Rhode Island 2023 Regular Session

Rhode Island House Bill H6111 Compare Versions

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55 2023 -- H 6111
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99 S TATE OF RHODE IS LAND
1010 IN GENERAL ASSEMBLY
1111 JANUARY SESSION, A.D. 2023
1212 ____________
1313
1414 A N A C T
1515 RELATING TO EDUCATION -- FOUNDATION LEVEL SCHOOL SUPPORT
1616 Introduced By: Representatives Cortvriend, McEntee, Finkelman, and Shallcross Smith
1717 Date Introduced: March 03, 2023
1818 Referred To: House Finance
1919
2020
2121 It is enacted by the General Assembly as follows:
2222 SECTION 1. Sections 16-7-39, 16-7-40 and 16-7-41.1 of the General Laws in Chapter 16-1
2323 7 entitled "Foundation Level School Support [See Title 16 Chapter 97 — The Rhode Island Board 2
2424 of Education Act]" are hereby amended to read as follows: 3
2525 16-7-39. Computation of school housing-aid ratio. 4
2626 For each community, the percent of state aid for school housing costs shall be computed in 5
2727 the following manner: 6
2828 (1) The adjusted equalized weighted assessed valuation for the district is divided by the 7
2929 resident average daily membership for the district (grades twelve (12) and below); (2) The adjusted 8
3030 equalized weighted assessed valuation for the state is divided by the resident average daily 9
3131 membership for the state (grades twelve (12) and below); (1) is then divided by (2) and the resultant 10
3232 ratio is multiplied by a factor currently set at sixty-two percent (62%) which represents the 11
3333 approximate average district share of school support; the resulting product is then subtracted from 12
3434 one hundred percent (100%) to yield the housing aid share ratio, provided that in no case shall the 13
3535 ratio be less than thirty percent (30%). Provided, that effective July 1, 2010, and annually at the 14
3636 start of each fiscal year thereafter, the thirty percent (30%) floor on said housing-aid share shall be 15
3737 increased by five percent (5%) increments each year until said floor on the housing-aid share ratio 16
3838 reaches a minimum of not less than forty percent (40%). This provision shall apply only to school 17
3939 housing projects completed after June 30, 2010, that received approval from the board of regents 18
4040 prior to June 30, 2012. Provided further, for the fiscal year beginning July 1, 2012, and for 19
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4444 subsequent fiscal years, the minimum housing aid share shall be thirty-five percent (35%) for all 1
4545 projects receiving council on elementary and secondary education approval after June 30, 2012. 2
4646 The resident average daily membership shall be determined in accordance with § 16-7-22(1). 3
4747 (2) No district shall receive a combined total of more than twenty (20) incentive percentage 4
4848 points for projects that commence construction by December 30, 2023 June 30, 2024, and five (5) 5
4949 incentive points for projects that commence construction thereafter; provided further, these caps 6
5050 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
5151 Furthermore, a district’s share shall not be decreased by more than half of its regular share 8
5252 irrespective of the number of incentive points received nor shall a district’s state share increase by 9
5353 more than half of its regular share, including amounts received under §§ 16-7-40(a)(1) and 16-7-10
5454 40(a)(2), irrespective of the number of incentive points received. 11
5555 16-7-40. Increased school housing ratio. 12
5656 (a)(1) In the case of regional school districts, the school housing aid ratio shall be increased 13
5757 by two percent (2%) for each grade so consolidated. 14
5858 (2) Regional school districts undertaking renovation project(s) shall receive an increased 15
5959 share ratio of four percent (4%) for those specific project(s) only, in addition to the combined share 16
6060 ratio calculated in § 16-7-39 and this subsection. 17
6161 (b) In the case of projects undertaken by districts specifically for the purposes of high-18
6262 performance school design school and/or safety and security, the school housing aid share ratio 19
6363 shall be increased by five percent (5%) for these specific projects only, in the calculation of school 20
6464 housing aid. The increased share ratio shall continue to be applied for as long as the project(s) 21
6565 receives state housing aid. In order to qualify for the increased share ratio, seventy-five percent 22
6666 (75%) of the project costs must be specifically directed to school safety and security measures. The 23
6767 council on elementary and secondary education shall promulgate rules and regulations for the 24
6868 administration and operation of this section. 25
