745', '§ 732', '§ 7', '§ 449', '§ 23308', '§ 36901', '§ 46401', '§ 53201', '§ 56801', '§ 65801', '§ 191', '§ 36901', '§ 46402', '§ 36901', '§ 46402', '§ 56802', '§ 68102', '§ 36901', '§ 46402', '§ 36901', '§ 46402', '§ 56802', '§ 68102', '§ 36907', '§ 46406', '§ 56804', '§ 68105']

PA Bulletin, Doc. No. 03-922
[67 PA. CODE CH. 449]
Liquid Fuels Tax Funds
[33 Pa.B. 2378]
The Department of Transportation (Department), Office of Administration, Bureau of Municipal Services (Bureau) amends Chapter 449 (relating to liquid fuels tax funds) to read as set forth in Annex A.
The Department plans to make these amendments effective upon publication without notice of proposed rulemaking. Notice of proposed rulemaking has been omitted under the authority contained in section 204(1) of the act of July 31, 1968 (P. L. 769, No 240) (45 P. S. § 1204(1)), known as the Commonwealth Documents Law (CDL). The final-omitted rulemaking interprets and incorporates self-executing provisions in the Community and Economic Development Enhancement Act (CEDEA) (71 P. S. §§ 1709.101--1709.2106) and amendments to the municipal and county codes. The procedures specified in sections 201 and 202 of the CDL (45 P. S. §§ 1201 and 1202) are, in the circumstances, impracticable, unnecessary and contrary to the public interest.
The authority for this final-omitted rulemaking is 75 Pa.C.S. §§ 6103 and 9511 (relating to promulgation of rules and regulations by the department; and allocation of proceeds) and sections 1--10 of the act of June 1, 1956 (P. L. (1955) 1944, No. 655) (72 P. S. §§ 2615.1--2615.10) (act).
Chapter 449 effects the fair and uniform administration of the provisions of the act and 75 Pa.C.S. § 9511, which provide a permanent allocation of a part of the liquid fuels, fuels and oil company franchise tax proceeds to counties, cities, boroughs, incorporated towns and townships for their road, street and bridge purposes.
Purpose of the Final-Omitted Rulemaking
The purpose of the final-omitted rulemaking is to update and revise existing provisions of Chapter 449 to be consistent with the CEDEA, which created the Department of Community and Economic Development by the merger of the former Departments of Commerce and Community Affairs. As a result of the merger, the annual reporting forms and documents were changed. These changes are reflected in § 449.12 (relating to annual qualification) and are intended to eliminate the confusion caused by the out dated information in the current regulation. Additionally, amendments to the municipal and county codes have superseded certain provisions of Chapter 449. These statutory amendments have affected townships of the first and second class, third class cities, boroughs, towns, counties of the third through eighth classes and councils of governments. Amendments to § 449.3 (relating to advertising, bidding and bond requirements) reflect the statutory changes from $4,000 to $10,000 in the dollar thresholds for determining whether competitive bidding is required in the solicitation and award of contracts, and for determining whether a municipal contract is exempt from bidding, bonding and advertising.
In §§ 449.7 and 449.8 (relating to purchase of materials and equipment; and equipment rental), telephonic price quotations from at least three qualified and responsible contractors are required for contracts that exceed $4,000 but are less than the $10,000 threshold requiring advertising and competitive bidding, consistent with provisions in the statutes. These sections also provide that instead of the price quotations, a memorandum shall be kept on file showing that fewer than three qualified contractors service the market area within which it is practicable to obtain quotations. The file memorandum shall be kept until the completion of an audit by the Department of the Auditor General which includes the transaction. These audits are conducted periodically according to law and regulation.
Additionally, the bond requirement charts included in § 449.7 and § 449.9 (relating to construction and maintenance contracts) have been updated to reflect current statutory bonding requirements. This amendment will eliminate the confusion, which has existed since the statutory changes, over the appropriate advertising, bidding and bonding requirements. Section 449.7(e) has also been revised to include intergovernmental agencies in the sections dealing with advertising, bidding and bonding requirements for piggy-back purchases. This amendment was made to reflect the changes made to 62 Pa.C.S. (relating to Commonwealth Procurement Code). Sections 449.7 and 449.9 have also been updated to include metric measurements.
