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art.013/2

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ARTICLE 13 SUBSTITUTE A AS AMENDED

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RELATING TO EDUCATION AID

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     SECTION 1. Section 16-7.1-15 of the General Laws in Chapter 16-7.1 entitled “The Paul

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W. Crowley Rhode Island Student Investment Initiative” is hereby amended to read as follows:

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     16-7.1-15. The Paul W. Crowley Rhode Island student investment initiative.

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[Effective July 1, 2010.].-- (a) Each locally or regionally operated school district shall receive as

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a base the same amount of school aid as each district received in fiscal year 1997-1998, adjusted

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to reflect the increases or decreases in aid enacted to meet the minimum and maximum funding

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levels established for FY 2000 through FY 2008. Each school district shall also receive school aid

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through each investment fund for which that district qualifies pursuant to §§ 16-7.1-8, 16-7.1-9,

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16-7.1-10, 16-7.1-11, 16-7.1-12, 16-7.1-16 and 16-7.1-19. These sums shall be in addition to the

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base amount described in this section. For FY 2009 and FY 2010, the reference year for the data

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used in the calculation of aid pursuant to § 16-7.1-8, § 16-7.1-9, § 16-7.1-10, § 16-7.1-11, § 16-

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7.1-11.1, § 16-7.1-12, § 16-7.1-16, § 16-7.1-19 and 16-77.1-2(b) shall be FY 2004. Calculation

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and distribution of education aid under §§ 16-5-31, 16-5-32, 16-7-20, 16-7-20.5, 16-7-34.2, 16-7-

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34.3, 16-24-6, 16-54-4, and 16-67-4 is hereby suspended. Provided, however, calculation and

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distribution of education aid under § 16-7.1-10 is suspended for FY 2009 and FY 2010. School

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districts may continue to maintain professional development programs and may reduce other

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education programs to achieve savings during FY 2009 and FY 2010. The funding of the

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purposes and activities of chapter 67 of this title, the Rhode Island Literacy and Dropout

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Prevention Act of 1967, shall be the same amount of the base amount of each district funded for

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that purpose in fiscal year 1997-1998. In addition each district shall expend three percent (3%) of

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its student equity and early childhood funds under the provisions of chapter 67 of this title.

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     (b) Funding for full day kindergarten programs in accordance with § 16-7.1-11.1 shall be

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in addition to funding received under this section.

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     (c) Funding distributed under §§ 16-77.1-2(b) and 16-64-1.1 shall be in addition to

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funding distributed under this section.

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     (d) For FY 2009, aid to school districts shall be reduced by the equivalent savings that are

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realized due to a reduction of payments to the teachers' retirement system. The reduction for the

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Chariho regional school district shall be prorated among the member communities. In addition,

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for FY 2009 aid to school districts shall be reduced by any amount of previously appropriated

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school housing aid determined to be ineligible for reimbursement in accordance with § 16-7-44.2.

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For FY 2009 aid shall also be reduced by the amount of projected revenue for the period

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December 1, 2008 through June 30, 2009 from the permanent school fund. The projected revenue

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shall be determined by annualizing actual earnings from the period May 12, 2008 through

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November 30, 2008. The department of elementary and secondary education shall reduce aid in

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two equal installments, payable in May and June; provided however, that East Providence shall

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receive one payment of reduced aid in May.

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     For FY 2009, aid to school districts shall include thirty eight million, three hundred

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twenty-four thousand, eight hundred twenty-two dollars ($38,324,822) from federal fiscal

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stabilization funds offset by a like reduction from general revenues. The distribution shall be in

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the same proportion as general operating aid.

