SB 164 — School Construction Amendments

(B) is not an employee of the contractor{,contractor; school district, or charter school} ;

[(6)[(6)(a) (a) Notwithstanding Subsection (3)(d), a school district or charter school shall use:] [(i) a municipal building inspector;] [(ii)[(ii)(A) (A) for a school district, a school district building inspector from that school district;

or] [(iii) an independent, certified building inspector who is not an employee of the contractor, licensed to perform the inspection that the inspector is requested to perform, and approved by a municipal building inspector or:] [(A) for a school district, a school district building inspector from that school district;- 6 - Enrolled Copy S.B.

or]164 [(B)district; for a charter school, a school district building inspector from the school district in which the charter school is located.] [(b) The approval under Subsection (6)(a)(iii) may not be unreasonably withheld.] [(c) If a school district or charter school uses a school district or independent building inspector under Subsection (6)(a)(ii) or (iii), the school district or charter school shall submit to the state superintendent of public instruction and municipal building official, on a monthly basis during construction of the school building, a copy of each inspection certificate regarding the school building.] (7) - 7 - SB0164 compared with SB0164S02 (a) A charter school, home-based microschool, or micro-education entity shall be considered a permitted use in all zoning districts within a municipality.

or] [(B) for a charter school, a school district building inspector from the school district in which the charter school is located.] [(b) The approval under Subsection (6)(a)(iii) may not be unreasonably withheld.] [(c) If a school district or charter school uses a school district or independent building inspector under Subsection (6)(a)(ii) or (iii), the school district or charter school shall submit to the state superintendent of public instruction and municipal building official, on a monthly basis during construction of the school building, a copy of each inspection certificate regarding the school building.] (7)(a) A charter school, home-based microschool, or micro-education entity shall be considered a permitted use in all zoning districts within a municipality.

(e)(e)(i) (i) A certificate authorizing permanent occupancy issued by the Division of Facilities Construction and Management under Section 63A-5b-1208 shall be the exclusive certificate required, and the municipality shall accept the Division of Facilities Construction and Management's certificate as satisfying all local occupancy requirements.

[(e)[(e)(i) (i) A school district, charter school, or micro-education entity may seek a certificate authorizing permanent occupancy of a school building from:] [(A) the state superintendent of public instruction, as provided in Subsection 53E-3-706(3), if the school district or charter school used an independent building- inspector7 for- inspectionS.B. of the school building;

or]164 [(B)Enrolled aCopy municipal official with authority to issue the certificate, if the school district, charter school, or micro-education entity used a municipal building inspector for inspection of the school building.]building; [(ii) A school district may issue its own certificate authorizing permanent occupancy of a school building if it used its own building inspector for inspection of the school building, subject to the notification requirement of Subsection 53E-3-706(3)(a).] - 8 - SB0164 compared with SB0164S02 [(iii) A charter school or micro-education entity may seek a certificate authorizing permanent occupancy of a school building from a school district official with authority to issue the certificate, if the charter school or micro-education entity used a school district building inspector for inspection of the school building.] [(iv) A certificate authorizing permanent occupancy issued by the state superintendent of public instruction under Subsection 53E-3-706(3) or a school district official with authority to issue the certificate shall be considered to satisfy any municipal requirement for an inspection or a certificate of occupancy.] (f) (i) A micro-education entity may operate in a facility that meets Group E Occupancy requirements as defined by the International Building Code, as incorporated by Section 15A-2-103.

or] [(B) a municipal official with authority to issue the certificate, if the school district, charter school, or micro-education entity used a municipal building inspector for inspection of the school building.] [(ii) A school district may issue its own certificate authorizing permanent occupancy of a school building if it used its own building inspector for inspection of the school building, subject to the notification requirement of Subsection 53E-3-706(3)(a).] [(iii) A charter school or micro-education entity may seek a certificate authorizing permanent occupancy of a school building from a school district official with authority to issue the certificate, if the charter school or micro-education entity used a school district building inspector for inspection of the school building.] [(iv) A certificate authorizing permanent occupancy issued by the state superintendent of public instruction under Subsection 53E-3-706(3) or a school district official with authority to issue the certificate shall be considered to satisfy any municipal requirement for an inspection or a certificate of occupancy.] (f)(i) A micro-education entity may operate in a facility that meets Group E Occupancy requirements as defined by the International Building Code, as incorporated by Section 15A-2-103.

(ii)(ii)(A) (A) each classroom in the facility has an exit directly to the outside at the level of exit or discharge;

(h)(h)(i) (i) A home-based microschool is not subject to additional occupancy requirements beyond occupancy requirements that apply to a primary dwelling.

(ii) If a floor that is below grade in a home-based microschool is used for home-based microschool- purposes,8 the- belowEnrolled gradeCopy floorS.B. of the home-based microschool shall have at least one emergency escape or rescue window that complies with the requirements for emergency escape and rescue windows as defined by the International Residential Code, as incorporated by Section 15A-2-103.

