Chapter 246

2013 -- H 6310

Enacted 07/15/13

 

A N A C T

RELATING TO TOWNS AND CITIES - BUDGET COMMISSIONS

          

     Introduced By: Representatives Melo, Amore, Kazarian, Baldelli-Hunt, and Phillips

     Date Introduced: June 27, 2013

 

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 fiscal

overseer, budget commission or receiver. -- 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 the fiscal overseer or a budget

commission or 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 fiscal overseer,

a budget commission or a receiver is no longer needed.

      (b) For a period of five (5) years after the abolition of a fiscal overseer, or a budget

commission or 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

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 March 30 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.

      (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 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, as determined in writing by the division of municipal finance.

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.

 

     SECTION 2. Chapter 45-9 of the General Laws entitled "Budget Commissions" is hereby

amended by adding thereto the following section:

 

     45-9-10.1. Appointment of administration and finance officer upon abolition of a

fiscal overseer, or a budget commission or a receiver where no chapter 9, title 11 petition

filed. -- (a) Notwithstanding any general or special law or city or town ordinance to the contrary,

this section shall apply upon the abolition of the fiscal overseer, budget commission or receiver

where the receiver has not filed a petition for Chapter 9, 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 fiscal overseer, budget commission or receiver is no

longer needed.

     (b) For a period of five (5) years after the abolition of a fiscal overseer, or a budget

commission or a receiver where the receiver has not filed a petition for Chapter 9, Title 11 of the

United States Code, a finance advisor shall be appointed for the city or town by the director of

revenue. The finance advisor shall be an employee of the city or town.  The finance advisor shall

be responsible for monitoring the overall budgetary and financial administration and fiscal health

of the city or town. The finance advisor shall report to the director of revenue.

     (c) The finance advisor shall be appointed solely on the basis of his or her qualifications

and shall be a person especially fitted by education, training or experience to perform the

functions of the position.

     (d) The finance advisor shall have complete access to the financial books and records of

all offices, departments, and other agencies of the municipal government and, without limitations:

     (1) Recommend to the elected chief executive officer, city or town council and school

committee sound fiscal policies for implementation and monitor implementation;

     (2) Monitor and oversee all financial operations and activities including the city’s or

town’s operating and capital financial plans to maintain fiscal stability;

     (3) Review operational results of various city or town funds and evaluate the structural

soundness of each;

     (4) Advise the assessor, director of finance, city or town treasurer, purchasing agent and

employees performing similar duties but with different titles;

     (5) Provide assistance in all matters related to municipal financial affairs;

     (6) Review and approve the development and preparation of the annual municipal budget,

all department operating and capital budgets and spending plans;

     (7) Review and approve all proposed labor contracts and obligations to determine if

consistent with a structurally balanced five (5) year plan;

     (8) Monitor the receipt of revenues and expenditures of all funds with the assistance of

city/town staff;

     (9) Participate in rating agency calls pertaining to the city or town;

     (10) Determine compliance with the various ordinances, laws (federal and state) and rules

and regulations related to receipt and expenditure of city funds;

     (11) Provide comment to the local governing body on the annual or supplemental

municipal budgets of the city or town and all of its departments;

     (12) Report quarterly to the chief elected officer, city or town council, director of

revenue, the auditor general, the governor and the chairpersons of the house finance and senate

finance committees on the progress made towards maintaining fiscal stability and all financial

operations of the city or town;  

     (13) Make recommendations to the elected chief executive officer, city or town council,

school committee, and the director of revenue, as appropriate, to begin to address any operational

and/or structural deficit;  

     (14) Make recommendations to the elected chief executive officer, city or town council,

and school committee, as appropriate, to have operational, performance, or forensic audits, or

similar assessments conducted;

     (15) Report any: (i) Inappropriate expenditure; (ii) Any improper accounting procedure;

(iii) All failures to properly record financial transactions; and (iv) Other inaccuracies,

irregularities, and shortages, as soon as practical to the elected chief executive officer, or in the

case of a municipality without an elected chief executive officer, the city or town council; and

     (16) Notify in writing as soon as practical, the elected chief executive officer or the city

or town council; if the finance advisor discovers any errors, unusual practices, or any other

discrepancies in connection with his or her work.

     (f) The city or town, including the school department, shall provide the finance advisor

with any and all information requested in a timely fashion.

     (g) 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.

     (h) 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.

(i)  Nothing contained herein removes duties from existing positions in the city or town.

     

     SECTION 3. This act shall take effect upon passage.

     

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LC02910

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