Bill Text: CA SB1227 | 2023-2024 | Regular Session | Amended

California Senate Bill 1227

Bill Title: Real property development: San Francisco: downtown revitalization zone: welfare tax exemption and California Environmental Quality Act exemption and streamlining.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-24 - From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 1.) (April 24). Re-referred to Com. on APPR. [SB1227 Detail]

Download: California-2023-SB1227-Amended.html

Amended IN Senate April 18, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 1227

Introduced by Senator Wiener

February 15, 2024

An act to add and repeal Section 21080.59 of of, and to add and repeal Chapter 8 (commencing with Section 21189.100) of Division 13 of, the Public Resources Code, and to amend Section 214 of the Revenue and Taxation Code, relating to ~~housing.~~ real property development.

LEGISLATIVE COUNSEL'S DIGEST

SB 1227, as amended, Wiener. ~~Housing:~~ Real property development: San Francisco: downtown revitalization zone: welfare tax exemption and California Environmental Quality Act ~~exemptions.~~ exemption and streamlining.

(1) The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.

This bill would, until January 1, ~~2035,~~ 2032, exempt from the requirements of CEQA development projects, as defined, meeting certain requirements occurring within ~~a specified area~~ the downtown revitalization zone, as defined, in the City and County of San Francisco. The bill would require the prime contractor and subcontractors on the development project to provide an affidavit under the penalty of perjury regarding the use of skilled and trained workforce on the development project, as provided. Because the bill would expand the crime of perjury and would increase the duties of the lead agency by requiring it to determine the applicability of the exemption for projects located in the City and County of San Francisco, this bill would impose a state-mandated local program.

The Jobs and Economic Improvement Through Environmental Leadership Act of 2021 (Leadership Act) authorizes the Governor, before January 1, 2032, to certify projects that meet specified requirements for streamlining benefits related to CEQA, including the requirement that judicial actions challenging the action of a lead agency for projects certified by the Governor be resolved, to the extent feasible, within 270 days after the filing of the record of proceedings with the court, and a requirement that the applicant agrees to pay the costs of preparing the record of proceedings for the project concurrent with review and consideration of the project, as specified. The Leadership Act provides that if a lead agency fails to approve a project certified by the Governor before January 1, 2033, the certification is no longer valid. The Leadership Act provides that it is repealed on January 1, 2034.
This bill would authorize the Governor to certify projects located in the downtown revitalization zone in the City and County of San Francisco that are not exempt from CEQA pursuant to the above provisions and that meet certain requirements for streamlining benefits related to CEQA, including the requirement that judicial actions challenging the action of a lead agency for projects certified by the Governor be resolved, to the extent feasible, within 270 days after the filing of the record of proceedings with the court, and a requirement that the applicant agrees to pay the costs of preparing the record of proceedings for the project concurrent with review and consideration of the project, as specified. The bill would specify that the certification of the project is voided if the lead agency, in approving the project, adopts a statement of overriding consideration for environmental impacts identified in the EIR that cannot be avoided or mitigated to less than significant. The bill would provide that if a lead agency fails to approve a project certified by the Governor before January 1, 2031, the certification is no longer valid. The bill would repeal these provisions on January 1, 2032. By increasing the duties of a lead agency in its implementation of CEQA, this bill would impose a state-mandated local program.

(2) Existing property tax law, in accordance with the California Constitution, provides for a “welfare exemption” for property used exclusively for religious, hospital, scientific, or charitable purposes and that is owned or operated by certain types of nonprofit entities, if certain qualifying criteria are met.

This bill would provide, for lien dates occurring on or after January 1, 2025, that property is within that welfare exemption and is entitled to a partial exemption equal to the percentage of the value of the property that is equal to the percentage that the number of units serving moderate-income households represents of the total number of residential units, if the property is used exclusively for rental housing and related facilities, is owned and operated by specified entities, and certain conditions are met. The bill would require, as part of those conditions, the owner of the property to certify, under penalty of perjury, specified information, the property to be located within the downtown revitalization zone of the City and County of San Francisco, as defined, and the owner of the property to claim the exemption within 5 years following the issuance of the first building permit for residential units on the property.

(3) This bill would make legislative findings and declarations as to the necessity of a special statute for the City and County of San Francisco.

(4) By expanding the crime of perjury, imposing additional duties on local tax officials, and increasing the duties of the lead agency by requiring it to determine the applicability of the CEQA exemption for projects located in the City and County of San Francisco, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for specified reasons.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

(5) Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.

This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES

The people of the State of California do enact as follows:

SECTION 1.

Section 21080.59 is added to the Public Resources Code, to read:

21080.59.

(a) For purposes of this section, the following definitions apply:

(1) (A) “Development project” means a project located within the downtown revitalization ~~zone.~~ zone that meets all of the following:

(i) (I) The project is fewer than 1,000 square feet.
(II) For a project that is 1,000 square feet or greater, the project is certified as meeting the requirements of the United States Green Building Council’s Leadership in Energy and Environmental Design (LEED) Platinum standards.
(ii) The project is located in an area that has a per capita vehicle miles traveled level that is 15 percent below the city or regional per capita vehicle miles traveled.
(iii) The project does not result in substantial harm to a building on a federal, state, or local historic registry.
(iv) The project does not result in any net additional emissions of greenhouse gases from demolition or construction.
(v) The project complies, as applicable, with all of the following:
(I) The requirement for payment of the transportation sustainability fee as required by Section 411A of the San Francisco Planning Code.
(II) The requirement for a transportation demand management program as required by Section 169 of the San Francisco Planning Code.
(III) The requirements of Section 413 of the San Francisco Planning Code.
(IV) The requirement for bicycle facilities as required by Sections 155.1 to 155.4, inclusive, of the San Francisco Planning Code.
(V) The requirement for car sharing as required by Section 166 of the San Francisco Planning Code.
(VI) The Electric Vehicle Charging in Commercial Parking Ordinance (Chapter 31 of the San Francisco Environment Code).
(VII) The requirements of Section 163 of the San Francisco Planning Code.
(VIII) The all-electric building permit requirements set forth in Section 106A.1.17 of the San Francisco Building Code and Administrative Bulletin 112 of the San Francisco Department of Building Inspection for a project meeting the criteria for the all-electric new construction as set forth in that ordinance and bulletin.
(IX) The requirements of Sections 4.103, 4.104, 4.105, 5.103, 5.104, and 5.105 of the San Francisco Green Building Code.
(X) The energy efficiency design rating and energy budget requirements set forth in Sections 4.201.3 and 5.201.1.1 of the San Francisco Green Building Code.
(XI) The energy inspection and energy conservation installation measures as required by Section 1212 or 1213 of the San Francisco Housing Code.
(XII) Sections 5.106.8, 5106.8.1, and 5106.8.2 of the California Green Building Standards Code (Part 11 of Title 24 of the California Code of Regulations).
(XIII) Stormwater and impervious surface requirements as required by Section 147 of the San Francisco Public Works Code.
(XIV) The upgrade for noncompliant fixtures and the maximum flush/flow limits as required by Section 5.103.1.2 of the San Francisco Green Building Code, Section 12A10 of the San Francisco Housing Code, or Section 1313A of the San Francisco Building Code.
(XV) The water budget for outdoor water consumption requirements as required by Chapter 63 (commencing with Section 63.1) of the San Francisco Administrative Code.
(XVI) The water conservation measures as required by the Commercial Water Conservation Ordinance (Chapter 13A (commencing with Section 1301A) of the San Francisco Building Code).
(XVII) The water efficiency upgrade standards as required by the Residential Water Conservation Ordinance (Chapter 12A (commencing with Section 12A01) of the San Francisco Housing Code).
(XVIII) The alternate water sources for toilets and urinal flushing irrigation and water budget calculation preparations as required by Article 12C (commencing with Section 12C.1) of the San Francisco Health Code for a project subject to that article.
(XIX) The photovoltaic energy system or living roof requirements as required by Chapter 26 (commencing with Section 2601) of the San Francisco Environment Code, Sections 4.201.2 and 5.201.1.2 of the San Francisco Green Building Code, and Section 149 of the San Francisco Planning Code.
(XX) The requirements for onsite generation from 100 percent greenhouse gas-free or renewable energy resources, or purchasing from 100 percent greenhouse gas-free or renewable energy resources, or both onsite generation and purchasing as required by the 100% Renewable Energy for Commercial Buildings Ordinance (Chapter 30 (commencing with Section 3000) of the San Francisco Environment Code).
(XXI) The requirements for infrastructure supporting the storage, collection, and loading of recyclables, compost, and solid waste as required by the Mandatory Recycling and Composting Ordinance (Chapter 19 (commencing with Section 1901) of the San Francisco Environment Code).
(XXII) The Construction and Demolition Debris Recovery Ordinance (Chapter 14 (commencing with Section 1400) of the San Francisco Environment Code), the Construction and Demolition Debris Recovery Program (Chapter 13B (commencing with Section 1301B) of the San Francisco Building Code), or Sections 4.103.2.3 and 5.103.1.3 of the San Francisco Green Building Code, including the requirement to submit a material reduction and recovery plan.
(XXIII) Requirements for tree planting and replacement as required by Section 806 of the San Francisco Public Works Code or Section 138.1 of the San Francisco Planning Code.
(XXIV) Requirements for runoff pollution prevention, an erosion and sediment control plan, and best management practices to prevent illicit discharge into the sewer system, as required by Article 4.2 (commencing with Section 146) of the San Francisco Public Works Code for a project subject to that article.
(XXV) Requirements preventing installation of equipment that contains chlorofluorocarbons or halons as required by Sections 5.508.1.2 and 5.508.2 of the California Green Building Standards Code.
(XXVI) The volatile organic compound emission limits and other requirements set forth in Sections 4.103.3.2, 5.103.1.9, 5.103.3.2, and 5.103.4.2 of the San Francisco Green Building Code.

