EDC § 17376

(a) If the board determines that a school district or county office of education is in default, or projected to default, with the requirements of any programs administered by the board, the board may withhold any new approvals for that school district or county office of education under this article. The board may require sufficient evidence from the applicant that a default or projected default has been addressed before making any new approvals.

(b) The withholding of any new approvals pursuant to this section shall not, in and of itself, make the board liable for any tort, breach of contract, or any other action for damages caused by an applicant arising from new construction or modernization by the applicant. These contracts include, but are not limited to, contracts between the applicant and its construction contractors, construction managers, architects, or engineers. The applicant shall be liable for all torts, breaches of contract, or any other actions for damages caused by the applicant.

(c) For purposes of this section, “new approvals” include, but are not limited to, unfunded approvals, apportionments, fund releases, and closeout audit adjustments.