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art.009/10/009/9/009/8/009/7/009/6/009/5/009/4/009/3/009/2
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ARTICLE 9
RELATING TO EDUCATION

     SECTION 1. Sections 16-7-20 and 16-7-21 of the General Laws in Chapter 16-7 entitled
"Foundation Level School Support [See Title 16 Chapter 97 - The Rhode Island Board of Education
Act]" are hereby amended to read as follows:
     16-7-20. Determination of state's share.
     (a) For each community the state's share shall be computed as follows: Let
     R = state share ratio for the community.
     v = adjusted equalized weighted assessed valuation for the community, as defined in
      § 16-7-21(3).
     V = sum of the values of v for all communities.
     m = average daily membership of pupils in the community as defined in § 16-7-22(3).
     M = total average daily membership of pupils in the state.
     E = approved reimbursable expenditures for the community for the reference year minus
      the excess costs of special education, tuitions, federal and state receipts, and other
      income.
     Then the state share entitlement for the community shall be RE where
     R = 1 - 0.5vM/(Vm) through June 30, 2011, and R = 1 - 0.475 vM/(Vm) beginning on July
1, 2011 and thereafter.
     Except that in no case shall R be less than zero percent (0%).
     (b) Whenever any funds are appropriated for educational purposes, the funds shall be used
for educational purposes only and all state funds appropriated for educational purposes must be
used to supplement any and all money allocated by a city or town for educational purposes and in
no event shall state funds be used to supplant, directly or indirectly, any money allocated by a city
or town for educational purposes. The courts of this state shall enforce this section by writ of
mandamus.
     (c) Notwithstanding the calculations in subsection (a), the hospital school at the Hasbro
Children's Hospital shall be reimbursed one hundred percent (100%) of all expenditures approved
by the board of regents for elementary and secondaryeducation council on elementary and
secondary education in accordance with currently existing rules and regulations for administering
state aid, and subject to annual appropriations by the general assembly including, but not limited
to, expenditures for educational personnel, supplies, and materials in the prior fiscal year.
     (d) In the event the computation of the state's share for any local education agency as
outlined in subsection (a) is determined to have been calculated incorrectly after the state budget
for that fiscal year has been enacted, the commissioner of elementary of and secondary education
shall notify affected local education agencies, the senate president, and the speaker of the house
within fifteen (15) days of the determination.
     (e) Realignment of aid payments to the affected local education agencies pursuant to
subsection (d) shall occur in the following fiscal year:
     (1) If the determination shows aid is underpaid to the local education agency, any amounts
owed shall be paid in equal monthly installments.
     (2) If the determination shows aid was overpaid, the department of elementary and
secondary education shall recapture some amount of the aid from the overpaid local education
agency. The amount to be withheld shall be equal to the amount of the overpayment prorated to the
number of full months remaining in the fiscal year when the notification required in subsection (d)
was made.
     16-7-21. Determination and adjustment of equalized weighted assessed valuation.
     On or before August 1 of each year the division of property valuation within the department
of revenue shall determine and certify to the commissioner of elementary and secondary education
the equalized weighted assessed valuation for each city and town in the following manner:
     (1) The total assessed valuations of real and tangible personal property for each city and
town as of December 31 of the third preceding calendar year shall be weighted by bringing the
valuation to the true and market value of real and tangible personal property. The total assessed
valuations of real and tangible personal property for all cities and towns shall be applied to the true
and market valuations of the property for all cities and towns and the resulting percentage shall
determine the average throughout the state. This percentage applied to the sum of the total true and
market value of real and tangible personal property of each city and town shall be the equalized
weighted assessed valuation of each city and town.
     (2) The equalized weighted assessed valuation for each city and town shall be allocated to
the particular city or town, and in the case of a regional school district which that does not service
all grades, except the Chariho regional high school district, the commissioner of elementary and
secondary education shall apportion that proportion of the equalized weighted assessed valuation
of the member cities or towns which that the average daily membership serviced by the regional
school district bears to the total average daily membership, and the equalized weighted assessed
valuation of the member cities and towns shall be appropriately reduced.
     (3) The equalized weighted assessed valuation for each community as allocated or
apportioned in accordance with subdivision subsection (2) of this section shall be adjusted by the
ratio which that the median family income of a city or town bears to the statewide median family
income as reported in the latest available federal census data. The total state adjusted equalized
weighted assessed valuation shall be the same as the total state equalized weighted assessed
valuation.
     (4) In the event that certified data is later determined to be incorrect, the division of
property valuation, in conjunction with the commissioner of elementary and secondary education,
shall inform local education agencies, the senate president, and the speaker of the house of the
issue(s) within five (5) days of the determination.
     SECTION 2. Legislative findings and intent. The general assembly hereby finds and
declares that:
     (1) The University university of Rhode Island has become a public research university
educating more than eighteen thousand (18,000) students annually, and offering opportunities to
study in more than ninety (90) bachelor’s degree, more than seventy (70) graduate degree, and more
than twenty (20) certificate and non-degree programs.;
     (2) The aspirations of high school graduates and their families require the continuous
innovation and transformation of the university and its academic programs.;
     (3) The shrinking and shifting demographics of high school graduates in the region coupled
with the increased competitiveness of the higher education marketplace requires the university to
be strategic, nimble, and innovative in its recruitment, financial aid, and academic offerings in order
to be successful.;
     (4) The University university of Rhode Island’s peer institutions and aspirational
competitor institutions have governing bodies solely dedicated to the success of their mission and
focus on these higher education trends and best practices for their public research university,; and
     (5) The University university of Rhode Island would benefit from having a Board of
Trustees board of trustees entirely committed to exploring opportunities, addressing challenges,
and creating new economic opportunities and partnerships for the university.; and
     (6) The general assembly finds that the establishment of a University university of Rhode
Island board of trustees is necessary to effectuate these goals for the governance and support of the
University university of Rhode Island.
     SECTION 3. Sections 16-32-2, 16-32-2.1, 16-32-5, 16-32-9, 16-32-10, 16-32-11, 16-32-
12, 16-32-15, 16-32-25 and 16-32-26 of the General Laws in Chapter 16-32 entitled "University of
Rhode Island [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" are hereby
amended to read as follows:
     16-32-2. Continuation of powers of board. Board of Trustees established.
     The change in name shall in no way affect the powers and duties of the board of governors
for higher education defined in chapter 59 of this title; and the board of governors for higher
education shall be responsible for the control, management, and operation of the University of
Rhode Island in the same manner as previously it was responsible for the control, management, and
operation of it under the name of Rhode Island State College.
     (a) There is hereby created a board of trustees for the University university of Rhode
Island, sometimes referred to as the "board" or "board of trustees", which shall be and is constituted
a public corporation, empowered to sue and be sued in its own name,; to borrow money,; to
compromise and settle claims,; to have a seal,; and to make and execute contracts and other
instruments necessary or convenient to the exercise of its powers,; and to exercise all the powers,
in addition to those specifically enumerated in this chapter, usually appertaining to public
corporations entrusted with control of postsecondary educational institutions and functions. Upon
its organization, the board shall be vested with the legal title to all property, real and personal, now
owned by and/or under the control or in the custody of the council on postsecondary education for
the use of the University university of Rhode Island, including all its departments, divisions, and
branches, sometimes referred to as the property.
     (b) The board is empowered to hold and operate the property in trust for the state; to
acquire, hold, and dispose of the property and other like property as deemed necessary for the
execution of its corporate purposes. The board is made successor to all powers, rights, duties, and
privileges for the University university of Rhode Island formerly belonging to the council on
postsecondary education pertaining to postsecondary education and the board of governors for
higher education.
     (c) The board shall be the employer of record for the university. It shall retain all authority
formerly vested in the council on postsecondary education and the board of education regarding
the employment of faculty and staff at the University university of Rhode Island. The board shall
appoint the president of the university and shall review their performance on an annual basis.
     (1) The board is empowered to enter into contracts and agreements with the council on
postsecondary education and/or the department of administration related to employee benefits,
including but not limited to retirement benefits, health, dental, vision and life insurance, disability
insurance, workers’ compensation, and tuition waivers to maximize the state’s and university’s
purchasing and investment portfolio and educational opportunities for the benefit of its employees.
     (2) The board is empowered to enter into collective bargaining agreements as appropriate
with its employees and all existing collective bargaining agreements in effect when the board is
established pursuant to § 16-32-2.2 shall be transferred from the council on postsecondary
education to the board.
     (d) The board shall make rules and regulations for the control and use of all public
properties and highways under its care, and for violations of those rules and regulations; penalties,
up to one hundred dollars ($100) and costs for any one offense, may be imposed by any district
court or police court in the city or town where the violation occurs; and, in general, the board shall
take all actions necessary for the proper execution of the powers and duties granted to, and imposed
upon, the board by the terms of this chapter.
     (e) The board shall make rules and regulations pursuant to chapter 2 of title 37 to implement
its responsibilities as a public agency for procurement purposes as defined in § 37-2-7(16).
     (f) The board shall evaluate data on which to base performance of the university as
described in subsection (g) of this section which shall be defined by the president of the university.
These measures may include and incorporate outcomes or goals from multiple, previous years. The
lack of information from previous years, however, will not affect the use of performance-based
measures.
     (g) The University university of Rhode Island shall have unique measures consistent with
its purpose, role, scope, and mission. The board shall provide faculty and students an opportunity
to provide input on the development of performance measures.
     (1) The performance-based measures shall include, but not be limited to, the following
metrics:
     (i) The number and percentage, including growth in relation to enrollment and prior years
of bachelor's degrees awarded to first-time, full-time students within four (4) years and six (6)
years, including summer graduates;
     (ii) The number of degrees awarded that are tied to Rhode Island's high demand, high-wage
employment opportunities consistent with the institution's mission;
     (iii) One metric that applies only to the university, in consultation with the president, which
shall consider faculty, staff, and student input; and
     (iv) Any other metrics that are deemed appropriate by the board.
