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art.008/7/008/6/008/5/008/4/008/3/008/2/008/1

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     ARTICLE 8 AS AMENDED

RELATING TO EDUCATION

     SECTION 1. Sections 16-7-20, 16-7-39, 16-7-40 and 16-7-41.1 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:

     16-7-20. Determination of state’s share.

     (a) For each community the state's share shall be computed as follows: Let

     R = state share ratio for the community.

     v = adjusted equalized weighted assessed valuation for the community, as defined in

      § 16-7-21(3).

     V = sum of the values of v for all communities.

     m = average daily membership of pupils in the community as defined in § 16-7-22(3).

     M = total average daily membership of pupils in the state.

     E = approved reimbursable expenditures for the community for the reference year minus

      the excess costs of special education, tuitions, federal and state receipts, and other

      income.

     Then the state share entitlement for the community shall be RE where

     R = 1 – 0.5vM/(Vm) through June 30, 2011, and R = 1 – 0.475 vM/(Vm) beginning on

July 1, 2011 and thereafter.

     Except that in no case shall R be less than zero percent (0%).

     (b) Whenever any 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. The courts of this state shall enforce this section by writ of

mandamus.

     (c) Notwithstanding the calculations in subsection (a), the hospital school at the Hasbro

Children’s Hospital shall be reimbursed one hundred percent (100%) of all expenditures approved

by the council on elementary and secondary education in accordance with currently existing rules

and regulations for administering state aid, and subject to annual appropriations by the general

assembly including, but not limited to, expenditures for educational personnel, supplies, and

materials in the prior fiscal year.

     (d) In the event the computation of the state’s share for any local education agency as

outlined in subsection (a) is determined to have been calculated incorrectly after the state budget

for that fiscal year has been enacted, the commissioner of elementary and secondary education shall

notify affected local education agencies, the senate president, and the speaker of the house within

fifteen (15) days of the determination.

     (e) Realignment of aid payments to the affected local education agencies pursuant to

subsection (d) shall occur in the following fiscal year:

     (1) If the determination shows aid is underpaid to the local education agency, any amounts

owed shall be paid in equal monthly installments.

     (2) If the determination shows aid was overpaid, the department of elementary and

secondary education shall recapture some amount of the aid from the overpaid local education

agency. The amount to be withheld shall be equal to the amount of the overpayment prorated to the

number of full months remaining in the fiscal year when the notification required in subsection (d)

was made.

     (f) The above notwithstanding, in no event shall the total paid to a local education agency

in the 2023 fiscal year pursuant to subsection (a) be reduced as a result of the implementation of

subsection (e); provided, however, that for the 2022 fiscal year, the full amount of any payment

due to an underpayment and realignment under subsection (e)(1) shall be made for fiscal year 2022.

     (g) Data used for the calculation of the FY 2022 state share ratio shall also be used for the

calculation of the FY 2023 state share ratio.

     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 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 June 30, 2024, 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. Provided further that the aforementioned limit on the

state share increasing by more than half of its regular share shall not apply to projects submitted

for reimbursement after July 1, 2023.

     16-7-40. 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 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) 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 June 30, 2023 2024, is completed by December June 30, 2028 2029, 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 June 30, 2023 2024, is completed by December June 30, 2028 2029, 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 June 30, 2023 2024, is completed by

December June 30, 2028 2029, does not receive a bonus pursuant to subsection (f) or subsection

(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 eighty 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 June

30, 2023 2024, is completed by December June 30, 2028 2029, 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 June 30, 2023 2024, is

completed by December June 30, 2028 2029, 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 June 30, 2023 2024, is completed by

December June 30, 2028 2029, 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 subsection

(f) or subsection (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.

     16-7-41.1. 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 council on

elementary and secondary education, provided, however, in the case of a municipality that issues

bonds through the Rhode Island health and educational building corporation to finance or refinance

school facilities for a school district that 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 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 nonprofit 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 local

education agencies 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 owner’s 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 the required

minimum of ten percent (10%) of the dollar value of the bid participation.

     SECTION 2. Sections 16-7.2-3, 16-7.2-4, 16-7.2-5 and 16-7.2-7 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.

