=======

art.009/10/009/9/009/8/009/7/009/6/009/5/009/4/009/3/009/2/009/1

=======

     ARTICLE 9 AS AMENDED

RELATING TO SCHOOL CONSTRUCTION AND EDUCATION

     SECTION 1. Sections 16-7-23, 16-7-36, 16-7-39, 16-7-40, 16-7-41, 16-7-41.1, 16-7-44 of

the General Laws in Chapter 16-7 entitled "Foundation Level School Support [See Title 16 Chapter

97 – The Rhode Island Board of Education Act]" are hereby amended to read as follows:

     16-7-23. Community requirements -- Adequate minimum budget provision.

     (a) The school committee's budget provisions of each community for current expenditures

in each budget year shall provide for an amount from all sources sufficient to support the basic

program and all other approved programs shared by the state. Each community shall contribute

local funds to its school committee in an amount not less than its local contribution for schools in

the previous fiscal year except to the extent permitted by §§ 16-7-23.1 and 16-7-23.2. Provided,

that for the fiscal years 2010 and 2011 each community shall contribute to its school committee in

an amount not less than ninety-five percent (95.0%) of its local contribution for schools for the

fiscal year 2009. Calculation of the annual local contribution shall not include Medicaid revenues

received by the municipality or district pursuant to chapter 8 of title 40. A community which has a

decrease in enrollment may compute maintenance of effort on a per pupil rather than on an

aggregate basis when determining its local contribution; furthermore, a community which

experiences a nonrecurring expenditure for its schools may deduct the nonrecurring expenditure in

computing its maintenance of effort. The deduction of nonrecurring expenditures shall be with the

approval of the commissioner. Provided, however, that notwithstanding any provision of this title

to the contrary, debt service that is no longer carried on the books of any school district shall not

be included in any school districts' district's annual budget, nor shall non-recurring debt service be

included in maintenance of effort as set forth in this chapter, nor shall any non-recruiting debt

service be included in the operating budget of any school district. For the purposes set forth above

non-recurring capital lease payments shall be considered non-recurring debt service. The courts of

this state shall enforce this section by means of injunctive relief.

     (b) Districts' annual maintenance expenditures must meet the requirements of subsection

(b)(1), (b)(2), or (b)(3) of this section.

     (1) A minimum of three percent (3%) of the operating budget shall be dedicated exclusively

for maintenance expenditures as defined in § 16-7-36(11) provided that for FY 2019, that amount

shall be one percent (1%), for FY 2020, that amount shall be one and one-half percent (1.5%), for

FY 2021 that amount shall be two percent (2%), and for FY 2022 that amount shall be two and

one-half percent (2.5%).

     (2) A minimum of three percent (3%) of the replacement value shall be dedicated

exclusively for maintenance expenditures as defined in § 16-7-36(11) provided that for FY 2019,

that amount shall be one percent (1%), for FY 2020 that amount shall be one and one-half percent

(1.5%), for FY 2021 that amount shall be two percent (2%), and for FY 2022 that amount shall be

two and one-half percent (2.5%).

     (3) A minimum of three dollars ($3.00), subject to inflation, per square foot of building

space shall be dedicated exclusively for maintenance expenditures as defined in § 16-7-36(11).

     (c) The department of elementary and secondary education shall be responsible for

establishing a reporting mechanism to ensure the intent of this section is being met. In the event

that a district does not meet its minimum expenditure requirement in a given year, the state shall

direct state housing aid paid pursuant to § 16-7-41-or § 16-105-5, in an amount equal to the

shortfall, to a restricted fund created by the district and dedicated solely to meeting maintenance

requirements.

     (b)(d) Whenever any state funds are appropriated for educational purposes, the funds shall

be used for educational purposes only and all state funds appropriated for educational purposes

must be used to supplement any and all money allocated by a city or town for educational purposes

and, in no event, shall state funds be used to supplant, directly or indirectly, any money allocated

by a city or town for educational purposes. All state funds shall be appropriated by the municipality

to the school committee for educational purposes in the same fiscal year in which they are

appropriated at the state level even if the municipality has already adopted a school budget. All

state and local funds unexpended by the end of the fiscal year of appropriation shall remain a

surplus of the school committee and shall not revert to the municipality. Any surplus of state or

local funds appropriated for educational purposes shall not in any respect affect the requirement

that each community contribute local funds in an amount not less than its local contribution for

schools in the previous fiscal year, subject to subsection (a) of this section, and shall not in any

event be deducted from the amount of the local appropriation required to meet the maintenance of

effort provision in any given year.

     16-7-36. Definitions. 

     The following words and phrases used in §§ 16-7-35 to 16-7-47 have the following

meanings:

     (1) "Adjusted equalized weighted assessed valuation" means the equalized weighted

assessed valuation for a community as determined by the division of property valuation within the

department of revenue in accordance with § 16-7-21; provided, however, that in the case of a

regional school district the commissioner of elementary and secondary education shall apportion

the adjusted equalized weighted assessed valuation of the member cities or towns among the

regional school district and the member cities or towns according to the proportion that the number

of pupils of the regional school district bears to the number of pupils of the member cities or towns.

     (2) "Approved 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 commissioner of elementary and secondary education.

     (3) "Commissioning Agent" means a person or entity who ensures that systems are

designed, installed, functionally tested, and capable of being operated and maintained to perform

in conformity with the design intent of a project.

     (3)(4) "Community" means any city, town, or regional school district established pursuant

to law; provided, however, that the member towns of the Chariho regional high school district,

created by P.L. 1958, ch. 55, as amended, shall constitute separate and individual communities for

the purposes of distributing the foundation level school support for school housing for all grades

financed in whole or in part by the towns irrespective of any regionalization.

     (5) "Facilities Condition Index" means the cost to fully repair the building divided by the

cost to replace the building as determined by the school building authority.

     (6) "Functional Utilization" means the ratio of the student population within a school

facility to the capacity of the school facility to adequately serve students as defined by the school

building authority.

     (7) "Owners Program Manager" means owner's program manager as defined in § 37-2-7.

     (8) "Prime contractor" means the construction contractor who is responsible for the

completion of a project.

     (4)(9) "Reference year" means the year next prior to the school year immediately preceding

that in which aid is to be paid. 

