2014 -- S 2198 SUBSTITUTE A

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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: Senators Crowley, Picard, Cote, Satchell, and Conley

     Date Introduced: January 30, 2014

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 45-9-10 of the General Laws in Chapter 45-9 entitled "Budget

Commissions" is hereby amended to read as follows:

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

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

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

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

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

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

that a receiver is no longer needed.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

office of officer the same process will be used.

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

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

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

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

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

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

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

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

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

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

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

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

and accounting data and records;

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

departments, boards, commissions, agencies and offices;

      (5) Supervising all financial data processing activities;

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

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

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

agency and office budgets and spending plans;

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

      (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;

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

office; and

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

chapter.

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

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

the financial interests of the city or town.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

established by the officer.

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

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

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

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

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

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

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

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

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

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

departments under the direction of the officer.

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

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

attention to the officer's duties.

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

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

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

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

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

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

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

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

finance officer in the performance of his/her duties.

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

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

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

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

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

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

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

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

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

under chapter 42-35 of the general laws. Nothing in this subsection shall abrogate any of the other

powers or duties of the school committee under the general laws.

     (n) Notwithstanding any general law, public law, or rule or regulation to the contrary,

required reimbursements from a city or town or fire district to the state for expenditures incurred

under this chapter, where petition was filed under Chapter 9 of Title 11 of the United States Code,

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shall be waived provided the city or town or fire district maintains compliance with successfully

completes the plan of debt adjustment approved by the Bankruptcy Court, and provided the

administrative and finance officers certify under penalty of perjury that the city or town or fire

district has maintained compliance with an successfully completed said plan.

     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

***

     This act would provide that for a municipality where a receiver has been abolished

because of a Chapter 9 Bankruptcy filing, the costs associated with the receivership and

bankruptcy would be waived if the municipality's administrative and finance officers certify that

the municipality was in conformity with and had completed the bankruptcy plan as ordered by the

United States Bankruptcy Court.

     This act would take effect upon passage.

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