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
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
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
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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