     (10) "Subject to inflation" means the base amount multiplied by the percentage of increase

in the Producer Price Index (PPI) Data for Nonresidential Building Construction (NAICS 236222)

as published by the United States Department of Labor, Bureau of Labor Statistics determined as

of September 30 of the prior calendar year.

     (11) "Maintenance expenditures" means amounts spent for repairs or replacements for the

purpose of keeping a school facility open and safe for use, including repairs, maintenance, and

replacements to a school facility's heating, lighting, ventilation, security and other fixtures to keep

the facility or fixtures in effective working condition. Maintenance shall not include contracted or

direct custodial or janitorial services, expenditures for the cleaning of a school facility or its

fixtures, the care and upkeep of grounds, recreational facilities, or parking lots, or the cleaning of

or repairs and replacements to movable furnishings or equipment.

     16-7-39. Computation of school housing aid ratio.

     For each community, the percent of state aid for school housing costs shall be computed in

the following manner:

     (1) The adjusted equalized weighted assessed valuation for the district is divided by the

resident average daily membership for the district (grades twelve (12) and below); (2) the adjusted

equalized weighted assessed valuation for the state is divided by the resident average daily

membership for the state (grades twelve (12) and below); (1) is then divided by (2) and the resultant

ratio is multiplied by a factor currently set at sixty-two percent (62%) which represents the

approximate average district share of school support; the resulting product is then subtracted from

one hundred percent (100%) to yield the housing aid share ratio, provided that in no case shall the

ratio be less than thirty percent (30%). Provided, that effective July 1, 2010, and annually at the

start of each fiscal year thereafter, the thirty percent (30%) floor on said housing aid share shall be

increased by five percent (5%) increments each year until said floor on the housing aid share ratio

reaches a minimum of not less than forty percent (40%). This provision shall apply only to school

housing projects completed after June 30, 2010 that received approval from the board of regents

prior to June 30, 2012. Provided further, for the fiscal year beginning July 1, 2012 and for

subsequent fiscal years, the minimum housing aid share shall be thirty-five percent (35%) for all

projects receiving board of regents council on elementary and secondary education approval after

June 30, 2012. The resident average daily membership shall be determined in accordance with §

16-7-22(1).

     (2) No district shall receive a combined total of more than twenty (20) incentive percentage

points for projects that commence construction by December 30, 2023, and five (5) incentive points

for projects that commence construction thereafter; provided further, these caps shall be in addition

to amounts received under §§ 16-7-40(a)(1) and 16-7-40(a)(2). Furthermore, a district's share shall

not be decreased by more than half of its regular share irrespective of the number of incentive points

received nor shall a district's state share increase by more than half of its regular share, including

amounts received under §§ 16-7-40(a)(1) and 16-7-40(a)(2), irrespective of the number of incentive

points received.

     16-7-40 Increased school housing ratio for regional schools – Energy conservation –

Access for people with disabilities – Asbestos removal projects Increased school housing

ratio. 

     (a)(1) In the case of regional school districts, the school housing aid ratio shall be increased

by two percent (2%) for each grade so consolidated.

     (2) Regional school districts undertaking renovation project(s) shall receive an increased

share ratio of four percent (4%) for those specific project(s) only, in addition to the combined share

ratio calculated in § 16-7-39 and this subsection.

     (b) In the case of projects undertaken by regionalized and/or non-regionalized school

districts specifically for the purposes of energy conservation, access for people with disabilities,

and/or asbestos removal, the school housing aid share ratio shall be increased by four percent (4%)

for these specific projects only, in the calculation of school housing aid. The increased share ratio

shall continue to be applied for as log as the project(s) receive state housing aid. In order to qualify

for the increased share ratio, seventy-five percent (75%) of the project costs must be specifically

directed to either energy conservation, access for people with disabilities, and/or asbestos removal

or any combination of these projects. The board of regents for elementary and secondary education

shall promulgate rules and regulations for the administration and operation of this section. In the

case of projects undertaken by districts specifically for the purposes of school safety and security,

the school housing aid share ratio shall be increased by five percent (5%) for these specific projects

only, in the calculation of school housing aid. The increased share ratio shall continue to be applied

for as long as the project(s) receives state housing aid. In order to qualify for the increased share

ratio, seventy-five percent (75%) of the project costs must be specifically directed to school safety

and security measures. The council on elementary and secondary education shall promulgate rules

and regulations for the administration and operation of this section.

     (c) Upon the transfer of ownership from the state to the respective cities and towns of the

regional career and technical center buildings located in Cranston, East Providence, Newport,

Providence, Warwick, Woonsocket and the Chariho regional school district, the school housing aid

share ratio shall be increased by four percent (4%) for the renovation and/or repair of these

buildings. To qualify for the increased share ratio, as defined in § 16-7-39, renovation and repair

projects must be submitted for approval through the necessity of school construction process prior

to the end of the second full fiscal year following the transfer of ownership and assumption of local

care and control of the building. Only projects at regional career and technical centers that have

full program approval from the department of elementary and secondary education shall be eligible

for the increased share ratio. The increased share ratio shall continue to be applied for as long as

the renovation and/or repair project receives school housing aid. For purposes of addressing health

and safety deficiencies as defined by the school building authority, including the remediation of

hazardous materials, the school housing aid ratio shall be increased by five percent (5%) so long as

the construction of the project commences by December 30, 2022, is completed by December 30,

2027, and a two hundred fifty million dollar ($250,000,000) general obligation bond is approved

on the November 2018 ballot. In order to qualify for the increased share ratio, twenty-five percent

(25%) of the project costs or a minimum of five hundred thousand dollars ($500,000) must be

specifically directed to this purpose.

     (d) For purposes of educational enhancement, including projects devoted to the

enhancement of early childhood education and career and technical education, the school housing

aid ratio shall be increased by five percent (5%) so long as construction of the project commences

by December 30, 2022, is completed by December 30, 2027, and a two hundred fifty million dollar

($250,000,000) general obligation bond is approved on the November 2018 ballot. In order to

qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a minimum

of five hundred thousand dollars ($500,000) must be specifically directed to these purposes.

