2023 -- H 6008
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LC001764
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S TATE OF RHODE IS LAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
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A N A C T
RELATING TO EDUCATION -- FOUNDATION LEVEL SCHOOL SUPPORT
Introduced By: Representatives Handy, McNamara, Cortvriend, Boylan, Tanzi, Edwards,
Hull, Speakman, Fogarty, and Henries
Date Introduced: March 01, 2023
Referred To: House Finance
It is enacted by the General Assembly as follows:
SECTION 1. Sections 16-7-36, 16-7-39, 16-7-40 and 16-7-41.1 of the General Laws in 1
Chapter 16-7 entitled "Foundation Level School Support [See Title 16 Chapter 97 — The Rhode 2
Island Board of Education Act]" are hereby amended to read as follows: 3
16-7-36. Definitions. 4
The following words and phrases used in §§ 16-7-35 to 16-7-47 have the following 5
meanings: 6
(1) “Adjusted equalized weighted assessed valuation” means the equalized weighted 7
assessed valuation for a community as determined by the division of property valuation within the 8
department of revenue in accordance with § 16-7-21; provided, however, that in the case of a 9
regional school district the commissioner of elementary and secondary education shall apportion 10
the adjusted equalized weighted assessed valuation of the member cities or towns among the 11
regional school district and the member cities or towns according to the proportion that the number 12
of pupils of the regional school district bears to the number of pupils of the member cities or towns. 13
(2) “Approved project” means a project which has complied with the administrative 14
regulations governing §§ 16-7-35 through 16-7-47, and which has been authorized to receive state 15
school housing reimbursement by the commissioner of elementary and secondary education. 16
(3) “Commissioning agent” means a person or entity who ensures that systems are 17
designed, installed, functionally tested, and capable of being operated and maintained to perform 18
in conformity with the design intent of a project. 19
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(4) “Community” means any city, town, or regional school district established pursuant to 1
law; provided, however, that the member towns of the Chariho regional high school district, created 2
by P.L. 1958, ch. 55, as amended, shall constitute separate and individual communities for the 3
purposes of distributing the foundation level school support for school housing for all grades 4
financed in whole or in part by the towns irrespective of any regionalization. 5
(5) “Facilities condition index” means the cost to fully repair the building divided by the 6
cost to replace the building as determined by the school building authority. 7
(6) “Functional utilization” means the ratio of the student population within a school 8
facility to the capacity of the school facility to adequately serve students as defined by the school 9
building authority. 10
(7) “Maintenance expenditures” means amounts spent for repairs or replacements for the 11
purpose of keeping a school facility open and safe for use, including repairs, maintenance, and 12
replacements to a school facility’s heating, lighting, ventilation, security, and other fixtures to keep 13
the facility or fixtures in effective working condition. Maintenance shall not include contracted or 14
direct custodial or janitorial services, expenditures for the cleaning of a school facility or its 15
fixtures, the care and upkeep of grounds, recreational facilities, or parking lots, or the cleaning of 16
or repairs and replacements to movable furnishings or equipment. 17
(8) “Owner’s program manager” means owner’s program manager as defined in § 37-2-7. 18
(9) “Prime contractor” means the construction contractor who is responsible for the 19
completion of a project. 20
(10) “Reference year” means the year next prior to the school year immediately preceding 21
that in which aid is to be paid. 22
(11) “Subject to inflation” means the base amount multiplied by the percentage of increase 23
in the Producer Price Index (PPI) Data for Nonresidential Building Construction (NAICS 236222) 24
as published by the United States Department of Labor, Bureau of Labor Statistics determined as 25
of September 30 of the prior calendar year. 26
(12) "Zero energy capable" means the building: 27
(i) Meets the latest Northeast Collaborative for High Performance Schools (NE-CHPS) 28
standard of a zero energy capable school building whereby the actual annual energy delivered other 29
than as described in subsection (12)(ii) of this section, must be less than or equal to the renewable 30
energy generated onsite; or 31
(ii) The actual annual energy delivered must be less than or equal to the sum of: 32
(A) The renewable energy generated onsite; 33
(B) The renewable energy generated offsite through a power purchase agreement; and 34