6969 (c) For purposes of addressing health and safety deficiencies as defined by the school 26
7070 building authority, including the remediation of hazardous materials, the school housing aid ratio 27
7171 shall be increased by five percent (5%) so long as the construction of the project commences by 28
7272 December 30, 2023, is completed by December 30, 2028, and a two hundred fifty million dollar 29
7373 ($250,000,000) general obligation bond is approved on the November 2018 ballot. In order to 30
7474 qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a minimum 31
7575 of five hundred thousand dollars ($500,000) must be specifically directed to this purpose. 32
7676 (d) For purposes of educational enhancement, including projects devoted to the 33
7777 enhancement of early childhood education and career and technical education, the school housing 34
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8181 aid ratio shall be increased by five percent (5%) so long as construction of the project commences 1
8282 by December 30, 2023, is completed by December 30, 2028, and a two hundred fifty million dollar 2
8383 ($250,000,000) general obligation bond is approved on the November 2018 ballot. In order to 3
8484 qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a minimum 4
8585 of five hundred thousand dollars ($500,000) must be specifically directed to these purposes. 5
8686 (e) For replacement of a facility that has a facilities condition index of sixty-five percent 6
8787 (65%) or higher, the school housing ratio shall be increased by five percent (5%) so long as 7
8888 construction of the project commences by December 30, 2023, is completed by December 30, 2028, 8
8989 does not receive a bonus pursuant to subsection (f) or subsection (g), and a two hundred fifty million 9
9090 dollar ($250,000,000) general obligation bond is approved on the November 2018 ballot. In order 10
9191 to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a minimum 11
9292 of five hundred thousand dollars ($500,000) must be specifically directed to this purpose. 12
9393 (f) For any new construction or renovation that increases the functional utilization of any 13
9494 facility from less than sixty percent (60%) to more than eighty percent (80%), including the 14
9595 consolidation of school buildings within or across districts, the school housing aid ratio shall be 15
9696 increased by five percent (5%) so long as construction of the project commences by December 30, 16
9797 2023, is completed by December 30, 2028, and a two hundred fifty million dollar ($250,000,000) 17
9898 general obligation bond is approved on the November 2018 ballot. In order to qualify for the 18
9999 increased share ratio, twenty-five percent (25%) of the project costs or a minimum of five hundred 19
100100 thousand dollars ($500,000) must be specifically directed to this purpose. 20
101101 (g) For any new construction or renovation that decreases the functional utilization of any 21
102102 facility from more than one hundred twenty percent (120%) to between eighty-five percent (85%) 22
103103 to one hundred five percent (105%), the school housing ratio shall be increased by five percent 23
104104 (5%) so long as construction of the project commences by December 30, 2023, is completed by 24
105105 December 30, 2028, and a two hundred fifty million dollar ($250,000,000) general obligation bond 25
106106 is approved on the November 2018 ballot. In order to qualify for the increased share ratio, twenty-26
107107 five percent (25%) of the project costs or a minimum of five hundred thousand dollars ($500,000) 27
108108 must be specifically directed to this purpose. 28
109109 (h) For consolidation of two (2) or more school buildings, within or across districts into 29
110110 one school building, the school housing aid ratio shall be increased by five percent (5%) so long as 30
111111 construction of the project commences by December 30, 2023, is completed by December 30, 2028, 31
112112 a two hundred fifty million dollar ($250,000,000) general obligation bond is approved on the 32
113113 November 2018 ballot, and does not receive a bonus pursuant to subsection (f) or subsection (g). 33
114114 In order to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a 34
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118118 minimum of five hundred thousand dollars ($500,000) must be specifically directed to this purpose. 1
119119 (i) Any regionalized and/or non-regionalized school district receiving an increased share 2
120120 ratio for a project approved prior to July 1, 2018, shall continue to receive the increased share ratio 3
121121 for as long as the project receives state housing aid. 4
122122 16-7-41.1. Eligibility for reimbursement. 5
123123 (a) School districts, not municipalities, may apply for and obtain approval for a project 6
