2022 -- H 8267 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

AUTHORIZING THE CITY OF NEWPORT AND TOWN OF MIDDLETOWN TO

ESTABLISH A REGIONAL SCHOOL DISTRICT AND PROVIDING FOR STATE AID FOR

SCHOOL HOUSING COSTS AT SCHOOL HOUSING REIMBURSEMENT RATES FOR

REGIONAL SCHOOL DISTRICTS WHICH, INCLUDING INCENTIVES, MAY EXCEED

80% OF DEBT SERVICE FOR EXPENDITURES ELIGIBLE FOR STATE AID

     Introduced By: Representatives Abney, Carson, Cortvriend, and Ruggiero

     Date Introduced: May 19, 2022

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Authority to establish a regional school district. Upon completion of the

approvals set forth in section 24 of this act, the city of Newport and the town of Middletown are

hereby authorized to establish a regional school district to combine both existing school districts

into a single regional school district. The provisions contained in §§ 16-3-1 through 16-3-25,

inclusive, of the general laws of Rhode Island and the provisions of chapter 2 of title 16, that are

applicable to regional school districts which are not inconsistent with this act shall be applicable to

the regional school district. The regional school district, sometimes referred to as the "regional

school district" or "district" shall be governed by a regional school district committee, hereinafter

sometimes referred to as the "regional school district committee" or "regional committee".

     SECTION 2. Minimum state housing aid ratio. Subject to completion of the approvals set

forth in section 24 of this act, all general obligation bonds issued between January 1, 2022 and June

30, 2026 for school construction projects by the city of Newport and the town of Middletown shall

be provided with state aid for school housing costs at school housing reimbursement rates for

regional school districts, in accordance with §§ 16-7-35 through 16-7-47 which, including

incentives, may exceed eighty percent (80%) of debt service for expenditures eligible for state aid.

For purposes of this section, the issuance of bond anticipation notes by the town of Middletown for

school construction prior to June 30, 2026 shall entitle the town to a state housing aid ratio of up to

eighty percent (80%) of debt service for eligible expenditures.

     SECTION 3. Transition period. (a) A transition period shall be established commencing

on the date on which all approvals required by section 24 of this act have been completed. This

transition period shall run from the date of authorization of the voters or the date the council for

elementary and secondary education votes to approve the creation of the regional school district,

whichever is later, through June 30, 2024.

     (b) During the transition period, the existing school committees in Newport and

Middletown shall continue to operate their respective school districts. The existing school

committees shall cease to exist after June 30, 2024 and unless prohibited by federal law, any

unrestricted monies in the city of Newport school fund and the Town of Middletown school fund

shall revert to the City of Newport and the town of Middletown, respectively, to be deposited on

June 30, 2024 into restricted funds or accounts to be used for Newport and Middletown educational

expenses. The existing school committees shall not enter into any contract that extends beyond

June 30, 2024, unless such contract is formally approved by the elected regional school district

committee.

     (c) During the transition period, the regional school district committee shall develop and

implement plans for the effective operation of the regional school district, including programs,

staff, facilities, transportation, and finances.

     SECTION 4. Labor provisions. All employees employed by the respective school

committees as of June 30, 2024, who are subject to a collective ‎bargaining agreement, will be

offered employment by the regional school district in the same position or a substantially similar

position, subject to the terms of the applicable collective bargaining agreement. Any such employee

who on the ‎date of his or her employment with the regional school district is on tenure may ‎continue

thereafter to serve on a tenure basis. All employees who become employees of the ‎regional school

district shall be given full credit for the period of their employment with the local school ‎committees

of the respective member towns for the purposes of seniority, pensions and all other

relevant ‎purposes. During the transition period, the existing collective bargaining agreements

covering certified and non-certified personnel in both the city of Newport and the town of

Middletown will be honored, and those agreements will remain in effect until their expiration

date(s) or until a replacement agreement is negotiated with the regional school district committee.

All employees employed in positions to be superseded or rendered redundant by the establishment

of the regional school district may be given preferred consideration for similar positions in the

regional school district to the extent that such positions exist or are available therein.

