Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0455 Compare Versions

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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: Senators DiPalma, Britto, Murray, Acosta, Felag, Zurier, Euer, Pearson,
1717 and Ciccone
1818 Date Introduced: March 03, 2023
1919 Referred To: Senate Finance
2020
2121
2222 It is enacted by the General Assembly as follows:
2323 SECTION 1. Sections 16-7-39, 16-7-40 and 16-7-41.1 of the General Laws in Chapter 16-1
2424 7 entitled "Foundation Level School Support [See Title 16 Chapter 97 — The Rhode Island Board 2
2525 of Education Act]" are hereby amended to read as follows: 3
2626 16-7-39. Computation of school housing-aid ratio. 4
2727 For each community, the percent of state aid for school housing costs shall be computed in 5
2828 the following manner: 6
2929 (1) The adjusted equalized weighted assessed valuation for the district is divided by the 7
3030 resident average daily membership for the district (grades twelve (12) and below); (2) The adjusted 8
3131 equalized weighted assessed valuation for the state is divided by the resident average daily 9
3232 membership for the state (grades twelve (12) and below); (1) is then divided by (2) and the resultant 10
3333 ratio is multiplied by a factor currently set at sixty-two percent (62%) which represents the 11
3434 approximate average district share of school support; the resulting product is then subtracted from 12
3535 one hundred percent (100%) to yield the housing aid share ratio, provided that in no case shall the 13
3636 ratio be less than thirty percent (30%). Provided, that effective July 1, 2010, and annually at the 14
3737 start of each fiscal year thereafter, the thirty percent (30%) floor on said housing-aid share shall be 15
3838 increased by five percent (5%) increments each year until said floor on the housing-aid share ratio 16
3939 reaches a minimum of not less than forty percent (40%). This provision shall apply only to school 17
4040 housing projects completed after June 30, 2010, that received approval from the board of regents 18
4141 prior to June 30, 2012. Provided further, for the fiscal year beginning July 1, 2012, and for 19
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4545 subsequent fiscal years, the minimum housing aid share shall be thirty-five percent (35%) for all 1
4646 projects receiving council on elementary and secondary education approval after June 30, 2012. 2
4747 The resident average daily membership shall be determined in accordance with § 16-7-22(1). 3
4848 (2) No district shall receive a combined total of more than twenty (20) incentive percentage 4
4949 points for projects that commence construction by December 30, 2023 June 30, 2024, and five (5) 5
5050 incentive points for projects that commence construction thereafter; provided further, these caps 6
5151 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
5252 Furthermore, a district’s share shall not be decreased by more than half of its regular share 8
5353 irrespective of the number of incentive points received nor shall a district’s state share increase by 9
5454 more than half of its regular share, including amounts received under §§ 16-7-40(a)(1) and 16-7-10
5555 40(a)(2), irrespective of the number of incentive points received. 11
5656 16-7-40. Increased school housing ratio. 12
5757 (a)(1) In the case of regional school districts, the school housing aid ratio shall be increased 13
5858 by two percent (2%) for each grade so consolidated. 14
5959 (2) Regional school districts undertaking renovation project(s) shall receive an increased 15
6060 share ratio of four percent (4%) for those specific project(s) only, in addition to the combined share 16
6161 ratio calculated in § 16-7-39 and this subsection. 17
6262 (b) In the case of projects undertaken by districts specifically for the purposes of high-18
6363 performance school design school and/or safety and security, the school housing aid share ratio 19
6464 shall be increased by five percent (5%) for these specific projects only, in the calculation of school 20
6565 housing aid. The increased share ratio shall continue to be applied for as long as the project(s) 21
6666 receives state housing aid. In order to qualify for the increased share ratio, seventy-five percent 22
6767 (75%) of the project costs must be specifically directed to school safety and security measures. The 23
6868 council on elementary and secondary education shall promulgate rules and regulations for the 24
6969 administration and operation of this section. 25
7070 (c) For purposes of addressing health and safety deficiencies as defined by the school 26
7171 building authority, including the remediation of hazardous materials, the school housing aid ratio 27
