2012 -- H 8127

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LC02574

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO TOWNS AND CITIES - BUDGET COMMISSIONS

     Introduced By: Representative Agostinho F. Silva

     Date Introduced: May 08, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 45-9-11 of the General Laws in Chapter 45-9 entitled "Budget

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Commissions" is hereby amended to read as follows:

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     45-9-11. Expenditures in excess of appropriations prohibited. -- (a) No official of a

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city or town which is subject to the jurisdiction of a fiscal overseer, budget commission or

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receiver, except in the case of an emergency involving the health and safety of the people or the

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people's property declared by the city or town council, shall knowingly expend or cause to be

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expended in any fiscal year any sum in excess of that official's departmental or other

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governmental unit's appropriation duly made in accordance with the law, nor commit the city or

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town, nor cause it to be committed, to any obligation for the future payment of money in excess

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of that appropriation, with the exception of court judgments.

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      (b) An official who intentionally violates this section shall be personally liable to the city

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or town for any amounts expended in excess of an appropriation to the extent that the city or town

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does not recover such amounts from the person or persons to whom such amounts were paid and

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shall not be indemnified by the city or town for any such amounts. The superior court shall have

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jurisdiction to adjudicate claims brought by the city or town, or on the city's or town's behalf by a

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budget commission established under this chapter, and to order relief that the court finds

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appropriate to prevent further violations of this section. A violation of this section shall be

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sufficient cause for removal.

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      (c) For the purposes of this section, the word "official" shall mean a city or town

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department head, permanent, temporary or acting, including the superintendent of schools, and all

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members of municipal boards, committees, including the school committee, and commissions

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which recommend, authorize or approve the expenditure of funds, and the word "emergency"

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shall mean a major disaster, including, but not limited to, flood, drought, fire, hurricane,

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earthquake, storm or other catastrophe, whether natural or otherwise, which poses an unexpected

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and immediate threat to the health and safety of persons or property.

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     (d) Nothing contained in this section herein shall be interpreted to impair any protection

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and/or indemnification of elected officials provided in any city or town charter, or restrict the

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protections afforded by the constitution of the United States, the constitution of the state of Rhode

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Island, or the United States Supreme Court, specifically in Eastern Railroad Presidents

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Conference v. Noerr Motor Freight 365 U.S. 127 (1961) and United Mine Workers Pennington,

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381 U.S. 657 (1965), known as the Noerr-Pennington Doctrine, or chapter 9-33 of the general

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laws.

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     SECTION 2. This act shall take effect upon passage.

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LC02574

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TOWNS AND CITIES - BUDGET COMMISSIONS

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     This act would provide that protections under the state and federal constitutions, state

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law, city or town charters, or the Noerr-Pennington doctrine would not be impaired in

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implementation of the state law prohibiting expenditures in excess of appropriations in cities or

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towns that are subject to fiscal oversight or receivership.

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     This act would take effect upon passage.

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LC02574

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