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     (e) For FY 2010, aid to school districts shall be reduced by the equivalent savings that are

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realized due to a reduction of payments to the teachers' retirement system. The reduction for the

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Chariho regional school district shall be prorated among the member communities. For FY 2010,

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aid to school districts shall be reduced by thirty-three million nine hundred twenty-eight thousand

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two hundred sixteen dollars ($33,928,216) based on the school district's share of total FY 2009

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enacted education aid, including state schools and charter schools. For FY 2010, a distribution of

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stabilization funds per the American Recovery and Reinvestment Act (ARRA) totaling thirty-four

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million one hundred seven thousand one hundred ninety-five dollars ($34,107,195) shall be

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allocated to school districts proportionately based on their share of total FY 2009 enacted

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education aid, including state schools and charter schools.

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     Districts shall comply with the assurances and reporting requirements provided in the

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federal guidance for the (ARRA) allocation and by the commissioner of elementary and

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secondary education.

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     (f) There shall be an appropriation to ensure that total aid distributed to communities in

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FY 2010 under this section and §§ 16-7.1-11.1, 16-64-1.1 and 16-77.1-2(b) and excluding any FY

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2009 Stabilization reappropriations shall be as follows:

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      FY 2010 Stimulus Fiscal

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      General Revenues Stabilization Allocation

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     Barrington 1,863,090 1,629,678 128,427 170,513

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     Burrillville 12,928,167 12,220,612 681,478 948,730

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     Charlestown 1,697,49 7 1,590,767 98,918 134,864

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     Coventry 18,056,601 16,912,980 991,787 1,365,674

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     Cranston 31,662,364 29,622,695 1,752,647 2,410,080

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     Cumberland 11,829,002 11,066,294 654,948 900,586

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     East Greenwich 1,503,975 1,321,451 96,326 129,312

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     East Providence 24,199,858 23,047,872 1,328,384 1,833,360

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     Foster 1,286,565 1,208,609 69,979 96,527

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     Glocester 2,927,949 2,754,277 158,776 219,128

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     Hopkinton 5,677,786 5,323,835 308,347 425,441

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     Jamestown 398,173 356,229 26,278 35,124

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     Johnston 9,596,568 8,971,463 531,110 730,358

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     Lincoln 6,363,969 5,884,774 365,750 499,702

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     Little Compton 296,650 267,222 18,221 24,622

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     Middletown 9,532,081 8,937,990 518,598 715,319

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     Narragansett 1,167,137 1,314,267 93,727 125,872

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     Newport 10,714683 10,104,222 586,477 808,465

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     New Shoreham 64,987 50,323 5,254 6,826

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     North Kingstown 10,631,113 9,922,498 2,155 813,392

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     North Providence 12,081,507 11,311,934 661,166 911,004

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     North Smithfield 4,344,329 4,055,880 238,830 328,814

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     Pawtucket 62,176,676 58,731,451 3,311,223 4,584,707

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     Portsmouth 5,923,071 5,571,674 332,008 454,416

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     Providence 178,309,941 168,378,347 9,577,917 13,241,031

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     Richmond 5,652,344 5,300,144 305,712 422,147

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     Scituate 2,926,243 2,712,604 168,328 229,942

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     Smithfield 4,992,643 4,635,136 283,754 388,414

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     South Kingstown 9,224,287 8,575,177 521,117 714,097

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     Tiverton 5,271,861 4,923,363 293,067 402,699

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     Warwick 32,168,879 31,261,607 1,858,870 2,554,650

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     Westerly 5,771,932 5,319,551 338,071 460,458

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     West Warwick 18,738,108 17,635,159 1,009,842 1,395,236

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     Woonsocket 44,071,702 41,636,569 2,342,811 3,244,945

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     Bristol-Warren 18,761,456 17,675,687 1,009,726 1,395,455

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     Exeter-West Greenwich 6,814,331 6,378,147 374,779 515,945

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     Chariho 378,758 359,704 19,679 27,370

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     Foster-Glocester 5,194,804 4,878,574 283,077 390,339

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     Central Falls 42,507,399 40,233,714 2,167,539 3,021,611

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     In addition to the amounts listed above, the department of elementary and secondary

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education shall allocate monthly to each school district all funds received into the permanent

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school fund pursuant to § 42-61.2-7, as amended by chapter 13 of the 2008 Public Laws entitled

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"An Act Relating to State Affairs and Government", up to $14.1 million, in the same proportion

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as the aid distribution in the FY 2009 enacted appropriations act.

