2026 -- S 3130

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LC006151

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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 LIBRARIES -- STATE AID TO LIBRARIES

     Introduced By: Senator Louis P. DiPalma

     Date Introduced: March 20, 2026

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Findings and purpose.

     The general assembly hereby finds and declares that:

     (1) The State of Rhode Island recognizes that public libraries are essential civic institutions

that provide free and equitable access to information, literacy resources, educational opportunities,

technology, and cultural enrichment for residents of all ages;

     (2) Rhode Island’s public libraries play a critical role in supporting early childhood literacy,

K–12 student achievement, higher education, and lifelong learning, thereby advancing the

educational and economic well-being of the state;

     (3) Many public library buildings and facilities within the state are aging, undersized, or

otherwise inadequate to meet current and emerging community needs, including the demand for

digital access, collaborative learning spaces, quiet study areas, and flexible community

programming;

     (4) Numerous library facilities require construction, renovation, or modernization in order

to comply with current health, safety, and accessibility standards, including requirements under the

Americans with Disabilities Act (the “ADA”), and to ensure that all residents of the state, including

individuals with disabilities and older adults, can safely and fully utilize library services;

     (5) Investment in the construction, renovation, and modernization of public library

facilities promotes local economic development, supports small businesses and workforce

development programs, creates construction and related jobs, and enhances the quality of life in

communities throughout the state;

     (6) Energy efficient, resilient, and technologically up-to-+date library buildings reduce

operating costs for municipalities, advance the state’s environmental and resilience goals, and

ensure continuity of essential community services during emergencies;

     (7) Modern, well equipped public libraries serve as vital community hubs that support civic

engagement, public meetings, community partnerships, access to government information, and

emergency response and recovery efforts;

     (8) Rhode Island state Regulations for Library Construction Reimbursement were

promulgated in 2018 (the “2018 regulations”) and refiled without change on January 4, 2022;

     (9) The 2018 regulations provide for fifty percent (50%) reimbursement of expenditures

for eligible projects subject to reimbursement caps that were established in 2018;

     (10) Publicly available data reflect that, between 2019 and 2025 the Boston Consumer

Price Index (a commonly used measure of inflation for the region) has increased between 1.1% and

7.1% annually, resulting in a total cumulative inflationary increase of 23.4% over that period;

     (11) Due to this sustained inflation, library projects can no longer be feasibly undertaken

within the reimbursement caps set forth in the 2018 regulations; and

     (12) The general assembly finds that it is in the public interest to increase, by statute, the

reimbursement caps established in the 2018 regulations on an interim basis, pending promulgation

of amended regulations.

     SECTION 2. Section 29-6-6 of the General Laws in Chapter 29-6 entitled "State Aid to

Libraries" is hereby amended to read as follows:

     29-6-6. Construction and capital improvements.

     The office of library and information services may cause to be paid to a city or town

treasurer, or to any free public library in the state, a grant-in-aid for the construction and capital

improvement of any free public library as the chief of library services may determine is necessary

and desirable to provide better free library services to the public, which shall be paid in accordance

with the following provisions:

     (1) No grant-in-aid shall be made unless the city or town receiving the grant-in-aid shall

cause to be appropriated for the same purpose an amount from its own funds and not from any

federal grant or other federal financial assistance equal to, or more than, the state grant-in-aid, or

unless funds from private sources are dedicated for the same purpose in an amount equal to, or

more than, the state grant-in-aid, or unless the total of the city or town appropriation and the funds

from private sources for the same purpose is equal to, or more than, the state grant-in-aid.

     (2) The state grant-in-aid may be paid in installments over a period of years up to a

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maximum of twenty (20) years, beginning in the fiscal year during which the project is accepted

by the office of library and information services. Whenever a grant-in-aid is paid on the installment

basis permitted herein, there shall be included in the state grant-in-aid the interest cost actually

incurred by the city or town, or any free public library, as a result of its having to borrow the state’s

portion of the total cost of the library project. The amount of this interest cost shall be computed

on the actual interest cost paid by the city or town, or free public library, less any applicable accrued

interest, premiums, which are not applied to project costs, and profits from investments, over the

period of time elapsing between the date borrowed funds are made available and the date of the last

installment payment of the state grant-in-aid. Interest cost incurred by the city or town, or any free

public library, as a result of having to borrow its portion of the total cost of the library project shall

not be considered a part of the total cost of the project for the purposes of matching provided for in

subdivision (1) of this section. Nothing contained herein shall prohibit the office of library and

information services from accelerating the schedule of annual installments, or from paying the

balance due of the state’s grant-in-aid in a lump sum; provided, however, that the state grant-in-aid

in any fiscal year shall include no less than one-twentieth (⅟₂₀) of the state’s total reimbursable

principal obligations.