(B) (i) “Development project” does not include ~~either~~ any of the following:

(I) A project that qualifies as a housing development project as defined in Section 65589.5 of the Government Code, unless that project is a student housing project.

(II) A project that contains any hotel use.

(III) A warehouse.

(ii) For purposes of determining whether a development project qualifies as a housing development project pursuant to subclause (I) of clause (i), in establishing the square footage, the development project includes both of the following:

(I) All projects proposed to be developed on the development project site, regardless of whether those projects occur.

(II) All projects developed on sites adjacent to the development project site subject to this section if, after January 1, 2024, the adjacent site had been subdivided from the site of the development project.

(2) “Downtown revitalization zone” means an area in the City and County of San Francisco bounded beginning at the intersection of Washington Street and The Embarcadero, running southerly along The Embarcadero and then King Street to 3rd Street, running northwesterly on 3rd Street to Townsend Street, running southwesterly along Townsend Street to 6th Street, running northwesterly along 6th Street to Mission Street, running southwesterly along Mission Street to 10th Street, running southeasterly along 10th Street to Minna Street, running southwesterly along Minna Street to Lafayette Street, running southeasterly along Lafayette Street to Howard Street, running southerly along Howard Street to the junction with the Central Freeway, running westerly along the Central Freeway to Market Street, running northeasterly along Market Street to Franklin Street, running northerly along Franklin Street to Golden Gate Avenue, running easterly along Golden Gate Avenue to Taylor Street, running northerly along Taylor Street to Turk Street, running easterly along Turk Street to Mason Street, running northerly along Mason Street to Ellis Street, running westerly along Ellis Street to Taylor Street, running northerly along Taylor Street to O’Farrell Street, running westerly along O’Farrell Street to Shannon Street, running northerly along Shannon Street to Geary Street, running easterly along Geary Street to Taylor Street, running northerly along Taylor Street to Bush Street, running easterly along Bush Street to Kearny Street, running northerly along Kearny Street to Sacramento Street, running easterly along Sacramento Street to Montgomery Street, running northerly along Montgomery Street to Washington Street, running easterly along Washington Street to The Embarcadero.

(3) “Health care expenditures” includes contributions under Section 401(a), 501(c), or 501(d) of the Internal Revenue Code and payments toward “medical care,” as defined in Section 213(d)(1) of the Internal Revenue Code.

(4) “Project labor agreement” means a prehire collective bargaining agreement that establishes terms and conditions of employment for a specific construction project or projects and is an agreement described in Section 158(f) of Title 29 of the United States Code.

(5) “Skilled and trained workforce” has the same meaning as set forth in Section 2601 of the Public Contract Code.

(b) Subject to subdivisions (c) and (d), this division does not apply to a development project located in the downtown revitalization zone meeting all of the following:

(1) The development project is located at a site that has a general plan designation allowing for, and that is ~~zoned~~ zoned, as of January 1, 2025, for, commercial use, institutional use, student housing use, or mixed use.

(2) Portions of the development project for residential use, if any, comply with applicable inclusionary housing requirements.

(3) The development project does not require the demolition of any of the following:

(A) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income.

(B) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power.

(C) Housing that has been occupied by tenants within 10 years before the submission of an application for the development project.

~~(D)A historic structure that is placed on a national, state, or local historic register.~~
(D) A building that is over 75 years old.

(E) An existing hotel that has operated within 10 years before the submission of an application for the development project.

(1) Either prime farmland or farmland of statewide importance, as defined pursuant to United States Department of Agriculture land inventory and monitoring criteria, as modified for California, and designated on the maps prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation, or land zoned or designated for agricultural protection or preservation by a local ballot measure that was approved by the voters of that jurisdiction.

(2) Wetlands, as defined in the United States Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993).

(3) A site within a very high fire hazard severity zone, as determined by the State Fire Marshal pursuant to Section 51178 of the Government Code, or within the state responsibility area, as defined in Section 4102. This paragraph does not apply to sites that have adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development project, including, but not limited to, standards established under all of the following or their successor provisions:

(A) Section 4291 of this code or Section 51182 of the Government Code, as applicable.

(B) Section 4290.

(4) A hazardous waste site that is listed pursuant to Section 65962.5 of the Government Code or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Section 78765 of the Health and Safety Code, unless either of the following apply:

(A) The site is an underground storage tank site that received a uniform closure letter issued pursuant to subdivision (g) of Section 25296.10 of the Health and Safety Code based on closure criteria established by the State Water Resources Control Board for residential use or residential mixed uses. This section does not alter or change the conditions to remove a site from the list of hazardous waste sites listed pursuant to Section 65962.5 of the Government Code.

(B) The State Department of Public Health, the State Water Resources Control Board, the Department of Toxic Substances Control, or a local agency making a determination pursuant to subdivision (c) of Section 25296.10 of the Health and Safety Code, has otherwise determined that the site is suitable for residential use or residential mixed uses.

(5) Within a delineated earthquake fault zone as determined by the State Geologist in any official maps published by the State Geologist, unless the development project complies with applicable seismic protection building code standards adopted by the California Building Standards Commission under the California Building Standards Law (Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code), and by any local building department under Chapter 12.2 (commencing with Section 8875) of Division 1 of Title 2 of the Government Code.

(6) Within a special flood hazard area subject to inundation by the 1 percent annual chance flood (100-year flood) as determined by the Federal Emergency Management Agency in any official maps published by the Federal Emergency Management Agency. If a project applicant is able to satisfy all applicable federal qualifying criteria in order to provide that the site satisfies this paragraph and is otherwise eligible for an exemption under this section, a local government shall not refuse to exempt the project pursuant to this section on the basis that the project applicant did not comply with any additional permit requirement, standard, or action adopted by that local government that is applicable to that site. A development project may be located on a site described in this paragraph if ~~either~~ any of the following are met:

(A) The site has been subject to a Letter of Map Revision prepared by the Federal Emergency Management Agency and issued to the local jurisdiction.

(B) The site meets Federal Emergency Management Agency requirements necessary to meet minimum flood plain management criteria of the National Flood Insurance Program pursuant to Part 59 (commencing with Section 59.1) and Part 60 (commencing with Section 60.1) of Subchapter B of Chapter I of Title 44 of the Code of Federal Regulations.

(C) Within a regulatory floodway as determined by the Federal Emergency Management Agency in any official maps published by the Federal Emergency Management Agency, unless the development project has received a no-rise certification in accordance with Section 60.3(d)(3) of Title 44 of the Code of Federal Regulations. If a project applicant is able to satisfy all applicable federal qualifying criteria in order to provide that the site satisfies this paragraph and is otherwise eligible for an exemption under this section, a local government shall not refuse to exempt the development project under this section on the basis that the project applicant did not comply with any additional permit requirement, standard, or action adopted by that local government that is applicable to that site.

(7) Lands identified for conservation in an adopted natural community conservation plan pursuant to the Natural Community Conservation Planning Act (Chapter 10 (commencing with Section 2800) of Division 3 of the Fish and Game Code), habitat conservation plan pursuant to the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), or other adopted natural resource protection plan.

(8) Habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code).

(9) Lands under conservation easement.

(10) A site previously used for housing that was occupied by tenants and the housing was demolished within 10 years from the date of the submission of an application for the development project.

(11) A site containing housing units that are occupied by tenants and the units at the property are, or were, subsequently offered for sale to the general public by a subdivider or subsequent owner of the property.

(12) The site is subject to the Mobilehome Residency Law (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2 of Division 2 of the Civil Code), the Recreational Vehicle Park Occupancy Law (Chapter 2.6 (commencing with Section 799.20) of Title 2 of Part 2 of Division 2 of the Civil Code), the Mobilehome Parks Act (Part 2.1 (commencing with Section 18200) of Division 13 of the Health and Safety Code), or the Special Occupancy Parks Act (Part 2.3 (commencing with Section 18860) of Division 13 of the Health and Safety Code).

(d) Except as provided in subdivision (e), an applicant of a development project that is exempted from this division pursuant to this section shall require in contracts with construction contractors, and shall certify to the lead agency, that all of the following requirements, as applicable, will be met in project construction:

(1) The development project that is not in its entirety a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code shall be subject to all of the following:

(A) All construction workers employed in the execution of the development project shall be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the Labor Code, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.

(B) The project applicant shall ensure that the prevailing wage requirement is included in all contracts for the performance of the work for those portions of the development project that are not a public work.

(C) All contractors and subcontractors for those portions of the development project that are not a public work shall comply with both of the following:

(i) Pay to all construction workers employed in the execution of the work at least the general prevailing rate of per diem wages, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.

(ii) Maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided in that section. This subclause does not apply if all contractors and subcontractors performing work on the development project are subject to a project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the development project and provides for enforcement of that obligation through an arbitration procedure.

(2) (A) The obligation of the contractors and subcontractors to pay prevailing wages pursuant to this subdivision may be enforced by any of the following:

(i) The Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code, within 18 months after the completion of the development project.

(ii) An underpaid worker through an administrative complaint or civil action.

(iii) A joint labor-management committee through a civil action under Section 1771.2 of the Labor Code.

(B) If a civil wage and penalty assessment is issued pursuant to this subdivision, the contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages pursuant to Section 1742.1 of the Labor Code.

