2014 -- S 3086

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LC005912

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - THE RHODE ISLAND

INFRASTRUCTURE AUTHORITY

     

     Introduced By: Senators Pearson, Conley, Satchell, Ottiano, and Metts

     Date Introduced: June 11, 2014

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND

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GOVERNMENT" is hereby amended by adding thereto the following chapters:

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CHAPTER 155

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THE RHODE ISLAND INFRASTRUCTURE AUTHORITY ACT

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     42-155-1. Short title. -- This chapter shall be known and may be cited as "The Rhode

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Island Infrastructure Authority Act."

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     42-155-2. Definitions. -- As used in this chapter, the following words and terms shall

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have the following meanings:

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     (1) "Authority" means the Rhode Island infrastructure authority established pursuant to

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the provisions of this chapter.

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     42-155-3. Establishment of Rhode Island infrastructure authority -- Purpose. -- (a)

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There is hereby authorized, created, and established a public corporation of the state having a

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distinct legal existence from the state and not constituting a department of state government to be

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known as "the Rhode Island infrastructure authority" and which may be referred to in this chapter

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as the "authority". The authority is constituted a public instrumentality exercising public and

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essential governmental functions, and the exercise by the authority of the powers conferred by

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this chapter shall be deemed and held to be the performance of an essential governmental

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function of the state.

 

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     (b) It is the intent of the general assembly by the passage of this chapter to vest in the

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authority all powers, authority, rights, privileges, and titles that may be necessary to enable it to

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accomplish the purposes herein set forth, and this chapter and the powers herein granted shall be

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liberally construed in conformity with those purposes.

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     (c) The authority is created, established, and incorporated for the purposes of managing

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the state's school housing aid program and other state infrastructure programs through the

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consolidation of existing state and quasi-public functions.

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     42-155-4. General powers. -- The authority shall have the following powers, together

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with all powers incidental thereto or necessary for the performance of those stated in this chapter:

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     (1) To have perpetual succession.

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     (2) To sue and be sued, complain and defend, in its corporate name.

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     (3) To have a corporate seal which may be altered at its pleasure, and to use the seal by

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causing it, or a facsimile of the seal, to be impressed or affixed or in any other manner

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reproduced.

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     (4) To purchase, take, receive, lease, or otherwise acquire, own, hold, improve, use, and

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otherwise deal in and with, real or personal property, or any interest therein, wherever situated.

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     (5) To sell, convey, mortgage, pledge, lease, exchange, transfer, and otherwise dispose of

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all or any part of its property and assets.

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     (6) To make and enter into all contracts, agreements, and guarantees and incur liabilities,

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borrow money at those rates of interest that the authority may determine, issue its notes, and other

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obligations, and secure any of its obligations by mortgage or pledge of all or any of its property,

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and income, necessary or incidental to the performance of its duties and the execution of its

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powers under this chapter.

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     (7) To conduct its business, carry on its operations, and have offices and exercise the

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powers granted by this chapter.

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     (8) To elect or appoint officers and agents of the authority, and to define their duties,

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including authority to employ attorneys, accountants, consultants and such other employees or

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agents as the authority shall deem necessary in its judgment.

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     (9) To make and alter by-laws, not inconsistent with this chapter.

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     (10) To accept grants, donations, loans of funds, and contributions in money, services,

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materials, or otherwise, from the United States or any of its agencies, from this state and its

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agencies or from any other source, and to use or expend those moneys, services, materials, or

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other contributions in carrying out the purposes of this chapter.

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     (11) To have and exercise all powers necessary or convenient to effect its purposes;

 

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provided however, that the authority shall not have any power to create, empower or otherwise

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establish any corporation, subsidiary corporation, corporate body, any form of partnership, or

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other separate entity without the express approval and authorization of the general assembly.

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     42-155-5. Appointment of members of the board of directors. -- (a) The authority

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shall be governed by an executive board which shall consist of seven (7) members as follows:

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     (1) The general treasurer, who shall serve as chair;

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     (2) The director of the department of administration;

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     (3) The commissioner of elementary and secondary education; and

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     (4) Four (4) directors who shall be appointed by the governor from the general public,

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with the advice and consent of the senate, each shall have expertise in educational facilities,

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construction, real estate, or finance. Each of the directors appointed by the governor from the

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general public shall serve a term pursuant to the provisions of §42-155-6. Provided, that a director

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may be reappointed to his or her position for a total of three (3) consecutive terms.

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     (b) A board member shall not receive compensation for his or her service on the board

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but may receive a per diem and reimbursement for travel and other necessary expenses, while

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engaged in the performance of official duties of the board.

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     (c) There shall not be any liability in a private capacity on the part of the board or any

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member of the board, or any officer or employee of the board, for or on account of any act

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performed or obligation entered into in an official capacity, when done in good faith, without

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intent to defraud, and in connection with the administration, management, or conduct of this title

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or affairs related to this title.

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     42-155-6. Members – Term of office -- Vacancies. -- (a) Two (2) of those new

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members first appointed by the governor pursuant to § 42-155-5 shall serve initial terms of three

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(3) years; one of those new members first appointed by the governor pursuant to § 42-155-5 shall

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serve an initial term of two (2) years; and one of those new members, appointed by the governor

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pursuant to § 42-155-5 shall serve an initial term of one year. Thereafter, all appointed members

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of the board shall be appointed to serve for terms of three (3) years.

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     (b) The board members shall be eligible to succeed themselves.

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     (c) A vacancy other than by expiration shall be filled in the manner of the original

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appointment but only for the unexpired portion of the term.

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     (d) Members of the board shall be removable by the governor pursuant to the provisions

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of § 36-1-7 and for cause only, and removal solely for partisan or personal reasons unrelated to

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capacity or fitness for the office shall be unlawful.

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     42-155-7. Officers – Quorum and vote required for action – Executive director. -- (a)

 

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The members shall select a vice chairperson from among its membership. A quorum shall consist

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of four (4) members of the board. A majority vote of those present shall be required for action.

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     (b) The board shall hire an executive director to organize, administer, and manage the

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operations of the authority. The executive director shall be exempt from civil service and shall

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serve at the pleasure of the board. The executive director shall serve as secretary of the authority,

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ex-officio with no voting power. Provided, that the executive director may be excused from board

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meetings by the chair.

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     42-155-8. Training requirements. -- The board shall conduct a training course for newly

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appointed and qualified members within six (6) months of their qualification or designation. The

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course shall be developed by the chair or the executive director of the authority. The board may

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approve the use of any board and/or staff member and/or individuals to assist with training. The

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training course shall include instruction in the following areas: the provisions of chapter 46 of

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title 42, chapter 14 of title 36, and chapter 2 of title 38; and the board's rules and regulations. The

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director of the department of administration shall, within ninety (90) days of the effective date of

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this act, prepare and disseminate training materials relating to the provision of chapters 46 of title

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42, chapter 14 of title 36, and chapter 2 of title 38.

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     42-155-9. School housing aid program – Administered by health and education

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building division. -- The authority shall have transferred to it those powers and duties in regard

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to school housing aid formerly administered by the department of education, set forth in §§ 16-7-

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35 through 16-7-47, inclusive. Such powers and duties of the school housing aid program shall be

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administered by the authority through a division within the authority to be known as the Rhode

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Island health and education building division.

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     42-155-10. Rhode Island health and school building program – Administered by

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health and education building division. -- The authority shall have transferred it those powers

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and duties in regard to health facilities and the school housing aid formerly administered by the

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Rhode Island health and educational building corporation act as set forth in chapter 38.1 of title

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45 ("Health and Educational Building Corporation"). Such powers and duties shall be

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administered by the authority through a division within the authority to be known as the Rhode

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Island health and education building division.

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     42-155-11. Rhode Island clean water finance agency program – Administered by

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clean water finance division. -- The authority shall have transferred to it all powers and duties

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formerly administered by the Rhode Island clean water finance agency as set forth in chapter 12.2

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of title 46 ("Rhode Island Clean Water Finance Agency"). Such powers and duties shall be

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administered by the authority through a division within the authority to be known as the Rhode

 

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Island clean water and transportation finance division.

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     42-155-12. Purchases. -- The authority shall be considered a public agency and subject

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to the provisions of chapter 2 of title 37 ("State Purchases").

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     42-155-13. Rules and regulations – Continuation of school construction regulations.

