2023 -- H 6111
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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 Cortvriend, McEntee, Finkelman, and Shallcross Smith
Date Introduced: March 03, 2023
Referred To: House Finance
It is enacted by the General Assembly as follows:
SECTION 1. Sections 16-7-39, 16-7-40 and 16-7-41.1 of the General Laws in Chapter 16-1
7 entitled "Foundation Level School Support [See Title 16 Chapter 97 — The Rhode Island Board 2
of Education Act]" are hereby amended to read as follows: 3
16-7-39. Computation of school housing-aid ratio. 4
For each community, the percent of state aid for school housing costs shall be computed in 5
the following manner: 6
(1) The adjusted equalized weighted assessed valuation for the district is divided by the 7
resident average daily membership for the district (grades twelve (12) and below); (2) The adjusted 8
equalized weighted assessed valuation for the state is divided by the resident average daily 9
membership for the state (grades twelve (12) and below); (1) is then divided by (2) and the resultant 10
ratio is multiplied by a factor currently set at sixty-two percent (62%) which represents the 11
approximate average district share of school support; the resulting product is then subtracted from 12
one hundred percent (100%) to yield the housing aid share ratio, provided that in no case shall the 13
ratio be less than thirty percent (30%). Provided, that effective July 1, 2010, and annually at the 14
start of each fiscal year thereafter, the thirty percent (30%) floor on said housing-aid share shall be 15
increased by five percent (5%) increments each year until said floor on the housing-aid share ratio 16
reaches a minimum of not less than forty percent (40%). This provision shall apply only to school 17
housing projects completed after June 30, 2010, that received approval from the board of regents 18
prior to June 30, 2012. Provided further, for the fiscal year beginning July 1, 2012, and for 19
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subsequent fiscal years, the minimum housing aid share shall be thirty-five percent (35%) for all 1
projects receiving council on elementary and secondary education approval after June 30, 2012. 2
The resident average daily membership shall be determined in accordance with § 16-7-22(1). 3
(2) No district shall receive a combined total of more than twenty (20) incentive percentage 4
points for projects that commence construction by December 30, 2023 June 30, 2024, and five (5) 5
incentive points for projects that commence construction thereafter; provided further, these caps 6
shall be in addition to amounts received under §§ 16-7-40(a)(1), and 16-7-40(a)(2), and 16-7-40(b). 7
Furthermore, a district’s share shall not be decreased by more than half of its regular share 8
irrespective of the number of incentive points received nor shall a district’s state share increase by 9
more than half of its regular share, including amounts received under §§ 16-7-40(a)(1) and 16-7-10
40(a)(2), irrespective of the number of incentive points received. 11
16-7-40. Increased school housing ratio. 12
(a)(1) In the case of regional school districts, the school housing aid ratio shall be increased 13
by two percent (2%) for each grade so consolidated. 14
(2) Regional school districts undertaking renovation project(s) shall receive an increased 15
share ratio of four percent (4%) for those specific project(s) only, in addition to the combined share 16
ratio calculated in § 16-7-39 and this subsection. 17
(b) In the case of projects undertaken by districts specifically for the purposes of high-18
performance school design school and/or safety and security, the school housing aid share ratio 19
shall be increased by five percent (5%) for these specific projects only, in the calculation of school 20
housing aid. The increased share ratio shall continue to be applied for as long as the project(s) 21
receives state housing aid. In order to qualify for the increased share ratio, seventy-five percent 22
(75%) of the project costs must be specifically directed to school safety and security measures. The 23
council on elementary and secondary education shall promulgate rules and regulations for the 24
administration and operation of this section. 25
(c) For purposes of addressing health and safety deficiencies as defined by the school 26
building authority, including the remediation of hazardous materials, the school housing aid ratio 27
shall be increased by five percent (5%) so long as the construction of the project commences by 28
December 30, 2023, is completed by December 30, 2028, and a two hundred fifty million dollar 29
($250,000,000) general obligation bond is approved on the November 2018 ballot. In order to 30
qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a minimum 31
of five hundred thousand dollars ($500,000) must be specifically directed to this purpose. 32
(d) For purposes of educational enhancement, including projects devoted to the 33
enhancement of early childhood education and career and technical education, the school housing 34
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aid ratio shall be increased by five percent (5%) so long as construction of the project commences 1
by December 30, 2023, is completed by December 30, 2028, and a two hundred fifty million dollar 2
($250,000,000) general obligation bond is approved on the November 2018 ballot. In order to 3
qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a minimum 4