     (2) Weight may be assigned to any of the aforementioned metrics to reinforce the mission
of the university, the economic needs of the state, and the socio-economic status of the students.
     (h) The board shall hold the university accountable for developing and implementing
transfer pathways for students from the Community College community college of Rhode Island
and Rhode Island College college.
     (i) The board shall supervise, coordinate, and/or authorize audits, civil and administrative
investigations, and inspections or oversight reviews, when necessary, relating to expenditure of
state or federal funds, or to any and all university programs and operations, as well as the
procurement of any supplies, services, or construction, by the university. In the course of an audit
or investigation, the board authorized auditor(s) shall review statutes and regulations of the
university and shall determine if the university is in compliance and shall make recommendations
concerning the efficiency of operations, and the effect of such statutes or regulations on internal
controls and the prevention and detection of fraud, waste, and abuse. The board authorized
auditor(s) may recommend policies or procedures that may strengthen internal controls, or assist in
the prevention or detection of fraud, waste, and abuse or mismanagement. Any audits conducted
shall be transmitted to the office of internal audit established in general law 35-7.1chapter 7.1 of
title 35.
     16-32-2.1. Additional powers of the President of the University.
     In addition to any powers granted to the president of the University university of Rhode
Island by law or regulation, and consistent with shared governance practices, in conformity with §
16-32-10, the president shall have the following additional powers and duties:
     (a) To create, and consolidate departments, divisions, programs, and courses of study
within the university with the assistance of the commissioner of postsecondary education within
and the approved role and scope of the president's authority adopted by the council on
postsecondary education pursuant to § 16-59-4 board of trustees. Any new or proposed eliminations
of departments, divisions, programs, or courses of study that are outside the role and scope
approved by the council board shall require the review and approval of the council on
postsecondary education board.
     (b) To adopt a budget for the university and submit it to the council on postsecondary
education board of trustees for approval.
     (c) To be responsible for the general management of property of the university.
     (d) To recommend to the council on postsecondary education, after consultation with the
commissioner of postsecondary education board of trustees, tables of organization for the
university.
     (e) To submit to the office of postsecondary commissioner board of trustees and to compile
and analyze the following information for presentation to the council on postsecondary education
and the board of education board annually by May 1st the following:
     (1) A detailed departmental breakdown of all faculty members employed at the university
by rank (including all professors, associate professors, assistant professors, lecturers, and
instructors) and tenure (tenured and non-tenured, and other) and by race (African American,
Hispanic, Native American, and Asian) and gender.
     (2) A detailed report on current student enrollments for each class at the university by race
and gender, by academic department, and by outreach program (e.g. talent development),
guaranteed admissions program, and the current levels of funding and staff support for each of
these programs.
     (3) A report on the current status of the African and Afro-American studies programs at
the university and a five (5) year budgetary history of the programs along with projections for
budgetary support for the next two (2) years.
     (4)(3)(4) A plan for recruitment of African American and Hispanic faculty into tenure track
positions at the university with specific reference to and planned involvement with the New
England higher education's minority faculty recruitment and development plan.
     (5)(4)(5) Copies of the report shall be furnished to the council of postsecondary education
and the board of education board of trustees.
     (f) To assist the board of trustees in preparation and maintenance of a three-(3) year (3)
strategic funding plan for the university; to assist the board in the preparation and presentation
annually to the state budget officer in accordance with § 35-3-4 of a total university budget.
     (g) To monitor, publish, and report to the board of trustees the level of performance on all
metrics of the universities set forth in § 16-32-2 and in accordance with this chapter. The president
shall revise the metrics at a time when performance has reached a level pre-defined by the board.
Future metrics may further goals identified by the board, the board of education, and the governor's
workforce board, and the purpose and mission of the university. The university shall publish its
performance on all of its associated metrics prescribed in this chapter on its website.
     16-32-5. Authority over experiment station.
     The board of governors for higher education board of trustees shall have authority over the
experiment station of the university located in the town of South Kingstown.
     16-32-9. Annual appropriations.
     (a) The general assembly shall annually appropriate any sum as it may deem sufficient for
the purpose of defraying the expenses of the university, the appropriation to be expended under the
direction of the trustees and officers of the university. The state controller is authorized and directed
to draw his or her orders upon the general treasurer for the payment of the appropriations or so
much of the sums that are necessary for the purposes appropriated, upon the receipt by him or her
of proper vouchers as the board of trustees may by rule provide. The board shall receive, review,
and adjust the budget for the university and present the budget under the requirements of § 35-3-4.
     (b) Any tuition or fee increase schedules in effect for the university shall be received by
the board of trustees for allocation for the fiscal year for which state appropriations are made to the
board by the general assembly; provided that no further increases may be made by the board for
the year for which appropriations are made.
     (c) All housing, dining, and other auxiliary facilities at the university shall be self-
supporting and no funds shall be appropriated by the general assembly to pay operating expenses,
including principal and interest on debt services, and overhead expenses for the facilities. Any debt
service costs on general obligation bonds presented to the voters in November 2000 and November
2004 or appropriated funds from the Rhode Island Capital Plan Fund capital plan fund or the
housing auxiliaries at the University university of Rhode Island shall not be subject to this self-
supporting requirement in order to provide funds for the building construction and rehabilitation
program.
     (d) The additional costs to achieve self-supporting status shall be by the implementation of
a fee schedule of all housing, dining, and other auxiliary facilities, including but not limited to,
operating expenses, principal, and interest on debt services, and overhead expenses.
     (e) Notwithstanding paragraphs subsections (a) and (c) of this section or any provisions of
this title 16, to the extent necessary to comply with the provisions of any outstanding bonds issued
by the Rhode Island Health and Educational Building Corporation health and educational
building corporation or outstanding Lease Certificates of Participation lease certificates of
participation, in either case, issued for the benefit of the University university of Rhode Island,
the Community College community college of Rhode Island, and/or Rhode Island College college,
to the extent necessary to comply with the provisions of any such bonds or certificates of
participation, the general assembly shall annually appropriate any such sums it deems necessary
from educational and general revenues (including, but not limited to tuition) and auxiliary
enterprise revenues derived from the University university of Rhode Island, the Community
College community college of Rhode Island and Rhode Island College college, to be allocated by
the council on postsecondary education or by the board of trustees, as appropriate, in accordance
with the terms of the contracts with such bondholders or certificate holders.
     16-32-10. Award of degrees -- Curriculum and government.
     The board of trustees, with the approval of the president and a committee of the faculty of
the university, shall award academic degrees and diplomas and confer honors in the same manner
as is customary in American colleges. It shall also be the duty of the president and a committee of
the faculty, with the approval of the board of governors for higher education board of trustees, to
arrange courses of study conforming to all acts of Congress, and prescribe any qualifications for
the admission of students and any rules of study, exercise, discipline, and government as the
president and committee may deem proper.
     16-32-11. Power to guarantee loans.
     The board of governors for higher education board of trustees is authorized and empowered
to carry out the provisions of §§ 16-32-12 through 16-32-14 in regard to the guaranty of loans made
to societies and students at the university.
     16-32-12. Acquisition of land -- Guaranty of loans to societies of students.
     The board of governors for higher education board of trustees is authorized and empowered
on behalf of the University university of Rhode Island to acquire land and also to guarantee in the
name of the state approved loans made to societies of students at the university, for the purchase or
construction, upon lands owned by the university, of society houses which shall serve as student
dormitories. Any loans approved, upon default, shall become state obligations in the same manner
as any state bond.
     16-32-15. Assumption of defaulted obligations -- Lien on property.
     Whenever default is made on the part of a society in the payment of loans guaranteed under
the provisions of § 16-32-12, or any part of them, the board of governors for higher education board
of trustees is authorized to assume the obligation and to make required payments on principal and
interest from any of the appropriations available for the University university of Rhode Island. In
the event of a default, in cases where that board assumes the obligation of a society, the state shall
have a lien subject to any mortgages or encumbrances existing at the time on any and all property
of the society. The lien may be released after the reimbursement to the state of all payments made
on behalf of the society, plus accrued interest.
     16-32-25. Establishment of college of pharmacy fund.
     All money received pursuant to the provisions of chapter 3644 of the Public Laws of 1956
shall be deemed to be trust funds to be held by the general treasurer or by the University university
of Rhode Island Foundation foundation, as provided in § 16-32-26, in a special fund the income
of which shall be made available to the board of governors for higher education board of trustees
to be applied by it solely for use as scholarship grants in the field of pharmacy and allied sciences,
in any manner and under any conditions as the board of governors trustees for higher education
may determine. The board of governors trustees for higher education is authorized and empowered,
from time to time, as occasion may require, to draw on the general treasurer or on the University
university of Rhode Island Foundation foundation, for the annual income of the fund, or so much
of this amount as may be necessary, to carry out this objective.
     16-32-26. Management of college of pharmacy fund.
     (a) The general treasurer shall have the care and management of the fund with full power
to regulate the custody and safekeeping of all money and evidences of property belonging to the
fund. The treasurer shall deposit, subject to his or her order, to the use of this fund, all dividends,
interest, or income arising from it, in any bank or banks, trust company or trust companies, in which
funds of the state may be lawfully kept. The treasurer may invest and reinvest, in his or her
discretion, the money in the fund at any time and the dividends, interest, and income in any
securities or investments in which the deposits in savings banks and participation deposits in banks
and trust companies may be legally invested. The treasurer may change and vary the investments
from time to time, and he or she may sell and dispose of any investments made, when necessary to
meet the draft of the board of governors for higher education board of trustees as provided in § 16-
32-25.
