Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 1 of chapter 425 of the acts of 1983 is hereby amended by striking out subsection 10.8, as appearing in section 1 of chapter 189 of the acts of 1989, and inserting in place thereof the following subsection:-

10.8 City Residence. Every person who is appointed to a city office, or who is employed by the city in any capacity, not a resident of the city at the time of appointment or employment, shall within two years following such appointment or employment, establish such residence as principal domicile; or such appointment or employment shall be forfeited. No enforcement proceeding under this subsection shall be initiated against such employee while the mayor who made such appointment continues to serve in office. Employees subject to tenure under the jurisdiction of the school committee shall not be required to establish a principal domicile until one year after they have attained tenure except as otherwise provided by General Laws. The requirement of this subsection shall not apply to any employee or appointee who the city council determines, upon application by such person, would suffer a substantial hardship from enforcement of the provisions of this subsection. This subsection shall not apply to any person who was appointed by or in the employ of the city before January 2, 1986 and who has continuously served in such appointment or employment thereafter.

SECTION 2. This act shall take effect upon its passage.