(8)164 -microschool 9purposes, -the SB0164below comparedgrade withfloor SB0164S02of (a)the Ahome-based specifiedmicroschool publicshall agencyhave intendingat toleast developone itsemergency landescape shallor submitrescue towindow thethat landcomplies usewith authoritythe arequirements developmentfor planemergency escape and schedule:rescue windows as defined by the International Residential Code, as incorporated by Section 15A-2-103.

(8)(a) A specified public agency intending to develop its land shall submit to the land use authority a development plan and schedule:

(b) The land use authority shall respond to a specified public agency's submission under Subsection (8)(8)(a) (a) with reasonable promptness in order to allow the specified public agency to consider information the municipality provides under Subsection (8)(a)(ii) in the process of preparing the budget for the development.

(b) requiring a home-based microschool or micro-education entity to obtain a business license;- 9 - S.B.

164 Enrolled Copy license;

and - 10 - SB0164 compared with SB0164S02 (e) imposing regulations on the location of a project that are necessary to avoid risks to health or safety.

(11)(11)(a) (a) Section 63A-5b-1218 governs the requirements for permitting and inspection of public school buildings.

17-79-305.17-79-305 .

(1)(1)(a) (a) Each county, municipality, school district, charter school, special district, special service district, and political subdivision of the state shall conform to any applicable land use ordinance of any county when installing, constructing, operating, or otherwise using any area, land, or building situated within a mountainous planning district or the unincorporated portion of the county, as applicable.

(2)(2)(a) (a) Except as provided in Subsection (3), a school district or charter school is subject to a county's land use ordinances.

(b)(b)(i) (i) Notwithstanding Subsection (3), a county may:

and (B) impose regulations upon the location of a project that are necessary to avoid unreasonable- risks10 to- healthEnrolled orCopy safety,S.B. as provided in Subsection (3)(f).

-164 11unreasonable -risks SB0164 compared with SB0164S02 (ii) The standards to whichhealth aor countysafety, mayas subjectprovided ain charter school under Subsection (2)(b)(i)(3)(f). shall be objective standards only and may not be subjective.

(ii) The standards to which a county may subject a charter school under Subsection (2)(b)(i) shall be objective standards only and may not be subjective.

(a) impose requirements for landscaping, fencing, aesthetic considerations, construction methods or materials{[,materials, additional building inspections]}inspections, , county building codes, building use for educational purposes, or the placement or use of temporary classroom facilities on school property;

(i) is not imposed on a similar land use or structure in the zone in which the land use or- structure11 is- approved;S.B.

or164 -Enrolled 12Copy - SB0164 compared with SB0164S02 (ii) uses the tax exempt status of the school district or charterstructure schoolis asapproved; criteria for prohibiting or regulating the land use or location of the structure.

or (ii) uses the tax exempt status of the school district or charter school as criteria for prohibiting or regulating the land use or location of the structure.

(6)(6)(a) (a) The Division of Facilities Construction and Management has the sole authority to approve inspectors for school construction projects under Title 63A, Chapter 5b, Part 12, Public School Construction Oversight.

(b) A school district {or charter school shall use only } may only use inspectors approved by the Division of Facilities Construction and Management as follows:

or (iii) a certified building inspectorinspector, , which may include a qualified school district inspector, who meets all of the following requirements:

(B) is not an employee of the contractor{,contractor; school district, or charter school} ;

-[(6)(a) 13 - SB0164 compared with SB0164S02 [(6) (a) Notwithstanding Subsection (3)(d), a school district or charter school shall use:] [(i) a county building inspector;] [(ii)- (A)12 for- aEnrolled schoolCopy district,S.B. a school district building inspector from that school district;

164 [(ii)(A) for a school district, a school district building inspector from that school district;

or] [(B) for a charter school, a school district building inspector from the school district in which the charter school is located.] [(b) The approval under Subsection (6)(a)(iii) may not be unreasonably withheld.] [(c) If a school district or charter school uses a school district or independent building inspector under Subsection (6)(a)(ii) or (iii), the school district or charter school shall submit to the state superintendent of public instruction and county building official, on a monthly basis during construction of the school building, a copy of each inspection certificate regarding the school building.] (7)(7)(a) (a) A charter school, home-based microschool, or micro-education entity shall be considered a permitted use in all zoning districts within a county.

-(e)(i) 14 - SB0164 compared with SB0164S02 (e) (i) A certificate authorizing permanent occupancy issued by the Division of Facilities Construction and Management under Section 63A-5b-1208 shall be the exclusive certificate required, and a county shall accept the division's certificate as satisfying all local occupancy requirements.

(ii) A micro-education entity is not subject to the requirements of Title 63A, Chapter 5b,- Part13 12,- PublicS.B. School Construction Oversight, and shall comply with local building codes and permitting requirements through county building officials.

