(a)  If a budget commission is established under §§?45-9-5 or 45-12-22.7, it shall consist of five (5) members: three (3) of whom shall be designees of the director of revenue; one of whom shall be the elected chief executive officer of the city; and one of whom shall be a council member of the town or city elected to serve on the budget commission as chosen by a majority vote of said town or city council. In cities or towns in which the elected chief executive officer for purposes of this chapter is the president of the city or town council, one member shall be the appointed city or town manager or town administrator (or, if none, the city or town chief financial officer) as the fifth member. For a fire district, it shall consist of five (5) members: three (3) of the members of the budget commission shall be designees of the director of revenue; one shall be the chairperson of the district’s governing body; and one shall be the fire chief of the district. The budget commission shall act by a majority vote of all its members. The budget commission shall initiate and ensure the implementation of appropriate measures to secure the financial stability of the city, town, or fire district. The budget commission shall continue in existence until the director of revenue abolishes it.

The budget commission shall be subject to chapter 2 of Title 36, “Access to Public Records,” and chapter 14 of Title 36, “Code of Ethics.” The budget commission shall be subject to chapter 46 of Title 42 “Open Meetings” when meeting to take action on the following matters:

(1)  Levy and assessment of taxes;

(2)  Rulemaking or suspension of rules;

(3)  Adoption of a municipal or fire district budget;

(4)  Approval of collective bargaining agreements and amendments to collective bargaining agreements; and

(5)  Making a determination under §?45-9-7 that the powers of the budget commission are insufficient to restore fiscal stability to the city, town, or fire district.

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(b)  Action by the budget commission under this chapter shall constitute action by the city, town, or fire district for all purposes under the general laws, under any special law, and under the city, town, or fire district charter.

(c)  Until the budget commission ceases to exist, no appropriation, borrowing authorization, transfer, or other municipal or fire district spending authority, shall take effect until approved by the budget commission. The budget commission shall approve all appropriations, borrowing authorizations, transfers, and other municipal or fire district spending authorizations, in whole or part.

(d)  In addition to the authority and powers conferred elsewhere in this chapter, and notwithstanding any city, town, or fire district charter provision, or local ordinance, or rule or regulation to the contrary, the budget commission shall have the power to:

(1)  Amend, formulate, and execute the annual municipal or fire district budget and supplemental municipal or fire district budgets of the city, town, or fire district, including the establishment, increase, or decrease of any appropriations and spending authority for all departments, budget commissions, committees, agencies or other units of the city, town, or fire district; provided, however, that notwithstanding §§?16-2-9 and 16-2-18, this clause shall fully apply to the school department and all school spending purposes;

(2)  Implement and maintain uniform budget guidelines and procedures for all departments;

(3)  Amend, formulate and execute capital budgets, including amending any borrowing authorization, or financing or refinancing of any debt in accordance with the law;

(4)  Amortize operational deficits in an amount as the director of revenue approves and for a term not longer than five (5) years;

(5)  Develop and maintain a uniform system for all financial planning and operations in all departments, offices, boards, commissions, committees, agencies, or other units of the city’s, town’s, or fire district’s government;

(6)  Review and approve or disapprove all proposed contracts for goods or services;

(7)  Notwithstanding any general or special law to the contrary, establish, increase, or decrease any fee, rate, or charge, for any service, license, permit, or other municipal or fire district activity, otherwise within the authority of the city, town, or fire district;

(8)  Appoint, remove, supervise, and control all city, town, or fire district employees and have control over all personnel matters other than disciplinary matters; provided, that the budget commission shall hold all existing powers to hire and fire and set the terms and conditions of employment held by other employees or officers of the city, town, or fire district; provided, further, that the budget commission shall have the authority to exercise all powers otherwise available to a municipality or fire district regarding contractual obligations during a fiscal emergency; provided, further, that no city, town, or fire district employee or officer shall hire, fire, transfer, or alter the compensation or benefits of a city, town, or fire district employee except with the written approval of the budget commission; and provided, further, that the budget commission may delegate or otherwise assign these powers with the approval of the director of revenue;

(9)  Alter or eliminate the compensation and/or benefits of elected officials of the city, town, or fire district to reflect the fiscal emergency and changes in the responsibilities of the officials as provided by this chapter;

