2023 -- H 6111

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

     RELATING TO EDUCATION -- FOUNDATION LEVEL SCHOOL SUPPORT

     Introduced By: Representatives Cortvriend, McEntee, Finkelman, and Shallcross Smith

     Date Introduced: March 03, 2023

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 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:

     16-7-39. 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), and 16-7-40(b).

Furthermore, a district’s share shall not be decreased by more than half of its regular share

irrespective of the number of incentive points received nor shall a district’s state share increase by

more than half of its regular share, including amounts received under §§ 16-7-40(a)(1) and 16-7-

40(a)(2), irrespective of the number of incentive points received.

     16-7-40. Increased school housing ratio.

     (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 high-

performance school design school and/or 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 30, 2023, is completed by December 30, 2028, and a two hundred fifty million dollar

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

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

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

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

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

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

by December 30, 2023, is completed by December 30, 2028, and a two hundred fifty million dollar

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

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

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

     (e) For replacement of a facility that has a facilities condition index of sixty-five percent

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

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

does not receive a bonus pursuant to 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 30,

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

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

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

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

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

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

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

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

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

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

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

must be specifically directed to this purpose.

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

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

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

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

November 2018 ballot, and does not receive a bonus pursuant to subsection (f) or subsection (g).

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

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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. Interest payments are eligible for reimbursement the

year the bond is issued. 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

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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 minimum of ten

percent (10%) of the dollar value of the bid, and § 37-13-3.1, ensuring apprenticeship program

utilization.

     (l) Using reviewable criteria, all projects seeking school housing aid shall complete an

independent, objective, reasoned study on all projects over ten million dollars ($10,000,000) to

determine whether adoption of a project labor agreement on the proposed project or projects will

help achieve the goals of the state purchases act.

     SECTION 2. Section 16-105-3 of the General Laws in Chapter 16-105 entitled "School

Building Authority" is hereby amended to read as follows:

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     16-105-3. Roles and responsibilities.

     The school building authority roles and responsibilities shall include:

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

housing for all public school children in the state;

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

of the schools;

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

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

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

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

authority advisory board;

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

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

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

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

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

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

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

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

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

be limited to, the contractor’s history of completing complex projects on time and on budget, track

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

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

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

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

publicly posted with all other program information;

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

school construction application process;

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

and/or local education agencies and to general contractors, subcontractors, construction or project

managers, designers and others in planning, maintenance, and establishment of school facility

space;

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

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

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building authority capital fund, subject to review and, if necessary, to be revised on intervals not to

exceed five (5) years. Project priorities shall include, but not be limited to, the following order of

priorities:

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

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

     (ii) Projects needed to prevent loss of accreditation;

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

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

said schoolhouse;

     (iv) Projects needed to replace or add to obsolete buildings in order to provide for a full

range of programs consistent with state and approved local requirements; and

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

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

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

the state;

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

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

and the time schedule of the project;

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

construction programs at both state and local levels;

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

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

state, including public charter schools;

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

available;

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

utilization of space in and around the district;

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

consulted by eligible applicants;

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

responsibilities listed within this section;

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

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

incentive points for projects that commence construction thereafter; provided further, these caps

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shall be in addition to amounts received under §§ 16-7-40(a)(1), and 16-7-40(a)(2), and 16-7-40(b).

Furthermore, a district’s share shall not be decreased by more than half of its regular share

irrespective of the number of incentive points received, nor shall a district’s state share increase by

more than half of its regular share, including amounts received under §§ 16-7-40(a)(1) and 16-7-

40(a)(2), irrespective of the number of incentive points received. Notwithstanding any provision of

the general laws to the contrary, the reimbursement or aid received under this chapter or chapter

38.2 of title 45 shall not exceed one hundred percent (100%) of the sum of the total project costs

plus interest costs. If a two hundred and fifty million dollar ($250,000,000) general obligation bond

is approved on the November 2018 ballot, projects approved between May 1, 2015, and January 1,

2018, are eligible to receive incentive points (above and beyond what the project was awarded at

the time of approval) pursuant to § 16-7-39 and § 16-7-40. Provided, however, any project approved

during this time period with a project cost in excess of one million five hundred thousand dollars

($1,500,000), which does not include an owner’s program manager and a commissioning agent,

shall only be eligible to receive five (5) incentive points. Incentive points awarded pursuant to the

provisions of this subsection shall only be applied to reimbursements occurring on or after July 1,

2018. Any project approved between May 1, 2015, and January 1, 2018, that is withdrawn and/or

resubmitted for approval shall not be eligible for any incentive points.

     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

     RELATING TO EDUCATION -- FOUNDATION LEVEL SCHOOL SUPPORT

***

     This act would require that all projects seeking school housing aid shall complete an

independent, objective, reasoned study on all projects over ten million dollars ($10,000,000) to

determine whether adoption of a project labor agreement on the proposed project(s) will help

achieve the goals of the state purchases act.

     This act would take effect upon passage.

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