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     This special provision shall not limit entitlements as determined by application of other

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formula provisions in this section.

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     (g) For FY 2009 payments to charter public schools shall be reduced by the equivalent

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savings that are realized due to a reduction of payments to the teachers' retirement system. The

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reduction for district sponsored charter schools shall be incorporated in the sponsoring school

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district's aid as noted in subsection (f). Aid to charter public schools shall be reduced in the April

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quarterly payment. For FY 2009, charter public school funding is as follows:

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     Beacon Charter School 1,512,785

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     Blackstone Academy 1,469,349

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     Compass 614,485

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     Paul Cuffee 4,449,006

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     CVS Highlander 2,596,782

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     International 2,863,818

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     Kingston Hill Academy 736,784

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     Learning Community 3,669,529

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     NE Laborer's 1,508,866

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     Textron 2,361,370

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     Times 2 Academy 6,870,410

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     (h) (1) For FY 2010, payments to charter public schools shall be reduced by the

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equivalent savings that are realized due to a deferment reduction of payments to the teachers'

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retirement system. The reduction for district sponsored charter schools shall be incorporated in

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the sponsoring schools district's aid as noted in subsection (f). For FY 2010, payments to charter

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public schools shall be reduced by one million four hundred sixty-three thousand three hundred

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sixty-seven dollars ($1,463,367) based on the charter schools' share of total FY 2009 enacted

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education aid, including school districts and state schools. For FY 2010, a distribution of

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stabilization funds per the American Recovery and Reinvestment Act (ARRA) totaling one

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million four hundred seventy-one thousand eighty-seven dollars ($1,471,087) shall be allocated to

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charter public schools proportionately based on their share of total FY 2009 enacted education

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aid, including school districts and state schools.

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     (2) For FY 2010, payments to charter public schools shall be further reduced by one

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million one hundred fifty-eight thousand one dollars ($1,158,001) based on the charter schools'

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share of total FY 2010 originally enacted education aid. For FY 2010, an additional distribution

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of stabilization funds per the American Recovery and Reinvestment Act (ARRA) totaling one

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hundred ninety-seven thousand seven hundred fifty-two dollars ($197,752) shall be allocated to

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charter public schools proportionately based on their share of total FY 2010 originally enacted

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education aid.

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     (3) Public charter schools shall comply with the assurances and reporting requirements

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provided in the federal guidance for the (ARRA) allocation and by the commissioner of

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elementary and secondary education.

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     (i) There shall be deducted from the final aid payment to each school district any amounts

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owed to the state at the end of the fiscal year for transportation of the district’s students under the

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statewide transportation system established pursuant to R.I.G.L. 16-21.1-7 and 16-21.1-8.

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Districts shall receive monthly invoices summarizing the basis of the transportation fees charged.

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Any such deductions in aid shall be transferred to the statewide student transportation services

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restricted receipt account.

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     (j) The provisions of R.I.G.L. 16-26-7.1 notwithstanding, districts shall be assessed

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tuition to cover the costs of educational services that are additional to the core deaf and hard of

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hearing education program that is provided to resident students at the Rhode Island School for the

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Deaf. This tuition shall be based on a graduated tuition schedule that is based on the varying

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needs of students. The department of elementary and secondary education shall develop and

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implement the schedule. Districts shall receive monthly invoices summarizing the basis for the

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tuition charged. There shall be deducted from the final aid payment to each school district at the

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end of the fiscal year any amounts owed to the state for these additional educational services.

