§ 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.
History of Section.P.L. 2010, ch. 24, § 1; P.L. 2010, ch. 27, § 1; P.L. 2011, ch. 328, § 1; P.L. 2011, ch. 389, § 1; P.L. 2014, ch. 31, § 1; P.L. 2014, ch. 33, § 1.
Structure Rhode Island General Laws
Chapter 45-9 - Budget Commissions
Section 45-9-1. - Declaration of policy and legal standard.
Section 45-9-2. - Definitions.
Section 45-9-3. - Appointment and duties of fiscal overseer.
Section 45-9-4. - Approval of tax levy.
Section 45-9-5. - Reports of fiscal overseer and appointment of budget and review commission.
Section 45-9-6. - Composition of budget commission.
Section 45-9-7. - Appointment of receiver.
Section 45-9-8. - Appointment of receiver in a fiscal emergency.
Section 45-9-9. - Collective bargaining agreements.
Section 45-9-11. - Expenditures in excess of appropriations prohibited.
Section 45-9-12. - Conflicts with other laws.
Section 45-9-13. - Other state receivership laws inapplicable.
Section 45-9-14. - No state guarantee.
Section 45-9-15. - Inconsistent provisions.
Section 45-9-16. - Liberal construction.
Section 45-9-17. - Severability.
Section 45-9-18. - Additional powers of receiver.
Section 45-9-19. - Expenditures by elected officials in excess of appropriations prohibited.
Section 45-9-20. - Orders of the receiver.
Section 45-9-21. - Exemption from liability and prosecution.