     (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.” By October 1, 2022, as part of its budget

submission pursuant to § 35-3-4 relative to state fiscal year 2024 and thereafter, the department of

elementary and secondary education shall develop and utilize a poverty measure that in the

department’s assessment most accurately serves as a proxy for the poverty status referenced in this

subsection and does not rely on the administration of school nutrition programs. The department

shall utilize this measure in calculations pursuant to this subsection related to the application of the

student success factor, in calculations pursuant to § 16-7.2-4 related to the calculation of the state

share ratio, and in the formulation of estimates pursuant to subsection (b) below. The department

may also include any recommendations which seek to mitigate any disruptions associated with the

implementation of this new poverty measure or improve the accuracy of its calculation. Beginning

with the FY 2024 calculation, students whose family income is at or below one hundred eighty-

five percent (185%) of federal poverty guidelines will be determined by participation in the

supplemental nutrition assistance program (SNAP). The number of students directly certified

through the Department of Human Services shall be multiplied by a factor of 1.6.

     (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.

     (d) Local education agencies 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.

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

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

     (f)(1) By October 1, 2023, as part of its budget submission pursuant to § 35-3-4 relative to

state fiscal year 2025, the department of elementary and secondary education shall evaluate the

number of students by district who qualify as MLL students and MLL students whose family

income is at or below one-hundred eighty-five percent (185%) of federal poverty guidelines. The

submission shall also include segmentation of these populations by levels as dictated by the WIDA

multilingual learner assessment tool used as an objective benchmark for English proficiency. The

department shall also prepare and produce expense data sourced from the uniform chart of accounts

to recommend funding levels required to support students at the various levels of proficiency as

determined by the WIDA assessment tool. Utilizing this information, the department shall

recommend a funding solution to meet the needs of multi lingual learners; this may include but not

be limited to inclusion of MLL needs within the core foundation formula amount through one or

multiple weights to distinguish different students of need or through categorical means.

     (2) By October 1, 2024, as part of its budget submission pursuant to § 35-3-4 relative to

state fiscal year 2026, the department of elementary and secondary education shall develop

alternatives to identify students whose family income is at or below one hundred eighty-five percent

(185%) of federal poverty guidelines through participation in state-administered programs,

including, but not limited to, the supplemental nutrition assistance program (SNAP), and RIteCare

and other programs which include the collection of required supporting documentation. The

department may also include any recommendations which seek to mitigate any disruptions

associated with implementation of this new poverty measure or improve the accuracy of its

calculation.

     (3) The Department shall also report with its annual budget request information regarding

local contributions to education aid and compliance with §§ 16-7-23 and 16-7-24. The report shall

also compare these local contributions to state foundation education aid by community. The

department shall also report compliance to each city or town school committee and city or town

council.

     16-7.2-4. Determination of state’s share.

     (a) For each district, the state’s share of the foundation education aid calculated pursuant

to § 16-7.2-3(a) shall use a calculation that considers a district’s revenue-generating capacity and

concentration of high-need students. The calculation is the square root of the sum of the state-share

ratio for the community calculation, pursuant to § 16-7-20, squared plus the district’s percentage

of students in grades PK-6 in poverty status squared, divided by two.

     If this calculation results in a state share ratio that is less than the state share ratio for the

community calculated pursuant to § 16-7-20(a) and that district's poverty status percentage as

defined in § 16-7.2-3(2) is greater than fifty percent (50%), the state share ratio shall be equal to

the state share ratio for the community calculated pursuant to § 16-7-20(a).

     (b) For purposes of determining the state’s share, school district student data used in this

calculation shall include charter school and state school students. These ratios are used in the

permanent foundation education aid formula calculation described in § 16-7.2-5.

     (c) There shall be a poverty loss stabilization fund for districts that experience a decline in

the state share ratio calculated pursuant to § 16-7.2-4(a) from the prior year of more than 2.0 percent

(2%). The amount shall be equal to fifty percent (50%) of the difference in the amount of permanent

foundation education aid received pursuant to § 16-7.2-3 received in the prior year.

     16-7.2-5. Charter public schools, the William M. Davies, Jr. Career and Technical

High School, and the Metropolitan Regional Career and Technical Center.