(10)  Employ, retain, and supervise such managerial, professional, and clerical staff as are necessary to carry out its responsibilities; provided, however, that such employment, retention and supervisory decisions are subject to the approval of the director of revenue; provided, further, that the budget commission shall not be subject to chapter 2 of Title 37 or chapter 55 of Title 45 in employing such staff; provided, further, that the budget commission, with the approval of the director of revenue, shall have authority to set the compensation, terms, and conditions of employment of its own staff; provided, further, that the city, town, or fire district shall annually appropriate amounts sufficient for the compensation of personnel hired under this clause as determined and fixed by the budget commission; provided, further, that, if the city, town, or fire district fails to appropriate such amounts, the director of revenue 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 budget commission;

(11)  Reorganize, consolidate, or abolish departments, commissions, authorities, boards, offices, or functions of the city, town, or fire district, in whole or in part, and to establish such new departments, commissions, authorities, boards, offices, or functions as it deems necessary, and to transfer the duties, powers, functions and appropriations of one department, commission, board, office, or other unit to another department, commission, authority, board, or office, and in connection therewith, remove and appoint new members for any such commission, authority, board, or department which appointees shall serve the remainder of any unexpired term of their predecessor;

(12)  Appoint, in consultation with the director of revenue, persons to fill vacancies on any authority, board, committee, department, or office;

(13)  Sell, lease, or otherwise transfer, real property and other assets of the city, town, or fire district with the approval of the director of revenue;

(14)  Purchase, lease, or otherwise acquire, property or other assets on behalf of the city, town, or fire district with the approval of the director of revenue;

(15)  Enter into contracts, including, but not limited to, contracts with other governmental entities, and such other governmental entities are hereby authorized to enter into such contracts;

(16)  Adopt rules and regulations governing the operation and administration of the city, town, or fire district that permit the budget commission to effectively carry out this chapter under §?42-35-3(b);

(17)  Alter or rescind any action or decision of any municipal or fire district officer, employee, board, authority, or commission within fourteen (14) days after receipt of notice of such action or decision;

(18)  Suspend, in consultation with the director of revenue, any rules and regulations of the city, town, or fire district;

(19)  Notwithstanding any other general law, special act, charter provision, or ordinance, and in conformity with the reserved powers of the general assembly pursuant to Article XIII, section 5 of the constitution of the state, a budget commission is authorized to issue bonds, notes, or certificates of indebtedness to fund the deficit of a city, town, or fire district without regard to §?45-12-22.4, to fund cash flow and to finance capital projects. Bonds, notes, or certificates of indebtedness issued under authority of this chapter shall be general obligation bonds backed by the full faith and credit and taxing power of the city, town, or fire district; provided, however, that the budget commission may pledge future distributions of state aid for the purpose of retiring such bonds, notes, or certificates of indebtedness. If any state aid is so pledged, the budget commission shall execute on behalf of the city, town, or fire district a trust agreement with a corporate trustee, which may be any bank or trust company having the powers of a trust company within the state, and any state aid so pledged shall be paid by the general treasurer directly to the trustee to be held in trust and applied to the payment of principal and interest on such bonds, notes, or certificates of indebtedness; any earnings derived from the investment of such pledged aid shall be applied as needed to the payment of that principal and interest and for trustee’s fees and related expenses, with any excess to be paid to the city, town, or fire district. Bonds, notes, or certificates of indebtedness authorized under authority of this chapter shall be executed on behalf of the city, town, or fire district by a member of the commission and, except as provided for in this chapter, may be subject to the provisions of chapter 12 of Title 45 so far as apt, or may be subject to the provisions of any special bond act enacted authorizing the issuance of bonds of a city, town, or fire district so far as apt; provided, however, that any bonds or notes issued for school purposes must be approved by the general assembly in order to qualify for school housing aid as set forth in chapter 7 of Title 16; and

(20)  Exercise all powers under the general laws and this chapter, or any special act, any charter provision or ordinance that any elected official of the city, town, or fire district may exercise, acting separately or jointly; provided, however, that with respect to any such exercise of powers by the budget commission, the elected officials shall not rescind nor take any action contrary to such action by the budget commission so long as the budget commission continues to exist.

(21)  Certify to the Rhode Island department of revenue the need to advance payments of the state’s basic education program under chapter 7 of Title 16 in the amount determined by the budget commission. Said amount shall be advanced, subject to approval of the director of the department of revenue, notwithstanding any general or public law to the contrary. The director of the department of revenue shall provide notice of any advance payments to the fiscal advisors of the house and senate finance committees. The state general treasurer shall deduct the estimated cost to the state’s general fund resulting from any advance payments.