     (b) The general treasurer shall, upon the order of the governor to do so, transfer to the
University university of Rhode Island Foundation foundation created by act of the general
assembly at its January 1957 session all money and evidences of property comprising the fund, and
then his or her duties with respect to the fund shall cease, and the foundation shall after this hold
and administer the fund with all the powers and subject to all the duties imposed upon it by the act
of the general assembly with respect to other funds held by the foundation; provided, that the fund
shall be held by the foundation as a special fund and shall not be mingled with other funds held by
the foundation, and the net income of the fund shall be devoted exclusively to the object specified
in § 16-32-25.
     SECTION 4. Sections 16-32.1-2 and 16-32.1-8 of the General Laws in Chapter 16-32.1
entitled "The University of Rhode Island Research Foundation Act [See Title 16 Chapter 97 - The
Rhode Island Board of Education Act]" are hereby amended to read as follows:
     16-32.1-2. Creation and powers.
     (a) There is hereby authorized, created and established a public corporation having a legal
existence distinct from the state and not constituting a department of state government, to be known
as the University university of Rhode Island Research Foundation research foundation, with such
powers as are set forth in this chapter, for the purposes of the development of scientific research,
technology, commercialization of intellectual property and such other purposes as may be
necessary to develop, promote and enhance scientific research and technology at the University
university of Rhode Island.
     (b) The research foundation is authorized, created and established for the benefit of the
University university of Rhode Island and shall be organized exclusively for charitable,
educational and scientific purposes of the University university of Rhode Island within the
meaning of § 501(c)(3) of the Internal Revenue Code with the following powers and purposes:
     (1) To aid and assist the University university of Rhode Island in the establishment,
development and fostering of scientific research and technology which will further the learning
opportunities, programs, services and enterprises of the University university and of the state of
Rhode Island;
     (2) To assist in providing research programs at the University university of Rhode Island
which will provide for the advancement of education and educational programs at the University
university of Rhode Island and which will provide for opportunities to individuals for learning and
training in subjects useful to the individual and beneficial to the community;
     (3) To promote, encourage and foster the education and training services, scientific
investigations, technology development and technology commercialization at the University
university of Rhode Island;
     (4) To pursue, obtain and protect intellectual property rights (including patents, trademarks,
tangible materials and copyrights) in and to all valuable intellectual property flowing from or
belonging to the University university of Rhode Island and to administer such intellectual property
in conformity with applicable state and federal laws;
     (5) To carry on any other lawful purpose within the meaning of § 501(c)(3) of the Internal
Revenue Code in connection with its purposes.
     (c) The research foundation and its corporate existence shall continue until terminated by
law or until the corporation shall cease entirely and continuously to conduct or be involved in any
business or transactions in furtherance of its purposes. Upon termination of the research foundation
and its corporate existence, all of its rights, assets and properties shall pass to and be vested in the
board of governors for higher education board of trustees for the benefit of the University
university of Rhode Island.
     16-32.1-8. Annual report and audit.
     The research foundation shall submit to the board of governors for higher education board
of trustees an audited report of its activities for the preceding fiscal year. The report shall set forth
a complete operating and financial statement covering the research foundation operations during
the preceding fiscal year. The research foundation shall cause an independent audit of its books and
accounts to be made at least once each fiscal year.
     SECTION 5. Chapter 16-32 of the General Laws entitled "University of Rhode Island [See
Title 16 Chapter 97 - The Rhode Island Board of Education Act]" is hereby amended by adding
thereto the following sections:
     16-32-2.2. Appointment and removal of the board of trustees.
     (a) There is hereby established a board of trustees for the University university of Rhode
Island consisting of seventeen (17) members. The governor shall appoint the members, with the
advice and consent of the senate, to serve on the board of trustees, until the expiration of their term
and their successor is appointed. In making these appointments the governor shall give due
consideration to recommendations from the president of the University university of Rhode Island
and at least three (3) of those members appointed by the governor shall be residents of the State of
Rhode Island, at least one of those members shall be selected from a list of names of at least five
(5) individuals submitted by the speaker of the house of representatives, and at least one of those
members shall be selected from a list of names of at least five (5) individuals submitted by the
president of the senate. In addition, the president of the University university of Rhode Island shall
appoint one faculty member and one student member who shall be a full-time student in good
standing at the university and who shall both serve in a non-voting, ex officio capacity for a single
two (2) year term. The chair of the board of education and the chair of the council on postsecondary
education shall serve in a non-voting, ex-officio capacity on the board of trustees. Six (6) of the
members initially appointed pursuant to this section shall serve terms of three (3) years; seven (7)
members initially appointed pursuant to this section shall serve terms of two (2) years, including
the member appointed from the list submitted by the speaker of the house of representatives and
the member appointed from the list submitted by the president of the senate; and, four (4) members
initially appointed pursuant to this section shall serve terms of one year. Thirteen (13) voting
members of the board shall constitute a quorum and the vote of a majority of those present and
voting shall be required for action.
     (b) After the initial terms of appointment have expired, the governor shall appoint nine (9)
members with the advice and consent of the senate to serve as members of the board of trustees
with two (2) members appointed for a term of three (3) years; with two (2) members appointed for
a term of two (2) years, including the member appointed from the list submitted by the speaker of
the house of representatives and the member appointed from the list submitted by the president of
the senate; and with two (2) members appointed for a term of one year and shall be eligible to be
reappointed to a term of two (2) years. In making these appointments the governor shall give due
consideration to recommendations from the president of the University university of Rhode Island
and at least three (3) of those members appointed by the governor shall be residents of the State
state of Rhode Island, at least one of those members shall be selected from a list of names of at
least five (5) individuals submitted by the speaker of the house of representatives, and at least one
of those members shall be selected from a list of names of at least five (5) individuals submitted by
the president of the senate. The remaining eight (8) voting members shall be self-perpetuating
members appointed by the board pursuant to rules adopted by the board regarding the nomination
and appointment of members and shall serve terms as defined by the board pursuant to the adopted
rules and be eligible for reappointment. In making these appointments the board shall give due
consideration to recommendations from the president of the University university of Rhode Island.
     (c) A majority of the board shall elect the chair of the board from among the seventeen (17)
voting board members pursuant to rules and regulations adopted by the board establishing the
procedure for electing a chair.
     (d) Public members of the board shall be removable by the appointing authority of the
member for cause only, and removal solely for partisan or personal reasons unrelated to capacity
or fitness for the office shall be unlawful. No removal shall be made for any cause except after ten
(10) days' notice in writing of specific charges, with opportunity for the member to be present in
person and with counsel at a public hearing before the appointing authority, to introduce witnesses
and documentary evidence in his or her own defense, and to confront and cross-examine adversary
witnesses; and appeal shall lie to the superior court from the governor's determination.
     16-32-32. Exemption from provisions of administrative procedures act.
     The provisions of the administrative procedures act, chapter 35 of title 42, shall not apply
to this chapter.
     16-32-33. Receipts from sources other than appropriations.
     (a) Notwithstanding any general laws to the contrary, all receipts from all sources other
than state appropriations shall not be deposited into the general fund of the state, but shall be
deposited by the general treasurer of the state into a restricted account for the benefit of the board
of trustees, and shall be paid out by the treasurer upon the order of the board, without the necessity
of appropriation or re-appropriation by the general assembly.
     (b) The board of trustees shall ensure that the university has a structure in place to prohibit
the university from accepting funds that would interfere with or restrict academic freedom at the
university. Nothing contained in this subsection shall be construed in a way as to prohibit a donor
from earmarking funds for a particular purpose or use, including, but not limited to, research,
scholarships, construction, or development.
     16-32-34. Fiscal accounts -- Receipts -- Petty cash funds.
     (a) The treasurer of the University university of Rhode Island, as appointed by the board
of trustees, shall:
     (1) Keep an accurate account of his or her receipts and expenditures, which shall be audited
by the state controller; and
     (2) Turn over to the general treasurer at monthly intervals all sums of money received by
him or her during the preceding month which shall be credited to the proper accounts and funds by
the general treasurer.
     (b) The state controller shall establish an imprest fund or petty cash fund for the use of the
treasurer of the university for expenditures of any nature as may be approved by the state controller.
     16-32-35. Audit of expenditures.
     The pre-audit of all expenditures under authority of the board by the state controller
provided for in § 35-6-1 shall be purely ministerial, concerned only with the legality of the
expenditure and the availability of the funds, and in no event shall the state controller interpose his
or her judgment regarding the wisdom or expediency of any item or items of expenditure.
     16-32-36. Freedom from budget and lease control by other agencies.
     In order that the board of trustees may control the personnel and equipment of the
university in the interest of educational efficiency, the board and the university are exempt from
the provisions of § 35-3-1(a)(5) relating to the employment of personnel, and from any provision
of § 42-20-8 which that relates to the director of administration.
     16-32-37. Applicability of merit system -- Teacher certification -- List of positions
transferable to classified service.
     (a) The appointment, promotion, salaries, tenure, and dismissal of administrative,
instructional, and research employees, and secretarial employees not exceeding ten (10) in number,
and armed university police officers shall not be subject in any manner or degree to control by the
state personnel administrator or by any officer or board other than the board of trustees. The
certification of teachers at the University university of Rhode Island is abolished, except for
teachers who elect to come or remain under it.
     (b) All positions that are exempt from the merit system law, chapter 4 of title 36, which
that become vacant or that are to be established, must be forwarded to the state personnel
administrator, who shall determine whether the position(s) in question shall remain in the board of
trustees non-classified service or be established in the classified service of the state.
