PRINTER'S NO. 2510
No. 2021 Session of 1995
INTRODUCED BY SATHER, MERRY, PISTELLA, HENNESSEY, WOZNIAK,
PETTIT, GORDNER, GEIST, SEMMEL, GODSHALL, STERN,
E. Z. TAYLOR, MILLER, BAKER, SAYLOR, MAITLAND, STEIL,
MICOZZIE, TRELLO, BOSCOLA, ROBINSON AND RUBLEY,
SEPTEMBER 25, 1995
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, SEPTEMBER 25, 1995
AN ACT
1 Amending the act of August 9, 1955 (P.L.323, No.130), entitled
2 "An act relating to counties of the third, fourth, fifth,
3 sixth, seventh and eighth classes; amending, revising,
4 consolidating and changing the laws relating thereto,"
5 further providing for taking money and property by gift, for
6 creation of a capital reserve fund, for the operating reserve
7 fund, for billing and collecting by the county treasurer, for
8 functions of the controller, for custody of documents, for
9 books of fiscal affairs, for settlement of accounts, for
10 audit of accounts, for claims against a county, for reports
11 to commissioners, for fees of witnesses and jurors, for
12 receipts and accounts of money due a county, for preparation
13 of proposed annual budget, for amending budgets, for levies,
14 for tax rates, for appropriations, for filing the budget, for
15 notice and for the preparation of uniform forms; and
16 providing for refusal to submit to examination and for the
17 procedure for approval.
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 Section 1. Sections 510, 512 and 513 of the act of August 9,
21 1955 (P.L.323, No.130), known as The County Code, are repealed.
22 Section 2. Section 1701.1 of the act, amended June 25, 1968
23 (P.L.257, No.121), and December 13, 1982 (P.L.1205, No.276), is
24 amended to read:
1 Section 1701.1. Billing and Collection of Third, Fourth,
2 Fifth, Sixth, Seventh and Eighth Class County Taxes.--(a) The
3 county commissioners of each county of the third, fourth, fifth,
4 sixth, seventh and eighth class may, by resolution, provide for
5 the billing and collecting by the county treasurer of all county
6 and county institution district taxes levied within a third
7 class city by the authorities empowered to levy such taxes.
8 (a.1) The county commissioners of each county of the third,
9 fourth, fifth, sixth, seventh and eighth class may, by
10 resolution, provide for the billing and collection of all county
11 taxes in municipalities existing or organized under the act of
12 April 13, 1972 (P.L.184, No.62), known as the "Home Rule Charter
13 and Optional Plans Law," that have eliminated the elective
14 office of tax collector, by the authorities empowered to levy
15 such taxes.
16 (b) In counties of the third, fourth, fifth, sixth, seventh
17 and eighth class [in which] the county commissioners may
18 provide, by resolution, for the billing and collection of all
19 county and county institution district taxes [levied in third
20 class cities, the]. The county commissioners shall have the
21 power and authority by resolution, to vest in the county
22 treasurer the duties and responsibilities of billing and
23 collecting county and county institution district taxes.
24 (b.1) In counties of the fourth, fifth, sixth, seventh and
25 eighth class in which the county commissioners provide, by
26 resolution, for the billing and collection of all county taxes
27 levied in municipalities existing and organized under the "Home
28 Rule Charter and Optional Plans Law," that have eliminated the
29 elective office of tax collector, the county commissioners shall
30 have the power and authority, by resolution, to vest in the
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1 county treasurer the duties and responsibilities of billing and
2 collecting county taxes.
3 (c) The county commissioners may appoint such other employes
4 as may be necessary to carry out the provisions of this section.
5 (d) The compensation of personnel and other expenses of
6 billing and collecting county and institution district taxes
7 pursuant to this section shall be paid out of the general fund
8 in the county treasury. The compensation and number of such
9 employes other than the county treasurer shall be governed by
10 the provisions of this act relating to the county salary board.
11 If the county treasurer is designated as the collector of the
12 county and county institution district taxes he shall not
13 receive added compensation for performing such functions.