     (e) For replacement of a facility that has a Facilities Condition Index of sixty-five percent

(65%) or higher, the school housing ratio shall be increased by five percent (5%) so long as

construction of the project commences by December 30, 2023, is completed by December 30, 2028,

does not receive a bonus pursuant to § 16-7-40(f) or § 16-7-40(g), and a two hundred fifty million

dollar ($250,000,000) general obligation bond is approved on the November 2018 ballot. In order

to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a minimum

of five hundred thousand dollars ($500,000) must be specifically directed to this purpose.

     (f) For any new construction or renovation that increases the functional utilization of any

facility from less than sixty percent (60%) to more than eight percent (80%), including the

consolidation of school buildings within or across districts, the school housing aid ratio shall be

increased by five percent (5%) so long as construction of the project commences by December 30,

2023, is completed by December 30, 2028, and a two hundred fifty million dollar ($250,000,000)

general obligation bond is approved on the November 2018 ballot. In order to qualify for the

increased share ratio, twenty-five percent (25%) of the project costs or a minimum of five hundred

thousand dollars ($500,000) must be specifically directed to this purpose.

     (g) For any new construction or renovation that decreases the functional utilization of any

facility from more than one hundred twenty percent (120%) to between eighty-five percent (85%)

to one hundred five percent (105%), the school housing ratio shall be increased by five percent

(5%) so long as construction of the project commences by December 30, 2023, is completed by

December 30, 2028, and a two hundred fifty million dollar ($250,000,000) general obligation bond

is approved on the November 2018 ballot. In order to qualify for the increased share ratio, twenty-

five percent (25%) of the project costs or a minimum of five hundred thousand dollars ($500,000)

must be specifically directed to this purpose.

     (h) For consolidation of two (2) or more school buildings, within or across districts into

one school building, the school housing aid ratio shall be increased by five percent (5%) so long as

construction of the project commences by December 30, 2023, is completed by December 30, 2028,

a two hundred fifty million dollar ($250,000,000) general obligation bond is approved on the

November 2018 ballot, and does not receive a bonus pursuant to § 16-7-40(f) or § 16-7-40(g). In

order to qualify for the increased share ratio, twenty-five percent (25%) of the project costs or a

minimum of five hundred thousand dollars ($500,000) must be specifically directed to this purpose.

     (i) Any regionalized and/or non-regionalized school district receiving an increased share

ratio for a project approved prior to July 1, 2018, shall continue to receive the increased share ratio

for as long as the project receives state housing aid.

     16-7-41 Computation of school housing aid. 

     (a) In each fiscal year the state shall pay to each community a grant to be applied to the

cost of school housing equal to the following:

     The cost of each new school housing project certified to the commissioner of elementary

and secondary education not later than July 15 of the fiscal year shall be divided by the actual

number of years of the bond issued by the local community or the Rhode Island Health and

Educational Building Corporation in support of the specific project, times the school housing aid

ratio; and provided, further, with respect to costs of new school projects financed with proceeds of

bonds issued by the local community or the Rhode Island Health and Educational Building

Corporation in support of the specific project, the amount of the school housing aid payable in each

fiscal year shall not exceed the amount arrived at by multiplying the principal and interest of the

bonds payable in each fiscal year by the school housing aid ratio and which principal and interest

amount over the life of the bonds, shall, in no event, exceed the costs of each new school housing

project certified to the commissioner of elementary and secondary education. If a community fails

to specify or identify the appropriate reimbursement schedule, the commissioner of elementary and

secondary education may at his or her discretion set up to a five (5) year reimbursement cycle for

projects under five hundred thousand dollars ($500,000); up to ten (10) years for projects up to

three million dollars ($3,000,000); and up to twenty (20) years for projects over three million

dollars ($3,000,000).

     (b) Aid shall be provided for the same period as the life of the bonds issued in support of

the project and at the school housing aid ratio applicable to the local community as set forth in §

16-7-39 at the time of the bonds issued in support of the project as set forth in § 16-7-39 the project

is approved by the council on elementary and secondary education.

     (c) Aid shall be paid either to the community or in the case of projects financed through

the Rhode Island Health and Educational Building, to the Rhode Island Health and Educational

Building Corporation 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 this section, § 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, school or district project financed by the Rhode Island Health and Educational

Building Corporation, upon notification by the Rhode Island Health and Educational Building

Corporation, the general treasurer shall deduct the amount from aid provided under this section, §

16-7-40, § 16-7-44 and § 16-7-15 through § 16-7-34.3 due the city, town or district and direct said

funding to the Rhode Island Health and Educational Building Corporation or its designee.

     (d) Notwithstanding any provisions of law to the contrary, in connection with the issuance

of refunding bonds benefiting any local community, any net interest savings resulting from the

refunding bonds issued by such community or a municipal public buildings authority for the benefit

of the community or by the Rhode Island health and educational building corporation for the benefit

of the community, in each case in support of school housing projects for the community, shall be

allocated between the community and the state of Rhode Island, by applying the applicable school

housing aid ratio at the time of issuance of the refunding bonds, calculated pursuant to § 16-7-39,

that would otherwise apply in connection with school housing projects of the community; provided

however, that for any refundings that occur between July 1, 2013 and December 31, 2015, the

community shall receive eighty percent (80%) of the total savings and the state shall receive twenty

percent (20%). In connection with any such refunding of bonds, the finance director or the chief

financial officer of the community shall certify such net interest savings to the commissioner of

elementary and secondary education. Notwithstanding § 16-7-44 or any other provision of law to

the contrary, school housing projects costs in connection with any such refunding bond issue shall

include bond issuance costs incurred by the community, the municipal public buildings authority

or the Rhode Island health and educational building corporation, as the case may be, in connection

therewith. In connection with any refunding bond issue, school housing project costs shall include

the cost of interest payments on such refunding bonds, if the cost of interest payments was included

as a school housing cost for the bonds being refunded. A local community or municipal public

buildings authority shall not be entitled to the benefits of this subsection (d) unless the net present

value savings resulting from the refunding is at least three percent (3%) of the refunded bond issue.

     (e) 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 Health and

Educational Building Corporation 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

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 this § 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.

     (f) Payments shall be made in accordance with § 16-7-40 and this section.

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

through the issuance bonds through the Rhode Island Health and Educational Building Corporation,

the city of Central Falls shall be considered an "educational institution" within the meaning of

subdivision 45-38.1-3(13) of the general laws.

     16-7-41.1 Eligibility for reimbursement. 

