AN ACT RELATING TO EDUCATION -- FEDERAL AID (Ends transaction fees for school lunches in all districts. This act requires at least one no-fee payment method for school lunches and a full disclosure whether fees will be charged by a payment platform.)

H8129

2026 -- H 8129
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LC005567
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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 -- FEDERAL AID

Introduced By:
Representatives Caldwell, Furtado, DeSimone, O'Brien, Speakman,
Donovan, Kislak, Spears, and Read

Date Introduced:
February 27, 2026

Referred To:
House Education
It is enacted by the General Assembly as follows:
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SECTION 1. Chapter 16-8 of the General Laws entitled "Federal Aid [See Title 16 Chapter
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97 — The Rhode Island Board of Education Act]" is hereby amended by adding thereto the
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following section:
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16-8-9.1. School lunch program -- Fees, transparency, and payment protections.

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(a) Prohibition and permitted fees by meal service collection providers.
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(1) Meal service collection providers shall only impose fees that directly correspond to the
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actual costs of collecting or processing payments for school meals and shall not generate profit or
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revenue beyond those costs.
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(2) Fees for any other purpose, including profit, convenience, or administrative gain, are
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prohibited.
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(3) Any fee permitted under this subsection shall be capped at a percentage of the
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transaction amount, which shall not exceed two percent (2%) of the amount deposited into a student
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meal account, or a lower percentage as may be established by the Rhode Island department of
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education by regulation.
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(4) All funds collected from families or provided by public agencies for school meals shall
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be applied primarily to the cost of meal service and the limited allowable collection costs under
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this subsection.
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(5) For purposes of this section, “meal service collection provider” means any vendor,
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contractor, payment processor, or entity engaged by a school, school district, or the Rhode Island

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department of education to collect, process, or manage school meal payments.
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(b) No-Fee payment options.
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(1) The Rhode Island department of education (RIDE) shall ensure that all public schools
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and school districts provide at least one no-fee payment method for parents, guardians, or students
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to make payments for school meals and any other school-related fees managed through a payment
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platform.
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(2) No-fee options may include, but are not limited to, in-person payments, mailed
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payments, electronic transfers without vendor-imposed fees, or any other method approved by
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RIDE.
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(3) RIDE shall promulgate rules and regulations establishing uniform statewide standards
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for no-fee payment access.
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(4) Local education agencies, under the guidance of RIDE, shall notify parents and
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guardians of the available no-fee payment options and the procedures to use them. Notifications
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shall be clear, timely, and accessible through multiple channels including, but not limited to, email,
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school websites, and written communications.
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(c) Fee disclosure requirements for payment platforms.
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(1) Any payment processing platform, online portal, or digital collection system used by a
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school or school district shall clearly and conspicuously disclose to users:
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(i) Whether any user fees will be charged;
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(ii) The amount and type of each fee; and
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(iii) Whether a no-fee payment option is available and how to access it.
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(2) Disclosure shall occur prior to the completion of any transaction and shall not be
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obscured, minimized, or pre-checked.
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(3) Districts shall ensure that contracts with vendors comply with these disclosure
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requirements. Any contract entered into after the effective date of this section that fails to comply
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shall be voidable at the option of the district.
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(d) Rulemaking. RIDE shall promulgate rules and regulations necessary to implement and
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enforce the provisions of this section, including vendor compliance, accessibility standards, and
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uniform disclosure requirements.
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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 -- FEDERAL AID
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This act would provide an end to transaction fees for school lunches in all districts. The
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department would ensure there is at least one no-fee payment method for school lunches. This act
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would also require that any payment processing platform used by the district clearly discloses
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whether fees will be charged.
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This act would take effect upon passage.
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LC005567
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LC005567 - Page 3 of 3