     (3) Notwithstanding the provisions of the state regulations for library construction

reimbursement promulgated in 2018 (the “2018 regulations”), which regulations were filed without

change on January 4, 2022, the reimbursement caps for eligible project costs incurred during the

period commencing June 30, 2025 and ending on June 30, 2031, or ending on such earlier date as

the office of library information services promulgates amendments to the 2018 regulations which

increase reimbursement caps to amounts above those amounts set forth in this subsection for the

effective period shall be as follows:

     (i) Construction costs are eligible for fifty percent (50%) reimbursement of expenditures

up to the amount of three hundred seventy dollars and twenty cents ($370.20) per square foot for

new construction or three hundred and eight dollars and fifty cents ($308.50) per square foot for

renovation and remodeling. If the actual construction costs exceed one or both of these amounts

per square foot, the state share shall be based on the not-to-exceeded amounts. Cost per square foot

shall be determined by the cost of contracts for new construction and/or contracts for expansion,

remodeling and alteration of existing buildings.

     (ii) Site costs, including demolition, sitework, the acquisition of a site or building, site

improvement and parking lots, are reimbursable up to the lesser amount of one million two hundred

thirty-four thousand dollars ($1,234,000) or ten percent (10%) of the total project cost less the site

costs.

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     (iii) The total amount of reimbursement for any project shall not exceed twelve million

three hundred forty thousand dollars ($12,340,000).

     (iv) Allowable costs include financing leases, but not operating leases, of library facilities,

including land acquisition, construction, renovation, expansion, landscaping, parking facilities,

fixtures, furnishings and equipment, fire suppression systems, and expenses related to meeting a

high performance green building standard such as, but not limited to, the Leadership in Energy and

Environmental Design (“LEED”) standard. Any library or municipality that finances or refinances

a project with bonds, notes, financing leases, or other evidences of indebtedness shall not require

pre-approval from the office of library services, but shall file the financing or refinancing

documents with the office of library services after the financing transaction is complete.

     (4) Notwithstanding any provision of law or agreement to the contrary, the increases in the

caps on state grant-in-aid reimbursement for construction or capital improvement projects pursuant

to the provisions of this subsection shall apply retroactively to all eligible project costs incurred on

or after July 1, 2025, whether the costs are subject to reimbursement under agreements executed

before, on, or after June 1, 2025. All reimbursement agreements for construction or capital

improvement projects executed by the office of library and information services shall be deemed

amended by operation of law to incorporate the increased caps with respect to eligible project costs

incurred during the effective period, and the office of library and information services is authorized

and directed to adjust reimbursement payments accordingly, subject to the availability of

appropriated funds. Any maximum dollar amount, percentage, or other cap on state grant-in-aid

reimbursement for construction or capital improvement projects established under, this subsection

shall automatically increase by three percent (3%) on July 1 of each year, beginning July 1, 2027.

     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LIBRARIES -- STATE AID TO LIBRARIES

***

     This act would increase on an interim basis, by statute, the reimbursement caps established

in the state’s Regulations for Library Construction Reimbursement promulgated in 2018, pending

promulgation of amended regulations. The increased caps would apply to eligible costs for library

projects incurred during the period commencing June 30, 2025 and ending on June 30, 2031, or

ending on such earlier date as the Office of Library Information Services promulgates amendments

to the regulations which increase reimbursement caps to amounts above those amounts set forth in

this act. The amendments made by this act would apply retroactively to all eligible project costs

incurred during the effective period, whether such costs are subject to reimbursement under

agreements executed before, on, or after June 1, 2025.

     This act would take effect upon passage.

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