     (a) School districts, not municipalities, may apply for and obtain approval for a project

under the necessity of school construction process set forth in the regulations of the board of regents

for council on elementary and secondary education, provided, however, in the case of municipality

which issues bonds through the Rhode Island Health and Educational Building Corporation to

finance or refinance school facilities for a school district which is not part of the municipality, the

municipality may apply for and obtain approval for a project. Such approval will remain valid until

June 30 of the third fiscal year following the fiscal year in which the board of regents for council

on elementary and secondary education's approval is granted. Only those projects undertaken at

school facilities under the care and control of the school committee and located on school property

may qualify for reimbursement under §§ 16-7-35 – 16-7-47. Facilities with combined school and

municipal uses or facilities that are operated jointly with any other profit or non-profit agency do

not qualify for reimbursement under §§ 16-7-35 – 16-7-47. Projects completed by June 30 of a

fiscal year are eligible for reimbursement in the following fiscal year. A project for new school

housing or additional housing shall be deemed to be completed when the work has been officially

accepted by the school committee or when the housing is occupied for its intended use by the school

committee, whichever is earlier.

     (b) Notwithstanding the provisions of this section, the board of regents shall not grant final

approval for any project between June 30, 2011 and May 1, 2015 except for projects that are

necessitated by immediate health and safety reasons. In the event that a project is requested during

the moratorium because of immediate health and safety reasons, those proposals shall be reported

to the chairs of the house and senate finance committees.

     (c) Any project approval granted prior to the adoption of the school construction

regulations in 2007, and which are currently inactive; and any project approval granted prior to the

adoption of the school construction regulations in 2007 which did not receive voter approval or

which has not been previously financed, are no longer eligible for reimbursement under this

chapter. The department of elementary and secondary education shall develop recommendations

for further cost containment strategies in the school housing aid program.

     (d) Beginning July 1, 2015, the council on elementary and secondary education shall

approve new necessity of school construction applications on an annual basis. The department of

elementary and secondary education shall develop an annual application timeline for LEAs seeking

new necessity of school construction approvals.

     (e) Beginning July 1, 2019, no state funding shall be provided for projects in excess of ten

million dollars ($10,000,000) unless the prime contractor for the project has received

prequalification from the school building authority.

     (f) Beginning July 1, 2019, the necessity of school construction process set forth in the

regulations of the council on elementary and secondary education shall include a single statewide

process, developed with the consultation of the department of environmental management, that will

ensure community involvement throughout the investigation and remediation of contaminated

building sites for possible reuse as the location of a school. That process will fulfill all provisions

of § 23-19.14-5 related to the investigation of reuse of such sites for schools.

     (g) Beginning July 1, 2019, school housing projects exceeding one million five hundred

thousand dollars ($1,500,000) subject to inflation shall include an owners program manager and a

commissioning agent. The cost of the program manager and commissioning agent shall be

considered a project cost eligible for aid pursuant to §§ 16-7-41 and 16-105-5.

     (h) Temporary housing, or swing space, for students shall be a reimbursable expense so

long as a district can demonstrate that no other viable option to temporarily house students exists

and provided that use of the temporary space is time limited for a period not to exceed twenty-four

(24) months and tied to a specific construction project. 

     (i) Environmental site remediation, as defined by the school building authority, shall be a

reimbursable expense up to one million dollars ($1,000,000) per project.

     (j) If, within thirty (30) years of construction, a newly constructed school is sold to a private

entity, the state shall receive a portion of the sale proceeds equal to that project's housing aid

reimbursement rate at the time of project completion.

     (k) All projects must comply with § 37-13-6, ensuring that prevailing wage laws are being

followed, and § 37-14.1-6, ensuring that minority business enterprises reach a minimum of ten

percent (10%) of the dollar value of the bid.

     16-7-44 School housing project costs. 

     School housing project costs, the date of completion of school housing projects, and the

applicable amount of school housing project cost commitments shall be in accordance with the

regulations of the commissioner of elementary and secondary education and the provisions of §§

16-7-35 – 16-7-47; provided, however, that school housing project costs shall include the purchase

of sites, buildings, and equipment, the construction of buildings, and additions or renovations of

existing buildings and/or facilities. School housing project costs shall include the cost of interest

payment on any bond issued after July 1, 1988, provided that such bond is approved by the voters

on or before June 30, 2003, or issued by a municipal public building authority or by the appropriate

approving authority on or before June 30, 2003. Except as provided in § 16-7-41(d), those projects

approved after June 30, 2003, interest payments may only be included in project costs provided

that the bonds for these projects are issued through the Rhode Island Health and Educational

Building Corporation. School housing project costs shall exclude: (1) any bond issuance costs

incurred by the municipality or regional school district; (2) demolition costs for buildings, facilities,

or sites deemed surplus by the school committee; and (3) restrictions pursuant to § 16-7-44.1 below.

A building, facility, or site is declared surplus by a school committee when the committee no longer

has such building, facility, or site under its direct care and control and transfers control to the

municipality, § 16-2-15. The board of regents for council on elementary and secondary education

will promulgate rules and regulations for the administration of this section. These rules and

regulations may provide for the use of lease revenue bonds, capital leases, or capital reserve

funding, to finance school housing provided that the term of any bond, or capital lease shall not be

longer than the useful life of the project and these instruments are subject to the public review and

voter approval otherwise required by law for the issuance of bonds or capital leases. Cities or towns

issuing bonds, or leases issued by municipal public buildings authority for the benefit of a local

community pursuant to chapter 50 of title 45 shall not require voter approval. Effective January 1,

2008, and except for interim finance mechanisms, refunding bonds, borrowing from the school

building authority capital fund, and bonds issued by the Rhode Island Health and Educational

Building Corporation to finance school housing projects for towns, cities, or regional school

districts borrowing for which has previously been authorized by an enabling act of the general

assembly, all bonds, notes and other forms of indebtedness issued in support of school housing

projects shall require passage of an enabling act by the general assembly.

     SECTION 2. Sections 16-7.2-3 and 16-7.2-6 of the General Laws in Chapter 16-7.2 entitled

"The Education Equity and Property Tax Relief Act" are hereby amended to read as follows:

     16-7.2-3. Permanent foundation education aid established.