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-- The authority may adopt rules and regulations or any amendments to rules and regulations

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according to the provisions of chapter 35 of title 42 ("Administrative Procedures"). Provided, the

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school construction regulations of the department of elementary and secondary education

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applicable to the school housing program shall remain in full force and effect and shall be applied

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and implemented by the authority to any school construction, unless and until such regulations

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are amended by the authority.

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     42-155-14. Applicability of other laws. -- The authority shall be subject to the

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provisions of chapter 2 of title 38 ("access to public records") and chapter 46 of title 42 ("open

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meetings") and, in addition, the members of the board shall be subject to the provisions of chapter

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14 of title 36 ("code of ethics").

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     42-155-15. Relation to other laws. -- Nothing in this chapter, and no action taken by the

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authority pursuant to this chapter, shall be construed to preempt or supersede the authority of the

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commissioner of elementary and secondary education.

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     42-155-16. Addition to existing aid. -- The provisions of this chapter shall be in addition

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to any and all state aid for education, provided for in chapters 7, 7.1, and 7.2 of title 16, and in

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any other general or special law.

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     42-155-17. Severability. -- The provisions of this chapter are severable, and if any

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provision hereof shall be held invalid in any circumstances, any invalidity shall not affect any

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other provisions or circumstances. This chapter shall be construed in all respects so as to meet

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any constitutional requirements. In carrying out the purposes and provisions of this chapter, all

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steps shall be taken which are necessary to meet constitutional requirements.

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CHAPTER 156

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SCHOOL BUILDING MODERNIZATION AND RECONSTRUCTION TRUST FUND ACT

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     42-156-1. Short title. -- This chapter shall be known and may be cited as the "School

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Building Modernization and Trust Fund Act".

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     42-156-2. Definitions. -- As used in this chapter, the following words shall, unless the

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context requires otherwise, have the following meanings:

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     (1) "Authority" means the Rhode Island infrastructure authority, established pursuant to

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chapter 155 of this title ("The Rhode Island Infrastructure Authority Act").

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      (2) "Dedicated sales tax revenue amount" means all monies received by the state equal to

 

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one percentage point of the rate of the following state sales taxes set forth in chapter 18 of title 44

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("Sales and Use Taxes – Liability and Computation"): (i) Sales tax pursuant to § 44-18-18; and

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(ii) Use taxes pursuant to § 44-18-30. Dedicated sales tax revenue shall only be used to fund the

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school housing aid program previously administered through the Rhode Island department of

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education and transferred pursuant to the provisions of chapter 155 of this title.

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     (3) "Program" means the Rhode Island school building assistance program established

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pursuant to chapter 157 of this title ("School Building Assistance Program Act").

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      (4) "Receipts from sales" means gross receipts from nonexempt sales, less amounts

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abated or reimbursed.

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     (5) "Sales price of purchases" means sales price of nonexempt purchases, less amounts

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abated or reimbursed.

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     42-156-3. School modernization and reconstruction trust fund established. -- (a)

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There is hereby established a separate fund, to be known as the school modernization and

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reconstruction trust fund, to be administered by the authority. There shall be credited to the fund

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the dedicated sales tax revenue amounts as defined in this chapter, provided that said dedicated

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sales tax revenue amounts shall be used solely to fund the school housing aid program including

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administration costs. Annual receipts into the fund on account of any fiscal year shall be

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considered to meet the full obligation of the state to the authority for such fiscal year.

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     (b) The authority shall certify annually to the treasurer as trustee with copies provided to

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the president of the senate, speaker of the house, and to the finance committees of the senate and

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the house that it has made provision in its annual budget and the Rhode Island capital plan fund

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pursuant to the provision of title 35 for sufficient amounts to be made available to meet debt

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service payments or other payments due under financing obligations, including, without

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limitation, leases or grant obligations.

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     42-156-4. Utilization of trust with nonprofit entities. – (a) The authority shall utilize,

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promote, and implement the trust as a mechanism to encourage opportunities for non-profit

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entities and foundations to contribute to school construction projects. The trust shall be operated

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and maintained so as to qualify for the receipt of grants, funds, services, aid, and other

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contributions from nonprofit and not-for-profit entities and foundations.

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     (b) To promote use of the trust, the authority may grant up to ten (10) percentage bonus

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points on state reimbursement of school housing aid projects where at least ten percent (10%) of

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the total project costs are funded by nonprofit and not-for-profit entities and foundations, through

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the trust.

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CHAPTER 157

 

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SCHOOL BUILDING ASSISTANCE PROGRAM ACT

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     42-157-1. Short title. -- This chapter shall be known and may be cited as the "School

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Building Assistance Program Act".

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     42-157-2. School building assistance program established. – (a) The costs of the

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school buildings are increasing at an unsustainable rate. Local governments need flexibility in

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school building assistance to ensure that local needs for school facility space, downtown

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development, open space and community space are met. Statewide, thoughtful planning and

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construction of school facility space is needed in order to insure safe and adequate plant facilities

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for the public schools. To assist towns in meeting the cost thereof, there is hereby established a

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school building assistance program.

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     42-157-3. Definitions. -- For the purposes of this chapter, the following words shall have

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the following meanings:

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     (1) "Additional revenues" means any moneys that are not defined as the dedicated sales

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tax revenue amount that are appropriated, gifted, granted, pledged, or otherwise made available to

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the authority by the state, any local governmental entity, the federal government, not-for-profit

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organizations, for-profit organizations, or private individuals.

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      (3) "Alternatives to construction" means approved school facilities projects that do not

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include capital construction, major reconstruction or building renovation, but no alternative

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project shall be reimbursed if it is determined by the authority to be more costly than construction

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necessary to achieve the same end.

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     (4) "Approved school project" means a project which has complied with the

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administrative regulations governing §§ 16-7-35 through 16-7-47, and which has been authorized

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to receive state school housing reimbursement by the authority.

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     (5) "Assisted facility" means a school facility that has received a total facilities grant

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pursuant to this chapter.

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     (6) "Authority" means the Rhode Island infrastructure authority.

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     (7) "Capital construction project" means any capital project, other than a major

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reconstruction project, for the construction, the enlargement or original equipping of any public

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schoolhouse in any city or town, or a project for the renovation or partial renovation of an

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existing structure for use as a schoolhouse; or the renovation or partial renovation of an existing

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schoolhouse.

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     (8) "Construction manager" means a construction manager at risk as defined in § 37-2-7.

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     (9) "Dedicated sales tax revenue amount" means all monies received by the state equal to

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one percentage point of the rate of the following state sales taxes set forth in chapter 18 of title 44

 

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("Sales and Use Taxes – Liability and Computation"): (i) Sales tax pursuant to § 44-18-18; and

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(ii) Use taxes pursuant to § 44-18-30. Dedicated sales tax revenue shall only be used to fund the

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school housing aid program and associated administrative costs previously administered through

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the Rhode Island department of education and transferred pursuant to the provisions of chapter

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155 of this title.

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      (10) "Department of education" means the Rhode Island department of elementary and

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secondary education.

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     (11) "Education building division" means the Rhode Island health and education building

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division of the Rhode Island infrastructure authority established pursuant to the provisions of

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chapter 155 of this title ("The Rhode Island Infrastructure Authority Act").

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     (12) "Eligible applicant" means a city, town, regional school district or independent

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charter school or mayoral academy charter school in the state of Rhode Island who otherwise

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meets the criteria for school building and construction and housing aid assistance from the

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authority.

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     (13) "Energy efficient construction rating" means a rating given to eligible applicants by

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the authority based upon a determination that the construction techniques of an approved school

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project meet or exceed energy efficiency standards established by the National Institute of

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Standards and Technology.

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      (14) "Innovative community use" means approved school facilities projects that combine

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community resources to streamline the costs of and utilize other funding sources for the facilities

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project.

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     (15) "Maintenance rating" means rating given to schools and school districts by the

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authority, based on a maintenance assessment conducted by the authority.

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     (16) "Major reconstruction project" means any capital school facilities or extraordinary

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maintenance project including, but not limited to, the retrofitting of a school for the purpose of

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providing wireless or other learning technologies, the replacement of a roof or heating plant if it

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is determined by the board that such project has not been necessitated, in whole or in part, by the

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failure of an eligible applicant to make adequate and prudent provisions for the care and

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maintenance of said school.