124124 under the necessity of school construction process set forth in the regulations of the council on 7
125125 elementary and secondary education, provided, however, in the case of a municipality that issues 8
126126 bonds through the Rhode Island health and educational building corporation to finance or refinance 9
127127 school facilities for a school district that is not part of the municipality, the municipality may apply 10
128128 for and obtain approval for a project. Such approval will remain valid until June 30 of the third 11
129129 fiscal year following the fiscal year in which the council on elementary and secondary education’s 12
130130 approval is granted. Only those projects undertaken at school facilities under the care and control 13
131131 of the school committee and located on school property may qualify for reimbursement under §§ 14
132132 16-7-35 — 16-7-47. Facilities with combined school and municipal uses or facilities that are 15
133133 operated jointly with any other profit or nonprofit agency do not qualify for reimbursement under 16
134134 §§ 16-7-35 — 16-7-47. Projects completed by June 30 of a fiscal year are eligible for 17
135135 reimbursement in the following fiscal year. Interest payments are eligible for reimbursement the 18
136136 year the bond is issued. A project for new school housing or additional housing shall be deemed to 19
137137 be completed when the work has been officially accepted by the school committee or when the 20
138138 housing is occupied for its intended use by the school committee, whichever is earlier. 21
139139 (b) Notwithstanding the provisions of this section, the board of regents shall not grant final 22
140140 approval for any project between June 30, 2011, and May 1, 2015, except for projects that are 23
141141 necessitated by immediate health and safety reasons. In the event that a project is requested during 24
142142 the moratorium because of immediate health and safety reasons, those proposals shall be reported 25
143143 to the chairs of the house and senate finance committees. 26
144144 (c) Any project approval granted prior to the adoption of the school construction 27
145145 regulations in 2007, and which are currently inactive; and any project approval granted prior to the 28
146146 adoption of the school construction regulations in 2007 which did not receive voter approval or 29
147147 which has not been previously financed, are no longer eligible for reimbursement under this 30
148148 chapter. The department of elementary and secondary education shall develop recommendations 31
149149 for further cost containment strategies in the school housing aid program. 32
150150 (d) Beginning July 1, 2015, the council on elementary and secondary education shall 33
151151 approve new necessity of school construction applications on an annual basis. The department of 34
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155155 elementary and secondary education shall develop an annual application timeline for local 1
156156 education agencies seeking new necessity of school construction approvals. 2
157157 (e) Beginning July 1, 2019, no state funding shall be provided for projects in excess of ten 3
158158 million dollars ($10,000,000) unless the prime contractor for the project has received 4
159159 prequalification from the school building authority. 5
160160 (f) Beginning July 1, 2019, the necessity of school construction process set forth in the 6
161161 regulations of the council on elementary and secondary education shall include a single statewide 7
162162 process, developed with the consultation of the department of environmental management, that will 8
163163 ensure community involvement throughout the investigation and remediation of contaminated 9
164164 building sites for possible reuse as the location of a school. That process will fulfill all provisions 10
165165 of § 23-19.14-5 related to the investigation of reuse of such sites for schools. 11
166166 (g) Beginning July 1, 2019, school housing projects exceeding one million five hundred 12
167167 thousand dollars ($1,500,000) subject to inflation shall include an owner’s program manager and a 13
168168 commissioning agent. The cost of the program manager and commissioning agent shall be 14
169169 considered a project cost eligible for aid pursuant to §§ 16-7-41 and 16-105-5. 15
170170 (h) Temporary housing, or swing space, for students shall be a reimbursable expense so 16
171171 long as a district can demonstrate that no other viable option to temporarily house students exists 17
172172 and provided that use of the temporary space is time limited for a period not to exceed twenty-four 18
173173 (24) months and tied to a specific construction project. 19
174174 (i) Environmental site remediation, as defined by the school building authority, shall be a 20