     (a) Beginning in the 2012 fiscal year, the following foundation education-aid formula shall

take effect. The foundation education aid for each district shall be the sum of the core instruction

amount in subdivision (a)(1) and the amount to support high-need students in subdivision (a)(2),

which shall be multiplied by the district state-share ratio calculated pursuant to § 16-7.2-4 to

determine the foundation aid.

     (1) The core-instruction amount shall be an amount equal to a statewide, per-pupil core-

instruction amount as established by the department of elementary and secondary education,

derived from the average of northeast regional expenditure data for the states of Rhode Island,

Massachusetts, Connecticut, and New Hampshire from the National Center for Education Statistics

(NCES) that will adequately fund the student instructional needs as described in the basic education

program and multiplied by the district average daily membership as defined in § 16-7-22.

Expenditure data in the following categories: instruction and support services for students,

instruction, general administration, school administration, and other support services from the

National Public Education Financial Survey, as published by NCES, and enrollment data from the

Common Core of Data, also published by NCES, will be used when determining the core-

instruction amount. The core-instruction amount will be updated annually. For the purpose of

calculating this formula, school districts' resident average daily membership shall exclude charter

school and state-operated school students.

     (b) The department of elementary and secondary education shall provide an estimate of the

foundation education aid cost as part of its budget submission pursuant to § 35-3-4. The estimate

shall include the most recent data available as well as an adjustment for average daily membership

growth or decline based on the prior year experience.

     (c) In addition, the department shall report updated figures based on the average daily

membership as of October 1 by December 1.

     (2) The amount to support high-need students beyond the core-instruction amount shall be

determined by multiplying a student success factor of forty percent (40%) by the core instruction

per-pupil amount described in subdivision (a)(1) and applying that amount for each resident child

whose family income is at or below one hundred eighty-five percent (185%) of federal poverty

guidelines, hereinafter referred to as "poverty status."

     (b)(d) Local education agencies (LEA) may set aside a portion of funds received under

subsection (a) to expand learning opportunities such as after school and summer programs, full-

day kindergarten and/or multiple pathway programs, provided that the basic education program and

all other approved programs required in law are funded.

     (c)(e) The department of elementary and secondary education shall promulgate such

regulations as are necessary to implement fully the purposes of this chapter.

     16-7.2-6. Categorical programs, state funded expenses.

     In addition to the foundation education aid provided pursuant to § 16-7.2-3, the permanent

foundation education-aid program shall provide direct state funding for:

     (a) Excess costs associated with special education students. Excess costs are defined when

an individual special education student's cost shall be deemed to be "extraordinary". Extraordinary

costs are those educational costs that exceed the state-approved threshold based on an amount

above five times the core foundation amount (total of core-instruction amount plus student success

amount). The department of elementary and secondary education shall prorate the funds available

for distribution among those eligible school districts if the total approved costs for which school

districts are seeking reimbursement exceed the amount of funding appropriated in any fiscal year;

and the department of elementary and secondary education shall also collect data on those

educational costs that exceed the state-approved threshold based on an amount above two (2), three

(3), and four (4) times the core-foundation amount;

     (b) Career and technical education costs to help meet initial investment requirements

needed to transform existing, or create new, comprehensive, career and technical education

programs and career pathways in critical and emerging industries and to help offset the higher-

than-average costs associated with facilities, equipment maintenance and repair, and supplies

necessary for maintaining the quality of highly specialized programs that are a priority for the state.

The department shall develop criteria for the purpose of allocating any and all career and technical

education funds as may be determined by the general assembly on an annual basis. The department

of elementary and secondary education shall prorate the funds available for distribution among

those eligible school districts if the total approved costs for which school districts are seeking

reimbursement exceed the amount of funding available in any fiscal year;

     (c) Programs to increase access to voluntary, free, high-quality pre-kindergarten programs.

The department shall recommend criteria for the purpose of allocating any and all early childhood

program funds as may be determined by the general assembly;

     (d) Central Falls, Davies, and the Met Center Stabilization Fund is established to ensure

that appropriate funding is available to support their students. Additional support for Central Falls

is needed due to concerns regarding the city's capacity to meet the local share of education costs.

This fund requires that education aid calculated pursuant to § 16-7.2-3 and funding for costs outside

the permanent foundation education-aid formula, including, but not limited to, transportation,

facility maintenance, and retiree health benefits shall be shared between the state and the city of

Central Falls. The fund shall be annually reviewed to determine the amount of the state and city

appropriation. The state's share of this fund may be supported through a reallocation of current state

appropriations to the Central Falls school district. At the end of the transition period defined in §

16-7.2-7, the municipality will continue its contribution pursuant to § 16-7-24. Additional support

for the Davies and the Met Center is needed due to the costs associated with running a stand-alone

high school offering both academic and career and technical coursework. The department shall

recommend criteria for the purpose of allocating any and all stabilization funds as may be

determined by the general assembly;

     (e) Excess costs associated with transporting students to out-of-district non-public schools.

This fund will provide state funding for the costs associated with transporting students to out-of-

district non-public schools, pursuant to chapter 21.1 of title 16. The state will assume the costs of

non-public out-of-district transportation for those districts participating in the statewide system.

The department of elementary and secondary education shall prorate the funds available for

distribution among those eligible school districts if the total approved costs for which school

districts are seeking reimbursement exceed the amount of funding available in any fiscal year;

     (f) Excess costs associated with transporting students within regional school districts. This

fund will provide direct state funding for the excess costs associated with transporting students

within regional school districts, established pursuant to chapter 3 of title 16. This fund requires that

the state and regional school district share equally the student transportation costs net any federal

sources of revenue for these expenditures. The department of elementary and secondary education

shall prorate the funds available for distribution among those eligible school districts if the total

approved costs for which school districts are seeking reimbursement exceed the amount of funding

available in any fiscal year;

     (g) Public school districts that are regionalized shall be eligible for a regionalization bonus

as set forth below:

     (1) As used herein, the term "regionalized" shall be deemed to refer to a regional school

district established under the provisions of chapter 3 of title 16, including the Chariho Regional

School district;

     (2) For those districts that are regionalized as of July 1, 2010, the regionalization bonus

shall commence in FY 2012. For those districts that regionalize after July 1, 2010, the

regionalization bonus shall commence in the first fiscal year following the establishment of a

regionalized school district as set forth in chapter 3 of title 16, including the Chariho Regional

