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

(1) “Project” means all construction, alteration, demolition, installation, repair, and maintenance work that is subject to a project labor agreement that meets the requirements of Section 2500 of the Public Contract Code.

(2) “School district” means a school district that operates a labor compliance program that received final approval from the Department of Industrial Relations before January 1, 1997.

(b) A school district entering into a contract awarded pursuant to this chapter for a project that is subject to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) shall retain the discretion to do all of the following:

(1) Terminate the contract at any time before a final project design is submitted to the Division of the State Architect for approval.

(2) Modify the project design or feature in a manner the school district decides is necessary to comply with the California Environmental Quality Act, including, but not limited to, incorporation of mitigation measures identified in an environmental review document for the project to mitigate environmental impacts that the project may cause, or the adoption of alternatives to the project.

(3) Balance the benefits of the proposed project against any of the project’s significant environmental effects if the effects cannot be otherwise avoided or mitigated to a less than significant level.

(4) Disapprove the project design and not proceed with the project’s final design and construction.

(c) A contract awarded pursuant to this chapter by a school district for a project shall include terms specifying conditions set forth in subdivision (b) and shall condition the commencement of any activity beyond the design phase of the contract in compliance with applicable laws, including the California Environmental Quality Act.

(d) A design-build entity or its subcontractors performing work on a project for a school district shall not engage in any activity, including demolition, excavation, grading, or construction, under a contract awarded pursuant to this chapter beyond the design phase unless the school district issues a notice pursuant to subdivision (a) of Section 21152 of the Public Resources Code, as applicable, and issues a notice to proceed with the construction.

(e) For purposes of procuring and awarding a design-build contract for a project pursuant to this chapter, a school district is deemed to have complied with the California Environmental Quality Act if the school district complies with subdivision (b) and a contract awarded pursuant to this chapter contains the terms and conditions described in subdivision (c).

(Added by Stats. 2019, Ch. 275, Sec. 1. (SB 743) Effective January 1, 2020.)