     (f) School districts with charter public school, Davies, and the Met Center enrollment, that,

combined, comprise five percent (5%) or more of the average daily membership as defined in § 16-

7-22, shall receive additional aid intended to help offset the impact of new and expanding charter

schools. For FY 2022, aid shall be equal to the number of new students being served as determined

by the difference between the reference year as defined in § 16-7-16 and FY 2019 times a per-pupil

amount of five hundred dollars ($500). For FY 2023 and thereafter, aid shall be equal to the number

of new students being served as determined by the difference between the reference year as defined

in § 16-7-16 and the prior reference year times a per-pupil amount of five hundred dollars ($500).

The additional aid shall be used to offset the adjusted fixed costs retained by the districts of

residence.

     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 four 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) five (5) 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 this title. 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 this title. 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 this title, 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 this title, 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 fifteen percent (10 15%) 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;

     (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 (½) 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; and

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

the transition plan in § 16-7.2-7.

     16-7.2-7. Transition plan.

     (a) The general assembly shall annually determine the appropriation of education aid

pursuant to this chapter using a transition plan to begin in fiscal year 2012, not to exceed seven (7)

years for LEA’s for whom the calculated education aid pursuant to § 16-7.2-3 is more than the

education aid the LEA is receiving as of the effective date of the formula, and ten (10) years for

LEA’s for whom the calculated education aid pursuant to § 16-7.2-3 is less than the education aid

the LEA is receiving as of the effective date of the formula.

     (b) The local share of funding pursuant to § 16-7.2-5 shall be transitioned proportionately

over a period not to exceed five (5) years. The transition shall provide a combination of direct aid

to districts, funds for the categorical programs, and district savings through state-assumed costs, as

determined by the general assembly on an annual basis. Updates to any components of the

permanent foundation education aid formula, such as student data, property values, and/or median

family income, that result in an increase or decrease in state education aid that impacts the total

state and local contribution by more than three percent (3%) shall be transitioned over a period of

time not to exceed three (3) years.

     (c) Districts that experience a reduction in enrollment from the prior fiscal year shall

receive forty percent (40%) of the amount of state aid pursuant to § 16-7.2-3 associated with that

enrollment decline and will receive twenty-five percent (25%) of that amount in the next preceding

year.

     (c)(d) For districts that are converting from a half-day to a full-day kindergarten program

for the 2014-2015 school year and after, as defined by § 16-99-4, the increase in aid provided

pursuant to the formula for the increased reference average daily membership due to the conversion

of the kindergarten students from 0.5 full-time equivalent to 1.0 full-time equivalent is not subject

to the transition plan in subsection (a); instead, the increased kindergarten full-time equivalents will

be funded at the fully transitioned value of the formula beginning in FY 2017.

     SECTION 3. Section 16-56-6 of the General Laws in Chapter 16-56 entitled

"Postsecondary Student Financial Assistance" is hereby amended to read as follows:

     16-56-6. Need-based grants.

     (a) Amount of funds allocated. The commissioner of postsecondary education shall allocate

annually the appropriation for need-based scholarships and grants. Of the total amount appropriated

for need-based scholarship and grants, the lesser of twenty percent (20%) or one million five eight

hundred thousand dollars ($1,500,000) ($1,800,000) shall be distributed to qualified students

attending participating, independent, non-profit, higher education institutions in Rhode Island. The

remainder of funds shall be limited to public higher education institutions in Rhode Island including

payments made pursuant to § 16-100-3(c). As part of the annual budget submission, the office of

postsecondary commissioner shall include a plan of how the need-based scholarship and grant

funds will be allocated to each public institution receiving funds pursuant to this chapter and how

the funds will be distributed to students attending independent, non-profit institutions.

     (b) Eligibility of individuals. Eligibility for need-based grants and scholarships shall be

determined by the office of the postsecondary commissioner.

     (c) Number and terms of awards. The number of awards to be granted in any one fiscal

year shall be contingent upon the funds allocated to this section.

     SECTION 4. Section 16-59-9 of the General Laws in Chapter 16-59 entitled "Council on

Postsecondary Education [See Title 16 Chapter 97 — The Rhode Island Board of Education Act]"

is hereby amended to read as follows:

     16-59-9. Educational budget and appropriations.

