2013 -- S 0738

=======

LC01935

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

____________

A N A C T

RELATING TO TOWNS AND CITIES - AUDIT OF ACCOUNTS AND INSTALLATION OF

SYSTEMS

     Introduced By: Senators DiPalma, Pichardo, Pearson, Ottiano, and Cool Rumsey

     Date Introduced: March 13, 2013

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 45-10-16 of the General Laws in Chapter 45-10 entitled "Audit of

1-2

Accounts and Installation of Systems" is hereby amended to read as follows:

1-3

     45-10-16. Advisory council on municipal finances. -- (a) In order to strengthen the

1-4

fiscal accountability of cities, towns and municipalities in Rhode Island an advisory council on

1-5

municipal finances is hereby formed. The council is composed of five (5) members as follows:

1-6

      (1) The auditor general of the state of Rhode Island or his or her designee;

1-7

      (2) The executive director of the Rhode Island League of Cities and Ttowns Towns or

1-8

his or her designee;

1-9

      (3) The executive director of the Rhode Island League of Cities and Towns shall appoint

1-10

a representative of the Government Finance Officers Association;

1-11

      (4) The director of the department of revenue or his or her designee;

1-12

      (5) The state controller or his or her designee.

1-13

      The auditor general or his or her designee shall serve as chair of the council.

1-14

      (b) The council shall develop recommendations for a uniform system of accounting,

1-15

including a chart of accounts for all cities, towns and municipalities. These recommendations

1-16

shall take into consideration the work of the advisory council on school finances pursuant to the

1-17

requirements of section 16-2-9.3. The council shall recommend changes in accounting procedures

1-18

to be adopted by cities, towns and municipalities. In addition, the council shall apprise municipal

1-19

business officials, city and town councils, and other municipal leaders about sound fiscal

2-1

practices and current state and federal rules and regulations regarding municipal finance. All

2-2

recommendations of the council shall be advisory in nature.

2-3

      (c) The council shall meet at least one time each year. The council shall report its

2-4

activities and recommendations to the chairs of the house and senate committees on finance, the

2-5

senate committee on housing and municipal government, the house committee on municipal

2-6

government, and the office of the governor. The council's initial recommendations shall be

2-7

submitted by July 1, 2009. A second report shall be filed on April 15, 2013.

2-8

     SECTION 2. This act shall take effect upon passage.

=======

LC01935

=======

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TOWNS AND CITIES - AUDIT OF ACCOUNTS AND INSTALLATION OF

SYSTEMS

***

3-1

     This act would require the advisory counsel on municipal finances to file a second report

3-2

relating to its activities and recommendations with various general assembly committees and the

3-3

governor by April 15, 2013.

3-4

     This act would take effect upon passage.

=======

LC01935

=======