Commission advances labor-compliance bond ordinance to Land Use committee

The Building Inspection Commission on March 15 voted to refer Board of Supervisors ordinance file 230134 to the Land Use Committee. The ordinance would amend the police and building codes to require that project sponsors creating 10 or more residential units maintain a labor-compliance (wage-theft) bond at the issuance of the first construction document rather than at the site-permit stage.

Carl Necito, legislative affairs manager, introduced the measure and said the change is intended to ease the financial burden on developers by shifting the timing of the bond to when construction actually begins. Adam Potosva, legislative aide to Supervisor Mandelmann, described the policy as preserving worker protections while reducing the period developers must carry costly bonds. "This effectively reduces the time developers must carry the bond, which can be a significant cost while still protecting workers from wage theft through all phases of construction," Potosva said.

Commissioners pressed for clarity on the ordinance's definitions. Deputy City Attorney Rob Capela clarified that the ordinance defines "first construction document" as the first building permit issued for a project and that permits or addenda solely for demolition, grading, shoring or site preparation are not included in the bonding requirement. Commissioners also asked whether labor organizations had been engaged; presenters said DBI and sponsors have consulted the San Francisco Labor Council and Local 6 and that those partners have been engaged in the drafting process.

After discussion, the commission approved a motion to move file 230134 to the Land Use Committee for further consideration; the roll-call vote was unanimous.

Next steps: the ordinance will be considered by the Land Use Committee; DBI and legislative staff indicated they will continue outreach to labor groups and agency partners as the item advances.