In developing the final-omitted rulemaking, the Bureau met and discussed the amendments with Statewide municipal associations and with staff of the Auditor General to ensure that the final-omitted rulemaking would not conflict with applicable local laws and would be acceptable to all affected parties.
The final-omitted rulemaking affects all municipal governments in this Commonwealth that seek to qualify and receive Liquid Fuels Tax funds.
The final-omitted rulemaking does not impose an increased fiscal burden on State or local governments or private entities. The final-omitted rulemaking will facilitate the expeditious review and approval of liquid fuels tax fund activities. This will allow the Department to serve the municipalities of this Commonwealth in a more effective and professional manner and will promote more efficient utilization of liquid fuels tax funds. The final-omitted rulemaking does not impose any additional reporting, recordkeeping or other paperwork requirements on the Commonwealth or local governments.
The Department is not establishing a sunset date for the final-omitted rulemaking since the regulations are needed to administer the provisions required under sections 1--4 of the act and 75 Pa.C.S. § 9010 (relating to disposition and use of tax). The Department will, however, continue to closely monitor these regulations for their effectiveness.
Under section 5.1(c) of the Regulatory Review Act (71 P. S. § 745.5a(c)), on March 17, 2003, the Department submitted copies of this final-omitted rulemaking to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House and Senate Transportation Committees. On the same date, the final-omitted rulemaking was submitted to the Office of the Attorney General for review and approval under the Commonwealth Attorneys Act (71 P. S. §§ 732-101--732-506).
Under section 5.1(d) of the Regulatory Review Act, on April 7, 2003, this final-omitted rulemaking was deemed approved by the House and Senate Committees. Under section 5.1(e) of the Regulatory Review Act, on April 24, 2003, IRRC met and approved this final-omitted rulemaking.
The contact person is Richard G. Zerbe, Bureau of Municipal Services, P. O. Box 8211, 400 North Street, 6th Floor, Commonwealth Keystone Building, Harrisburg, PA 17105-8211, (717) 783-8588.
(1) Public notice of intention to adopt these amendments has been omitted under section 204(1) and (3) of the CDL and the regulation promulgated thereunder, 1 Pa. Code § 7.4.
(2) This final-omitted rulemaking interprets and incorporates self-executing changes made in the CEDEA and amendments to the various municipal and county codes. The CEDEA merged the former Departments of Commerce and Community Affairs, requiring changes in annual reporting forms and documents to reflect the consolidation of the two former agencies into the new Department of Community and Economic Development. The enactment of the CEDEA itself effected the change, this final-omitted rulemaking is a correction of the requirements to conform them to the changes made by the statute. Similarly, the municipal and county codes have effected changes in the threshold dollar amounts which determine whether municipal contracts must be advertised and bid and require bid or performance bonds, or both. The final-omitted rulemaking simply conforms the requirements specific to municipal contracts involving the expenditure of Liquid Fuels Tax moneys to the changes effected in this final-omitted rulemaking to the statutes.
Under the circumstances, there would be no fruitful purpose to publish these regulatory amendments as proposed rulemaking or to invite public comment. The substance of the regulatory amendments is dictated by the changes already controlling in the amended statutes. It would be impracticable, unnecessary and contrary to the public interest to invoke the provisions of sections 201 and 202 of the CDL in these circumstances.
(3) The adoption of this final-omitted rulemaking, in the manner provided in this order, is necessary and appropriate for the administration and enforcement of the authorizing statutes.
The Department, acting under the authorizing statutes, orders that: (a) The regulations of the Department, 67 Pa. Code Chapter 449, are amended by amending §§ 449.2, 449.3, 449.5, 449.7--449.9, 449.11 and 449.12 to read as set forth in Annex A.
(b) The Secretary of the Department shall submit this order and Annex A to the Office of Attorney General and the Office of General Counsel for approval as to legality, as required by law.
(c) The Secretary of the Department shall certify this order and Annex A, and deposit them with the Legislative Reference Bureau as required by law.
(Editor's Note: For the text of the order of the Independent Regulatory Review Commission, relating to this document, see 33 Pa.B. 2325 (May 10, 2003).)