     (a) The general assembly shall annually appropriate any sums it deems necessary for

support and maintenance of higher education in the state and the state controller is authorized and

directed to draw his or her orders upon the general treasurer for the payment of the appropriations

or so much of the sums that are necessary for the purposes appropriated, upon the receipt by him

or her of proper vouchers as the council on postsecondary education may by rule provide. The

council shall receive, review, and adjust the budget for the office of postsecondary commissioner

and present the budget as part of the budget for higher education under the requirements of § 35-3-

4.

     (b) The office of postsecondary commissioner and the institutions of public higher

education shall establish working capital accounts.

     (c) Any tuition or fee increase schedules in effect for the institutions of public higher

education shall be received by the council on postsecondary education for allocation for the fiscal

year for which state appropriations are made to the council by the general assembly; provided that

no further increases may be made by the board of education or the council on postsecondary

education for the year for which appropriations are made. Except that these provisions shall not

apply to the revenues of housing, dining, and other auxiliary facilities at the university of Rhode

Island, Rhode Island college, and the community colleges including student fees as described in

P.L. 1962, ch. 257 pledged to secure indebtedness issued at any time pursuant to P.L. 1962, ch. 257

as amended.

     (d) All housing, dining, and other auxiliary facilities at all public institutions of higher

learning shall be self-supporting and no funds shall be appropriated by the general assembly to pay

operating expenses, including principal and interest on debt services, and overhead expenses for

the facilities, with the exception of the mandatory fees covered by the Rhode Island promise

scholarship program as established by § 16-107-3 and the Rhode Island hope scholarship

established by § 16-112-3. Any debt-service costs on general obligation bonds presented to the

voters in November 2000 and November 2004 or appropriated funds from the Rhode Island capital

plan for the housing auxiliaries at the university of Rhode Island and Rhode Island college shall

not be subject to this self-supporting requirement in order to provide funds for the building

construction and rehabilitation program. The institutions of public higher education will establish

policies and procedures that enhance the opportunity for auxiliary facilities to be self-supporting,

including that all faculty provide timely and accurate copies of booklists for required textbooks to

the public higher educational institution’s bookstore.

     (e) The additional costs to achieve self-supporting status shall be by the implementation of

a fee schedule of all housing, dining, and other auxiliary facilities, including but not limited to,

operating expenses, principal, and interest on debt services, and overhead expenses.

     (f) The board of education is authorized to establish two (2) restricted-receipt accounts for

the higher education and industry centers established throughout the state: one to collect lease

payments from occupying companies, and fees from room and service rentals, to support the

operation and maintenance of the facilities; and one to collect donations to support construction,

operations and maintenance. All such revenues shall be deposited to the restricted-receipt accounts.

     (g) Notwithstanding subsections (a) and (d) of this section or any provisions of this title, to

the extent necessary to comply with the provisions of any outstanding bonds issued by the Rhode

Island health and educational building corporation or outstanding lease certificates of participation,

in either case, issued for the benefit of the university of Rhode Island, the community college of

Rhode Island, and/or Rhode Island college, to the extent necessary to comply with the provisions

of any such bonds or certificates of participation, the general assembly shall annually appropriate

any such sums it deems necessary from educational and general revenues (including, but not limited

to, tuition) and auxiliary enterprise revenues derived from the university of Rhode Island, the

community college of Rhode Island and Rhode Island college, to be allocated by the council on

postsecondary education or by the board of trustees of the university of Rhode Island, as

appropriate, in accordance with the terms of the contracts with such bondholders or certificate

holders.

     (h) The board of education is authorized to establish a restricted-receipt account for income

generated by the Rhode Island nursing education center through the rental of classrooms,

laboratories, or other facilities located on the Providence campus of the nursing education center.

All such revenues shall be deposited to the restricted receipt account.

     (i) The board of education is authorized to establish a restricted-receipt account for the

receipt and expenditure of monies received from IGT Global Solutions Corporation for the purpose

of financing scholarships relating to studying science, technology, engineering, or mathematics at

an accredited educational institution. This account shall be housed within the budget of the office

of the postsecondary commissioner and exempt from the indirect cost recovery provisions of § 35-

4-27.

