ARTICLE 13 SUBSTITUTE A AS AMENDED

RELATING TO EDUCATION

SECTION 1.  Sections 16-7.1-3, 16-7.1-5, 16-7.1-9, and 16-7.1-11.1 of the General Laws in Chapter 16-7.1 entitled “The Rhode Island Student Investment Initiative” are hereby amended to read as follows:

            16-7.1-3.  Accountability for district and school expenditures. – All school districts shall implement a uniform program to track educational expenditures and investments. To ensure that each district's report on educational expenditures accurately reflects actual experience, All school districts shall prepare annual reports of its programs which shall be submitted to the department of elementary and secondary education by July 31 of each year.  the The business office in each school district shall annually declare that the facts and figures presented in the district expenditure report are accurate to the best of their knowledge. In the event that a report is not submitted within thirty days of July 31, state educational aid to the school district may be withheld.  In addition, each school committee shall annually ratify the district expenditure report and transmit the report to the commissioner of elementary and secondary education no later than November 1 September 30 of each year. Furthermore, the commissioner of elementary and secondary education in conjunction with the Rhode Island Association of School Business Officials shall determine the feasibility of and implement when appropriate a standard chart of accounts for all school districts. If implemented, the municipalities shall integrate use of this chart of accounts with municipal accounts as appropriate.

16-7.1-5. Intervention and support for failing schools. -- (a) The board of regents shall adopt a series of progressive support and intervention strategies consistent with the Comprehensive Education Strategy and the principles of the "School Accountability for Learning and Teaching" (SALT) of the board of regents for those schools and school districts that continue to fall short of performance goals outlined in the district strategic plans. These strategies shall initially focus on: (1) technical assistance in improvement planning, curriculum alignment, student assessment, instruction, and family and community involvement; (2) policy support; (3) resource oversight to assess and recommend that each school has adequate resources necessary to meet performance goal; and (4) creating supportive partnerships with education institutions, business, governmental, or other appropriate nonprofit agencies. If after a three (3) year period of support there has not been improvement in the education of students as determined by objective criteria to be developed by the board of regents, then there shall be progressive levels of control by the department of elementary and secondary education over the school and/or district budget, program, and/or personnel. This control by the department of elementary and secondary education may be exercised in collaboration with the school district and the municipality. If further needed, the school shall be reconstituted. Reconstitution responsibility is delegated to the board of regents and may range from restructuring the school's governance, budget, program, personnel, and/or may include decisions regarding the continued operation of the school. The board of regents shall assess the district's capacity and may recommend the provision of additional district, municipal and/or state resources. If a school or school district is under the board of regents' control as a result of actions taken by the board pursuant to this section, the local school committee shall be responsible for funding that school or school district at the same level as in the prior academic year increased by the same percentage as the state total of school aid is increased.

 (b) For FY 2005 2006, the department shall dedicate one hundred thousand dollars ($100,000) from funds appropriated to support progressive support and intervention and SALT visits to support the Rhode island Consortium for Instructional Leadership and Training. This consortium is engaged in training school leaders to be more effective instructional leaders in the standards based instruction environment.

16-7.1-9. Student language assistance investment fund. – The general assembly recognizes the strength Rhode Island's growing cultural diversity brings to the overall economic and social health of the state. Therefore, the general assembly establishes the Student Language Assistance Investment Fund to target state resources to assist students who require additional language educational services. The general assembly shall annually appropriate some sum and distribute it based on each district's proportion of full time equivalent limited English proficiency students statewide in the reference year as defined in § 16-7-16. For purposes of this section, full time equivalent for limited English proficiency students is defined in § 16-54-4. These resources shall be used to close student performance gaps in accordance with the district's strategic plan pursuant to § 16-7.1-2.

16-7.1-11.1.  Full day kindergarten investment fund. – (a) Beginning in fiscal year 2001, the general assembly shall appropriate and distribute to each locally or regionally operated district a sum equal to the number of full-time kindergarten students enrolled in reported as a member of each district as of the previous October 1 of the reference year as defined in §16-7-16(11) times a per pupil amount, which shall be:

  (1) Fifteen hundred dollars ($1,500) for those districts with a tax effort index of below 0.6 as calculated pursuant to § 16-7.1-6;

   (2) One thousand dollars ($1,000) for those districts with a tax effort index of below 1.0 as calculated pursuant to § 16-7.1-6; and

   (3) Five hundred dollars ($500) for all other districts.

   (b) Funding under this section shall be in addition to any and all other aid received by the district, including aid received under this chapter, chapter 77.1 of this title, and any minimum increase of aid provided for under § 16-7.1-15.