175175 reimbursable expense up to one million dollars ($1,000,000) per project. 21
176176 (j) If, within thirty (30) years of construction, a newly constructed school is sold to a private 22
177177 entity, the state shall receive a portion of the sale proceeds equal to that project’s housing aid 23
178178 reimbursement rate at the time of project completion. 24
179179 (k) All projects must comply with § 37-13-6, ensuring that prevailing wage laws are being 25
180180 followed, and § 37-14.1-6, ensuring that minority business enterprises reach a minimum of ten 26
181181 percent (10%) of the dollar value of the bid, and § 37-13-3.1, ensuring apprenticeship program 27
182182 utilization. 28
183183 (l) Using reviewable criteria, all projects seeking school housing aid shall complete an 29
184184 independent, objective, reasoned study on all projects over ten million dollars ($10,000,000) to 30
185185 determine whether adoption of a project labor agreement on the proposed project or projects will 31
186186 help achieve the goals of the state purchases act. 32
187187 SECTION 2. Section 16-105-3 of the General Laws in Chapter 16-105 entitled "School 33
188188 Building Authority" is hereby amended to read as follows: 34
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192192 16-105-3. Roles and responsibilities. 1
193193 The school building authority roles and responsibilities shall include: 2
194194 (1) Management of a system with the goal of ensuring equitable and adequate school 3
195195 housing for all public school children in the state; 4
196196 (2) Prevention of the cost of school housing from interfering with the effective operation 5
197197 of the schools; 6
198198 (3) Management of school housing aid in accordance with statute; 7
199199 (4) Reviewing and making recommendations to the council on elementary and secondary 8
200200 education on necessity of school construction applications for state school housing aid and the 9
201201 school building authority capital fund, based on the recommendations of the school building 10
202202 authority advisory board; 11
203203 (5) Promulgating, managing, and maintaining school construction regulations, standards, 12
204204 and guidelines applicable to the school housing program, based on the recommendations of the 13
205205 school building authority advisory board, created in § 16-105-8. Said regulations shall require 14
206206 conformance with the minority business enterprise requirements set forth in § 37-14.1-6; 15
207207 (6) Developing a prequalification and review process for prime contractors, architects, and 16
208208 engineers seeking to bid on projects in excess of ten million dollars ($10,000,000) in total costs 17
209209 subject to inflation. Notwithstanding any general laws to the contrary, a prequalification shall be 18
210210 valid for a maximum of two (2) years from the date of issuance. Factors to be considered by the 19
211211 school building authority in granting a prequalification to prime contractors shall include, but not 20
212212 be limited to, the contractor’s history of completing complex projects on time and on budget, track 21
213213 record of compliance with applicable environmental and safety regulations, evidence that 22
214214 completed prior projects prioritized the facility’s future maintainability, and compliance with 23
215215 applicable requirements for the use of women and minority owned subcontractors; 24
216216 (i) At least annually, a list of prequalified contractors, architects, and engineers shall be 25
217217 publicly posted with all other program information; 26
218218 (7) Providing technical assistance and guidance to school districts on the necessity of 27
219219 school construction application process; 28
220220 (8) Providing technical advice and assistance, training, and education to cities, towns, 29
221221 and/or local education agencies and to general contractors, subcontractors, construction or project 30
222222 managers, designers and others in planning, maintenance, and establishment of school facility 31
223223 space; 32
224224 (9) Developing a project priority system, based on the recommendations of the school 33
225225 building authority advisory board, in accordance with school construction regulations for the school 34
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229229 building authority capital fund, subject to review and, if necessary, to be revised on intervals not to 1
230230 exceed five (5) years. Project priorities shall include, but not be limited to, the following order of 2
231231 priorities: 3
232232 (i) Projects to replace or renovate a building that is structurally unsound or otherwise in a 4
233233 condition seriously jeopardizing the health and safety of school children where no alternative exists; 5
