2023 -- H 6403

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LC003010

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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, Solomon, Vella-Wilkinson, and Shanley

     Date Introduced: May 12, 2023

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 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]" is

hereby amended to read as follows:

     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 principal

reimbursement in the following fiscal year. Interest payments on approved projects are eligible for

state reimbursement each fiscal year commencing with the first interest payment date irrespective

of project completion. 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.

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     (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.

     SECTION 2. 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 provide that for certain school construction projects, interest payments

made by municipalities on approved projects would be eligible for state reimbursement each fiscal

year commencing with the date of the first interest payment, regardless of whether the construction

project is completed or not.

     This act would take effect upon passage.

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