SECTION 2.  Section 16-64-1.1 of the General Laws in Chapter 16-64 entitled “Residence of Children for School Purposes” is hereby amended to read as follows:

16-64-1.1.  Payment and reimbursement for educational costs of children placed in foster care, group homes, or other residential facility by a Rhode Island state agency. – (a) Children placed in foster care by a Rhode Island licensed child placing agency or a Rhode Island governmental agency shall be entitled to the same free appropriate public education provided to all other residents of the city or town where the child is placed. The city or town shall pay the cost of the education of the child during the time the child is in foster care in the city or town.

   (b) Children placed by DCYF in a group home or other residential facility that does not include the delivery of educational services are to be educated by the community in which the group home or other residential facility is located, and those children shall be entitled to the same free appropriate public education provided to all other residents of the city or town where the child is placed. For purposes of payment and reimbursement for educational costs under this chapter, the term "group home or other residential facility" shall not include independent living programs. Each city and town that contains one or more group homes or other residential facilities that do not include delivery of educational services will receive funds as part of state aid to education in accordance with the following provisions:

   (1) On December 31 June 30 of each year the DCYF shall provide the department of elementary and secondary education with a precise count of how many group home or other residential facility "beds" exist in each Rhode Island city or town, counting only those "beds" in facilities that do not include the delivery of educational services. The number of "beds" in each group home or other residential facility shall be equal to the maximum number of children that may be placed in that group home or other residential facility on any given night according to the applicable licensure standards of the DCYF;

   (2) On  December 31 June 30 of each year the DCYF shall provide the department of elementary and secondary education with a precise count of the total number of students aged three (3) to twenty-one (21) in DCYF care on that date who reside in group homes in the state of Rhode Island, as well as an accurate accounting of the percentage of those children that are eligible for special education and related services pursuant to the Individuals with Disabilities Education Act [20 U.S.C. § 1400 et seq.] as of that date;

   (3) Each city or town shall receive state education aid in an amount equal to the number of group home or other residential facility "beds" in that community multiplied by a per pupil rate, subject to appropriation, intended to reflect the average cost per pupil based on the blend of regular education and special education students in group homes as derived from figures supplied on December 31 June 30 of the preceding reference year as defined in §16-7-16(11). Any city or town may petition the commissioner of elementary and secondary education for additional state education aid pursuant to this section in any year in which the total number of group home or other residential facility "beds" is increased by more than five (5) in any annual cycle.

   (4) The general assembly shall annually appropriate a sum sufficient to distribute to each city or town the aid required by this subsection based upon the DCYF count provided on December 31 June 30 of the preceding reference year as defined in §16-7-16(11) and that aid shall be distributed by the department of elementary and secondary education. For an appropriation to be made for payments to be made for the 2001-2002 school year the DCYF shall establish a count as required in this subsection upon passage of this legislation [July 5, 2001]. This count shall be determined based on the group home and other residential facility "beds" in existence in each community as of December 31 of the preceding year.

   (c) Children placed by DCYF in a residential treatment program, group home, or other residential facility, whether or not located in the state of Rhode Island, which includes the delivery of educational services, provided by that facility (excluding facilities where students are taught on grounds for periods of time by teaching staff provided by the school district in which the facility is located), shall have the cost of their education paid for as provided for in subsection (d) of this section and § 16-64-1.2. The city or town determined to be responsible to DYCF for a per-pupil special education cost pursuant to § 16-64-1.2 shall pay its share of the cost of educational services to DCYF or to the facility providing educational services.

   (d) Children placed by DCYF in group homes, child caring facilities, community residences, or other residential facilities shall have the entire cost of their education paid for by DCYF if:

   (1) The facility is operated by the state of Rhode Island or the facility has a contract with DCYF to fund a pre-determined number of placements or part of the facility's program;

   (2) The facility is state-licensed; and

   (3) The facility operates an approved on-grounds educational program, whether or not the child attends the on-grounds program.

SECTION 3.  Section 16-77.1-2 of the General Laws in Chapter 16-77.1 entitled “Funding of Charter Public Schools” is hereby amended to read as follows:

16-77.1-2.  Operating costs. – (a) Operating costs of a charter public school shall be the total of the per pupil payments for each student attending the charter public school. The per pupil payment for each student shall be determined based on the per pupil cost for the district of residence of each student. The state's share of the per pupil amount for each student attending the charter public school shall be paid by the state directly to the charter public school and shall be the percent, or share ratio, previously calculated under chapter 7 of this title minus the five percent (5%) of per pupil cost designated for indirect cost support to the student's school district as defined in subsection (b). The five percent (5%) indirect cost amount shall be deducted from the district per pupil cost before the state share is derived by applying the share ratio to the district per pupil cost. The local share of the per pupil amount for each student attending the charter public school shall be paid to the charter public school by the district of residence of the student and shall be the per pupil cost for the district of residence of the student minus the state share of that per pupil cost as designated in this section.