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     (17) "Non-state fundraising" means third-party monies made available to the eligible

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applicant for approved school facilities projects including, but not limited to, private donations

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and federal grants.

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     (18) "Project manager" means a person designated or assigned by an eligible applicant,

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and approved by the authority, to manage and coordinate daily administration of a school facility

 

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or building project to completion including, but not limited to, school district or municipal staff

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person or a volunteer with appropriate experience and expertise.

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     (19) "Program" or "school building assistance program" means the Rhode Island school

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building assistance program established pursuant to the provisions of this chapter.

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     (20) "Prototypical school plans" means school building project architectural designs and

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plans collected and maintained by the authority for consultation by eligible applicants.

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     (21) "Regional school" means any public school established under law by the action of

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two or more cities or towns, including but not limited to regional schools established pursuant to

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chapter 3 of title 16.

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     (22) "Regional school district" means any instrumentality of the state, established by two

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or more cities and towns for the purpose of operating a regional school district, including but not

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limited to regional schools or regional school districts established pursuant to chapter 3 of title 16.

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     (23) "School project" means any capital construction or major reconstruction projects; the

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lease of buildings or modular facilities; arrangements with higher education facilities or other

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nonprofit or municipal entities; use of swing space between school buildings in the district;

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tuition arrangements with other school districts to prevent overcrowding; and other school

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facilities projects. The cost of tuition arrangements in existence prior to project application shall

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not be eligible for reimbursement as an approved school project.

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     (24) "Total facilities grant" means the total grant with respect to an approved school

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project and which is calculated as follows: In the case of a grant for an approved project of a city

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or town, the total facilities grant shall be the product of multiplying the final approved costs of

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such project, including all costs, by the reimbursement percentage determined at a figure

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established by the authority for the year in which the project is approved.

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      (25) "Trust" means the Rhode Island school building modernization and reconstruction

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trust fund established pursuant to chapter 156 of this title.

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     42-157-4. Purpose of program – Establishment of policies and review standards. --

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(a) The purpose of the school building assistance program is to encourage and foster the

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thoughtful establishment and maintenance of school facility space in and among the cities and

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towns of the state; to conduct surveys and studies relative thereto; and to administer the

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provisions of this chapter relative to grants and loans to cities and towns for the planning and

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construction of school building and school facility projects.

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     (b) In addition, the purposes of the program shall be the provision of financial assistance

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to cities, towns and regional school districts as beneficiaries of the trust to finance and refinance

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the costs of approved school projects as provided in, and as necessary to implement, this chapter,

 

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including without limitation providing for the payment of grants approved pursuant to this

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chapter and the payment of all costs of the authority as to school housing program costs only,

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including professional and financial services incident to the conduct of its operations.

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     (c) The authority shall establish general policy and review standards regarding school

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building construction, renovation, maintenance and facility space and administer the school

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building assistance program in accordance with this chapter. In carrying out its duties, the

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authority shall be guided by the following principles: preservation of open space and

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minimization of loss of such open space, emphasis on thoughtful community development, and

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project flexibility that addresses the needs of individual communities and municipalities while

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ensuring statewide efficiency. In accordance with the terms of any bond resolution, trust or

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security agreement or credit enhancement agreement, surety bond or insurance policy related to

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indebtedness incurred by the authority secured by amounts provided to the trust, the holders of

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indebtedness and the providers of any credit enhancement, surety bond or insurance policy shall

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also be beneficiaries of the trust. The authority shall apply and disburse moneys and revenues of

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the trust without further appropriation or allotment. Provided, only the authority shall have the

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ability to issue bonds and security agreements, and no bonds or security agreements shall be

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executed by any division of the authority.

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     (d) The authority shall establish general policy and review standards regarding school

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building construction, renovation, maintenance and facility space, administer the school building

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assistance program in accordance with this chapter and coordinate the distribution of school

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facilities grants in accordance with this chapter. The board shall be responsible for the oversight

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and management of the school building assistance program as established herein and referred to

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hereafter as the "program". In carrying out its duties, the authority shall be guided by the

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following principles: preservation of open space and minimization of loss of such open space;

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emphasis on thoughtful community development; and project flexibility that addresses the needs

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of individual communities and municipalities while ensuring statewide efficiency.

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     42-157-5. Specific powers of the authority in administering the program. -- (a)

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Specific powers of the authority in regard to administering the program shall include, but not be

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limited to, the following:

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     (1) Review, approve or deny grant applications, waivers and other requests submitted to

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the program; review, approve and recommend changes to grant payment schedules or suspend

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said schedules for program projects such as refinancing, audit findings and such other

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circumstances that may warrant such action;

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     (2) Provide architectural or other technical advice and assistance, training and education,

 

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to cities and towns or to joint committees thereof and to general contractors, subcontractors,

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construction or project managers, designers and others in the planning, maintenance and

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establishment of school facility space;

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     (3) Recommend to the general assembly such legislation as it may deem desirable or

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necessary to further the purposes of this chapter;

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     (4) Develop a formal enrollment projection model or consider using projection models

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already available;

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     (5) Apply for, receive, administer and comply with the conditions and requirements

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respecting any grant, gift or appropriation of property, services or moneys;

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      (7) Develop a project priority system;

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     (8) Collect and maintain a clearinghouse of prototypical school plans which may be

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consulted by eligible applicants;

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     (9) Determine eligibility of cost components of projects for reimbursement, including

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partial or full eligibility for project components for which the benefit is shared between the school

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and other municipal entities;

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     (10) Establish appropriate rules and regulations as may be necessary to carry out the

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purposes of this chapter;

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     (11) Prepare an annual budget for the administration of the program based on five (5)

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year capital plans submitted by districts;

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     (12) Collect and maintain data on all the public school facilities in the state, including

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information on size, usage, enrollment, available facility space and maintenance;

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     (13) Advise districts on the conduct of a needs survey to ascertain the capital

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construction, reconstruction, maintenance and other capital needs for schools in each district of

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the state;

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     (14) Develop a long term capital plan in accordance with needs and projected funding;

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      (15) Establish and maintain financial reserves to support the school building program

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and to sustain steady growth and improvements as needed to address changes in the needs of the

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state's student populations;

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     (18) Disburse amounts due to cities, towns and regional school districts under grants

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approved by the authority to finance or refinance costs of approved school projects and, in

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conjunction therewith, finance or refinance the local share of costs of these projects, through the

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purchase of bonds, notes or other evidences of local indebtedness, at the rates and on the terms

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that the authority may in its discretion determine, and provide for the payment of all costs of the

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authority, including professional and financial services incident to the conduct of its operations;

 

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     (19) Invest the funds of the trust in such investments as may be legal investments for

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funds of the state or any fiduciary in the state;

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     (20) Obtain insurance and enter into agreements of indemnification necessary or

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convenient to the exercise of the powers of the trust;

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     (21) To sue and be sued and to prosecute and defend actions relating to the affairs of the

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trust; but the trust shall not be authorized to become a debtor under the United States Bankruptcy

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Code;

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     (22) To engage accounting, management, legal, financial, consulting and other

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professional services necessary to the operations of the trust;

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     (23) Design, promulgate, and administer the programs available to efficiently provide

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finance resources to eligible applicants to carry out the goals of the authority; and

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     (24) To do all things necessary or convenient to carry out the purposes of this chapter.

13

     42-157-6. Obligations and commitments of authority. -- (a) The authority shall not be

14

obligated to make any expenditures for any commitments, improvements, repairs, renovations,

15

capital construction projects, major reconstruction projects, capital improvements required under

16

the Americans With Disabilities Act, new construction, other improvements, major repairs or

17

renovations, any other projects to conform to federal statutory mandates, or projects specifically

18

authorized or mandated for which the necessary additional revenues to complete these

19

commitments, improvements, repairs, renovations, capital construction projects, major

20

reconstruction projects, capital improvements required under the Americans With Disabilities

21

Act, new construction, other improvements, major repairs or renovations, or any other projects to

22

conform to federal statutory mandates, have not been made available to the authority by the state.