[(e)164 (i)Enrolled ACopy school5b, districtPart ,12, charterPublic school,School orConstruction micro-educationOversight, entityand mayshall seekcomply awith certificatelocal authorizing permanent occupancy of a school building from:]codes [(A)and thepermitting staterequirements superintendentthrough ofcounty public instruction, as provided in Subsection 53E-3-706(3), if the school district, charter school, or micro-education entity used an independent building inspectorofficials. for inspection of the school building;

or][(e)(i) [(B)A a county official with authority to issue the certificate, if the school district,district , charter school, or micro-education entity used a county building inspector for inspection of the school building.] [(ii) A school district may issueseek itsa own certificate authorizing permanent occupancy of a school building iffrom:] it[(A) usedthe itsstate ownsuperintendent building inspector for inspection of thepublic schoolinstruction, building,as subjectprovided toin the notification requirement of Subsection 53E-3-706(3)(d)(ii).]53E-3-706(3), [(iii)if Athe charter school ordistrict, micro-education entity may seek a certificate authorizing permanent occupancy of a school building from a school district official with authority to issue the certificate, if the charter schoolschool, or micro-education entity used aan schoolindependent district building inspector for inspection of the school building.]building; [(iv) A certificate authorizing permanent occupancy issued by the state superintendent of public instruction under Subsection 53E-3-706(3) or a school district official with authority to issue the certificate shall be considered to satisfy any county requirement for an inspection or a certificate of occupancy.] (f) (i) A micro-education entity may operate a facility that meets Group E Occupancy requirements as defined by the International Building Code, as incorporated by Subsection 15A-2-103(1)(a).

or] [(B) a county official with authority to issue the certificate, if the school district, charter school, or micro-education entity used a county building inspector for inspection of the school building.] [(ii) A school district may issue its own certificate authorizing permanent occupancy of a school building if it used its own building inspector for inspection of the school building, subject to the notification requirement of Subsection 53E-3-706(3)(d)(ii).] [(iii) A charter school or micro-education entity may seek a certificate authorizing permanent occupancy of a school building from a school district official with authority to issue the certificate, if the charter school or micro-education entity used a school district building inspector for inspection of the school building.] [(iv) A certificate authorizing permanent occupancy issued by the state superintendent of public instruction under Subsection 53E-3-706(3) or a school district official with authority to issue the certificate shall be considered to satisfy any county requirement for an inspection or a certificate of occupancy.] (f)(i) A micro-education entity may operate a facility that meets Group E Occupancy requirements as defined by the International Building Code, as incorporated by Subsection 15A-2-103(1)(a).

- 15 - SB0164 compared with SB0164S02 (g) A micro-education entity may operate a facility that is subject to and complies with the same occupancy requirements as a Class A-1, A-3, B, or M Occupancy as defined by the International Building Code, as incorporated by Subsection 15A-2-103(1)(a), if:

(ii)(ii)(A) (A) each classroom in the facility has an exit directly to the outside at the level of- exit14 discharge;- Enrolled Copy S.B.

164 of exit discharge;

(h)(h)(i) (i) A home-based microschool is not subject to additional occupancy requirements beyond occupancy requirements that apply to a primary dwelling.

(ii) If a floor that is below grade in a home-based microschool is used for home-based microschool purposes, the below grade floor of the home-based microschool shall have at least one emergency escape or rescue window that complies with the requirements for emergency escape and rescue windows as defined by the International Residential Code, as incorporated in[in] by Section 15A-1-210.

(8)(8)(a) (a) A specified public agency intending to develop its land shall submit to the land use authority a development plan and schedule:

(b) The land use authority shall respond to a specified public agency's submission under Subsection (8)(8)(a) (a) with reasonable promptness in order to allow the specified public agency to consider information - 16 - SB0164 compared with SB0164S02 the municipality provides under Subsection (8)(a)(ii) in the process of preparing the budget for the development.

(a) requiring a home-based microschool or micro-education entity to comply with local zoning- and15 land- useS.B. regulations that do not conflict with this section, including:

164 Enrolled Copy zoning and land use regulations that do not conflict with this section, including:

(12)(12)(a) (a) Section 63A-5b-1218 governs the requirements for permitting and inspection of public school buildings.

53E-3-701.53E-3-701 .

As used in this part, "division" means the same as that term is defined in Section - 17 - SB0164 compared with SB0164S02 63A-5b-102.

53E-3-702.53E-3-702 .

(b)- participate16 in- constructionEnrolled rulesCopy developmentS.B. and review;

164 (b) participate in construction rules development and review;

53E-3-703.53E-3-703 .

