2019 -- H 5796

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LC000502

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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 CENTRAL FALLS

     

     Introduced By: Representatives Maldonado, McLaughlin, Alzate, Amore, and
McNamara

     Date Introduced: March 01, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Unless otherwise amended by this act, the terms, conditions, provisions and

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definitions of Chapter 241 of the Public Laws of 2012 are hereby incorporated by reference and

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shall remain in full force and effect.

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     SECTION 2. Section 6 of Article 22 of Chapter 241 of the Public Laws of 2012, as

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amended, entitled "An Act Relating to Central Falls", is hereby amended to read as follows:

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     Sec. 6. Under Rhode Island general laws section 45-9-1 et seq. a municipality subject to

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the jurisdiction of a fiscal overseer, budget commission or receiver is responsible for payment of

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expenses and costs incurred carrying out the responsibilities of the fiscal overseer, budget

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commission and/or receiver. During fiscal 2011, the State incurred and paid on behalf of the City

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of Central Falls expenses totaling $ 1,073,131. On or about September 15, 2011, the State billed

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the City of Central Falls for said $1,073,131 expenses, for which the City of Central Falls is

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responsible under section 45-9-1 et seq., and which continue to be incurred and paid for by the

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State on behalf of the city. The State intends to bill the City of Central Falls for those expenses.

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Notwithstanding the provisions of ยง 45-9-1 et seq., the state shall not bill the City of Central Falls

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for any expenses related to the drafting of and statewide defense of the constitutionally of the

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fiscal stability act, any expenses related to the state-controlled Central Falls school district

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brought in the bankruptcy proceeding, any expenses related to the failed attempt to collect the

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fees and expenses incurred in the Moreau v. Flanders litigation, or any expenses incurred after

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the termination of the receivership on April 15, 2013. As of January 1, 2018, the City of Central

 

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Falls has repaid the state a total of two million, four hundred thousand dollars ($2,400,000) in

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addition to paying six hundred twenty thousand, eight hundred fifty-six dollars ($620,856) in the

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city budget for state oversight, for a total of three million, twenty thousand, eight hundred fifty-

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six dollars ($3,020,856) in receivership expenses. This amount shall be the total amount owed

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and paid by the City of Central Falls for receivership expenses and the state shall declare, in

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writing, that no further debt is owed. Recognizing that the City of Central Falls does not currently

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have the financial ability to reimburse the State in full for said expenses and may need additional

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time to reimburse the State for expenses reflected in future bills submitted by the State for such

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expenses, the City of Central Falls shall have up to June 30, 2021 to reimburse the State for all

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such expenses paid by the State and billed to the city.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO CENTRAL FALLS

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     This act would amend the public laws to establish that the City of Central Falls has paid

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back the state $3,020,856 and would relieve the City of Central Falls from further reimbursing the

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state for expenses incurred in drafting the statewide defense of the fiscal stability act, any

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expenses related to the state-controlled Central Falls school district bankruptcy proceeding,

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expenses incurred in Moreau v. Flanders, or any expenses incurred after termination of the

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receivership.

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     This act would take effect upon passage.

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