23

     (b) Any commitments, improvements, repairs, renovations, capital construction projects,

24

major reconstruction projects, capital improvements required under the Americans With

25

Disabilities Act, new construction, other improvements, major repairs or renovations, any other

26

projects to conform to federal statutory mandates, or projects specifically authorized or mandated

27

for which the necessary additional revenues to complete these commitments, improvements,

28

repairs, renovations, capital construction projects, major reconstruction projects, capital

29

improvements required under the Americans With Disabilities Act, new construction, other

30

improvements, major repairs or renovations, or any other projects to conform to federal statutory

31

mandates, so authorized or mandated and for which additional revenues have been made available

32

shall be subject to the rules, laws and regulations of the authority.

33

     42-157-7. Records and reporting requirements. -- (a) The authority, in cooperation

34

with the state general treasurer, shall at all times keep accounts of all receipts, expenditures and

 

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1

disbursements and all assets and liabilities of the authority, which shall be open to inspection by

2

any officer or duly appointed agent of the state.

3

     (b) Commencing in calendar year 2015, on or before the third Thursday in January of

4

each year, the authority shall submit an annual report, in writing, to the governor, the president of

5

the senate, the speaker of the house of representatives, and the chairpersons of the house and

6

senate finance committees and the chairpersons of the house committee on health, education and

7

welfare, and the senate education committee. The report shall include financial statements

8

relating to the operations, assets and expenditures of the authority maintained in accordance with

9

generally accepted accounting principles so far as applicable and audited by an independent

10

certified public accountant firm, as well as cost analysis by fiscal year, and separate cost options

11

for the facility upgrades needed to implement statewide full day kindergarten and full-day pre-

12

kindergarten.

13

     42-157-8. Deductions. – Aid shall be paid either to the community or in the case of

14

projects financed through the Rhode Island infrastructure authority, to the authority or its

15

designee including, but not limited to, a trustee under a bond indenture or loan and trust

16

agreement, in support of bonds issued for specific projects of the local community in accordance

17

with §§ 16-7-40 and 16-7-44. Notwithstanding the preceding, in case of failure of any city, town,

18

or district to pay the amount due in support of bonds issued on behalf of a city, town, or district

19

project financed by the authority, upon notification by the authority, the general treasurer shall

20

deduct the amount from aid provided under §§ 16-7-40 and 16-7-44, and §§ 16-7-15 through 16-

21

7-34.3 due the city, town, or district and direct said funding to the authority or its designee.

22

     42-157-9. School facilities grant applications. -- (a) An eligible applicant may submit to

23

the authority a statement of interest which shall be approved by a vote of the applicable local

24

governing body or bodies as set forth and in a form prescribed by the authority, and which shall

25

state what the eligible applicant believes are the deficiencies in said eligible applicant's respective

26

school facilities that meet one or more of the statutory priorities set forth in this chapter or in such

27

additional regulations as the authority may promulgate. Said statement of interest shall be

28

accompanied by such additional forms, documents, and information as the authority shall deem

29

necessary to review the statement. The submission for a statement of interest shall not commit the

30

authority to accept any further application materials, approve an application, or provide a grant or

31

any other type of funding, or place any other obligation or requirement upon the authority. The

32

authority shall notify an eligible applicant if the authority determines that the statement of interest

33

has not met the criteria established in this chapter.

34

     (b) If the authority determines that the statement of interest and associated material merits

 

LC005912 - Page 13 of 30

1

further consideration, the authority may, in its discretion, invite the eligible applicant to apply to

2

the authority for a school facilities grant to meet in part the cost of a school project; but, a city,

3

town, regional school district or independent agricultural and technical school shall not have an

4

entitlement to funds under this chapter except at the discretion of the authority in accordance with

5

this chapter. Application shall mean a series of documents, forms, letters, statements,

6

certifications, plans, studies, drawings, and other data and information required by the authority

7

to be submitted within the deadlines and in the format prescribed by the authority and shall be

8

accompanied or supplemented by drawings, plans, estimates of cost and proposals for defraying

9

the costs or any additional information the authority may require, before construction is

10

undertaken. The authority shall promulgate regulations establishing the procedural steps by which

11

applications must be made and reviewed, and may at any time during the application process

12

determine that the application does not warrant further consideration, pursuant to the priority

13

criteria established in this chapter, and by the authority's regulations.

14

     (c) In the event that an eligible applicant undertakes construction before approval is

15

obtained, the eligible applicant shall remain subject to the authority's approval process as if the

16

construction were not undertaken. An eligible applicant who is eligible for aid under this chapter

17

and establishes extended courses of instruction in career and technical education or vocational

18

technical education, consistent with the provisions of chapters 45 and 53 of title 16, and wishes to

19

enlarge or construct a school for the purpose of maintaining extended courses of instruction on a

20

technical institute level shall be eligible to apply for financial assistance in the construction or

21

enlargement of such school in the manner and to the extent provided by this chapter. If the

22

authority invites an eligible applicant to apply, but is unable to approve the application due solely

23

to the limit on total facilities grants established by § 42-157-11, at the request of the eligible

24

applicant, the application shall be retained by the authority for one year and reviewed in the year

25

immediately following the year of the application; provided that in said review, the project shall

26

be ranked and evaluated using the priorities established by this chapter and if the application is

27

not approved by the authority during the review, the applicant shall be required to submit a new

28

application; provided, further, that the authority shall require a new application from an applicant

29

seeking to make a substantial change in scope of the project which is the subject of the

30

application subsequent to disapproval by the authority.

31

     42-157-10. Examination of application by authority. -- Notice of approval or

32

rejection. -- (a) Upon receipt of an application under the provisions of this section, from time to

33

time, the authority may designate approved school projects. The authority shall examine forthwith

34

the applications and any facts, estimates, or other information relative thereto, and shall make the

 

LC005912 - Page 14 of 30

1

following findings in order to designate a school project as an approved school project:

2

     (1) The school project is in the best interests of the state and the eligible applicant, with

3

respect to its site, type of construction, sufficiency of accommodations, open space preservation,

4

urban development, urban sprawl, energy efficiency, and otherwise.

5

     (2) The school project is necessary to meet educational standards of the curriculum

6

frameworks established by the board of education for anticipated enrollment levels.

7

     (3) The school project has a value over its useful life commensurate with the lifecycle

8

cost of building, operating, and maintaining the project.

9

     (4) The school project is not at a school that has been the site of an approved school

10

project pursuant to this chapter within the ten (10) years prior to the project application date, or

11

the approved school project is unrelated to such previously approved project in the same school.

12

     (5) The school project is within the capacity of the authority to finance within revenues

13

projected to be available to the trust.

14

     (6) The commissioner of education has certified that adequate provisions have been made

15

in the school project for children with disabilities, and, in the case of elementary facilities, that

16

adequate provisions consistent with local policy have been made for all-day kindergarten, pre-

17

kindergarten classes and for extended day programs; provided, however, that no district shall be

18

required to adopt the classes or programs. The authority shall also consider the availability of

19

funds projected in the trust and other financial obligations of the authority, the authority's long

20

term capital plan, the results of needs surveys, the order of priorities under § 42-157-13 and

21

construction procedures and standards under § 42-157-14 and otherwise as prescribed by law and

22

regulation. With respect to a regional school district, district charter school, independent charter

23

school, or mayoral academy, the authority shall also consider whether the school project

24

represents an economy of scale that benefits the state and the municipalities of the region.

25

     (b) Within a reasonable time after receipt of the application the authority shall notify the

26

applicant of its approval or rejection thereof, and, in the event of its rejection, of the reasons

27

therefore. Notice of approval hereunder shall be accompanied by a statement of the estimated

28

approved cost as determined by the authority, and an estimate of the amount of total facilities

29

grant to which the eligible applicant may be entitled under § 42-157-14.

30

     (c) If the authority designates a school project to be an approved school project, the

31

authority shall compute the estimated approved cost of the project, which cost may be equal to

32

the estimated cost furnished by the eligible applicant or a lesser amount, and compute the amount

33

estimated of facilities grant to which the eligible applicant would be entitled. The final approved

34

cost shall be determined by the authority within a reasonable time after the acceptance of the

 

LC005912 - Page 15 of 30

1

completed project by the local school committee. Final audits shall be conducted promptly by the

2

authority. Final payments shall be determined based on the final approved cost.

