Title 45
Towns and Cities

Chapter 38.2
School Building Authority Capital Fund

R.I. Gen. Laws § 45-38.2-4

§ 45-38.2-4. Payment of state funds.

(a) Subject to the provisions of subsection (b), upon the written request of the corporation, the general treasurer shall pay to the corporation, from time to time, from the proceeds of any bonds or notes issued by the state for the purposes of this chapter or funds otherwise lawfully payable to the corporation for the purposes of this chapter, such amounts as shall have been appropriated or lawfully designated for the fund. All amounts so paid shall be credited to the fund in addition to any other amounts credited or expected to be credited to the fund.

(b) The corporation and the state may enter into, execute, and deliver one or more agreements setting forth or otherwise determining the terms, conditions, and procedures for, and the amount, time, and manner of payment of, all amounts available from the state to the corporation under this section.

(c) The corporation, per order of the school building authority capital fund, is authorized to grant a district or municipality its state share of an approved project cost, pursuant to §§ 16-7-39 and 16-77.1-5. Construction pay-as-you-go grants received from the school building authority capital fund shall not be considered a form of indebtedness subject to the provisions of § 16-7-44.

(d)(1) Notwithstanding the provisions of §§ 45-12-19 and 45-12-20, and notwithstanding city or town charter provisions to the contrary, prior to July 1, 2016, no voter approval shall be required for loans in any amount made to a city or town for the local education agency’s share of total project costs.

(2) Notwithstanding the provisions of §§ 45-12-19 and 45-12-20, and notwithstanding city or town charter provisions to the contrary, on or after July 1, 2016, up to five hundred thousand dollars ($500,000) may be loaned to a city or town for the local education agency’s share of total project costs without the requirement of voter approval.

(e)(1) Funds from the two hundred fifty million ($250,000,000) in general obligation bonds, if approved on the November 2018 ballot, shall first be used to support the state share of foundational housing aid and shall be offered to local education agencies on a pay-as-you-go basis and not as a reimbursement of debt service for previously completed projects.

(2) Funds to support the state share of foundational housing aid in a given year on a pay-as-you-go basis shall be offered proportionately to local education agencies based on the total state share of foundational housing aid awarded to projects in that year.

(3) Any excess funds may be transferred to the school building authority capital fund in an amount not to exceed five percent (5%) of any amount of bonds issued in a given year.

(f) Notwithstanding any provision to the contrary, the term of any bond, capital lease, or other financing instrument shall not exceed the useful life of the project being financed.

(g) In accordance with §§ 45-10-5.1 and 45-10-6, the auditor general shall give guidance to municipalities and school districts on the uniform financial reporting of construction debt authorized and issued, and on funding received from the state within ninety (90) days of the passage of this article.

History of Section.
P.L. 2015, ch. 141, art. 9, § 4; P.L. 2016, ch. 53, § 1; P.L. 2018, ch. 47, art. 9, § 4.