14 (e) The treasurer shall be governed by the provisions of the
15 act of May 25, 1945 (P.L.1050) known as the "Local Tax
16 Collection Law" and its amendments.
17 Section 3. Section 1702 of the act, amended October 1, 1981
18 (P.L.284, No.96), is amended to read:
19 Section 1702. Functions of the Controller.--(a) Subject to
20 the power and duty of the county commissioners to manage and
21 administer the fiscal affairs of the county, the controller
22 shall supervise the fiscal affairs of the county including the
23 accounts and official acts relating thereto of all officers or
24 other persons who shall collect, receive, hold or disburse the
25 public moneys of the county. The discretionary powers of the
26 controller shall not be applicable to the management of the
27 fiscal policies of the county commissioners, or to matters not
28 involving the accounts and transactions of officers or other
29 persons of the county[, but the controller shall]. The
30 controller may only refuse to authorize any fiscal transaction
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1 which is, by law, subject to his supervision or control where it
2 appears that such transaction is not authorized by law, or has
3 not been undertaken according to law, or has not received
4 approval according to law, or as to which he desires upon
5 reasonable grounds to investigate for or has already discovered
6 any fraud, flagrant abuse of public office or any criminal act
7 or neglect of any officer or other person of the county relating
8 to their public accounts and transactions. He may at any time
9 require from any such officers or other persons, in writing, an
10 account of all moneys or property which may have come into their
11 control. Immediately, on the discovery of any default or
12 delinquency, he shall report the same to the commissioners [who
13 shall immediately take action to recover the money] and to the
14 district attorney of the county for such prosecution as may be
15 warranted, and shall take immediate measures to secure the
16 public moneys or property.
17 (b) Pursuant to subsection (a), the county commissioners
18 may, for the purpose of meeting Federal or State requirements or
19 for the purpose of internal management, contract with or employ
20 an independent public accountant for the purpose of preparing or
21 conducting a report or audit of the fiscal affairs of the
22 county, independent of and/or in addition to, that conducted by
23 the county controller or auditors. Such contracts shall be
24 discussed with the controller prior to execution.
25 Section 4. Sections 1704 and 1705 of the act are amended to
26 read:
27 Section 1704. Custody of [Valuable] Documents.--The
28 controller shall have the custody of all title deeds to real
29 estate owned by the county, and of all contracts entered into by
30 or on behalf of the county, and of all books, documents and
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1 papers relating to its financial affairs, and of all bonds and
2 other obligations issued by said county, when paid. Such bonds
3 and other obligations, when so paid, shall be distinctly
4 cancelled by the controller and carefully and regularly filed, a
5 register of which cancellation shall be kept by him in a book to
6 be provided for that purpose.
7 Section 1705. Books of Fiscal Affairs.--The controller shall
8 keep a full and regular set of books in [detail, by double
9 entry] accordance with generally accepted accounting principles,
10 of all the fiscal operations of the county, embracing as many
11 accounts, under appropriate titles, as may be necessary to meet
12 Federal and State reporting requirements and to show distinctly
13 and separately all the property of the county, its receipts and
14 expenditures, and all debts and accounts due by the county
15 officers or others, and the amount raised from each source of
16 revenue, and the expenditures in detail, and classified by
17 reference to the objects thereof. He shall prescribe and
18 administer the form and manner of keeping the official books and
19 papers [used by each of the officers of said county] in
20 connection with the fiscal affairs of the county. Where the
21 controller prescribes a [new system of accounting as to the
22 fiscal affairs of the county offices, it] change in the form and
23 manner of keeping the official books, any costs necessary for
24 implementation shall be subject to the approval of the county
25 commissioners.