of five hundred thousand dollars ($500,000) must be specifically directed to these purposes. 5
(e) For replacement of a facility that has a facilities condition index of sixty-five percent 6
(65%) or higher, the school housing ratio shall be increased by five percent (5%) so long as 7
construction of the project commences by December 30, 2023, is completed by December 30, 2028, 8
does not receive a bonus pursuant to subsection (f) or subsection (g), and a two hundred fifty million 9
dollar ($250,000,000) general obligation bond is approved on the November 2018 ballot. In order 10
to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a minimum 11
of five hundred thousand dollars ($500,000) must be specifically directed to this purpose. 12
(f) For any new construction or renovation that increases the functional utilization of any 13
facility from less than sixty percent (60%) to more than eighty percent (80%), including the 14
consolidation of school buildings within or across districts, the school housing aid ratio shall be 15
increased by five percent (5%) so long as construction of the project commences by December 30, 16
2023, is completed by December 30, 2028, and a two hundred fifty million dollar ($250,000,000) 17
general obligation bond is approved on the November 2018 ballot. In order to qualify for the 18
increased share ratio, twenty-five percent (25%) of the project costs or a minimum of five hundred 19
thousand dollars ($500,000) must be specifically directed to this purpose. 20
(g) For any new construction or renovation that decreases the functional utilization of any 21
facility from more than one hundred twenty percent (120%) to between eighty-five percent (85%) 22
to one hundred five percent (105%), the school housing ratio shall be increased by five percent 23
(5%) so long as construction of the project commences by December 30, 2023, is completed by 24
December 30, 2028, and a two hundred fifty million dollar ($250,000,000) general obligation bond 25
is approved on the November 2018 ballot. In order to qualify for the increased share ratio, twenty-26
five percent (25%) of the project costs or a minimum of five hundred thousand dollars ($500,000) 27
must be specifically directed to this purpose. 28
(h) For consolidation of two (2) or more school buildings, within or across districts into 29
one school building, the school housing aid ratio shall be increased by five percent (5%) so long as 30
construction of the project commences by December 30, 2023, is completed by December 30, 2028, 31
a two hundred fifty million dollar ($250,000,000) general obligation bond is approved on the 32
November 2018 ballot, and does not receive a bonus pursuant to subsection (f) or subsection (g). 33
In order to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a 34
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minimum of five hundred thousand dollars ($500,000) must be specifically directed to this purpose. 1
(i) Any regionalized and/or non-regionalized school district receiving an increased share 2
ratio for a project approved prior to July 1, 2018, shall continue to receive the increased share ratio 3
for as long as the project receives state housing aid. 4
16-7-41.1. Eligibility for reimbursement. 5
(a) School districts, not municipalities, may apply for and obtain approval for a project 6
under the necessity of school construction process set forth in the regulations of the council on 7
elementary and secondary education, provided, however, in the case of a municipality that issues 8
bonds through the Rhode Island health and educational building corporation to finance or refinance 9
school facilities for a school district that is not part of the municipality, the municipality may apply 10
for and obtain approval for a project. Such approval will remain valid until June 30 of the third 11
fiscal year following the fiscal year in which the council on elementary and secondary education’s 12
approval is granted. Only those projects undertaken at school facilities under the care and control 13
of the school committee and located on school property may qualify for reimbursement under §§ 14
16-7-35 — 16-7-47. Facilities with combined school and municipal uses or facilities that are 15
operated jointly with any other profit or nonprofit agency do not qualify for reimbursement under 16
§§ 16-7-35 — 16-7-47. Projects completed by June 30 of a fiscal year are eligible for 17
reimbursement in the following fiscal year. Interest payments are eligible for reimbursement the 18
year the bond is issued. A project for new school housing or additional housing shall be deemed to 19
be completed when the work has been officially accepted by the school committee or when the 20
housing is occupied for its intended use by the school committee, whichever is earlier. 21
(b) Notwithstanding the provisions of this section, the board of regents shall not grant final 22
approval for any project between June 30, 2011, and May 1, 2015, except for projects that are 23
necessitated by immediate health and safety reasons. In the event that a project is requested during 24
the moratorium because of immediate health and safety reasons, those proposals shall be reported 25
to the chairs of the house and senate finance committees. 26
(c) Any project approval granted prior to the adoption of the school construction 27
regulations in 2007, and which are currently inactive; and any project approval granted prior to the 28
adoption of the school construction regulations in 2007 which did not receive voter approval or 29
