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 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 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, 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 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.
(c) Subdivision (b) applies only if the development 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 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 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, 2032, and as of that date is repealed.