UtahS.B. 1642026 General SessionSenate

School Construction Amendments

Sponsored By: Chris H. Wilson (Republican)

Signed by Governor

EducationK-12 EducationSchool FinanceDepartment of Government OperationsGovernment Operations (State Issues)Local Education Agencies (LEAs)Facilities, Construction, and ManagementSchool Districts

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Bill Overview

Analyzed Economic Effects

18 provisions identified: 1 benefits, 1 costs, 16 mixed.

Schools Get Another Building Contract Option

Beginning July 1, 2026, the law allows state procurement rules to authorize design-build contracts for schools and state buildings. This option combines design and construction under one provider. Projects can use it only when the applicable procurement rules authorize it; the law does not require its use.

Schools pay state construction oversight fees

School agencies must pay state construction oversight fees even when the division does not manage their projects. Agencies hiring an approved project manager for the listed services are exempt; delegated oversight can also reduce or eliminate fees. The rate-committee-approved schedule must cover reasonable oversight costs, is published annually, and changes only through legislative action. Beginning July 1, 2026, oversight fees, management fees, penalties, and interest enter a dedicated account whose money carries forward. Account money can fund only school construction oversight, and fees must support that work without additional appropriations.

One state permit for school construction

Beginning July 1, 2026, only the state facilities division issues public school construction permits; separate local permits are barred. The division must approve or deny construction plans within 10 business days. Construction cannot start without written plan approval and a permit. Local zoning generally remains, and schools must coordinate new sites with local governments on traffic and safety. Counties may request free construction walk-throughs at times convenient for the school and share recommendations.

School Building Oversight Shifts From Cities

The law shifts public school building oversight to the state. Cities and counties cannot set their own policies or rules for permitting or inspecting these buildings. Where this ban applies, they also cannot provide or charge for those inspections. Required local health department regulation and later health inspections remain allowed.

School construction violations bring state penalties

The division randomly audits 10% of projects annually and audits projects more than 20% above cost benchmarks. It also audits agencies with prior violations and projects with reported safety concerns. Penalties are capped at $1,000 for minor violations, $5,000 for significant violations, and $25,000 for safety risks or willful noncompliance. Penalties require written notice, reasonable correction time, and a hearing opportunity; failing to provide requested project information can draw up to $5,000. The division can suspend or revoke permits and require inspections at school-agency expense. Serious life-safety violations can trigger work stoppages, third-party oversight at agency expense, remedial training, or licensing referrals.

Schools gain review powers and appeals

Beginning July 1, 2026, qualified school agencies can receive delegated planning, design-review, and construction-plan approval powers, with proportionate or zero oversight fees. Agencies must document capacity and internal controls; state reviews continue, and material violations or substantial safety or fiscal risks allow revocation. Agencies can also appeal specified project decisions to a three-member panel within 30 days after receiving the written decision. Project timelines and permit expiration dates pause, and related added enforcement is barred unless needed for imminent safety concerns. Construction proceeds during an appeal only with a division-granted stay; panel decisions are binding but subject to judicial review.

Schools must check systems and upkeep

All new public school construction and major renovations over $5 million require commissioning, a check of building systems. This checks mechanical, electrical, plumbing, and exterior systems against their design, with staff training and written records. Buildings over 20 years old need condition assessments every five years by qualified outside architectural and engineering firms. Assessment results must feed into deferred-maintenance reporting. Beginning July 1, 2029, schools must report deferred-maintenance items over $25,000 annually.

Small schools get lighter building oversight

Micro-education entities and home-based microschools are exempt from the new public school construction oversight system. Other applicable building codes and local permits still apply, subject to the law's specific occupancy rules. Micro-education facilities may serve up to 100 students; alternative occupancy types remain subject to fire, sprinkler, and exit requirements. Home-based microschools count as primary dwellings, and below-ground use requires a residential-code-compliant escape window. Charter schools, micro-education entities, and home-based microschools are permitted in every zoning district and receive first-priority processing. Localities can apply objective zoning standards, but parking, added building-code requirements, and fees face statutory limits.