3

     (d) Any city, town or regional school district which has received, in accordance with

4

subsections (b) and (c) of this section, notice of approval and an estimate of the amount of a

5

school facilities grant, may borrow from time to time to finance that portion of the cost of the

6

approved school project not being paid by such grant, in such amount approved by the board of

7

selectmen, mayor or city or town manager of the city or town, or the regional district school

8

committee of the regional school district, and may issue bonds or notes therefore which shall bear

9

on their face the words the name of city, town or regional school district, and the language

10

"School Project Loan pursuant to Rhode Island General Laws chapter 157 of title 42". Each

11

authorized issue shall constitute a separate loan, and the loans shall be paid in not more than

12

twenty-five (25) years from their dates. Any city, town or regional school district which has

13

received, in accordance with subsections (b) and (c) of this section, notice of approval and an

14

estimate of the amount of a school facilities grant may issue and renew temporary notes. The

15

authority shall issue regulations relative to issuance of temporary notes for school construction.

16

Indebtedness incurred under this chapter shall be outside the statutory debt limit.

17

     (e) A city, town or regional school district may borrow for a term of not more than five

18

(5) years for the cost of such feasibility studies as may be required to apply for a school facilities

19

grant under this chapter.

20

     42-157-11. Limitation on grants of the authority. -- There shall be a limit on the

21

estimated amount of grants approved by the authority to be no greater than the amounts in the

22

trust fund. The priority list determined in 42-157-12 shall rank order projects for funding.

23

However, the authority shall ensure that each community be proportionately represented in fifty

24

percent (50%) of the available funding. The authority shall promulgate rules and regulations to

25

this regard.

26

     42-157-12. Order of priorities for approval of school projects and reimbursements –

27

Deferral of approval or disapproval of project applications. -- (a) The authority shall approve

28

school projects and reimbursements under this chapter in accordance with the following order of

29

priorities:

30

     (1) Priority shall be given to school projects needed in the judgment of said board to

31

replace or renovate a building which is structurally unsound or otherwise in a condition seriously

32

jeopardizing the health and safety of school children, where no alternative exists;

33

     (2) Priority shall be given to school projects to eliminate existing severe overcrowding;

34

     (3) Priority shall be given to school projects needed in the judgment of said authority to

 

LC005912 - Page 16 of 30

1

prevent loss of accreditation;

2

     (4) Priority shall be given to school projects needed in the judgment of said authority to

3

prevent severe overcrowding expected to result from increased involuntarily enrollments which

4

must be substantiated;

5

     (5) Priority shall be given to projects needed in the judgment of said authority for the

6

replacement, renovation or modernization of the heating system in any schoolhouse to increase

7

energy conservation and decrease energy related costs in said schoolhouse;

8

     (6) Priority shall be given to any school project needed in the judgment of said authority

9

for short term enrollment growth;

10

     (7) Priority shall be given to school projects needed in the judgment of said authority to

11

replace or add to obsolete buildings in order to provide for a full range of programs consistent

12

with state and approved local requirements; and

13

     (8) Priority shall be given to mandatory instructional programs.

14

     (b) The authority shall maintain a current list of all such school projects and the priority

15

given them.

16

     42-157-13. Cost-effective production of efficient and creative school projects –

17

Standards and procedures -- Regulations. -- (a) In order to maximize the cost effective

18

production of efficient and creative school projects, the authority shall require that every school

19

project conform to standards and procedures as the authority considers appropriate, including, but

20

not limited to, the following:

21

     (1) That the applicant fully consider all available options for satisfying the described

22

need, including tuition agreements with adjacent school districts, rental or acquisition and any

23

necessary rehabilitation or usage modification of any existing building which could be made

24

available for school use;

25

     (2) That the applicant's site selection is based on the cost and environmental factors,

26

including an awareness of soil conditions and their probable effect on foundation and site

27

development costs, transportation effects, dislocation of site occupants and relationship to other

28

community facilities;

29

     (3) That the applicant enter into contracts, using forms satisfactory to the authority for

30

such competent architectural, engineering and other services as may be required; and

31

     (4) That procedures satisfactory to the board are followed by the applicant throughout the

32

planning and construction of the project such as will assure maximum attention to the operating

33

and capital cost effects of program and design decisions, materials and systems selections.

34

     (b) The authority shall issue annually, as hereinafter provided, maximum eligible cost

 

LC005912 - Page 17 of 30

1

standards and size standards for school projects. These standards may take into account the type

2

and location of a proposed school project and may also take into account the difficulty of siting

3

school facilities in dense urban areas in which there exists a shortage of available municipally-

4

owned sites and the increased cost of construction and major renovation in such urban areas. The

5

program standards shall define prototype school design and space recommendations for each

6

specified program activity eligible for state financial assistance. The program standards shall, in

7

the judgment of the authority, be in conformity with the minimum requirements of state law and

8

shall also reflect consideration of cost effects, prevailing educational standards in the state and the

9

needs of efficient and creative school projects. The cost standards shall be based on the price

10

experience of recently completed and recently bid school projects, taking into account the cost

11

effectiveness of design, construction and programming techniques utilized in such school

12

projects. For the purpose of calculating the total construction grant under this chapter, the

13

estimated approved cost and the final approved cost for a school project shall not exceed the cost

14

that would result if the project conformed to prototype school standards. The provisions of this

15

section shall not be deemed to preclude an eligible applicant from exceeding prototype school

16

standard; provided, however, the cost of such additional facilities and design shall not be included

17

in the estimated cost and final approved cost on the basis of which the state construction grant is

18

calculated.

19

     42-157-14. Formula established – Incentive percentage points. -- (a) The authority

20

shall by regulation develop and implement a formula for borrowing and issuing loans and grants

21

under the provisions of this chapter. Such formula may be amended in different fiscal years by

22

the authority, so long as the amended formula is published prior to any fiscal year in which the

23

formula is to take effect.

24

     (b) In implementing such a formula, the authority may incorporate the incentive share

25

ratio also known as the school housing aid ratio calculation set forth in § 16-7-39. Incentive

26

percentage points granted, if any, shall be in the sole discretion of the authority. The authority

27

may issue regulations delineating the type and amounts of any such incentive percentage points;

28

provided, however, that no individual category of incentive points shall exceed five (5) additional

29

points; and provided further, that no district shall receive more than fifteen (15) incentive

30

percentage points. Such incentive points may be awarded for a district's use of efficient

31

construction delivery methods; regionalization with other districts; superior maintenance

32

practices of a district; energy efficient and sustainable design and construction; major renovation

33

rather than building new construction; the use of model schools as adopted by the authority; and

34

other incentives as determined by the board of the authority in order to encourage the most cost-

 

LC005912 - Page 18 of 30

1

effective and quality construction. Likewise, the authority shall have the authority to issue penalty

2

points.

3

     42-157-15. Approved alternative projects – Allowable costs. -- For approved projects

4

that are an alternative to construction or renovation, the authority shall establish eligible cost

5

criteria consistent with the provisions of §§ 16-7-44 and 16-7-44.1, and on a case by case basis,

6

shall determine the allowable cost of the project. Eligible costs may include but shall not be

7

limited to furnishings and equipment, lease costs, rental fees, tuition costs and transportation

8

costs. In no event shall an alternative project be reimbursed if it is determined by the authority to

9

be more costly than construction necessary to achieve the same end.

10

     42-157-16. Closing schools. – (a) A district must notify the authority in writing six (6)

11

months prior to the sale, lease, demolition, or other removal from service of any school facility in

12

the district's jurisdiction. The notification must include the district's plan for accommodating any

13

displaced school programs or services and a plan for accommodating district students within

14

remaining school buildings as a result of this sale, lease, or removal from service.

15

     (b) Where a building that has received school construction payments from the authority

16

for a building that has not remained in service for fifty (50) years, the authority may recapture, at

17

its discretion, a portion of the housing aid reimbursement.

18

     (c) In the event of a proposed closure, a district shall inform neighboring districts of the

19

proposed action in the event that the second district may wish to acquire the building for its own

20

use.

