Any city, town, or agency of the state as defined in § 36-7-2(2) shall have the option of subscribing to the federal state agreement as described in § 36-7-3. The action shall be taken by the adoption of an ordinance, resolution, or vote by the legislative body thereof which shall be the city council in the case of a city, or a financial town meeting in the case of a town, or the board of directors, authority, commissioners, trustees, or other governing body in the case of an agency of the state. The resolution, ordinance, or vote shall indicate its intention of extending the benefits of title II of the federal Social Security Act, 42 U.S.C. § 401 et seq., in conformity with the provisions of that act, to employees of the city, town, or agency of the state as a coverage group, as herein defined. The resolution, ordinance, or vote, to be acceptable, must contain at least the following provisions, requirements, and conditions:

(1)  To meet fully the requirements of the federal Social Security Act, 42 U.S.C. § 301 et seq., and be in accord with the provisions of the federal state agreement herein provided;

(2)  To provide that all services which constitute employment as herein defined and are performed in the employ of the city or town or agency of the state by employees thereof, shall be included in the designated coverage group;

(3)  To specify the source or sources from which funds necessary to make contributions in the amounts and at the rates specified in the federal state agreement, are expected to be derived, and contain reasonable assurance that those sources will at all times be adequate to meet this obligation;

(4)  To provide for such methods of administration of its plan of participation under the agreement as will insure the proper and effective operation thereof;

(5)  To provide that the city, town, or agency of the state will make such reports, in such form and containing such information as may be prescribed from time to time by the general treasurer in accordance with directives or regulations of the secretary, and that the city, town, or agency of the state will at all times comply with such other rules or regulations as the general treasurer or the administrator may from time to time prescribe to assure the correctness and verification of the reports.