26 Section 5. Section 1720 of the act, amended May 6, 1981
27 (P.L.49, No.16), is amended to read:
28 Section 1720. Controller's Settlement of Accounts; Report to
29 Common Pleas; Publications; Financial Report to Department of
30 Community Affairs.--(a) The controller shall, at the end of
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1 each fiscal year, complete the audit, settlement and adjustment
2 of the accounts of all county officers. He shall, before the
3 first day of [April in every] the seventh month of each fiscal
4 year, make a report, verified by oath or affirmation, to the
5 Court of Common Pleas of said county, of all receipts and
6 expenditures of the county for the preceding fiscal year, in
7 detail, and classified by reference to the object thereof,
8 together with a full statement of the financial conditions of
9 the county. The report shall be in detail, determining all of
10 the following:
11 (1) Whether the financial statements of the county fairly
12 represent its financial position and the results of its
13 financial operations are in accordance with generally accepted
14 accounting principles.
15 (2) Whether the county has internal accounting and other
16 control systems to provide reasonable assurance that its
17 operation is in compliance with statutes and regulations.
18 (3) Whether the county is in compliance with the Federal
19 Single Audit Act of 1984 (P.L.98-502, 31 U.S.C. § 7501 et seq.).
20 (b) A concise summary of this report shall thereupon be
21 published one time in such newspapers published in said county
22 as the controller may direct[, but the aggregate cost thereof
23 shall not exceed fifteen hundred dollars ($1500) in any one year
24 in any county], to be paid for out of the county treasury. Such
25 report may also be published in printed pamphlets at the cost of
26 the county, the number and cost of such pamphlets to be
27 determined by the controller and the county commissioners. The
28 controller shall also, before the first day of [April] the
29 seventh month of the fiscal year, make an annual report to the
30 Department of Community Affairs of the financial condition of
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1 the county, on forms furnished by the Secretary of Community
2 Affairs, and subject to the penalties provided in section one
3 thousand seven hundred twenty-one of this act for auditors
4 refusing or neglecting to make similar reports. Within the
5 summary of the auditor's or controller's report, there shall be
6 a notice to the public that the entire text of the report shall
7 be available for public inspection during regular business hours
8 in the office of the auditor or controller.
9 Section 6. Section 1721 of the act, amended October 5, 1967
10 (P.L.342, No.147), April 18, 1978 (P.L.36, No.18) and May 6,
11 1981 (P.L.49, No.16), is amended to read:
12 Section 1721. Audit of Accounts by Auditors; Report to
13 Common Pleas; Publications; Financial Report to Department of
14 Community Affairs.--(a) The auditors shall audit, settle and
15 adjust the accounts of all county officers [of the county], and
16 make an annual report thereof, on or before the first day of the
17 [following May] seventh month following the close of the fiscal
18 year, to the court of common pleas, unless upon due cause shown
19 the court shall grant an extension of time therefor. Said report
20 shall be in detail, [showing distinctly and separately all
21 receipts and expenditures of the several offices, and all debts
22 and accounts due, and the amount raised from each source of
23 revenue, and the expenditures in detail and classified by
24 reference to the object thereof, together with a full statement
25 of the financial conditions of the county, and a statement of
26 the balance due from or to such county officers.] determining
27 all of the following:
28 (1) Whether the financial statements of the county fairly
29 represent its financial position and the results of its
30 financial position and the results of its financial operations
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1 are in accordance with generally accepted accounting principles.
2 (2) Whether the county has internal accounting and other
3 control systems to provide reasonable assurance that its
4 operation is in compliance with statutes and regulations.
5 (3) Whether the county is in compliance with the Federal
6 Single Audit Act of 1984 (P.L. 98-502, 31 U.S.C. § 7501 et
7 seq.).
8 (b) The auditor's report shall be prepared and within ten
9 days after being filed in the court of common pleas, a concise
10 summary thereof shall be published, once, in at least two
11 newspapers published in said county; or if not more than one
12 newspaper is published in the county, then in such newspaper; or
13 if there be no newspaper published in the county, then in one
14 newspaper of general circulation in said county. The expense of
15 the publication of said summary shall be paid by the county.
16 Within the summary of the auditor's or controller's report,
17 there shall be a notice to the public that the entire text of
18 the report shall be available for public inspection during
19 regular business hours in the office of the auditor or
20 controller.
