§ 45-9-7. Appointment of receiver.
(a) If the budget commission established by § 45-9-5 concludes that its powers are insufficient to restore fiscal stability to the city,
town, or fire district, it shall so notify the director of revenue and shall forward
to the director of revenue a statement of the reasons why it has been unable to restore
fiscal stability to the city, town, or fire district. Upon receipt of such statement,
the director of revenue shall terminate the existence of the budget commission, notwithstanding
§ 45-9-5, and the director of revenue shall appoint a receiver for the city, town, or fire
district for a period as the director of revenue may determine. The director of revenue
may, at any time, and without cause, remove the receiver and appoint a successor,
or terminate the receivership.
(b) The receiver shall have the following powers:
(1) All powers of the fiscal overseer and budget commission under §§ 45-9-2 and 45-9-6. Such powers shall remain through the period of any receivership;
(2) The power to exercise any function or power of any municipal or fire district officer
or employee, board, authority or commission, whether elected or otherwise relating
to or impacting the fiscal stability of the city, town, or fire district including,
without limitation, school and zoning matters; and
(3) The power to file a petition in the name of the city, town, or fire district under
Chapter 9 of Title 11 of the United States Code, and to act on the city's, town's, or fire district's behalf
in any such proceeding.
(c) Upon the appointment of a receiver, the receiver shall have the right to exercise
the powers of the elected officials under the general laws, special laws and the city,
town, or fire district charter and ordinances and rules and regulations relating to
or impacting the fiscal stability of the city, town, or fire district including, without
limitation, school and zoning matters; provided, further, that the powers of the receiver
shall be superior to and supersede the powers of the elected officials of the city,
town, or fire district shall continue to be elected in accordance with the city or
town or fire district charter, and shall serve in an advisory capacity to the receiver.
The receiver shall allow the city's, town's, or fire district's elected officials
to serve their constituents by providing advice to the receiver on the matters relating
to the operation of the city, town, or fire district. In the event a conflict arises
between the chief elected official or city or town council or fire district governing
body and the receiver, the receiver's decision shall prevail. The director of revenue
shall determine the salary of the receiver, which salary shall be payable by the city,
town, or fire district.