7272 shall be increased by five percent (5%) so long as the construction of the project commences by 28
7373 December 30, 2023, is completed by December 30, 2028, and a two hundred fifty million dollar 29
7474 ($250,000,000) general obligation bond is approved on the November 2018 ballot. In order to 30
7575 qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a minimum 31
7676 of five hundred thousand dollars ($500,000) must be specifically directed to this purpose. 32
7777 (d) For purposes of educational enhancement, including projects devoted to the 33
7878 enhancement of early childhood education and career and technical education, the school housing 34
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8282 aid ratio shall be increased by five percent (5%) so long as construction of the project commences 1
8383 by December 30, 2023, is completed by December 30, 2028, and a two hundred fifty million dollar 2
8484 ($250,000,000) general obligation bond is approved on the November 2018 ballot. In order to 3
8585 qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a minimum 4
8686 of five hundred thousand dollars ($500,000) must be specifically directed to these purposes. 5
8787 (e) For replacement of a facility that has a facilities condition index of sixty-five percent 6
8888 (65%) or higher, the school housing ratio shall be increased by five percent (5%) so long as 7
8989 construction of the project commences by December 30, 2023, is completed by December 30, 2028, 8
9090 does not receive a bonus pursuant to subsection (f) or subsection (g), and a two hundred fifty million 9
9191 dollar ($250,000,000) general obligation bond is approved on the November 2018 ballot. In order 10
9292 to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a minimum 11
9393 of five hundred thousand dollars ($500,000) must be specifically directed to this purpose. 12
9494 (f) For any new construction or renovation that increases the functional utilization of any 13
9595 facility from less than sixty percent (60%) to more than eighty percent (80%), including the 14
9696 consolidation of school buildings within or across districts, the school housing aid ratio shall be 15
9797 increased by five percent (5%) so long as construction of the project commences by December 30, 16
9898 2023, is completed by December 30, 2028, and a two hundred fifty million dollar ($250,000,000) 17
9999 general obligation bond is approved on the November 2018 ballot. In order to qualify for the 18
100100 increased share ratio, twenty-five percent (25%) of the project costs or a minimum of five hundred 19
101101 thousand dollars ($500,000) must be specifically directed to this purpose. 20
102102 (g) For any new construction or renovation that decreases the functional utilization of any 21
103103 facility from more than one hundred twenty percent (120%) to between eighty-five percent (85%) 22
104104 to one hundred five percent (105%), the school housing ratio shall be increased by five percent 23
105105 (5%) so long as construction of the project commences by December 30, 2023, is completed by 24
106106 December 30, 2028, and a two hundred fifty million dollar ($250,000,000) general obligation bond 25
107107 is approved on the November 2018 ballot. In order to qualify for the increased share ratio, twenty-26
108108 five percent (25%) of the project costs or a minimum of five hundred thousand dollars ($500,000) 27
109109 must be specifically directed to this purpose. 28
110110 (h) For consolidation of two (2) or more school buildings, within or across districts into 29
111111 one school building, the school housing aid ratio shall be increased by five percent (5%) so long as 30
112112 construction of the project commences by December 30, 2023, is completed by December 30, 2028, 31
113113 a two hundred fifty million dollar ($250,000,000) general obligation bond is approved on the 32
114114 November 2018 ballot, and does not receive a bonus pursuant to subsection (f) or subsection (g). 33
115115 In order to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a 34
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119119 minimum of five hundred thousand dollars ($500,000) must be specifically directed to this purpose. 1
120120 (i) Any regionalized and/or non-regionalized school district receiving an increased share 2
121121 ratio for a project approved prior to July 1, 2018, shall continue to receive the increased share ratio 3
122122 for as long as the project receives state housing aid. 4
123123 16-7-41.1. Eligibility for reimbursement. 5
124124 (a) School districts, not municipalities, may apply for and obtain approval for a project 6
125125 under the necessity of school construction process set forth in the regulations of the council on 7