21 (c) The county auditors shall also make an annual report of
22 the financial condition of the county to the Department of
23 Community Affairs, which report shall be signed by a majority of
24 the auditors, and duly verified by the oath or affirmation of
25 one of the auditors. The report shall be presented on a form
26 furnished by the Secretary of Community Affairs, and shall be
27 filed on or before the first day of the [following May] seventh
28 month following the close of the fiscal year.
29 (d) Any auditors refusing or wilfully neglecting to file the
30 report required by this section shall, upon conviction thereof,
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1 in a summary proceeding brought at the instance of the
2 Department of Community Affairs, be sentenced to pay a fine of
3 five dollars ($5) for each day's delay beyond said first day of
4 [May] the seventh month following the close of the fiscal year,
5 and costs. All fines recovered shall be for the use of the
6 Commonwealth.
7 Section 7. Sections 1722, 1722.1, 1723, 1724 and 1724.1 of
8 the act are repealed.
9 Section 8. The act is amended by adding a section to read:
10 Section 1724.2. Audits.--(a) It shall be the duty of the
11 controller or auditors to annually audit, settle and adjust the
12 following in accordance with generally accepted accounting
13 principles and applicable Federal and State laws:
14 (1) Accounts of every alderman, magistrate or district
15 justice within the county.
16 (2) Accounts for moneys appropriated by the county to units
17 of the Pennsylvania National Guard.
18 (3) Accounts for taxes, penalties, costs and fines collected
19 by the county treasurer and belonging to a political subdivision
20 or to the Commonwealth.
21 (4) Accounts for moneys collected or disbursed by the county
22 prothonotary, the county clerk of courts, the register of wills,
23 the recorder of deeds, the clerk of the orphans' court, the
24 sheriff, the district attorney or any subdivision of the court
25 of common pleas.
26 (b) Reports of such audits shall be made to both the court
27 of common pleas and the board of county commissioners, together
28 with a statement of balances due from or to the appropriate
29 officer. A certified copy of such report shall be forwarded to
30 the Auditor General or the Department of Revenue, as the case
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1 may be, within ten days after it is prepared.
2 (c) For the purposes of this act relating to the audits of
3 accounts, money held by any county official in escrow shall be
4 deemed the same as county funds or public money and shall be
5 audited by the controller or auditors.
6 (d) The controller or auditors may, in accordance with
7 generally accepted accounting principles, audit, settle and
8 adjust the accounts or review the operations of any officer or
9 other person who collects, receives, holds or disburses the
10 public moneys of the county.
11 (e) If the controller or auditors and commissioners disagree
12 about the application of generally accepted accounting
13 principles or of Federal or State law in an audit, settlement or
14 adjustment, the parties shall appoint a mutually agreed to
15 professional with expertise relevant to the dispute to settle
16 the dispute.
17 Section 9. Sections 1727 and 1750 of the act are amended to
18 read:
19 Section 1727. [Commitment to County Jail] Refusal to Submit
20 to Examination.--If any person appearing before the controller
21 or auditors for examination shall refuse to take oath or
22 affirmation, or after having been sworn or affirmed shall refuse
23 to make answer to such questions as shall be put to him by the
24 controller or auditors touching the public accounts or the
25 official conduct of any public officers, he shall be guilty of a
26 misdemeanor [and, upon conviction thereof, shall be sentenced to
27 pay a fine of not more than two hundred dollars ($200), or to
28 undergo imprisonment for not more than sixty days].
29 Section 1750. Claims Against County.--The controller or the
30 county commissioners in counties having no controller shall
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1 scrutinize, audit and decide on all bills, claims and demands
2 whatsoever against the county, except such as are otherwise
3 provided for in this subdivision. All persons having such claims
4 shall first present the same to the controller or to the county
5 commissioners [as the case may be] and, if required, make oath
6 or affirmation before him or them to the correctness thereof.