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     (i) (k) Children with disabilities. (1)  Based on its review of special education within the

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context of Rhode Island school reform, the general assembly recommends addressing the needs of

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all children and preventing disability through scientific research based, as described in the No

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Child Left Behind Act of 2001, Title 1, Part B, Section 1208 [20 U.S.C. § 6368], reading

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instruction and the development of Personal Literacy Programs for students in the early grades

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performing below grade level in reading and implement a system of student accountability that

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will enable the state to track individual students over time. Additionally, the department of

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elementary and secondary education must provide districts with rigorous criteria and procedures

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for identifying students with learning disabilities and speech/language impairments. Additional

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study is required of factors that influence programming for students with low incidence

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disabilities; those with disabilities that severely compromise life functions; and programming for

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students with disabilities through urban special education. Alternatives for funding special

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education require examination.

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     (2) All departments and agencies of the state shall furnish any advice and information,

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documentary and otherwise, to the general assembly and its agents that is deemed necessary or

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desirable by the study to facilitate the purposes of this section.

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      (l) For FY 2011, aid to school districts shall be reduced by the equivalent savings that are

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realized due to a reduction of payments to the teachers' retirement system. The reduction for the

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Chariho regional school district shall be prorated among the member communities. For FY 2011,

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aid to school districts shall be further reduced by twenty million four hundred ninety thousand

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one hundred thirty-seven dollars ($20,490,137) from the FY 2010 originally enacted level based

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on the school district's share of total FY 2010 originally enacted education aid, including aid to

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state schools and charter schools. For FY 2011, a distribution of federal stabilization funds made

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available through the American Recovery and Reinvestment Act (ARRA), in the amount of

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seventeen million four hundred thirty-one thousand nine hundred four dollars ($17,431,904), shall

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be allocated to school districts proportionately based on their share of total FY 2010 originally

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enacted education aid, including aid to state schools and charter schools.

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     (f) (m) There shall be an appropriation to ensure that total aid distributed to communities

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in FY 2010 2011 under this section and §§ 16-7.1-11.1, 16-64-1.1 and 16-77.1-2(b), excluding

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any FY 2009 and FY 2010 Stabilization reappropriations, shall be as follows:

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      FY 2011 Stimulus Fiscal

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      General Revenues Stabilization Allocation

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        Barrington 1,863,090 1,709,541 128,427 68,151

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        Burrillville 12,928,167 12,723,172 684,478 326,139

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        Charlestown 1,697,497 1,658,980 98,948 49,284

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        Coventry 18,056,601 17,625,624 991,787 480,946

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        Cranston 31,662,364 30,876,770 1,752,647 852,976

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        Cumberland 11,829,002 11,534,855 654,948 318,784

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        East Greenwich 1,503,975 1,277,951 96,326 49,760

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        East Providence 24,499,858 23,891,690 1,328,384 640,267

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        Foster 1,286,565 1,259,241 69,979 33,780

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        Glocester 2,927,940 2,869,462 158,776 76,538

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        Hopkinton 5,677,786 5,547,160 308,347 148,729

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        Jamestown 398,901 373,118 26,278 13,728

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        Johnston 9,596,568 9,351,204 531,110 258,452

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        Lincoln 6,363,969 6,139,669 365,750 181,008

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        Little Compton 296,650 279,301 18,221 9,269

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        Middletown 9,533,084 9,312,401 518,598 250,345

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        Narragansett 1,467,137 1,375,277 93,727 48,407

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        Newport 10,744,683 10,528,468 586,477 283,585

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        New Shoreham 64,987 53,154 5,254 2,926

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        North Kingstown 10,631,113 10,344,125 592,155 289,005

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        North Providence 12,081,507 11,787,482 661,166 320,061

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        North Smithfield 4,344,329 4,226,827 238,830 115,855

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        Pawtucket 62,176,676 61,160,994 3,311,223 1,582,330

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        Portsmouth 5,923,071 5,806,300 331,008 161,798

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        Providence 178,309,944 175,216,822 9,577,917 4,596,217

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        Richmond 5,652,344 5,522,206 305,742 147,191

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        Scituate 2,926,243 2,830,181 168,328 83,341

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        Smithfield 4,992,643 4,759,547 283,754 139,730

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        South Kingstown 9,224,287 8,942,714 521,147 255,978

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        Tiverton 5,271,861 5,132,318 293,067 142,905