{(3)(3) {BeforeAn purchasingLEA realshall propertyensure inall relation to a construction projectcontracts orinclude anthe existingprovisions building for schoolconstruction use,contracts anas LEA shall provide written notice to:} } - 18 - SB0164 compared with SB0164S02 {(a) {the municipality or county where the propertydivision isdetermines. located;} } {(b) {affected utility companies;} } {(c) {relevant transportation authorities;

and} } {(d) {the local fire authority.} } {(4) {The LEA shall ensure the notice is provided at least 30 days before:} } {(a) {closing on a property purchase;

or} } {(b) {entering into a lease agreement for school use.} } {(5) {Before beginning construction of a school building, an LEA shall submit to the entities listed in Subsection (3):} } {(a) {a development plan and schedule;} } {(b) {anticipated enrollment and traffic impacts;

and} } {(c) {child access routing plans.} } (6)(3) An LEA shall ensure all construction contracts include the provisions for construction contracts as the division determines.

53E-3-704.53E-3-704 .

(2) {A school district } An LEA shall require payment and performance bonds as provided in Section 14-1-18 for construction contracts exceeding $50,000.

(a) contract provisions the division establishes under Subsection {53E-3-703(6)} 53E-3-703(3);

Section 763A-5b-1201 is enacted to read:

63A-5b-1201.Part 12.

Public School Construction Oversight - 17 - S.B.

164 Enrolled Copy 63A-5b-1201 .

12.(1) This part does not apply to micro-education entities as defined in Section 53G-6-201.

Public School Construction Oversight (1) This part does not apply to micro-education entities as defined in Section 53G-6-201.

{(a)(a) {"Charter school" means a charter school established under Title 53G, Chapter 5, Charter Schools.} } - 19 - SB0164 compared with SB0164S02 (b){(a)} {"LEA} "Charter school" means the same as that term is defined in Section {53E-1-102} 53G-5-102.

Section 863A-5b-1202 is enacted to read:

63A-5b-1202.63A-5b-1202 .

(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division shall make rules establishing comprehensive standards for public school construction that {may } shall include:

(i) a process for {an LEA } a school district to report project related issues;

(l)- facility18 condition- assessmentEnrolled requirements,Copy including:S.B.

164 (l) facility condition assessment requirements, including:

- 20 - SB0164 compared with SB0164S02 (iii) standardized assessment methodologies;

(r) standards for {LEA } school district coordination with municipalities and counties regarding school siting, traffic impacts, and site safety considerations;

(a)- the19 fire- marshal;S.B.

-164 21Enrolled -Copy SB0164(a) compared with SB0164S02 (b) the schoolfire constructionmarshal; liaison on educational programming needs and coordination of safety and security requirements;

(c)(b) representativesthe fromschool {LEAs}construction schoolliaison districts;on educational programming needs and coordination of safety and security requirements;

and(c) (d)representatives {designfrom }school architects,districts; engineers, and construction professionals.

and (d) architects, engineers, and construction professionals.

(a) provide professional construction oversight for {an LEA } a school district lacking internal capacity;

(7) The division {may contract } shall collaborate with the state fire marshal, state security chief, {or } and local governmental entities to:

(8)- In20 exercising- oversightEnrolled authority,Copy theS.B. division shall recognize that:

-164 22(8) -In SB0164exercising comparedoversight withauthority, SB0164S02the (a)division publicshall schoolrecognize constructionthat: is typically funded through local bond measures approved by school district voters;

(b)(a) public school facilitiesconstruction areis ownedtypically andfunded operatedthrough bylocal thebond {LEA}measures approved by school district;district voters;

(b) school facilities are owned and operated by the school district;

(9){(10)}(10) {An LEA } A school district may appeal division determinations under this section to the appeals panel established under Section 63A-5b-1221.

(10){(11)}(11) The division shall require:

Section 963A-5b-1203 is enacted to read:

63A-5b-1203.63A-5b-1203 .

or (c) a construction manager {or } general contractor, subject to the restrictions in Subsection (2).

(2)(2)(a) (a) An LEA may {only } use a construction manager {or } general contractor delivery method if:

- 2321 - SB0164S.B. compared with SB0164S02 (i) the LEA demonstrates to the division that the project meets appropriate criteria for using a construction manager {or } general contractor under Subsection 63G-6a-1302(3);

(ii)164 theEnrolled LEACopy employs(i) orthe contractsLEA withdemonstrates qualifiedto constructionthe managementdivision staffthat withthe demonstratedproject constructionmeets managerappropriate {orcriteria }for generalusing contractor experience;and (iii) the LEA submits a detailedconstruction projectmanager managementgeneral plancontractor approvedunder bySubsection the63G-6a-1302(3); division{;

and}(ii) .the LEA employs or contracts with qualified construction management staff with demonstrated construction manager general contractor experience;

{(iv)and {the(iii) divisionthe determinesLEA thatsubmits a constructiondetailed managerproject ormanagement generalplan contractorapproved isby the mostdivision. appropriate delivery method for the specific project.} } (b) The division may only deny approval for a construction manager {or } general contractor delivery method if:

(i)(b) theThe LEAdivision lacksmay sufficientonly {internaldeny }approval expertisetofor managea theconstruction project;manager general contractor delivery method if:

(i) the LEA lacks sufficient expertise to manage the project;

or (iii) {design-build } other methods of delivery would provide better cost control and project outcomes.