     SECTION 5. Title 16 of the General Laws entitled "EDUCATION" is hereby amended by

adding thereto the following chapter:

CHAPTER 112

RHODE ISLAND HOPE SCHOLARSHIP PILOT PROGRAM ACT

     16-112-1. Short title.

     This chapter shall be known and may be cited as the "Rhode Island Hope Scholarship Pilot

Program Act".

     16-112-2. Legislative findings and purpose.

     (a) The general assembly finds and declares that:

     (1) Education is critical for the state's young people to achieve their aspirations and develop

their talents;

     (2) The state's economic success depends on a highly educated and skilled workforce;

     (3) The state's future prosperity depends upon its ability to make educational opportunities

beyond high school available for all students;

     (4) The coronavirus has inflicted undue hardships on students and their families, creating

barriers to a four (4) year college degree;

     (5) A merit-based tuition reduction program will help make a four (4) year college degree

available to all students;

     (6) Rhode Island college offers students a feasible opportunity to obtain a four (4) year

degree, but remains an underutilized resource in the state; and

     (7) The State of Rhode Island's motto is "Hope".

     (b) In order to address the findings set forth in subsection (a) of this section, the purpose

of this chapter is to increase the number of students enrolling in and completing four (4) year

degrees and certificates on time from Rhode Island college, and to promote more graduates in high-

need fields such as nursing, pre-k through grade twelve (12) education, and the trades, which are

fields for which Rhode Island college provides a strong and affordable education.

     (c) The purpose of the pilot program is also to determine whether a scholarship program

for Rhode Island college that is modeled on the promise scholarship program established in chapter

107 of title 16 would be successful in attaining the goals set forth in this section.".

     16-112-3. Establishment of scholarship program.

     There is hereby established the Rhode Island hope scholarship pilot program. The general

assembly shall annually appropriate the funds necessary to implement the purposes of this chapter

for the periods of the pilot program. Additional funds beyond the scholarships may be appropriated

to support and advance the Rhode Island hope scholarship pilot program. In addition to

appropriation by the general assembly, charitable donations may be accepted into the scholarship

program.

     16-112-4. Definitions.

     When used in this chapter, the following terms shall have the following meanings:

     (1) "ADA" means the Americans with Disabilities Act, 42 U.S.C. § 12101 et seq., as may

be amended from time to time.

     (2) "Certificate" means any certificate program with labor market value as defined by the

postsecondary commissioner.

     (3) "College-level credit" means credit awarded by a college or university for completion

of its own courses or other academic work.

     (4) "FAFSA" means the Free Application for Federal Student Aid form.

     (5) "General education coursework" means the educational foundation of knowledge,

skills, and attitudes that prepare students for success in their majors and their personal and

professional lives after graduation. It includes, but is not limited to, the required coursework of all

degrees developed by each eligible postsecondary institution that is approved by the council on

postsecondary education that is intended to ensure that all graduates of a state institution have a

balanced core of competencies and knowledge. This does not necessarily include coursework

specifically required for one's major.

     (6) "Mandatory fees and tuition" means the costs that every student is required to pay in

order to enroll in classes, and does not include room and board, textbooks, program fees that may

exist in some majors, course fees that may exist for some specific courses, meal plans, or travel.

     (7) "On track to graduate on time" means the standards determined by Rhode Island college

in establishing the expectation of a student to graduate with a bachelor's degree within four (4)

years of enrollment, or the prescribed completion time for a student completing a certificate

(recognizing that some students, including students who require developmental education, are

double majors, or are enrolled in certain professional programs may require an extended time period

for degree completion).

     (8) "Reasonable accommodations" means any necessary modifications or adjustment to a

facility, equipment, program, or manner of operation as required by the Americans with Disabilities

Act ("ADA") and section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 791, as may be

amended from time to time;

     (10) "Recipient student" means a student attending Rhode Island college who qualifies to

receive the Rhode Island hope scholarship pursuant to § 16-112-6.

