AN ACT RELATING TO EDUCATION -- THE PAUL W. CROWLEY RHODE ISLAND STUDENT INVESTMENT INITIATIVE (Establishes a new high-cost special education fund to pool resources and generates income to support excess costs associated with providing services to special education students.)

H7388

2026 -- H 7388
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LC003196
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO EDUCATION -- THE PAUL W. CROWLEY RHODE ISLAND STUDENT
INVESTMENT INITIATIVE

Introduced By:
Representatives Cortvriend, and Finkelman

Date Introduced:
January 28, 2026

Referred To:
House Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Chapter 16-7.1 of the General Laws entitled "The Paul W. Crowley Rhode
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Island Student Investment Initiative [See Title 16 Chapter 97 — The Rhode Island Board of
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Education Act]" is hereby amended by adding thereto the following section:
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16-7.1-20. High-cost special education fund for excess costs associated with special
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education students.

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(a) The general assembly recognizes the need to support the academic instruction of
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students who require high-cost special needs instruction, which costs constitute excess costs
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associated with special education students. To help accomplish this support, there is hereby
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established a high-cost special education fund (the "fund") to enable participating municipalities to
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pool their financial resources through voluntary contributions to a fund from which awards pursuant
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to the provisions of subsection (c) of this section may be made at a later date when a municipality
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experiences unanticipated high-cost special education expenses for high-cost special needs
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instruction.
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(b) The fund shall be housed within and managed by the office of the general treasurer.
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The general treasurer shall invest and manage the fund in order to maximize the combined deposits
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from municipalities and generate income to help defray the expense of excess costs associated with
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special education students.
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(c) Awards from the fund to municipalities shall be determined by the department of

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elementary and secondary education. Awards shall be based on specific needs for the district in
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accordance with criteria developed by the department; provided that, these criteria shall seek to
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provide assistance to municipalities to assist with extraordinary costs associated with special
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education students and shall include, as a factor, the total amount of contributions made by the
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municipality up to the date of the request for an award.
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(d) Participation in the fund shall be voluntary; provided that, a municipality shall be
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required to have contributed to the fund in a fiscal year prior to the year in which the municipality
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makes application for an award from the fund.
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(e) The initial contribution to the fund by a municipality shall be equal to the municipality's
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high-cost special education expenses for the prior fiscal year.
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(f) When used in this section, the following words and phrases are construed as follows:
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(1) "Extraordinary costs" has the same meaning as defined in § 16-7.2-6(a).
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(2) "High-cost special education" means financial support provided to school districts with
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extraordinary needs and includes excess costs associated with special education students as
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provided in § 16-7.2-6(a).
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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO EDUCATION -- THE PAUL W. CROWLEY RHODE ISLAND STUDENT
INVESTMENT INITIATIVE
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This act would establish a new high-cost special education fund to pool resources and
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generate income to support excess costs associated with providing services to special education
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students.
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This act would take effect upon passage.
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