(a) establish clear criteria for when a construction manager {or } general contractor delivery method is appropriate, considering the factors described in Subsection 63G-6a-1302(3);

and (iii) circumstances when each delivery method is most appropriate;andappropriate; (c) require additional oversight and reporting for projects using a construction manager or general contractor{;

and}and .(c) require additional oversight and reporting for projects using a construction manager or general contractor.

{(d)(4) {encourageFor useprojects ofunder a$3,000,000, design-buildan deliveryLEA methodshall foruse newdesign-bid-build schoolunless constructionthe through:}division }approves {(i)an {streamlinedalternative approvaldelivery processes;}method }under {(ii)Section {reduced63G-6a-1302. administrative requirements;

and} } {(iii) {technical assistance programs.} } (4) For projects under $3,000,000, an LEA shall use design-bid-build unless the division approves an alternative delivery method under Section 63G-6a-1302.

- 24 - SB0164 compared with SB0164S02 (b) requirements for subcontractor procurement in Subsection 63G-6a-1302(5)(b);

(7)- The22 contractor- registryEnrolled requirementCopy inS.B. Subsection (6):

164 (7) The contractor registry requirement in Subsection (6):

{(8) {A charter school with a project under $5,000,000:} } {(a) {may use any delivery method authorized by Section 63G-6a-1302;}10. } {(b) {shall notify the division of the selected delivery method;

and}Section }63A-5b-1204 {(c)is {shallenacted provide justification to theread: division if using a construction manager or general contractor delivery method.} } Section 10.

Section63A-5b-1204 10. is enacted to read:

63A-5b-1204.

- 25 - SB0164 compared with SB0164S02 (a) submit a detailed written request to the division before soliciting proposals;

(a)- provide23 pre-approved- designS.B. options for common school types and sizes;

164 Enrolled Copy (a) provide pre-approved design options for common school types and sizes;

(c) accelerate the approval process for {LEAs } school districts using standard designs;

(6) The division shall develop and maintain a library of standardized school design prototypestemplates developed in collaboration with architects experienced in the design of school facilities that:

- 26 - SB0164 compared with SB0164S02 (a) shall comply with all procurement requirements under Title 63G, Chapter 6a, Utah Procurement Code;

(b)- using24 qualifications-based- selectionEnrolled proceduresCopy asS.B. required by Subsection 63G-6a-1502(1);

164 (b) using qualifications-based selection procedures as required by Subsection 63G-6a-1502(1);

Section 1163A-5b-1205 is enacted to read:

63A-5b-1205.63A-5b-1205 .

and - 27 - SB0164 compared with SB0164S02 (i) other building or construction codes the division determines relevant.

(b) provide written justification for any costs exceeding division benchmarks by more than- 10%;25 - S.B.

164 Enrolled Copy than 10%;

- 28 - SB0164 compared with SB0164S02 (c) provide written explanation for any required modifications or denials;

(b)- cost26 matrix- determinationsEnrolled underCopy SubsectionsS.B. (6) and (7);

164 (b) cost matrix determinations under Subsections (6) and (7);

Section 1263A-5b-1206 is enacted to read:

63A-5b-1206.63A-5b-1206 .

and (f) structural observation reporting mandates for Risk Category III buildings as {as } defined in the International Building Code adopted under Section 15A-1-204.

- 29 - SB0164 compared with SB0164S02 (5) {An LEA } A school district may appeal technical compliance determinations under this section to the appeals panel established under Section 63A-5b-1221.

Section 1363A-5b-1207 is enacted to read:

63A-5b-1207.63A-5b-1207 .

(2)- An27 LEA- shallS.B. use the online system to:

164 Enrolled Copy (2) An LEA shall use the online system to:

Section 1463A-5b-1208 is enacted to read:

63A-5b-1208.63A-5b-1208 .

and - 30 - SB0164 compared with SB0164S02 (e) provide evidence of qualified inspection arrangements that meet the requirements described in Subsection 63A-5b-1220.

(4)- The28 division- may:Enrolled Copy S.B.

164 (4) The division may:

- 31 - SB0164 compared with SB0164S02 (6) The division shall:

(7)(7)(a) (a) A certificate authorizing permanent occupancy issued by the division under this section:- 29 - S.B.

164 Enrolled Copy section:

- 32 - SB0164 compared with SB0164S02 (a) an LEA may request a temporary certificate of occupancy from the division;

Section 1563A-5b-1209 is enacted to read:

63A-5b-1209.63A-5b-1209 .

(1)- Upon30 written- requestEnrolled fromCopy theS.B. division, an LEA shall provide:

(a)164 in(1) accordanceUpon withwritten Subsectionrequest (7),from documentation and information regarding {past } construction projects{, including projects completed before the effectivedivision, datean ofLEA thisshall part}provide: ;

(a) in accordance with Subsection (7), documentation and information regarding construction projects;

- 33 - SB0164 compared with SB0164S02 (iv) creating training programs and best practices;

and (g)- provide31 better- technicalS.B. assistance to an LEA.

