2014 -- H 8291 SUBSTITUTE A

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LC005845/SUB A/3

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO TOWNS AND CITIES -- BUDGET COMMISSIONS

     

     Introduced By: Representatives Silva, Casey, Morin, McLaughlin, and Phillips

     Date Introduced: June 05, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 45-9-10 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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     45-9-10. Appointment of administration and finance officer upon abolition of

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receiver where petition filed under Chapter 9 of Title 11 of the United States Code. -- (a)

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Notwithstanding any general or special law or city or town ordinance to the contrary, this section

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shall apply upon abolition of a receiver established under this chapter, where petition was filed

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under Chapter 9 of Title 11 of the United States Code, upon a determination, in writing, by the

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director of revenue that the financial condition of the city or town has improved to a level such

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that a receiver is no longer needed.

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      (b) For a period of five (5) years after the abolition of a receiver in any such city or

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town, there shall be in the city or town a department of administration and finance which that

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shall be responsible for the overall budgetary and financial administration of the city or town. The

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department shall be under the direction and control of the officer appointed pursuant to subsection

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(c) below. The officer shall report to, and be under the charge and direction of, the elected chief

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executive officer, or in the case of a municipality without an elected chief executive officer, then

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the city or town council. Nothing in this section shall abrogate the powers and duties of the school

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committee under any general or special law, except as specifically provided in this section.

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      Whenever the term "department of finance" or "finance department" appears in a general

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or special law or an ordinance, regulation, contract, or other document with reference to the city

 

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or town, it shall mean the department of administration and finance of the city or town. Whenever

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the term "chief financial officer", "director of finance", "financial director" or "treasurer" appears

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in a general or special law or an ordinance, regulation, contract, or other document with reference

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to the city or town, it shall mean the officer of the city or town.

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      (c) The elected chief executive officer, or in the case of a municipality without an elected

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chief executive officer, then the city or town council, shall appoint the officer from a list of three

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(3) names submitted by the division of municipal finance, for a term of not more than five (5)

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years, as provided in this subsection. The officer shall be an employee of the city or town who

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shall be appointed solely on the basis of administrative and executive qualifications and shall be a

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person especially fitted by education, training, and experience to perform the duties of the office.

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The officer need not be a resident of the city or town or the state. In the event of a vacancy in the

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office of officer the same process will be used.

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      (d) While the process of appointing an officer under subsection (c) is proceeding, the

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elected chief executive officer, or in the case of a municipality without an elected chief executive

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officer, then the city or town council, may appoint an acting officer.

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      (e) The appointment, including an acting appointment, or removal of the officer shall not

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take effect until it has been approved in writing by the division of municipal finance.

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      (f) The powers and duties of the officer shall include the following:

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      (1) Coordinating, administering, and supervising all financial services and activities;

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      (2) Assisting in all matters related to municipal financial affairs;

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      (3) Implementing and maintaining uniform systems, controls, and procedures for all

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financial activities in all departments, boards, commissions, agencies, offices, or other units of

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city or town government the operations of which have a financial impact upon the general fund

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and enterprise funds of the city or town, and including, but not limited to, maintaining all

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financial and accounting data and records;

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      (4) Implementing and maintaining uniform financial data processing capabilities for all

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departments, boards, commissions, agencies, and offices;

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      (5) Supervising all financial data processing activities;

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      (6) Implementing and maintaining uniform budget guidelines and procedures within all

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departments, boards, commissions, agencies, offices, and other units of city or town government;

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      (7) Assisting in the development and preparation of all department, board, commission,

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agency, and office budgets and spending plans;

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      (8) Reviewing all proposed contracts to which the city or town is party;

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      (9) Monitoring the expenditure of all city or town funds, including periodic reporting by

 

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and to appropriate agencies of the status of accounts;

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      (10) Reviewing the spending plan for each department, board, commission, agency, and

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office; and

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      (11) Providing for the allotment of funds on a periodic basis as provided for in this

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chapter.

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      In all cases where the duty is not expressly charged to any other department, board,

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commission, agency or office, it shall be the duty of the officer to promote, secure, and preserve

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the financial interests of the city or town.