(C) This paragraph does not apply if all contractors and subcontractors performing work on the development project are subject to a project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the development project and provides for enforcement of that obligation through an arbitration procedure.

(3) Notwithstanding subdivision (c) of Section 1773.1 of the Labor Code, the requirement that employer payments not reduce the obligation to pay the hourly straight time or overtime wages found to be prevailing does not apply to those portions of the development project that are not a public work if otherwise provided in a bona fide collective bargaining agreement covering the worker.

(4) The requirement of paragraph (1) to pay at least the general prevailing rate of per diem wages does not preclude use of an alternative workweek schedule adopted pursuant to Section 511 or 514 of the Labor Code.

(5) For a development project over 40,000 gross square feet, all of the following apply:

(A) The project applicant shall require in contracts with construction contractors and shall certify to the lead agency that each contractor of any tier who will employ construction craft employees or will let subcontracts for at least 1,000 hours shall satisfy the requirements in subparagraphs (B) and (C). A construction contractor is deemed in compliance with subparagraphs (B) and (C) if it is signatory to a valid collective bargaining agreement that requires the use of registered apprentices and expenditures on health care for employees and dependents.

(B) A contractor with construction craft employees shall either participate in an apprenticeship program approved by the California Division of Apprenticeship Standards pursuant to Section 3075 of the Labor Code, or request the dispatch of apprentices from a state-approved apprenticeship program under the terms and conditions set forth in Section 1777.5 of the Labor Code. A contractor without construction craft employees shall show a contractual obligation that its subcontractors comply with this subparagraph.

(C) Each contractor with construction craft employees shall make health care expenditures for each employee in an amount per hour worked on the development project equivalent to at least the hourly pro rata cost of a Covered California Platinum level plan for two adults 40 years of age and two dependents 0 to 14 years of age for the Covered California rating area in which the development project is located. A contractor without construction craft employees shall show a contractual obligation that its subcontractors comply with this subparagraph. Qualifying expenditures shall be credited toward compliance with prevailing wage payment requirements set forth in this paragraph.

(D) (i) The project applicant shall provide to the lead agency, on a monthly basis while its construction contracts on the development project are being performed, a report demonstrating compliance with subparagraphs (B) and (C). The reports shall be considered public records under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall be open to public inspection.

(ii) A project applicant that fails to provide the monthly report shall be subject to a civil penalty for each month for which the report has not been provided, in the amount of 10 percent of the dollar value of construction work performed by that contractor on the development project in the month in question, up to a maximum of ten thousand dollars ($10,000). Any contractor or subcontractor that fails to comply with subparagraph (B) or (C) shall be subject to a civil penalty of two hundred dollars ($200) per day for each worker employed in contravention of subparagraph (B) or (C).

(iii) Penalties may be assessed by the Labor Commissioner within 18 months of completion of the development project using the procedures for issuance of civil wage and penalty assessments specified in Section 1741 of the Labor Code, and may be reviewed pursuant to Section 1742 of the Labor Code. Penalties shall be deposited in the State Public Works Enforcement Fund established pursuant to Section 1771.3 of the Labor Code.

(E) Each construction contractor shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code. Each construction contractor shall submit payroll records directly to the Labor Commissioner at least monthly in a format prescribed by the Labor Commissioner in accordance with subparagraph (A) of paragraph (3) of subdivision (a) of Section 1771.4 of the Labor Code. The records shall include a statement of fringe benefits. Upon request by a joint labor-management cooperation committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a), the records shall be provided pursuant to subdivision (e) of Section 1776 of the Labor Code.

(F) All construction contractors shall report any change in apprenticeship program participation or health care expenditures to the lead agency within 10 business days, and shall reflect those changes on the monthly report. The reports shall be considered public records pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall be open to public inspection.

(G) A joint labor-management cooperation committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) shall have standing to sue a construction contractor for failure to make health care expenditures pursuant to subparagraph (C) in accordance with Section 218.7 or 218.8 of the Labor Code.

(6) For a development project over 40,000 square feet that does not include residential use, or for a development project over 40,000 square feet that includes residential uses and that is over 85 feet in height above grade, all of the following skilled and trained workforce provisions apply:

(A) Except as provided in subparagraph (B), the project applicant shall enter into construction contracts with prime contractors only if all of the following are satisfied:

(i) The contract contains an enforceable commitment that the prime contractor and subcontractors at every tier will use a skilled and trained workforce to perform work on the development project that falls within an apprenticeable occupation in the building and construction trades. However, this enforceable commitment requirement shall not apply to any scopes of work if new bids are accepted pursuant to clause (i) of subparagraph (B).

(ii) The project applicant or prime contractor shall establish minimum bidding requirements for subcontractors that are objective to the maximum extent possible. The project applicant or prime contractor shall not impose any obstacles in the bid process for subcontractors that go beyond what is reasonable and commercially customary. The project applicant or prime contractor shall accept bids submitted by any bidder that meets the minimum criteria set forth in the bid solicitation.

(iii) The prime contractor has provided an affidavit under penalty of perjury that, in compliance with this subparagraph, it will use a skilled and trained workforce and will obtain from its subcontractors an enforceable commitment to use a skilled and trained workforce for each scope of work in which it receives at least three bids attesting to satisfaction of the skilled and trained workforce requirements.

(iv) If a prime contractor or subcontractor is required to provide an enforceable commitment that a skilled and trained workforce will be used to complete a contract or the development project, the commitment shall be made in an enforceable agreement with the project applicant that provides the following:

(I) The prime contractor and subcontractors at every tier will comply with this subparagraph.

(II) The prime contractor will provide the project applicant, on a monthly basis while the development project or contract is being performed, a report demonstrating compliance by the prime contractor.

(III) The prime contractor shall provide the project applicant, on a monthly basis while the development project or contract is being performed, the monthly reports demonstrating compliance submitted to the prime contractor by the affected subcontractors.

(B) If a prime contractor fails to receive at least three bids in a scope of construction work from subcontractors that attest to satisfying the skilled and trained workforce requirements as described in this paragraph, the prime contractor may accept new bids for that scope of work. The prime contractor need not require that a skilled and trained workforce be used by the subcontractors for that scope of work.

(C) If the skilled and trained workforce requirements of this paragraph apply, the prime contractor shall require subcontractors to provide, and subcontractors on the development project shall provide, both of the following to the prime contractor:

(i) An affidavit signed under penalty of perjury that a skilled and trained workforce shall be employed on the development project.

(ii) Reports on a monthly basis, while the development project or contract is being performed, demonstrating compliance with this paragraph.

(D) Upon issuing any invitation or bid solicitation for the development project, but no less than seven days before the bid is due, the project applicant shall send a notice of the invitation or solicitation that describes the development project to the following entities within the jurisdiction of the proposed development project site:

(i) A bona fide labor organization representing workers in the building and construction trades who may perform work necessary to complete the development project and the local building and construction trades council.

(ii) An organization representing contractors that may perform work necessary to complete the development project, including any contractors’ association or regional builders’ exchange.

(E) The project applicant or prime contractor shall, within three business days of a request by a joint labor-management cooperation committee established pursuant to the federal Labor Management Cooperation 8 Act of 1978 (29 U.S.C. Sec. 175a), provide all of the following:

(i) The names and Contractors State License Board numbers of the prime contractor and any subcontractors that submitted a proposal or bid for the development project.

(ii) The names and Contractors State License Board numbers of contractors and subcontractors that are under contract to perform construction work.

(F) (i) The project applicant shall provide to the lead agency, on a monthly basis while the development project or contract is being performed, a report demonstrating that the self-performing prime contractor and all subcontractors used a skilled and trained workforce. A monthly report provided to the lead agency pursuant to this clause shall be a public record under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall be open to public inspection. A project applicant that fails to provide a complete monthly report shall be subject to a civil penalty of 10 percent of the dollar value of construction work performed by that contractor on the development project in the month in question, up to a maximum of ten thousand dollars ($10,000) per month for each month for which the report has not been provided.

(ii) Any subcontractors or prime contractor self-performing work subject to the skilled and trained workforce requirements under this paragraph that fails to use a skilled and trained workforce shall be subject to a civil penalty of two hundred dollars ($200) per day for each worker employed in contravention of the skilled and trained workforce requirement. Penalties may be assessed by the Labor Commissioner within 18 months of completion of the development project using the same issuance of civil wage and penalty assessments pursuant to Section 1741 of the Labor Code and may be reviewed pursuant to the same procedures in Section 1742 of the Labor Code. The prime contractor shall not be jointly liable for violations of this paragraph by subcontractors. Penalties shall be paid to the State Public Works Enforcement Fund or the locality of the lead agency or its labor standards enforcement agency, depending on the lead entity performing the enforcement work.

(iii) Any provision of a contract or agreement of any kind between a project applicant and a prime contractor that purports to delegate, transfer, or assign to a prime contractor any obligations of or penalties incurred by a project applicant shall be deemed contrary to public policy and shall be void and unenforceable.

(G) (i) This paragraph does not apply if all contractors, subcontractors, and craft unions performing work on the development project are subject to a multicraft project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the development project and provides for enforcement of that obligation through an arbitration procedure. The multicraft project labor agreement shall include all construction crafts with applicable coverage determinations for the specified scopes of work on the development project pursuant to Section 1773 of the Labor Code and shall be executed by all applicable labor organizations regardless of affiliation.

(ii) (I) A contractor, bidder, or other entity, or any of its subcontractors at any tier, that is a signatory to a valid collective bargaining agreement requiring participation in a state-approved apprenticeship program is exempt from this paragraph for the scope of work of that craft or trade covered by the collective bargaining agreement upon providing the lead agency a one-time declaration per development project verifying the existence of the collective bargaining agreement to which it is a signatory before the due date of the affidavit or reports required under subparagraph (C).

