The bill amends Chapter 16-8 of the General Laws by introducing a new section, 16-8-9.1, which pertains to the school lunch program, specifically addressing fees, transparency, and payment protections. It prohibits meal service collection providers from imposing fees that exceed the actual costs of collecting or processing payments for school meals, capping such fees at a maximum of 2% of the transaction amount. Fees for any other purpose, including profit, convenience, or administrative gain, are prohibited. All funds collected for school meals must be applied primarily to the cost of meal service and the limited allowable collection costs.

The bill requires the Rhode Island Department of Education (RIDE) to ensure that all public schools and school districts provide at least one no-fee payment method for parents, guardians, or students to make payments for school meals and any other school-related fees managed through a payment platform. No-fee options may include in-person payments, mailed payments, electronic transfers without vendor-imposed fees, or any other method approved by RIDE. RIDE is also tasked with promulgating rules and regulations to establish uniform statewide standards for no-fee payment access and ensuring that local education agencies notify parents and guardians of the available no-fee payment options.

Additionally, the bill outlines disclosure requirements for payment processing platforms used by schools, mandating that they clearly and conspicuously disclose to users whether any user fees will be charged, the amount and type of each fee, and whether a no-fee payment option is available and how to access it. Disclosure must occur prior to the completion of any transaction and cannot be obscured, minimized, or pre-checked. Districts must ensure that contracts with vendors comply with these disclosure requirements, and any contract entered into after the effective date of this section that fails to comply shall be voidable at the option of the district. RIDE is responsible for creating rules and regulations necessary to implement and enforce these provisions, including vendor compliance, accessibility standards, and uniform disclosure requirements. The act will take effect upon passage.