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SB-330 California Community Colleges: affordable housing.(2021-2022)

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Date Published: 05/27/2021 09:00 PM
SB330:v96#DOCUMENT

Amended  IN  Senate  May 27, 2021
Amended  IN  Senate  March 17, 2021
Amended  IN  Senate  March 02, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 330

Introduced by Senator Durazo

February 08, 2021

An act to amend Sections 81394, 81420, 81423, and 81440 of, and to add Article 1.3 (commencing with Section 81280) to Chapter 2 of Part 49 of Division 7 of Title 3 of, the Education Code, relating to community colleges.


LEGISLATIVE COUNSEL'S DIGEST


SB 330, as amended, Durazo. California Community Colleges: affordable housing.
Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes community college districts throughout the state, and authorizes them to provide instruction at the campuses they operate.
Existing law authorizes the governing board of a community college district to let to any private person, firm, or corporation, any real property that belongs to the community college district if the instrument by which the property is let requires the lessee to construct on the demised premises, or provide for the construction on the real property of, a building or buildings for the joint use of the community college district and the private person, firm, or corporation during the term of the lease or agreement if certain conditions are met, including that no rental fee or other charge for the use of the building or buildings is paid by the community college district. 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.
This bill would additionally authorize a community college district to let to any nonprofit entity any real property, as specified. The bill would authorize the community college district to agree to a rental fee or other charge for that use if the constructed building or buildings are developed and operated as affordable housing for students or employees, as defined, of the community college district, or for both those students and employees. The bill would deem the construction, alteration, demolition, installation, repair, and maintenance work performed to carry out a lease or agreement entered into or renewed after January 1, 2022, pursuant to the above provisions to be public works. The bill would require a lease or agreement entered into or renewed after January 1, 2022, pursuant to the above provisions and parties to those leases and agreements to comply with certain labor-related requirements, including, among others, the use of a skilled and trained workforce, as defined, for the completion of construction work, and would make violations of certain of those requirements subject to civil penalties to be assessed by the Labor Commissioner and paid into the State Public Works Enforcement Fund, as provided.
Existing law authorizes a community college district to enter into a lease or agreement with a city, county, or city and county for the joint occupancy, or a private educational institution for its sole occupancy, of the real property and buildings of the community college district, as provided. Existing law limits the duration of those leases or agreements to a term not to exceed 5 years, as specified.
This bill would authorize a community college district to additionally enter into a lease or agreement with a nonprofit entity, private person, firm, or corporation for joint occupancy of the real property and buildings of the community college district, if the real property and buildings are intended for affordable housing for students or employees of the community college district, or for both those students and employees. Notwithstanding the 5-year limitation, the bill would authorize a lease or agreement for joint occupancy of real property and buildings of the community college district that are intended for affordable housing for students or employees of the community college district, or for both those students and employees, for a term that does not exceed 66 years.
Existing law prohibits the governing board of a community college district from leasing real property for less than fair rental value, as defined, to any entity unless the entity meets certain conditions.
This bill would authorize the governing board of a community college district to additionally lease real property for less than fair rental value to an entity if that entity intends to enter into a lease or agreement with the community college district for joint occupancy of the real property and buildings of the community college district to develop and operate affordable housing for students or employees of the community college district, or for both those students and employees.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Article 1.3 (commencing with Section 81280) is added to Chapter 2 of Part 49 of Division 7 of Title 3 of the Education Code, to read:
Article  1.3. Definitions

81280.
 For purposes of this chapter, the following definitions apply:
(a) “Affordable housing for students or employees” means a housing development with a majority of its rents restricted to levels that are affordable to low-income students, or employees who are persons and families of low or moderate income.
(b) “Low-income student” means a student whose income and asset level does not exceed the level required for the Cal Grant A award or Cal Grant B award.
(c) “Persons and families of low or moderate income” has the same meaning as defined in Section 50093 of the Health and Safety Code.

SEC. 2.