     (b) Any employee or former employee of the school department of the member city or

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town ‎who subsequently becomes an employee of the regional school district shall be

granted ‎service credits in the teachers plan or the municipal employees retirement system plan

of ‎the Employees Retirement System of the State of Rhode Island ("ERSRI") for his or her term ‎of

service with the member city or town school department prior to June 30, 2024 provided ‎that: (1)

An actuarial study is made by the ERSRI to determine the cost, if any, to include ‎each transferred

employee for the regional school district taking into account employer and ‎employee contributions

as of June 30, 2024, and calculating funding schedules for the ‎respective portions of the unfunded

liability of the member city and town that should be one hundred percent (100%) funded by June

30, 2024; and (2) The contributions of both the employer and employee ‎made to ERSRI as of June

30, 2024 for the account of the city of Newport or the town of ‎Middletown to benefit the transferred

employee shall be allocated to an account at ERSRI ‎for the regional school district to benefit the

transferred employee. The member city and ‎town shall appropriate and transfer to an account at

ERSRI for the regional school district, ‎annual amounts to pay their respective remaining unfunded

pension liability as of June 30, ‎‎2024 in accordance with the funding schedules in the actuarial study

made by ERSRI. The ‎member city and town shall remain responsible for making their respective

employer ‎contributions for participants in the ERSRI plans who are inactive as of June 30, 2024.‎

For purpose of this section 4, "transferred employee" means any individual who was (a)

An ‎employee of a member city or town school department on June 30, 2024; and was (b) An ‎active

member of the teachers plan or the municipal employees retirement system ‎plan of the ERSRI on

June 30, 2024 and who, from and after the July 1, 2024, is an employee ‎of the regional school

district.‎ Any individual who is a transferred employee shall not be treated as an employee

member ‎of ERSRI for any period of employment during which he or she elects to participate in

any ‎other retirement income benefit funded by the regional school district under a retirement ‎plan

sponsored by the regional school district and intended to qualify under § 401(a) or § ‎‎408(k) [26

U.S.C. § 401(a) or § 408(k) of the United States Internal Revenue Code].‎

     (c) For the purpose of funding any liability for other post-employment benefits, ‎including,

but not limited to, health care and dental care ‎benefits other than pensions (hereinafter ‎referred to

as "OPEB")‎, in ‎accordance with government accounting standards board statements 43 and 45,

the ‎regional school district committee shall establish an OPEB trust in accordance with § 16-2-9.5

of the general laws or may enter into an OPEB arrangement with a ‎corporation established pursuant

to chapter 5 of title 45. The OPEB trust or ‎arrangement shall be a qualifying trust in accordance

with government accounting ‎standards board statement 75. Contributions to the trust and earnings

thereon shall ‎be irrevocable and the assets of the trust shall be held solely to meet the current

and ‎future liabilities of the regional school district for OPEB. All monies held in the ‎trust shall be

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accounted for separately from other funds of the regional school ‎district and shall not be subject to

the claims of any general creditors of the regional ‎school district. ‎For the purpose of determining

OPEB liabilities for transferred employees, the ‎member city and town shall jointly contract with a

"qualified actuarial firm." A ‎‎"qualified actuarial firm" shall be staffed by enrolled actuary who is a

member of ‎the American Academy of Actuaries, a Fellow or Associate of the Society of ‎Actuaries,

or a Fellow or Associate of the Conference of Actuaries in Public ‎Practice. The qualified actuarial

firm shall calculate, employing the actuarial ‎assumptions applied in the most recently published

member city and town actuarial ‎reports, respectively, for all active school OPEB participants as of

June 30, 2024: ‎‎(a) The member city's and town's respective actuarial accrued liabilities for

OPEB; ‎‎(b) Their respective unfunded liabilities for OPEB; (c) The portion of the total ‎actuarial

accrued liability for OPEB that should be 100% funded as of June 30, ‎‎2024 employing the funding

schedule applied in the city and town actuarial reports ‎for any OPEB plan participants who may

become transferred employees of the ‎regional school district which shall be frozen as of June 30,

2024 (the "June 30, ‎‎2024 OPEB Transfer Liability"); and (d) Funding schedules for the member

city ‎and town to pay to their remaining respective unfunded OPEB liability as of June ‎‎30, 2024.