(II) A contractor, bidder, or other entity is not liable for any penalty under this paragraph for a subcontractor that complies with subclause (I).

(iii) A contractor, bidder, or other entity shall comply with this paragraph for a contractor of any tier that is not a signatory to a valid collective bargaining agreement and for a contractor that is a signatory to a valid collective bargaining agreement but fails or refuses to provide a declaration verifying the existence of the collective bargaining agreement before the due date of the affidavit or reports requirement under subparagraph (C).

(7) The lead agency shall have standing to take administrative action or sue a construction contractor for failure to comply with this subdivision. A prevailing lead agency shall distribute any wages and penalties to workers in accordance with law and retain any fees, additional penalties, or assessments.

(e) Subdivision (d) does not apply if the development project meets both of the following:

(1) The development project consists of 10 or fewer units or less than 10,000 square feet.

(2) The development project is not a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.

(f) Before making an exemption determination pursuant to this section, the lead agency shall engage in a consultation with relevant California Native American tribes in accordance with Sections 21080.3.1 and 21080.3.2

(g) (1) Except as provided in paragraph (2), subdivision (d) is a material and integral part of this section and is not severable. If a provision of subdivision (d) or its application is held invalid, this section shall be null and void.

(2) Subparagraph (C) of paragraph (5) of subdivision (d) is distinct and is severable from other provisions of this section. If subparagraph (C) of paragraph (5) of subdivision (d) or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

(h) This section shall remain in effect only until January 1, ~~2035,~~ 2032, and as of that date is repealed.

SEC. 2.

Chapter 8 (commencing with Section 21189.100) is added to Division 13 of the Public Resources Code, to read:

CHAPTER 8. San Francisco Downtown Revitalization
21189.100.
For purposes of this chapter, the following definitions apply:
(a) “Applicant” means a public or private entity or its affiliates, or a person or entity that undertakes a public works project, that proposes a project and its successors, heirs, and assignees.
(b) (1) “Development project” means a project located within the downtown revitalization zone.
(2) (A) “Development project” does not include any of the following:
(i) A project that qualifies as a housing development project as defined in Section 65589.5 of the Government Code, unless that project is a student housing project.
(ii) A project that contains any hotel use.
(iii) A project that is exempt from this division pursuant to Section 21080.59.
(B) For purposes of determining whether a development project qualifies as a housing development project pursuant to clause (i) of subparagraph (A), in establishing the square footage, the development project includes both of the following:
(i) All projects proposed to be developed on the development project site, regardless of whether those projects occur.
(ii) All projects developed on sites adjacent to the development project site subject to this section if, after January 1, 2024, the adjacent site had been subdivided from the site of the development project.
(c) “Disadvantaged community” means an area identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.
(d) “Downtown revitalization zone” means an area in the City and County of San Francisco bounded beginning at the intersection of Washington Street and The Embarcadero, running southerly along The Embarcadero and then King Street to 3rd Street, running northwesterly on 3rd Street to Townsend Street, running southwesterly along Townsend Street to 6th Street, running northwesterly along 6th Street to Mission Street, running southwesterly along Mission Street to 10th Street, running southeasterly along 10th Street to Minna Street, running southwesterly along Minna Street to Lafayette Street, running southeasterly along Lafayette Street to Howard Street, running southerly along Howard Street to the junction with the Central Freeway, running westerly along the Central Freeway to Market Street, running northeasterly along Market Street to Franklin Street, running northerly along Franklin Street to Golden Gate Avenue, running easterly along Golden Gate Avenue to Taylor Street, running northerly along Taylor Street to Turk Street, running easterly along Turk Street to Mason Street, running northerly along Mason Street to Ellis Street, running westerly along Ellis Street to Taylor Street, running northerly along Taylor Street to O’Farrell Street, running westerly along O’Farrell Street to Shannon Street, running northerly along Shannon Street to Geary Street, running easterly along Geary Street to Taylor Street, running northerly along Taylor Street to Bush Street, running easterly along Bush Street to Kearny Street, running northerly along Kearny Street to Sacramento Street, running easterly along Sacramento Street to Montgomery Street, running northerly along Montgomery Street to Washington Street, and running easterly along Washington Street to The Embarcadero.
21189.101.
(a) This chapter applies to a project that is certified by the Governor pursuant to Section 21189.104.
(b) Before the certification of the final environmental impact report for a project, an applicant may apply to the Governor for certification and shall provide evidence and materials deemed necessary by the Governor in making a decision on the application for certification.
(c) The Governor shall submit the Governor’s proposed certification, and any supporting information, to the Joint Legislative Budget Committee for review and concurrence or nonconcurrence. Within 30 days of receiving the determination, the Joint Legislative Budget Committee shall concur or nonconcur in writing on the certification. If the Joint Legislative Budget Committee fails to concur or nonconcur on a certification within 30 days of the submittal, the project is deemed to be certified.
(d) The Office of Planning and Research may charge a fee to an applicant seeking certification under this chapter for the costs incurred by the Governor’s office in implementing this chapter.
21189.102.
A project is eligible for certification for purposes of this chapter if the project meets all of the following requirements:
(a) The project is a development project.
(b) The project is located at a site that has a general plan designation allowing for, and that is zoned for, commercial use, institutional use, student housing use, or mixed use.
(c) Portions of the development project for residential use, if any, comply with applicable inclusionary housing requirements.
(d) The project does not require the demolition of any of the following:
(1) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income.
(2) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power.
(3) Housing that has been occupied by tenants within 10 years before the submission of an application for the development project.
(4) A historic structure that is placed on a national, state, or local historic register.
(5) An existing hotel that has operated within 10 years before the submission of an application for the development project.
(e) The project is not located on a site that is any of the following:
(1) Either prime farmland or farmland of statewide importance, as defined pursuant to United States Department of Agriculture land inventory and monitoring criteria, as modified for California, and designated on the maps prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation, or land zoned or designated for agricultural protection or preservation by a local ballot measure that was approved by the voters of that jurisdiction.
(2) Wetlands, as defined in the United States Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993).
(3) A site within a very high fire hazard severity zone, as determined by the State Fire Marshal pursuant to Section 51178 of the Government Code, or within the state responsibility area, as defined in Section 4102. This paragraph does not apply to sites that have adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development project, including, but not limited to, standards established under all of the following or their successor provisions:
(A) Section 4291 of this code or Section 51182 of the Government Code, as applicable.
(B) Section 4290.
(C) Chapter 7A of Title 24 of the California Code of Regulations.
(4) A hazardous waste site that is listed pursuant to Section 65962.5 of the Government Code or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Section 78765 of the Health and Safety Code, unless either of the following apply:
(A) The site is an underground storage tank site that received a uniform closure letter issued pursuant to subdivision (g) of Section 25296.10 of the Health and Safety Code based on closure criteria established by the State Water Resources Control Board for residential use or residential mixed uses. This subparagraph does not alter or change the conditions to remove a site from the list of hazardous waste sites listed pursuant to Section 65962.5 of the Government Code.
(B) The State Department of Public Health, the State Water Resources Control Board, the Department of Toxic Substances Control, or a local agency making a determination pursuant to subdivision (c) of Section 25296.10 of the Health and Safety Code, has otherwise determined that the site is suitable for residential use or residential mixed uses.
(5) Within a delineated earthquake fault zone as determined by the State Geologist in any official maps published by the State Geologist, unless the development project complies with applicable seismic protection building code standards adopted by the California Building Standards Commission under the California Building Standards Law (Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code), and by any local building department under Chapter 12.2 (commencing with Section 8875) of Division 1 of Title 2 of the Government Code.
(6) Within a special flood hazard area subject to inundation by the 1 percent annual chance flood (100-year flood) as determined by the Federal Emergency Management Agency in any official maps published by the Federal Emergency Management Agency. If a project applicant is able to satisfy all applicable federal qualifying criteria in order to provide that the site satisfies this paragraph and is otherwise eligible for certification under this chapter, the Governor shall not refuse to certify the project pursuant to this chapter on the basis that the project applicant did not comply with any additional permit requirement, standard, or action adopted by a local government that is applicable to that site. A development project may be located on a site described in this paragraph if any of the following are met:
(A) The site has been subject to a Letter of Map Revision prepared by the Federal Emergency Management Agency and issued to the local jurisdiction.
(B) The site meets Federal Emergency Management Agency requirements necessary to meet minimum flood plain management criteria of the National Flood Insurance Program pursuant to Part 59 (commencing with Section 59.1) and Part 60 (commencing with Section 60.1) of Subchapter B of Chapter I of Title 44 of the Code of Federal Regulations.
(C) Within a regulatory floodway as determined by the Federal Emergency Management Agency in any official maps published by the Federal Emergency Management Agency, unless the development project has received a no-rise certification in accordance with Section 60.3(d)(3) of Title 44 of the Code of Federal Regulations. If a project applicant is able to satisfy all applicable federal qualifying criteria in order to provide that the site satisfies this paragraph and is otherwise eligible for certification under this chapter, the Governor shall not refuse to certify the project under this chapter on the basis that the project applicant did not comply with any additional permit requirement, standard, or action adopted by a local government that is applicable to that site.
(7) Lands identified for conservation in an adopted natural community conservation plan pursuant to the Natural Community Conservation Planning Act (Chapter 10 (commencing with Section 2800) of Division 3 of the Fish and Game Code), habitat conservation plan pursuant to the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), or other adopted natural resource protection plan.
(8) Habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code).
(9) Lands under conservation easement.
(10) A site previously used for housing that was occupied by tenants and the housing was demolished within 10 years from the date of the submission of an application for the development project.
(11) A site containing housing units that are occupied by tenants and the units at the property are, or were, subsequently offered for sale to the general public by a subdivider or subsequent owner of the property.
(12) The site is subject to the Mobilehome Residency Law (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2 of Division 2 of the Civil Code), the Recreational Vehicle Park Occupancy Law (Chapter 2.6 (commencing with Section 799.20) of Title 2 of Part 2 of Division 2 of the Civil Code), the Mobilehome Parks Act (Part 2.1 (commencing with Section 18200) of Division 13 of the Health and Safety Code), or the Special Occupancy Parks Act (Part 2.3 (commencing with Section 18860) of Division 13 of the Health and Safety Code).
(f) For a project that contains residential, retail, commercial, sports, cultural, entertainment, or recreational uses, the project meets the certification requirements for the United States Green Building Council’s Leadership in Energy and Environmental Design (LEED) gold rating or better.
21189.103.
In addition to the requirements of Section 21189.102, the applicant shall demonstrate compliance with all of the following, as applicable:
(a) The requirement for payment of the transportation sustainability fee as required by Section 411A of the San Francisco Planning Code.
(b) The requirement for a transportation demand management program as required by Section 169 of the San Francisco Planning Code.
(c) The requirements of Section 413 of the San Francisco Planning Code.
(d) The requirement for bicycle facilities as required by Sections 155.1 to 155.4, inclusive, of the San Francisco Planning Code.
(e) The requirement for car sharing as required by Section 166 of the San Francisco Planning Code.
(f) The Electric Vehicle Charging in Commercial Parking Ordinance (Chapter 31 of the San Francisco Environment Code).
(g) The requirements of Section 163 of the San Francisco Planning Code.
(h) The all-electric building permit requirements set forth in Section 106A.1.17 of the San Francisco Building Code and Administrative Bulletin 112 of the San Francisco Department of Building Inspection for a project meeting the criteria for the all-electric new construction as set forth in that ordinance and bulletin.
(i) The requirements of Sections 4.103, 4.104, 4.105, 5.103, 5.104, and 5.105 of the San Francisco Green Building Code.
(j) The energy efficiency design rating and energy budget requirements set forth in Sections 4.201.3 and 5.201.1.1 of the San Francisco Green Building Code.
(k) The energy inspection and energy conservation installation measures as required by Section 1212 or 1213 of the San Francisco Housing Code.
(l) Sections 5.106.8, 5106.8.1, and 5106.8.2 of the California Green Building Standards Code (Part 11 of Title 24 of the California Code of Regulations).
(m) Stormwater and impervious surface requirements as required by Section 147 of the San Francisco Public Works Code.
(n) The upgrade for noncompliant fixtures and the maximum flush/flow limits as required by Section 5.103.1.2 of the San Francisco Green Building Code, Section 12A10 of the San Francisco Housing Code, or Section 1313A of the San Francisco Building Code.
(o) The water budget for outdoor water consumption requirements as required by Chapter 63 (commencing with Section 63.1) of the San Francisco Administrative Code.
(p) The water conservation measures as required by the Commercial Water Conservation Ordinance (Chapter 13A (commencing with Section 1301A) of the San Francisco Building Code).
(q) The water efficiency upgrade standards as required by the Residential Water Conservation Ordinance (Chapter 12A (commencing with Section 12A01) of the San Francisco Housing Code).
(r) The alternate water sources for toilets and urinal flushing irrigation and water budget calculation preparations as required by Article 12C (commencing with Section 12C.1) of the San Francisco Health Code for a project subject to that article.
(s) The photovoltaic energy system or living roof requirements as required by Chapter 26 (commencing with Section 2601) of the San Francisco Environment Code, Sections 4.201.2 and 5.201.1.2 of the San Francisco Green Building Code, and Section 149 of the San Francisco Planning Code.
(t) The requirements for onsite generation from 100 percent greenhouse gas-free or renewable energy resources, or purchasing from 100 percent greenhouse gas-free or renewable energy resources, or both onsite generation and purchasing as required by the 100% Renewable Energy for Commercial Buildings Ordinance (Chapter 30 (commencing with Section 3000) of the San Francisco Environment Code).
(u) The requirements for infrastructure supporting the storage, collection, and loading of recyclables, compost, and solid waste as required by the Mandatory Recycling and Composting Ordinance (Chapter 19 (commencing with Section 1901) of the San Francisco Environment Code).
(v) The Construction and Demolition Debris Recovery Ordinance (Chapter 14 (commencing with Section 1400) of the San Francisco Environment Code), the Construction and Demolition Debris Recovery Program (Chapter 13B (commencing with Section 1301B) of the San Francisco Building Code), or Sections 4.103.2.3 and 5.103.1.3 of the San Francisco Green Building Code, including the requirement to submit a material reduction and recovery plan.
(w) Requirements for tree planting and replacement as required by Section 806 of the San Francisco Public Works Code or Section 138.1 of the San Francisco Planning Code.
(x) Requirements for runoff pollution prevention, an erosion and sediment control plan, and best management practices to prevent illicit discharge into the sewer system, as required by Article 4.2 (commencing with Section 146) of the San Francisco Public Works Code for a project subject to that article.
(y) Requirements preventing installation of equipment that contains chlorofluorocarbons or halons as required by Sections 5.508.1.2 and 5.508.2 of the California Green Building Standards Code.
(z) The volatile organic compound emission limits and other requirements set forth in Sections 4.103.3.2, 5.103.1.9, 5.103.3.2, and 5.103.4.2 of the San Francisco Green Building Code.
21189.104.
The governor may certify a project before a lead agency certifies a final environmental impact report for purposes of this chapter if the project meets the requirements of Sections 21189.102 and 21189.103 and all of the following, as applicable:
(a) The project creates high-wage, highly skilled jobs that pay prevailing wages and living wages, provides construction jobs and permanent jobs for Californians, helps reduce unemployment, and promotes apprenticeship training. For purposes of this subdivision, a project is deemed to create jobs that pay prevailing wages, create highly skilled jobs, and promote apprenticeship training if the applicant demonstrates to the satisfaction of the Governor that the project will comply with Section 21189.105.
(b) The project does not result in any net additional emission of greenhouse gases, including greenhouse gas emissions from construction or employee transportation.
(c) The applicant demonstrates compliance with the requirements of Chapter 12.8 (commencing with Section 42649) and Chapter 12.9 (commencing with Section 42649.8) of Part 3 of Division 30, as applicable.
(d) The applicant has entered into a binding and enforceable agreement that all mitigation measures required under this division to certify the project under this chapter shall be conditions of approval of the project, and those conditions will be fully enforceable by the lead agency or another agency designated by the lead agency. In the case of environmental mitigation measures, the applicant agrees, as an ongoing obligation, that those measures will be monitored and enforced by the lead agency for the life of the obligation.
(e) The applicant agrees to pay the costs of the trial court and the court of appeal in hearing and deciding any case challenging a lead agency’s action on a certified project under this division, including payment of the costs for the appointment of a special master if deemed appropriate by the court, in a form and manner specified by the Judicial Council, as provided in the California Rules of Court adopted by the Judicial Council under Section 21189.106.
(f) For a project for which the environmental review has commenced, the applicant demonstrates that the preparation of the record of proceedings complies with Section 21189.107.
21189.105.
(a) For purposes of this section, the following definitions apply:
(1) “Project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(2) “Skilled and trained workforce” has the same meaning as set forth in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.
(b) (1) For a project undertaken by a public agency that is certified under this chapter, except as provided in paragraph (2), an entity shall not be prequalified or shortlisted or awarded a contract by the public agency to perform any portion of the project unless the entity provides an enforceable commitment to the public agency that the entity and its contractors and subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades.
(2) Paragraph (1) does not apply if any of the following requirements are met:
(A) The public agency has entered into a project labor agreement that will bind all contractors and subcontractors at every tier performing work on the project or contract to use a skilled and trained workforce, and the entity agrees to be bound by that project labor agreement.
(B) The project or contract is being performed under the extension or renewal of a project labor agreement that was entered into by the public agency before January 1, 2021.
(C) The entity has entered into a project labor agreement that will bind the entity and all of its contractors and subcontractors at every tier performing work on the project or contract to use a skilled and trained workforce.
(c) For a project undertaken by a private entity that is certified under this chapter, the applicant shall do both of the following:
(1) Certify to the lead agency that either of the following is true:
(A) The entirety of the project is a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(B) If the project is not in its entirety a public work, all construction workers employed in the execution of the project will be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations under Sections 1773 and 1773.9 of the Labor Code, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate. If the project is subject to this subparagraph, then, for those portions of the project that are not a public work, all of the following shall apply:
(i) The applicant shall ensure that the prevailing wage requirement is included in all contracts for the performance of the work.
(ii) All contractors and subcontractors at every tier shall pay to all construction workers employed in the execution of the work on the project or contract at least the general prevailing rate of per diem wages, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.
(iii) (I) Except as provided in subclause (III), all contractors and subcontractors at every tier shall maintain and verify payroll records under Section 1776 of the Labor Code and make those records available for inspection and copying as provided by that section.
(II) Except as provided in subclause (III), the obligation of all contractors and subcontractors at every tier to pay prevailing wages may be enforced by the Labor Commissioner through the issuance of a civil wage and penalty assessment under Section 1741 of the Labor Code, which may be reviewed under Section 1742 of the Labor Code, within 18 months after the completion of the project, by an underpaid worker through an administrative complaint or civil action, or by a joint labor-management committee through a civil action under Section 1771.2 of the Labor Code. If a civil wage and penalty assessment is issued, the contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages under Section 1742.1 of the Labor Code.
(III) Subclauses (I) and (II) do not apply if all contractors and subcontractors at every tier performing work on the project or contract are subject to a project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the project or contract and provides for enforcement of that obligation through an arbitration procedure.
(iv) Notwithstanding subdivision (c) of Section 1773.1 of the Labor Code, the requirement that employer payments not reduce the obligation to pay the hourly straight time or overtime wages found to be prevailing shall not apply if otherwise provided in a bona fide collective bargaining agreement covering the worker. The requirement to pay at least the general prevailing rate of per diem wages does not preclude use of an alternative workweek schedule adopted under Section 511 or 514 of the Labor Code.
(2) Certify to the lead agency that a skilled and trained workforce will be used to perform all construction work on the project or contract. All of the following requirements shall apply to the project:
(A) The applicant shall require in all contracts for the performance of work that every contractor and subcontractor at every tier will individually use a skilled and trained workforce to complete the project.
(B) Every contractor and subcontractor at every tier shall use a skilled and trained workforce to complete the project.
(C) (i) Except as provided in clause (ii), the applicant shall provide to the lead agency, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code. A monthly report provided to the lead agency under this clause shall be a public record under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall be open to public inspection. An applicant that fails to provide a monthly report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code shall be subject to a civil penalty of ten thousand dollars ($10,000) per month for each month for which the report has not been provided. Any contractor or subcontractor that fails to use a skilled and trained workforce shall be subject to a civil penalty of two hundred dollars ($200) per day for each worker employed in contravention of the skilled and trained workforce requirement. Penalties may be assessed by the Labor Commissioner within 18 months of completion of the project using the same procedures for issuance of civil wage and penalty assessments under Section 1741 of the Labor Code, and may be reviewed under the same procedures in Section 1742 of the Labor Code. Penalties shall be paid to the State Public Works Enforcement Fund.
(ii) Clause (i) does not apply if all contractors and subcontractors at every tier performing work on the project are subject to a project labor agreement that requires compliance with the skilled and trained workforce requirement and provides for enforcement of that obligation through an arbitration procedure.
21189.106.
(a) An action or proceeding brought to attack, review, set aside, void, or annul the certification of an environmental impact report for a development project subject to this chapter or the granting of any project approvals, including any potential appeals to the court of appeal or the Supreme Court, shall be resolved, to the extent feasible, within 270 days of the filing of the certified record of proceedings with the court.
(b) On or before December 31, 2025, the Judicial Council shall adopt a rule of court to implement this section.
21189.107.
Notwithstanding any other law, the preparation and certification of the record of proceedings for a certified project shall be performed in the following manner:
(a) The lead agency for the project shall prepare the record of proceedings under this division concurrently with the administrative process.
(b) All documents and other materials placed in the record of proceedings shall be posted on, and be downloadable from, an internet website maintained by the lead agency commencing with the date of the release of the draft environmental impact report.
(c) The lead agency shall make available to the public in a readily accessible electronic format the draft environmental impact report and all other documents submitted to, or relied on by, the lead agency in preparing the draft environmental impact report.
(d) Any document prepared by the lead agency or submitted by the applicant after the date of the release of the draft environmental impact report that is a part of the record of proceedings shall be made available to the public in a readily accessible electronic format within five days after the document is released or received by the lead agency.
(e) The lead agency shall encourage written comments on the project to be submitted in a readily accessible electronic format, and shall make any comment available to the public in a readily accessible electronic format within five days of its receipt.
(f) Within seven days after the receipt of any comment that is not in an electronic format, the lead agency shall convert that comment into a readily accessible electronic format and make it available to the public in that format.
(g) Notwithstanding subdivisions (b) to (f), inclusive, documents submitted to or relied on by the lead agency that were not prepared specifically for the project and are copyright protected are not required to be made readily accessible in an electronic format. For those copyright-protected documents, the lead agency shall make an index of these documents available in an electronic format no later than the date of the release of the draft environmental impact report, or within five days if the document is received or relied on by the lead agency after the release of the draft environmental impact report. The index shall specify the libraries or lead agency offices in which hardcopies of the copyrighted materials are available for public review.
(h) The lead agency shall certify the final record of proceedings within five days of its approval of the project.
(i) Any dispute arising from the record of proceedings shall be resolved by the superior court. Unless the superior court directs otherwise, a party disputing the content of the record of proceedings shall file a motion to augment the record of proceedings at the time it files its initial brief.
(j) The contents of the record of proceedings shall be as set forth in subdivision (e) of Section 21167.6.
(k) The applicant shall pay the costs of preparing the record of proceedings for the project concurrent with review and consideration of the project under this division, in a form and manner specified by the lead agency for the project. The cost of preparing the record of proceedings for the project shall not be recoverable from the plaintiff or petitioner before, during, or after any litigation.
21189.108.
(a) Within 10 days of the certification of a project pursuant to Section 21189.104, the lead agency shall, at the applicant’s expense, if applicable, issue a public notice in no less than 12-point type stating the following:

“THE APPLICANT HAS ELECTED TO PROCEED UNDER CHAPTER 8 (COMMENCING WITH SECTION 21189.100) OF DIVISION 13 OF THE PUBLIC RESOURCES CODE, WHICH PROVIDES, AMONG OTHER THINGS, THAT ANY JUDICIAL ACTION CHALLENGING THE CERTIFICATION OF THE ENVIRONMENTAL IMPACT REPORT (EIR) OR THE APPROVAL OF THE PROJECT DESCRIBED IN THE EIR IS SUBJECT TO THE PROCEDURES SET FORTH IN SECTIONS 21189.106 AND 21189.107 OF THE PUBLIC RESOURCES CODE. A COPY OF CHAPTER 8 (COMMENCING WITH SECTION 21189.100) OF DIVISION 13 OF THE PUBLIC RESOURCES CODE IS INCLUDED BELOW.”

(b) The public notice shall be distributed by the lead agency as required for public notices issued under paragraph (3) of subdivision (b) of Section 21092.
21189.109.
(a) A project certified pursuant to this section shall meet all of the following:
(1) Avoid or minimize significant environmental impacts in a disadvantaged community.
(2) Mitigation measures required pursuant to this division shall be undertaken in, and directly benefit, the affected community.
(3) Avoid substantial adverse change to the significance of a historical or cultural resource.
(b) The certification for a project under this chapter shall be void if the lead agency, in approving the project, adopts a statement of overriding consideration pursuant to subdivision (b) of Section 21081 for any environmental impacts identified in the environmental impact report that cannot be avoided or mitigated to less than significant.
21189.110.
Except as otherwise provided expressly in this chapter, this chapter does not affect the duty of any party to comply with this division.
21189.111.
The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
21189.112.
If, before January 1, 2031, a lead agency fails to approve a project certified by the Governor, then the certification is no longer valid.
21189.113.
This chapter shall remain in effect only until January 1, 2032, and as of that date is repealed.

SEC. 2.SEC. 3.

Section 214 of the Revenue and Taxation Code is amended to read:

214.

(a) Property used exclusively for religious, hospital, scientific, or charitable purposes owned and operated by community chests, funds, foundations, limited liability companies, or corporations organized and operated for religious, hospital, scientific, or charitable purposes is exempt from taxation, including ad valorem taxes to pay the interest and redemption charges on any indebtedness approved by the voters prior to July 1, 1978, or any bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978, by two-thirds of the votes cast by the voters voting on the proposition, if:

(1) The owner is not organized or operated for profit. However, in the case of hospitals, the organization shall not be deemed to be organized or operated for profit if, during the immediately preceding fiscal year, operating revenues, exclusive of gifts, endowments, and grants-in-aid, did not exceed operating expenses by an amount equivalent to 10 percent of those operating expenses. As used herein, operating expenses include depreciation based on cost of replacement and amortization of, and interest on, indebtedness.

(2) No part of the net earnings of the owner inures to the benefit of any private shareholder or individual.

(3) The property is used for the actual operation of the exempt activity, and does not exceed an amount of property reasonably necessary to the accomplishment of the exempt purpose.

(A) For the purposes of determining whether the property is used for the actual operation of the exempt activity, consideration shall not be given to use of the property for either or both of the following described activities if that use is occasional:

(i) The owner conducts fundraising activities on the property and the proceeds derived from those activities are not unrelated business taxable income, as defined in Section 512 of the Internal Revenue Code, of the owner and are used to further the exempt activity of the owner.

(ii) The owner permits any other organization that meets all of the requirements of this subdivision, other than ownership of the property, to conduct fundraising activities on the property and the proceeds derived from those activities are not unrelated business taxable income, as defined in Section 512 of the Internal Revenue Code, of the organization, are not subject to the tax on unrelated business taxable income that is imposed by Section 511 of the Internal Revenue Code, and are used to further the exempt activity of the organization.

(B) For purposes of subparagraph (A):

(i) “Occasional use” means use of the property on an irregular or intermittent basis by the qualifying owner or any other qualifying organization described in clause (ii) of subparagraph (A) that is incidental to the primary activities of the owner or the other organization.

(ii) “Fundraising activities” means both activities involving the direct solicitation of money or other property and the anticipated exchange of goods or services for money between the soliciting organization and the organization or person solicited.