164 Enrolled Copy (g) provide better technical assistance to an LEA.

or - 34 - SB0164 compared with SB0164S02 (b) administrative penalties not exceeding $5,000, subject to appeal under Section 63A-5b-1221.

(b) projects {completed within the last 5 years, including projects } in process or completed {before January 1, 2027} after May 6, 2026;

Section 1663A-5b-1210 is enacted to read:

63A-5b-1210.63A-5b-1210 .

(vii) {supports } supports for auditandaudit and compliance activities;

(B)- estimated32 costs- forEnrolled eachCopy deferredS.B. maintenance item;

164 (B) estimated costs for each deferred maintenance item;

(2)(2)(a) (a) Notwithstanding the division's tracking of deferred maintenance, the division and the state assume no liability for any deferred maintenance costs or issues arising from deferred maintenance.

- 35 - SB0164 compared with SB0164S02 (b) The LEA shall retain all liability for deferred maintenance costs and any consequences resulting from deferred maintenance decisions.

(c)- include33 facility- conditionS.B. assessments updated at least every five years;

164 Enrolled Copy (c) include facility condition assessments updated at least every five years;

- 36 - SB0164 compared with SB0164S02 (b) by July 1, 2028:

Section 1763A-5b-1211 is enacted to read:

63A-5b-1211.- 34 - Enrolled Copy S.B.

164 63A-5b-1211 .

and - 37 - SB0164 compared with SB0164S02 (d) standardized forms and reporting requirements.

(3)(3)(a) (a) In collaboration with the school construction liaison described in Section 63A-5b-1212, the division shall provide annual training for LEA officials covering:

Section 1863A-5b-1212 is enacted to read:

63A-5b-1212.- 35 - S.B.

164 Enrolled Copy 63A-5b-1212 .

- 38 - SB0164 compared with SB0164S02 (a) serves as the primary contact between the state board and the division on school construction matters;

Section 1963A-5b-1213 is enacted to read:

63A-5b-1213.63A-5b-1213 .

(a)- any36 project- exceedingEnrolled $3,500,000Copy inS.B. total cost;

-164 39(a) -any SB0164project comparedexceeding with$3,500,000 SB0164S02in (b)total complexcost; projects requiring specialized expertise;

(b) complex projects requiring specialized expertise;

(4)(4)(a) (a) The division shall establish a cost structure for managed services where:

and (B) for projects under $3,500,000, the actual cost of providing management services in relation to the specific project;andproject; (iii) fee schedules are published annually in division rules{;

and}and .(iii) fee schedules are published annually in division rules.

{(iv) {cost savings achieved through division management may be shared with the LEA.} } (b) The division shall ensure:

and (ii) an LEA {shall } may not pay duplicative fees.

{(i)(i) {the 1.25% construction oversight fee component;} } (ii){(i)} additional direct project management costs;

and (iii){(ii)}(ii) the total administrative fee percentage.

Section 2063A-5b-1214 is enacted to read:

-63A-5b-1214 40. - SB0164 compared with SB0164S02 63A-5b-1214.

(1) {For } Except for an LEA that has hired a division approved project manager to provide services as described in this section, for all public school construction projects, an LEA shall pay the division a construction oversightoversight, {fee equal to 1.25% of } , building official, plan review, and administration fee in accordance with a fee schedule established by division rule under Section- 63A-5b-121737 and- approvedS.B. by the {total project cost} rate committee created in Section 63A-1-114.

164 Enrolled Copy Section 63A-5b-1217 and approved by the rate committee created in Section 63A-1-114.

{(b)(b) {shallshall be calculatedestablished basedby ondivision therule totalunder projectSection cost63A-5b-1217 including:}to }recover {(i)the {constructionreasonable contracts;}costs }of {(ii)oversight {architectactivities and designmay professionalbe fees;}reduced }or {(iii)waived {furniture,for fixtures,LEAs andwith equipment;}delegated }oversight {(iv)authority; {site development and utility connections;} } {(v) {testing and inspection services;

and}and }(c) {(vi)may {other project-related costs;} } (c){(b)} shall be {paidincluded toin the }LEA's establishedbond byauthorization division {according } rule under Section 63A-5b-1217 to recover the {following schedule:} reasonable costs of oversight activities and may be reduced or waivedother forfunding LEAsmechanism. with delegated oversight authority;

and {(i) {25% upon issuance of a construction permit;} } {(ii) {25% at 25% project completion;} } {(iii) {25% at 50% project completion;

and} } {(iv) {25% at substantial completion;

and} } (d){(c)} may be included in the LEA's bond authorization or other funding mechanism.