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        Warwick 33,468,879 32,587,668 1,858,870 906,046

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        Westerly 5,774,932 5,552,661 338,074 168,643

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        West Warwick 18,738,108 18,369,914 1,009,842 485,338

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        Woonsocket 44,074,702 43,237,525 2,342,811 1,118,508

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        Bristol-Warren 18,764,456 18,411,506 1,009,726 484,936

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        Exeter-West Greenwich 6,814,331 6,527,123 374,779 181,826

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        Chariho 378,758 374,376 19,679 9,291

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        Foster-Glocester 5,194,804 5,083,179 283,077 136,766

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        Central Falls 42,507,399 41,852,580 2,167,539 1,013,065

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     In addition to the amounts listed above, the department of elementary and secondary

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education shall allocate monthly to each school district all funds received into the permanent

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school fund pursuant to § 42-61.2-7, as amended by chapter 13 of the 2008 Public Laws entitled

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"An Act Relating to State Affairs and Government", up to $14.1 million, in the same proportion

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as the aid distribution in the FY 2009 enacted appropriations act.

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     This special provision shall not limit entitlements as determined by application of other

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formula provisions in this section.

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       (g) (n) For FY 2009 payments to charter public schools shall be reduced by the

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equivalent savings that are realized due to a reduction of payments to the teachers' retirement

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system. The reduction for district sponsored charter schools shall be incorporated in the

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sponsoring school district's aid as noted in subsection (f) (g). Aid to charter public schools shall

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be reduced in the April quarterly payment. For FY 2009, charter public school funding is as

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follows:

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     Beacon Charter School 1,512,785

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     Blackstone Academy 1,469,349

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     Compass 614,485

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     Paul Cuffee 4,449,006

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     CVS Highlander 2,596,782

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     International 2,863,818

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     Kingston Hill Academy 736,784

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     Learning Community 3,669,529

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     NE Laborer's 1,508,866

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     Textron 2,361,370

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     Times 2 Academy 6,870,410

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     (o) For FY 2011, payments to charter public schools shall be reduced by the equivalent

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savings that are realized due to a reduction of payments to the teachers' retirement system. The

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reduction for district sponsored charter schools shall be incorporated in the sponsoring schools

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district's aid as noted in subsection (g). For FY 2011, payments to charter public schools shall be

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further reduced by one million seventy-six thousand nine hundred forty-one dollars ($1,076,941)

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from the FY 2010 originally enacted education aid based on the charter schools' share of total FY

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2010 enacted education aid, including aid to school districts and state schools. For FY 2011, a

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distribution of federal stabilization funds made available through the American Recovery and

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Reinvestment Act (ARRA), in the amount of one million forty-eight thousand six hundred dollars

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($1,048,600), shall be allocated to charter public schools proportionately based on their share of

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total FY 2010 originally enacted education aid, including aid to school districts and state schools.

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     SECTION 2. Section 16-7-23 of the General Laws in Chapter 16-7 entitled "Foundation

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Level School Support" is hereby amended to read as follows:

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     16-7-23. Community requirements -- Adequate minimum budget provision. -- (a)

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The school committee's budget provisions of each community for current expenditures in each

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budget year shall provide for an amount from all sources sufficient to support the basic program

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and all other approved programs shared by the state. Each community shall contribute local funds

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to its school committee in an amount not less than its local contribution for schools in the

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previous fiscal year. Provided, that for the fiscal years 2010 and 2011 each community shall

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contribute to its school committee in an amount not less than ninety-five percent (95.0%) of its

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local contribution for schools for the fiscal year 2009. Calculation of the annual local contribution

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shall not include Medicaid revenues received by the municipality or district pursuant to chapter 8

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of title 40. A community which has a decrease in enrollment may compute maintenance of effort

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on a per pupil rather than on an aggregate basis when determining its local contribution;

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furthermore, a community which experiences a nonrecurring expenditure for its schools may

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deduct the nonrecurring expenditure in computing its maintenance of effort. The deduction of

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nonrecurring expenditures shall be with the approval of the commissioner. The courts of this state

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shall enforce this section by writ of mandamus.