which has not been previously financed, are no longer eligible for reimbursement under this 30
chapter. The department of elementary and secondary education shall develop recommendations 31
for further cost containment strategies in the school housing aid program. 32
(d) Beginning July 1, 2015, the council on elementary and secondary education shall 33
approve new necessity of school construction applications on an annual basis. The department of 34
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elementary and secondary education shall develop an annual application timeline for local 1
education agencies seeking new necessity of school construction approvals. 2
(e) Beginning July 1, 2019, no state funding shall be provided for projects in excess of ten 3
million dollars ($10,000,000) unless the prime contractor for the project has received 4
prequalification from the school building authority. 5
(f) Beginning July 1, 2019, the necessity of school construction process set forth in the 6
regulations of the council on elementary and secondary education shall include a single statewide 7
process, developed with the consultation of the department of environmental management, that will 8
ensure community involvement throughout the investigation and remediation of contaminated 9
building sites for possible reuse as the location of a school. That process will fulfill all provisions 10
of § 23-19.14-5 related to the investigation of reuse of such sites for schools. 11
(g) Beginning July 1, 2019, school housing projects exceeding one million five hundred 12
thousand dollars ($1,500,000) subject to inflation shall include an owner’s program manager and a 13
commissioning agent. The cost of the program manager and commissioning agent shall be 14
considered a project cost eligible for aid pursuant to §§ 16-7-41 and 16-105-5. 15
(h) Temporary housing, or swing space, for students shall be a reimbursable expense so 16
long as a district can demonstrate that no other viable option to temporarily house students exists 17
and provided that use of the temporary space is time limited for a period not to exceed twenty-four 18
(24) months and tied to a specific construction project. 19
(i) Environmental site remediation, as defined by the school building authority, shall be a 20
reimbursable expense up to one million dollars ($1,000,000) per project. 21
(j) If, within thirty (30) years of construction, a newly constructed school is sold to a private 22
entity, the state shall receive a portion of the sale proceeds equal to that project’s housing aid 23
reimbursement rate at the time of project completion. 24
(k) All projects must comply with § 37-13-6, ensuring that prevailing wage laws are being 25
followed, and § 37-14.1-6, ensuring that minority business enterprises reach a minimum of ten 26
percent (10%) of the dollar value of the bid, and § 37-13-3.1, ensuring apprenticeship program 27
utilization. 28
(l) Using reviewable criteria, all projects seeking school housing aid shall complete an 29
independent, objective, reasoned study on all projects over ten million dollars ($10,000,000) to 30
determine whether adoption of a project labor agreement on the proposed project or projects will 31
help achieve the goals of the state purchases act. 32
SECTION 2. Section 16-105-3 of the General Laws in Chapter 16-105 entitled "School 33
Building Authority" is hereby amended to read as follows: 34
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16-105-3. Roles and responsibilities. 1
The school building authority roles and responsibilities shall include: 2
(1) Management of a system with the goal of ensuring equitable and adequate school 3
housing for all public school children in the state; 4
(2) Prevention of the cost of school housing from interfering with the effective operation 5
of the schools; 6
(3) Management of school housing aid in accordance with statute; 7
(4) Reviewing and making recommendations to the council on elementary and secondary 8
education on necessity of school construction applications for state school housing aid and the 9
school building authority capital fund, based on the recommendations of the school building 10
authority advisory board; 11
(5) Promulgating, managing, and maintaining school construction regulations, standards, 12
and guidelines applicable to the school housing program, based on the recommendations of the 13
school building authority advisory board, created in § 16-105-8. Said regulations shall require 14
conformance with the minority business enterprise requirements set forth in § 37-14.1-6; 15
(6) Developing a prequalification and review process for prime contractors, architects, and 16
engineers seeking to bid on projects in excess of ten million dollars ($10,000,000) in total costs 17
subject to inflation. Notwithstanding any general laws to the contrary, a prequalification shall be 18
valid for a maximum of two (2) years from the date of issuance. Factors to be considered by the 19
school building authority in granting a prequalification to prime contractors shall include, but not 20
be limited to, the contractor’s history of completing complex projects on time and on budget, track 21
record of compliance with applicable environmental and safety regulations, evidence that 22
completed prior projects prioritized the facility’s future maintainability, and compliance with 23
applicable requirements for the use of women and minority owned subcontractors; 24
(i) At least annually, a list of prequalified contractors, architects, and engineers shall be 25
publicly posted with all other program information; 26