(C) Subparagraph (A) shall have no application in determining whether paragraph (3) has been satisfied unless the owner of the property and any other organization using the property as provided in subparagraph (A) have filed with the assessor a valid organizational clearance certificate issued pursuant to Section 254.6.

(D) For the purposes of determining whether the property is used for the actual operation of the exempt activity, consideration shall not be given to the use of the property for meetings conducted by any other organization if the meetings are incidental to the other organization’s primary activities, are not fundraising meetings or activities as defined in subparagraph (B), are held no more than once per week, and the other organization and its use of the property meet all other requirements of paragraphs (1) to (5), inclusive, of this subdivision. The owner or the other organization also shall file with the assessor a copy of a valid, unrevoked letter or ruling from the Internal Revenue Service or the Franchise Tax Board stating that the other organization, or the national organization of which it is a local chapter or affiliate, qualifies as an exempt organization under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code or Section 23701d, 23701f, or 23701w.

(E) Subparagraph (A), (B), (C), or (D) shall not be construed to either enlarge or restrict the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section.

(4) The property is not used or operated by the owner or by any other person so as to benefit any officer, trustee, director, shareholder, member, employee, contributor, or bondholder of the owner or operator, or any other person, through the distribution of profits, payment of excessive charges or compensations, or the more advantageous pursuit of their business or profession.

(5) The property is not used by the owner or members thereof for fraternal or lodge purposes, or for social club purposes except where that use is clearly incidental to a primary religious, hospital, scientific, or charitable purpose.

(6) The property is irrevocably dedicated to religious, charitable, scientific, or hospital purposes and, upon the liquidation, dissolution, or abandonment of the owner, will not inure to the benefit of any private person except a fund, foundation, or corporation organized and operated for religious, hospital, scientific, or charitable purposes.

(7) The property, if used exclusively for scientific purposes, is used by a foundation or institution that, in addition to complying with the foregoing requirements for the exemption of charitable organizations in general, has been chartered by the Congress of the United States (except that this requirement shall not apply when the scientific purposes are medical research), and whose objects are the encouragement or conduct of scientific investigation, research, and discovery for the benefit of the community at large.

The exemption provided for herein shall be known as the “welfare exemption.” This exemption is in addition to any other exemption now provided by law, and the existence of the exemption provision in paragraph (2) of subdivision (a) of Section 202 does not preclude the exemption under this section for museum or library property. Except as provided in subdivision (e), this section shall not be construed to enlarge the college exemption.

(b) Property used exclusively for school purposes of less than collegiate grade and owned and operated by religious, hospital, or charitable funds, foundations, limited liability companies, or corporations, which property and funds, foundations, limited liability companies, or corporations meet all of the requirements of subdivision (a), shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section.

(c) Property used exclusively for nursery school purposes and owned and operated by religious, hospital, or charitable funds, foundations, limited liability companies, or corporations, which property and funds, foundations, limited liability companies, or corporations meet all the requirements of subdivision (a), shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section.

(d) Property used exclusively for a noncommercial educational FM broadcast station or an educational television station, and owned and operated by religious, hospital, scientific, or charitable funds, foundations, limited liability companies, or corporations meeting all of the requirements of subdivision (a), shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section.

(e) Property used exclusively for religious, charitable, scientific, or hospital purposes and owned and operated by religious, hospital, scientific, or charitable funds, foundations, limited liability companies, or corporations or educational institutions of collegiate grade, as defined in Section 203, which property and funds, foundations, limited liability companies, corporations, or educational institutions meet all of the requirements of subdivision (a), shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section. As to educational institutions of collegiate grade, as defined in Section 203, the requirements of paragraph (6) of subdivision (a) shall be deemed to be met if both of the following are met:

(1) The property of the educational institution is irrevocably dedicated in its articles of incorporation to charitable and educational purposes, to religious and educational purposes, or to educational purposes.

(2) The articles of incorporation of the educational institution provide for distribution of its property upon its liquidation, dissolution, or abandonment to a fund, foundation, or corporation organized and operated for religious, hospital, scientific, charitable, or educational purposes meeting the requirements for exemption provided by Section 203 or this section.

(f) Property used exclusively for housing and related facilities for elderly or handicapped families and financed by, including, but not limited to, the federal government pursuant to Section 202 of Public Law 86-372 (12 U.S.C. Sec. 1701q), as amended, Section 231 of Public Law 73-479 (12 U.S.C. Sec. 1715v), Section 236 of Public Law 90-448 (12 U.S.C. Sec. 1715z), or Section 811 of Public Law 101-625 (42 U.S.C. Sec. 8013), and owned and operated by religious, hospital, scientific, or charitable funds, foundations, limited liability companies, or corporations meeting all of the requirements of this section shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section.

The amendment of this paragraph made by Chapter 1102 of the Statutes of 1984 does not constitute a change in, but is declaratory of, existing law. However, no refund of property taxes shall be required as a result of this amendment for any fiscal year prior to the fiscal year in which the amendment takes effect.

Property used exclusively for housing and related facilities for elderly or handicapped families at which supplemental care or services designed to meet the special needs of elderly or handicapped residents are not provided, or that is not financed by the federal government pursuant to Section 202 of Public Law 86-372 (12 U.S.C. Sec. 1701q), as amended, Section 231 of Public Law 73-479 (12 U.S.C. Sec. 1715v), Section 236 of Public Law 90-448 (12 U.S.C. Sec. 1715z), or Section 811 of Public Law 101-625 (42 U.S.C. Sec. 8013), shall not be entitled to exemption pursuant to this subdivision unless the property is used for housing and related facilities for low- and moderate-income elderly or handicapped families. Property that would otherwise be exempt pursuant to this subdivision, except that it includes some housing and related facilities for other than low- or moderate-income elderly or handicapped families, shall be entitled to a partial exemption. The partial exemption shall be equal to that percentage of the value of the property that is equal to the percentage that the number of low- and moderate-income elderly and handicapped families represents of the total number of families occupying the property.

As used in this subdivision, “low and moderate income” has the same meaning as the term “persons and families of low or moderate income” as defined by Section 50093 of the Health and Safety Code.

(g) (1) Property used exclusively for rental housing and related facilities and owned and operated by religious, hospital, scientific, or charitable funds, foundations, limited liability companies, or corporations, including limited partnerships in which the managing general partner is an eligible nonprofit corporation or eligible limited liability company, meeting all of the requirements of this section, or by veterans’ organizations, as described in Section 215.1, meeting all the requirements of paragraphs (1) to (7), inclusive, of subdivision (a), shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section and shall be entitled to a partial exemption equal to that percentage of the value of the property that is equal to the percentage that the number of units serving lower income households represents of the total number of residential units in any year in which any of the following criteria applies:

(A) The acquisition, rehabilitation, development, or operation of the property, or any combination of these factors, is financed with tax-exempt mortgage revenue bonds, qualified 501(c)(3) bonds, as that term is defined in Section 145 of Title 26 of the United States Code, or general obligation bonds, or is financed by local, state, or federal loans or grants and the rents of the occupants who are lower income households do not exceed those prescribed by deed restrictions or regulatory agreements pursuant to the terms of the financing or financial assistance.

(B) The owner of the property is eligible for and receives low-income housing tax credits pursuant to Section 42 of the Internal Revenue Code of 1986, as added by Public Law 99-514.

(C) In the case of a claim, other than a claim with respect to property owned by a limited partnership in which the managing general partner is an eligible nonprofit corporation, that is filed for the 2000–01 fiscal year or any fiscal year thereafter, 90 percent or more of the occupants of the property are lower income households whose rent does not exceed the rent prescribed by Section 50053 of the Health and Safety Code. The total exemption amount allowed under this subdivision to a taxpayer, with respect to a single property or multiple properties for any fiscal year on the sole basis of the application of this subparagraph, may not exceed twenty million dollars ($20,000,000) in assessed value.

(D) (i) The property was previously purchased and owned by the Department of Transportation pursuant to a consent decree requiring housing mitigation measures relating to the construction of a freeway and is now solely owned by an organization that qualifies as an exempt organization under Section 501(c)(3) of the Internal Revenue Code.

(ii) This subparagraph does not apply to property owned by a limited partnership in which the managing partner is an eligible nonprofit corporation.

(2) In order to be eligible for the exemption provided by this subdivision, the owner of the property shall do both of the following:

(A) (i) For any claim filed for the 2000–01 fiscal year or any fiscal year thereafter, certify and ensure, subject to the limitation in clause (ii), that there is an enforceable and verifiable agreement with a public agency, a recorded deed restriction, or other legal document that restricts the project’s usage and that provides that the units designated for use by lower income households are continuously available to or occupied by lower income households, subject to the exception in clause (iii), at rents that do not exceed those prescribed by Section 50053 of the Health and Safety Code, or, to the extent that the terms of federal, state, or local financing or financial assistance conflicts with Section 50053 of the Health and Safety Code, rents that do not exceed those prescribed by the terms of the financing or financial assistance.

(ii) In the case of a limited partnership in which the managing general partner is an eligible nonprofit corporation, the restriction and provision specified in clause (i) shall be contained in an enforceable and verifiable agreement with a public agency, or in a recorded deed restriction to which the limited partnership certifies.

(iii) (I) (ia) In the case of an owner of property that is eligible for and receives a low-income housing tax credit pursuant to Section 42 of the Internal Revenue Code, relating to low-income housing credit, a unit shall continue to be treated as occupied by a lower income household if the occupants were lower income households on the lien date in the fiscal year in which their occupancy of the unit commenced and the unit continues to be rent restricted, notwithstanding an increase in the income of the occupants of the unit to 140 percent of area median income, adjusted for family size. However, the unit shall cease to be treated as a lower income unit if the income of the occupants of the unit increases above 140 percent of area median income, adjusted for family size.