The member city and town shall each appropriate and transfer to the ‎regional school district on July

1, 2024 an amount equal to their ‎respective OPEB Transfer Liability. The member city and town

shall appropriate ‎and transfer to the regional school district, annual amounts to pay their ‎remaining

unfunded OPEB Transfer Liability in accordance with the funding schedules ‎calculated by the

qualified actuarial firm. The member city and town shall remain ‎responsible for paying one hundred

percent (100%) of the benefits of the participants in their respective ‎OPEB plans who are inactive

participants as of June 30, 2024.‎

     SECTION 5. The regional school district committee. (a) There shall be a regional

committee for said district consisting of ‎seven (7) elected members, with a minimum of three (3)

residents of the city of Newport and a minimum of three (3) residents of the town of Middletown.

All members of said regional committee shall be elected at-large in district-wide elections on a

non-partisan basis for terms hereinafter set forth. The three (3) candidates from each of the city of

Newport and the town of Middletown receiving the highest number of votes shall be elected to the

regional school district committee and the seventh member of the regional school district committee

shall be the candidate who receives the next highest number of votes, without regard to residency.

     (b) Members of the existing school committees are eligible for election to the regional

committee, and if elected, the council of the city or town represented by such regional committee

member shall, by majority vote, appoint a member to fill the unexpired term on the existing school

committee. The first regional committee ‎shall be elected in a special election to be held in

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November, 2023. In ‎the special election of 2023 each regional school district committee member

shall be elected to serve a term of three (3) years. At the next general election in November, 2026,

and at each general ‎election thereafter, members shall be elected for a term of two (2) ‎years.‎

     (c) In the event of any vacancy by death, resignation or incapacity to ‎serve, the city or town

council of the municipality where the former committee member resided ‎shall fill such vacancy by

majority vote of the city or town council for a term lasting until the next general election. Members

of the ‎regional school district committee shall receive an annual salary that is ‎equal to the average

of the salaries of the city council members of ‎Newport and the town council members of

Middletown as of the preceding July 1.‎

     SECTION 6. Organization of the regional school district committee. (a) At the first meeting

of the regional school district committee, to be held ‎within thirty (30) days following the November

2023 election of members, the regional committee shall elect a chairperson and ‎such other officers

as are herein authorized. An organizational meeting to elect officers shall be held within thirty (30)

days of the qualification of elected members following each general election thereafter. At the

organizational meeting of the regional committee following the November 2026 election, and each

two (2) years thereafter, the chairpersonship shall first be offered to a regional committee member

from the municipality other than the city or town from which the current chairperson was elected.

     (b) In the event that no member from the city or town which is entitled to the

chairpersonship is willing to serve as chairperson, this office shall be offered to any regional

committee member. The said regional committee shall also elect a vice chairperson, which shall

first be offered to members of the city or town other than that which the chairperson represents, a

secretary, and a treasurer, and such other officers as it deems advisable. The said secretary and

treasurer may be the same individual.

     (c) The regional committee shall prescribe the powers and duties of its officers, fix the time

and place of its regular meetings, and provide for the calling of special meetings.

     SECTION 7. Powers and duties of the regional school district committee. (a) The regional

school district shall be a body politic and corporate and shall have all of the powers and duties

conferred by law upon school committees, and all additional powers and duties conferred upon

regional school districts provided for in § 16-3-11 of the general laws, including but not limited to:

     (1) To adopt a name and a corporate seal.

     (2) To sue and be sued but only to the same extent and upon the same conditions that a

town may sue or be sued.

     (3) To operate and exercise care and control of all public schools in the district, including

land, buildings, equipment, furnishings, and supplies for the same, for the joint and common use

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of the member cities or towns incorporated into the said regional school district, for the education

of pupils attending grades pre-kindergarten through twelve (pre-k through 12) inclusive, and with

all the powers and duties pertaining to education and schools conferred by law in this state upon

school committees and towns generally.

     (4) To acquire by purchase, gift, or other means of transfer or by condemnation, land, and

improvements within the district as a site for a school or schools. To acquire also by any such

method such rights-of-way and other easements as may be required in connection with the use of

the site.

     For the purpose of acquiring land by condemnation for schools, the regional district is given

all the powers conferred upon cities and towns for the condemnation of land for school purposes

by § 16-9-5; provided, however, that, the amount of land taken by the committee may exceed five

(5) acres but shall not exceed thirty (30) acres for any one building site. The description, plat, and

statement of the land taken under this chapter shall be signed by the chairperson of the regional

school district committee and filed in the records of land evidence as provided in § 16-9-6. The

owners of land or any person entitled to any estate or interest therein so taken by the regional

committee shall have the same right of petition, the right of jury trial, and all other rights under the

provisions of §§ 16-9-7 and 16-9-8.

