§ 45-9-3. Appointment and duties of fiscal overseer.
(a) 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 and the
auditor general, or in absence of such a request, in the event that the director of
revenue, in consultation with the auditor general, makes any two (2) or more of the
findings set forth in subsection (b), the director of revenue may appoint a fiscal
overseer for the city, town, or fire district to assess the ability of the city or
town government or fire district to manage fiscal challenges.
(b) The director of revenue may appoint a fiscal overseer if the director finds, in his
or her sole discretion, that any two (2) of the following events have occurred that
are of such a magnitude that they threaten the fiscal well-being of the city, town,
or fire district, diminishing the city's, town's, or fire district's ability to provide
for the public safety or welfare of the citizens of the city, town, or fire district:
(1) The city, town, or fire district projects a deficit in the municipal budget or fire
district budget in the current fiscal year and again in the upcoming fiscal year;
(2) The city, town, or fire district has not filed its required audits with the auditor
general by the deadlines required by law for two (2) successive fiscal years (not
including extensions authorized by the auditor general);
(3) The city, town, or fire district has been downgraded by one of the nationally recognized
statistical rating organizations;
(4) The city, town, or fire district is otherwise unable to obtain access to credit markets
or obtain financing when necessary on reasonable terms in the sole judgment of the
director of revenue.
(5) The city, town, or fire district does not promptly respond to requests made by the
director of revenue, or the auditor general, or the chairpersons of the house and/or
senate finance committees, for financial information and operating data necessary
to assess the fiscal condition of the city, town, or fire district in the sole judgment
of the director of revenue.
(c) The director of revenue may also appoint a fiscal overseer if a city, town, or fire
district fails to comply with the requirements of §§ 45-12-22.1 — 45-12-22.5.
(d) The fiscal overseer shall without limitation:
(1) Recommend to the elected chief executive officer, fire district board of directors,
city or town council, and school committee sound fiscal policies for implementation;
(2) Supervise all financial services and activities;
(3) Advise the assessors, director of finance, city or town treasurer, fire district board
of directors, purchasing agent, and employees performing similar duties but with different
titles;
(4) Provide assistance in all matters related to municipal or fire district financial
affairs;
(5) Assist in development and preparation of the municipal or fire district budget, all
department budgets, and spending plans;
(6) Review all proposed contracts and obligations;
(7) Monitor the expenditures of all funds;
(8) Approve the annual or supplemental fire districts budgets or municipal budgets of
the city or town and all of its departments; and
(9) Report monthly to the director of revenue, the auditor general, the governor, and
the chairpersons of the house finance and senate finance committees on the progress
made towards reducing the municipality's or fire district's deficit and otherwise
attaining fiscal stability.
(e) All department budgets and requests for municipal or fire district budget transfers
shall be submitted to the fiscal overseer for review and approval.
(f) The city, town, or fire district shall annually appropriate amounts sufficient for
the proper administration of the fiscal overseer and staff, as determined in writing
by the division of municipal finance. If the city, town, or fire district fails to
appropriate such amounts, the division of municipal finance shall direct the general
treasurer to deduct the necessary funds from the city's, town's, or fire district's
distribution of state aid and shall expend those funds directly for the benefit of
the fiscal overseer and staff.
(g) Within one hundred twenty (120) days of being appointed by the director of revenue,
the fiscal overseer shall develop a three-year (3) operating and capital financial
plan to achieve fiscal stability in the city, town, or fire district. The plan shall
include a preliminary analysis of the city's, town's, or fire district's financial
situation and the fiscal overseer's initial recommendations to immediately begin to
address the operating and structural deficits. The fiscal overseer shall have the
power to compel operational, performance, or forensic audits, or any other similar
assessments. The fiscal overseer shall have the power, at the expense of the city,
town, or fire district, to employ, retain, and supervise such managerial, professional
and clerical staff as are necessary to carry out the responsibility of fiscal overseer,
subject to the approval of the division of municipal finance; provided, however, that
the fiscal overseer shall not be subject to chapter 2 of title 37 or chapter 55 of title 45 in employing such staff.