(a) There is established a Municipal Accountability Review Board, which shall be in the Office of Policy and Management for administrative purposes only and which shall be comprised of the Secretary of the Office of Policy and Management, or the secretary’s designee, who shall be the chairperson of such board, the State Treasurer, or the State Treasurer’s designee, who shall be the cochairperson of such board, five members appointed by the Governor, one of whom shall be a municipal finance director, one of whom shall be a municipal bond or bankruptcy attorney, one of whom shall be a town manager, one of whom shall have significant experience in representing organized labor and who shall be selected from a list of three recommendations by the American Federation of State, County and Municipal Employees and one of whom shall have significant experience as a teacher or representing a teacher’s organization and who shall be selected from a list of three joint recommendations by the Connecticut Education Association and the American Federation of Teachers-Connecticut, and one member appointed by the president pro tempore of the Senate, one member appointed by the speaker of the House of Representatives, one member appointed by the minority leader of the Senate and one member appointed by the minority leader of the House of Representatives. Each member appointed by the president pro tempore of the Senate, the speaker of the House of Representatives, the minority leader of the Senate and the minority leader of the House of Representatives shall have experience in business, finance or municipal management. All appointed members shall serve for terms of six years and until a successor is appointed except that two of the five initial appointments by the Governor shall each be for a term of three years with all subsequent appointments being for a term of six years. The filling of any vacancy shall be for the remainder of the applicable member’s terms. If there are two or more designated tier II, III or IV municipalities, the Governor may appoint alternates for one or more of the appointments made by the Governor pursuant to this section. Such alternates shall have the same qualifications as the member for whom they serve as an alternate and the term of each such alternate shall coincide with the term of such member. The members of the board shall serve without compensation, but shall be reimbursed for expenses incurred in performance of their duties. Expenses of the board related to its work with designated tier III or IV municipalities, including any staff, consultants and other expenses adopted by the board, may, following consultation with such municipalities, be charged to such municipalities by the board and may be paid from the proceeds of any deficit obligation or debt restructuring bonds.

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(b) Each designated tier III municipality shall work with the Municipal Accountability Review Board and report to it as provided for in this section. In addition to possessing such powers granted to such board with respect to the designated or certified tier II municipalities referred to it, the following responsibilities and authorities of the board shall apply:

(1) The board shall review and comment on any such municipality’s annual budget prior to its adoption by the legislative body of such municipality.

(2) In preparing and adopting its annual budgets, any such municipality shall only include assumptions respecting state revenues and property tax revenues and a mill rate as are approved by the board.

(3) All obligations issued by a tier III municipality that is eligible to issue bonds pursuant to the provisions of section 7-575, and the issuance of refunding bonds pursuant to section 7-370c, and section 7-579a shall require approval by the board, provided the board, by a vote of five or more of its members, shall only approve such obligations which in its judgment improve the financial condition of any such municipality. Notwithstanding any provision of the general statutes, the board may approve and authorize the municipality’s issuance of bonds with a term of not more than forty years from the date of such issuance.

(4) The board shall review and comment on proposed debt obligations of the municipality not covered by section 7-575 prior to their issuance.

(5) The board may require that the municipality or its board of education notify the board of any or all municipal or board of education contracts that exceed: (A) Fifty thousand dollars for municipalities with a resident population under seventy thousand, or (B) one hundred thousand dollars for municipalities with a resident population of seventy thousand or more, not less than thirty days prior to execution of such contract, for board review and comment regarding such proposed contract. The board shall establish policies and procedures, in consultation with any such municipality and such municipality’s board of education, to implement the provisions of this subdivision.