21

     42-157-17. Assessment program for school buildings. – (a) The assessment program

22

shall be used to help local school districts create and annually update detailed, five (5) year

23

capital plans. The plans shall include a complete list of facility upgrades and annual cost

24

estimates. The details of the plan shall be provided in a manner consistent with construction

25

industry professional best practices and contain detail by building system, including, but not

26

limited to, mechanical systems: heating, ventilation, and air conditioning (HVAC), electrical

27

systems, plumbing systems, building envelope, and fire alarm and suppression. A summary of the

28

assessment, including lifespans, replacement schedules, and cost, shall be provided to the senate

29

president, the speaker of the house, the chair of the senate finance committee, the chair of the

30

house finance committee, the senate fiscal advisor, and the house fiscal advisor on or before the

31

third Thursday in January in each year, and shall include a detailed cost analysis by fiscal year,

32

and separate options for the facility upgrades needed to implement statewide full-day

33

kindergarten and full-day pre-kindergarten.

34

     (b) The distribution of available funds shall be prorated the funds among those eligible

 

LC005912 - Page 19 of 30

1

school districts if the total approved costs for which school districts are seeking reimbursement

2

exceed the amount of funding appropriated in any fiscal year based on the relative average daily

3

membership of each district as defined in § 16-7-22.

4

     42-157-18. Annual report. -- Anticipated needs for school facilities projects. -- (a)

5

Commencing in 2015, on or before June 30 of each year, the authority shall submit a report to the

6

governor, speaker of the house and the president of the senate, the house and senate finance

7

committees, the senate education committee, the house committee on health, education, and

8

welfare which analyzes the anticipated financial needs for school facilities projects of the kind

9

that qualify for assistance under this chapter. The report shall include a listing of each school

10

building within the state, together with a description of its size, capacity, age and state of

11

maintenance and whether it is likely to require construction, enlargement, reconstruction,

12

rehabilitation or improvement due to such factors as deterioration, lack of adequate facilities to

13

meet educational standards and anticipated increases in school- age population.

14

     (b) The authority shall include in its report a list of the projects which it intends to fund,

15

in any manner, in the order in which said projects are expected to be funded, and the anticipated

16

date of such funding.

17

     (c) The authority shall develop a long-term capital plan in accordance with needs and

18

funding projected to be available in the trust under this chapter for purposes of planning and

19

guiding the policies of the authority.

20

     (d) The capital plans and reports of the authority shall not give rise to any claim, legal or

21

moral, or enforceable right in any party to benefits or funds from the trust or from other sources.

22

     42-157-19. Notification of actual interest rate for bond issuance. -- Municipalities and

23

school districts shall notify the authority no later than fourteen (14) days before refinancing any

24

bond for which the municipality or district will receive state reimbursement under an authority

25

other than this chapter.

26

     42-157-20. Transfer of powers from department of education and Rhode Island

27

health and educational building corporation. -- (a) As of July 1, 2015, the Rhode Island

28

infrastructure authority shall succeed to all powers previously granted to the board of education

29

and the department of education with respect to school building projects and the school housing

30

aid program as described in chapter 7 of title 16, including, but not limited to, the functions

31

administered through the office of statewide elementary and secondary education. The authority

32

shall assume all authority, powers and duties as the department of education had as to all projects

33

being undertaken as of that date. As soon as practicable following July 1, 2015, the commissioner

34

of education shall transfer to the authority all records and documents which immediately before

 

LC005912 - Page 20 of 30

1

that date are in the custody of the board of education or the department of education and which

2

relate to or are maintained for the purpose of the school building assistance program.

3

     (b) As of July 1, 2015, the Rhode Island infrastructure authority shall succeed to all

4

powers previously granted to the Rhode Island health and educational building corporation and

5

the authority shall assume all authority, powers and duties as the health and educational building

6

corporation had as to all projects being undertaken as of that date. As soon as practicable

7

following July 1, 2015, the corporation shall transfer to the authority all records and documents

8

which immediately before that date are in the custody of the board of education or the department

9

of education and which relate to or are maintained for the purpose of the school building

10

assistance program.

11

     (c) Grants for the authority's share of approved costs of projects pursuant to this chapter

12

shall be payable by the Rhode Island infrastructure authority rather than by legislative

13

appropriations.

14

     (d) For projects which, before July 1, 2015, were approved by the board of education and

15

for projects on the list submitted under § 42-157-18, with respect to which bonds or long-term

16

indebtedness shall have been issued before July 1, 2015, the final approved cost of the project

17

shall include, only to the extent eligible for reimbursement and allowed by the department of

18

education and board of education:

19

     (i) The eligible interest payable on the authority's share of bonds or long-term

20

indebtedness issued to finance the project,

21

     (ii) The eligible interest payable on the authority's share of temporary notes issued to

22

finance the project on or after July 1, 2015 but before receipt of any funding from the authority,

23

and

24

     (iii) May, in the discretion of the authority, include eligible principal of any bonds issued

25

before July 1, 2004. For projects submitted by the department of education but not approved by

26

the board of education, or projects for which no bonds or long-term indebtedness have been

27

issued before July 1, 2015, approved project costs shall include the authority's share of eligible

28

interest on temporary notes issued to finance the project, paid before the receipt of a grant, but

29

shall not include interest or principal on bonds or long-term indebtedness.

30

     (e) Grants for approved projects shall be paid under a disbursement schedule approved by

31

the authority.

32

     (f) In no event shall the authority be responsible for paying or reimbursing any costs,

33

including but not limited to, project costs, interest or principal on any notes, bonds or long-term

34

indebtedness that were disallowed by the department of education or board of education under

 

LC005912 - Page 21 of 30

1

any statute, rule, regulation, policy, or established practice to or less than the total grant amount

2

owed as of the effective date of this act. The Rhode Island infrastructure authority shall work with

3

cities, towns, regional school districts and independent agricultural and technical schools to

4

finalize modified applications for projects with preliminary approval for modification of the

5

scope in a manner consistent with the preliminary approval granted by the commissioner of

6

education prior to the effective date of this act.

7

     42-157-21. Financial assistance to certain projects. -- The authority may, in its

8

discretion, provide financial assistance under this chapter for projects on a list submitted by the

9

department of elementary and secondary education or the Rhode Island health and education

10

building corporation to the authority but not yet approved by the department, in the order in

11

which they appear on the list; provided, however, that the authority may deviate from the order if

12

it determines that it is necessary to do so in order to comply with federal tax laws or regulations

13

related to the tax exemption of indebtedness incurred by the authority or to provide grants to

14

municipalities or districts whose short-term borrowing would otherwise terminate prior to the

15

award of a grant. The authority shall notify the house and senate finance committees within thirty

16

(30) days whenever changes in list order will result in a project getting funds more than a year

17

earlier or later than would have been the case had the authority provided funds to districts in the

18

order in which they appear on the list. Projects with respect to which, in the reasonable judgment

19

of the authority, no substantial progress has been made may be removed by the authority from the

20

list. Any project so removed from the list may be the subject of a new grant application to the

21

authority under this chapter but shall have no specific entitlement to funding under this act.

22

     42-157-22. Bonds – Refunding notes. – (a) The officers of a city, town or regional

23

school district authorized to issue bonds, notes or certificates of indebtedness for a school

24

construction project may refund, by the issuance of refunding notes, a temporary loan issued in

25

anticipation of money to be derived from the sale of the bonds, notes or certificates.

26

     (b) Any provision of law to the contrary notwithstanding, the commissioner of

27

elementary and secondary education shall cause to be monitored the potential for refunding

28

outstanding bonds of local communities or municipal public building authorities or of the Rhode

29

Island infrastructure authority issued for the benefit of local communities or municipal public

30

building authorities and benefiting from any aid referenced in this section. In the event it is

31

determined by said monitoring that the net present value savings which could be achieved by

32

refunding such bonds of the type referenced in the prior sentence including any direct costs

33

normally associated with such refundings is equal to: (i) At least one hundred thousand dollars

34

($100,000); and (ii) For the state and the communities or public building authorities at least three

 

LC005912 - Page 22 of 30

1

percent (3%) of the bond issue to be refunded including associated costs then, in such event, the

2

commissioner (or his or her designee) may direct the local community or municipal public

3

building authority for the benefit of which the bonds were issued, to refund such bonds. Failure of

4

the local community or municipal public buildings authority to timely refund such bonds, except

5

due to causes beyond the reasonable control of such local community or municipal public

6

building authority, shall result in the reduction by the state of the aid referenced in § 16-7-4.1

7

associated with the bonds directed to be refunded in an amount equal to ninety percent (90%) of

8

the net present value savings reasonably estimated by the commissioner of elementary and

9

secondary education (or his or her designee) which would have been achieved had the bonds

10

directed to be refunded been refunded by the ninetieth (90th) day (or if such day is not a business

11

day in the state of Rhode Island, the next succeeding business day) following the date of issuance

12

of the directive of the commissioner (or his or her designee) to refund such bonds. Such reduction

13

in the aid shall begin in the fiscal year following the fiscal year in which the commissioner issued

14

such directive for the remaining term of the bond. Payments shall be made in accordance with the

15

provisions of § 16-7-40 and this section.

