1. (1) If an LEA fails to comply with requirements established under this part, the division may:

   1. (a) issue written warnings and compliance orders;
   2. (b) suspend or revoke construction permits;
   3. (c) require additional inspections at the LEA's expense;
   4. (d) impose administrative penalties as provided in rule; and
   5. (e) refer matters to appropriate authorities for further action.

2. (2) The division may not assess administrative penalties that exceed:

   1. (a) $1,000 for minor violations;
   2. (b) $5,000 for significant violations; and
   3. (c) $25,000 for violations that pose safety risks or involve willful noncompliance.

3. (3) Before imposing penalties, the division shall:

   1. (a) provide written notice of alleged violations;
   2. (b) allow reasonable time for correction;
   3. (c) provide opportunity for a hearing; and
   4. (d) consider the LEA's compliance history and efforts to remedy violations.
4. (4) Penalty funds collected shall be deposited into the account established in Section 63A-5b-1219.
5. (5) An LEA may appeal enforcement actions, penalties, or other division decisions under this section to the appeals panel established under Section 63A-5b-1221.

6. (6) The division shall conduct mandatory compliance audits of:

   1. (a) 10% of all projects annually, selected randomly;
   2. (b) any project exceeding cost benchmarks by more than 20%;
   3. (c) any LEA with previous compliance violations; and
   4. (d) any project with reported safety concerns.

7. (7) For serious violations involving life safety, the division may:

   1. (a) require immediate work stoppage until corrections are made;
   2. (b) mandate third-party oversight at an LEA's expense;
   3. (c) require remedial training for LEA officials; and
   4. (d) refer matters to the applicable professional licensing board.

Enacted by Chapter 225, 2026 General Session