   (b) In addition to all state aid to education paid to a local district pursuant to chapter 7.1 of this title, the state will pay an additional amount to the district for each student from this district who is attending a charter public school. The additional amount of state aid per pupil shall be five percent (5%) of the district’s per pupil cost. The additional state aid shall be for the purpose of assisting local school districts to undertake the indirect costs borne by a district when its student attends a charter public school.

   (c) The state department of elementary and secondary education shall annually determine both the state and local share of each charter public school's operating costs by deriving the respective shares associated with each student enrolled in reported as a member of the charter public school as of October 1 June 30 of the prior school reference year as defined in §16-7-16 (11) (or the enrollment as of October 1 of the current school year in the first year of operation of a charter school). All other data used in this determination shall be based upon the reference year as defined in § 16-7-16(11).

   (d) The state shall make payments of its share of operating costs to each charter public school on a quarterly basis in July, October, January, and April. The July and October payments will be based upon the reported student enrollment membership of the charter public school as of October 1 of the prior school June 30 of the reference year as defined in §16-7-16(11) (or the enrollment as of October 1 of the current school year in the first year of operation of a charter school). Charter public schools will report current student enrollment, including district of residence for school purposes of each student enrolled, and each district will report current total district operating expenses and total district enrollments (including district students enrolled in charter public schools) annually by October 1. If the October 1 data on a charter public school's student enrollment show a ten percent (10%) or greater increase or decrease in students enrollment from the preceding October 1 June membership count, the third and fourth quarter payments to the charter public school will be adjusted to reflect actual student enrollment in the charter public school.

   (e) Local district payments to charter public schools for each district's students enrolled in the charter public school shall also be made quarterly as designated in subsection (d); the first local district payment shall be made by August 15 instead of July. Any local school district more than thirty (30) days in arrears on a quarterly payment for its student(s) enrolled in a charter public school shall have the amount of the arrearage deducted from state aid to that district and the withheld arrearage shall be paid by the state directly to the charter public school.

   (f) Local school districts with student(s) enrolled in a charter public school shall continue to report these students in the total census of district public school students and will receive state aid for all these students pursuant to the provisions of chapter 7.1 of this title.

   (g) All entitlements except those provided for in § 16-24-6.2 shall be ratably reduced if less than one hundred percent (100%) of the expenditures is appropriated.

SECTION 4. Sections 16-77-3, 16-77-5, and 16-77-8 of the General Laws Chapter 16-77 entitled “Establishment of Charter Public Schools” are hereby amended to read as follows:

16-77-3. Commissioner of elementary and secondary education and local school committee authorized to recommend the granting of a charter. – (a) The commissioner of elementary and secondary education and/or the school committee where the charter public school is to be located are authorized in response to an application to recommend to the board of regents for elementary and secondary education the granting of a revocable charter authorizing operation of a charter public school for up to five (5) years, subject to renewal for additional five-year periods.

(b) Persons or entities eligible to submit an application to establish a charter school shall be limited to:

(1) Existing public schools;

(2) Groups of public school personnel;

(3) Public school districts;

(4) Established Rhode Island nonprofit organizations in accordance with subsection (i) of this section provided that these nonprofit organizations shall have existed for at least two (2) years and must exist for a substantial reason other than to operate a school;

(5) A group of school districts; or

(6) Colleges and universities within the state of Rhode Island.

(c) No existing public school shall be converted into a charter public school unless a majority of the parents and/or guardians of the students currently assigned to the school and two-thirds (2/3) of the certified teaching personnel currently assigned to the school approve the proposed charter, as provided in § 16-77-4.1.

(d) No private or parochial schools shall be eligible for charter school status, nor shall a charter school be affiliated in any way with a sectarian school or religious institution. Any charter school authorized by this chapter shall be nonsectarian and nonreligious in its programs, admissions policies, employment practices, and all other operations. The board of regents shall not approve a charter to a school whose overall operation or education program is managed by a for profit entity.

(e) School professionals employed by a local or regional school committee or the state of Rhode Island shall be entitled to a two (2) year leave of absence, without compensation, in order to be employed in a charter school, provided this leave shall be extended upon request for an additional two (2) years. At any time during or upon completion of this leave of absence, a school professional may return to work in the school district in the position in which he or she was previously employed or a comparable position. This leave of absence shall not be deemed to be an interruption of service for purposes of seniority and teachers' retirement.

(f) No child shall be required to attend a charter public school nor shall any teacher be required to teach in a charter public school. The school committee shall make accommodations to facilitate the transfer of students who do not wish to participate in the charter public school into other public schools. It shall also make accommodations for those students who wish to participate to transfer into the charter public school as space permits. If the total number of students who are eligible to attend and apply to a charter school is greater than the number of spaces available, the charter school shall conduct a lottery to determine which students shall be admitted.