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      (b) Whenever any state funds are appropriated for educational purposes, the funds shall

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be used for educational purposes only and all state funds appropriated for educational purposes

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must be used to supplement any and all money allocated by a city or town for educational

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purposes and, in no event, shall state funds be used to supplant, directly or indirectly, any money

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allocated by a city or town for educational purposes. All state funds shall be appropriated by the

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municipality to the school committee for educational purposes in the same fiscal year in which

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they are appropriated at the state level even if the municipality has already adopted a school

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budget. All state and local funds unexpended by the end of the fiscal year of appropriation shall

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remain a surplus of the school committee and shall not revert to the municipality. Any surplus of

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state or local funds appropriated for educational purposes shall not in any respect affect the

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requirement that each community contribute local funds in an amount not less than its local

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contribution for schools in the previous fiscal year, subject to subsection (a) of this section, and

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shall not in any event be deducted from the amount of the local appropriation required to meet the

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maintenance of effort provision in any given year.

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     SECTION 3. Sections 16-7-41 and 16-7-45 of the General Laws in Chapter 16-7 entitled

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“Foundation Level School Support” are hereby amended to read as follows:

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     16-7-41.  Computation of school housing aid. -- (a) In each fiscal year the state shall

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pay to each community a grant to be applied to the cost of school housing equal to the following:

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     The cost of each new school housing project certified to the commissioner of elementary

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and secondary education not later than July 15 of the fiscal year shall be divided by the actual

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number of years of the bond issued by the local community or the Rhode Island Health and

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Educational Building Corporation in support of the specific project, times the school housing aid

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ratio; and provided, further, with respect to costs of new school projects financed with proceeds

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of bonds issued by the local community or the Rhode Island Health and Educational Building

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Corporation in support of the specific project, the amount of the school housing aid payable in

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each fiscal year shall not exceed the amount arrived at by multiplying the principal and interest of

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the bonds payable in each fiscal year by the school housing aid ratio and which principal and

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interest amount over the life of the bonds, shall, in no event, exceed the costs of each new school

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housing project certified to the commissioner of elementary and secondary education. If a

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community fails to specify or identify the appropriate reimbursement schedule, the commissioner

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of elementary and secondary education may at his or her discretion set up to a five (5) year

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reimbursement cycle for projects under five hundred thousand dollars ($500,000); up to ten (10)

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years for projects up to three million dollars ($3,000,000); and up to twenty (20) years for

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projects over three million dollars ($3,000,000).

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        (b) Aid shall be provided for the same period as the life of the bonds issued in support

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of the project and at the school housing aid ratio applicable to the local community at the time of

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the bonds issued in support of the project.

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        (c) Aid shall be paid either to the community or in the case of projects financed through

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the Rhode Island Health and Educational Building Corporation, to the Rhode Island Health and

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Educational Building Corporation or its designee including, but not limited to, a trustee under a

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bond indenture or loan and trust agreement, in support of bonds issued for specific projects of the

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local community in accordance with this section, § 16-7-40 and § 16-7-44. Notwithstanding the

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preceding, in case of failure of any city, town or district to pay the amount due in support of

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bonds issued on behalf of a city or town school project financed by the Rhode Island Health and

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Educational Building Corporation, upon notification by the Rhode Island Health and Educational

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Building Corporation, the general treasurer shall deduct the amount from aid provided under this

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section, § 16-7-40 and § 16-7-44 due the city, town or district and direct said funding to the

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Rhode Island Health and Educational Building Corporation or its designee.

