2023 -- S 0455

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LC002307

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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: Senators DiPalma, Britto, Murray, Acosta, Felag, Zurier, Euer, Pearson,
and Ciccone

     Date Introduced: March 03, 2023

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 16-7-39, 16-7-40 and 16-7-41.1 of the General Laws in Chapter 16-

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7 entitled "Foundation Level School Support [See Title 16 Chapter 97 — The Rhode Island Board

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of Education Act]" are hereby amended to read as follows:

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     16-7-39. Computation of school housing-aid ratio.

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     For each community, the percent of state aid for school housing costs shall be computed in

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the following manner:

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     (1) The adjusted equalized weighted assessed valuation for the district is divided by the

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resident average daily membership for the district (grades twelve (12) and below); (2) The adjusted

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equalized weighted assessed valuation for the state is divided by the resident average daily

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membership for the state (grades twelve (12) and below); (1) is then divided by (2) and the resultant

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ratio is multiplied by a factor currently set at sixty-two percent (62%) which represents the

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approximate average district share of school support; the resulting product is then subtracted from

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one hundred percent (100%) to yield the housing aid share ratio, provided that in no case shall the

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ratio be less than thirty percent (30%). Provided, that effective July 1, 2010, and annually at the

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start of each fiscal year thereafter, the thirty percent (30%) floor on said housing-aid share shall be

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increased by five percent (5%) increments each year until said floor on the housing-aid share ratio

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reaches a minimum of not less than forty percent (40%). This provision shall apply only to school

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housing projects completed after June 30, 2010, that received approval from the board of regents

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prior to June 30, 2012. Provided further, for the fiscal year beginning July 1, 2012, and for

 

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subsequent fiscal years, the minimum housing aid share shall be thirty-five percent (35%) for all

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projects receiving council on elementary and secondary education approval after June 30, 2012.

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The resident average daily membership shall be determined in accordance with § 16-7-22(1).

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

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points for projects that commence construction by December 30, 2023 June 30, 2024, and five (5)

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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).

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

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

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

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

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     16-7-40. Increased school housing ratio.

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     (a)(1) In the case of regional school districts, the school housing aid ratio shall be increased

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by two percent (2%) for each grade so consolidated.

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     (2) Regional school districts undertaking renovation project(s) shall receive an increased

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share ratio of four percent (4%) for those specific project(s) only, in addition to the combined share

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ratio calculated in § 16-7-39 and this subsection.

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     (b) In the case of projects undertaken by districts specifically for the purposes of high-

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performance school design school and/or safety and security, the school housing aid share ratio

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shall be increased by five percent (5%) for these specific projects only, in the calculation of school

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housing aid. The increased share ratio shall continue to be applied for as long as the project(s)

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receives state housing aid. In order to qualify for the increased share ratio, seventy-five percent

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(75%) of the project costs must be specifically directed to school safety and security measures. The

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council on elementary and secondary education shall promulgate rules and regulations for the

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administration and operation of this section.

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     (c) For purposes of addressing health and safety deficiencies as defined by the school

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building authority, including the remediation of hazardous materials, the school housing aid ratio

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

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

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

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

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

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

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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

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

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

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

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

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

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

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

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does not receive a bonus pursuant to subsection (f) or subsection (g), and a two hundred fifty million

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

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

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

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     (f) For any new construction or renovation that increases the functional utilization of any

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facility from less than sixty percent (60%) to more than eighty percent (80%), including the

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consolidation of school buildings within or across districts, the school housing aid ratio shall be

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increased by five percent (5%) so long as construction of the project commences by December 30,

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

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

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

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

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

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

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

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

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

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

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

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must be specifically directed to this purpose.

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

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

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

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

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

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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.

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     (i) Any regionalized and/or non-regionalized school district receiving an increased share

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ratio for a project approved prior to July 1, 2018, shall continue to receive the increased share ratio

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for as long as the project receives state housing aid.

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     16-7-41.1. Eligibility for reimbursement.

