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2012 -- H 7971 | |
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LC02221 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2012 | |
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A N A C T | |
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RELATING TO TOWNS AND CITIES -- INDEBTEDNESS OF TOWNS AND CITIES | |
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Introduced By: Representatives Reilly, Newberry, Morgan, Ehrhardt, and Trillo | |
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Date Introduced: March 20, 2012 | |
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Referred To: House Municipal Government | |
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It is enacted by the General Assembly as follows: | |
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SECTION 1. Section 45-12-22.7 of the General Laws in Chapter 45-12 entitled |
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"Indebtedness of Towns and Cities" is hereby amended to read as follows: |
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45-12-22.7. Enforcement and remedies. -- In the event that a municipality does not |
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comply with the requirements of this law the state auditor general or the division of municipal |
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finance through the director of revenue may elect any or all of the following remedies: |
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(1) Petition the superior court for mandatory injunctive relief seeking compliance with |
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the provisions of this section. The superior court shall make a finding of fact as to whether there |
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has been compliance with the provisions of this section. As herein before stated, the approval or |
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disapproval of a plan shall be conclusive upon the court in making its finding as to compliance. |
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(2) In the event a municipality fails to provide a year-end deficit elimination plan under |
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section 45-12-22.3, such noncompliance shall allow for the implementation of a budget review |
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commission pursuant to section 45-9-5, and such municipality shall immediately employ the |
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budgetary process known as “zero-based” budgeting with respect to all of its departments |
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including, but not limited to, the budget process employed by any school committee. |
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(3) Withholding of state aid. In the event that the state director of revenue with the |
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concurrence of the auditor general elect to withhold state aid, said amounts shall be placed in a |
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special account within the general fund. At such time the municipality comes into compliance |
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with the reporting requirements of this section, said funds shall be released to the municipality by |
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order of the state director of revenue and state auditor general. |
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SECTION 2. This act shall take effect upon passage. |
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LC02221 | |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO TOWNS AND CITIES -- INDEBTEDNESS OF TOWNS AND CITIES | |
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This act would provide that, in the event a municipality fails to provide a year-end deficit |
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elimination plan when required by statute, such municipality shall immediately employ the |
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budgetary process known as “zero-based” budgeting with respect to all of its departments |
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including, but not limited to, the budget process employed by any school committee. |
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This act would take effect upon passage. |
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LC02221 | |
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