(g) The commissioner is empowered to promulgate rules and regulations consistent with this chapter, in conformance with chapter 35 of title 42, for the creation and operation of charter public schools. These rules and regulations shall set forth the process for rescission of state approval of a charter school, including appropriate protections to ensure the continued provision of education services to the students of the charter school whose charter is rescinded.

(h) All charter schools shall adhere to financial record keeping, reporting, auditing requirements, and procedures in the same manner as required of local public school districts and in accordance with federal and state laws and regulations.

(i) Any nonprofit organization which seeks to establish a charter school must submit its financial records and financial plan for operating the school to the auditor general, who shall review the records, the financial plan, and the financial integrity of the organization. At the time of initial charter application the financial records and financial recordkeeping system of the nonprofit organization and the proposed financial plan for the charter school shall be reviewed by the auditor general and the auditor general shall, while the application is being considered for preliminary approval by the board of regents, provide an initial determination to the board of regents, the commissioner of elementary and secondary education, and the speaker of the house of representatives indicating that the auditor general is satisfied that the nonprofit organization is financially responsible. Final approval for operation of the public charter school shall not be granted by the board of regents until the auditor general has approved the financial plan and financial record keeping system and is satisfied that the nonprofit organization is financially responsible. The auditor general shall notify the board of regents, the commissioner of elementary and secondary education, and the speaker of the house of representatives of the findings. During the year immediately preceding the September in which the public charter school is to begin operation, the charter applicant shall make any additional submissions to the auditor general prescribed by the auditor general in the initial determination. Additional submissions during the year prior to the September in which the public charter school is to begin operation shall include, but not be limited to, evidence submitted to the auditor general not later than June 1 prior to the opening of the public charter school of the existence of an agreement, option for lease or purchase, lease agreement or purchase agreement, contingent upon general assembly funding, for a facility in which the public charter school will operate in its first year of operation. The auditor general shall have the authority to review charter schools on an annual basis or require the charter school to have an annual certified audit in accordance with the same federal and state standards that are applicable to local public school districts. If as a result of any annual audit the auditor general believes there are financial irregularities, the auditor general shall withdraw the original approval and the board of regents shall withdraw its approval for the charter school to continue operation.

(j) Notwithstanding the provisions of this section, the Board of Regents shall not grant final approval for any new charter school to begin operations in the 2005-2006 school year.

Notwithstanding the provisions of this section, the Board of Regents shall not grant final approval for any new charter school to begin operations in the 2006-2007 or 2007-2008 school year.

16-77-5. Process for consideration of proposed charter. – (a) If the commissioner of elementary and secondary education or the local school committee finds the application to be incomplete, further information may be requested and required. The commissioner shall develop regulations for amending an approved charter, consistent with the provisions of this chapter.

(b) After having received a satisfactory application, the commissioner of elementary and secondary education will provide for a public comment period of not less than sixty (60) days, during which they will hold at least two (2) public hearings on the application. These hearings will be held in the district where the proposed charter school is to be located. Any person may file with the committee and/or the commissioner comments, recommendations, and/or objections relevant to the granting of a charter.

(c) A copy of the completed application for a charter public school at an existing public school shall be provided to the collective bargaining agent for the teachers in that school district at the time that it is filed with the school committee and the commissioner. The teachers through their collective bargaining agent shall be afforded the opportunity to present their analysis of and recommendations regarding the proposed charter to the school committee and the board of regents for elementary and secondary education prior to any determination by those entities. If the teachers' union objects to the proposed charter or to any provision of it, it shall set forth the reasons for those objections in detail. These objections and recommendations shall be considered and responded to by the school committee and the commissioner before making any recommendation to the board of regents, and by the board of regents prior to its determination.

(d) The commissioner and the local school committee will each decide on whether or not to recommend the granting of the charter within ninety (90) days after the conclusion of the public comment period.

(e) If the commissioner of elementary and secondary education or the local school committee recommend the granting of the charter public school petition, the matter shall be referred to the board of regents for a decision on whether or not to grant a charter. Notice of the granting or denial of the application will be supplied. The decision of the board of regents, complete with reasons and conditions, shall be made available to the public and to the applicant.

(f) The commissioner, with the approval of the board of regents for elementary and secondary education, may grant a variance to any provision of title 16 other than those enumerated in § 16-77-11 and to any department of education regulation and to any school district regulation which does not affect the health and safety or civil rights of pupils in charter public schools.

(g) All charter applications shall be matters of public record and will be provided to members of the public upon request.

(h) Notwithstanding the provisions of this section, the Board of Regents shall not grant final approval for any new charter school to begin operations in the 2005-2006 school year.

Notwithstanding the provisions of this section, the Board of Regents shall not grant final approval for any new charter school to begin operations in the 2006-2007 or 2007-2008 school year.

