UT SB0164

Transfers oversight of public school construction from the State Board of Education to the Division of Facilities Construction and Management (DFCM), giving the division exclusive permitting authority and plan review responsibilities for school construction projects

Requires LEAs to obtain DFCM approval before construction, including verification that projects fit within established cost matrices, and mandates use of inspectors from a division-approved roster rather than allowing independent inspector selection

Creates enforcement mechanisms including administrative penalties up to $25,000 for violations, mandatory compliance audits of 10% of projects annually, and authority to suspend construction permits for serious violations

Establishes a construction oversight fee paid by LEAs to fund division activities, with revenue deposited into a new Public School Construction Oversight Restricted Account, and allows the division to provide fee-for-service construction management for districts lacking internal capacity

Takes effect July 1, 2026, with full compliance required by January 1, 2027, and creates an appeals panel to resolve disputes between LEAs and the division regarding construction oversight decisions