(ib) This subclause shall only be operative from the 2018–19 fiscal year through the 2027–28 fiscal year.

(II) (ia) In the case of an owner of property, other than a property described in subclause (I), that is subject to an enforceable and verifiable agreement with a public agency, a unit shall continue to be treated as occupied by a lower income household if the occupants were lower income households on the lien date in the fiscal year in which their occupancy of the unit commenced and the unit continues to be rent restricted, notwithstanding an increase in the income of the occupants of the unit to 100 percent of area median income, adjusted for family size. However, the unit shall cease to be treated as a lower income unit if the income of the occupants of the unit increases above 100 percent of area median income, adjusted for family size.

(ib) This subclause shall only be operative from the 2024–25 fiscal year through the 2028–29 fiscal year.

(iv) (I) In the case of an owner of property that is a community land trust and whose property is leased to a lower income household, subject to a contract that complies with the requirements of paragraph (11) of subdivision (a) of Section 402.1, a unit shall continue to be treated as occupied by a lower income household if the occupants were lower income households on the lien date in the fiscal year in which their occupancy of the unit commenced and the unit continues to be rent restricted, notwithstanding an increase in the income of the occupants of the unit to 140 percent of area median income, adjusted for family size. However, the unit shall cease to be treated as a lower income unit if the income of the occupants of the unit increases above 140 percent of area median income, adjusted for family size.

(II) This clause shall only be operative from the 2022–23 fiscal year through the 2027–28 fiscal year.

(B) Certify that the funds that would have been necessary to pay property taxes are used to maintain the affordability of, or reduce rents otherwise necessary for, the units occupied by lower income households.

(3) As used in this subdivision:

(A) “Community land trust” has the same meaning as defined in Section 402.1.

(B) “Lower income households” has the same meaning as the term “lower income households” as defined by Section 50079.5 of the Health and Safety Code.

(C) “Related facilities” means any manager’s units and any and all common area spaces that are included within the physical boundaries of the rental housing development, including, but not limited to, common area space, walkways, balconies, patios, clubhouse space, meeting rooms, laundry facilities, and parking areas, except any portions of the overall development that are nonexempt commercial space.

(D) (i) “Units serving lower income households” shall mean units that are occupied by lower income households at an affordable rent, as defined in Section 50053 of the Health and Safety Code or, to the extent that the terms of federal, state, or local financing or financial assistance conflicts with Section 50053 of the Health and Safety Code, rents that do not exceed those prescribed by the terms of the financing or financial assistance. Units reserved for lower income households at an affordable rent that are temporarily vacant due to tenant turnover or repairs shall be counted as occupied.

(ii) (I) “Units serving lower income households” shall also mean units specified in clause (iii) of subparagraph (A) of paragraph (2).

(II) This clause shall only be operative from the 2018–19 fiscal year through the 2027–28 fiscal year.

(iii) (I) “Units serving lower income households” shall also mean units specified in clause (iv) of subparagraph (A) of paragraph (2).

(II) This clause shall only be operative from the 2022–23 fiscal year through the 2027–28 fiscal year.

(h) (1) Property used exclusively for rental housing and related facilities and owned and operated by religious, hospital, scientific, or charitable funds, foundations, limited liability companies, or corporations, including limited partnerships in which the managing partner is an eligible nonprofit corporation or eligible limited liability company, meeting all of the requirements of this section, or by veterans’ organizations, as described in Section 215.1, meeting all of the requirements of paragraphs (1) to (7), inclusive, of subdivision (a), shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution at this section and shall be entitled to a partial exemption equal to the percentage of the value of the property that is equal to the percentage that the number of units serving moderate-income households represents of the total number of residential units in any year in which all of the following conditions are met:

(A) The owner of the property certifies, under penalty of perjury, all of the following:

(i) (I) That there is an enforceable and verifiable agreement with a public agency, a recorded deed restriction, or other legal document that restricts the applicable project’s usage and that provides that the units designated for use by moderate-income households are continuously available to, or occupied by, moderate-income households.

(II) In the case of a limited partnership in which the managing general partner is an eligible nonprofit corporation, the restriction and provision specified in clause (i) shall be contained in an enforceable and verifiable agreement with a public agency or in a recorded deed restriction to which the limited partnership certifies.

(ii) That the funds that would have been necessary to pay property taxes are used to maintain the affordability of, or reduce rents otherwise necessary for, the units occupied by moderate-income households.

(iii) That the rents charged are at least 10 percent below the fair market rent for the City and County of San Francisco, as determined by the federal Department of Housing and Urban Development. The City and County of San Francisco or a third party may provide a market study that establishes a higher fair market rent for the county than that determined by the federal Department of Housing and Urban Development. The California Housing Finance Agency shall review and certify the validity of a market study provided by the City and County of San Francisco or a third party pursuant to this subparagraph.

(iv) A building permit or a site permit was filed for residential units on the property before January 1, 2035.

(B) The property is located within the downtown revitalization zone of the City and County of San Francisco. For purposes of this paragraph, “downtown revitalization zone” means an area in the City and County of San Francisco bounded beginning at the intersection of Washington Street and The Embarcadero, running southerly along The Embarcadero and then King Street to 3rd Street, running northwesterly on 3rd Street to Townsend Street, running southwesterly along Townsend Street to 6th Street, running northwesterly along 6th Street to Mission Street, running southwesterly along Mission Street to 10th Street, running southeasterly along 10th Street to Minna Street, running southwesterly along Minna Street to Lafayette Street, running southeasterly along Lafayette Street to Howard Street, running southerly along Howard Street to the junction with the Central Freeway, running westerly along the Central Freeway to Market Street, running northeasterly along Market Street to Franklin Street, running northerly along Franklin Street to Golden Gate Avenue, running easterly along Golden Gate Avenue to Taylor Street, running northerly along Taylor Street to Turk Street, running easterly along Turk Street to Mason Street, running northerly along Mason Street to Ellis Street, running westerly along Ellis Street to Taylor Street, running northerly along Taylor Street to O’Farrell Street, running westerly along O’Farrell Street to Shannon Street, running northerly along Shannon Street to Geary Street, running easterly along Geary Street to Taylor Street, running northerly along Taylor Street to Bush Street, running easterly along Bush Street to Kearny Street, running northerly along Kearny Street to Sacramento Street, running easterly along Sacramento Street to Montgomery Street, running northerly along Montgomery Street to Washington Street, and running easterly along Washington Street to The Embarcadero.

(C) The owner of the property claims the exemption under this subdivision within five years following the issuance of the first building permit for residential units on the property.

(2) This subdivision shall apply with respect to lien dates occurring on or after January 1, 2025.

(i) Property used exclusively for an emergency or temporary shelter and related facilities for homeless persons and families and owned and operated by religious, hospital, scientific, or charitable funds, foundations, limited liability companies, or corporations meeting all of the requirements of this section shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section. Property that otherwise would be exempt pursuant to this subdivision, except that it includes housing and related facilities for other than an emergency or temporary shelter, shall be entitled to a partial exemption.

As used in this subdivision, “emergency or temporary shelter” means a facility that would be eligible for funding pursuant to Chapter 11 (commencing with Section 50800) of Part 2 of Division 31 of the Health and Safety Code.

(j) Property used exclusively for housing and related facilities for employees of religious, charitable, scientific, or hospital organizations that meet all the requirements of subdivision (a) and owned and operated by funds, foundations, limited liability companies, or corporations that meet all the requirements of subdivision (a) shall be deemed to be within the exemption provided for in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution and this section to the extent the residential use of the property is institutionally necessary for the operation of the organization.

(k) For purposes of this section, charitable purposes include educational purposes. For purposes of this subdivision, “educational purposes” means those educational purposes and activities for the benefit of the community as a whole or an unascertainable and indefinite portion thereof, and do not include those educational purposes and activities that are primarily for the benefit of an organization’s shareholders. Educational activities include the study of relevant information, the dissemination of that information to interested members of the general public, and the participation of interested members of the general public.

(l) In the case of property used exclusively for the exempt purposes specified in this section, owned and operated by limited liability companies that are organized and operated for those purposes, the State Board of Equalization shall adopt regulations to specify the ownership, organizational, and operational requirements for those companies to qualify for the exemption provided by this section.

(m) The amendments made by Chapter 354 of the Statutes of 2004 apply with respect to lien dates occurring on and after January 1, 2005.

(n) The amendments made by Chapter 836 of the Statutes of 2016 apply with respect to lien dates occurring on and after January 1, 2017.

(o) The amendments made by Chapter 694 of the Statutes of 2018 apply with respect to lien dates occurring on and after January 1, 2019.

(p) Notwithstanding Section 20 or any other law, the State Board of Equalization is responsible for administering the welfare exemption provided by this section, except where the law places responsibility for administering that exemption with the county assessor.

SEC. 3.SEC. 4.

The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances in the City and County of San Francisco.

SEC. 4.SEC. 5.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

SEC. 5.SEC. 6.

Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

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Bill Text: CA SB1227 | 2023-2024 | Regular Session | Amended

California Senate Bill 1227

LEGISLATIVE COUNSEL'S DIGEST

Digest Key

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

21080.59.

SEC. 2.

CHAPTER 8. San Francisco Downtown Revitalization

21189.100.

21189.101.

21189.102.

21189.103.

21189.104.

21189.105.

21189.106.

21189.107.

21189.108.

21189.109.

21189.110.

21189.111.

21189.112.

21189.113.