16-77-8.  Oversight by commissioner. – (a) Individuals or groups may complain to a charter school's governing body concerning any claimed violation of the provisions of this chapter by the school. If, after presenting their complaint to the governing body, the individuals or groups believe their complaint has not been adequately addressed, they may submit their complaint to the commissioner of elementary and secondary education who shall hear and decide the issue pursuant to §§ 16-39-1 and 16-39-2.

   (b) Charter school approval for establishment or continuation shall be for up to a five (5) year period. In either case, board of regents approval is required.  However, the charter may be revoked at any time if the school:

   (1) Materially violates provisions contained in the charter;

   (2) Fails to meet or pursue the educational objectives contained in the charter;

   (3) Fails to comply with fiscal accountability procedures as specified in the charter; or

   (4) Violates provisions of law that have not been granted variance by the board of regents.

   (c) After denying or prior to nonrenewing or revoking a charter, the department of elementary and secondary education will hold a hearing on the issues in

controversy under § 16-39-1.

   (d) No more than twenty (20) charters, serving no more than four percent (4%) of the state's school age population, shall be granted. At least ten (10) of the twenty (20) total charters shall be reserved for charter school applications which are designed to increase the educational opportunities for at-risk pupils. No more than two (2) charters may be granted in a single school district, except that if a district has more than twenty thousand (20,000) students then four (4) charters may be granted.

SECTION 5. Section 16-77.1-2 of the General Laws in Chapter 16-77.1 entitled "Funding of Charter Public Schools" is hereby amended to read as follows:

16-77.1-2. Operating costs. -- (a) Operating costs of a charter public school shall be the total of the per pupil payments for each student attending the charter public school. The per pupil payment for each student shall be determined based on the per pupil cost for the district of residence of each student. The state's share of the per pupil amount for each student attending the charter public school shall be paid by the state directly to the charter public school and shall be the percent, or share ratio, previously calculated under chapter 7 of this title; provided, that in no case shall the ratio be less than thirty percent (30%), minus the five percent (5%) of per pupil cost designated for indirect cost support to the student's school district as defined in subsection (b). The five percent (5%) indirect cost amount shall be deducted from the district per pupil cost before the state share is derived by applying the share ratio to the district per pupil cost. The local share of the per pupil amount for each student attending the charter public school shall be paid to the charter public school by the district of residence of the student and shall be the per pupil cost for the district of residence of the student minus the state share of that per pupil cost as designated in this section.

 (b) In addition to all state aid to education paid to a local district pursuant to chapter 7.1 of this title, the state will pay an additional amount to the district for each student from this district who is attending a charter public school. The additional amount of state aid per pupil shall be five percent (5%) of the districts per pupil cost. The additional state aid shall be for the purpose of assisting local school districts to undertake the indirect costs borne by a district when its student attends a charter public school.

 (c) The state department of elementary and secondary education shall annually determine both the state and local share of each charter public school's operating cost by deriving the respective shares associated with each student enrolled in the charter public school as of October 1 of the prior school year (or as of October 1 of the current school year in the first year of operation of a charter school). All other data used in this determination shall be based upon the reference year as defined in section 16-7-16(11).

 (d) The state shall make payments of its share of operating cost to each charter public school on a quarterly basis in July, October, January, and April. The July and October payments will be based upon the reported student enrollment of the charter public school as of October 1 of the prior school year (or as of October 1 of the current school year in the first year of operation of a charter school). Charter public schools will report current student enrollment, including district of residence for school purposes of each student enrolled, and each district will report current total district operating expenses and total district enrollments (including district students enrolled in charter public schools) annually by October 1. If the October 1 data on a charter public school's student enrollment show a ten percent (10%) or greater increase or decrease in student enrollment from the preceding October 1, the third and fourth quarter payments to the charter public school will be adjusted to reflect actual student enrollment in the charter public school.

 (e) Local district payments to charter public schools for each district's students enrolled in the charter public school shall also be made quarterly as designated in subsection (d); the first local district payment shall be made by August 15 instead of July. Any local school district more than thirty (30) days in arrears on a quarterly payment for its student(s) enrolled in a charter public school shall have the amount of the arrearage deducted from state aid to that district and the withheld arrearage shall be paid by the state directly to the charter public school.

 (f) Local school districts with student(s) enrolled in a charter public school shall continue to report these students in the total census of district public school students and will receive state aid for all these students pursuant to the provisions of chapter 7.1 of this title.

 (g) All entitlements except those provided for in section 16-24-6.2 shall be ratably reduced if less than one hundred percent (100%) of the expenditures is appropriated.