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(C) The value of purchased NE-GIS certificates that meet the standard for a new renewable 1
energy resource as defined in § 39-26-2. 2
16-7-39. Computation of school housing-aid ratio. 3
For each community, the percent of state aid for school housing costs shall be computed in 4
the following manner: 5
(1) The adjusted equalized weighted assessed valuation for the district is divided by the 6
resident average daily membership for the district (grades twelve (12) and below); (2) The adjusted 7
equalized weighted assessed valuation for the state is divided by the resident average daily 8
membership for the state (grades twelve (12) and below); (1) is then divided by (2) and the resultant 9
ratio is multiplied by a factor currently set at sixty-two percent (62%) which represents the 10
approximate average district share of school support; the resulting product is then subtracted from 11
one hundred percent (100%) to yield the housing aid share ratio, provided that in no case shall the 12
ratio be less than thirty percent (30%). Provided, that effective July 1, 2010, and annually at the 13
start of each fiscal year thereafter, the thirty percent (30%) floor on said housing-aid share shall be 14
increased by five percent (5%) increments each year until said floor on the housing-aid share ratio 15
reaches a minimum of not less than forty percent (40%). This provision shall apply only to school 16
housing projects completed after June 30, 2010, that received approval from the board of regents 17
prior to June 30, 2012. Provided further, for the fiscal year beginning July 1, 2012, and for 18
subsequent fiscal years, the minimum housing aid share shall be thirty-five percent (35%) for all 19
projects receiving council on elementary and secondary education approval after June 30, 2012. 20
The resident average daily membership shall be determined in accordance with § 16-7-22(1). 21
(2) No district shall receive a combined total of more than twenty (20) incentive percentage 22
points for projects that commence construction by December 30, 2023, and five (5) incentive points 23
for projects that commence construction thereafter; provided further, these caps shall be in addition 24
to amounts received under §§ 16-7-40(a)(1) and, 16-7-40(a)(2), 16-7-40(j)(1) and 16-7-40(j)(2). 25
Furthermore, a district’s share shall not be decreased by more than half of its regular share 26
irrespective of the number of incentive points received nor shall a district’s state share increase by 27
more than half of its regular share, including amounts received under §§ 16-7-40(a)(1) and 16-7-28
40(a)(2), irrespective of the number of incentive points received. 29
16-7-40. Increased school housing ratio. 30
(a)(1) In the case of regional school districts, the school housing aid ratio shall be increased 31
by two percent (2%) for each grade so consolidated. 32
(2) Regional school districts undertaking renovation project(s) shall receive an increased 33
share ratio of four percent (4%) for those specific project(s) only, in addition to the combined share 34
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ratio calculated in § 16-7-39 and this subsection. 1
(b) In the case of projects undertaken by districts specifically for the purposes of school 2
safety and security, the school housing aid share ratio shall be increased by five percent (5%) for 3
these specific projects only, in the calculation of school housing aid. The increased share ratio shall 4
continue to be applied for as long as the project(s) receives state housing aid. In order to qualify for 5
the increased share ratio, seventy-five percent (75%) of the project costs must be specifically 6
directed to school safety and security measures. The council on elementary and secondary 7
education shall promulgate rules and regulations for the administration and operation of this 8
section. 9
(c) For purposes of addressing health and safety deficiencies as defined by the school 10
building authority, including the remediation of hazardous materials, the school housing aid ratio 11
shall be increased by five percent (5%) so long as the construction of the project commences by 12
December 30, 2023, is completed by December 30, 2028, and a two hundred fifty million dollar 13
($250,000,000) general obligation bond is approved on the November 2018 ballot. In order to 14
qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a minimum 15
of five hundred thousand dollars ($500,000) must be specifically directed to this purpose. 16
(d) For purposes of educational enhancement, including projects devoted to the 17
enhancement of early childhood education and career and technical education, the school housing 18
aid ratio shall be increased by five percent (5%) so long as construction of the project commences 19
by December 30, 2023, is completed by December 30, 2028, and a two hundred fifty million dollar 20
