Chapter 279
2011 -- S 0619 SUBSTITUTE A
Enacted 07/12/11
A N A C T
RELATING TO
TOWNS AND CITIES
Introduced By: Senator Daniel DaPonte
Date Introduced: March 10, 2011
It is enacted by the
General Assembly as follows:
SECTION 1. Section 45-9-13 of the General Laws in Chapter
45-9 entitled "Budget
Commissions" is hereby
amended to read as follows:
45-9-13. Other state receivership laws inapplicable. -- No
city or town shall be placed
into, or made subject to, either voluntarily, or
involuntarily, a state judicial receivership
proceeding, and nothing in this act shall in any way pre-empt or
restrict the powers and remedies
available to a state-appointed receiver under Chapter 9 of
Title 11 of the
the receiver’s ability to exercise such powers and
remedies on a city’s or town’s behalf in a
federal proceeding filed under Chapter 9 of Title 11 of the
SECTION 2. Chapter 45-9 of the General Laws entitled
"Budget Commissions" is hereby
amended by adding thereto the following sections:
45-9-18.
Additional powers of receiver. – The receiver shall be entitled to
exercise all
powers under the general laws, this chapter, the state
constitution, any special act, any charter
provision or ordinance that any elected official or any body of
the city or town may exercise,
acting separately or jointly; provided, however, that with
respect to any such exercise of powers
by the receiver, the elected officials or the body shall
not rescind or take any action contrary to
such action by the receiver so long as the receivership
continues to exist.
45-9-19.
Expenditures by elected officials in excess of appropriations prohibited. –
(a) No elected official of a
city or town which is subject to the jurisdiction of a fiscal overseer,
budget commission or receiver, except in the case of an
emergency involving the health and
safety of the people or the people's property declared by
the city or town council, shall knowingly
expend or cause to be expended in any fiscal year any sum in
excess of that official's
departmental or other governmental unit's appropriation duly made
in accordance with the law,
nor commit the city or town, nor cause it to be
committed, to any obligation for the future
payment of money in excess of that appropriation, with the
exception of court judgments.
(b) An elected
official who intentionally violates this section shall be personally liable to
the city or town for any amounts expended in excess of an
appropriation to the extent that the city
or town does not recover such amounts from the person or
persons to whom such amounts were
paid and shall not be indemnified by the city or town for
any such amounts. The superior court
shall have jurisdiction to adjudicate claims brought by the
city or town, or on the city's or town's
behalf by a budget commission established under this
chapter, and to order relief that the court
finds appropriate to prevent further violations of this
section.
45-9-20. Orders of
the receiver. – In the event a receiver is appointed pursuant to the
provisions of this chapter, powers of the city or town council
exercisable by resolution or
ordinance shall be exercised by order of the receiver.
45-9-21.
Exemption from liability and prosecution. – (a)
Notwithstanding any general
or special law to the contrary, neither the
director of the department of revenue, nor any fiscal
overseer, budget commission member, receiver or administration
and finance officer or any
managerial, professional or clerical staff hired, retained or
employed by the director of the
department of revenue or any fiscal overseer, budget and review
commission, receiver or
administration and finance officer under chapter 45-9 of the general
laws shall have any civil
liability for any actions taken or omitted in the course of
performing their official duties.
(b) Notwithstanding
any general or special law to the contrary, neither the director of the
department of revenue nor any fiscal overseer, budget commission
member, receiver or
administration and finance officer, nor any managerial, professional
or clerical staff employed by
the director of the department of revenue or any fiscal
overseer, budget and review commission,
receiver or administration and finance officer under chapter
45-9 of the general laws shall be
subject to prosecution or have any liability for misdemeanor
violations of criminal laws for
actions taken or omitted in the course of performing their
official duties under the chapter 45-9 of
the general laws.
45-9-22.
Indemnification. – Notwithstanding any general
or special law to the contrary,
the state shall indemnify, exonerate, defend and hold
harmless the director of the department of
revenue and any fiscal overseer, budget commission member,
receiver or administration and
finance officer and any managerial, professional or clerical
staff hired, retained or employed by
the director of the department of revenue or any fiscal
overseer, budget and review commission,
receiver or administration and finance officer under chapter
45-9 of the general laws, from all
loss, cost, expense, and damage, including legal fees and
court costs, if any, arising out of any
contract, claim, action, compromise, settlement, or judgment
by reason of any intentional tort or
by reason of any alleged error or misstatement or action
or omission, or neglect or violation of the
rights of any person under any federal or state law, arising
out of or relating to actions taken or
omitted by such person under this chapter 45-9, except in the
case of intentional malfeasance,
malicious conduct or gross negligence. The costs of such
indemnity and defense shall be paid for
solely from amounts available in the city’s or town’s
general fund, from amounts appropriated by
the general assembly for such purposes, or from other
available funds to the extent permitted by
law.
45-9-23.
Litigation costs. – Unless such person shall be the prevailing party
in a final
non-appealable judgment, any person who violates this chapter or
ignores a written demand made
by a fiscal overseer, budget commission member, receiver
or administration and finance officer
acting within the scope of his or her duties, shall be
required to pay the reasonable attorney fees
incurred by the fiscal overseer, budget commission member,
receiver or administration and
finance officer and/or his or her counsel to seek enforcement
of this chapter or compliance with
such written demand.
SECTION 3. This act shall take effect upon passage, and
shall apply retroactively to May
15, 2010.
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LC01949/SUB A/2
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