Make sure to enable KeepToolsOnDeath via RTB prefs (in the server manager). It has options to enable/disable and to keep all or select slots. If he did and it still isn't working, I have no idea what could be wrong.
On a similar note to this, RestrictedItemDropping (by Kalphiter) is not working for me. Can anyone fix it up? (I believe it was broken by v20 or is just a bad script.) And also I'm having problems with SavedScore (by DrenDran). If anyone can help with these two scripts that would be greatly appreciated.