Bill Text: CA SB735 | 2023-2024 | Regular Session | Amended
Bill Title: San Francisco Bay Area Regional Housing Finance Act: expenditure of funds: public works.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed) 2024-08-15 - August 15 hearing: Held in committee and under submission. [SB735 Detail]
Download: California-2023-SB735-Amended.html
|
Amended
IN
Assembly
June 27, 2024 |
|
Amended
IN
Assembly
June 11, 2024 |
|
Amended
IN
Senate
May 18, 2023 |
|
Amended
IN
Senate
April 24, 2023 |
|
Amended
IN
Senate
April 13, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 735
| Introduced by (Coauthor: Assembly Member Ortega) |
February 17, 2023 |
An act to add Sections Section 64650.5 and 64650.6 to the Government Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
SB 735, as amended, Cortese.
San Francisco Bay Area Regional Housing Finance Act: expenditure of funds: public works.
Existing law, the San Francisco Bay Area Regional Housing Finance Act, establishes the Bay Area Housing Finance Authority to raise, administer, and allocate funding for affordable housing in the San Francisco Bay area, as defined, and provide technical assistance at a regional level for tenant protection, affordable housing preservation, and new affordable housing production. The act vests the authority with various powers, including authorizing it to place a measure on the ballot to raise revenue and allocate funds throughout the San Francisco Bay area, apply for and receive grants or loans from public and private entities, incur and issue bonds and other indebtedness, and otherwise incur liabilities or obligations, as specified. The act authorizes the authority to allocate and deploy financing to cities, counties, other public agencies within the San Francisco Bay area, and private
affordable housing developers to finance affordable housing development, as specified. The act requires revenue generated pursuant to the act be used for the construction of new affordable housing, affordable housing preservation, tenant protection programs, planning and technical assistance related to affordable housing, and for infrastructure to support housing and other purposes, as specified.
This bill would limit the expenditure of revenue generated under the act funding or financing new construction or rehabilitation work for projects of 40 or more units.
Existing law defines “public works,” for the purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of
public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement.
Under this bill, a construction or rehabilitation project receiving funding or financing from revenue under the act, as specified, would constitute a public work for which prevailing wages are required to be paid pursuant to existing law. The bill would require that certain projects with 40 units or more be eligible to receive funding or financing from revenue generated under the act only if all construction and rehabilitation will be subject to a project labor agreement, as defined, with the same terms as the San Francisco Bay Area Rapid Transit District Major Projects Project Stabilization Agreement, as specified and defined, except that if a regional or countywide project labor agreement, as defined, that meets
certain requirements is negotiated, then the bill would provide that those projects are eligible for funding or financing from the agency only if all construction and rehabilitation is subject to that project labor agreement. The bill would authorize the authority to negotiate and enter into project labor agreements for projects receiving funding or financing from revenue generated under the act.
Because the willful violation of prevailing wage requirements when engaged in these public works projects would result in the imposition of misdemeanor penalties, this 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 no reimbursement is
required by this act for a specified reason.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 64650.5 is added to the Government Code, to read:64650.5.
(a) Any construction or rehabilitation project receiving funding or financing from revenue generated pursuant to this part, including, but not limited to, a project with under 40 units, shall constitute a public work for which prevailing wages shall be paid for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.(b) Except as otherwise provided in subdivisions (c) and (d), a project with 40 units or more is eligible to receive funding or financing from revenue generated pursuant to this part only if all construction and rehabilitation will be subject to a project labor agreement with the same terms as the BART Major Projects
Project Stabilization Agreement. For purposes of this subdivision and subdivisions (c) and (d), the number of units means the maximum number of units authorized in an entitlement granted by the land use permitting authority for the development project, regardless of whether construction or rehabilitation proceeds in phases or ownership is divided.
(c) Notwithstanding subdivision (b), if a regional project labor agreement is negotiated with mutual agreement between the authority and the relevant building and construction trade councils, then a project with 40 units or more is also eligible to receive funding or financing from revenue generated pursuant to this part if all construction and rehabilitation will be subject to the terms of that regional project labor agreement.
(d) Notwithstanding subdivision (b), if a countywide project labor agreement is negotiated with mutual agreement between the authority and the relevant building and construction trades council, then a project with 40 units or more shall also be eligible to receive funding and financing from revenue generated pursuant to this part if all construction and rehabilitation will be subject to the specific countywide project labor agreement.
(e) The authority may negotiate and enter into project labor agreements for projects receiving funding or financing from revenue generated pursuant to this part.
(f) For purposes of this section:
(1) “BART Major Projects Project Stabilization Agreement” means the Major
Projects Project Stabilization Agreement for the San Francisco Bay Area Rapid Transit District entered into by the district on March 10, 2016.
(2) “Project labor agreement” has the same meaning as in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
Revenue generated pursuant to this part may be used to fund or finance new construction or rehabilitation work only for projects of 40 or more units.