     (c) No position presently in the classified service of the state subject to the merit system
law, chapter 4 of title 36, shall be changed or modified so as to establish the position in the board
of trustees non-classified service.
     (d) Faculty positions, presidents, vice presidents, deans, assistant deans, and student
employees of the university shall not be covered by the preceding provisions and shall remain in
the non-classified service of the board.
     16-32-38. Permanent status for non-classified employees.
     All non-classified employees of the board of trustees who shall have twenty (20) years, not
necessarily consecutive, of service credit, these credits having been earned in either the classified,
non-classified, or unclassified service or any combination of these, shall be deemed to have
acquired full status in their positions as the status is defined by § 36-4-59 with the base entry date
prior to August 8, 1996; provided, that this provision shall not apply to faculty employed by the
board nor shall it apply to non-classified employees who have acquired tenure as faculty.
     16-32-39. Longevity payments -- Non-classified employees.
     (a) The non-classified employees of the board of trustees, except for faculty employees and
except for non-classified employees already receiving longevity increases, shall be entitled to a
longevity payment in the amount of five percent (5%) of base salary after ten (10) years of service
and increasing to a total of ten percent (10%) of base salary after twenty (20) years of service. The
provisions of this section will apply only to employees with a pay grade under nineteen (19). The
longevity payments shall not be included in base salary.
     (b) The board of trustees is authorized to promulgate regulations implementing the
provisions of this section.
     (c) Beginning on July 1, 2011, notwithstanding any rule, regulation, or provision of the
public laws or general laws to the contrary, there shall be no further longevity increases for
employees of the board of trustees; provided, however, for employees with longevity provisions
pursuant to a collective bargaining agreement in effect on June 1, 2011, longevity increases shall
cease beginning on July 1, 2011, or beginning upon the expiration of the applicable collective
bargaining agreement, whichever occurs later. To the extent an employee has previously accrued
longevity payments, the amount of the longevity payment earned by the employee for the last pay
period in June, 2011, shall be added to the employee's base salary as of June 30, 2011, or in the
case of an employee with longevity provisions pursuant to a collective bargaining agreement in
effect on June 1, 2011, the amount of the longevity payment earned by the employee for the latter
of the last pay period in June or the last pay period prior to the expiration of the applicable collective
bargaining agreement shall be added to the employee's base salary as of June 30, 2011, or upon the
expiration of the applicable collective bargaining agreement, whichever occurs later.
     16-32-40. Appointment of campus police.
     (a) The board of trustees may appoint one or more persons who may act as police officers
upon the property and highways of the university subject to the control of the board and upon the
streets and highways immediately adjacent to those lands. The campus police officers shall protect
the property of the university,; suppress nuisances and disturbances and breaches of the peace,; and
enforce laws and regulations for the preservation of good order. They shall have the same powers
and authority as that conferred upon municipal police officers, including the power to arrest persons
for violations of state criminal statutes or for violations of city or town ordinances of the city or
town in which the institution is located. They shall be required to attend and successfully complete
the municipal police training academy before they shall be allowed to carry firearms. Additionally,
any campus police officer observing the violation of any rule or regulation of the board adopted
pursuant to this chapter, including, but not limited to, parking and traffic regulations, may issue a
summons in the manner and form set forth in §§ 31-27-12 or § 31-41.1-1 returnable to the district
court, the police court of the city or town where the violation occurs, or the traffic tribunal as
provided by law.
     (b) Notwithstanding any other provision of law, all fines and penalties recovered for
violation of rules and regulations made under authority of this section shall be accounted for by the
appropriate authority, which shall forward all fines or penalties for nonmoving traffic violations to
the general treasurer for use by the college or university on whose campus the citation or violation
was issued in accordance with § 16-32-27.
     16-32-41. Conflicts of interest.
     No member of the board of trustees shall be employed in any position under the jurisdiction
of the board, nor contract in any manner for any purpose with the board; nor shall the board
purchase, sell, or lease any land, property, or supplies from or to any firm or business association
of which any member of the board is owner, part owner, or officer or director. No person related
by consanguinity or affinity in the first degree to any member of the board shall be employed in
any capacity under the board's jurisdiction.
     16-32-42. Existing Bond Debt.
     The board of trustees is authorized to take all actions, and execute and deliver all
agreements or instruments, necessary or convenient for the board to assume all of the obligations
on behalf of, and in replacement of, or jointly with the council on postsecondary education under
outstanding bonds issued by the Rhode Island Health and Educational Building Corporation Rhode
Island health and educational building corporation or outstanding Lease Certificates of
Participation lease certificates of participation, in either case, issued for the benefit of the
University university of Rhode Island, the Community College community college of Rhode
Island, and/or Rhode Island College college as may be necessary to ensure, among other items, that
the university continues to meet its obligations under such bonds or certificates.
     SECTION 6. Sections 16-59-1, 16-59-6, 16-59-9, 16-59-13, 16-59-18, 16-59-19, 16-59-22
and 16-59-26 of the General Laws in Chapter 16-59 entitled "Council on Postsecondary Education
[See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" are hereby amended to read
as follows:
     16-59-1. Council on Postsecondary Education established.
     (a) There is created a council on postsecondary education, sometimes referred to as the
"council,", which shall be and is constituted a public corporation, empowered to sue and be sued in
its own name, and to exercise all the powers, in addition to those specifically enumerated in this
chapter, usually appertaining to public corporations entrusted with control of postsecondary
educational institutions and functions. Upon its organization, the council shall be invested with the
legal title (in trust for the state) to all property, real and personal, now owned by and/or under the
control or in custody of the board of regents for education for the use of the University of Rhode
Island, Rhode Island College college, Community College the community college of Rhode Island
and the system of community colleges of Rhode Island, including all departments, divisions, and
branches of these.
     (b) The council is empowered to hold and operate the property in trust for the state; to
acquire, hold, and dispose of the property and other like property as deemed necessary for the
execution of its corporate purposes. The council is made successor to all powers, rights, duties, and
privileges formerly belonging to the board of regents for education pertaining to postsecondary
education and the board of governors for higher education.
     (c) The council shall be the employer of record for higher education Rhode Island College
college and the Community College community college of Rhode Island and the office of
postsecondary education. It shall retain all authority formerly vested in the board of education
regarding the employment of faculty and staff at the public higher education institutions Rhode
Island College college and the Community College community college of Rhode Island.
     (d) The council shall be the governing body for the Rhode Island division of higher
education assistance and shall retain all authority formerly vested in the higher education assistance
authority board of directors pursuant to § 16-57-7; however, any debts, liabilities, or obligations of
the council that result from its status as such governing body shall be payable solely from the
revenues or assets of reserve funds set forth and established by the prior Rhode Island higher
education assistance authority and/or the Rhode Island division of higher education assistance
created pursuant to chapter 57 of this title, and not from any assets or property held by the council
on public higher education pursuant to this chapter.
     (e) The council on postsecondary education shall be the employer of record for the division
of higher education assistance.
     (f) The council on postsecondary education, simultaneous with the transfer of authority to
the University university of Rhode Island board of trustees pursuant to § 16-32-2, shall enter into
a sublease with the University university of Rhode Island board of trustees for the space the
University university currently occupies at the Rhode Island Nursing Education Center nursing
education center in Providence, Rhode Island, such sublease being coterminous with the Lease
lease and incorporating the same terms, conditions and space allocations currently in effect under
the Lease lease, and R.I. Public Law 2014, Chapter 145, Article 4, Section 8 P.L. 2014, ch. 145,
art. 4, § 8, and that certain Memorandum of Understanding memorandum of understanding
dated January 7, 2017, among the Rhode Island Office of Postsecondary Commissioner office of
postsecondary commissioner, the University university of Rhode Island and Rhode Island
College college.
     (g) The council is empowered to enter into contracts and agreements with the board of
trustees for the University university of Rhode Island and/or the department of administration
related to public higher education employee benefits, including, but not limited to, retirement
benefits, health, dental, vision and life insurance, disability insurance, workers’ compensation, and
tuition waivers to maximize the state’s and council’s purchasing and investment portfolio and
educational opportunities for the benefit of its employees.
     16-59-6. Commissioner of postsecondary education.
     The council on postsecondary education, with approval of the board, shall appoint a
commissioner of postsecondary education, who shall serve at the pleasure of the council, provided
that his or her initial engagement by the council shall be for a period of not more than three (3)
years. For the purpose of appointing, retaining, or dismissing a commissioner of postsecondary
education, the governor shall serve as an additional voting member of the council. The position of
commissioner shall be in the unclassified service of the state and he or she shall serve as the chief
executive officer of the council on postsecondary education, the chief administrative officer of the
office of postsecondary commissioner, and the executive director of the division of higher
education assistance. The commissioner of postsecondary education shall have any duties that are
defined in this section and in this title and other additional duties as may be determined by the
council, and shall perform any other duties as may be vested in him or her by law. In addition to
these duties and general supervision of the office of postsecondary commissioner and the
appointment of the several officers and employees of the office, it shall be the duty of the
commissioner of postsecondary education:
     (1) To develop and implement a systematic program of information gathering, processing,
and analysis addressed to every aspect of higher education in the state, especially as that
information relates to current and future educational needs.
     (2) To prepare a strategic plan for higher education in the state aligned with the goals of
the board of education's strategic plan; to coordinate the goals and objectives of the higher public
education sector with the goals of the council on elementary and secondary education and activities
of the independent higher education sector where feasible.
     (3) To communicate with, and seek the advice of those concerned with, and affected by the
board of education's and council's determinations.
     (4) To implement broad policy as it pertains to the goals and objectives established by the
board of education and council on postsecondary education; to promote better coordination
between higher public education in the state, independent higher education in the state as provided
in subdivision subsection (10) of this section, and pre k-12 education; to assist in the preparation
of the budget for public higher education; and to be responsible, upon direction of the council, for
the allocation of appropriations, the acquisition, holding, disposition of property.
