Cal. Government Code § 15820.202

(a) (1) The board of governors, a participating college, and the board may design, construct, and equip a student housing project. (2) In order for a student housing project to be eligible for financing under this chapter, the ownership interest of a participating college in the site or sites leased with respect to the financing shall be determined by the board to be adequate for purposes of its financing. (3) The board may either approve the student housing project as the property to be leased with respect to the financing or may require a participating college to lease other property of the participating college pursuant to Section 15820.203 for purposes of financing the student housing project. (b) (1) The Department of General Services shall approve plans and specifications for student housing projects constructed pursuant to this chapter upon the request by a participating college. (2) A participating college may assign an inspector during the construction of the student housing project. (c) For purposes of complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), none of the board, the board of governors, or the Department of Finance shall be a lead or responsible agency, and the participating college shall be the lead agency. (d) (1) The State Fire Marshal shall enforce the building standards and other regulations of the State Fire Marshal on student housing projects constructed pursuant to this chapter. (2) For each student housing project constructed by a participating college pursuant to this chapter, the State Fire Marshal may delegate that responsibility to a person identified by the participating college who shall be known as the Designated Participating College Fire Marshal. (e) The board of governors, a participating college, and the board shall enter into an agreement for each student housing project that includes, at a minimum, all of the following: (1) Performance expectations of the parties related to the design and construction or renovation of the student housing project. (2) The student housing project’s scope, schedule, and budget that indicates a project contingency of not less than 10 percent of construction costs. (3) The participating college’s agreement that it will pay for any costs of a student housing project financed pursuant to this chapter in excess of the amount awarded by the state. (4) A detailed description of the source or sources of the funds to be used for the student housing project, other than funds received pursuant to this chapter, and a certification by the participating college that such funds are lawfully available for use to pay costs related to, or necessary for, the student housing project. (5) Guidelines and criteria for use and application of the proceeds of any interim loan and any revenue bonds, notes, or bond anticipation notes issued by the board to pay for the cost of a student housing project. (6) Ongoing maintenance and staffing responsibilities of the participating college for the student housing project and, if applicable, the other property leased pursuant to Section 15820.203, for the term of the financing. (f) The agreement entered into pursuant to subdivision (e) shall include a provision that the participating college agrees to indemnify, defend, and hold harmless the State of California for any and all claims and losses arising out of the acquisition, design, construction, equipping, and financing of the student housing project. The agreement may also contain additional terms and conditions that facilitate the financing by the board. (g) (1) (A) The scope, cost, and any change thereafter to the scope and cost of a student housing project shall be subject to approval and administrative oversight by the Department of Finance and the board. (B) A request submitted by a participating college pursuant to subparagraph (A) shall first be approved for submission to the Department of Finance and the board by the board of governors. (C) A request submitted by a participating college pursuant to subparagraph (A) to reduce the approved bed count shall be eligible for the consideration as a scope change if the chancellor’s office certifies both of the following: (i) The participating college has first pursued and exhausted other cost containment measures, including, but not limited to, value engineering and scope reduction other than bed count reduction. (ii) The student housing project cannot otherwise be completed without a reduction in bed count as evidenced by the participating college having exhausted all cost reduction options described in clause (i), and having fully exhausted all funding sources available to the participating college that can lawfully be expended for the project. (D) The chancellor’s office shall provide a written notice to the Department of Finance and the board certifying the accuracy of all information contained in the documentation provided pursuant to subparagraphs (B) and (C). (2) The Department of Finance shall report changes to scope and cost consistent with Sections 13332.11 and 13332.19. (3) A participating college that conducts work outside of the approved project scope without prior approval from the board and the chancellor’s office shall fund the cost of any design and construction work conducted outside of the approved project scope. (4) If the work conducted outside of the approved project scope was duplicative of the approved project scope, or renders any elements of the approved project scope unnecessary, the state’s share of project costs shall be reduced by the budgeted cost of the impacted elements of the approved project scope. (h) (1) For student housing projects selected for financing under this chapter after June 30, 2026, the participating college shall do both of the following: (A) Request approval to proceed from the board at the completion of the preliminary plans or performance criteria phases. (B) Request approval to proceed from the Department of Finance at the completion of the working drawings and for the award of a contract to a bidder on design-bid-build or design-build projects. (2) The participating college shall include, at a minimum, all of the following in each phase approval submission package: (A) Certification that the project is within cost, scope, and schedule. (B) Certification that the project complies with the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (C) A detailed estimate of project cost. (3) Student housing projects described in this subdivision shall not be eligible for any augmentation, including, but not limited to, augmentation provided in subdivision (e) of Section 13332.11 and subdivisions (d) and (e) of Section 13332.19.