The bill amends Section 16-7-41.1 of the General Laws in Chapter 16-7, which pertains to the eligibility for reimbursement of school construction projects. It specifies that school districts, rather than municipalities, are eligible to apply for project approval under the necessity of school construction process, with certain exceptions for municipalities that finance school facilities through the Rhode Island health and educational building corporation. The bill outlines conditions for project qualification, approval validity, and reimbursement eligibility. It also includes provisions for a moratorium on project approvals, with exceptions for health and safety reasons, and the ineligibility of certain projects approved prior to 2007. Additionally, the bill mandates the development of cost containment strategies and an annual application timeline for new construction applications, as well as the inclusion of community involvement in the remediation of contaminated sites for school use.

The bill introduces several new requirements and conditions effective from July 1, 2019, including the need for prime contractors to receive prequalification for projects over ten million dollars, the inclusion of an owner’s program manager and a commissioning agent for projects exceeding one million five hundred thousand dollars, and the eligibility of temporary housing and environmental site remediation as reimbursable expenses under specified conditions. It also stipulates that if a newly constructed school is sold within 30 years, the state is entitled to a portion of the sale proceeds. Importantly, the bill includes an insertion that increases the school housing aid ratio by five percent for projects that ensure Rhode Island-based minority business enterprises reach a minimum of twenty percent of the dollar value of the bid. The act would take effect upon passage.

Statutes affected:
237: 16-7-41.1