($250,000,000) general obligation bond is approved on the November 2018 ballot. In order to 21
qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a minimum 22
of five hundred thousand dollars ($500,000) must be specifically directed to these purposes. 23
(e) For replacement of a facility that has a facilities condition index of sixty-five percent 24
(65%) or higher, the school housing ratio shall be increased by five percent (5%) so long as 25
construction of the project commences by December 30, 2023, is completed by December 30, 2028, 26
does not receive a bonus pursuant to subsection (f) or subsection (g), and a two hundred fifty million 27
dollar ($250,000,000) general obligation bond is approved on the November 2018 ballot. In order 28
to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a minimum 29
of five hundred thousand dollars ($500,000) must be specifically directed to this purpose. 30
(f) For any new construction or renovation that increases the functional utilization of any 31
facility from less than sixty percent (60%) to more than eighty percent (80%), including the 32
consolidation of school buildings within or across districts, the school housing aid ratio shall be 33
increased by five percent (5%) so long as construction of the project commences by December 30, 34
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2023, is completed by December 30, 2028, and a two hundred fifty million dollar ($250,000,000) 1
general obligation bond is approved on the November 2018 ballot. In order to qualify for the 2
increased share ratio, twenty-five percent (25%) of the project costs or a minimum of five hundred 3
thousand dollars ($500,000) must be specifically directed to this purpose. 4
(g) For any new construction or renovation that decreases the functional utilization of any 5
facility from more than one hundred twenty percent (120%) to between eighty-five percent (85%) 6
to one hundred five percent (105%), the school housing ratio shall be increased by five percent 7
(5%) so long as construction of the project commences by December 30, 2023, is completed by 8
December 30, 2028, and a two hundred fifty million dollar ($250,000,000) general obligation bond 9
is approved on the November 2018 ballot. In order to qualify for the increased share ratio, twenty-10
five percent (25%) of the project costs or a minimum of five hundred thousand dollars ($500,000) 11
must be specifically directed to this purpose. 12
(h) For consolidation of two (2) or more school buildings, within or across districts into 13
one school building, the school housing aid ratio shall be increased by five percent (5%) so long as 14
construction of the project commences by December 30, 2023, is completed by December 30, 2028, 15
a two hundred fifty million dollar ($250,000,000) general obligation bond is approved on the 16
November 2018 ballot, and does not receive a bonus pursuant to subsection (f) or subsection (g). 17
In order to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a 18
minimum of five hundred thousand dollars ($500,000) must be specifically directed to this purpose. 19
(i) Any regionalized and/or non-regionalized school district receiving an increased share 20
ratio for a project approved prior to July 1, 2018, shall continue to receive the increased share ratio 21
for as long as the project receives state housing aid. 22
(j)(1) In the case of projects undertaken by districts specifically for the purposes of high 23
performance school design, the school housing aid share ratio shall be increased by five percent 24
(5%) for these specific projects only, in the calculation of school housing aid. The increased share 25
ratio shall continue to be applied for as long as the project(s) receives state housing aid. In order to 26
qualify for the increased share ratio, seventy-five percent (75%) of the project costs must be 27
specifically directed to this purpose. The council on elementary and secondary education shall 28
promulgate rules and regulations for the administration and operation of this section. 29
(2) For any new construction or renovation that includes energy efficiency and renewable 30
energy upgrades for the building to meet the standard of a zero energy capable school building as 31
defined in § 16-7-36, the school housing aid ratio shall be increased by ten percent (10%). 32
16-7-41.1. Eligibility for reimbursement. 33
(a) School districts, not municipalities, may apply for and obtain approval for a project 34
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under the necessity of school construction process set forth in the regulations of the council on 1
elementary and secondary education, provided, however, in the case of a municipality that issues 2
bonds through the Rhode Island health and educational building corporation to finance or refinance 3
school facilities for a school district that is not part of the municipality, the municipality may apply 4