     Upon the filing of the description, plat, and statement of the land taken, the title of the land

shall vest absolutely and in fee simple in the regional district notwithstanding that any of the land

taken is devoted to a public use, and the regional district, acting by and through the regional

committee and its duly authorized agents, may immediately enter and take possession of the land

without any process of law otherwise required by statute or common law, and remove any or all

buildings, property, or other impediments thereon, and occupy, use, and improve the land for the

purposes of § 16-3-2 notwithstanding any other provision of law.

     The regional district, through its regional committee, is authorized and empowered to pay

for the cost of acquiring land for the school site from the proceeds received from the sale of bonds

issued pursuant to the provisions of this act, whether the same be acquired by purchase or by

condemnation, or partly by purchase and partly by condemnation.

     (5) To secure competent architectural and engineering services for the taking of surveys,

the preparation of plans and specifications for the construction and equipment of a school or schools

in the regional district, and to employ such clerical assistance as may be necessary.

     (6) To construct, furnish, and equip schools and improve the grounds upon which the

schools are located and to make additions to the schools as may be needed.

     (7) To dispose of real or personal property by sale, lease, or gift whenever such disposal is

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determined to be in the best interest of the regional district, as hereinafter provided.

     (8) To lease from the city of Newport and town of Middletown, for the sum of one dollar

($1.00) per year, school buildings, facilities, furnishings, equipment and the land upon which they

are sited, that are owned, leased or financed by the respective city or town. The municipalities may

retain title to the buildings, facilities, furnishings and equipment and land. The respective

municipality issuing the indebtedness shall continue to pay for all debt service for bonds, and

rentals for lease-purchase agreements, for such school buildings, facilities, furnishings, equipment

and land, unless and until such time as the regional school district may acquire such buildings,

facilities, furnishings, equipment and land. For the avoidance of doubt, the City of Newport has

issued (a) Ninety-eight million five hundred thousand dollars ($98,500,000) General Obligation

School Bonds dated March 25, 2022, due April 1, 2026-2047, inclusive, to the Rhode Island Health

and Educational Building Corporation ("RIHEBC"); (b) Seventeen million nine hundred twenty

thousand dollars ($17,920,000) General Obligation School Refunding Bonds dated May 21, 2021,

due April 1, 2023-2033, inclusive, to RIHEBC; (c) Two million eight hundred sixty-five thousand

dollars ($2,865,000) General Obligation School Bonds dated August 17, 2016, due April 1, 2017-

2026, inclusive, to RIHEBC; and (d) A lease-purchase agreement maturing on August 27, 2023,

and the town of Middletown has issued (a) Nine million seven hundred fifty thousand dollars

($9,750,000) General Obligation School Bonds dated May 16, 2017, due April 1, 2018-2026,

inclusive, and April 1, 2037 to RIHEBC; and (b) May issue general obligation debt prior to June

30, 2026 as described in section 2 of this act. The regional school district shall assume and pay for

all maintenance, upkeep, and operation of the buildings, facilities, furnishings, equipment and land

leased by it from the respective municipalities.

     (9) To make all contracts and agreements, including but not limited to collective bargaining

agreements, that may be necessary for the exercise of the powers vested in the regional committee

by subsections (a)(4), (a)(5), (a)(6) and (a)(7) hereof; provided, however, that, the regional

committee shall not make any expenditure or incur any liability unless the necessary appropriations

have been authorized by the joint finance committee.

     (10) To issue, when and if authorized by the joint finance committee hereinafter provided

for, after approval by a majority of the voters in the regional school district present and voting, in

a referendum authorized and conducted in accordance with the constitution and laws of the state of

Rhode Island, under its corporate name and seal, bonds to an amount not exceeding the debt limits

as hereinafter described, the bonds shall be signed by the chairperson and treasurer or the regional

committee; the principal thereof and the interest thereon shall be payable in any coin or currency

of the United States of America, that, at the time of payment, is legal tender for public and private

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debts, and the debt secured by the bonds shall be obligatory on the district to the same extent as

other debts lawfully contracted by the district.

