2019 -- H 5629

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LC001922

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO PUBLIC FINANCE

     

     Introduced By: Representatives Marszalkowski, Abney, Slater, Filippi, and Morin

     Date Introduced: February 27, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 35-3-24 of the General Laws in Chapter 35-3 entitled "State

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Budget" is hereby amended to read as follows:

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     35-3-24. Control of state spending.

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     (a) All department and agency heads and their employees are responsible for ensuring

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that financial obligations and expenditures for which they have responsibility do not exceed

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amounts appropriated and are spent in accordance with state laws.

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     (b) Persons with the authority to obligate the state contractually for goods and services

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shall be designated in writing by department and agency heads.

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     (c) In the event of an obligation, encumbrance, or expenditure in excess of amounts

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appropriated, the department or agency head with oversight responsibility shall make a written

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determination of the amount and the cause of the overobligation or overexpenditure, the person(s)

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responsible, and corrective actions taken to prevent reoccurrence. The plan of corrective actions

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contained within the report shall detail an appropriate plan to include, but not limited to, such

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issues as the implementation of waiting lists, pro-rata reduction in payments and changes in

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eligibility criteria as methods to address the shortfall. The report will be filed within thirty (30)

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days of the discovery of the overobligation or overexpenditure with the budget officer, the

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controller, the auditor general, and the chairpersons of the house and senate finance committees.

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     (d) In the event a quarterly report demonstrates an obligation, encumbrance, or

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expenditure in excess of amounts appropriated, the department or agency head with oversight

 

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responsibility shall file monthly budget reports with the chairpersons of the house and senate

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finance committees for the remainder of the fiscal year. The monthly budget reports shall detail

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steps taken towards corrective actions and other measures to bring spending in line with

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appropriations. In addition, the budget officer and controller shall ensure that the department’s or

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agency’s obligations, encumbrances, and expenditures for the remainder of the fiscal year result

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in the department or agency ending the fiscal year within amounts appropriated.

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     (e) The controller shall not authorize payments for additional staff, contracts, or

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purchases for any department or agency not projected to end a fiscal year within amounts

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appropriated unless necessitated by immediate health and safety reasons, provided such

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expenditures are reported to the chairpersons of the house and senate finance committees.

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     (d)(f) A state employee who has knowingly and willingly encumbered, obligated, or

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authorized the expenditure of state funds in excess of amounts appropriated for those purposes or

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entered into contracts without proper authorization, including the department or agency head, the

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budget officer, and the controller, may be placed on disciplinary suspension without pay for up to

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thirty (30) days in accordance with § 36-4-36.

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     (e)(g) A state employee who knowingly, willfully, and repeatedly authorizes actions

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resulting in encumbrances or spending of state funds in excess of amounts appropriated, including

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the department or agency head, the budget officer, and the controller, may be fined up to one

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thousand dollars ($1,000) two thousand dollars ($2,000) and/or terminated from employment.

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     (h) Upon receipt of any budgetary information indicating an obligation, encumbrance, or

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expenditure in excess of the amounts appropriated, the chairperson of the house or senate finance

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committee may request a written report to be submitted by the director of administration within

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ten (10) calendar days. The report shall indicate if the obligation, encumbrance, or expenditure in

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excess of the amounts appropriated resulted in any disciplinary action or other penalty in

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accordance with subsection (f) or (g). If not, the report shall explain why no disciplinary action or

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other penalty was imposed in accordance subsection (f) or (g).

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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 PUBLIC FINANCE

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     This act would provide additional controls on state spending by enhancing reporting

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requirements and penalties and restricting overexpenditures.

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     This act would take effect upon passage.

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