- 41 - SB0164 compared with SB0164S02 (g) standardized design template development;

{(a)(a) {the administrative fee structure in Subsection 63A-5b-1213(4) includes the 1.25% construction oversight fee;} } (b){(a)} the LEA shall not pay duplicative fees;

and (c){(b)}(b) the division shall clearly delineate {in } the fee structure {how the construction } for oversight {fee is incorporated} activities.

{(6)(6) {AAn charterLEA schoolmay subjectappeal tofee alternativeassessments complianceor underpayment Sectionschedule 63A-5b-1217requirements shall:}under }this {(a)section {payto the constructionappeals oversightpanel feeestablished for projects exceeding $500,000 in total cost;} } {(b) {for projects under $500,000,Section pay63A-5b-1221. a reduced fee of 0.75% of total project cost;

and} } {(c) {follow the same payment schedule as provided in Subsection (2)(c).} } (7){(6)} An LEA may appeal fee assessments or payment schedule requirements under this section to the appeals panel established under Section 63A-5b-1221.

Section 2163A-5b-1215 is enacted to read:

63A-5b-1215.63A-5b-1215 .

(a)- issue38 written- warningsEnrolled andCopy complianceS.B. orders;

164 (a) issue written warnings and compliance orders;

- 42 - SB0164 compared with SB0164S02 (b) $5,000 for significant violations;

Section 2263A-5b-1216 is enacted to read:

63A-5b-1216.63A-5b-1216 .

(a) establishes minimum qualification standards based on experience, financial capacity, and- performance39 history;- S.B.

164 Enrolled Copy and performance history;

- 43 - SB0164 compared with SB0164S02 (2) To be eligible to bid on public school construction exceeding $500,000, a contractor shall:

(iv)- roofing40 contractors;- Enrolled Copy S.B.

164 (iv) roofing contractors;

- 44 - SB0164 compared with SB0164S02 (d) is updated at least annually;

Section 2363A-5b-1217 is enacted to read:

63A-5b-1217.63A-5b-1217 .

{Charter school alternative compliance} Delegated oversight authority for qualified LEAs.

{(1) {Except as provided in Subsection (2), a charter school may elect to comply with this part through:} } (1) Notwithstanding any other provision of this part, the division may delegate oversight authority for school facility planning, design review, and construction plan approval to an LEA that has demonstrated internal capacity in construction management, procurement, and project delivery.

(3)(3)(a) (a) {full compliance with } An LEA granted delegated oversight authority remains subject to all {sectionsapplicable }reporting, applicableaudit, {toand ancompliance LEA;reviews by the division.

or}(b) reporting,The audit,division andmay compliancerevoke reviewsdelegated byauthority theupon division.a finding of material non-compliance or substantial risk to health, safety, or fiscal integrity.

{(b)(4) {alternativeIf compliancethe underdivision thisgrants section.}delegated }oversight {(2)authority {A charter school with a project exceeding $5,000,000 in total cost shall comply with all requirements applicable to LEAsan LEA under this part.}section, }the {(3)division {Ashall charteradjust, schoolreduce, electingor alternativewaive complianceany shall:} } {(a) {comply with architect cost oversight requirementsfee assessed under Sectionthis 63A-5b-1204;}part } {(b) {submit all projects to standardizedreflect cost reporting under Section 63A-5b-1210;} } {(c) {use qualified, certified inspectors from the division'sscope approvedand roster;}level }of {(d)oversight {complyactually withperformed all safety and security standards established by the statedivision. security chief;} } {(e) {notify affected entities under Subsection (4) for any construction or major alteration project;

and}(5) }The {(f) {receive division approvalshall forestablish planby compliancerule verificationa underschedule Subsection (5).} } {(4) {In accordance with Section 53E-3-703, before beginning any construction, major alteration, or occupancy of an existing building for schooloversight use,fees athat charteris schoolproportional shallto notifythe andoversight coordinateservices with:}provided, }including -reduced 45 - SB0164 compared with SB0164S02 {(a) {the municipality or countyzero fees where theoversight facility is located;}primarily }satisfied {(b)through {theaudits, relevantreporting, transportationor authoritiesdelegated ifauthority. the project may impact traffic patterns;} } {(c) {utility companies serving the area;} } {(d) {the local fire authority;

and} } {(e) {any other entities the division identifies as potentially affected by the project.} } {(5) {For plan compliance verification and exemption from the full plan review process under Section 63A-5b-1205, a charter school shall:} } {(a) {submit construction documents or occupancy plans to the division;} } {(b) {demonstrate compliance with building codes, accessibility requirements, and safety standards;

and} } {(c) {receive written division approval before occupancy.} } {(6) {A charter school using alternative compliance is exempt from:} } {(a) {mandatory use of the online document management system under Section 63A-5b-1207, but shall submit required reports in division-approved formats;} } {(b) {detailed monthly construction reporting requirements;

and} } {(c) {mandatory compliance audits, unless the charter school has demonstrated repeated violations.} } (7){(b)} The division may {require a charter school } revoke delegated authority upon a finding of material non-compliance or substantial risk to {use full LEA compliance if:} health, safety, or fiscal integrity.