for and obtain approval for a project. Such approval will remain valid until June 30 of the third 5
fiscal year following the fiscal year in which the council on elementary and secondary education’s 6
approval is granted. Only those projects undertaken at school facilities under the care and control 7
of the school committee and located on school property may qualify for reimbursement under §§ 8
16-7-35 — 16-7-47. Facilities with combined school and municipal uses or facilities that are 9
operated jointly with any other profit or nonprofit agency do not qualify for reimbursement under 10
§§ 16-7-35 — 16-7-47. Projects completed by June 30 of a fiscal year are eligible for 11
reimbursement in the following fiscal year. A project for new school housing or additional housing 12
shall be deemed to be completed when the work has been officially accepted by the school 13
committee or when the housing is occupied for its intended use by the school committee, whichever 14
is earlier. 15
(b) Notwithstanding the provisions of this section, the board of regents shall not grant final 16
approval for any project between June 30, 2011, and May 1, 2015, except for projects that are 17
necessitated by immediate health and safety reasons. In the event that a project is requested during 18
the moratorium because of immediate health and safety reasons, those proposals shall be reported 19
to the chairs of the house and senate finance committees. 20
(c) Any project approval granted prior to the adoption of the school construction 21
regulations in 2007, and which are currently inactive; and any project approval granted prior to the 22
adoption of the school construction regulations in 2007 which did not receive voter approval or 23
which has not been previously financed, are no longer eligible for reimbursement under this 24
chapter. The department of elementary and secondary education shall develop recommendations 25
for further cost containment strategies in the school housing aid program. 26
(d) Beginning July 1, 2015, the council on elementary and secondary education shall 27
approve new necessity of school construction applications on an annual basis. The department of 28
elementary and secondary education shall develop an annual application timeline for local 29
education agencies seeking new necessity of school construction approvals. 30
(e) Beginning July 1, 2019, no state funding shall be provided for projects in excess of ten 31
million dollars ($10,000,000) unless the prime contractor for the project has received 32
prequalification from the school building authority. 33
(f) Beginning July 1, 2019, the necessity of school construction process set forth in the 34
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regulations of the council on elementary and secondary education shall include a single statewide 1
process, developed with the consultation of the department of environmental management, that will 2
ensure community involvement throughout the investigation and remediation of contaminated 3
building sites for possible reuse as the location of a school. That process will fulfill all provisions 4
of § 23-19.14-5 related to the investigation of reuse of such sites for schools. 5
(g) Beginning July 1, 2019, school housing projects exceeding one million five hundred 6
thousand dollars ($1,500,000) subject to inflation shall include an owner’s program manager and a 7
commissioning agent. The cost of the program manager and commissioning agent shall be 8
considered a project cost eligible for aid pursuant to §§ 16-7-41 and 16-105-5. 9
(h) Temporary housing, or swing space, for students shall be a reimbursable expense so 10
long as a district can demonstrate that no other viable option to temporarily house students exists 11
and provided that use of the temporary space is time limited for a period not to exceed twenty-four 12
(24) months and tied to a specific construction project. 13
(i) Environmental site remediation, as defined by the school building authority, shall be a 14
reimbursable expense up to one million dollars ($1,000,000) per project. 15
(j) If, within thirty (30) years of construction, a newly constructed school is sold to a private 16
entity, the state shall receive a portion of the sale proceeds equal to that project’s housing aid 17
reimbursement rate at the time of project completion. 18
(k) All projects must comply with § 37-13-6, ensuring that prevailing wage laws are being 19
followed, and § 37-14.1-6, ensuring that minority business enterprises reach a minimum of ten 20
percent (10%) of the dollar value of the bid, and § 37-13-3.3, ensuring apprenticeship program 21
utilization. 22
(l) Using reviewable criteria, all projects seeking school housing aid shall complete an 23
independent, objective, reasoned study on all projects over ten million dollars ($10,000,000) to 24