State controls when school buildings open

The division issues permanent occupancy certificates only after required inspections, safety checks, records, and corrections are complete. It must review complete applications within 10 business days; cities and counties cannot require another occupancy certificate. School agencies must notify the division within 10 days after occupancy begins. Temporary occupancy requires safe, code-compliant space separated from construction and a timeline for finishing the work. Temporary certificates end when permanent approval arrives or after 180 days, whichever comes first, unless extended for good cause.

State takes charge of school construction

Utah's Division of Facilities Construction and Management sets statewide school building, cost, access, and maintenance rules. The education board keeps its educational authority and coordinates through a school construction liaison. Schools must consider grade levels, student needs, year-round use, and how building design supports learning. Beginning July 1, 2026, the division must create rules, forms, training, and an online system; earlier construction statutes are repealed. The division must also audit projects completed in 2024, 2025, and 2026. Projects starting construction after January 1, 2027, must fully follow the new requirements.

Stronger safety checks for school buildings

Beginning July 1, 2026, school agencies may use only inspectors and plan reviewers on the division's approved roster. These professionals need applicable licenses, certifications, school-construction training, and continuing education; certified inspectors cannot work for the contractor. State reviews cover fire safety, accessibility, insulation, building systems, structure, security, and emergency response before permits issue. Schools must provide required inspection reports and document corrections before proceeding. Structural-observation reports apply to buildings with occupancy above 250 and Risk Category III buildings; special inspections follow building-code requirements.

School contractors face stricter qualification rules

For school projects over $500,000, agencies must select contractors from the division's qualified registry while still using competitive procurement. Contractors must meet experience, financial-capacity, and performance standards, keep licenses and insurance current, take training, and accept project evaluations. The registry does not let the division choose contractors for individual school projects. School contracts must include state-required terms, insurance standards, and dispute procedures. Contracts over $50,000 require payment and performance bonds.

School Design Fees Face State Limits

School agencies must choose architects and design professionals based on skills and qualifications, not price alone. The state must publish maximum basic and complexity-related fees based on project size, complexity, regional markets, industry standards, and past costs. Agencies must submit proposed contracts for state review and show through competitive procurement that fees reflect fair market value within those limits. To pay more, agencies must request an exception before seeking proposals, explain unique needs that prevent meeting the limits, and get written state approval. The state must respond within 15 business days, and agencies can appeal fee decisions.

School projects face building method limits

School construction contracts must follow Utah's procurement code. Projects over $3 million must use design-bid-build, design-build, or a construction manager/general contractor method. The construction manager method requires state approval, experienced management staff, and an approved project management plan. Projects under $3 million must use design-bid-build unless the division approves another method. The division must train school agencies on these choices and require added oversight and reporting for construction-manager or general-contractor projects.

Schools get templates and architect limits

School construction and alteration plans must be prepared by a licensed architect and follow state cost controls. The division sets maximum design-professional fees by project size, complexity, and region; higher-fee contracts need its approval. Fee-exception requests require a response within 15 business days. The division must maintain standard school designs and update them every five years. Schools using these designs may receive lower architect fees and 10-business-day plan review without significant changes; modifications require coordination and procurement rules still apply.

Schools must report construction costs online

School agencies must use the division's online system for plans, inspections, permits, occupancy records, project updates, and monthly construction reports. Standard cost reports separate construction, design and other indirect costs, and equipment, and document changes and final cost per square foot. The division provides training and support and builds a database covering projects completed after January 1, 2025. The database framework and historical collection begin by July 1, 2027; preliminary elementary and secondary benchmarks follow by July 1, 2028. Broader building-type and regional benchmarks are due July 1, 2029, with the full system completed by July 1, 2030. Benchmarks update quarterly, cost differences above 15% trigger investigation, and annual legislative reporting begins December 1, 2027.

