2023 -- H 6330
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LC002860
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
____________
A N A C T
RELATING TO EDUCATION – FOUNDATION LEVEL SCHOOL SUPPORT
Introduced By: Representatives McNamara, Shekarchi, Bennett, Solomon, Vella-
Wilkinson, and Shanley
Date Introduced: April 26, 2023
Referred To: House Finance
It is enacted by the General Assembly as follows:
SECTION 1. Section 16-7-39 and 16-7-40 of the General Laws in Chapter 16-7 entitled 1
"Foundation Level School Support [See Title 16 Chapter 97 — The Rhode Island Board of 2
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 2024, and five (5) incentive 5
points for projects that commence construction thereafter; provided further, these caps shall be in 6
addition to amounts received under §§ 16-7-40(a)(1) and 16-7-40(a)(2). Furthermore, a district’s 7
share shall not be decreased by more than half of its regular share irrespective of the number of 8
incentive points received nor shall a district’s state share increase by more than half of its regular 9
share, including amounts received under §§ 16-7-40(a)(1) and 16-7-40(a)(2), irrespective of the 10
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 school 18
safety and security, the school housing aid share ratio shall be increased by five percent (5%) for 19
these specific projects only, in the calculation of school housing aid. The increased share ratio shall 20
continue to be applied for as long as the project(s) receives state housing aid. In order to qualify for 21
the increased share ratio, seventy-five percent (75%) of the project costs must be specifically 22
directed to school safety and security measures. The council on elementary and secondary 23
education shall promulgate rules and regulations for the administration and operation of this 24
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 2024, is completed by December 30, 2028 2029, and a two hundred fifty 29
million dollar ($250,000,000) general obligation bond is approved on the November 2018 ballot. 30
In order to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a 31
minimum 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 2024, is completed by December 30, 2028 2029, and a two hundred fifty 2
million dollar ($250,000,000) general obligation bond is approved on the November 2018 ballot. 3
In order to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a 4
minimum of five hundred thousand dollars ($500,000) must be specifically directed to these 5
purposes. 6
(e) For replacement of a facility that has a facilities condition index of sixty-five percent 7
(65%) or higher, the school housing ratio shall be increased by five percent (5%) so long as 8
construction of the project commences by December 30, 2023 2024, is completed by December 30, 9
2028 2029, does not receive a bonus pursuant to subsection (f) or subsection (g), and a two hundred 10
fifty million dollar ($250,000,000) general obligation bond is approved on the November 2018 11
ballot. In order to qualify for the increased share ratio, twenty-five percent (25%) of the project 12
costs or a minimum of five hundred thousand dollars ($500,000) must be specifically directed to 13
this purpose. 14
(f) For any new construction or renovation that increases the functional utilization of any 15
facility from less than sixty percent (60%) to more than eighty percent (80%), including the 16
consolidation of school buildings within or across districts, the school housing aid ratio shall be 17
increased by five percent (5%) so long as construction of the project commences by December 30, 18
2023 2024, is completed by December 30, 2028 2029, and a two hundred fifty million dollar 19
($250,000,000) general obligation bond is approved on the November 2018 ballot. In order to 20
qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a minimum 21
of five hundred thousand dollars ($500,000) must be specifically directed to this purpose. 22
(g) For any new construction or renovation that decreases the functional utilization of any 23
facility from more than one hundred twenty percent (120%) to between eighty-five percent (85%) 24
to one hundred five percent (105%), the school housing ratio shall be increased by five percent 25
(5%) so long as construction of the project commences by December 30, 2023 2024, is completed 26
by December 30, 2028 2029, and a two hundred fifty million dollar ($250,000,000) general 27
obligation bond is approved on the November 2018 ballot. In order to qualify for the increased 28
share ratio, twenty-five percent (25%) of the project costs or a minimum of five hundred thousand 29
dollars ($500,000) must be specifically directed to this purpose. 30
(h) For consolidation of two (2) or more school buildings, within or across districts into 31
one school building, the school housing aid ratio shall be increased by five percent (5%) so long as 32
construction of the project commences by December 30, 2023 2024, is completed by December 30, 33
2028 2029, a two hundred fifty million dollar ($250,000,000) general obligation bond is approved 34
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on the November 2018 ballot, and does not receive a bonus pursuant to subsection (f) or subsection 1
(g). In order to qualify for the increased share ratio, twenty-five percent (25%) of the project costs 2
or a minimum of five hundred thousand dollars ($500,000) must be specifically directed to this 3
purpose. 4
(i) Any regionalized and/or non-regionalized school district receiving an increased share 5
ratio for a project approved prior to July 1, 2018, shall continue to receive the increased share ratio 6
for as long as the project receives state housing aid. 7
(j) The deadlines for construction and completion set forth in this section are not related to, 8
or conditioned on, the two hundred fifty million dollar ($250,000,000) general obligation bond 9
approved by state voters on the November 2022 ballot. Increased housing aid provided for in this 10
section is funded from state bonds proceeds, annual state appropriations, and other sources. 11
SECTION 2. Section 16-105-3 of the General Laws in Chapter 16-105 entitled "School 12
Building Authority" is hereby amended to read as follows: 13
16-105-3. Roles and responsibilities. 14
The school building authority roles and responsibilities shall include: 15
(1) Management of a system with the goal of ensuring equitable and adequate school 16
housing for all public school children in the state; 17
(2) Prevention of the cost of school housing from interfering with the effective operation 18
of the schools; 19
(3) Management of school housing aid in accordance with statute; 20
(4) Reviewing and making recommendations to the council on elementary and secondary 21
education on necessity of school construction applications for state school housing aid and the 22
school building authority capital fund, based on the recommendations of the school building 23