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     (a) School districts, not municipalities, may apply for and obtain approval for a project

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under the necessity of school construction process set forth in the regulations of the council on

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

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

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school facilities for a school district that is not part of the municipality, the municipality may apply

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for and obtain approval for a project. Such approval will remain valid until June 30 of the third

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fiscal year following the fiscal year in which the council on elementary and secondary education’s

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approval is granted. Only those projects undertaken at school facilities under the care and control

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of the school committee and located on school property may qualify for reimbursement under §§

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16-7-35 — 16-7-47. Facilities with combined school and municipal uses or facilities that are

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operated jointly with any other profit or nonprofit agency do not qualify for reimbursement under

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§§ 16-7-35 — 16-7-47. Projects completed by June 30 of a fiscal year are eligible for

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

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year the bond is issued. A project for new school housing or additional housing shall be deemed to

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be completed when the work has been officially accepted by the school committee or when the

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housing is occupied for its intended use by the school committee, whichever is earlier.

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     (b) Notwithstanding the provisions of this section, the board of regents shall not grant final

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approval for any project between June 30, 2011, and May 1, 2015, except for projects that are

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necessitated by immediate health and safety reasons. In the event that a project is requested during

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the moratorium because of immediate health and safety reasons, those proposals shall be reported

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to the chairs of the house and senate finance committees.

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     (c) Any project approval granted prior to the adoption of the school construction

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regulations in 2007, and which are currently inactive; and any project approval granted prior to the

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adoption of the school construction regulations in 2007 which did not receive voter approval or

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which has not been previously financed, are no longer eligible for reimbursement under this

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chapter. The department of elementary and secondary education shall develop recommendations

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for further cost containment strategies in the school housing aid program.

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     (d) Beginning July 1, 2015, the council on elementary and secondary education shall

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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

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education agencies seeking new necessity of school construction approvals.

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     (e) Beginning July 1, 2019, no state funding shall be provided for projects in excess of ten

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million dollars ($10,000,000) unless the prime contractor for the project has received

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prequalification from the school building authority.

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     (f) Beginning July 1, 2019, the necessity of school construction process set forth in the

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regulations of the council on elementary and secondary education shall include a single statewide

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process, developed with the consultation of the department of environmental management, that will

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ensure community involvement throughout the investigation and remediation of contaminated

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building sites for possible reuse as the location of a school. That process will fulfill all provisions

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of § 23-19.14-5 related to the investigation of reuse of such sites for schools.

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     (g) Beginning July 1, 2019, school housing projects exceeding one million five hundred

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thousand dollars ($1,500,000) subject to inflation shall include an owner’s program manager and a

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commissioning agent. The cost of the program manager and commissioning agent shall be

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considered a project cost eligible for aid pursuant to §§ 16-7-41 and 16-105-5.

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     (h) Temporary housing, or swing space, for students shall be a reimbursable expense so

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long as a district can demonstrate that no other viable option to temporarily house students exists

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and provided that use of the temporary space is time limited for a period not to exceed twenty-four

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(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

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reimbursable expense up to one million dollars ($1,000,000) per project.

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     (j) If, within thirty (30) years of construction, a newly constructed school is sold to a private

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entity, the state shall receive a portion of the sale proceeds equal to that project’s housing aid

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reimbursement rate at the time of project completion.

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     (k) All projects must comply with § 37-13-6, ensuring that prevailing wage laws are being

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followed, and § 37-14.1-6, ensuring that minority business enterprises reach a minimum of ten

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

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utilization.

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

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

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

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help achieve the goals of the state purchases act.

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

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Building Authority" is hereby amended to read as follows:

 

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     16-105-3. Roles and responsibilities.

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     The school building authority roles and responsibilities shall include:

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

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housing for all public school children in the state;

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

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of the schools;

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

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

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

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

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authority advisory board;

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

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

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

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

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

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

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

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

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

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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

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

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

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

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publicly posted with all other program information;

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

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school construction application process;

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

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

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

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space;

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

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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

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

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priorities:

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

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

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     (ii) Projects needed to prevent loss of accreditation;

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

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

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said schoolhouse;

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

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

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

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

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

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the state;

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

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

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and the time schedule of the project;

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

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construction programs at both state and local levels;

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     (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

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state, including public charter schools;

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

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available;

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

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utilization of space in and around the district;

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

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consulted by eligible applicants;

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

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responsibilities listed within this section;

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

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

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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).

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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     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 require that all projects seeking school housing aid shall complete an

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

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

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achieve the goals of the state purchases act.

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     This act would take effect upon passage.

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