School District;

     (3) The regionalization bonus in the first fiscal year shall be two percent (2.0%) of the

state's share of the foundation education aid for the regionalized district as calculated pursuant to

§§ 16-7.2-3 and 16-7.2-4 in that fiscal year;

     (4) The regionalization bonus in the second fiscal year shall be one percent (1.0%) of the

state's share of the foundation education aid for the regionalized district as calculated pursuant to

§§ 16-7.2-3 and 16-7.2-4 in that fiscal year;

     (5) The regionalization bonus shall cease in the third fiscal year;

     (6) The regionalization bonus for the Chariho regional school district shall be applied to

the state share of the permanent foundation education aid for the member towns; and

     (7) The department of elementary and secondary education shall prorate the funds available

for distribution among those eligible regionalized school districts if the total, approved costs for

which regionalized school districts are seeking a regionalization bonus exceed the amount of

funding appropriated in any fiscal year.

     (h) Additional state support for English learners (EL). The amount to support EL students

shall be determined by multiplying an EL factor of ten percent (10%) by the core-instruction per-

pupil amount defined in § 16-7.2-3(a)(1) and applying that amount of additional state support to

EL students identified using widely adopted, independent standards and assessments identified by

the commissioner. All categorical funds distributed pursuant to this subsection must be used to

provide high-quality, research-based services to EL students and managed in accordance with

requirements set forth by the commissioner of elementary and secondary education. The

department of elementary and secondary education shall collect performance reports from districts

and approve the use of funds prior to expenditure. The department of elementary and secondary

education shall ensure the funds are aligned to activities that are innovative and expansive and not

utilized for activities the district is currently funding. The department of elementary and secondary

education shall prorate the funds available for distribution among eligible recipients if the total

calculated costs exceed the amount of funding available in any fiscal year; and

     (i) State support for school resource officers. For purposes of this subsection, a school

resource officer (SRO) shall be defined as a career law enforcement officer with sworn authority

who is deployed by an employing police department or agency in a community-oriented policing

assignment to work in collaboration with one or more schools. School resource officers should have

completed at least forty (40) hours of specialized training in school policing, administered by an

accredited agency, before being assigned. Beginning in FY 2019, for a period of three (3) years,

school districts or municipalities that choose to employ school resource officers shall receive direct

state support for costs associated with employing such officers at public middle and high schools.

Districts or municipalities shall be reimbursed an amount equal to one-half (1/2) of the cost of

salaries and benefits for the qualifying positions. Funding will be provided for school resource

officer positions established on or after July 1, 2018, provided that:

     (1) Each school resource officer shall be assigned to one school:

     (i) Schools with enrollments below one thousand twelve hundred (1,200) students shall

require one school resource officer;

     (ii) Schools with enrollments of one thousand twelve hundred (1,200) or more students

shall require two school resource officers;

     (2) School resource officers hired in excess of the requirement noted above shall not be

eligible for reimbursement; and

     (3) Schools that eliminate existing school resource officer positions and create new

positions under this provision shall not be eligible for reimbursement.

     (i)(j) Categorical programs defined in (a) through (g) shall be funded pursuant to the

transition plan in § 16-7.2-7.

     SECTION 3. Sections 16-105-3, 16-105-7, and 16-105-8 of the General Laws in Chapter

16-105 entitled "School Building Authority" are hereby amended to read as follows:

     16-105-3 Roles and responsibilities. 

     The school building authority roles and responsibilities shall include:

     (1) Management of a system with the goal of ensuring equitable and adequate school

housing for all public school children in the state;

     (2) Prevention of the cost of school housing from interfering with the effective operation

of the schools;

     (3) Management of school housing aid in accordance with statute;

     (4) Reviewing and making recommendations to the council on elementary and secondary

education on necessity of school construction applications for state school housing aid and the

school building authority capital fund, based on the recommendations of the school building

authority advisory board;

     (5) Promulgating, managing Managing and maintaining school construction regulations,

standards, and guidelines applicable to the school housing program, based on the recommendations

of the school building authority advisory board, created in § 16-105-8. Said regulations shall require

conformance with the minority business enterprise requirements set forth in § 37-14.1-6;

     (6) Developing a prequalification and review process for prime contractors, architects and

engineers seeking to bid on projects in excess of ten million dollars ($10,000,000) in total costs

subject to inflation. Notwithstanding any general laws to the contrary, a prequalification shall be

valid for a maximum of two (2) years from the date of issuance. Factors to be considered by the

school building authority in granting a prequalification to prime contractors shall include, but not

be limited to, the contractors history of completing complex projects on time and on budget, track

record of compliance with applicable environmental and safety regulations, evidence that

completed prior projects prioritized the facility's future maintainability, and compliance with

applicable requirements for the use of women and minority owned subcontractors;

     (i) At least annually, a list of prequalified contractors, architects, and engineers shall be

publically posted with all other program information.

     (7) Providing technical assistance and guidance to school districts on the necessity of

school construction application process;

     (6)(8) Providing technical advice and assistance, training, and education to cities, towns,

and/or LEAs and to general contractors, subcontractors, construction or project managers,

designers and others in planning, maintenance, and establishment of school facility space;

     (7)(9) Developing a project priority system, based on the recommendations of the school

building authority advisory board, in accordance with school construction regulations for the state

school housing aid set forth in §§ 16-7-35 to 16-7-47 and the school building authority capital fund,

subject to review and, if necessary, to be revised on intervals not to exceed five (5) years. Project

priorities shall be in accordance with include, but not be limited to, the following order of priorities:

     (i) Projects to replace or renovate a building that is structurally unsound or otherwise in a

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

     (ii) Projects needed to prevent loss of accreditation;

     (iii) Projects needed for the replacement, renovation, or modernization of the HVAC

system in any schoolhouse to increase energy conservation and decrease energy-related costs in

said schoolhouse;

     (iv) Projects needed 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

     (v) Projects needed to comply with mandatory, instructional programs.