     (11) To borrow temporarily from time to time such sums as may be authorized by the joint

finance committee as hereinafter provided, and to issue temporary notes of the regional district

thereof, the proceeds whereof shall be used only for the purposes set forth in subsections (a)(4),

(a)(5), and (a)(6) of this section. Each authorized issue shall constitute a separate loan. Each issue

may be for a period of not more than five (5) years and notes issued for a shorter period may be

refunded or renewed from time to time by the issue of other temporary notes maturing within the

required period of five (5) years, provided, that the period from the date of issue of the original loan

to the date of maturity of the refunding or renewal loans shall not be more than five (5) years.

     Temporary notes of the regional district shall be signed by the chairperson and treasurer of

the regional committee, and may bear interest or be sold at a discount. The period and discount or

interest rate and other particulars of the temporary notes shall be fixed by the regional committee.

The temporary notes and renewal notes, including interest or discount on the notes and the expense

of preparing, issuing, and marketing the notes, shall, unless otherwise taken care of, be funded by

the issue of bonds under the provisions of subsection (a)(10) of this section. The aggregate principal

amount of temporary notes issued and outstanding hereunder shall not at any time exceed the sum

of the bonds authorized to be issued.

     (12) To incur temporary debt after the regional district school or schools are constructed

and in operation in anticipation of revenue to be received.

     (13) To apply for and receive, accept and use, subject to the provisions of this act, any

town, state, or federal funds or assistance, or both, including school housing aid as may be provided,

whether in the form of a grant or a loan, or both, including, specifically, such funds or assistance

from state or federal sources as the member city or town would otherwise be entitled to apply for

and receive from such sources in the event that the regional district did not exist, but the use of

which the member city or town might be individually excluded by reason of the existence of the

regional district.

     (14) To receive, accept and use any gift from private sources; and to receive and disburse

funds for any regional district purpose.

     (15) To engage legal counsel.

     (16) To engage and employ a superintendent of schools for the regional district on a

contractual basis for a term of up to three (3) years. The person so employed shall have all the

powers and duties imposed upon a superintendent of schools by law.

     (17) To reallocate any surplus as of the last day of the fiscal year so that any such surplus

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may be carried forward into the next fiscal year and remain in the regional district accounts.

     The regional committee shall annually cause an independent audit to be made of the

accounts of the regional district within one hundred twenty (120) days after the fiscal year ends,

and on completion of each audit, a report thereof shall be made to the members of the regional

committee. Copies of the audit report shall also be made available to the city and town council, the

city and town clerk, and the highest elected official in each member city or town.

     The secretary and the treasurer may furnish surety bond to the regional district in an amount

to be determined annually be the regional committee. The expense of any such bond shall be

chargeable to the district.

     (18) The quorum for the transaction of business shall require that at least four (4) members

of the committee be present and that both municipalities of the regional school district be

represented, but in the absence of a quorum, less than a simple majority may adjourn.

     SECTION 8. Regional School Building Committee. Whenever the regional school district

shall approve the issuance of bonds of the district to finance construction, additions, renovations

and extraordinary repairs to schools in the district, the regional school district committee may

appoint a regional district school building committee in accordance with state law and regulations.‎

     SECTION 9. Composition of district. The regional school district may consist of all public

schools in the city of Newport and the town of Middletown.

     SECTION 10. Type of district. The regional school district may include all grades and

programs now provided by Newport and Middletown, and any other grades and programs so

specified by the regional committee.

     SECTION 11. Means of apportioning expenses. (a) The total education costs of the

regional district shall be apportioned between the city and town based upon a per public pupil

calculation, using enrollment as of the prior October 1, provided, however, that gifts, grants,

payments and federal and state aid associated with the students or programs of one member city or

town shall, to the extent permitted by law, be allocated to that city or town and counted towards the

that city or town's proportionate share of costs, such that regionalization does not adversely affect

receipt and allocation of gifts, grants, payments and aid. Revenues derived from the cell tower lease

on the Rogers High School property shall be counted toward Newport's proportionate share of costs.

Revenues derived from the cell tower lease on the Gaudet Middle School property shall be counted

toward Middletown's proportionate share of costs. On or before March 1 commencing in 2024, the

regional district shall determine the proportionate share of the costs of the regional district for the

next fiscal year to be borne by the city and town and shall notify the respective directors of finance

of the city and town of the respective proportionate shares.