SECTION 6.  Sections 16-7.1-10 and 16-7.1-15 of the General Laws in Chapter 16-7.1 entitled “The Rhode Island Student Investment Initiative” are hereby amended to read as follows:

16-7.1-10.  Professional development investment fund. – (a) In order to continue developing the skills of Rhode Island's teachers, administrators and staff, the general assembly establishes a Professional Development Investment Fund. The general assembly shall annually appropriate some sum and distribute it based on a pupil-teacher ratio that shall be adjusted annually by the commissioner of elementary and secondary education. School districts, including collaboratives established pursuant to chapter 16-3.1, may use funds received under this category of education aid to replace up to, but no more than, fifty percent (50%) of the amount the school district spent for professional development programs in the previous fiscal year. The expenditure of these funds shall be determined by a committee at each school consisting of the school principal, two (2) teachers selected by the teaching staff of the school, and two (2) parents of students attending the school. Schools that enroll students in the early grades (kindergarten through grade three (3)) must expend these funds on the development of scientific research based, as described in the No Child Left Behind Act of 2001, Title 1, Part B, Section 1208 [20 U.S.C. § 6368], reading instruction to improve students reading performance.  Schools that have met their performance targets in reading for the current academic year and are not designated as a school in need of improvement, may expend their Professional Development Investment Funds on professional development in the core academic subjects of mathematics, writing, or reading to improve student performance.

Collaborative programs between schools are encouraged. These resources shall be used to close student performance gaps in accordance with the school's and district's strategic plan pursuant to § 16-7.1-2. Additional funds shall be allocated to the department of elementary and secondary education to support teacher and administrator professional development in all districts, including, but not limited to:

(1) Supporting mentoring systems;

(2) Providing school districts with program support to assist teachers in local school districts to improve reading instruction and enhance the integration of reading

throughout the curriculum with the goal of improving student performance to high standards;

   (3) Support for the design and implementation of leadership development for the teacher to assume leadership roles or ultimately prepare for administrator;

   (4) Development of a plan for formal training of school leaders in standards based instruction, school improvement planning, effective use of data in the

decision-making process, community involvement and creation of governance structures;

   (5) Support for national board certification of teachers, application fees for a certificate of clinical competence issued by the American speech-language hearing

association, and grants for coordination and support of school based teacher professional development; and

   (6) The practice of scientific research based reading instruction to improve reading performance.

   (b) In FY 2003, the additional funds allocated to the department of elementary and secondary education pursuant to this section shall be used only to support the activities described in subdivisions (a)(2) and (a)(5) of this section.

   (c) Out of the funds appropriated by the general assembly for professional development in subsection (a) of this section, twenty-five percent (25%) shall be set aside for district-wide professional development activities. The expenditure of this district-wide professional development set-aside shall be determined by a committee in each district consisting of the superintendent or his or her designee, three (3) teachers appointed by the collective bargaining agent, and one member of the Rhode Island department of elementary and secondary education field service team servicing that school district designated by the commissioner of elementary and secondary education. The expenditure must be aligned with the district strategic plan as well as ongoing professional development programs approved by the department of elementary and secondary education. Collaborative programs between school districts are permissible.

     (d) Beginning in FY 2006, professional development funds shall only be spent with the prior approval of the commissioner of elementary and secondary education upon submission of a district level plan which incorporates the school level plans and which details the use of the funds.  These plans shall to the extent possible call for professional development activities that are embedded or do not otherwise encroach upon student instruction time.  The requirements of this paragraph shall apply to both district-wide professional development activities and professional development activities determined by the school-level committees.

16-7.1-15.  The Rhode Island student investment initiative. – (a) Each locally or regionally operated school district shall receive as a base the same amount of school aid as each district received in fiscal year 1997-1998, adjusted to reflect the increases or decreases in aid enacted to meet the minimum and maximum funding levels established for FY 2000 through FY 2004 2005. Each school district shall also receive school aid through each investment fund for which that district qualifies pursuant to §§ 16-7.1-8, 16-7.1-9, 16-7.1-10, 16-7.1-11, 16-7.1-12, 16-7.1-16 and 16-7.1-19. These sums shall be in addition to the base amount described in this section. Calculation and distribution of education aid under §§ 16-5-31, 16-5-32, 16-7-20, 16-7-20.5, 16-7-34.2, 16-7-34.3, 16-24-6, 16-54-4, and 16-67-4 is hereby suspended. The funding of the purposes and activities of chapter 67 of this title, the Rhode Island Literacy and Dropout Prevention Act of 1967, shall be the same amount of the base amount of each district funded for that purpose in fiscal year 1997-1998. In addition each district shall expend three percent (3%) of its student equity and early childhood funds under the provisions of chapter 67 of this title.

   (b) Funding for full day kindergarten programs in accordance with § 16-7.1-11.1 shall be in addition to funding received under this section.

   (c) Funding distributed under §§ 16-77.1-2(b) and 16-64-1.1 shall be in addition to funding distributed under this section.