Fiscal Note: 18-371. No fiscal impact; (8) recommends adoption.
ARTICLE III. HIGHWAYS
Alley--A narrow roadway, usually to the rear of abutting properties, designed for the purpose of access to the rear of the properties and not as a thoroughfare; and every roadway less than 16 feet in width.
Court--A dead-end roadway designed to provide access to properties abutting thereon which has a length of less than 250 feet or a vehicle turnaround area with a radius of less than 40 feet.
Intergovernmental agencies--Councils of government, area governments or other affiliation of governments or government agencies as authorized by 62 Pa.C.S. Chapter 19 (relating to intergovernmental relations) to participate in, sponsor, conduct or administer a cooperative purchasing agreement and which expend public moneys for the procurement of supplies, services and construction.
Person--Individual, partnership or corporation; contracts with two or more companies owned or operated by the same person are regarded as one contract.
Road machinery and road equipment--Any machinery or equipment used primarily for the maintenance, repair, construction or reconstruction of public roads or streets, including bridges, culverts and drainage structures for which municipalities are legally responsible.
Roadway--That portion of a street or highway between the side ditch lines, face of curbs, outside edge of shoulders and gutters, or combination thereof, exclusive of slope areas.
Secretary--The Secretary of Transportation.
Way--A short stretch of roadway having both terminals in a street or road and designed to provide access to properties abutting thereon.
Way, court and alley--Any way, court or alley established after the effective date of this chapter will not be recognized as a road or street for purposes of Liquid Fuels Tax participation.
(a) General rule. Advertising, bidding, and a performance bond are required by statute on purchases and contracts in excess of $10,000, with certain exceptions indicated in subsection (b). See: sections 1.1 and 1.2 of the act of March 7, 1901 (P. L. 20, No. 14) (53 P. S. §§ 23308.1 and 23308.2); sections 1901--1918 of the act of June 23, 1931 (P. L. 932, No. 317) (53 P. S. §§ 36901--36918); sections 1401--1411 of the act of February 1, 1966 (P. L. (1965) 1656, No. 581) (53 P. S. §§ 46401--46411); the act of May 27, 1953 (P. L. 244, No. 34) (53 P. S. §§ 53201--53209); sections 1801--1811 of the act of June 24, 1931 (P. L. 1206, No. 331) (53 P. S. §§ 56801--56811); sections 801--808 of the act of May 1, 1933 (P. L. 103, No. 69) (53 P. S. §§ 65801--65809); and the Public Works Contractors' Bond Law of 1967 (8 P. S. §§ 191--202).
(e) Exception to advertising, bidding and bonding requirements for home rule charter municipalities. In the case of any municipality which has adopted a home rule charter, the Department will recognize charter provisions which are contrary to the advertising, bidding and bonding requirements in this chapter or in the various municipal codes.
(f) Brand names. In advertising for equipment to be rented or purchased, or for materials to be purchased or delivered in place, it is unlawful to require or specify any particular make or brand thereof, thereby excluding other makes or brands. A particular brand name or its equivalent may be specified if equal consideration is given to all brands which are reasonably similar to the specified brand. The specifications shall be reasonable and not merely imposed to exclude some brands of equipment or material in favor of other brands.
(ii) The total price for each item (quantity × unit price).
(c) Bonds. On purchases over $10,000, suppliers shall provide bonds in accordance with the following chart:
First, Second, & 2A-Class Cities Third Class Cities Boroughs First Class Townships Second Class Townships
Bid Bond * Discretionary with council in a reasonable amount. Discretionary with council, in an amount determined by council. Not required Not required
(53 P. S. § 36901(f)) (53 P. S. § 46402(b)(1))
Performance Bond * Bond or irrevocable letter of credit, in amount sufficient to council, furnished within 20 days, but not less than 10 days, of award as specified by council. At council's discretion. If required, not less than 10% or greater than 100%, furnished within 20 days, but not less than 10 days, of award as specified by council. Not less than 10% or greater than 100%, furnished within 20 days, but not less than 10 days, of award as specified by township commissioners. Not less than 10% or greater than 100%, as specified by township supervisors, furnished within 20 days of award. (53 P. S. § 36901(g)) (53 P. S. § 46402(c)) (53 P. S. § 56802(c)) (53 P. S. § 68102(g))
NOTE: The Public Works Contractors' Bond Law of 1967 may supersede requirements of municipal codes. Consult the appropriate statutes or consult with the appropriate municipal solicitor, or both, regarding bonding requirements for a particular contract or project.