authority advisory board; 24
(5) Promulgating, managing, and maintaining school construction regulations, standards, 25
and guidelines applicable to the school housing program, based on the recommendations of the 26
school building authority advisory board, created in § 16-105-8. Said regulations shall require 27
conformance with the minority business enterprise requirements set forth in § 37-14.1-6; 28
(6) Developing a prequalification and review process for prime contractors, architects, and 29
engineers seeking to bid on projects in excess of ten million dollars ($10,000,000) in total costs 30
subject to inflation. Notwithstanding any general laws to the contrary, a prequalification shall be 31
valid for a maximum of two (2) years from the date of issuance. Factors to be considered by the 32
school building authority in granting a prequalification to prime contractors shall include, but not 33
be limited to, the contractor’s history of completing complex projects on time and on budget, track 34
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record of compliance with applicable environmental and safety regulations, evidence that 1
completed prior projects prioritized the facility’s future maintainability, and compliance with 2
applicable requirements for the use of women and minority owned subcontractors; 3
(i) At least annually, a list of prequalified contractors, architects, and engineers shall be 4
publicly posted with all other program information; 5
(7) Providing technical assistance and guidance to school districts on the necessity of 6
school construction application process; 7
(8) Providing technical advice and assistance, training, and education to cities, towns, 8
and/or local education agencies and to general contractors, subcontractors, construction or project 9
managers, designers and others in planning, maintenance, and establishment of school facility 10
space; 11
(9) Developing a project priority system, based on the recommendations of the school 12
building authority advisory board, in accordance with school construction regulations for the school 13
building authority capital fund, subject to review and, if necessary, to be revised on intervals not to 14
exceed five (5) years. Project priorities shall include, but not be limited to, the following order of 15
priorities: 16
(i) Projects to replace or renovate a building that is structurally unsound or otherwise in a 17
condition seriously jeopardizing the health and safety of school children where no alternative exists; 18
(ii) Projects needed to prevent loss of accreditation; 19
(iii) Projects needed for the replacement, renovation, or modernization of the HVAC 20
system in any schoolhouse to increase energy conservation and decrease energy-related costs in 21
said schoolhouse; 22
(iv) Projects needed to replace or add to obsolete buildings in order to provide for a full 23
range of programs consistent with state and approved local requirements; and 24
(v) Projects needed to comply with mandatory, instructional programs; 25
(10) Maintaining a current list of requested school projects and the priority given them; 26
(11) Collecting and maintaining readily available data on all the public school facilities in 27
the state; 28
(12) Collecting, maintaining, and making publicly available quarterly progress reports of 29
all ongoing school construction projects that shall include, at a minimum, the costs of the project 30
and the time schedule of the project; 31
(13) Recommending policies and procedures designed to reduce borrowing for school 32
construction programs at both state and local levels; 33
(14) At least every five (5) years, conducting a needs survey to ascertain the capital 34
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construction, reconstruction, maintenance, and other capital needs for schools in each district of the 1
state, including public charter schools; 2
(15) Developing a formal enrollment projection model or using projection models already 3
available; 4
(16) Encouraging local education agencies to investigate opportunities for the maximum 5
utilization of space in and around the district; 6
(17) Collecting and maintaining a clearinghouse of prototypical school plans that may be 7
consulted by eligible applicants; 8
(18) Retaining the services of consultants, as necessary, to effectuate the roles and 9
responsibilities listed within this section; 10
(19) No district shall receive a combined total of more than twenty (20) incentive 11
percentage points for projects that commence construction by December 30, 2023 2024, and five 12
(5) incentive points for projects that commence construction thereafter; provided further, these caps 13
shall be in addition to amounts received under §§ 16-7-40(a)(1) and 16-7-40(a)(2). Furthermore, a 14
district’s share shall not be decreased by more than half of its regular share irrespective of the 15
number of incentive points received, nor shall a district’s state share increase by more than half of 16
its regular share, including amounts received under §§ 16-7-40(a)(1) and 16-7-40(a)(2), irrespective 17
of the number of incentive points received. Notwithstanding any provision of the general laws to 18
the contrary, the reimbursement or aid received under this chapter or chapter 38.2 of title 45 shall 19
not exceed one hundred percent (100%) of the sum of the total project costs plus interest costs. If 20
a two hundred and fifty million dollar ($250,000,000) general obligation bond is approved on the 21
November 2018 ballot, projects approved between May 1, 2015, and January 1, 2018, are eligible 22
to receive incentive points (above and beyond what the project was awarded at the time of approval) 23
pursuant to § 16-7-39 and § 16-7-40. Provided, however, any project approved during this time 24
period with a project cost in excess of one million five hundred thousand dollars ($1,500,000), 25
which does not include an owner’s program manager and a commissioning agent, shall only be 26
eligible to receive five (5) incentive points. Incentive points awarded pursuant to the provisions of 27
this subsection shall only be applied to reimbursements occurring on or after July 1, 2018. Any 28
project approved between May 1, 2015, and January 1, 2018, that is withdrawn and/or resubmitted 29
for approval shall not be eligible for any incentive points. 30
SECTION 3. This act shall take effect upon passage. 31
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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 amend provisions of state law that provide for increased housing aid for 1
certain school building projects by extending the deadlines for commencement and completion of 2
these school building projects by one year to December 30, 2024 and December 30, 2029, 3
respectively. 4
This act would take effect upon passage. 5
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LC002860
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