   (d) There shall be an appropriation to ensure that total aid distributed to communities in FY 2005 2006 under this section and §§ 16-7.1-11.1, 16-64-1.1 and 16-77.1-2(b) shall be not less than aid received in FY 2004 as follows:

Barrington                                                                     2,479,907

Burrillville                                                                     13,145,661

Charlestown                                                                  1,910,676

Coventry                                                                       19,151,316

Cranston                                                                       33,943,638

Cumberland                                                                  12,646,981

East Greenwich                                                             1,860,042

East Providence                                                                        25,530,776

Foster                                                                           1,351,283

Glocester                                                                      3,065,960

Hopkinton                                                                     5,954,153

Jamestown                                                                    507,432

Johnston                                                                       10,413,088

Lincoln                                                                         7,062,603

Little Compton                                                              351,839

Middletown                                                                   10,014,086

Narragansett                                                                 1,809,860

Newport                                                                       11,253,278

New Shoreham                                                             101,451

North Kingstown                                                           11,434,463

North Providence                                                          12,623,955

North Smithfield                                                            4,611,787

Pawtucket                                                                    63,782,029

Portsmouth                                                                   5,962,443

Providence                                                                    185,048,912

Richmond                                                                     5,903,843

Scituate                                                                                    3,250,400

Smithfield                                                                      5,407,726

South Kingstown                                                           9,948,816

Tiverton                                                                        5,659,091

Warwick                                                                       35,894,621

Westerly                                                                       6,528,189

West Warwick                                                              19,499,965

Woonsocket                                                                  45,425,511

Bristol-Warren                                                              19,554,956

Exeter-West Greenwich                                                            7,308,493

Chariho                                                                         380,004

Foster-Glocester                                                            5,466,199

Central Falls                                                                  41,319,965

This special provision shall not limit entitlements as determined by application of other formula provisions in this section.

   (e) Children with disabilities. (1) Based on its review of special education within the context of Rhode Island school reform, the general assembly recommends addressing the needs of all children and preventing disability through scientific research based, as described in the No Child Left Behind Act of 2001, Title 1, Part B, Section 1208 [20 U.S.C. § 6368], reading instruction and the development of Personal Literacy Programs for students in the early grades performing below grade level in reading and implement a system of student accountability that will enable the state to track individual students over time. Additionally, the department of elementary and secondary education must provide districts with rigorous criteria and procedures for identifying students with learning disabilities and speech/language impairments. Additional study is required of factors that influence programming for students with low incidence disabilities; those with disabilities that severely compromise life functions; and programming for students with disabilities through urban special education. Alternatives for funding special education require examination.

   (2) All departments and agencies of the state shall furnish any advice and information, documentary and otherwise, to the general assembly and its agents that is deemed necessary or desirable by the study to facilitate the purposes of this section.

SECTION 7.    Section 16-8-10.1 of the General Laws in Chapter 16-8 entitled “Federal Aid” is hereby amended to read as follows:

16-8-10.1. Mandatory school breakfast programs. – (a) All public schools shall make a breakfast program available to students attending the school. The breakfast meal shall meet any rules and regulations that are adopted by the commissioner.

   (b) Any costs (other than transportation costs) associated with this program in excess of available federal money shall be borne exclusively by the state of Rhode Island and not by municipalities.  The state of Rhode Island shall provide school districts a per breakfast subsidy for each breakfast served to students.  The general assembly shall annually appropriate some sum and distribute it based on each district’s proportion of the number of breakfasts served in the prior school year relative to the statewide total in the same year.  This subsidy shall augment the nonprofit school food service account and be used for expenses incurred in providing nutritious breakfast meals to students.

SECTION 8. Section 16-7-41 of the General Laws in Chapter 16-7 entitled "Foundation Level School Support" is hereby amended to read as follows:

16-7-41. Computation of school housing aid. -- (a) In each fiscal year the state shall pay for the benefit of each community a grant to be applied to the cost of school housing equal to the following:

 The cost of each new school housing project certified to the commissioner of elementary and secondary education not later than July 15 of the fiscal year shall be divided by the actual number of years of the bond issued by the local community or the Rhode Island Health and Educational Building Corporation in support of the specific project, times the school housing aid ratio; and provided, further, with respect to costs of new school projects financed with proceeds of bonds issued by the local community or the Rhode Island Health and Educational Building Corporation in support of the specific project, the amount of the school housing aid payable in each fiscal year shall not exceed the amount arrived at by multiplying the principal and interest of the bonds payable in each fiscal year by the school housing aid ratio and which principal and interest amount over the life of the bonds, shall, in no event, exceed the costs of each new school housing project certified to the commissioner of elementary and secondary education. If a community fails to specify or identify the appropriate reimbursement schedule, the commissioner of elementary and secondary education may at his or her discretion set up to a five (5) year reimbursement cycle for projects under five hundred thousand dollars ($500,000); up to ten (10) years for projects up to three million dollars ($3,000,000); and up to twenty (20) years for projects over three million dollars ($3,000,000).

