The state House advanced legislation Wednesday that would require municipal authorities create additional financial protections when collecting money.
The bill, introduced by Rep. Zach Mako (R-Lehigh/Northampton) and co-sponsored by 12 representatives, would require municipal authorities create standardized procedures for collecting payments, issuing receipts, handling funds received and depositing money. It would also require audits and fiscal reports to be presented to the authority board annually.
The measure would also require authorities to remove any individual names from municipal accounts.
“It is important to have checks and balances in place to prevent mismanagement of public funds,” Mako said. “When water and sewer customers pay their bills, they should know the money is spent as intended. I’m pleased to shepherd this bill through the legislative process again, and I hope it makes it to the governor’s desk for his signature this year.”
Municipalities whose fiscal years end Dec. 31 must file their annual fiscal affairs report on or before July 1. Those with fiscal years ending on different dates would file within 90 days of the end of their fiscal year.
Reports would be filed with the Department of Community and Economic Development using forms prepared by the Department of Community and Economic Development.
The bill now moves to the Senate for further consideration.