(7) Providing technical assistance and guidance to school districts on the necessity of 27
school construction application process; 28
(8) Providing technical advice and assistance, training, and education to cities, towns, 29
and/or local education agencies and to general contractors, subcontractors, construction or project 30
managers, designers and others in planning, maintenance, and establishment of school facility 31
space; 32
(9) Developing a project priority system, based on the recommendations of the school 33
building authority advisory board, in accordance with school construction regulations for the school 34
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building authority capital fund, subject to review and, if necessary, to be revised on intervals not to 1
exceed five (5) years. Project priorities shall include, but not be limited to, the following order of 2
priorities: 3
(i) Projects to replace or renovate a building that is structurally unsound or otherwise in a 4
condition seriously jeopardizing the health and safety of school children where no alternative exists; 5
(ii) Projects needed to prevent loss of accreditation; 6
(iii) Projects needed for the replacement, renovation, or modernization of the HVAC 7
system in any schoolhouse to increase energy conservation and decrease energy-related costs in 8
said schoolhouse; 9
(iv) Projects needed to replace or add to obsolete buildings in order to provide for a full 10
range of programs consistent with state and approved local requirements; and 11
(v) Projects needed to comply with mandatory, instructional programs; 12
(10) Maintaining a current list of requested school projects and the priority given them; 13
(11) Collecting and maintaining readily available data on all the public school facilities in 14
the state; 15
(12) Collecting, maintaining, and making publicly available quarterly progress reports of 16
all ongoing school construction projects that shall include, at a minimum, the costs of the project 17
and the time schedule of the project; 18
(13) Recommending policies and procedures designed to reduce borrowing for school 19
construction programs at both state and local levels; 20
(14) At least every five (5) years, conducting a needs survey to ascertain the capital 21
construction, reconstruction, maintenance, and other capital needs for schools in each district of the 22
state, including public charter schools; 23
(15) Developing a formal enrollment projection model or using projection models already 24
available; 25
(16) Encouraging local education agencies to investigate opportunities for the maximum 26
utilization of space in and around the district; 27
(17) Collecting and maintaining a clearinghouse of prototypical school plans that may be 28
consulted by eligible applicants; 29
(18) Retaining the services of consultants, as necessary, to effectuate the roles and 30
responsibilities listed within this section; 31
(19) No district shall receive a combined total of more than twenty (20) incentive 32
percentage points for projects that commence construction by December 30, 2023, and five (5) 33
incentive points for projects that commence construction thereafter; provided further, these caps 34
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shall be in addition to amounts received under §§ 16-7-40(a)(1), and 16-7-40(a)(2), and 16-7-40(b). 1
Furthermore, a district’s share shall not be decreased by more than half of its regular share 2
irrespective of the number of incentive points received, nor shall a district’s state share increase by 3
more than half of its regular share, including amounts received under §§ 16-7-40(a)(1) and 16-7-4
40(a)(2), irrespective of the number of incentive points received. Notwithstanding any provision of 5
the general laws to the contrary, the reimbursement or aid received under this chapter or chapter 6
38.2 of title 45 shall not exceed one hundred percent (100%) of the sum of the total project costs 7
plus interest costs. If a two hundred and fifty million dollar ($250,000,000) general obligation bond 8
is approved on the November 2018 ballot, projects approved between May 1, 2015, and January 1, 9
2018, are eligible to receive incentive points (above and beyond what the project was awarded at 10
the time of approval) pursuant to § 16-7-39 and § 16-7-40. Provided, however, any project approved 11
during this time period with a project cost in excess of one million five hundred thousand dollars 12
($1,500,000), which does not include an owner’s program manager and a commissioning agent, 13
shall only be eligible to receive five (5) incentive points. Incentive points awarded pursuant to the 14
provisions of this subsection shall only be applied to reimbursements occurring on or after July 1, 15
2018. Any project approved between May 1, 2015, and January 1, 2018, that is withdrawn and/or 16
resubmitted for approval shall not be eligible for any incentive points. 17
SECTION 3. This act shall take effect upon passage. 18
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO EDUCATION -- FOUNDATION LEVEL SCH OOL SUPPORT
***
This act would require that all projects seeking school housing aid shall complete an 1
independent, objective, reasoned study on all projects over ten million dollars ($10,000,000) to 2
determine whether adoption of a project labor agreement on the proposed project(s) will help 3
achieve the goals of the state purchases act. 4
This act would take effect upon passage. 5
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