§ 16-105-5. Procedure for school building authority capital fund project approval.
(a) The department of elementary and secondary education shall promulgate rules and regulations
that establish the process through which a city, town, or LEA may submit an application
for school building authority capital funding. The department may also prescribe,
without limitation, forms for financial assistance applications. All rules and regulations
promulgated pursuant to this chapter shall be promulgated in accordance with the provisions
of chapter 35 of title 42, and shall apply to any projects submitted or reviewed on or after May 1, 2015.
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§ 16-105-5. Procedure for school building authority capital fund project approval.
(a) The department of elementary and secondary education shall promulgate rules and regulations
that establish the process through which a city, town, or LEA may submit an application
for school building authority capital funding. The department may also prescribe,
without limitation, forms for financial assistance applications. All rules and regulations
promulgated pursuant to this chapter shall be promulgated in accordance with the provisions
of chapter 35 of title 42, and shall apply to any projects submitted or reviewed on or after May 1, 2015.
(b) As part of the budget process, the governor shall specify the amount included in his/her
budget recommendation that the school building authority may commit to new projects
in the ensuing fiscal year, as well as any funding pursuant to § 16-105-7. Subsequently, the general assembly shall authorize the maximum amount that the school
building authority may commit to new projects in the ensuing fiscal year.
(c) Each LEA shall develop, implement, and maintain a comprehensive asset protection plan
for every school building, not only buildings for which housing aid or school building
authority capital funds are sought or received. Only LEAs that have adequate asset
protection plans in place to maintain their school facilities are eligible for funding
from the school building authority capital fund. LEAs must annually provide asset
protection information to the department of elementary and secondary education. If
an LEA fails to provide asset protection information in a fiscal year, it is not eligible
to receive school building authority capital funds the next fiscal year.
(d) Upon issuance of the project priority list, the Rhode Island health and educational
building corporation shall award financial assistance to cities, towns, and LEAs for
approved projects. The corporation may decline to award financial assistance to an
approved project which the corporation determines will have a substantial adverse
effect on the interests of holders of bonds or other indebtedness of the corporation
or the interests of other participants in the financial assistance program, or for
good and sufficient cause affecting the finances of the corporation. All financial
assistance shall be made pursuant to a loan or financing agreement between the corporation
and the city, town or LEA, acting by and through the officer or officers, board, committee,
or other body authorized by law, or otherwise its chief executive officer, according
to terms and conditions as determined by the corporation, and each loan shall be evidenced
and secured by the issue to the corporation of city or town obligations in principal
amount, bearing interest at the rate or rates specified in the applicable loan or
financing agreement, and shall otherwise bear such terms and conditions as authorized
by this chapter and/or the loan or financing agreement.