126126 elementary and secondary education, provided, however, in the case of a municipality that issues 8
127127 bonds through the Rhode Island health and educational building corporation to finance or refinance 9
128128 school facilities for a school district that is not part of the municipality, the municipality may apply 10
129129 for and obtain approval for a project. Such approval will remain valid until June 30 of the third 11
130130 fiscal year following the fiscal year in which the council on elementary and secondary education’s 12
131131 approval is granted. Only those projects undertaken at school facilities under the care and control 13
132132 of the school committee and located on school property may qualify for reimbursement under §§ 14
133133 16-7-35 — 16-7-47. Facilities with combined school and municipal uses or facilities that are 15
134134 operated jointly with any other profit or nonprofit agency do not qualify for reimbursement under 16
135135 §§ 16-7-35 — 16-7-47. Projects completed by June 30 of a fiscal year are eligible for 17
136136 reimbursement in the following fiscal year. Interest payments are eligible for reimbursement the 18
137137 year the bond is issued. A project for new school housing or additional housing shall be deemed to 19
138138 be completed when the work has been officially accepted by the school committee or when the 20
139139 housing is occupied for its intended use by the school committee, whichever is earlier. 21
140140 (b) Notwithstanding the provisions of this section, the board of regents shall not grant final 22
141141 approval for any project between June 30, 2011, and May 1, 2015, except for projects that are 23
142142 necessitated by immediate health and safety reasons. In the event that a project is requested during 24
143143 the moratorium because of immediate health and safety reasons, those proposals shall be reported 25
144144 to the chairs of the house and senate finance committees. 26
145145 (c) Any project approval granted prior to the adoption of the school construction 27
146146 regulations in 2007, and which are currently inactive; and any project approval granted prior to the 28
147147 adoption of the school construction regulations in 2007 which did not receive voter approval or 29
148148 which has not been previously financed, are no longer eligible for reimbursement under this 30
149149 chapter. The department of elementary and secondary education shall develop recommendations 31
150150 for further cost containment strategies in the school housing aid program. 32
151151 (d) Beginning July 1, 2015, the council on elementary and secondary education shall 33
152152 approve new necessity of school construction applications on an annual basis. The department of 34
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156156 elementary and secondary education shall develop an annual application timeline for local 1
157157 education agencies seeking new necessity of school construction approvals. 2
158158 (e) Beginning July 1, 2019, no state funding shall be provided for projects in excess of ten 3
159159 million dollars ($10,000,000) unless the prime contractor for the project has received 4
160160 prequalification from the school building authority. 5
161161 (f) Beginning July 1, 2019, the necessity of school construction process set forth in the 6
162162 regulations of the council on elementary and secondary education shall include a single statewide 7
163163 process, developed with the consultation of the department of environmental management, that will 8
164164 ensure community involvement throughout the investigation and remediation of contaminated 9
165165 building sites for possible reuse as the location of a school. That process will fulfill all provisions 10
166166 of § 23-19.14-5 related to the investigation of reuse of such sites for schools. 11
167167 (g) Beginning July 1, 2019, school housing projects exceeding one million five hundred 12
168168 thousand dollars ($1,500,000) subject to inflation shall include an owner’s program manager and a 13
169169 commissioning agent. The cost of the program manager and commissioning agent shall be 14
170170 considered a project cost eligible for aid pursuant to §§ 16-7-41 and 16-105-5. 15
171171 (h) Temporary housing, or swing space, for students shall be a reimbursable expense so 16
172172 long as a district can demonstrate that no other viable option to temporarily house students exists 17
173173 and provided that use of the temporary space is time limited for a period not to exceed twenty-four 18
174174 (24) months and tied to a specific construction project. 19
175175 (i) Environmental site remediation, as defined by the school building authority, shall be a 20
176176 reimbursable expense up to one million dollars ($1,000,000) per project. 21