     (5) To be responsible for the coordination of the various higher educational functions of
the state so that maximum efficiency and economy can be achieved.
     (6) To assist the board of education in preparation and maintenance of a five-year (5)
strategic funding plan for higher education; to assist the council in the preparation and presentation
annually to the state budget officer in accordance with § 35-3-4 of a total, public higher educational
budget.
     (7) To recommend to the council on postsecondary education, after consultation with the
presidents, a clear and definitive mission for each public institution of higher learning college.
     (8) To annually recommend to the council on postsecondary education, after consultation
with the presidents, the creation, abolition, retention, or consolidation of departments, divisions,
programs, and courses of study within the public colleges and universities to eliminate unnecessary
duplication in public higher education, to address the future needs of public higher education in the
state, and to advance proposals recommended by the presidents of the public colleges and
universities pursuant to §§ 16-32-2.1, 16-33-2.1 and 16-33.1-2.1.
     (9) To supervise the operations of the office of postsecondary commissioner, including the
division of higher education assistance, and any other additional duties and responsibilities that
may be assigned by the council.
     (10) To perform the duties vested in the council with relation to independent higher
educational institutions within the state under the terms of chapter 40 of this title and any other
laws that affect independent higher education in the state.
     (11) To be responsible for the administration of policies, rules, and regulations of the
council on postsecondary education with relation to the entire field of higher education within the
state, not specifically granted to any other department, board, or agency and not incompatible with
law.
     (12) To prepare standard accounting procedures for public higher education and all public
colleges and universities.
     (13) To carry out the policies and directives of the board of education and the council on
postsecondary education through the office of postsecondary commissioner and through utilization
of the resources of the public institutions of higher learning colleges.
     (14) To enter into interstate reciprocity agreements regarding the provision of
postsecondary distance education; to administer such agreements; to approve or disapprove
applications to voluntarily participate in such agreements from postsecondary institutions that have
their principal place of business in Rhode Island; and to establish annual fees, with the approval of
the council on postsecondary education, for aforesaid applications to participate in an interstate
postsecondary distance education reciprocity agreement.
     (15) To the extent necessary for participation, and to the extent required and stated in any
distance learning reciprocity agreement, to implement procedures to address complaints received
from out-of-state students in connection with, or related to, any Rhode Island postsecondary
institution, public or private, that has been approved to participate in said reciprocity agreement.
     (16) To exercise all powers and duties of the division of higher education assistance as set
forth under the terms of chapter 57 of this title.
     16-59-9. Educational budget and appropriations.
     (a) The general assembly shall annually appropriate any sums it deems necessary for
support and maintenance of higher education in the state and the state controller is authorized and
directed to draw his or her orders upon the general treasurer for the payment of the appropriations
or so much of the sums that are necessary for the purposes appropriated, upon the receipt by him
or her of proper vouchers as the council on postsecondary education may by rule provide. The
council shall receive, review, and adjust the budget for the office of postsecondary commissioner
and present the budget as part of the budget for higher education under the requirements of § 35-3-
4.
     (b) The office of postsecondary commissioner and the institutions of public higher
education shall establish working capital accounts.
     (c) Any tuition or fee increase schedules in effect for the institutions of public higher
education shall be received by the council on postsecondary education for allocation for the fiscal
year for which state appropriations are made to the council by the general assembly; provided that
no further increases may be made by the board of education or the council on postsecondary
education for the year for which appropriations are made. Except that these provisions shall not
apply to the revenues of housing, dining, and other auxiliary facilities at the university of Rhode
Island, Rhode Island college, and the community colleges including student fees as described in
P.L. 1962, ch. 257 pledged to secure indebtedness issued at any time pursuant to P.L. 1962, ch. 257
as amended.
     (d) All housing, dining, and other auxiliary facilities at all public institutions of higher
learning shall be self-supporting and no funds shall be appropriated by the general assembly to pay
operating expenses, including principal and interest on debt services, and overhead expenses for
the facilities, with the exception of the mandatory fees covered by the Rhode Island promise
scholarship program as established by § 16-107-3. Any debt-service costs on general obligation
bonds presented to the voters in November 2000 and November 2004 or appropriated funds from
the Rhode Island capital plan for the housing auxiliaries at the university of Rhode Island and
Rhode Island college shall not be subject to this self-supporting requirement in order to provide
funds for the building construction and rehabilitation program. The institutions of public higher
education will establish policies and procedures that enhance the opportunity for auxiliary facilities
to be self-supporting, including that all faculty provide timely and accurate copies of booklists for
required textbooks to the public higher educational institution's bookstore.
     (e) The additional costs to achieve self-supporting status shall be by the implementation of
a fee schedule of all housing, dining, and other auxiliary facilities, including but not limited to,
operating expenses, principal, and interest on debt services, and overhead expenses.
     (f) The board of education is authorized to establish a restricted-receipt account for the
Higher Education and Industry Centers higher education and industry centers established
throughout the state to collect lease payments from occupying companies, and fees from room and
service rentals, to support the operation and maintenance of the facilities. All such revenues shall
be deposited to the restricted-receipt account.
     (g) Notwithstanding paragraphs subsections (a) and (d) of this section or any provisions
of this title 16, to the extent necessary to comply with the provisions of any outstanding bonds
issued by the Rhode Island Health and Educational Building Corporation health and educational
building corporation or outstanding Lease Certificates of Participation lease certificates of
participation, in either case, issued for the benefit of the University university of Rhode Island,
the Community College community college of Rhode Island, and/or Rhode Island College college,
to the extent necessary to comply with the provisions of any such bonds or certificates of
participation, the general assembly shall annually appropriate any such sums it deems necessary
from educational and general revenues (including, but not limited to, tuition) and auxiliary
enterprise revenues derived from the University university of Rhode Island, the Community
College community College college of Rhode Island and Rhode Island College college, to be
allocated by the council on postsecondary education or by the board of trustees of the University
university of Rhode Island, as appropriate, in accordance with the terms of the contracts with such
bondholders or certificate holders.
     16-59-13. Definitions.
     Where in this chapter the phrase "public colleges" or "public institutions of higher learning"
or "public tax supported institutions of higher learning" or words of similar import are used they
shall be taken to mean the University of Rhode Island, Rhode Island College college, and the
Community College community college of Rhode Island, or any other of these public colleges,
public institutions of higher learning, or public tax supported institutions of higher learning other
than the University university of Rhode Island, which may be created, individually or collectively,
as appropriate.
     16-59-18. Receipts from sources other than appropriations.
     (a) All receipts from all sources other than state appropriations shall not be covered into
the general fund of the state, but shall be kept by the general treasurer of the state in a separate fund
for the board of governors for higher education, and shall be paid out by the treasurer upon the
order of the board, without the necessity of appropriation or re-appropriation by the general
assembly.
     (b) The board of governors of higher education council on postsecondary education shall
ensure that state colleges and universities have a structure in place to prohibit these colleges and
universities from accepting funds that would interfere with or restrict academic freedom at the state
colleges and universities. Nothing contained in this subsection shall be construed in a way as to
prohibit a donor from earmarking funds for a particular purpose or use including but not limited to
research, scholarships, construction, or development.
     16-59-19. Fiscal accounts -- Receipts -- Petty cash funds.
     The treasurer of the University of Rhode Island, and the treasurer of the Rhode Island
College college to be appointed by the board of governors for higher education council on
postsecondary education, shall each keep an accurate account of his or her receipts and
expenditures which shall be audited by the state controller in accordance with law. The treasurer
of each college shall turn over to the general treasurer at monthly intervals all sums of money
received by him or her during the preceding month which shall be credited to the proper accounts
and funds by the general treasurer. The state controller shall establish an imprest fund or petty cash
fund for the use of the treasurer of each of the colleges for expenditures of any nature as may be
approved by the state controller.
     16-59-22. Applicability of merit system -- Teacher certification -- List of positions
transferable to classified service.
     (a) The appointment, promotion, salaries, tenure, and dismissal of administrative,
instructional, and research employees, and secretarial employees not exceeding ten (10) in number,
and armed college and university police officers of the state colleges shall not be subject in any
manner or degree to control by the personnel administrator or by any officer or board other than
the council on postsecondary education. The certification of teachers at the University of Rhode
Island is abolished, except for teachers who elect to come or remain under it.
     (b) All positions that are exempt from the merit system law, chapter 4 of title 36, which
become vacant or that are to be established, must be forwarded to the personnel administrator, who,
in consultation with the deputy assistant commissioner of education in charge of personnel and
labor relations, shall determine whether the position(s) in question shall remain in the council on
postsecondary education non-classified service or be established in the classified service of the
state.
     (c) No position presently in the classified service of the state subject to the merit system
law, chapter 4 of title 36, shall be changed or modified so as to establish the position in the council
on postsecondary education non-classified service.
     (d) Faculty positions, presidents, vice presidents, deans, assistant deans, and student
employees of the higher-education institutions shall not be covered by the preceding provisions and
shall remain in the council on postsecondary education non-classified service.
     16-59-26. The public and private partnership in education.
     (a) Purpose. The state of Rhode Island recognizes that research is a primary mission of an
institution of higher education. While carrying out its research mission, the state further recognizes
that inventions of value to the public will be made by persons working in its public institutions of
higher education. The marketing of these inventions will contribute to job creation and to the
overall economic well-being of the state of Rhode Island and the nation. It is accordingly the policy
of the state to encourage such inventors and inventions and to take appropriate steps to aid the
inventor and ensure that the public receives the benefit. In facilitating this policy, the state
recognizes the need for cooperation between governmental agencies, private industries, and the
inventors themselves.