7 The controller or the commissioners, as the case may be, may, if
8 he or they deem it necessary, require evidence, by oath or
9 affirmation, of the claimant and otherwise that the claim is
10 legally due and that the supplies or services for which payment
11 is claimed have been furnished or performed under legal
12 authority. He or they may inquire or ascertain whether any
13 officer or agent of the county is interested in the contract
14 under which any claim may arise, or has received or is to
15 receive any commission, consideration or gratuity relating
16 thereto, or whether there has been any evasion of the provisions
17 of this act by making two or more contracts for small amounts
18 which should have been in one. If he or they shall find that
19 there has been any evasion, or that any such officer or agent is
20 so interested, he or they shall refuse to approve the claim.
21 Section 10. Section 1751 of the act, amended July 1, 1978
22 (P.L.723, No.129), is amended to read:
23 Section 1751. [Voucher Check System] Procedure for
24 Approval.--The controller shall date upon receipt, draw and
25 certify vouchers for all bills, claims and demands presented to
26 him, which he approves and only for such as he approves, and
27 shall forward [the vouchers together with checks therefor with]
28 the bills, claims or demands along with checks therefor to the
29 county commissioners for their approval or, if already approved
30 by the commissioners, for their signatures as provided in this
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1 section. If the county commissioners approve [a voucher] payment
2 of a bill, claim or demand, at least two commissioners shall
3 sign the check as properly drawn upon the county treasury. In
4 such cases facsimiles of their signatures may be used. The bill,
5 claim or demand[, and the voucher therefor,] shall be returned
6 to the controller for filing in his office and the check shall
7 be forwarded to the county treasurer. The county treasurer shall
8 sign the check as his draft upon the county treasury, but he
9 shall not sign any check not already signed, as herein provided,
10 by the commissioners and the controller. [Vouchers shall be
11 numbered serially before the controller forwards them to the
12 county commissioners and every check incident thereto shall bear
13 the same serial number as the voucher] Every check issued shall
14 include reference to its corresponding bill, claim or demand as
15 well as the number or numbers which may be put upon it by the
16 county treasurer. If the county commissioners refuse to approve
17 any bill, claim or demand, they shall return the same together
18 with the voucher and check involved to the controller for filing
19 in his office. In counties not having a controller, the county
20 commissioners shall approve each transaction and the [voucher
21 and] check shall be drawn by their chief clerk who shall keep
22 files of the bills, claims or demands involved [and of the
23 vouchers]. At least two commissioners shall sign the checks
24 either personally or by facsimile, and they shall be forwarded,
25 as hereinbefore provided, to the county treasurer for his
26 signature. In all cases the cancelled checks, or official bank
27 record thereof, shall be filed in the office of the county
28 treasurer, but he shall transmit, at such times as the
29 controller shall establish, a list of all checks paid from the
30 county treasury and not previously transmitted, [giving their
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1 voucher serial numbers] along with appropriate identification.
2 The county treasurer and the controller in those counties having
3 a controller are authorized to use a facsimile signature on any
4 check [for the payment of wages or salaries of county employes]
5 which they are required to sign.
6 Section 11. Sections 1752, 1753, 1754 and 1760 of the act
7 are amended to read:
8 Section 1752. Claims Not Approved by Controller.--If the
9 controller does not approve a claim, bill or demand presented to
10 him, he shall within thirty days forward it to the county
11 commissioners together with his notice that he has [refused]
12 disapproved the claim, bill or demand or is unable to approve
13 the same and his reasons therefor. The county commissioners
14 shall consider the claim, bill or demand and, if they consider
15 that it should be paid by the county, they shall so notify the
16 controller. If the controller thereafter continues to refuse his
17 approval no payment shall be made thereon by the county except
18 pursuant to an order of court upon a proper issue thereto
19 directing the controller to approve payment.
