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 any allowed fees at a maximum of 2% of the transaction amount. Additionally, it mandates that all funds collected for school meals be primarily applied to meal service costs and any 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 other school-related fees. 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 establishing uniform statewide standards for no-fee payment access and ensuring that local education agencies notify parents and guardians of available no-fee payment options through clear, timely, and accessible communications.

Furthermore, the bill mandates that any payment processing platform, online portal, or digital collection system used by a school or school district must clearly disclose to users whether any user fees will be charged, the amount and type of each fee, and the availability of no-fee payment options prior to the completion of any transaction. Disclosure must not be obscured, minimized, or pre-checked. Districts are required to ensure that contracts with vendors comply with these disclosure requirements, with any non-compliant contracts entered into after the effective date of this section being voidable at the option of the district. RIDE is responsible for promulgating 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.