determine whether adoption of a project labor agreement on the proposed project or projects will 25
help achieve the goals of the state purchases act. 26
SECTION 2. Section 16-105-3 of the General Laws in Chapter 16-105 entitled "School 27
Building Authority" is hereby amended to read as follows: 28
16-105-3. Roles and responsibilities. 29
The school building authority roles and responsibilities shall include: 30
(1) Management of a system with the goal of ensuring equitable and adequate school 31
housing for all public school children in the state; 32
(2) Prevention of the cost of school housing from interfering with the effective operation 33
of the schools; 34
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(3) Management of school housing aid in accordance with statute; 1
(4) Reviewing and making recommendations to the council on elementary and secondary 2
education on necessity of school construction applications for state school housing aid and the 3
school building authority capital fund, based on the recommendations of the school building 4
authority advisory board; 5
(5) Promulgating, managing, and maintaining school construction regulations, standards, 6
and guidelines applicable to the school housing program, based on the recommendations of the 7
school building authority advisory board, created in § 16-105-8. Said regulations shall require 8
conformance with the minority business enterprise requirements set forth in § 37-14.1-6 and with 9
the latest Northeast Collaborative for High Performance Schools (NE-CHPS) standards or 10
equivalent, contingent on approval from the council on elementary and secondary education; 11
(6) Developing a prequalification and review process for prime contractors, architects, and 12
engineers seeking to bid on projects in excess of ten million dollars ($10,000,000) in total costs 13
subject to inflation. Notwithstanding any general laws to the contrary, a prequalification shall be 14
valid for a maximum of two (2) years from the date of issuance. Factors to be considered by the 15
school building authority in granting a prequalification to prime contractors shall include, but not 16
be limited to, the contractor’s history of completing complex projects on time and on budget, track 17
record of compliance with applicable environmental and safety regulations, evidence that 18
completed prior projects prioritized the facility’s future maintainability, and compliance with 19
applicable requirements for the use of women and minority owned subcontractors; 20
(i) At least annually, a list of prequalified contractors, architects, and engineers shall be 21
publicly posted with all other program information; 22
(7) Providing technical assistance and guidance to school districts on the necessity of 23
school construction application process; 24
(8) Providing technical advice and assistance, training, and education to cities, towns, 25
and/or local education agencies and to general contractors, subcontractors, construction or project 26
managers, designers and others in planning, maintenance, and establishment of school facility 27
space; 28
(9) Developing a project priority system, based on the recommendations of the school 29
building authority advisory board, in accordance with school construction regulations for the school 30
building authority capital fund, subject to review and, if necessary, to be revised on intervals not to 31
exceed five (5) years. Project priorities shall include, but not be limited to, the following order of 32
priorities: 33
(i) Projects to replace or renovate a building that is structurally unsound or otherwise in a 34
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condition seriously jeopardizing the health and safety of school children where no alternative exists; 1
(ii) Projects needed to prevent loss of accreditation; 2
(iii) Projects needed for the replacement, renovation, or modernization of the HVAC 3
system in any schoolhouse to increase energy conservation and decrease energy-related costs in 4
said schoolhouse; 5
(iv) Projects needed to replace or add to obsolete buildings in order to provide for a full 6
range of programs consistent with state and approved local requirements; and 7
(v) Projects needed to comply with mandatory, instructional programs; 8
(10) Maintaining a current list of requested school projects and the priority given them; 9
(11) Collecting and maintaining readily available data on all the public school facilities in 10
the state; 11
(12) Collecting, maintaining, and making publicly available quarterly progress reports of 12
all ongoing school construction projects that shall include, at a minimum, the costs of the project 13
and the time schedule of the project; 14
(13) Recommending policies and procedures designed to reduce borrowing for school 15
construction programs at both state and local levels; 16
(14) At least every five (5) years, conducting a needs survey to ascertain the capital 17
