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SB 3130

AN ACT RELATING TO LIBRARIES -- STATE AID TO LIBRARIES

2026 Regular Session Introduced by Lou DiPalma

Rhode Island temporarily raises state reimbursements for library construction, extends funding over 20 years, and auto-increases caps 3% yearly through 2031.

05/07/2026 Committee recommended measure be held for further study
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Bill Summary · SB 3130

Summary of Bill SB 3130 (Rhode Island, 2026)

Title

AN ACT RELATING TO LIBRARIES -- STATE AID TO LIBRARIES

Purpose and Intent

  • To increase, on an interim basis, the state reimbursement caps for construction and capital improvements of public libraries. The rise in caps addresses inflation and rising costs since the 2018 Regulations for Library Construction Reimbursement, ensuring that library construction projects remain feasible.
  • The increase is temporary (interim) and applies until amended regulations are promulgated that may adjust caps further.
  • The changes are retroactive to costs incurred from July 1, 2025, and automatically adjust over time (3% annual increase beginning July 1, 2027).

Key Provisions

Section 1 — Findings and Purpose

  • Affirms libraries as essential public institutions supporting literacy, education, technology access, and community life.
  • Recognizes aging or inadequate library facilities and the need for construction, renovation, or modernization to meet health, safety, accessibility (including ADA), and evolving community needs.
  • States that modern, energy-efficient libraries can reduce operating costs, support economic development, and enhance resilience during emergencies.
  • Notes inflation since 2018 regulations and the resulting infeasibility of projects under existing caps.
  • Declares it in public interest to temporarily raise reimbursement caps.

Section 2 — Amendments to Section 29-6-6 (State Aid to Libraries: Construction and Capital Improvements)

  1. Matching Requirements (Subsection 1)

    • Grants require the recipient to provide a matching amount from local funds or private sources equal to or greater than the state grant, or the project must attract equivalent private funding. The requirement ensures local investment alongside state support.

  2. Payment Terms (Subsection 2)

    • State grants may be paid in installments over up to 20 years, starting the fiscal year the project is accepted.
    • Interest costs incurred by the recipient for borrowing the state’s share may be included in the state grant, calculated as actual interest paid minus certain exclusions (accrued interest, premiums not applied to costs, investment profits).
    • Interest-bearing financing costs are not counted toward the project’s total cost for matching purposes.
    • The office of library services may accelerate installments or pay the balance early, but each fiscal year must include at least 1/20 of the state reimbursable principal.

  3. Increased Reimbursement Caps (Subsection 3)

    • For eligible project costs incurred June 30, 2025 through June 30, 2031 (or earlier if amended), the following interim caps apply:
      • Construction costs: 50% reimbursement up to $370.20 per square foot for new construction; $308.50 per square foot for renovation/remodeling.
      • Site costs: Up to the lesser of $1,234,000 or 10% of total project cost (excluding site costs).
      • Total project reimbursement cap: $12,340,000 per project.
      • Allowable costs include financing leases (not operating leases) and items such as land, construction, landscaping, parking, fixtures, equipment, fire suppression, and green-building costs (e.g., LEED). Financing documents for bonds or refinancing must be filed with the office after completion, though pre-approval is not required.

  • These increased caps apply retroactively to costs incurred on or after July 1, 2025 and amendments to existing reimbursement agreements will reflect the increased caps automatically, subject to available funds.

  • The caps (dollar amounts and percentages) automatically increase by 3% on July 1 of each year beginning July 1, 2027.

Section 3 — Effective Date

  • The act takes effect upon passage.

Who Is Affected

  • Rhode Island cities and towns receiving state grants for public library construction and capital improvements.
  • Public libraries and their governing bodies (often city or town treasurers or library boards) that utilize the state aid program.
  • The Office of Library and Information Services (OLIS) and the State Regulations for Library Construction Reimbursement (to be amended in regulation to reflect higher interim caps).

Procedural and Timeline Aspects

  • Introduced: March 20, 2026
  • Referred to: Senate Finance
  • Pending: Scheduled for hearing/consideration in May 2026
  • Effective date: Upon passage
  • Interim period for caps: June 30, 2025 through June 30, 2031 (subject to amendments in regulations that may raise caps further)
  • Automatic annual inflation adjustment: 3% increase to caps starting July 1, 2027

Practical Implications

  • Increased financial feasibility for library construction projects during the interim period, particularly for larger or newer facilities that may have been constrained by 2018 caps.
  • Encourages continued investment in modern, accessible, energy-efficient library infrastructure.
  • Maintains required local/private matching, ensuring shared investment and accountability for project funding.
  • Provides flexibility in funding delivery (multi-year installments, with potential inclusion of interest costs in the state grant).

If you’d like, I can compare these interim caps to the current 2018 regulations or outline potential project scenarios under the new caps.

Compiled from official sources — confirm details with the bill’s official record.

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