     (8)(10) Maintaining a current list of requested school projects and the priority given them;

     (9)(11) Collecting and maintaining readily available data on all the public school facilities

in the state;

     (12) Collecting, maintaining, and making publicly available quarterly progress reports of

all ongoing school construction projects that shall include, at a minimum, the costs of the project

and the time schedule of the project;

     (10)(13) Recommending policies and procedures designed to reduce borrowing for school

construction programs at both state and local levels;

     (11)(14) At least every five (5) years, conducting a needs survey to ascertain the capital

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

state, including public charter schools;

     (12)(15) Developing a formal enrollment projection model or using projection models

already available;

     (13)(16) Encouraging local education agencies to investigate opportunities for the

maximum utilization of space in and around the district;

     (14)(17) Collecting and maintaining a clearinghouse of prototypical school plans that may

be consulted by eligible applicants;

     (18) Retaining the services of consultants, as necessary, to effectuate the roles and

responsibilities listed within this section;

(15)(19) By regulation, offering additional incentive points to the school housing aid ratio

calculation set forth in § 16-7-39, as the authority, based upon the recommendation of the advisory

board, determines will promote the purposes of this chapter. Said regulations may delineate the

type and amounts of any such incentive percentage points; provided, however, that no individual

category of incentive points shall exceed two (2) additional points; and provided further, that no

district shall receive a combined total of more than five (5) incentive percentage points. Such

incentive points may be awarded for a district's use of highly efficient construction delivery

methods; regionalization with other districts; superior maintenance practices of a district; energy

efficient and sustainable design and construction; the use of model schools as adopted by the

authority; and other incentives as recommended by the advisory board and determined by the

authority to encourage the most cost-effective and quality construction. No district shall receive a

combined total of more than twenty (20) incentive percentage points for projects that commence

construction by December 30, 2023, and five (5) incentive points for projects that commence

construction thereafter; provided further, these caps shall be in addition to amounts received under

§§ 16-7-40(a)(1) and 16-7-40(a)(2). Furthermore, a district's share shall not be decreased by more

than half of its regular share irrespective of the number of incentive points received, nor shall a

district's state share increase by more than half of its regular share, including amounts received

under §§ 16-7-40(a)(1) and 16-7-40(a)(2), irrespective of the number of incentive points received.

Notwithstanding any provision of the general laws to the contrary, the reimbursement or aid

received under this chapter or chapter 38.2 of title 45 shall not exceed one hundred percent (100%)

of the sum of the total project costs plus interest costs. If a two hundred and fifty million dollar

($250,000,000) general obligation bond is approved on the November 2018 ballot, projects

approved between May 1, 2015 and January 1, 2018 are eligible to receive incentive points (above

and beyond what the project was awarded at the time of approval) pursuant to § 16-7-39 and § 16-

7-40. Provided, however, any project approved during this time period with a project cost in excess

of one million five hundred thousand dollars ($1,500,000), which does not include an owners

program manager and a commissioning agent, shall only be eligible to receive five (5) incentive

points. Incentive points awarded pursuant to the provisions of this subsection shall only be applied

to reimbursements occurring on or after July 1, 2018. Any project approved between May 1, 2015

and January 1, 2018 that is withdrawn and/or resubmitted for approval shall not be eligible for any

incentive points.

     16-105-7 Expenses incurred by the department school building authority Expenses

incurred by the school building authority. 

     In order to provide for one-time or limited expenses of the department of elementary and

secondary education school building authority under this chapter, the Rhode Island health and

educational building corporation shall provide funding from the school building authority capital

fund, fees generated from the origination of municipal bonds and other financing vehicles used for

school construction, and its own reserves. The school building authority shall, by October 1 of each

year, report to the governor and the chairs of the senate and house finance committees, the senate

fiscal advisor, and the house fiscal advisor the amount sought for expenses for the next fiscal year.

     There is also hereby established a restricted receipt account within the budget of the

department of elementary and secondary education entitled "school construction services", to be

financed by the Rhode Island health and educational building corporation's sub-allotments of fees

generated from the origination of municipal bonds and other financing vehicles used for school

construction and its own reserves. Effective July 1, 2018, this account shall be utilized for the

express purpose of supporting personnel expenditures directly related to the administration of the

school construction aid program.

     16-105-8. School building authority advisory board established. 

     (a) There is hereby established a school building authority advisory board that shall advise

the school building authority regarding the best use of the school building authority capital fund,

including the setting of statewide priorities, criteria for project approval, and recommendations for

project approval and prioritization.

     (b) The school building authority advisory board shall consist of seven (7) members as

follows:

     (1) The general treasurer, or designee;

     (2) The director of the department of administration, who shall serve as chair;

     (3) A member of the governor's staff, as designated by the governor The chair of the Rhode

Island health and educational building corporation; and

     (4) Four (4) members of the public, appointed by the governor, and who serve at the

pleasure of the governor, each of whom shall have expertise in education and/or construction, real

estate, or finance. At least one of these four (4) members shall represent a local education agency

and at least one of these four (4) members shall be an educator.

     (c) In addition to the purposes in subsection (a), the school building authority advisory

board shall advise the school building authority on, including but not limited to, the following:

     (1) The project priorities for the school building authority capital fund;

     (2) Legislation as it may deem desirable or necessary related to the school building

authority capital fund and the school housing aid program set forth in §§ 16-7-35 to 16-7-47;

     (3) Policies and procedures designed to reduce borrowing for school construction programs

at both state and local levels;

     (4) Development of a formal enrollment projection model or consideration of using

projection models already available;

     (5) Processes and procedures necessary to apply for, receive, administer, and comply with

the conditions and requirements respecting any grant, gift, or appropriation of property, services,

or monies;

     (6) The collection and maintenance of a clearinghouse of prototypical school plans which

may be consulted by eligible applicants and recommend incentives to utilize these prototypes;

     (7) The determination of eligible cost components of projects for funding or

reimbursement, including partial or full eligibility for project components for which the benefit is

shared between the school and other municipal and community entities;

     (8) Development of a long-term capital plan in accordance with needs and projected

funding;

     (9) Collection and maintenance of data on all the public school facilities in the state,

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

     (10) Advising districts on the conduct of a needs survey to ascertain the capital

construction, reconstruction, maintenance, and other capital needs for schools across the state;

     (11) The recommendation of policies, rules, and regulations that move the state toward a

pay-as-you-go funding system for school construction programs; and

     (12) Encouraging local education agencies to investigate opportunities for the maximum

utilization of space in and around the district.