     (b) Definitions. The following words and phrases used in § 16-59-26 this section have the
following meaning:
     (1) "Conflict of interest policies and procedures relating to research and development"
refers to policies and procedures adopted by the Rhode Island board of governors for higher
education, council on postsecondary education, or as it pertains to the University university of
Rhode Island, the board of trustees, in consultation with the Rhode Island ethics commission, and
approved by the Rhode Island ethics commission;
     (2) "Relationship" includes any interest, service, employment, gift, or other benefit or
relationship;
     (3) "Research or development" means basic or applied research or development, including:
     (i) The development or marketing of university-owned technology;
     (ii) The acquisition of services of an official or employee, by an entity for research and
development purposes;
     (iii) Participation in state economic development programs; or
     (iv) The development or marketing of any technology on the premises of a public
institution of higher education by an official or employee of the institution.
     (c) Policy.
     (1) The Rhode Island board of governors for higher education council on postsecondary
education, or as it pertains to the University university of Rhode Island, the board of trustees shall
develop conflict of interest policies and procedures based on the purposes expressed in art. 3, § 7
of the Constitution of the State of Rhode Island R.I. Const., Art. III, Sec. VII, § 36-14-1, and in
this section.
     (2) The Rhode Island board of governors for higher education council on postsecondary
education, or as it pertains to the University university of Rhode Island, the board of trustees, shall
consult with the Rhode Island ethics commission in developing these policies and procedures and
shall submit them to the Rhode Island ethics commission for approval in order to insure conformity
with the purposes expressed in art. 3, § 7 of the Constitution of the State of Rhode Island R.I.
Const., Art. III, Sec. VII, § 36-14-1, and in this section.
     (d) Policy standards. The policies and procedures adopted by the board of governors for
higher education council on postsecondary education, or as it pertains to the University
university of Rhode Island, the board of trustees under subsection (c) of this section shall:
     (1) Require disclosure of any interest in, or employment by, or other relationship with an
entity for which an exemption under this section is claimed, on a form filed with the ethics
commission and the Rhode Island board of governors council on postsecondary education for
higher education, or as it pertains to the University university of Rhode Island, the board of trustees
and maintained as a public record at the commission offices, the office of higher education, and at
the interested public institution of higher education;
     (2) Require review of all disclosures by a designated official or officials, who shall
determine what further information must be disclosed and what restrictions shall be imposed by the
Rhode Island board of governors for higher education council on postsecondary education, or as
it pertains to the University university of Rhode Island, the board of trustees to manage, reduce, or
eliminate any actual or potential conflict of interest;
     (3) Include guidelines to ensure that interests and employment for which an exemption
under this section is claimed do not improperly give an advantage to entities in which the interests
or employment are maintained, lead to misuse of institution students or employees for the benefit
of entities in which the interests or employment are maintained, or otherwise interfere with the
duties and responsibilities of the exempt official or employee;
     (4) Require approval by the president of the public institution of higher education of any
interest or employment for which an exemption is claimed under this section; and
     (5) Require approval by the Rhode Island board of governors council on postsecondary
education for higher education, or as it pertains to the University university of Rhode Island, the
board of trustees.
     (e) Relationship permitted. An official or employee at a public institution of higher
education may have a relationship, that would otherwise be prohibited by the Rhode Island Code
of Ethics in Government code of ethics in government, with an entity engaged in research or
development, or with an entity having a direct interest in the outcome of research or development,
only if the Rhode Island board of governors council on postsecondary education for higher
education, or as it pertains to the University university of Rhode Island, the board of trustees has
adopted policies and procedures in accordance with this section, and the official or employee has
complied with the policies and procedures. If the provisions of this section are not met, the official
or employee is not exempt from any relevant provisions of the Rhode Island Code of Ethics in
Government code of ethics in government.
     (f) Annual reporting. The board of governors for higher education council on
postsecondary education, or as it pertains to the University university of Rhode Island, the board
of trustees shall report annually to the governor, the president of the senate and the speaker of the
house of representatives, and the ethics commission the number of approvals granted under this
section and how the conflict of interest policies and procedures adopted pursuant to this section
have been implemented in the preceding year.
     (g) Person not eligible. An official or employee who is a president, or vice-president at a
public institution of higher education in Rhode Island may not receive an exemption under this
section.
     (h) Ethics commission review. The board of governors for higher education council on
postsecondary education, or as it pertains to the University university of Rhode Island, the board
of trustees, shall promptly notify the ethics commission in writing of any exemption that is granted
under this section. If the ethics commission disagrees with an exemption that is granted pursuant
to this section and the conflict of interest policies and procedures relating to research and
development adopted by the board of governors for higher education council on postsecondary
education, within thirty (30) calendar days after the receipt of the notice described in this section,
the ethics commission shall notify the board of governors for higher education council on
postsecondary education reason for its concern. Upon receipt of such notice from the ethics
commission, the board of governors for higher education council on postsecondary education, or
as it pertains to the University university of Rhode Island, the board of trustees shall cause the
matter to be re-examined at an open and public meeting pursuant to § 42-46-1 et seq.
     SECTION 7. Section 16-59-28 of the General Laws in Chapter 16-59 entitled "Council on
Postsecondary Education [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" is
hereby repealed.
     16-59-28. "Bachelors Degree in Three" program.
     (a) The Rhode Island board of governors for higher education shall establish and administer
the "Bachelors Degree in Three" program. The board shall:
     (1) Establish guidelines for the "Bachelors Degree in Three" program.
     (2) Collaborate with the board of regents for elementary and secondary education to
establish a seamless credit transfer system for high school students and other policies that might
facilitate student participation in such a program.
     (3) Identify and propose any necessary changes to academic courses of study, support
services, financial aid, and other policies and resources at the University of Rhode Island, Rhode
Island College and the Community College of Rhode Island to ensure greater opportunities for
students to complete bachelors degree programs in three (3) years.
     (4) Identify potential costs of the program, including costs to students, to the institutions,
and to school districts, identify possible sources of external grant funding for a pilot program, and
propose a funding structure for the program.
     (5) Investigate accreditation issues and federal financial aid rules that may be implicated
by the program.
     (6) Identify units at the University of Rhode Island, Rhode Island College, and the
Community College of Rhode Island that will assume administrative responsibility for the program.
     (7) Design, undertake and evaluate a three (3) year pilot program that will serve as a model
for full-scale implementation.
     (b) The board shall present an initial report, recommendations and timeline to the general
assembly on or by February 1, 2011, and the pilot program will begin with the fall academic
semester of 2011.
     SECTION 8. Sections 16-97-7 and 16-97-1 of the General Laws in Chapter 16-97 entitled
"The Rhode Island Board of Education Act" are hereby amended to read as follows:
     16-97-1. Rhode Island board of education established.
     (a) Effective January 1, 2013, there is created a board of education that shall be responsible
for and shall exercise the purposes, powers, and duties of, this chapter and chapters 59 and 60 of
this title. The board is responsible for the coordination of education from pre-k through higher
education and shall set goals and policies for the effective coordination of these public education
systems.
     (b) The board of education shall consist of seventeen (17) public members appointed by
the governor with the advice and consent of the senate, eight (8) of whom shall be designated to
serve on the council for on elementary and secondary education and eight (8) of whom shall be
designated to serve on the council for on postsecondary education. The chairperson of the board
shall serve as a member of both councils. Six (6) of the members initially appointed pursuant to
this section shall serve terms of three (3) years; six (6) members initially appointed pursuant to this
section shall serve terms of two (2) years; and, four (4) members initially appointed pursuant to this
section shall serve terms of one year. To the greatest extent possible, the initial staggered terms
shall be equitably divided among the councils so as to protect against sudden changes in
membership and reversal of policy. Thereafter, all members appointed pursuant to this section shall
serve terms of three (3) years. At the expiration of their terms, members shall remain and continue
in their official capacity until their successor is appointed and qualified. Members shall not be
appointed to more than three (3), successive three-year (3) terms each; provided that the chair of
the board shall have no term and shall serve at the pleasure of the governor. Any vacancy among
the members of the board shall be filled by appointment of the governor for the remainder of the
unexpired term. In the selection and appointment of the board, the governor shall seek persons who
best serve the needs of the entire state. No person shall be eligible for appointment to the board
after the effective date of this act unless a resident of this state. Members of the board shall not be
compensated for their service in attending board or council meetings.
     (c) The chair of the Governor's Workforce Board workforce board, or designee,; and the
chair of the Rhode Island Commerce Corporation commerce corporation, or designee,; and the
chair of the University university of Rhode Island board of trustees, or designee, shall serve as
non-voting, ex-officio members of the board.
     (d) The governor shall select from the appointed members a chairperson and vice
chairperson. A quorum shall consist of nine (9) members of the board. A majority vote of those
present shall be required for action.
     (e) Except as provided by subsection (b) of this section, members of the board shall be
removable by the governor for cause only. Removal solely for partisan or personal reasons
unrelated to performance, capacity, or fitness for the office shall be unlawful.
     (f) The statutory responsibilities of the department of elementary and secondary education,
the commissioner of elementary and secondary education, and the commissioner of postsecondary
education shall remain unchanged.
     (g) The chair of the board of education shall consult with the chairs of the council on
elementary and secondary education, the council on postsecondary education, the commissioner of
elementary and secondary education, and the commissioner of postsecondary education in
developing agendas, goals, policies, and strategic plans for the board.
     16-97-7. Tuition waivers -- Disclosure as a prerequisite to receipt.