 Section 81394 of the Education Code is amended to read:

81394.
 (a) The governing board of a community college district may let to any nonprofit entity, private person, firm, or corporation, any real property that belongs to the community college district if the instrument by which the property is let requires the lessee to construct on the demised premises, or provide for the construction on the real property of, a building or buildings for the joint use of the community college district and the nonprofit entity, private person, firm, or corporation during the term of the lease or agreement if the following conditions are met:
(1) The title to that portion of the building to be occupied by the nonprofit entity, private individual, person, firm, or corporation shall remain exclusively the personal property of the nonprofit entity or private party during the term of the lease and the title to the portion of the building to be occupied by the community college district shall vest in the community college district upon completion of the building or buildings and acceptance of the building or buildings by the community college district.
(2) Except as provided in subdivision (b), no rental fee or other charge for the use of the building or buildings shall be paid by the community college district.
(b) For a lease or agreement entered into pursuant to subdivision (a), if the constructed building or buildings are developed and operated as affordable housing for students or employees of the community college district, or for both those students and employees, the community college district and the nonprofit entity, private person, firm, or corporation may agree to waive the condition that no rental fee or other charge is to be paid by the community college district for the portion of the building that is for the exclusive use of the community college district.
(c) Construction, alteration, demolition, installation, repair, and maintenance work performed to carry out a lease or agreement entered into or renewed after January 1, 2022, pursuant to subdivision (a) shall be considered public works for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(d) (1) A lease or agreement entered into or renewed after January 1, 2022, pursuant to subdivision (a) shall require the nonprofit entity, private person, firm, or corporation to certify to the community college district that a skilled and trained workforce will be used to perform all construction work to carry out the lease or agreement.
(2) For a lease or agreement entered into or renewed after January 1, 2022, pursuant to subdivision (a), all of the following shall apply:
(A) The nonprofit entity, private person, firm, or corporation 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 perform all construction work to carry out the lease or agreement.
(B) Every contractor and subcontractor shall use a skilled and trained workforce to perform all construction work to carry out the lease or agreement.
(C) (i) Except as provided in clause (ii), the nonprofit entity, private person, firm, or corporation shall provide to the community college district, on a monthly basis while the development 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 community college district pursuant to this clause shall be a public record under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and shall be open to public inspection. A nonprofit entity, private person, firm, or corporation 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 development using the procedures for issuance of civil wage and penalty assessments in Section 1741 of the Labor Code, and may be reviewed pursuant to the 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 performing work to carry out the lease or agreement 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.
(3) For purposes of this subdivision, the following definitions apply:
(A) “Project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(B) “Skilled and trained workforce” has the same meaning as provided in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.

SEC. 3.

 Section 81420 of the Education Code is amended to read:

81420.
 (a) A community college district may enter into a lease or agreement with a city, county, or city and county for the joint occupancy, or a private educational institution for its sole occupancy, of the real property and buildings of the community college district, in accordance with this article.
(b) A community college district may enter into a lease or agreement with a nonprofit entity, private person, firm, or corporation for the joint occupancy of the real property and buildings of the community college district, in accordance with this article, if the real property and buildings are intended for affordable housing for students or employees of the community college district, or for both those students and employees.

SEC. 4.

 Section 81423 of the Education Code is amended to read:

81423.
 (a) Except as provided in subdivision (b), a lease or agreement under this article shall not exceed a term of five years, but may be renewed on the same or different conditions at the end of the term.
(b) A lease or agreement under this article for joint occupancy of real property and buildings of the community college district that are intended for affordable housing for students or employees of the community college district, or for both those students and employees, shall not exceed a term of 66 years.

SEC. 5.

 Section 81440 of the Education Code is amended to read:

81440.
 Notwithstanding any other law, the governing board of a community college district shall not do either of the following:
(a) Make a gift of the community college district’s real property to any entity that is not established by the community college district pursuant to Article 6 (commencing with Section 72670) of Chapter 6 of Part 45.
(b) Lease real property for less than fair rental value, as defined in Section 82542, to any entity unless the entity meets one of the following conditions:
(1) It is established by the community college district pursuant to Article 6 (commencing with Section 72670) of Chapter 6 of Part 45.
(2) It is described in Section 82537.
(3) It is described in Section 72682.
(4) It was in existence on August 31, 1980, and has been or is subsequently recognized by the governing board of a community college district as having a formal relationship with, and working on behalf of, the community college district or a college of the community college district.
(5) It intends to enter into a lease or agreement with the community college district for joint occupancy of the real property and buildings of the community college district to develop and operate affordable housing for students or employees of the community college district, or for both those students and employees, and the lease or agreement is consistent with Section 6 of Article XVI of the California Constitution.