1. (1) 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 oversight, building official, plan review, and administration fee in accordance with a fee schedule established by division rule under Section 63A-5b-1217 and approved by the rate committee created in Section 63A-1-114.

2. (2) The construction oversight fee:

   1. (a) applies to all projects subject to this part, regardless of whether the division is providing direct construction management services;
   2. (b) shall be established by division rule under Section 63A-5b-1217 to recover the reasonable costs of oversight activities and may be reduced or waived for LEAs with delegated oversight authority; and
   3. (c) may be included in the LEA's bond authorization or other funding mechanism.

3. (3) The construction oversight fee assessed to an LEA shall fund the division's activities, including:

   1. (a) plan review and permitting;
   2. (b) inspection roster maintenance and oversight;
   3. (c) cost database development and maintenance;
   4. (d) training and technical assistance programs;
   5. (e) compliance monitoring and enforcement;
   6. (f) online document management system operation;
   7. (g) standardized design template development; and
   8. (h) other oversight activities required by this part.

4. (4) For projects where the division provides direct construction management services under Section 63A-5b-1213:

   1. (a) the LEA shall not pay duplicative fees; and
   2. (b) the division shall clearly delineate the fee structure for oversight activities.

5. (5) The division shall:

   1. (a) deposit all construction oversight fees into the restricted account established in Section 63A-5b-1219;
   2. (b) use fee revenue exclusively for public school construction oversight activities;
   3. (c) report annually to the Legislature on fee revenue and expenditures; and
   4. (d) adjust the fee rate only through legislative action.
6. (6) An LEA may appeal fee assessments or payment schedule requirements under this section to the appeals panel established under Section 63A-5b-1221.

Enacted by Chapter 225, 2026 General Session