{(a) {the charter school has violated safety standards;} } {(b) {the total project cost exceeds $3,000,000;

or} } {(c) {the charter school has demonstrated repeated noncompliance with alternative requirements.} } {(8) } {(a) {This section applies only to charter schools.} } {(b) {Micro-education entities are exempt from all requirements of this part and shall comply with applicable local building codes and permitting requirements.} } (9){(4)} {A charter school may appeal } If the {following determinations } division grants delegated oversight authority to an LEA under this section {to } , the {appeals panel established } division shall adjust, reduce, or waive any oversight fee assessed under {Section 63A-5b-1221:} this part to reflect the scope and level of oversight actually performed by the division.

{(a) {requirements to use full LEA compliance under Subsection (7);} } - 46 - SB0164 compared with SB0164S02 {(b) {plan compliance verification denials under Subsection (5);} } {(c) {architect cost oversight determinations under Subsection (3)(a);

and} } {(d) {safety and security compliance requirements under Subsection (3)(d).} } (5) The division shall establish by rule a schedule for oversight fees that is proportional to the oversight services provided, including reduced or zero fees where oversight is primarily satisfied through audits, reporting, or delegated authority.

Section 2463A-5b-1218 is enacted to read:

63A-5b-1218.63A-5b-1218 .

(a)- receive41 notification- ofS.B. projects from the State Board of Education or the division;

164 Enrolled Copy (a) receive notification of projects from the State Board of Education or the division;

Section 2563A-5b-1219 is enacted to read:

63A-5b-1219.63A-5b-1219 .

(1)(1)(a) (a) There is created within the General Fund a restricted account known as the "Public School Construction Oversight Restricted Account." (b) The account shall be funded by:

- 47 - SB0164 compared with SB0164S02 (ii) may not be used for other division operations unrelated to public school construction oversight;

(e)- compliance42 monitoring- andEnrolled enforcement;Copy S.B.

164 (e) compliance monitoring and enforcement;

Section 2663A-5b-1220 is enacted to read:

63A-5b-1220.63A-5b-1220 .

- 48 - SB0164 compared with SB0164S02 (A) International Code Council commercial building plans examination (B3);or(B3); {(B) {International Code Council commercial energy plans examination (78);

or}or }(B) (C){(B)} structural peer review certification for educational facilities;

(4){(5)}(5) The division may remove individuals from the approved roster for:

(a)- failure43 to- maintainS.B. required certifications;

164 Enrolled Copy (a) failure to maintain required certifications;

(5){(6)}(6) The division shall:

Section 2763A-5b-1221 is enacted to read:

63A-5b-1221.63A-5b-1221 .

and (c) a third member with relevant expertise selected jointly by the members described in Subsections (2)(2)(a) (a) and (b).

(a) shall be selected based on expertise relevant to the specific matter under {appeal,which } appeal, which may include:

- 49 - SB0164 compared with SB0164S02 (i) construction management;

(d)- architect44 and- designEnrolled professionalCopy feeS.B. determinations under Section 63A-5b-1204;

164 (d) architect and design professional fee determinations under Section 63A-5b-1204;

- 50 - SB0164 compared with SB0164S02 (6) Upon receiving a notice of appeal:

(a)- conduct45 proceedings- inS.B. accordance with Title 63G, Chapter 4, Administrative Procedures Act, to the extent applicable;

164 Enrolled Copy (a) conduct proceedings in accordance with Title 63G, Chapter 4, Administrative Procedures Act, to the extent applicable;

and - 51 - SB0164 compared with SB0164S02 (c) does not prevent either party from seeking emergency relief through the courts if immediate and irreparable harm would result from delay.

(b) costs of expert review shall be shared equally by the LEA and the division unless the panel- determines46 otherwise- basedEnrolled onCopy theS.B. outcome;

164 panel determines otherwise based on the outcome;

Section 2863A-5b-1222 is enacted to read:

63A-5b-1222.63A-5b-1222 .

-63G-6a-1302 52. - SB0164 compared with SB0164S02 63G-6a-1302.

(a)- when47 the- projectS.B. must be ready to be occupied;

164 Enrolled Copy (a) when the project must be ready to be occupied;

and - 53 - SB0164 compared with SB0164S02 (b) when entering into a subcontract that was not specifically included in the construction manager/manager/general general contractor's cost proposal, the construction manager/general contractor shall procure the subcontractor by using a standard procurement process, or an exception to the requirement to use a standard procurement process, described in Part 8, Exceptions to Procurement Requirements, in the same manner as if the subcontract work was procured directly by the procurement unit.

Section- 30.48 - Enrolled Copy S.B.

164 Section 30.

This Bill Repeals:

Effective date.

2-12-26 2:02 PM - 5449 -