20 Section 1753. [Controller's Register of Vouchers;] Reports
21 to Commissioners.--[The controller shall keep a register of all
22 vouchers drawn and a copy of each voucher. When the check or
23 checks drawn upon each voucher has been paid by the treasury the
24 controller shall cancel the voucher or otherwise indicate the
25 payment.] The controller shall report to the commissioners
26 monthly or oftener, if required by them, the amount of
27 outstanding checks registered and the amount of money in the
28 treasury or the amount of any particular unencumbered
29 appropriation items involved.
30 Section 1754. Fees of Witnesses and Jurors.--Fees of jurors
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1 and witnesses shall be ascertained by the courts of the county
2 entered upon the records thereof and duly certified by their
3 respective clerks to the commissioners being first sworn to or
4 affirmed before the controller or the chief clerk of the
5 commissioners as the case may be. The commissioners, then, may
6 draw [voucher] checks therefor without approval of the
7 controller. The certificates shall be filed with the controller
8 or the commissioners where there is no controller after the
9 [voucher] checks are issued.
10 Section 1760. Receipts and Accounts of Money Due County.--
11 The county treasurer shall receive and receipt for all moneys
12 due or accruing to the county. He shall keep proper accounts of
13 all moneys received and disbursed. His books shall be, at all
14 times during office hours, open to the inspection of the
15 controller[, or the commissioners, or any of them in counties
16 having no controller.] and, for inspection or other management
17 purpose, to the commissioners. He shall issue receipts, at least
18 in triplicate, for all moneys received for the county, and shall
19 transmit the duplicate or triplicate thereof daily to the
20 controller, or to the county commissioners in counties having no
21 controller. Said receipts shall be serially numbered, shall
22 indicate the amount of money received, from whom, on what
23 account and the date. He shall likewise keep daily records of
24 all disbursals from the county treasury, and shall forward daily
25 records thereof to the controller, or the commissioners as the
26 case may be. The controller, or the chief clerk of the
27 commissioners where there is no controller, shall have the right
28 to a certified daily or monthly deposit slip from the county
29 depository or depositories, without prejudice to the said
30 depositories, of all moneys deposited in the name of the county
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1 by the treasurer. In counties having no controller, the
2 treasurer shall render, at least quarterly and oftener, if
3 required, a statement of all moneys received and disbursed since
4 his last statement, showing the balance remaining in his
5 accounts and the names of the collectors having arrearages in
6 taxes with the amounts thereof. He shall state his accounts at
7 the end of each fiscal year, producing his vouchers, which
8 statement and vouchers shall be examined by the commissioners
9 and delivered by them to the auditors for settlement.
10 Section 12. Section 1781 of the act, amended December 14,
11 1967 (P.L.831, No.357), is amended to read:
12 Section 1781. Preparation of Proposed Annual Budget.--(a)
13 The commissioners, at least thirty days prior to adopting the
14 budget, shall begin the preparation of the proposed budget for
15 the succeeding fiscal year.
16 (b) The controller shall transmit to the commissioners a
17 comparative statement of revenues for the current and the
18 immediately preceding fiscal year, and a comparative statement
19 of expenditures, including interest due and to fall due on all
20 lawful interest bearing debts of the county for the same years.
21 (c) The controller's statement shall also indicate the
22 amounts of all appropriation requests, submitted to the
23 controller or to the commissioners and supplied by them to the
24 controller, from the several county offices and agencies,
25 including estimates of expenditures contemplated by the
26 commissioners as forwarded by them to the controller.
27 (d) Said statements[, in such form and detail as the
28 commissioners direct,] shall be prepared [upon a form or forms
29 furnished, as provided in this subdivision, by the Department of
30 Community Affairs of the Commonwealth] in such form and detail
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1 as the commissioners direct. With this information as a guide,
2 the commissioners shall, within a reasonable time, begin the
3 preparation of a proposed budget for the succeeding fiscal year.
4 (e) In counties not having a controller, the commissioners
5 shall prepare the statements hereinbefore required.
