2016 -- H 7211

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO TOWNS AND CITIES - SCHOOL BUILDING AUTHORITY CAPITAL

FUND

     Introduced By: Representatives Regunberg, Fogarty, Hull, O'Brien, and Morin

     Date Introduced: January 15, 2016

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 45-38.2-2 of the General Laws in Chapter 45-38.2 entitled "School

Building Authority Capital Fund" is hereby amended to read as follows:

     45-38.2-2. School building authority capital fund. -- (a) There is hereby established a

school building authority capital fund. The corporation shall establish and set up on its books the

fund, to be held in trust and to be administered by the corporation as provided in this chapter.

This fund shall be in addition to the annual appropriation for committed expenses related to the

repayment of housing aid commitments. The corporation shall deposit the following monies into

the fund:

      (1) The difference between the annual housing aid appropriation and housing aid

commitment amounts appropriated or designated to the corporation by the state for the purposes

of the foundation program for school housing;

      (2) Loan repayments, bond refinance interest savings, and other payments received by

the corporation pursuant to loan or financing agreements with cities, towns, or LEAs executed in

accordance with this chapter;

      (3) Investment earnings on amounts credited to the fund;

      (4) Proceeds of bonds of the corporation issued in connection with this chapter to the

extent required by any trust agreement for such bonds;

      (5) Administrative fees levied by the corporation, with respect to financial assistance

rendered under this chapter and specified in § 45-38.2-3(a)(4), less operating expenses;

      (6) Other amounts required by provisions of this chapter or agreement, or any other law

or any trust agreement pertaining to bonds to be credited to the fund; and

      (7) Any other funds permitted by law which the corporation in its discretion shall

determine to credit thereto.; and

     (8) From money in the treasury not otherwise appropriated for the fiscal year 2016-2017,

the sum of twenty million dollars ($20,000,000) to be appropriated to the school building

authority capital fund established in this chapter.

     (b) The corporation shall establish and maintain fiscal controls and accounting

procedures conforming to generally accepted government accounting standards sufficient to

ensure proper accounting for receipts in and disbursements from the school building authority

capital fund.

      (c) The school building authority shall establish and maintain internal controls to ensure

that LEAs are providing adequate asset protection plans, all LEAs have equal access and

opportunity to address facility improvements on a priority basis, and to ensure that funding from

the school building authority capital fund has the greatest impact on facility gaps in state priority

areas. The school building authority will also manage necessity of school construction approvals

in accordance with the funding levels set forth by the general assembly.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TOWNS AND CITIES - SCHOOL BUILDING AUTHORITY CAPITAL

FUND

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     This act would appropriate twenty million dollars to the School Building Authority

Capital Fund.

     This act would take effect upon passage.

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