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      (g) All department, board, commission, agency, and office budgets and requests for

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budget transfers shall be submitted to the officer for review and recommendation before

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submission to the elected chief executive officer, city or town council, or school committee, as

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appropriate. For each proposed appropriation order, lease, or contract arrangement for a term,

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including more than one fiscal year,; collective bargaining agreement; and with respect to any

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proposed city or town council vote necessary to effectuate a financial transfer, ordinance revision,

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or special legislation which that may require the expenditure of funds or otherwise financially

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obligate the city or town for a period in excess of one year,; or with respect to a vote to authorize

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a borrowing under a law other than sections §§45-12-4.1, 45-12-4.2 or 45-12-4.3 of the general

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laws, the officer shall, if it be the case, submit in writing to the elected chief executive officer,

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city or town council, or school committee, as appropriate, a certification that it is the officer's

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professional opinion, after an evaluation of all pertinent financial information reasonably

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available, that the city's or town's financial resources and revenues are, and will continue to be,

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adequate to support such proposed expenditures or obligations without a detrimental impact on

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the provision of municipal services. If the officer fails to provide this certification within seven

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(7) days after a request for such certification from the elected chief executive officer, city or town

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council or school committee, the appropriation order, financial transfer, ordinance revision,

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special legislation, or borrowing authorization may nonetheless be approved, but the absence of

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the certification of the officer shall be expressly noted in that order or vote.

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      (h) All departments, officers, boards, commissions, agencies, and other units of the city

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or town, shall submit budget requests to the elected chief executive officer, or appropriate

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authority under applicable charter and ordinance provisions, upon the schedule and in the form

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established by the officer.

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      (i) Annually, not later than ninety (90) days prior to the beginning of the municipality's

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fiscal year, the officer shall submit a four (4)-year (4) financial plan and a five (5)-year (4) capital

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plan to the city or town council that includes all capital needs of the city or town.

 

LC005845/SUB A/3 - Page 3 of 5

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      (j) The assessor, treasurer, finance director, controller, director of information

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technology, purchasing agent, director of human resources, labor relations director and employees

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performing similar duties but with different titles shall report to and be under the direction of the

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officer. The officer, with the approval of the elected chief executive officer or appropriate

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authority under applicable charter and ordinance provisions, shall appoint all such officers and

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employees. The elected chief executive officer, or in the case of a municipality without an elected

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chief executive officer, then the city or town council, may also place other positions and

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departments under the direction of the officer.

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      (k) The officer shall not assume the duties or responsibilities of the treasurer or the

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finance director and shall not hold an elective office and shall devote the officer's full-time and

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attention to the officer's duties.

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      (l) The city or town shall annually appropriate amounts sufficient for the proper

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administration of the department. If the city or town fails to appropriate such amounts, the

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division of municipal finance shall direct the general treasurer to deduct the necessary funds from

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the city's or town's distribution of the city's or town's state aid and shall expend those funds

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directly for the benefit of the department. The city or town shall annually appropriate amounts

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sufficient to cover the costs of the administration and finance officer. The state shall annually

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reimburse the city or town for fifty percent (50%) share of such costs. The city or town at its

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expense shall provide office space and adequate resources needed by the administration and

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finance officer in the performance of his/her duties.

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      (m) The officer shall comply with all requests of the school department to provide any

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information relating to the operation of the school department held within the authority or control

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of the officer as the result of the consolidation of school and city or town business and financial

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functions under sections §§45-9-3 or 45-9-6. If the officer, or any employee under the control of

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the officer, refuses to provide such information or engages in unreasonable delay, the school

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department shall notify the division of municipal finance. The division of municipal finance shall,

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within a reasonable time, make a determination whether any such information shall be provided

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to the school department which that shall be binding upon the officer and the school department.

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The division of municipal finance's determination shall not be an adjudicatory proceeding

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reviewable under chapter 42-35 of title 42 of the general laws. Nothing in this subsection shall

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abrogate any of the other powers or duties of the school committee under the general laws.

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     SECTION 2. This act shall take effect upon passage.

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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 for a municipality where a receiver has been abolished

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because of a chapter 9 bankruptcy filing, the director of information technology and the director

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of human resources would not report to or be under the direction of the administration and

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finance officer for the municipality.

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     This act would take effect upon passage.

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