     Notwithstanding any other provision of law, no employee of the state board of education,
or the board of trustees for the University university of Rhode Island, his or her spouse, domestic
partner or dependent, shall receive a tuition waiver as a result of employment status with the state
board of education, or the board of trustees for the University university of Rhode Island without
first consenting to the public disclosure of the existence and amount of the waiver. This section
shall apply to any tuition waivers, including, but not limited to, any such waiver at the Community
College community college of Rhode Island, Rhode Island College college, and/or the University
university of Rhode Island.
     SECTION 9. Section 16-101-1 of the General Laws in Chapter 16-101 entitled "Academic
Credit For Military Service" is hereby amended to read as follows:
     16-101-1. Academic credit for military service.
     (a) State public higher education institutions in the state shall honor the military training,
experience, correspondence courses, and occupations of an individual who has served in the
military or armed forces of the United States by allowing academic credits that meet the standards
of the American Council on Education or equivalent standards for awarding academic credit, if the
award of the educational credit is based upon the institution's admission standards and its role,
scope, and mission. The board of education shall adopt policies or regulations requiring each
institution to award educational credits to a student enrolled in the institution, based upon the
student's military training or service when academically appropriate.
     (b) The board of trustees for the University university of Rhode Island, in consultation
with the president and the faculty senate, shall adopt policies or regulations requiring the award of
educational credits to a student enrolled at the university, based upon the student's military training
or service when academically appropriate.
     SECTION 10. Sections 16-106-4 and 16-106-6 of the General Laws in Chapter 16-106
entitled "The Performance Incentive Funding Act of 2016" are hereby amended to read as follows:
     16-106-4. Performance incentive funding -- Rhode Island College and University of
Rhode Island. Performance incentive funding -- Rhode Island College.
     (a) Beginning in FY 2018, funding for Rhode Island College college ("RIC") and the
University of Rhode Island ("URI") shall include a performance-based component utilizing all
additional allocations of otherwise unrestricted, higher-education general revenue greater than the
base amount received pursuant to the FY 2016 budget as enacted, of total unrestricted state higher-
education funding.
     (b) Data on which to base performance measures as described in subsection (c) shall be
defined by the commissioner of postsecondary education, in consultation with the council on
postsecondary education. Measures shall begin to be collected in FY 2017.
     These measures may include and incorporate outcomes or goals from multiple, previous
years. The lack of information from previous years, however, will not affect the use of performance-
based measures.
     (c) Rhode Island College college and the University of Rhode Island shall each have unique
measures consistent with each institution's its purpose, role, scope, and mission. The performance-
based measures shall include the following metrics:
     (1) The number and percentage, including growth in relation to enrollment and prior years
of bachelor's degrees awarded to first-time, full-time students within four (4) years and six (6)
years, including summer graduates;
     (2) The number of degrees awarded that are tied to Rhode Island's high demand, high-wage
employment opportunities consistent with the institution's mission;
     (3) One measure that applies only to RIC, as agreed to by the commissioner of
postsecondary education and the president of RIC, who shall consider faculty, staff, and student
input; and one measure that applies only to URI, as agreed to by the commissioner of postsecondary
education and the president of URI, who shall consider faculty, staff and student input; and
     (4) Any other measures that are deemed appropriate by the council of on postsecondary
education.
     (d) Weight may be assigned to any of the aforementioned metrics to either or both of the
institutions to reinforce the missions mission of RIC and URI, respectively, the economic needs of
the state, and the socio-economic status of the students. The commissioner may consider the
institutions' institution's improvements in said metrics when determining whether it has satisfied
the annual measure despite not reaching the overall goal.
     (e) The commissioner shall provide faculty and students an opportunity to provide input
on the development of performance measures.
     16-106-6. Accountability -- Authority to revise and transparency.
     (a) The commissioner of postsecondary education shall monitor, publish, and report to the
council on postsecondary education the level of performance on all metrics identified in accordance
with this chapter for the Community College community college of Rhode Island, and Rhode
Island College college, and the University of Rhode Island.
     (b) The commissioner of postsecondary education, in consultation with the council of on
postsecondary education, shall revise the metrics at a time when performance has reached a pre-
defined level. Future metrics shall further goals identified by the board of education and the
governor's workforce board, and the applicable purpose and mission of the institution of higher
education to which they apply.
     (c) Each public higher-education institution shall publish its performance on all of its
associated metrics prescribed in this chapter on its website.
     SECTION 11. Section 35-4-23.1 of the General Laws in Chapter 35-4 entitled "State
Funds" is hereby amended to read as follows:
     35-4-23.1. Indirect cost recoveries by state agencies.
     All state agencies shall apply for recovery of indirect costs when recovery is permissible
under federal statute and grant regulations. All funds received for indirect costs recovery shall be
turned over to the general treasurer and shall be placed in a restricted account in each agency for
the specific purposes designated through the annual budget process. The agency shall, through the
annual budget process, report to the general assembly the estimated amount of federal indirect cost
recoveries for the next fiscal year, together with the intended use of the funds. Nothing contained
in this section, however, shall conflict with the powers and duties granted the board of governors
for higher education council on postsecondary education and the board of regents for the council
on elementary and secondary education in chapters 59 and 60 of title 16, and the board of trustees
for the University university of Rhode Island as provided in chapter 32 of title 16.
     SECTION 12. Section 37-2-7 of the General Laws in Chapter 37-2 entitled "State
Purchases" is hereby amended to read as follows:
     37-2-7. Definitions.
     The words defined in this section have the meanings set forth below whenever they appear
in this chapter, unless the context in which they are used clearly requires a different meaning or a
different definition is prescribed for a particular section, group of sections, or provision:
     (1) "Business" means any corporation, partnership, individual, sole proprietorship, joint
stock company, joint venture, or any other legal entity through which business is conducted.
     (2) "Change order" means a written authorization signed by the purchasing agent directing
or allowing the contractor to proceed with changes, alterations, or modifications to the terms,
conditions, or scope of work on a previously awarded contract.
     (3) "Chief purchasing officer" shall mean: (i) for For a state agency, the director of the
department of administration, and (ii) for For a public agency, the executive director or the chief
operational officer of the agency.
     (4) "Construction" means the process of building, altering, repairing, improving, or
demolishing any public structures or building, or other public improvements of any kind to any
public real property. It does not include the routine maintenance or repair of existing structures,
buildings, or real property performed by salaried employees of the state of Rhode Island in the
usual course of their jobs.
     (5) "Contract" means all types of agreements, including grants and orders, for the purchase
or disposal of supplies, services, construction, or any other item. It includes awards; contracts of a
fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the issuance of
job or task orders; leases; letter contracts; purchase orders; and construction management contracts.
It also includes supplemental agreements with respect to any of the foregoing. "Contract" does not
include labor contracts with employees of state agencies.
     (6) "Contract amendment" means any written alteration in the specifications, delivery
point, rate of delivery, contract period, price, quantity, or other contract provisions of any existing
contract, whether accomplished by unilateral action in accordance with a contract provision, or by
mutual action of the parties to the contract. It includes bilateral actions, such as supplemental
agreements, and unilateral actions, such as change orders, administrative changes, notices of
termination, and notices of the exercise of a contract option.
     (7) "Contractor" means any person having a contract with a governmental body.
     (8) "Data" means recorded information, regardless of form or characteristic.
     (9) "Designee" means a duly authorized representative of a person holding a superior
position.
     (10) "Employee" means an individual drawing a salary from a state governmental entity.
     (11) "State governmental entity" means any entity created as a legislative body or a public
or state agency by the general assembly or constitution of this state, except for municipal, regional,
or county governmental entities.
     (12) "May" means permissive.
     (13) "Negotiation" means contracting by either the method set forth in §§ 37-2-19, 37-2-
20, or 37-2-21.
     (14) "Person" means any business, individual, organization, or group of individuals.
     (15) "Procurement" means the purchasing, buying, renting, leasing, or otherwise obtaining
of any supplies, services, or construction. It also includes all functions that pertain to the obtaining
of any supply, service, or construction item, including a description of requirements, selection and
solicitation of sources, preparation, and award of contract, and all phases of contract administration.
     (16) "Public agency" shall mean the Rhode Island industrial recreational building authority,
the Rhode Island commerce corporation, the Rhode Island industrial facilities corporation, the
Rhode Island refunding bond authority, the Rhode Island housing and mortgage finance
corporation, the Rhode Island resource recovery corporation, the Rhode Island public transit
authority, the Rhode Island student loan authority, the Howard development corporation, the water
resources board corporate, the Rhode Island health and education building corporation, the Rhode
Island turnpike and bridge authority, the Blackstone Valley district commission, the Narragansett
Bay water quality management district commission, the Rhode Island telecommunications
authority, the convention center authority, the Channel 36 foundation, the Rhode Island lottery
commission their successors and assigns, any other body corporate and politic which has been or
will be created or established within this state excepting cities and towns, the University university
of Rhode Island board of trustees for all purchases which that are funded by restricted, sponsored,
or auxiliary monies, and the council on postsecondary education for all purchases which that are
funded by restricted, sponsored, or auxiliary monies.
     (17) "Purchase request" or "purchase requisition" means that document whereby a using
agency requests that a contract be entered into to obtain goods and/or services for a specified need,
and may include, but is not limited to, the technical description of the requested item, delivery
requirements, transportation mode request, criteria for evaluation of proposals, and/or preparation
of suggested sources of supply, and information supplied for the making of any written
determination and finding required by § 37-2-6.
     (18) "Purchasing agency" means any state governmental entity which is authorized by this
chapter, its implementing regulations, or by way of delegation from the chief purchasing officer to
contract on its own behalf rather than through the central contracting authority of the chief
purchasing officer.
     (19) "Purchasing agent" means any person authorized by a governmental entity in
accordance with procedures prescribed by regulations, to enter into and administer contracts and
make written determinations and findings with respect to contracts. The term also includes an
authorized representative acting within the limits of authority. "Purchasing agent" also means the
person appointed in accordance with § 37-2-1.