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     ‎The town or city treasurer of each town or city of the regional school district shall forward

to the regional school district on July 1, October 1, January 1, and April 1 one-fourth (¼) of the

amount due for the operation of the regional school district for the fiscal year beginning July 1 from

each town or city or parts thereof comprising the regional school district.

     SECTION 12. Transportation. Transportation shall be provided by the regional district

consistent with state law. Transportation shall be considered an operational cost of the regional

district.

     SECTION 13. Admittance and withdrawal of districts. (a) Any other city or town may be

admitted to the regional school district upon:

     (1) Adoption of an appropriate amendment to this act, by an act of the general assembly

accepted and approved by a vote of the qualified voters of the city of Newport and a qualified voters

of the town of Middletown, and approval of the qualified voters of the city or town seeking

admission; and

     (2) Upon compliance with such provisions of law as may be applicable and with such

additional requirements as may be set forth in the act of amendment.

     (b) Any member city or town of the regional school district may petition to withdraw from

the district at any meeting of the district committee upon six (6) months written notice, provided

that the petition for withdrawal shall have been approved by a majority of the qualified voters of

the city or town voting at a referendum called for that purpose. Such petition shall not be approved

except upon payment to the regional school district of any costs which have been apportioned and

certified during the year in which the withdrawal is to take place. Such city or town shall remain

liable to the district for its share of the indebtedness of the district outstanding, including bonds, if

any, at the time of such withdrawal, and for interest thereon, to the same extent and in the same

manner as if the city or town had not withdrawn from the regional school district, except as such

liability shall be reduced by any amount which the city or town has paid over at the time of

withdrawal and which has been applied to the payment of such indebtedness and interest. Any

money received by the regional school district from a withdrawing city or town for the payment of

indebtedness or interest thereon shall be used only for such purpose, and until so used, shall be

deposited in trust in the name of the district with RIHEBC if such indebtedness was issued through

RIHEBC, or with the trustee or paying agent for such indebtedness. If the city or town director of

finance is the paying agent for such indebtedness, the money shall be deposited with a financial

institution as escrow agent until applied to the indebtedness.

     SECTION 14. Preparation and adoption of budget. (a) It shall be the duty of the regional

school district superintendent to present to the regional committee by January 15 a preliminary

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budget containing estimates of the amount of money needed to operate the regional school district

for the ensuing fiscal year. The form of said budget shall conform to the accounting system of the

state department of education.

     (b) The regional committee shall prepare and approve a budget which it believes will

efficiently operate the regional district for the ensuing fiscal year by February 15 of each year

commencing with the fiscal year ending June 30, 2025. The regional committee shall not adopt a

budget that exceeds the prior year budget by more than four percent (4%) unless an "emergency

situation" exists consistent with § 44-5-2(d)(2) or the regional school district experiences debt

service increases for bonds issued by the regional school district consistent with § 44-5-2(d)(4).

Upon approving the budget, the regional committee shall, within seven (7) days, post the budget at

city hall in Newport and town hall in Middletown, and, within ten (10) days, publish the budget in

one or more newspapers of general circulation in each or both municipalities.

     (c) ‎The regional committee shall, by February 15, submit its budget to a joint

finance ‎committee for its approval. The joint finance committee shall consist of seven (7) members.

The ‎members of the joint finance committee shall be appointed by the respective councils of the

city ‎of Newport and the town of Middletown. The members of the joint finance

committee ‎representing the city of Newport shall consist of the city manager or a designee, and

two ‎members of the city council appointed by majority vote of the city council, and if the city is to

be ‎represented by four (4) members, another representative from Newport which may

include ‎another representative from the Newport city council. The members of the joint

finance ‎committee representing the town of Middletown shall consist of the town administrator or

a ‎designee, two members of the town council appointed by majority vote of the town council, and ‎if

the town is to be represented by four (4) members, another representative from Middletown ‎which

may include another representative from the Middletown town council. ‎

     During years in which there are four (4) residents from the City of Newport on the ‎regional

committee, the joint finance committee shall be comprised of four (4) members ‎appointed by the

