HB 1582 — An Act amending the act of May 1, 1933 (P.L.103, No.69), known as The Second Class Township Code, in auditors and accountants, further providing for appointment of accountant and providing for appointment of independent auditor and abolishment of office of elected auditor.

PRIOR PRINTER'S NO.

2012 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

25771582 THE2019 GENERALINTRODUCED ASSEMBLYBY OFGREINER, PENNSYLVANIARYAN, HOUSEFEE, BILLGAYDOS, SessionZIMMERMAN, LAWRENCE, KAUFFMAN, MENTZER, KEEFER, HICKERNELL AND MIZGORSKI, JUNE 5, 2019 REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JUNE 5, 2019 AN ACT Amending the act of No.May 1, 1933 (P.L.103, No.69), entitled "An act concerning townships of the second class;

1582and 2019amending, INTRODUCEDrevising, BYconsolidating GREINER,and RYAN,changing FEE,the GAYDOS,law ZIMMERMAN,relating LAWRENCE,thereto," WHEELAND,in JUNEauditors 5,and 2019FER,accountants, HICKERNELL,further MIZGORSKIproviding ANDfor ASoffice REPORTEDof FROMelected COMMITTEEauditor.and ONproviding LOCALfor GOVERNMENT,abolishment HOUSEof OFThe REPRESENTATIVES,General ASAssembly AMENDED,of SEPTEMBER 24, 2019 AN ACT Amending the actCommonwealth of MayPennsylvania 1,hereby 1933enacts (P.L.103,as No.69),follows: entitled "An act concerning townships of the second class;

and amending, revising, consolidating and changing the law relating thereto," in auditors and accountants, further providing for appointment of accountant and providing for APPOINTMENT OF <-- INDEPENDENT AUDITOR AND abolishment of office of elected auditor.

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

APPOINTMENTAbolishment OFof INDEPENDENTOffice AUDITOR;of Elected Auditor.

Abolishment(a) <-- of Office of Elected Auditor.--(a) The board of supervisors may <-- provide, by ordinance passed by a two-thirds vote of the entire board of supervisors, for the appointment of an independent auditor who must be a certified public accountant registered in this Commonwealth, a firm of certified public accountants registered in this Commonwealth or a competent public accountant or a competent firm of public accountants.

The independent <-- auditor shall make an independent examination of the accounting records of the borough for the fiscal year and perform the other duties and exercise the powers as conferred upon the independent auditor under section 917.

THE(c) BOARDWhen OFan SUPERVISORSindependent SHALLauditor ENTERis <--appointed INTOunder Athis CONTRACTsection, FORthe EACHoffice APPOINTMENT.of elected township auditor shall be abolished, but the township auditors then in office shall continue to hold office during the term for which they were elected, and the township auditor shall not audit, settle or adjust the accounts audited by the independent auditor but shall perform the other duties of office.

THE20190HB1582PN2012 INDEPENDENT- AUDITOR2 SHALL- EXAMINE,(d) AUDIT(1) ANDIf SETTLEany THEtownship ACCOUNTINGhas RECORDSprovided OFby THEordinance TOWNSHIPfor FORthe THEaudit FISCALof YEAR.its accounts by an appointed auditor, the township may at any time repeal the ordinance, and the contract under section 917 shall be canceled as of the date set in the ordinance.

THE INDEPENDENT AUDITOR SHALL HAVE THE SAME POWERS AND DUTIES, EXCEPT FOR SETTING COMPENSATION OF SUPERVISORS EMPLOYED BY THE TOWNSHIP, AND BE SUBJECT TO THE SAME PENALTIES AS THE ELECTED AUDITORS UNDER THIS ARTICLE.

THE 20190HB1582PN2577 - 2 - COMPENSATION FOR INDEPENDENT AUDITORS SHALL BE SET BY THE BOARD OF SUPERVISORS.

THE RESPONSIBILITY TO PUBLISH THE CONCISE FINANCIAL STATEMENT AS PROVIDED BY SECTION 904 SHALL BE COMPLETED BY THE TOWNSHIP SECRETARY UPON RECEIPT OF THE STATEMENT FROM THE INDEPENDENT AUDITOR WITHIN THE REQUIRED TIME FRAME.

(c) When an independent auditor is appointed under this section, the office of elected township auditor shall be <-- abolished BY ORDINANCE AS PROVIDED UNDER SUBSECTION (A), but the <-- township ELECTED auditors then in office shall continue to hold <-- office during the term for which they were elected, and the township auditor ELECTED AUDITORS shall not audit, settle or <-- adjust the accounts audited by the independent auditor but shall perform the other duties of office.

NO ADJUSTMENTS TO THE <-- COMPENSATION OF SUPERVISORS EMPLOYED BY THE TOWNSHIP MAY BE MADE BY THE ELECTED AUDITORS.

(d) (1) If any township has provided by ordinance for the audit of its accounts by an appointed INDEPENDENT auditor, the <-- township may at any time repeal the ordinance UNDER SUBSECTION <-- (A), and the contract under section 917 SUBSECTION (B) shall be <-- canceled as of the date set in the ordinance.

(3) If, at any time after the effective date of an ordinance 20190HB1582PN2577 - 3 - abolishing the office of appointed auditor, there shall be a vacancy in the office of elected auditor, the board of supervisors shall fill the vacancy in the manner prescribed in section 407.

THE ORDINANCE <-- MAY BE PASSED BY THE BOARD OF SUPERVISORS PRIOR TO THE EFFECTIVE DATE OF THE ABOLISHMENT OF THE BOARD OF AUDITORS.

(4) ALL OTHER COMPENSATION, INCLUDING, BUT NOT LIMITED TO, PENSIONS, MAY BE CHANGED BY ORDINANCE BY THE BOARD OF SUPERVISORS AS NEEDED.

ANY CHANGES MADE SHALL NOT TAKE EFFECT UNTIL THE BEGINNING OF THE SUPERVISORS' NEXT TERM OF OFFICE.

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