     SECTION 4. Sections 45-38.2-2, 45-38.2-3 and 45-38.2-4 of the General Laws in Chapter

45-38.2 entitled "School Building Authority Capital Fund" are 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; provided that for FY 2019 and FY 2020 that amount

shall be used for technical assistance to districts pursuant to § 16-105-3(7);

     (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.

     (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.

     45-38.2-3. Administration.

     (a) The corporation shall have all the powers necessary or incidental to carry out and

effectuate the purposes and provisions of this chapter including:

     (1) To receive and disburse such funds from the state as may be available for the purpose

of the fund subject to the provisions of this chapter;

     (2) To make and enter into binding commitments to provide financial assistance to cities,

towns and LEAs from amounts on deposit in the fund;

     (3) To enter into binding commitments to provide subsidy assistance for loans and city,

town, and LEA obligations from amounts on deposit in the fund;

     (4) To levy administrative fees on cities, towns, and LEAs as necessary to effectuate the

provisions of this chapter; provided the fees have been previously authorized by an agreement

between the corporation and the city, town, or LEA; provided that the fee does not exceed one tenth

of one percent (0.001) of the principal amount;

     (5) To engage the services of third-party vendors to provide professional services;

     (6) To establish one or more accounts within the fund; and

     (7) Such other authority as granted to the corporation under chapter 38.1 of title 45.

     (b) Subject to the provisions of this chapter, and to any agreements with the holders of any

bonds of the corporation or any trustee therefor, amounts held by the corporation for the account

of the fund shall be applied by the corporation, either by direct expenditure, disbursement, or

transfer to one or more other funds and accounts held by the corporation or a trustee under a trust

agreement or trust indenture entered into by the corporation with respect to bonds or notes issued

by the corporation under this chapter or by a holder of bonds or notes issued by the corporation

under this chapter, either alone or with other funds of the corporation, to the following purposes:

     (1) To provide financial assistance to cities, towns and LEAs to finance costs of approved

projects, and to refinance the costs of the projects, subject to such terms and conditions, if any, as

are determined by the department and/or the corporation;

     (2) To fund reserves for bonds of the corporation and to purchase insurance and pay the

premiums therefor, and pay fees and expenses of letters or lines of credit and costs of

reimbursement to the issuers thereof for any payments made thereon or on any insurance, and to

otherwise provide security for, and a source of payment for obligations of the corporation, by

pledge, lien, assignment, or otherwise as provided in chapter 38.1 of title 45;

     (3) To pay or provide for subsidy assistance as determined by the school building authority;

     (4) To provide a reserve for, or to otherwise secure, amounts payable by cities, towns, and

LEAs on loans and city, town, and LEA obligations outstanding in the event of default thereof;

amounts in any account in the fund may be applied to defaults on loans outstanding to the city,

town, or LEA for which the account was established and, on a parity basis with all other accounts,

to defaults on any loans or city, town, or LEA obligations outstanding; and

     (5) To provide a reserve for, or to otherwise secure, by pledge, lien, assignment, or

otherwise as provided in chapter 38.1 of title 45, any bonds or notes of the corporation issued under

this chapter.

     (c) The repayment obligations of the city, town, or LEA for loans shall be in accordance

with its eligibility for state aid for school housing as set forth in §§ 16-7-39, 16-77.1-5, and 105-

3(15).

     (d) In addition to other remedies of the corporation under any loan or financing agreement

or otherwise provided by law, the corporation may also recover from a city, town or LEA, in an

action in superior court, any amount due the corporation together with any other actual damages

the corporation shall have sustained from the failure or refusal of the city, town, or LEA to make

the payments or abide by the terms of the loan or financing agreement.

     45-38.2-4 Payment of state funds. 

     (a) Subject to the provisions of subsection (b), upon the written request of the corporation,

the general treasurer shall pay to the corporation, from time to time, from the proceeds of any bonds

or notes issued by the state for the purposes of this chapter or funds otherwise lawfully payable to

the corporation for the purposes of this chapter, such amounts as shall have been appropriated or

lawfully designated for the fund. All amounts so paid shall be credited to the fund in addition to

any other amounts credited or expected to be credited to the fund.

     (b) The corporation and the state may enter into, execute, and deliver one or more

agreements setting forth or otherwise determining the terms, conditions, and procedures for, and

the amount, time, and manner of payment of, all amounts available from the state to the corporation

under this section.

     (c) The corporation, per order of the school building authority capital fund, is authorized

to grant a district or municipality its state share of an approved project cost, pursuant to §§ 16-7-39

and 16-77.1-5. Construction pay-as-you-go grants received from the school building authority

capital fund shall not be considered a form of indebtedness subject to the provisions of § 16-7-44.

     (d)(1) Notwithstanding the provisions of §§ 45-12-19 and 45-12-20, and notwithstanding

city or town charter provisions to the contrary, prior to July 1, 2016, no voter approval shall be

required for loans in any amount made to a city or town for the local education agency's share of

total project costs.

     (2) Notwithstanding the provisions of §§ 45-12-19 and 45-12-20, and notwithstanding city

or town charter provisions to the contrary, on or after July 1, 2016, up to five hundred thousand

dollars ($500,000) may be loaned to a city or town for the local education agency 's share of total

project costs without the requirement of voter approval.

     (e)(1) Funds from the two hundred fifty million ($250,000,000) in general obligation

bonds, if approved on the November 2018 ballot, shall first be used to support the state share of

foundational housing aid and shall be offered to LEAs on a pay-as-you-go basis and not as a

reimbursement of debt service for previously completed projects.

     (2) Funds to support the state share of foundational housing aid in a given year on a pay-

as-you-go basis shall be offered proportionately to LEAs based on the total state share of

foundational housing aid awarded to projects in that year.

     (3) Any excess funds may be transferred to the school building authority capital fund in an

amount not to exceed five percent (5%) of any amount of bonds issued in a given year.

     (e)(f) Notwithstanding any provision to the contrary, the term of any bond, capital lease,

or other financing instrument shall not exceed the useful life of the project being financed.

     (g) In accordance with §§ 45-10-5.1 and 45-10-6, the auditor general shall give guidance

to municipalities and school districts on the uniform financial reporting of construction debt

authorized and issued, and on funding received from the state within ninety (90) days of the passage

of this article.

     SECTION 5. This article shall take effect upon passage.