Town of Middletown and three (3) members appointed by the City of ‎Newport. During years in

which there are four (4) residents from the Town of Middletown on ‎the regional committee, the

joint finance committee shall be comprised of four (4) members ‎appointed by the City of Newport

and three (3) members appointed by the Town of ‎Middletown. The first joint finance

committee ‎shall be appointed to serve a term of one (1) year ‎following the election of the first

regional committee in November, 2023. Following the next ‎general election in November, 2026,

and following each general ‎election thereafter, members ‎shall be appointed to the joint finance

committee for a term of two (2) ‎years, such terms to run ‎concurrent with that of the regional

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committee. ‎ In the event of any vacancy by death, ‎resignation or incapacity to ‎serve, the city or

town council of the municipality which appointed ‎the former committee member ‎shall fill such

vacancy by majority vote of the city or town council ‎for a term lasting until the next scheduled

appointment. ‎

     The joint finance committee shall approve a budget by March 15 of each year. Upon the

approval ‎of a budget by the joint finance committee, the regional committee shall, within seven (7)

days, ‎post the budget at Newport city hall and Middletown town hall, and, within ten (10) days,

shall ‎publish the budget in one or more newspapers of general circulation in each or

both ‎municipalities. If, however, a budget is not adopted by the joint finance committee before July

1 ‎of each year, then the regional ‎school committee shall operate the regional school district

in ‎accordance with the provisions of ‎§ 16-2-23 of the general laws, and the member city and

town ‎shall make payments to the regional ‎school district, based upon the amounts appropriated for

the ‎support of the schools by the ‎member city and town in the preceding fiscal year;

provided, ‎however, that the right of the regional ‎school committee to take all actions it deems

necessary ‎under the provisions of § 16-2-‎‎21.4 of the general laws shall in all events remain in full

force and ‎effect at all times and shall ‎not be impaired or restricted in any respect by any of the

provisions ‎of this act.‎

     (d) Upon approval of the budget by the joint finance committee, each municipality shall

appropriate the funds for the regional district which shall be apportioned between the municipalities

on a per public pupil calculation using enrollment as of the prior October 1.

     SECTION 15. Receipt and disbursement of aid. (a) All state and federal aid shall be

distributed directly to the regional district with payment of such aid beginning the first fiscal year

that the regional district shall be in operation, which is July 1, 2024 through June 30, 2025.

     (b) Payment of additional state aid for regionalization as contained in § 16-7-20 shall also

be made in the first fiscal year that the regional district shall be in operation, which is July 1, 2024

through June 30, 2025. The amount of the additional aid for regionalization shall be calculated on

all expenditures, as approved by the council for elementary and secondary education of the state

board of education in accordance with currently existing rules and regulations for administering

the state aid of each district, made in the period of July 1, 2022 through June 30, 2023, as defined

in § 16-7-16. The regional committee may request from the commissioner an advance from the

additional state aid estimated for fiscal year 2024-2025, in an amount not to exceed ten percent

(10%) of the bonus aid, for use during the period between authorization of voters to June 30, 2024.

The advanced amounts shall be deducted from the operations aid to be paid for the period July 1,

2024 to June 30, 2025. All advanced amounts shall be subject to all applicable state laws and

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regulations.

     SECTION 16. Transfer of plant and facilities. The city of Newport and the town of

Middletown may lease to the regional school district, for the sum of one dollar ($1.00) per year,

school buildings, facilities, furnishings, equipment and the land upon which they are sited that are

owned, leased or financed by the respective municipalities.

     SECTION 17. Debt limitation. The regional district shall be subject to the statutory debt

limit for incurring debt to ten percent (10%) of the full valuation of the taxable real property within

the district as determined by the state department of revenue.

     SECTION 18. Regional school district fiscal year. The regional district fiscal year shall

begin on July 1 and end on June 30.

     SECTION 19. Appropriations by member city and town. (a) Each city or town that is a

member of the regional district shall annually appropriate a sum sufficient to pay its proportionate

share of the interest on the bonds and notes issued and outstanding by the regional district under

authority of this act, and also to pay its proportionate share of the principal of the bonds and notes

maturing in any one year until said bonds and notes are fully paid.

     Each city or town that is a member of the regional district shall annually appropriate a sum

sufficient to pay its proportionate share of cost of the operation of the regional district in accordance

with the terms of this act.

     "Proportionate share," as referenced above, is based on per public pupil calculation, as

defined in section 11 of this act.

     SECTION 20. Process for amending regional act. This act with respect to the formation of

a regional district between the city of Newport and town of Middletown may be amended by an act

of the general assembly accepted and approved by a vote of the qualified voters of the city of

Newport and a vote of the qualified voters of the town of Middletown.