Schools need approval for project costs

Before construction, school agencies must submit project scope, specifications, costs, funding, and schedules for state approval. The division must review applications within 15 business days and cannot issue permits before approving costs under its cost matrix. Costs must account for regional factors, market conditions, and industry standards. Contracts over $1 million require comparison with state benchmarks once a baseline exists and comparisons are reasonably available. Costs more than 10% above benchmarks need written justification, proof of procurement compliance, and division approval before signing.

State manages school projects for fees

School agencies can request state construction management for projects over $3.5 million, complex projects, or projects lacking internal staff capacity. The division must provide requested help when capacity allows and must provide services after repeated compliance failures. Services include procurement, contractor selection, inspections coordination, scheduling, and cost control; schools retain educational-program authority. Agencies reimburse direct project costs and pay administrative fees capped at 3% of total project cost. Projects under $3.5 million also face an actual-cost limit, and agencies cannot pay duplicate fees.

Sponsors & Cosponsors

Sponsor

  • Chris H. Wilson

    Republican • Senate

Cosponsors

  • Thomas W. Peterson

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 109 • No: 37

House vote • 2/26/2026

House/ passed 3rd reading

Yes: 60 • No: 13

House vote • 2/26/2026

House/ circled

Yes: 0 • No: 0

House vote • 2/26/2026

House/ uncircled

Yes: 0 • No: 0

House vote • 2/24/2026

House Comm - Favorable Recommendation

Yes: 6 • No: 4

Senate vote • 2/18/2026

Senate/ passed 3rd reading

Yes: 20 • No: 9

Senate vote • 2/17/2026

Senate/ substituted

Yes: 0 • No: 0

Senate vote • 2/17/2026

Senate/ uncircled

Yes: 0 • No: 0

Senate vote • 2/17/2026

Senate/ passed 2nd reading

Yes: 18 • No: 9

Senate vote • 2/9/2026

Senate/ circled

Yes: 0 • No: 0

Senate vote • 1/26/2026

Senate Comm - Favorable Recommendation

Yes: 5 • No: 2

Actions Timeline

  1. Governor Signed

    3/19/2026
  2. Senate/ to Governor

    3/16/2026Senate
  3. Senate/ received enrolled bill from Printing

    3/16/2026Senate
  4. Senate/ enrolled bill to Printing

    3/5/2026Senate
  5. Enrolled Bill Returned to House or Senate

    3/5/2026
  6. Draft of Enrolled Bill Prepared

    3/2/2026
  7. Bill Received from Senate for Enrolling

    3/2/2026
  8. Senate/ signed by President/ sent for enrolling

    2/26/2026Senate
  9. Senate/ received from House

    2/26/2026Senate
  10. House/ to Senate

    2/26/2026House
  11. House/ signed by Speaker/ returned to Senate

    2/26/2026House
  12. House/ passed 3rd reading

    2/26/2026House
  13. House/ uncircled

    2/26/2026House
  14. House/ circled

    2/26/2026House
  15. House/ 3rd reading

    2/26/2026House
  16. House/ 2nd reading

    2/25/2026House
  17. House/ committee report favorable

    2/25/2026House
  18. House Comm - Favorable Recommendation

    2/24/2026
  19. House/ to standing committee

    2/19/2026House
  20. House/ 1st reading (Introduced)

    2/18/2026House
  21. House/ received from Senate

    2/18/2026House
  22. Senate/ to House

    2/18/2026Senate
  23. Senate/ passed 3rd reading

    2/18/2026Senate
  24. Senate/ 3rd reading

    2/18/2026Senate
  25. Senate/ passed 2nd reading

    2/17/2026Senate

Bill Text

  • Enrolled

    3/5/2026

  • Substitute #2

    2/12/2026

  • Substitute #1

    2/6/2026

  • Introduced

    1/20/2026

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