     (20) "Services" means the rendering, by a contractor, of its time and effort rather than the
furnishing of a specific end product, other than reports which that are merely incidental to the
required performance of services. "Services" does not include labor contracts with employees of
state agencies.
     (21) "Shall" means imperative.
     (22) "State" means the state of Rhode Island and any of its departments or agencies and
public agencies.
     (23) "Supplemental agreement" means any contract modification which is accomplished
by the mutual action of the parties.
     (24) "Supplies" means all property, including, but not limited to, leases of real property,
printing, and insurance, except land or permanent interest in land.
     (25) "Using agency" means any state governmental entity which utilizes any supplies,
services, or construction purchased under this chapter.
     (26) As used in § 37-2-59, "architect" or "engineer" services means those professional
services within the scope of practice of architecture, professional engineering, or registered land
surveying pertaining to construction, as defined by the laws of this state. "Consultant" means any
person with whom the state and/or a public agency has a contract which contract provides for the
person to give direction or information as regards a particular area of knowledge in which the
person is a specialist and/or has expertise.
     (27) For purposes of §§ 37-2-62 -- 37-2-70, "directors" means those members of a public
agency appointed pursuant to a statute who comprise the governing authority of the board,
commission, authority, and/or corporation.
     (28) "State agency" means any department, commission, council, board, bureau,
committee, institution, or other governmental entity of the executive or judicial branch of this state
not otherwise established as a body corporate and politic, and includes, without limitation, the
council on postsecondary education except for purchases which are funded by restricted, sponsored,
or auxiliary moneys, the University university of Rhode Island board of trustees for all purchases
which are funded by restricted, sponsored, or auxiliary monies, and the council on elementary and
secondary education.
     (29) "Governmental entity" means any department, commission, council, board, bureau,
committee, institution, legislative body, agency, or government corporation of the executive,
legislative, or judicial branches of state, federal, and/or local governments.
     (30) "Construction management at-risk" or "construction management at-risk services" or
"construction management at-risk delivery method" is a construction method wherein a
construction manager at-risk provides a range of preconstruction services and construction
management services which may include cost estimation and consultation regarding the design of
the building project, the preparation and coordination of bid packages, scheduling, cost control, and
value engineering, acting as the general contractor during the construction, detailing the trade
contractor scope of work, holding the trade contracts and other contracts, evaluating trade
contractors and subcontractors, and providing management and construction services, all at a
guaranteed maximum price, which shall represent the maximum amount to be paid by the using
agency for the building project, including the cost of work, the general conditions, and the fee
payable to the construction management at-risk firm.
     (31) "Construction manager at-risk" or "construction management at-risk firm" is a person
or business experienced in construction that has the ability to evaluate and to implement drawings
and specifications as they affect time, cost and quality of construction and the ability to coordinate
and deliver the construction of the project within a guaranteed maximum price, which shall
represent the maximum amount to be paid by the using agency for the building project, including
the cost of the work, the general conditions, and the fee payable to the construction management
at-risk firm. The construction manager at-risk provides consultation services during the
preconstruction and construction phases of the project. The project engineer, architect, or owner's
program manager may not serve as the construction manager at-risk.
     (32) "Owner's program manager" shall be an entity engaged to provide project management
services on behalf of a state agency for the construction and supervision of the construction of a
building project. The owner's program manager acts as the owner's agent in all aspects of the
construction project, including, but not limited to, architectural programming, planning, design,
construction, and the selection and procurement of an appropriate construction delivery method.
The owner's program manager shall have at least seven (7) years experience in the construction and
supervision of construction of buildings of similar size and complexity. The owner's program
manager shall not have been employed during the preceding year by the design firm, the
construction firm, and/or the subcontractors associated with the project.
     SECTION 13. Section 16-56-6 of the General Laws in Chapter 16-56 entitled
"Postsecondary Student Financial Assistance" is hereby amended to read as follows:
     16-56-6. Need-based grants.
     (a) Amount of funds allocated. The commissioner of postsecondary education shall allocate
annually the appropriation for need-based scholarships and grants. Of the total amount appropriated
for need-based scholarship and grants, the lesser of twenty percent (20%) or two million dollars
($2,000,000) one million five hundred thousand dollars ($1,500,000) shall be distributed to
qualified students attending participating, independent, non-profit, higher education institutions in
Rhode Island. The remainder of funds shall be limited to public higher education institutions in
Rhode Island including payments made pursuant to § 16-100-3(c). As part of the annual budget
submission, the office of postsecondary commissioner shall include a plan of how the need-based
scholarship and grant funds will be allocated to each public institution receiving funds pursuant to
this chapter and how the funds will be distributed to students attending independent, non-profit
institutions.
     (b) Eligibility of individuals. Eligibility for need-based grants and scholarships shall be
determined by the office of the postsecondary commissioner.
     (c) Number and terms of awards. The number of awards to be granted in any one fiscal
year shall be contingent upon the funds allocated to this section.
     SECTION 14. Section 16-105-7 of the General Laws in Chapter 16-105 entitled "School
Building Authority" is hereby amended to read as follows:
     16-105-7. Expenses incurred by the school building authority.
     In order to provide for one-time or limited expenses of the school building authority under
this chapter, the Rhode Island health and educational building corporation shall provide funding
from the school building authority capital fund, fees generated from the origination of municipal
bonds and other financing vehicles used for school construction, and its own reserves. The school
building authority shall, by October 1 of each year, report to the governor and the chairs of the
senate and house finance committees, the senate fiscal advisor, and the house fiscal advisor the
amount sought for expenses for the next fiscal year.
     There is also hereby established a restricted-receipt account within the budget of the
department of elementary and secondary education entitled "school construction services,", to be
financed by the Rhode Island health and educational building corporation's sub-allotments of fees
generated from the origination of municipal bonds and other financing vehicles used for school
construction and its own reserves. Effective July 1, 2018, this account shall be utilized for the
express purpose of supporting personnel expenditures directly related to the administration of the
school construction aid program. Expenditure of all restricted receipts accepted by the department
shall be subject to the annual appropriation process and approval by the general assembly.
     SECTION 15. Section 45-38.2-3 of the General Laws in Chapter 45-38.2 entitled "School
Building Authority Capital Fund" is hereby amended to read as follows:
     45-38.2-3. Administration.
     (a) The corporation shall have all the powers necessary or incidental to carry out and
effectuate the purposes and provisions of this chapter including:
     (1) To receive and disburse such funds from the state as may be available for the purpose
of the fund subject to the provisions of this chapter;
     (2) To make and enter into binding commitments to provide financial assistance to cities,
towns, and local education agencies from amounts on deposit in the fund;
     (3) To enter into binding commitments to provide subsidy assistance for loans and city,
town, and local education agency obligations from amounts on deposit in the fund;
     (4) To levy administrative fees on cities, towns, and local education agencies as necessary
to effectuate the provisions of this chapter; provided that the fee total amount of all such fees does
not exceed one tenth of one percent (0.001) of the original principal amount;
     (5) To engage the services of third-party vendors to provide professional services;
     (6) To establish one or more accounts within the fund; and
     (7) Such other authority as granted to the corporation under chapter 38.1 of this title.
     (b) Subject to the provisions of this chapter, and to any agreements with the holders of any
bonds of the corporation or any trustee therefor, amounts held by the corporation for the account
of the fund shall be applied by the corporation, either by direct expenditure, disbursement, or
transfer to one or more other funds and accounts held by the corporation or a trustee under a trust
agreement or trust indenture entered into by the corporation with respect to bonds or notes issued
by the corporation under this chapter or by a holder of bonds or notes issued by the corporation
under this chapter, either alone or with other funds of the corporation, to the following purposes:
     (1) To provide financial assistance to cities, towns, and local education agencies to finance
costs of approved projects, and to refinance the costs of the projects, subject to such terms and
conditions, if any, as are determined by the department and/or the corporation;
     (2) To fund reserves for bonds of the corporation and to purchase insurance and pay the
premiums therefor, and pay fees and expenses of letters or lines of credit and costs of
reimbursement to the issuers thereof for any payments made thereon or on any insurance, and to
otherwise provide security for, and a source of payment for obligations of the corporation, by
pledge, lien, assignment, or otherwise as provided in chapter 38.1 of this title;
     (3) To pay or provide for subsidy assistance as determined by the school building authority;
     (4) To provide a reserve for, or to otherwise secure, amounts payable by cities, towns, and
local education agencies on loans and city, town, and local education agency obligations
outstanding in the event of default thereof; amounts in any account in the fund may be applied to
defaults on loans outstanding to the city, town, or local education agency for which the account
was established and, on a parity basis with all other accounts, to defaults on any loans or city, town,
or local education agency obligations outstanding; and
     (5) To provide a reserve for, or to otherwise secure, by pledge, lien, assignment, or
otherwise as provided in chapter 38.1 of this title, any bonds or notes of the corporation issued
under this chapter.
     (c) The repayment obligations of the city, town, or local education agency for loans shall
be in accordance with its eligibility for state aid for school housing as set forth in §§ 16-7-39, 16-
77.1-5, and 16-105-3(19).
     (d) In addition to other remedies of the corporation under any loan or financing agreement
or otherwise provided by law, the corporation may also recover from a city, town, or local education
agency, in an action in superior court, any amount due the corporation together with any other
actual damages the corporation shall have sustained from the failure or refusal of the city, town, or
local education agency to make the payments or abide by the terms of the loan or financing
agreement.
     SECTION 16. Sections 2 through 12 shall take effect upon on February 1, 2020. The
remaining sections of this article shall take effect upon passage.