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        (d) Notwithstanding any provisions of law to the contrary, in connection with the

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issuance of refunding bonds benefiting any local community, any net interest savings resulting

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from the refunding bonds issued by such community or a municipal public buildings authority for

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the benefit of the community or by the Rhode Island health and educational building corporation

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for the benefit of the community, in each case in support of school housing projects for the

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community, shall be allocated between the community and the state of Rhode Island, by applying

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the applicable school housing aid ratio at the time of issuance of the refunding bonds, calculated

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pursuant to § 16-7-39, that would otherwise apply in connection with school housing projects of

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the community. In connection with any such refunding of bonds, the finance director or the chief

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financial officer of the community shall certify such net interest savings to the commissioner of

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elementary and secondary education. Notwithstanding § 16-7-44 or any other provision of law to

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the contrary, school housing projects costs in connection with any such refunding bond issue shall

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include bond issuance costs incurred by the community, the municipal public buildings authority

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or the Rhode Island health and educational building corporation, as the case may be, in

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connection therewith. In connection with any refunding bond issue, school housing project costs

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shall include the cost of interest payments on such refunding bonds, if the cost of interest

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payments was included as a school housing cost for the bonds being refunded. A local community

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or municipal public buildings authority shall not be entitled to the benefits of this subsection (d)

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unless the net present value savings resulting from the refunding is at least three percent (3%) of

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the refunded bond issue.

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        (e) Any provision of law to the contrary notwithstanding, the commissioner of

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elementary and secondary education shall cause to be monitored the potential for refunding

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outstanding bonds of local communities or municipal public building authorities or of the Rhode

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Island Health and Educational Building Corporation issued for the benefit of local communities

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or municipal public building authorities and benefiting from any aid referenced in this section. In

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the event it is determined by said monitoring that the net present value savings which could be

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achieved by refunding such bonds of the type referenced in the prior sentence including any

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direct costs normally associated with such refundings is equal to (i) at least one hundred thousand

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dollars ($100,000) and (ii) for the state and the communities or public building authorities at least

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three percent (3%) of the bond issue to be refunded including associated costs then, in such event,

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the commissioner (or his or her designee) may direct the local community or municipal public

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building authority for the benefit of which the bonds were issued, to refund such bonds. Failure of

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the local community or municipal public buildings authority to timely refund such bonds, except

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due to causes beyond the reasonable control of such local community or municipal public

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building authority, shall result in the reduction by the state of the aid referenced in this § 16-7-4.1

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associated with the bonds directed to be refunded in an amount equal to ninety percent (90%) of

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the net present value savings reasonably estimated by the commissioner of elementary and

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secondary education (or his or her designee) which would have been achieved had the bonds

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directed to be refunded been refunded by the ninetieth (90th) day (or if such day is not a business

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day in the state of Rhode Island, the next succeeding business day) following the date of issuance

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of the directive of the commissioner (or his or her designee) to refund such bonds. Such reduction

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in the aid shall begin in the fiscal year following the fiscal year in which the commissioner issued

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such directive for the remaining term of the bond.

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        (f) Payments shall be made in accordance with § 16-7-40 and this section.

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      16-7-45. Annual appropriations. -- The general assembly shall annually appropriate

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those sums that it may deem necessary to carry out the purposes of §§ 16-7-35 to 16-7-47, and the

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state controller is authorized and directed to draw his or her orders upon the general treasurer for

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the payment of the sum, or so much of it as may be required from time to time, upon the receipt

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by the controller of properly authenticated vouchers. In the event that the full amount of housing

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aid has not been appropriated in a particular fiscal year, school housing aid will not be ratably

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reduced. In such cases, aid computed for school housing costs for debt service which has been

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paid by the local community prior to project completion will be deferred. Such aid will be paid

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within three (3) equal installments beginning the fiscal year after project completion. This

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deferral provision shall only be applicable if the computed aid for debt service paid by the local

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community prior to project completion exceeds five hundred thousand dollars ($500,000).

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     SECTION 4. Section 16-5-34 of the General Laws in Chapter 16-5 entitled “State Aid” is

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hereby repealed.