(d) Annual estimate of materials. Each municipality shall make an annual estimate of its requirements of road construction and maintenance materials, and shall advertise for bids on all items and groups of like items ordinarily supplied by a single supplier--see subsection (b)(3)--which are estimated to exceed $10,000 for the year. For materials estimates between $4,000 and $10,000, three telephone price quotes shall be obtained prior to the selection of a supplier. In lieu of the price quotations, a memorandum shall be kept on file showing that fewer than three qualified contractors service the market area within which it is practicable to obtain quotations until a satisfactory audit of the contract is completed by the Department of the Auditor General. If the cost during the year of an unadvertised item or group of like items ordinarily supplied by a single supplier exceeds $10,000, or if the cost was between $4,000 and $10,000 and three price quotes were not obtained, the entire cost shall be ineligible for payment from the Liquid Fuels Tax fund unless it can be shown to the satisfaction of the Secretary that it was reasonably believed that the cost of the year's requirements of that item or group of like items would not exceed $10,000 or be between $4,000 and $10,000 as specified in this section.
(e) Purchases through Department of General Services or intergovernmental agencies. Advertising, bidding and bonding requirements do not apply to ''piggy back'' purchases from suppliers under contracts with the Department of General Services or intergovernmental agencies. Compliance by an intergovernmental agency with the advertising and bonding requirements in this chapter shall be sufficient to relieve a municipality cooperating in the same purchasing agreement from compliance with the advertising, bidding and bonding requirements.
(a) General rule. A contract in excess of $10,000 for the rental of equipment shall be advertised, bid and bonded and a contract between $4,000 and $10,000 shall be awarded only after three telephone price quotes are obtained, unless the work is performed by the municipality's own employee forces. For contracts between $4,000 and $10,000, in lieu of the price quotations, a memorandum shall be kept on file showing that fewer than three qualified contractors service the market area within which it is practicable to obtain quotations until a satisfactory audit of the contract is completed by the Department of the Auditor General.
(b) ''Local forces'' defined. ''Local forces'' are defined as follows:
(2) The total price for each item (quantity × unit price).
BOND REQUIREMENTS FOR CONSTRUCTION AND MAINTENANCE
Bid Bond * Requirement and reasonable amount discretionary with council. Discretionary with council, in an amount determined by council.Not required Not required
(53 P. S. § 36901(f))(53 P. S. § 46402(b)(1))
Performance Bond over $10,000 * Bond or irrevocable letter of credit, in amount sufficient to council, furnished within 20 days, but not less than 10 days, of award as specified by council. At council's discretion. If required, not less than 10% or greater than 100%, furnished within 20 days, but not less than 10 days, of award as specified by Council. Not less than 10% or greater than 100%, furnished within 20 days, but not less than 10 days, of award as specified by township commissioners. Not less than 10% or greater than 100%, as specified by township supervisors, furnished within 20 days of award. (53 P. S. § 36901(g)) (53 P. S. § 46402(c)) (53 P. S. § 56802(c)) (53 P. S. § 68102(g)) Payment Bond over $1,500 * 50% to 100% at discretion of city. 50% to 100% at discretion of the borough. 50% to 100% at discretion of the township. Not required unless covered under the Public Works Con- tractors' Bond Law of 1967. (53 P. S. § 36907) (53 P. S. § 46406) (53 P. S. § 56804) (53 P. S. § 68105)
NOTE: The Public Works Contractors' Bond Law of 1967 may supersede requirements of municipal codes. Please consult the appropriate statutes or consult with the appropriate municipal solicitor, or both, regarding bonding requirements for a particular contract or project.
(a) Accumulation of 20% funds. A municipality may accumulate its road machinery and road equipment funds--20% funds--over a period of years subject to the following limitations:
[Pa.B. Doc. No. 03-922. Filed for public inspection May 16, 2003, 9:00 a.m.]