6 Section 13. Section 1782.1 of the act, added December 14,
7 1967 (P.L.831, No.357), is amended to read:
8 Section 1782.1. Amending Budget; Notice.--During the month
9 of January next following any municipal election the
10 commissioners of any county may amend the budget and the levy
11 and tax rate to conform with its amended budget. A period of ten
12 days' public inspection at the office of the chief clerk of the
13 proposed amended budget, after notice by the chief clerk to that
14 effect is published once in a newspaper as provided in section
15 110 of this act, shall intervene between the proposed amended
16 budget and the adoption thereof. Any amended budget must be
17 adopted by county commissioners on or before the fifteenth day
18 of February.
19 No such proposed amended budget shall be revised upward in
20 excess of ten per centum in the aggregate thereof or as to an
21 individual [item] function in excess of twenty-five per centum
22 of the amount of such individual [item] function in the proposed
23 amended budget.
24 Within fifteen days after the adoption of an amended budget
25 the chief clerk shall file a copy thereof in the office of the
26 Department of Community Affairs.
27 Section 14. Section 1783 of the act, amended October 5, 1967
28 (P.L.342, No.147), is amended to read:
29 Section 1783. Annual Budget Appropriations and Tax Rate;
30 Filing Budget.--The budget shall reflect as nearly as possible
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1 the estimated revenues and expenditures for the year for which
2 it is prepared. It shall be prepared on forms provided in
3 accordance with this subdivision by the Department of Community
4 Affairs. The commissioners shall, upon adopting the budget,
5 adopt the appropriation measures required to put it into effect,
6 and shall fix such rate of taxation upon the valuation of the
7 property taxable for county purposes as will, together with all
8 other estimated revenues of the county, excluding operating,
9 capital and other reserve funds, raise a sufficient sum to meet
10 the said expenditures. Within fifteen days after the adoption of
11 the budget, the commissioners shall file a copy thereof in the
12 office of the Department of Community Affairs.
13 Section 15. The act is amended by adding sections to read:
14 Section 1784.1. Take Money and Property by Gift, Etc.--The
15 county commissioners may take by gift, grant, devise or bequest,
16 any money or property, real, personal or mixed, for the benefit
17 of the county.
18 Section 1784.2. Capital Reserve Fund for Anticipated Capital
19 Expenditures.--(a) The county commissioners shall have the
20 power to create and maintain a separate capital reserve fund for
21 anticipated legal capital expenditures. The money in the fund
22 shall be used, from time to time, for the construction, purchase
23 or replacement of or addition to county buildings, equipment,
24 machinery, motor vehicles or other capital assets of the county,
25 and for no other purpose.
26 (b) The county commissioners may, annually, appropriate
27 moneys from the general county funds, not to exceed five per
28 centum of the county operating budget, to be paid into the
29 capital reserve fund, or place in the fund any moneys received
30 from the sale, lease or other disposition of any county property
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1 or from any other source, unless received or acquired for a
2 particular purpose. The fund shall be controlled, invested,
3 reinvested and administered, and the moneys therein and income
4 from such moneys expended, for any of the purposes for which the
5 fund is created, in such manner as may be determined by the
6 county commissioners. The money in the fund, when invested,
7 shall be invested in a manner consistent with the provisions of
8 section 1706. This subsection shall not be construed to limit
9 the powers of the county to the use of moneys in the capital
10 reserve fund in making lawful capital expenditures.
11 Section 1784.3. Operating Reserve Fund.--(a) The county
12 commissioners shall have the power to create and maintain a
13 separate operating reserve fund in order to minimize future
14 revenue shortfalls and deficits, provide greater continuity and
15 predictability in the funding of vital government services,
16 minimize the need to increase taxes to balance the budget in
17 times of fiscal distress, provide the capacity to undertake
18 long-range financial planning and develop fiscal resources to
19 meet long-term needs.
20 (b) The county commissioners may annually make
21 appropriations from the county general fund to the operating
22 reserve fund, but no appropriation shall be made to the
23 operating reserve fund if the effect of the appropriation would
24 cause the fund to exceed five per centum of the estimated
25 revenues of the county's general fund in the current fiscal
26 year.
