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:

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

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

CHAPTER 155

THE RHODE ISLAND INFRASTRUCTURE AUTHORITY ACT

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

Island Infrastructure Authority Act."

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

have the following meanings:

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

the provisions of this chapter.

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

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

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

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

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

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

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

function of the state.

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

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

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

liberally construed in conformity with those purposes.

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

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

consolidation of existing state and quasi-public functions.

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

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

     (1) To have perpetual succession.

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

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

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

reproduced.

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

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

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

all or any part of its property and assets.

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

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

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

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

powers under this chapter.

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

powers granted by this chapter.

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

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

agents as the authority shall deem necessary in its judgment.

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

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

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

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

other contributions in carrying out the purposes of this chapter.

     (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

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

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

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

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

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

     (2) The director of the department of administration;

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

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

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

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

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

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

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

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

engaged in the performance of official duties of the board.

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

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

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

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

or affairs related to this title.

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

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

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

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

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

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

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

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

appointment but only for the unexpired portion of the term.

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

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

capacity or fitness for the office shall be unlawful.

     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

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

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

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

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

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

meetings by the chair.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Island health and education building division.

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

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

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

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

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

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

Island health and education building division.

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

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

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

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

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.

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

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

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

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

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

school construction regulations of the department of elementary and secondary education

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

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

are amended by the authority.

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

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

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

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

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

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

commissioner of elementary and secondary education.

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

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

any other general or special law.

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

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

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

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

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

CHAPTER 156

SCHOOL BUILDING MODERNIZATION AND RECONSTRUCTION TRUST FUND ACT

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

Building Modernization and Trust Fund Act".

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

context requires otherwise, have the following meanings:

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

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

      (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

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

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

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

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

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

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

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

abated or reimbursed.

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

abated or reimbursed.

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

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

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

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

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

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

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

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

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

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

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

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

limitation, leases or grant obligations.

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

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

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

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

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

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

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

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

the trust.

CHAPTER 157

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SCHOOL BUILDING ASSISTANCE PROGRAM ACT

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

Building Assistance Program Act".

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

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

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

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

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

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

school building assistance program.

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

the following meanings:

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

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

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

organizations, for-profit organizations, or private individuals.

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

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

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

necessary to achieve the same end.

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

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

to receive state school housing reimbursement by the authority.

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

pursuant to this chapter.

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

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

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

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

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

schoolhouse.

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

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

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

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

school housing aid program and associated administrative costs previously administered through

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

155 of this title.

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

secondary education.

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

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

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

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

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

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

authority.

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

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

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

Standards and Technology.

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

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

project.

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

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

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

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

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

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

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

maintenance of said school.

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

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

and federal grants.

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

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

person or a volunteer with appropriate experience and expertise.

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

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

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

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

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

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

chapter 3 of title 16.

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

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

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

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

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

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

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

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

not be eligible for reimbursement as an approved school project.

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

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

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

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

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

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

trust fund established pursuant to chapter 156 of this title.

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

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

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

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

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

construction of school building and school facility projects.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

executed by any division of the authority.

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

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

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

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

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

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

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

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

of individual communities and municipalities while ensuring statewide efficiency.

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

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

limited to, the following:

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

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

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

circumstances that may warrant such action;

     (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,

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

establishment of school facility space;

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

necessary to further the purposes of this chapter;

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

already available;

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

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

      (7) Develop a project priority system;

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

consulted by eligible applicants;

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

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

and other municipal entities;

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

purposes of this chapter;

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

year capital plans submitted by districts;

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

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

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

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

the state;

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

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

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

state's student populations;

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

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

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

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

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

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

funds of the state or any fiduciary in the state;

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

convenient to the exercise of the powers of the trust;

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

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

Code;

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

professional services necessary to the operations of the trust;

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

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

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

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

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

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

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

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

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

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

reconstruction projects, capital improvements required under the Americans With Disabilities

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

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

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

major reconstruction projects, capital improvements required under the Americans With

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

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

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

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

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

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

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

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

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

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

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

any officer or duly appointed agent of the state.

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

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

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

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

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

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

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

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

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

kindergarten.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

has not met the criteria established in this chapter.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

application subsequent to disapproval by the authority.

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

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

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

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

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

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

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

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

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

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

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

cost of building, operating, and maintaining the project.

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

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

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

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

projected to be available to the trust.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

LC005912 - Page 15 of 30

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

grant under this chapter.

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

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

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

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

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

this regard.

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

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

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

priorities:

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

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

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

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

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

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prevent loss of accreditation;

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

prevent severe overcrowding expected to result from increased involuntarily enrollments which

must be substantiated;

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

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

energy conservation and decrease energy related costs in said schoolhouse;

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

for short term enrollment growth;

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

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

with state and approved local requirements; and

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

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

given them.

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

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

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

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

not limited to, the following:

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

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

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

available for school use;

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

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

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

community facilities;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

calculated.

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

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

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

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

formula is to take effect.