 (b) Aid shall be provided for the same period as the life of the bonds issued in support of the project and at the school housing aid ratio applicable to the local community at the time of the bonds issued in support of the project.

(c) Aid shall be paid either to the community or in the case of projects financed through the Rhode Island Health and Educational Building Corporation, to the Rhode Island Health and Educational Building Corporation or its designee including, but not limited to, a trustee under a bond indenture or loan and trust agreement, in support of bonds issued for specific projects of the local community in accordance with this section, section 16-7-40 and section 16-7-44.  Notwithstanding the  preceding, in case of failure of any city, town or district to pay the amount due in support of bonds issued on behalf of a city or town school project financed by the Rhode Island Health and Educational Building Corporation, upon notification by the Rhode Island Health and Educational Building Corporation, the general treasurer shall deduct the amount from aid provided under this section, section 16-7-40 and section 16-7-44 due the city, town or district and direct said funding to the Rhode Island Health and Educational Building Corporation or its designee.     

 (d) Payments shall be made in accordance with section 16-7-40 and this section.

SECTION 9. (a) The department of elementary and secondary education shall adopt rules and regulations for the approval of school construction projects eligible for reimbursement by the state. The rules and regulations for approval of projects for housing aid reimbursement shall be on the basis of project enrollments and a uniform system of allowable square feet per student and cost per square foot.

(b) The rules and regulations shall be submitted to the general assembly by January 1, 2007 with copies to the president of the senate, the speaker of the house, the chairperson of the senate finance committee, the chairperson of the house finance committee, the senate fiscal advisor and the house fiscal advisor.  

SECTION 10. Section 45-13-13 of the General Laws in Chapter 45-13 entitled "State Aid" is hereby repealed.

45-13-13. Adjustments to tax levy, assessed value, and full value when computing state aid. -- (a) Whenever the director of administration computes the relative wealth of municipalities for the purpose of distributing state aid in accordance with title 16 and the provisions of section 45-13-12, the following adjustments shall be made:

 (1) The tax levy of each municipality shall be adjusted upward by the amount of payment in lieu of tax revenue estimated to be received by a municipality pursuant to a tax treaty agreement authorized by a special public law or by reason of agreements between a municipality and the economic development corporation in accordance with section 42-64-20;

 (2) Simultaneously, the assessed value, full value and equalized weighted assessed value of the municipality shall also be adjusted upward to reflect the imputed value of the tax treaty property as if the payment in lieu of tax revenues received pursuant to the agreements identified above had resulted from a tax levy;

 (3) Fire district tax levies within a city or town shall be included as part of the total levy attributable to that city or town.

 (b) The changes as required by subdivisions (a)(1) through (a)(3) shall be incorporated into the computation of entitlements effective for distribution in fiscal year 2002-2003 and thereafter.

SECTION 11. Chapter 16-45 of the General Laws entitled "Regional Vocational Schools" is hereby amended by adding thereto the following section:

16-45-6.1. Career and technical education. -- The general assembly finds that career and technical education programs that meet rigorous industry standards and prepare Rhode Island's students to succeed in a wide variety of employment settings are a critical component of the state's public education system and a necessary element of the state's economic development.

The general assembly further finds that the proportion of students now enrolled in such programs is inadequate. Therefore, all Rhode Island school districts shall file a plan with the Commissioner of Elementary and Secondary Education no later than January 1, 2006 setting forth the means through which no fewer than forty (40) percent of their students enrolled in grades nine (9) through twelve (12) shall be provided the opportunity to enroll in career and technical programming that is certified by the Rhode Island Department of Education as meeting industry standards by September 2007.

To facilitate the development of additional career and technical program offerings for Rhode Island students that meet industry standards the department of elementary and secondary education shall, in furtherance of the reports and studies that have been developed since 2000 setting forth recommendations for an updated system of career and technical education for the State of Rhode Island, develop a system design that includes site assessments of all current career and technical programs and sets forth standards and procedures for the department of elementary and secondary education to approve programs that are developed in cooperation with business, industry and postsecondary institutions. The department shall also develop a system design for three additional state operated career and technical schools, in addition to the William H. Davies School and the Metropolitan Career and Technical Center, including recommendations for a model for the siting, building costs, operational costs and program design for each such school. The general assembly shall appropriate funds to the department for purposes of their completion of the system design for the statewide program approval process to industry standards and the development of the models, siting and program design of the three additional state operated career and technical schools.

SECTION  12. This article shall take effect on July 1, 2005.