2023 -- H 6330

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LC002860

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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 McNamara, Shekarchi, Bennett, Solomon, Vella-
Wilkinson, and Shanley

     Date Introduced: April 26, 2023

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 16-7-39 and 16-7-40 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 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.

     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 30, 2023 2024, is completed by December 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

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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 2024, is completed by December 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 30, 2023 2024, is completed by December 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 30,

2023 2024, is completed by December 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 30, 2023 2024, is completed

by December 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 30, 2023 2024, is completed by December 30,

2028 2029, a two hundred fifty million dollar ($250,000,000) general obligation bond is approved

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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.

     (j) The deadlines for construction and completion set forth in this section are not related to,

or conditioned on, the two hundred fifty million dollar ($250,000,000) general obligation bond

approved by state voters on the November 2022 ballot. Increased housing aid provided for in this

section is funded from state bonds proceeds, annual state appropriations, and other sources.

     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:

     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

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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

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

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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 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. 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

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     This act would amend provisions of state law that provide for increased housing aid for

certain school building projects by extending the deadlines for commencement and completion of

these school building projects by one year to December 30, 2024 and December 30, 2029,

respectively.

     This act would take effect upon passage.

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