16

     (c) For purposes of financing or refinancing school facilities in the city of Central Falls

17

through the issuance of bonds through the Rhode Island infrastructure authority, the city of

18

Central Falls shall be considered an "educational institution" within the meaning of § 45-38.1-

19

3(13).

20

     42-157-23. Entitlement to funds. -- Notwithstanding any general or special law to the

21

contrary and except as specifically provided in this act, no city, town or regional school district

22

shall have any entitlement to funds under this chapter except at the discretion of the Rhode Island

23

infrastructure authority in accordance with this chapter. If an eligible applicant undertakes

24

construction for a project or incurs indebtedness for such a project not yet designated as an

25

approved school project, the applicant shall remain subject to the authority's approval process as

26

if the construction had not been undertaken or the indebtedness had not been incurred.

27

     42-157-24. Removal from list. -- (a) A city, town or regional school district may request,

28

in writing that the authority remove a project on the list pursuant to § 42-157-12 and may request

29

that a portion of the authority's anticipated grant for the project be applied to another project on

30

the list pursuant to said § 42-157-12 that is within the same city, town, or regional school district

31

as the project being removed. Approval of the request shall be at the sole discretion of the

32

authority.

33

     (b) A project being so removed from the list shall:

34

     (1) Not have started construction before application to the authority for removal of a

 

LC005912 - Page 23 of 30

1

project from the waiting list;

2

     (2) Not be eligible to receive reimbursement from the authority for any costs that may

3

have been incurred for the project prior to its removal from the list;

4

     (3) Not be eligible to receive reimbursement for interest on short or long term notes or

5

bonds for the project; and

6

     (4) Submit a plan to the authority that demonstrates the city, town or regional district will

7

be adequately able to accommodate a displaced school program or service and a plan for

8

accommodating district students within remaining school buildings.

9

     (c) A project on the list, for which funds may be reallocated in the sole discretion of the

10

authority, shall meet the following criteria:

11

     (1) The project shall have begun construction after January 1, 2015;

12

     (2) The project shall have overall project costs that are in excess of the maximum

13

allowable costs, as determined by the authority, and the excess costs are not related to changes in

14

project scope;

15

     (3) Reallocated costs shall only be used to reimburse approved, eligible costs, as

16

determined by the authority.

17

     (4) The city, town or regional school district shall agree to work with the authority in a

18

value engineering exercise to determine viable options to reduce the overall cost of the project;

19

     (5) The city, town or regional school district shall have multiple projects on the list

20

submitted pursuant to § 42-157-12;

21

     (6) The project on the list for which funds may be reallocated, at the sole discretion of the

22

authority, shall be within the same city, town or regional school district as the project being

23

removed;

24

     (7) The city, town or regional school district shall have submitted all audit materials for

25

any other projects for which the audit materials have been requested by the authority; and

26

     (8) The city, town or regional school district shall have executed a project funding

27

agreement with the authority for any project on the list that has not completed construction.

28

     (d) The authority shall have sole discretion in determining the portion of grant, if any,

29

which may be reallocated to another project. Funds that may be reallocated in the sole discretion

30

of the authority to another project shall only be used to cover approved, eligible costs that are in

31

excess of the maximum allowable cost that are not related to changes in project scope.

32

Reimbursements may be made under the existing grant program, as determined by the authority.

33

In no instance shall reimbursement rates for any project for which reallocated funds are

34

distributed to by the authority, exceed the reimbursement rates established by the authority.

 

LC005912 - Page 24 of 30

1

     42-157-25. Infrastructure authority designated to allocated the limitation amount. --

2

Notwithstanding any general or special law to the contrary, the state hereby designates the Rhode

3

Island infrastructure authority, established pursuant to chapter 155 of this title, to allocate to

4

governmental issuers of bonds within the state, pursuant to section 54F(d)(1) of the American

5

Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, including said authority, the

6

limitation amount allocated to the state by the United States Department of the Treasury, but not

7

including the amount allocated to large local educational agencies pursuant to section 54F(d)(2)

8

of said act except to the extent that any such large local educational agency reallocates amounts to

9

the state pursuant to said section 54F(d)(2), in which case such reallocated amounts shall also be

10

allocated by said authority.

11

     SECTION 2. Section 16-60-4 of the General Laws in Chapter 16-60 entitled "Board of

12

Regents for Elementary and Secondary Education" is hereby amended to read as follows:

13

     16-60-4. Board of regents for elementary and secondary education - Powers and

14

duties. -- The board of regents for elementary and secondary education shall have in addition to

15

those enumerated in § 16-60-1, the following powers and duties:

16

     (1) To approve a systematic program of information gathering, processing, and analysis

17

addressed to every aspect of elementary and secondary education in this state especially as that

18

information relates to current and future educational needs so that current needs may be met with

19

reasonable promptness and plans formulated to meet future needs as they arise in the most

20

efficient and economical manner possible.

21

     (2) To approve a master plan defining broad goals and objectives for elementary and

22

secondary education in the state. These goals and objectives shall be expressed in terms of what

23

men and women should know and be able to do as a result of their educational experience. The

24

regents shall continually evaluate the efforts and results of education in the light of these

25

objectives.

26

     (3) To formulate broad policy to implement the goals and objectives established and

27

adopted by the board of regents; to adopt standards and require enforcement and to exercise

28

general supervision over all elementary and secondary public and nonpublic education in the state

29

as provided in subdivision (8) of this section. The board of regents shall not engage in the

30

operation or administration of any subordinate committee, local school district, school, school

31

service, or school program, except its own department of elementary and secondary education,

32

and except as specifically authorized by an act of the general assembly. The adoption and

33

submittal of the budget and the allocation of appropriations, the acquisition, holding, disposition,

34

and general management of property shall not be construed to come within the purview of the

 

LC005912 - Page 25 of 30

1

preceding prohibition. The regents shall communicate with and seek the advice of the

2

commissioner of elementary and secondary education and all those concerned with and affected

3

by its determinations as a regular procedure in arriving at its conclusions and in setting its policy.

4

     (4) To allocate and coordinate the various educational functions among the educational

5

agencies of the state and local school districts and to promote cooperation among them so that

6

maximum efficiency and economy shall be achieved.

7

     (5) (i) To prepare with the assistance of the commissioner of elementary and secondary

8

education and to present annually to the state budget officer, in accordance with § 35-3-4, a total

9

educational budget for the elementary and secondary sector which shall include, but not be

10

limited to, the budgets of the department of elementary and secondary education, subordinate

11

boards and agencies, and state aid to local school districts.

12

     (ii) In the preparation of the budget, the regents shall determine priorities of expenditures

13

for elementary and secondary education purposes of state revenues and other public resources

14

made available for the support of public elementary and secondary education among the various

15

education agencies of the state. Nothing contained in this section shall authorize any individual or

16

group of individuals to reallocate resources in a manner other than that prescribed in the budget as

17

appropriations by the general assembly.

18

     (6) To maintain a department of elementary and secondary education, to provide for its

19

staffing and organization and to appoint a commissioner of elementary and secondary education

20

pursuant to § 16-60-6 who shall serve at its pleasure. The commissioner of elementary and

21

secondary education and the department of elementary and secondary education shall have any

22

duties and responsibilities as defined in §§ 16-60-6 and 16-60-7.

23

     (7) To establish other educational agencies or subcommittees necessary or desirable for

24

the conduct of any or all aspects of elementary and secondary education and to determine all

25

powers, functions, and composition of any agencies or subcommittees and to dissolve them when

26

their purpose shall have been fulfilled; provided that nothing contained in this subdivision shall

27

be construed to grant the regents the power to establish subcommittees or agencies performing the

28

duties and functions of local school committees except as provided in § 16-1-10.

29

     (8) To exercise the authority previously vested in the board of regents for education with

30

relation to secondary nonpublic educational institutions within the state under the terms of

31

chapter 40 of this title and other laws affecting nonpublic education in the state, and to cause the

32

department of elementary and secondary education to administer the provisions of that section.