177177 (j) If, within thirty (30) years of construction, a newly constructed school is sold to a private 22
178178 entity, the state shall receive a portion of the sale proceeds equal to that project’s housing aid 23
179179 reimbursement rate at the time of project completion. 24
180180 (k) All projects must comply with § 37-13-6, ensuring that prevailing wage laws are being 25
181181 followed, and § 37-14.1-6, ensuring that minority business enterprises reach a minimum of ten 26
182182 percent (10%) of the dollar value of the bid, and § 37-13-3.1, ensuring apprenticeship program 27
183183 utilization. 28
184184 (l) Using reviewable criteria, all projects seeking school housing aid shall complete an 29
185185 independent, objective, reasoned study on all projects over ten million dollars ($10,000,000) to 30
186186 determine whether adoption of a project labor agreement on the proposed project or projects will 31
187187 help achieve the goals of the state purchases act. 32
188188 SECTION 2. Section 16-105-3 of the General Laws in Chapter 16-105 entitled "School 33
189189 Building Authority" is hereby amended to read as follows: 34
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193193 16-105-3. Roles and responsibilities. 1
194194 The school building authority roles and responsibilities shall include: 2
195195 (1) Management of a system with the goal of ensuring equitable and adequate school 3
196196 housing for all public school children in the state; 4
197197 (2) Prevention of the cost of school housing from interfering with the effective operation 5
198198 of the schools; 6
199199 (3) Management of school housing aid in accordance with statute; 7
200200 (4) Reviewing and making recommendations to the council on elementary and secondary 8
201201 education on necessity of school construction applications for state school housing aid and the 9
202202 school building authority capital fund, based on the recommendations of the school building 10
203203 authority advisory board; 11
204204 (5) Promulgating, managing, and maintaining school construction regulations, standards, 12
205205 and guidelines applicable to the school housing program, based on the recommendations of the 13
206206 school building authority advisory board, created in § 16-105-8. Said regulations shall require 14
207207 conformance with the minority business enterprise requirements set forth in § 37-14.1-6; 15
208208 (6) Developing a prequalification and review process for prime contractors, architects, and 16
209209 engineers seeking to bid on projects in excess of ten million dollars ($10,000,000) in total costs 17
210210 subject to inflation. Notwithstanding any general laws to the contrary, a prequalification shall be 18
211211 valid for a maximum of two (2) years from the date of issuance. Factors to be considered by the 19
212212 school building authority in granting a prequalification to prime contractors shall include, but not 20
213213 be limited to, the contractor’s history of completing complex projects on time and on budget, track 21
214214 record of compliance with applicable environmental and safety regulations, evidence that 22
215215 completed prior projects prioritized the facility’s future maintainability, and compliance with 23
216216 applicable requirements for the use of women and minority owned subcontractors; 24
217217 (i) At least annually, a list of prequalified contractors, architects, and engineers shall be 25
218218 publicly posted with all other program information; 26
219219 (7) Providing technical assistance and guidance to school districts on the necessity of 27
220220 school construction application process; 28
221221 (8) Providing technical advice and assistance, training, and education to cities, towns, 29
222222 and/or local education agencies and to general contractors, subcontractors, construction or project 30
223223 managers, designers and others in planning, maintenance, and establishment of school facility 31
224224 space; 32
225225 (9) Developing a project priority system, based on the recommendations of the school 33
226226 building authority advisory board, in accordance with school construction regulations for the school 34
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230230 building authority capital fund, subject to review and, if necessary, to be revised on intervals not to 1
231231 exceed five (5) years. Project priorities shall include, but not be limited to, the following order of 2
232232 priorities: 3
233233 (i) Projects to replace or renovate a building that is structurally unsound or otherwise in a 4
234234 condition seriously jeopardizing the health and safety of school children where no alternative exists; 5
235235 (ii) Projects needed to prevent loss of accreditation; 6
