§ 16-105-5. Procedure for school building authority capital fund project approval.
(a) The department of elementary and secondary education shall promulgate rules and regulations that establish the process through which a city, town, or LEA may submit an application for school building authority capital funding. The department may also prescribe, without limitation, forms for financial assistance applications. All rules and regulations promulgated pursuant to this chapter shall be promulgated in accordance with the provisions of chapter 35 of title 42, and shall apply to any projects submitted or reviewed on or after May 1, 2015.
(b) As part of the budget process, the governor shall specify the amount included in his/her budget recommendation that the school building authority may commit to new projects in the ensuing fiscal year, as well as any funding pursuant to § 16-105-7. Subsequently, the general assembly shall authorize the maximum amount that the school building authority may commit to new projects in the ensuing fiscal year.
(c) Each LEA shall develop, implement, and maintain a comprehensive asset protection plan for every school building, not only buildings for which housing aid or school building authority capital funds are sought or received. Only LEAs that have adequate asset protection plans in place to maintain their school facilities are eligible for funding from the school building authority capital fund. LEAs must annually provide asset protection information to the department of elementary and secondary education. If an LEA fails to provide asset protection information in a fiscal year, it is not eligible to receive school building authority capital funds the next fiscal year.
(d) Upon issuance of the project priority list, the Rhode Island health and educational building corporation shall award financial assistance to cities, towns, and LEAs for approved projects. The corporation may decline to award financial assistance to an approved project which the corporation determines will have a substantial adverse effect on the interests of holders of bonds or other indebtedness of the corporation or the interests of other participants in the financial assistance program, or for good and sufficient cause affecting the finances of the corporation. All financial assistance shall be made pursuant to a loan or financing agreement between the corporation and the city, town or LEA, acting by and through the officer or officers, board, committee, or other body authorized by law, or otherwise its chief executive officer, according to terms and conditions as determined by the corporation, and each loan shall be evidenced and secured by the issue to the corporation of city or town obligations in principal amount, bearing interest at the rate or rates specified in the applicable loan or financing agreement, and shall otherwise bear such terms and conditions as authorized by this chapter and/or the loan or financing agreement.
(P.L. 2015, ch. 141, art. 9, § 2.)