construction, reconstruction, maintenance, and other capital needs for schools in each district of the 18
state, including public charter schools; 19
(15) Developing a formal enrollment projection model or using projection models already 20
available; 21
(16) Encouraging local education agencies to investigate opportunities for the maximum 22
utilization of space in and around the district; 23
(17) Collecting and maintaining a clearinghouse of prototypical school plans that may be 24
consulted by eligible applicants; 25
(18) Retaining the services of consultants, as necessary, to effectuate the roles and 26
responsibilities listed within this section; 27
(19) No district shall receive a combined total of more than twenty (20) incentive 28
percentage points for projects that commence construction by December 30, 2023, and five (5) 29
incentive points for projects that commence construction thereafter; provided further, these caps 30
shall be in addition to amounts received under §§ 16-7-40(a)(1) and, 16-7-40(a)(2), 16-7-40(j)(1) 31
and 16-7-40(j)(2). Furthermore, a district’s share shall not be decreased by more than half of its 32
regular share irrespective of the number of incentive points received, nor shall a district’s state 33
share increase by more than half of its regular share, including amounts received under §§ 16-7-34
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40(a)(1) and 16-7-40(a)(2), irrespective of the number of incentive points received. 1
Notwithstanding any provision of the general laws to the contrary, the reimbursement or aid 2
received under this chapter or chapter 38.2 of title 45 shall not exceed one hundred percent (100%) 3
of the sum of the total project costs plus interest costs. If a two hundred and fifty million dollar 4
($250,000,000) general obligation bond is approved on the November 2018 ballot, projects 5
approved between May 1, 2015, and January 1, 2018, are eligible to receive incentive points (above 6
and beyond what the project was awarded at the time of approval) pursuant to § 16-7-39 and § 16-7
7-40. Provided, however, any project approved during this time period with a project cost in excess 8
of one million five hundred thousand dollars ($1,500,000), which does not include an owner’s 9
program manager and a commissioning agent, shall only be eligible to receive five (5) incentive 10
points. Incentive points awarded pursuant to the provisions of this subsection shall only be applied 11
to reimbursements occurring on or after July 1, 2018. Any project approved between May 1, 2015, 12
and January 1, 2018, that is withdrawn and/or resubmitted for approval shall not be eligible for any 13
incentive points. 14
(20) Hiring an appropriated staff member who shall create and implement a plan to bring 15
all Rhode Island school buildings to the standard of a zero energy capable school building as 16
defined in § 16-7-36 and who shall provide technical advice and assistance, training, and education 17
to cities, towns, and/or local education agencies and to general contractors, subcontractors, 18
construction or project managers, designers and others on the latest NE-CHPS standards. 19
SECTION 3. Chapter 16-9 of the General Laws entitled "School Funds and Property" is 20
hereby amended by adding thereto the following section: 21
16-9-11. New school construction and renovations. 22
(a) Not later than June 30, 2024, the department of education and the office of energy 23
resources are hereby authorized and directed, to develop and adopt regulations requiring all school 24
buildings to meet the latest Northeast Collaborative for High Performance Schools (NE-CHPS) 25
standard of zero energy capable, as defined in § 16-7-36, by December 31, 2035. 26
(1) The regulations shall allow flexibility to the furthest extent possible for local education 27
agencies to pursue state and federal funding sources that assist in financing energy efficiency or 28
renewable energy systems without any penalties or reduction in state housing aid provided by the 29
department of education. 30
(2) Furthermore, for local education agencies that pursue federal funding for renewable 31
energy systems, the department's regulations shall direct and provide further guidance to local 32
education agencies to build, own, and operate solar panels utilizing federal guidance established in 33
IRC § 6417. 34
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SECTION 4. This act shall take effect upon passage. 1
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO EDUCATION -- FOUNDATION LEVEL SCHOOL SUPPORT
***
This act would provide that the department of education and the office of energy resources 1
develop regulations for school buildings to meet the latest Northeast Collaborative for High 2
Performance Schools standards of zero energy capable schools. 3
This act would take effect upon passage. 4
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