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     16-5-34. Statewide purchasing system. -- The department of elementary and secondary

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education, pursuant to the collaborative established in Rhode Island General Laws § 6-2-9.2

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along with the department of administration, shall develop a plan for the establishment and

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implementation of a statewide purchasing system for all public schools in this state. Said

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statewide purchasing system shall develop requests for proposals relating to goods and services to

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enhance and support the mission of public schools and public education in general throughout this

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state, including, but not limited to, the purchase of the following goods, supplies, and services:

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     (a) General school supplies such as paper goods, office supplies, and cleaning products

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that are or may be utilized by school departments;

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     (b) Textbooks, telecommunications, wireless services, and software that have been

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identified by local school departments as needed to support local curriculum objectives;

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     (c) A statewide school transportation system for children with special needs. Local school

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departments shall be eligible to participate in this system by purchasing transportation services on

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a fee-for-service basis. It is stated herein that the goals and intent of establishing this state-wide

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transportation system shall be as follows:

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     (1) To reduce the duplication of bus routes;

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     (2) To improve services to children through the development of shorter, more efficient

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routes that minimize the amount of time spent by the student traveling on school transportation to

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and from school and school-related/sponsored activities; and

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     (3) To reduce transportation costs to local educational authorities through greater

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efficiency and cost-effective measures.

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     (d) General non-medical and dental insurance products and services, provided however,

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     that the statewide purchasing system shall permit districts to establish their own benefit

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and coverage levels.

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     (e) The department of elementary and secondary education, in collaboration with the

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     department of administration, shall also develop policies and procedures to reduce the

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cost of health care insurance to local school departments by developing a collaborative process

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which shall include local educational authorities and representatives of local educational unions

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in discussions of cost saving efficiencies that could be achieved by including these employees in

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a state health insurance contract.

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     SECTION 5. Chapter 16-60 of the General Laws entitled “Board of Regents for

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Elementary and Secondary Education” is hereby amended by adding thereto the following

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section:

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     16-60-7.3. Statewide purchasing system and programs. – (a) The department of

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elementary and secondary education, together with the department of administration, is

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authorized to develop and implement a voluntary statewide purchasing system for all public

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schools in this state, including regional school districts. Said system may be utilized for the

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purchase of all goods, supplies and services to support and enhance public school operations

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under a statewide contract, and shall include, but not be limited to, the following goods, supplies

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and services:

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     (1) General school supplies such as paper goods, office supplies, textbooks and cleaning

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products that are or may be utilized by school departments;

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     (2) Telecommunications, wireless services, computer equipment, hardware and software

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that have been identified by local school departments as needed to support curriculum objectives;

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     (3) General non-medical and dental insurance products and services; provided however,

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that the statewide purchasing system shall permit districts to establish their own benefit and

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coverage levels.

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     (b) Notwithstanding the provisions of any general or public law to the contrary, including

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the provisions of chapter 2 of title 37, the department of elementary and secondary education and

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local and regional school districts are authorized to participate in purchasing collaboratives,

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consisting of two (2) or more states. Said participation shall be subject to prior approval of the

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chief purchasing officer and rules and regulations promulgated by the department.

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     SECTION 6. Section 37-2-56 of the General Laws in Chapter 37-2 entitled “State

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Purchases” is hereby amended to read as follows:

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      37-2-56. Purchasing for municipalities and regional school districts. -- (a) Any

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municipality or regional school district of the state may participate in state master price

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agreement contracts for the purchase of materials, supplies, services and equipment entered into

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by the purchasing agent, provided, however, that the contractor is willing, when requested by the

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municipality or school district, to extend the terms and conditions of the contract and that the

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municipality or school district will be responsible for payment directly to the vendor under each

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purchase contract. Unless a state contract is the result of an intergovernmental cooperative

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purchase contract to which a municipality or school district is a party, the purchasing agent shall

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not compel a successful bidder to extend the same terms and conditions to a municipality or

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school district. However, the purchasing agent may, in the interest of obtaining better pricing on

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behalf of the state and local entities, solicit offers based upon anticipated master price agreement

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utilization by municipalities and school districts.

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     SECTION 7. This article shall take effect upon passage.