     (9) "Pilot program" and "scholarship program" means the Rhode Island hope scholarship

pilot program that is established pursuant to § 16-112-3.

     (11) "State" means the State of Rhode Island.

     (12) "Student with a disability" means any student otherwise eligible pursuant to this

chapter who has a physical, developmental, or hidden disability or disabilities, as defined in § 42-

87-1, that would create a hardship or other functional obstacles preventing participation in this

program.

     16-112-5. Administration of scholarship program.

     (a) The financial aid office at Rhode Island college, in conjunction with the admissions

office or their respective equivalent offices at Rhode Island college, shall administer the scholarship

program for state residents seeking bachelor's degrees and/or certificates who meet the eligibility

requirements in this chapter.

     (b) An award of the scholarship program shall cover the cost of up to two (2) years of

tuition and mandatory fees, for the junior and senior years of the student, or in the case of an adult

student, who has attained at least sixty (60) credit hours, then the award may cover tuition and

mandatory fees over a duration of not more than two (2) years. In all instances, these awards shall

be reduced by the amount of federal and all other financial aid monies available to the recipient

student. None of any grants received by students from the department of children, youth and

families' higher education opportunity incentive grant as established by chapter 72.8 of title 42 or

the college crusade scholarship act as established in chapter 70 of title 16 shall be considered federal

or financial aid for the purposes of this chapter.

     (c) The scholarship program is limited to one award per student as required by § 16-112-

6(a)(7); provided that, the award may cover the two (2) years which constitute the junior and senior

years of the student, or the two (2) years for an adult student, and may be dispersed in separate

installments.

     16-112-6. Eligibility for merit based tuition reduction scholarship at Rhode Island

college.

     (a) Beginning with the students who enrolled at Rhode Island college in the fall of 2023, a

student:

     (1) Must qualify for in-state tuition and fees pursuant to the residency policy adopted by

the council on postsecondary education, as amended, supplemented, restated, or otherwise modified

from time to time ("residency policy");

     (2) Must be a currently enrolled full-time student who has declared a major and earned a

minimum of sixty (60) total credit hours towards an eligible program of study, as determined by

Rhode Island college;

     (3) Must complete the FAFSA and any required FAFSA verification by the deadline

prescribed by Rhode Island college for each year in which the student seeks to receive funding

under the scholarship program; provided that, persons who are legally unable to complete the

FAFSA must complete a comparable form created by Rhode Island college, by the deadline

prescribed by Rhode Island college, for each year in which the student seeks to receive funding

under the scholarship program;

     (4) Must enroll or have enrolled full-time as a freshman as a first-time student and continue

to be enrolled on a full-time basis at Rhode Island college, by the dates indicated within this chapter;

     (5) Must maintain an average annual cumulative grade point average (GPA) of 2.5 or

greater, as determined by Rhode Island college, prior to obtaining the scholarship and also as a

condition of being able to continue to be a scholarship recipient;

     (6) Must remain on track to graduate on time as determined by Rhode Island college and

must complete both the student's freshman and sophomore years at Rhode Island college, or in the

case of an adult student, have completed sixty (60) credit hours of tuition and mandatory fees at

Rhode Island college over a duration of no more than four (4) years;

     (7) Must not have already received an award under this program or under chapter 107 of

title 16; and

     (8) Must commit to live, work, or continue their education in Rhode Island after graduation.

     (b) Rhode Island college, in conjunction with the office of the postsecondary

commissioner, shall develop a policy that will secure the commitment set forth in subsection (a) of

this section from recipient students.

     (c) Notwithstanding the eligibility requirements under subsection (a) of this section

("specified conditions"):

     (1) In the case of a recipient student who has an approved medical or personal leave of

absence or is unable to satisfy one or more specified conditions because of the student's medical or

personal circumstances, the student may continue to receive an award under the scholarship

program upon resuming the student's education so long as the student continues to meet all other

applicable eligibility requirements;

     (2) In the case of a recipient student who is a member of the national guard or a member

of a reserve unit of a branch of the United States military and is unable to satisfy one or more

specified conditions because the student is or will be in basic or special military training, or is or

will be participating in a deployment of the student's guard or reserve unit, the student may continue

to receive an award under the scholarship program upon completion of the student's basic or special

military training or deployment; and

     (3) Students enrolled in Rhode Island college as of July 1, 2021, who have attained junior

status at Rhode Island college as of July 1, 2023, or who enrolled in Rhode Island college as of July

1, 2022, and who have attained junior status at Rhode Island college as of July 1, 2024, and who

are otherwise in compliance with this chapter, shall be eligible for a hope scholarship under this

chapter.

