AN ACT RELATING TO TOWNS AND CITIES -- STATE AID (Increases transparency provisions and require reporting of the partially funded and unfunded school district costs.)

H7421

2026 -- H 7421
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LC003604
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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 TOWNS AND CITIES -- STATE AID

Introduced By:
Representatives Paplauskas, Hopkins, Nardone, Fascia, Place, Newberry,
Chippendale, Roberts, Noret, and J. Brien

Date Introduced:
January 30, 2026

Referred To:
House Education
It is enacted by the General Assembly as follows:
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SECTION 1. Section 45-13-9 of the General Laws in Chapter 45-13 entitled "State Aid" is
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hereby amended to read as follows:
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45-13-9. Reimbursement to cities and towns and school districts for the costs of state
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mandates.
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(a)(1) The department of revenue shall submit to the budget office by October 1 of each
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year, a report by each city and town, of the cost of state mandates established after January 1, 1979,
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to be reimbursed for the next preceding July 1 — June 30 period.
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(2) The budget office shall annually include the statewide total of the statement of costs of
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state mandates eligible to be reimbursed in the state budget for the next fiscal year for consideration
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by the governor in preparing a final budget proposal for submission to the general assembly in
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accordance with § 35-3-7 of the General Laws; provided, that any costs resulting from the rules
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and regulations of state departments or agencies shall be allocated to the budgets of those
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departments or agencies.
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(b) The state treasurer shall in July of each year distribute to cities and towns the
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reimbursements for state mandated costs as
may

shall
be appropriated by the general assembly.
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(c) The department of revenue shall publish a report, in collaboration with local education
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agencies (LEAs), identifying costs borne by school districts that are partially funded or unfunded.
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The report shall be provided to the general assembly, offices of the speaker of the house, the senate
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president, and the governor, for consideration when preparing the final budget proposal to be

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submitted to the general assembly. The report shall be accessible to the public and published on the
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state transparency portal.
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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 TOWNS AND CITIES -- STATE AID
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This act would increase transparency provisions and require reporting of the partially
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funded and unfunded school district costs.
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This act would take effect upon passage.
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LC003604
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LC003604 - Page 3 of 3