234234 (ii) Projects needed to prevent loss of accreditation; 6
235235 (iii) Projects needed for the replacement, renovation, or modernization of the HVAC 7
236236 system in any schoolhouse to increase energy conservation and decrease energy-related costs in 8
237237 said schoolhouse; 9
238238 (iv) Projects needed to replace or add to obsolete buildings in order to provide for a full 10
239239 range of programs consistent with state and approved local requirements; and 11
240240 (v) Projects needed to comply with mandatory, instructional programs; 12
241241 (10) Maintaining a current list of requested school projects and the priority given them; 13
242242 (11) Collecting and maintaining readily available data on all the public school facilities in 14
243243 the state; 15
244244 (12) Collecting, maintaining, and making publicly available quarterly progress reports of 16
245245 all ongoing school construction projects that shall include, at a minimum, the costs of the project 17
246246 and the time schedule of the project; 18
247247 (13) Recommending policies and procedures designed to reduce borrowing for school 19
248248 construction programs at both state and local levels; 20
249249 (14) At least every five (5) years, conducting a needs survey to ascertain the capital 21
250250 construction, reconstruction, maintenance, and other capital needs for schools in each district of the 22
251251 state, including public charter schools; 23
252252 (15) Developing a formal enrollment projection model or using projection models already 24
253253 available; 25
254254 (16) Encouraging local education agencies to investigate opportunities for the maximum 26
255255 utilization of space in and around the district; 27
256256 (17) Collecting and maintaining a clearinghouse of prototypical school plans that may be 28
257257 consulted by eligible applicants; 29
258258 (18) Retaining the services of consultants, as necessary, to effectuate the roles and 30
259259 responsibilities listed within this section; 31
260260 (19) No district shall receive a combined total of more than twenty (20) incentive 32
261261 percentage points for projects that commence construction by December 30, 2023, and five (5) 33
262262 incentive points for projects that commence construction thereafter; provided further, these caps 34
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266266 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
267267 Furthermore, a district’s share shall not be decreased by more than half of its regular share 2
268268 irrespective of the number of incentive points received, nor shall a district’s state share increase by 3
269269 more than half of its regular share, including amounts received under §§ 16-7-40(a)(1) and 16-7-4
270270 40(a)(2), irrespective of the number of incentive points received. Notwithstanding any provision of 5
271271 the general laws to the contrary, the reimbursement or aid received under this chapter or chapter 6
272272 38.2 of title 45 shall not exceed one hundred percent (100%) of the sum of the total project costs 7
273273 plus interest costs. If a two hundred and fifty million dollar ($250,000,000) general obligation bond 8
274274 is approved on the November 2018 ballot, projects approved between May 1, 2015, and January 1, 9
275275 2018, are eligible to receive incentive points (above and beyond what the project was awarded at 10
276276 the time of approval) pursuant to § 16-7-39 and § 16-7-40. Provided, however, any project approved 11
277277 during this time period with a project cost in excess of one million five hundred thousand dollars 12
278278 ($1,500,000), which does not include an owner’s program manager and a commissioning agent, 13
279279 shall only be eligible to receive five (5) incentive points. Incentive points awarded pursuant to the 14
280280 provisions of this subsection shall only be applied to reimbursements occurring on or after July 1, 15
281281 2018. Any project approved between May 1, 2015, and January 1, 2018, that is withdrawn and/or 16
282282 resubmitted for approval shall not be eligible for any incentive points. 17
283283 SECTION 3. This act shall take effect upon passage. 18
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290290 EXPLANATION
291291 BY THE LEGISLATIVE COUNCIL
292292 OF
293293 A N A C T
294294 RELATING TO EDUCATION -- FOUNDATION LEVEL SCH OOL SUPPORT
295295 ***
296296 This act would require that all projects seeking school housing aid shall complete an 1
297297 independent, objective, reasoned study on all projects over ten million dollars ($10,000,000) to 2
298298 determine whether adoption of a project labor agreement on the proposed project(s) will help 3
299299 achieve the goals of the state purchases act. 4
300300 This act would take effect upon passage. 5
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