Conn. Gen. Stat. § 7-576b

(b) The secretary shall (1) designate any tier I municipality as a tier II municipality at the request of such municipality, if the secretary determines that the fiscal condition of the municipality warrants such designation, based on the secretary's review of the reports and findings of the Municipal Finance Advisory Commission concerning such municipality, and (2) refer such municipality to the Municipal Accountability Review Board established pursuant to section 7-576d . Said board shall have the same authority and responsibilities possessed by the Municipal Finance Advisory Commission with respect to tier II certified municipalities referred to it, including, but not limited to, requiring that such municipalities prepare and present to said board for its review and approval a five-year financial plan and monthly financial reports, in a manner prescribed by said board. In preparing and adopting its annual budgets, such municipality shall only include assumptions respecting state revenues and property tax revenues as approved by such board and such board shall approve or disapprove all obligations issued by a designated tier II municipality pursuant to section 7-575 and this section, provided it shall only approve such obligations which in its judgment improve the financial condition of such municipality.

(c) The Municipal Finance Advisory Commission may, after holding at least one meeting with a designated tier I municipality, recommend to the secretary that such municipality be designated as a tier II municipality. Any such recommendation shall be made on the basis of such municipality's financial condition, which shall be documented by the commission in a report submitted to the secretary. A copy of such report shall be provided to such municipality not later than ten days after such submission. Not later than forty-five days after such submission, the secretary may approve or reject such recommendation. If the secretary does not approve or reject such recommendation during such forty-five-day period, such recommendation shall be deemed rejected.