236236 (iii) Projects needed for the replacement, renovation, or modernization of the HVAC 7
237237 system in any schoolhouse to increase energy conservation and decrease energy-related costs in 8
238238 said schoolhouse; 9
239239 (iv) Projects needed to replace or add to obsolete buildings in order to provide for a full 10
240240 range of programs consistent with state and approved local requirements; and 11
241241 (v) Projects needed to comply with mandatory, instructional programs; 12
242242 (10) Maintaining a current list of requested school projects and the priority given them; 13
243243 (11) Collecting and maintaining readily available data on all the public school facilities in 14
244244 the state; 15
245245 (12) Collecting, maintaining, and making publicly available quarterly progress reports of 16
246246 all ongoing school construction projects that shall include, at a minimum, the costs of the project 17
247247 and the time schedule of the project; 18
248248 (13) Recommending policies and procedures designed to reduce borrowing for school 19
249249 construction programs at both state and local levels; 20
250250 (14) At least every five (5) years, conducting a needs survey to ascertain the capital 21
251251 construction, reconstruction, maintenance, and other capital needs for schools in each district of the 22
252252 state, including public charter schools; 23
253253 (15) Developing a formal enrollment projection model or using projection models already 24
254254 available; 25
255255 (16) Encouraging local education agencies to investigate opportunities for the maximum 26
256256 utilization of space in and around the district; 27
257257 (17) Collecting and maintaining a clearinghouse of prototypical school plans that may be 28
258258 consulted by eligible applicants; 29
259259 (18) Retaining the services of consultants, as necessary, to effectuate the roles and 30
260260 responsibilities listed within this section; 31
261261 (19) No district shall receive a combined total of more than twenty (20) incentive 32
262262 percentage points for projects that commence construction by December 30, 2023, and five (5) 33
263263 incentive points for projects that commence construction thereafter; provided further, these caps 34
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267267 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
268268 Furthermore, a district’s share shall not be decreased by more than half of its regular share 2
269269 irrespective of the number of incentive points received, nor shall a district’s state share increase by 3
270270 more than half of its regular share, including amounts received under §§ 16-7-40(a)(1) and 16-7-4
271271 40(a)(2), irrespective of the number of incentive points received. Notwithstanding any provision of 5
272272 the general laws to the contrary, the reimbursement or aid received under this chapter or chapter 6
273273 38.2 of title 45 shall not exceed one hundred percent (100%) of the sum of the total project costs 7
274274 plus interest costs. If a two hundred and fifty million dollar ($250,000,000) general obligation bond 8
275275 is approved on the November 2018 ballot, projects approved between May 1, 2015, and January 1, 9
276276 2018, are eligible to receive incentive points (above and beyond what the project was awarded at 10
277277 the time of approval) pursuant to § 16-7-39 and § 16-7-40. Provided, however, any project approved 11
278278 during this time period with a project cost in excess of one million five hundred thousand dollars 12
279279 ($1,500,000), which does not include an owner’s program manager and a commissioning agent, 13
280280 shall only be eligible to receive five (5) incentive points. Incentive points awarded pursuant to the 14
281281 provisions of this subsection shall only be applied to reimbursements occurring on or after July 1, 15
282282 2018. Any project approved between May 1, 2015, and January 1, 2018, that is withdrawn and/or 16
283283 resubmitted for approval shall not be eligible for any incentive points. 17
284284 SECTION 3. This act shall take effect upon passage. 18
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291291 EXPLANATION
292292 BY THE LEGISLATIVE COUNCIL
293293 OF
294294 A N A C T
295295 RELATING TO EDUCATION -- FOUNDATION LEVEL SCH OOL SUPPORT
296296 ***
297297 This act would require that all projects seeking school housing aid shall complete an 1
298298 independent, objective, reasoned study on all projects over ten million dollars ($10,000,000) to 2
299299 determine whether adoption of a project labor agreement on the proposed project(s) will help 3
300300 achieve the goals of the state purchases act. 4
301301 This act would take effect upon passage. 5
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