     (4) Any student with a disability, otherwise eligible for a scholarship pursuant to the

provisions of this section, shall be entitled to access this program and shall be afforded all

reasonable accommodations, as required by the ADA and the Rehabilitation Act of 1973, including,

but not limited to, enrolling on a part-time basis and taking longer than four (4) years to graduate

with a bachelor's degree.

     (d) The decision of whether or not a student has attained junior or senior status by the

appropriate date shall be determined by the appropriate body of Rhode Island college, subject to

the rules, regulations, and procedures established pursuant to § 16-112-8.

     16-112-7. Reporting and disbursement.

     (a) On or before November 10, 2023, and on or before November 10 thereafter for every

year through and including calendar year 2028, Rhode Island college shall submit a report to the

director of the office of management and budget, the state budget officer, the house fiscal advisor,

the senate fiscal advisor, the commissioner of postsecondary education, and the chair of the council

on postsecondary education, a report detailing the following:

     (1) The number of students eligible to participate in the scholarship program;

     (2) The amount of federal and institutional financial aid anticipated to be received by

recipient students;

     (3) The aggregate tuition and mandatory fee costs attributable to recipient students;

     (4) The resulting total cost of the scholarship program to the state; and

     (5) The report shall contain such data for both the current fiscal year and the most up-to-

date forecast for the following fiscal year. Data reported shall be subdivided by student-year cohort

and shall be accompanied by a written explanation detailing the estimating methodology utilized

and any impact(s) the forecasted data may present to institutional capacity, operational costs, and

the tuition/fee revenue base of the institution.

     (b) On or before July 1, 2024, and on before July 1 thereafter for every year until through

and including calendar year 2028, Rhode Island college, in conjunction with the office of the

postsecondary commissioner, shall submit a report evaluating the program to the governor, speaker

of the house, and the president of the senate. This evaluation shall include the following:

     (1) The number of students who started in each cohort·

     (2) The number of students in each cohort who have attained a degree or certification in an

on-time manner;

     (3) The number of students in each cohort who have not attained a degree or certification

in an on-time manner and an analysis of why that has happened;

     (4) The number of students in each cohort who began the program but have been unable to

continue or complete the program and an analysis of why that has happened;

     (5) The costs of the program and the costs of continuing the program;

     (6) Suggestions for ways to increase the success of the program;

     (7) Recommendations as to modifying, continuing, expanding, curtailing, or discontinuing

the program; and

     (8) Any such other recommendations or information as Rhode Island college and the

commissioner of postsecondary education deem appropriate to include in the evaluation.

     (c) The office of management and budget, in consultation with the office of the

postsecondary commissioner, shall oversee the apportionment and disbursement of all funds

appropriated for the purpose of the scholarship program.

     16-112-8. Rules, regulations, and procedures.

     The council on postsecondary education is hereby authorized to promulgate rules and

regulations to effectuate the purposes of this chapter, including, but not limited to, the residency

policy, and Rhode Island college shall establish appeal procedures for the award, denial, or

revocation of funding under the scholarship program. The rules and regulations shall be

promulgated in accordance with § 16-59-4.

     16-112-9. Applicability to current students.

     Currently enrolled students at Rhode Island college who have attained junior status as of

July 1, 2023, or July 1, 2024, and who otherwise meet the requirements of this chapter, shall be

eligible for a hope scholarship under this chapter.

     16-112-10. Funding of and sunset of pilot program.

     The Rhode Island hope scholarship pilot program shall be funded from July 1, 2023,

through and including July 1, 2028. There shall be no further funding of the pilot program without

further action of the general assembly. Any final reports due pursuant to this chapter shall be filed

pursuant to the dates set forth herein.

     SECTION 6. This article shall take effect upon passage.