     SECTION 21. Approval question. The question of the approval of this act shall be

submitted to the qualified voters of the city of Newport and the qualified voters of the town of

Middletown at the general election to be held on November 8, 2022 in accordance with title 17 of

the general laws. The question shall be submitted in substantially the following form: "Shall an act

passed at the January, 2022 session of the general assembly entitled 'AN ACT AUTHORIZING

THE CITY OF NEWPORT AND TOWN OF MIDDLETOWN TO ESTABLISH A REGIONAL

SCHOOL DISTRICT AND PROVIDING FOR STATE AID FOR SCHOOL HOUSING COSTS

AT SCHOOL HOUSING REIMBURSEMENT RATES FOR REGIONAL SCHOOL DISTRICTS

WHICH, INCLUDING INCENTIVES, MAY EXCEED 80% OF DEBT SERVICE FOR

EXPENDITURES ELIGIBLE FOR STATE AID' be approved?" Notwithstanding anything

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contained in § 17-19-7 of the general laws to the contrary, the Newport and Middletown boards of

canvassers may certify the question to the secretary of state not later than sixty (60) days prior to

the date set for the election.

     SECTION 22. Availability of act. From the time the election is warned, it shall be the duty

of the city clerk of the city of Newport and the town clerk of the town of Middletown to keep a

copy of this act available at their offices for public inspection, but any failure of any said clerk to

perform this duty shall not affect the validity of the election.

     SECTION 23. Applicability of other laws. The provisions of §§ 16-3-9 through 16-3-31 of

the general laws shall not apply to the district. To the extent of any conflict of this act with any

general or special law of applicability or home rule charter, this act shall be controlling.

     SECTION 24. Effectiveness. This section and sections 1, 21, 22 and 23 of this act shall

take effect upon the passage of this act, and the remaining sections of this act shall take effect if:

(a) The council for elementary and secondary education votes to approve the creation of the

regional school district; (b) A majority of qualified voters of the city of Newport and a majority of

those qualified voters of the town of Middletown, voting upon the question as set forth in section

21 shall vote in favor thereof; and (c) A majority of the qualified voters of the town of Middletown

voting at the general election to be held on November 8, 2022 vote to approve an act authorizing

the town of Middletown to issue general obligation bonds, notes and other evidences of

indebtedness to finance the construction, renovation, improvement, alteration, ‎repair, ‎landscaping,

furnishing and equipping of new elementary, middle ‎and high schools and school ‎facilities

throughout the town.

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EXPLANATION

OF

A N   A C T

AUTHORIZING THE CITY OF NEWPORT AND TOWN OF MIDDLETOWN TO

ESTABLISH A REGIONAL SCHOOL DISTRICT AND PROVIDING FOR STATE AID FOR

SCHOOL HOUSING COSTS AT SCHOOL HOUSING REIMBURSEMENT RATES FOR

REGIONAL SCHOOL DISTRICTS WHICH, INCLUDING INCENTIVES, MAY EXCEED

80% OF DEBT SERVICE FOR EXPENDITURES ELIGIBLE FOR STATE AID

***

     This act would authorize the city of Newport and the town of Middletown to establish a

regional school district. General obligation bonds issued between January 1, 2022 and June 30,

2026 for school construction projects by the city of Newport and the town of Middletown would

receive state housing aid for school housing costs at school housing reimbursement rates for

regional school districts which, including incentives, may exceed eighty percent (80%) of debt

service for expenditures eligible for state aid.

     Sections 1, 21, 22, 23 and 24 of this act would take effect upon the passage of this act, and

the remaining sections of this act shall take effect if (a) The council for elementary and secondary

education votes to approve the creation of the regional school district; (b) A majority of qualified

voters of the city of Newport and a majority of those qualified voters of the town of Middletown,

voting upon the question as set forth in section 21 shall vote in favor thereof; and (c) A majority of

the qualified voters of the town of Middletown voting at the general election to be held on

November 8, 2022 vote to approve an act authorizing the town of Middletown to issue general

obligation bonds, notes and other evidences of indebtedness to finance the construction, renovation,

improvement, alteration, ‎repair, ‎landscaping, furnishing and equipping of new elementary,

middle ‎and high schools and school ‎facilities throughout the town.

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