§ 45-9-5. Reports of fiscal overseer and appointment of budget and review commission. (a) The fiscal overseer shall report in writing to the division of municipal finance if the fiscal overseer concludes that the city, town, or fire district: (1) Is unable to present a balanced municipal or fire district budget; (2) Faces a fiscal crisis that poses an imminent danger to the safety of the citizens of the city, town, or fire district, or their property; (3) Will not achieve fiscal stability without the assistance of a budget commission; or (4) That the tax levy of the fiscal year should not be approved.

(b) If the fiscal overseer believes, at any time, that a budget commission should be appointed, the fiscal overseer may report that belief to the division of municipal finance.

(c) If the fiscal overseer reports to the division of municipal finance under subsections (a) or (b), the director of revenue may immediately abolish the fiscal overseer and appoint a budget commission.

(d) A budget commission shall have all of the powers and duties set forth in §§ 45-9-3 and 45-9-6.

(e) If a budget commission has not been appointed, and if the division of municipal finance determines that the city, town, or fire district has taken steps necessary to achieve long-term fiscal sustainability and no longer requires active state oversight, the director of revenue may abolish the fiscal overseer.

(f) If the division of municipal finance notifies the director of revenue in writing that the city, town, or fire district is unable to achieve a balanced municipal budget, then the director of revenue shall establish a budget commission.

(g) Upon joint request by a city's or town's elected chief executive officer and city or town council, or, for a fire district, the request of the governing body as established by charter, which request is approved by the division of municipal finance, the director of revenue, in consultation with the auditor general, may establish a budget commission for such city, town, or fire district.

History of Section. (P.L. 2010, ch. 24, § 1; P.L. 2010, ch. 27, § 1; P.L. 2014, ch. 31, § 1; P.L. 2014, ch. 33, § 1.)