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

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

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

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

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

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

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

construction delivery methods; regionalization with other districts; superior maintenance

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

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

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

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

points.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

its discretion, a portion of the housing aid reimbursement.

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

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

use.

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

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

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

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

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

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

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

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

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

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

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

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

kindergarten and full-day pre-kindergarten.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

date of such funding.

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

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

guiding the policies of the authority.

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

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

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

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

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

other than this chapter.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

assistance program.

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

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

appropriations.

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

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

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

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

education and board of education:

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

indebtedness issued to finance the project,

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

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

and

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

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

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

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

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

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

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

the authority.

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

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

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

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

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

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

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

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

education prior to the effective date of this act.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

3(13).

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

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

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

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

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

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

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

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

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

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

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

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

authority.

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

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

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project from the waiting list;

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

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

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

bonds for the project; and

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

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

accommodating district students within remaining school buildings.

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

authority, shall meet the following criteria:

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

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

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

project scope;

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

determined by the authority.

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

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

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

submitted pursuant to § 42-157-12;

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

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

removed;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

allocated by said authority.

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

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

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

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

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

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

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

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

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

efficient and economical manner possible.

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

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

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

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

objectives.

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

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

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

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

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

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

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

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

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

LC005912 - Page 25 of 30

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

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

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

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

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

maximum efficiency and economy shall be achieved.

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

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

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

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

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

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

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

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

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

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

appropriations by the general assembly.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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limited to the following specific functions:

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

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

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

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

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

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

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

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

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

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

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

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

board.

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

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

design and construction of school buildings throughout the state.

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

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

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

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

education.

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

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

reporting to the department of elementary and secondary education.

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

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

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

for local school districts.

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

schools.

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

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

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

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

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

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

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

in school district organizations for selected regions and school districts.

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

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

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

may deem advisable.

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

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

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

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

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

equivalency diplomas.

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

secondary educational services in the state.

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

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

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

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

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

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

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

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

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

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

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

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

performance during the previous fiscal year including accomplishments, shortcomings and

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

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

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

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

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

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

strategies, and a timetable for major policy initiatives.

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

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

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

programs.

     (19) Appoint a standing committee that will develop a schedule to systematically review

all board policies over a three (3) year period.

     (20) To prepare with the assistance of the commissioner a statement of regulatory policy.

This policy should set forth the goals and objectives of state regulations which are expressed in

terms of what educational inputs and outputs the board expects regulations to address.

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

education and to present annually to the general assembly by January 1 a report on school

discipline in Rhode Island schools. This report shall include:

     (A) Expulsions by district, including duration and the reason for each action.

     (B) Suspensions by district, including duration and the reason for each action.

     (C) Placements to alternative programs for disciplinary reasons.

     (D) Assaults of teachers, students, and school staff by students.

     (E) Incidents involving possession of weapons on school property. For the purpose of this

section, a weapon shall be considered any of those weapons described in §§ 11-47-2 and 11-47-

42.

     (F) Incidents of the sale of controlled substances by students.

     (G) Incidents of the possession with the intent to sell controlled substances by students.

     (H) Additional demographic information including, but not limited to, the ethnic and

racial classifications, age, and gender, as prescribed by the commissioner, of each of the students

involved in the incidents, events or actions described in subparagraphs (A) through (G) of this

subdivision.

     (I) A description of the education program provided to each student suspended for over

ten (10) consecutive school days in a school year.

     (ii) All school superintendents shall supply the necessary information on forms

established by the commissioner of elementary and secondary education to the board of regents to

assist in the preparation of the board of regents' report on school discipline.

     (22) To prepare and promulgate a uniform statewide school reporting system which

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would provide information including, but not limited to, the following:

     (i) Student and teacher attendance rates;

     (ii) Standardized test scores;

     (iii) Demographic profiles;

     (iv) Results of polls of students, parents, and teachers;

     (v) Descriptions of goals, initiatives, and achievements;

     (vi) Best teaching practices;

     (vii) Alternative student assessments;

     (viii) Special programs;

     (ix) Number of student suspensions and teacher grievances and the amount of parental

involvement.

     (23) The board shall conduct a training course for newly appointed and qualified

members within six (6) months of their qualification. The course shall be developed by the

chairperson of the board, approved by the board, and conducted by the chairperson of the board.

The board may approve the use of any board or staff members or other individuals to assist with

training. The training course shall include instruction in the following areas: the provisions of

chapters 42-46, 36-14, and 38-2; and the board's own rules. The director of the department of

administration shall, within ninety (90) days of the effective date of this act, prepare and

disseminate training materials relating to the provisions of chapters 42-46, 36-14, and 38-2.

     SECTION 3. This act shall take effect January 1, 2015.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - THE RHODE ISLAND

INFRASTRUCTURE AUTHORITY

***

     This act would establish several new entities and programs to promote a unified statewide

approach to updating, renovating, and otherwise improving public school buildings in the state.

     This act would take effect January 1, 2015.

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