33

     (9) To exercise all the functions, powers and duties which previously were vested in the

34

board of regents for education, under the provisions of former § 16-49-4(9), including but not

 

LC005912 - Page 26 of 30

1

limited to the following specific functions:

2

     (i) To approve the basic subjects and courses of study to be taught and instructional

3

standards required to be maintained in the public elementary and secondary schools of the state.

4

     (ii) To adopt standards and qualifications for the certification of teachers and to provide

5

for the issuance of certificates, and to establish fees for the certification of teachers. The fees

6

collected for the certification of teachers along with various education licensing and testing fees

7

shall be deposited by the board of regents as general revenues. The funds appropriated by the

8

general assembly shall be utilized by the department of elementary and secondary education to

9

establish and support programs which enhance the quality and diversity of the teaching

10

profession. The commissioner of elementary and secondary education shall regularly make

11

recommendations to the board about specific programs and projects to be supported by those

12

funds. The commissioner shall oversee the funds, assess the effectiveness of its programs and

13

projects, and make recommendations about the general use and operation of the funds to the

14

board.

15

     (iii) To be responsible for the distribution of state school funds.

16

     (iv) To determine the necessity of school construction and to approve standards for

17

design and construction of school buildings throughout the state.

18

     (v) To set standards for school libraries and school library services.

19

     (vi) To make recommendations relative to transportation of pupils to school, school bus

20

routes, time schedules, and other matters relating to pupil transportation.

21

     (vii) To enforce the provisions of all laws relating to elementary and secondary

22

education.

23

     (viii) To decide and determine appeals from decisions of the commissioner.

24

     (ix) To prescribe forms for the use of local school committees and local officers when

25

reporting to the department of elementary and secondary education.

26

     (x) To adopt and require standard accounting procedures for local school districts, except

27

as provided for in subdivision (3) of § 16-24-2.

28

     (xi) To adopt and require standard uniform operating and capital budgeting procedures

29

for local school districts.

30

     (10) To establish rules for the approval and accrediting of elementary and secondary

31

schools.

32

     (11) To recommend to the general assembly changes in the size and number of the school

33

districts within the state; and to make any further and other recommendations to the general

34

assembly as the board of regents may determine to be necessary or desirable, including, but not

 

LC005912 - Page 27 of 30

1

limited to, proposals for incentives for the coordination of services and facilities of certain school

2

districts and the feasibility of granting taxing authority to local school committees upon their

3

request, and the impact upon the quality of education within that particular community by

4

granting the request. In carrying out this duty, the board of regents shall periodically issue reports

5

in school district organizations for selected regions and school districts.

6

     (12) To exercise all other powers with relation to the field of elementary and secondary

7

education within this state not specifically granted to any other department, board, or agency, and

8

not incompatible with law, which the board of regents for elementary and secondary education

9

may deem advisable.

10

     (13) To exercise the authority previously vested in the board of regents for education with

11

relation to adult education as defined in § 16-58-2 and to establish definitive goals for and operate

12

a comprehensive delivery system for adult education programs and services, including the

13

counseling and testing of persons interested in obtaining high school equivalency diplomas, the

14

issuance of diplomas, and the maintenance of a permanent record of applications, tests, and

15

equivalency diplomas.

16

     (14) To promote maximum efficiency and economy in the delivery of elementary and

17

secondary educational services in the state.

18

     (15) To approve a training program for school committee members to enhance their

19

individual skills and their effectiveness as a corporate body. The training program should include,

20

but not be limited to, the following roles and responsibilities of school committees: strategic

21

planning, human and community relations, and school finance and budgeting.

22

     (16) Within ninety (90) days after the end of each fiscal year, the board shall submit an

23

annual report to the governor, the speaker of the house of representatives, and the president of the

24

senate of its activities during that fiscal year. The report shall provide: an operating statement

25

summarizing meetings or hearings held, subjects addressed, decisions rendered, rules or

26

regulations promulgated, studies conducted, policies and plans developed, approved, or modified,

27

and programs administered or initiated; a consolidated financial statement of all funds received

28

and expended including the source of the funds, a listing of any staff supported by these funds,

29

and a summary of any clerical, administrative or technical support received; a summary of

30

performance during the previous fiscal year including accomplishments, shortcomings and

31

remedies; a synopsis of hearings, complaints, suspensions, or other legal matters related to the

32

authority of the board; a briefing on anticipated activities in the upcoming fiscal year; and

33

findings and recommendations for improvements. The director of the department of

34

administration shall be responsible for the enforcement of the provisions of this subsection.

 

LC005912 - Page 28 of 30

1

     (17) To prepare with the assistance of the commissioner a multi-year plan of priority

2

educational goals and objectives. This plan should recommend policy objectives, implementation

3

strategies, and a timetable for major policy initiatives.

4

     (18) Each year the governor shall by writing notify the board of regents for elementary

5

and secondary education concerning broad economic, cultural, and social needs that the education

6

system needs to consider which the board shall address in developing educational plans and

7

programs.

8

     (19) Appoint a standing committee that will develop a schedule to systematically review

9

all board policies over a three (3) year period.

10

     (20) To prepare with the assistance of the commissioner a statement of regulatory policy.

11

This policy should set forth the goals and objectives of state regulations which are expressed in

12

terms of what educational inputs and outputs the board expects regulations to address.

13

     (21) (i) To prepare with the assistance of the commissioner of elementary and secondary

14

education and to present annually to the general assembly by January 1 a report on school

15

discipline in Rhode Island schools. This report shall include:

16

     (A) Expulsions by district, including duration and the reason for each action.

17

     (B) Suspensions by district, including duration and the reason for each action.

18

     (C) Placements to alternative programs for disciplinary reasons.

19

     (D) Assaults of teachers, students, and school staff by students.

20

     (E) Incidents involving possession of weapons on school property. For the purpose of this

21

section, a weapon shall be considered any of those weapons described in §§ 11-47-2 and 11-47-

22

42.

23

     (F) Incidents of the sale of controlled substances by students.

24

     (G) Incidents of the possession with the intent to sell controlled substances by students.

25

     (H) Additional demographic information including, but not limited to, the ethnic and

26

racial classifications, age, and gender, as prescribed by the commissioner, of each of the students

27

involved in the incidents, events or actions described in subparagraphs (A) through (G) of this

28

subdivision.

29

     (I) A description of the education program provided to each student suspended for over

30

ten (10) consecutive school days in a school year.

31

     (ii) All school superintendents shall supply the necessary information on forms

32

established by the commissioner of elementary and secondary education to the board of regents to

33

assist in the preparation of the board of regents' report on school discipline.

34

     (22) To prepare and promulgate a uniform statewide school reporting system which

 

LC005912 - Page 29 of 30

1

would provide information including, but not limited to, the following:

2

     (i) Student and teacher attendance rates;

3

     (ii) Standardized test scores;

4

     (iii) Demographic profiles;

5

     (iv) Results of polls of students, parents, and teachers;

6

     (v) Descriptions of goals, initiatives, and achievements;

7

     (vi) Best teaching practices;

8

     (vii) Alternative student assessments;

9

     (viii) Special programs;

10

     (ix) Number of student suspensions and teacher grievances and the amount of parental

11

involvement.

12

     (23) The board shall conduct a training course for newly appointed and qualified

13

members within six (6) months of their qualification. The course shall be developed by the

14

chairperson of the board, approved by the board, and conducted by the chairperson of the board.

15

The board may approve the use of any board or staff members or other individuals to assist with

16

training. The training course shall include instruction in the following areas: the provisions of

17

chapters 42-46, 36-14, and 38-2; and the board's own rules. The director of the department of

18

administration shall, within ninety (90) days of the effective date of this act, prepare and

19

disseminate training materials relating to the provisions of chapters 42-46, 36-14, and 38-2.

20

     SECTION 3. This act shall take effect January 1, 2015.

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LC005912 - Page 30 of 30

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - THE RHODE ISLAND

INFRASTRUCTURE AUTHORITY

***

1

     This act would establish several new entities and programs to promote a unified statewide

2

approach to updating, renovating, and otherwise improving public school buildings in the state.

3

     This act would take effect January 1, 2015.

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LC005912 - Page 31 of 30