(6) With respect to any municipality referred to the Municipal Accountability Review Board on or after October 1, 2022, in the case of any proposed collective bargaining agreement or amendments negotiated pursuant to sections 7-467 to 7-477, inclusive, including any such agreement negotiated by a board of education, notwithstanding the provisions of subsection (d) of section 7-474, or pursuant to section 10-153d, the Municipal Accountability Review Board shall have the same opportunity and authority to approve or reject, on not more than two occasions, collective bargaining agreements or amendments as are provided to the legislative body of such municipality in said respective sections, except that (A) any such agreement negotiated by a board of education shall be submitted to the Municipal Accountability Review Board by the bargaining representative of such board of education not later than fourteen days after any such agreement is reached, and (B) such agreement shall be considered approved thirty days after such submission if the Municipal Accountability Review Board has failed to approve or reject such agreement.

(7) (A) The board shall be provided with the same opportunity and authority to reject, on not more than two occasions, an arbitration award, by a vote of the board, as is provided to the legislative body of the municipality in subdivision (12) of subsection (d) of section 7-473c and to provide a written statement to the State Board of Mediation and Arbitration in accordance with said section.

(B) The board shall be provided with the same opportunity and authority to reject, on not more than two occasions, an arbitration award, by a vote of the board, as is provided to the legislative body of the local school district or municipality in subdivision (7) of subsection (c) of section 10-153f and to provide a written statement to the Commissioner of Education and to the exclusive representative of the administrators unit as is required in said section. The provisions of this subparagraph shall not be construed to apply to an arbitration award to which a teacher’s unit is a party.

(8) The board shall monitor compliance with the municipality’s five-year financial plan and annual budget and recommend that the municipality make such changes as are necessary to ensure budgetary balance in such plan and budget.

(9) The board shall recommend that the municipality and its board of education implement measures relating to the efficiency and productivity of the municipality’s and board of education’s operations and management as the board deems appropriate, to reduce costs and improve services so as to advance the purposes of sections 7-560 to 7-565, inclusive, sections 7-568 to 7-579, inclusive. Such recommendations may include, but shall not be limited to, policies and procedures for the responsible use of municipal and board of education credit and purchasing cards, vehicles and other municipal and board of education property and resources.

(10) The board may obtain information on the financial condition and financial needs of any such municipality and board of education of any such municipality.

(11) The board, in consultation with the municipality, may retain such staff and hire consultants experienced in the field of municipal finance, municipal law, governmental operations and administration or governmental accounting as it deems necessary or desirable for accomplishing its purposes.

(12) The board may require the municipality and such municipality’s board of education to apply LEAN practices and principles, and to participate in efforts to establish common strategies and goals and to organize around collective impacts for the municipality, such municipality’s residents, businesses and employees, to result in an improved fiscal sustainability and municipal vitality.

(13) The board may consult with federal, state, quasi-public and nongovernmental agencies to accomplish its purposes.

(14) The board shall establish such written procedures as the board deems necessary to carry out its responsibilities and meet the purposes of sections 7-560 to 7-565, inclusive, sections 7-568 to 7-579, inclusive.

(c) With respect to any municipality referred to the Municipal Accountability Review Board, such municipality and each of its administrative units, including such municipality’s board of education, shall supply the board with such financial reports, data, audits, statements and any other records or documentation as the board may require to exercise its powers and to perform its duties and functions. Such reports may include, but shall not be limited to, (1) proposed budgets, (2) monthly reports of the financial condition of the municipality, (3) the status of the municipality’s current annual budget and progress under its financial plan for the then current fiscal year, (4) estimates of the operating results for all funds or accounts to the end of the then current fiscal year, (5) pension plan and debt projections, (6) statements and projections of general fund cash flow reserves, (7) the number of municipal employees on the municipal payroll, and (8) debt service requirements on all bonds and notes of the municipality for the following month.

(d) With respect to collective bargaining negotiations associated with the municipal or board of education employees of a tier III municipality with a population of one hundred thousand or more, the parties to such negotiations shall request that the Secretary of the Office of Policy and Management designate a staff member and that the local legislative body of such municipality designate one of its members to meet with the parties for the purpose of providing mediation assistance associated with such negotiations. Such mediation may include, but shall not be limited to, assisting the parties in resolving any differences associated with projecting the benefits and costs of the proposals made by the parties. Such mediation assistance shall have a duration of not longer than sixty days.