27 (c) The commissioners may at any time, by resolution, make
28 appropriations from the operating reserve fund for the following
29 purposes only:
30 (1) to meet emergencies involving the health, safety or
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1 welfare of the residents of the county;
2 (2) to counterbalance potential budget deficits resulting
3 from shortfalls in anticipated revenues or program receipts from
4 whatever source; or
5 (3) to provide for anticipated operating expenditures
6 related either to the planned growth of existing projects or
7 programs or to the establishment of new projects or programs if
8 for each project or program appropriations have been made and
9 allocated to a separate restricted account established within
10 the operating reserve fund.
11 (d) The operating reserve fund shall be invested, reinvested
12 and administered in a manner consistent with the provisions of
13 section 1706.
14 Section 16. Section 1785 of the act, amended October 5, 1967
15 (P.L.342, No.147), is amended to read:
16 Section 1785. Committee to Prepare Uniform Forms.--(a) The
17 [budget and] report forms specified in the foregoing sections of
18 this article shall be prepared by a committee consisting of
19 three representatives from the [Pennsylvania State Association
20 of] County Commissioners Association of Pennsylvania, three
21 representatives from the Pennsylvania State Association of
22 County Controllers, one member of the Senate and one member of
23 the House of Representatives of the General Assembly, who shall
24 be members of the Local Government Commission, designated by the
25 chairman of said commission, and the Secretary of Community
26 Affairs or his agent who shall be a person trained in the field
27 of municipal finance.
28 (b) Such representatives shall be appointed by the president
29 of each said organization. In the case of representatives of the
30 county commissioners, one shall be appointed from a county of
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1 either the third or fourth class, one from a county of either
2 the fifth or sixth class, and one from a county of either the
3 seventh or eighth class. The president of each said organization
4 shall supply to the Department of Community Affairs the names
5 and addresses of such representatives immediately upon their
6 appointment. Said representatives shall serve without
7 compensation, but they shall be reimbursed by the Commonwealth
8 for all necessary expenses incurred in attending meetings of the
9 committee.
10 (c) The committee shall meet at the call of the Secretary of
11 Community Affairs or his agent, who shall serve as chairman of
12 the committee. The Secretary of Community Affairs may call
13 meetings of the committee, and shall do so at the request of the
14 secretary of either of said associations, but in every case
15 there shall be at least two weeks' notice to each member of the
16 committee of any such meeting.
17 (d) In preparing the uniform forms for both budgets and
18 annual reports, the committee shall give careful consideration
19 to the differing legal requirements and needs of the counties of
20 the several classes, producing, if necessary, separate forms for
21 certain classes of counties or groups of classes.
22 (e) It shall be the duty of the Secretary of Community
23 Affairs or his agent to see to it that the forms required by
24 this section are prepared in cooperation with said committee.
25 Should said committee for any reason fail to furnish such
26 cooperation, the Secretary of Community Affairs or his agent
27 shall complete the preparation of the forms. After their
28 preparation, he shall issue said forms and distribute them
29 annually, as needed, to the commissioners, controller or
30 auditors of each county.
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1 (f) It shall be the duty of the Secretary of Community
2 Affairs to include within the budget and report forms specified
3 in this article the changes necessitated by the provisions of
4 this act in regard to property, powers, duties and obligations
5 of institution districts transferred to counties and the
6 committee established by this section shall not be responsible
7 therefor.
8 (g) It shall be the duty of the Secretary of Community
9 Affairs to convene the committee to assist counties in coming
10 into compliance with generally accepted accounting principles.
11 Section 17. This act shall take effect as follows:
12 (1) The amendment of section 1705 of the act relating to
13 generally accepted accounting principles shall take effect
14 the third full fiscal year following the enactment of this
15 act.
16 (2) The amendment of section 1724.2 of the act relating
17 to audits undertaken in accordance with generally accepted
18 accounting principles shall take effect the third full fiscal
19 year following the enactment of this act.
20 (3) This section shall take effect immediately.
21 (4) The remainder of this act shall take effect in 60
22 days.
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