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(a) Pilot Project Approval Required. To operate an Emerging Technology upon, over, or under City property or the public right-of-way, the Emerging Technology Company must obtain Approval of a Pilot Project Proposal from the OET Director, comply with all conditions of the Approval, and receive a Notice to Proceed.
(b) Exemptions. Notwithstanding any provision of this Section 22G.4, an Emerging Technology Company shall be exempt from the requirement to obtain Approval from the OET Director if the Emerging Technology Company demonstrates to the OET Director’s satisfaction that the Proposed Activities are, in their entirety, independently authorized by federal law or State law, or if the Proposed Activities are entirely within the jurisdiction of one Special Jurisdiction Agency, or if the Proposed Activities are entirely within the jurisdiction of more than one Special Jurisdiction Agency and are governed by an agreement approved by each applicable Special Jurisdiction Agency.
(c) Pilot Project Proposals. Emerging Technology Companies are eligible to submit Pilot Project Proposals in accordance with this Chapter 22G .
(d) Limited Term Approval. OET shall have the discretion to Approve a Pilot Project Proposal that requires City authorization or permission to use or occupy public property, including but not limited to a City-Owned Lot, or a public right-of-way for a Term. The use or occupation of public property includes use and occupation upon, above, or under public property. OET shall be authorized to Approve one extension of the Term for up to an additional 12 months, provided the Pilot Project Sponsor has complied with all applicable conditions of the Approval of the Pilot Project and such an extension is contemplated and not prohibited by any Additional Agency Approval.
(e) Expiration of Pilot Project Authorization. The authorization for the Pilot Project shall automatically cease, and no longer be operative, upon any of the following circumstances:
(1) the expiration of the Term of the Pilot Project, if OET does not extend the Term as permitted in subsection (d); or
(2) if OET extends the Term of a Pilot Project as permitted in subsection (d), upon the expiration of the Term as extended; or
(3) before the expiration of the Term as initially set or extended, if required by any applicable Additional Agency Approval.
(f) Pilot Project Applicant Must Obtain All Additional Agency Approvals. The OET Director’s Approval of a Pilot Project Proposal shall not preclude or supersede any requirement to obtain any Additional Agency Approval required to perform the Pilot Project. This Chapter 22G does not implicitly repeal any requirements for Additional Agency Approval otherwise required by law.
(g) Pilot Projects on City-Owned Lots. The Director of Real Estate may approve the use of City Lots for a Pilot Project under the provisions of Chapter 23 of this Code. Alternatively, the Director of Real Estate may approve the use of City Lots for a Pilot Project under the provisions of this Chapter 22G , in which case the Director of Real Estate is authorized to establish, in consultation with the OET Director, rules and procedures for doing so
(h) Fees. The fee for the initial application for review of a Pilot Project proposal and for any renewal application (“Pilot Project Review Fee Deposit”) shall be $2,006, payable to the Department. The Pilot Project Review Fee Deposit shall be due at the time of application and shall be paid in addition to any other applicable fees authorized pursuant to the Municipal Code, including without limitation Public Works Code Section 2.1.3, which shall be payable separate from the Pilot Project Review Fee Deposit as such additional costs are incurred by OET and City Departments in the administration of the Pilot Project. Beginning with fiscal year 2021-2022, the fee set forth in this subsection (h) may be adjusted each year, without further legislative action, in the following manner. Within the later of six months from the effective date of this Chapter 22G or the end of the first fiscal year containing the effective date, OET shall report to the Controller the revenues generated by the fees for the then-current fiscal year and the costs during that fiscal year of establishing and maintaining OET and implementing the requirements of this Chapter, as of the date of the report, which date can be earlier than the date of the submittal of the report to the Controller, as well as any other information that the Controller requests based on the Controller’s determination that the information would assist in the performance of the Controller’s duties set forth in this Chapter. No later than August 1, 2020, the Controller shall determine whether the existing fees have produced or are projected to produce revenues sufficient to support the costs of establishing and maintaining OET and implementing the requirements of this Chapter and any other services set forth in this Chapter and that the fees will not produce revenue that is significantly more than the costs of providing such services. The Controller shall adjust the fees upward or downward for the fiscal year subsequent to the then-current fiscal year, as may be necessary to ensure that the program recovers the costs of operation without producing revenue that is significantly more than such costs. The adjusted fee shall first become operative on July 1, 2021.
(i) City Department Coordination. OET shall coordinate among City Department Partners to identify applicable Additional Agency Approvals and to develop criteria, rules, procedures, and forms for designing, permitting, and implementing Pilot Projects to test the effects of Emerging Technologies on City resources and San Francisco residents, businesses, and visitors.
(j) Application Submittal. Emerging Technology Companies or other users of Emerging Technologies shall be eligible to submit an application to operate a Pilot Project to OET. The application shall be submitted in a form and manner approved by OET, and shall contain all information and data required by OET, and shall describe the Proposed Activities.
(k) Application Review. OET shall identify all applicable City Department Partners, and shall refer the application for the review of those City Department Partners.
(1) If the Proposed Activities fall entirely within the jurisdiction of one Special Jurisdiction Agency, OET shall refer the application to that Special Jurisdiction Agency for its review and decision-making and such application shall not be subject to further application review under this Chapter 22G unless such Special Jurisdiction Agency elects to follow the procedures and requirements set forth in this Chapter or agrees to the Office’s review of the application under this Chapter. Any Proposed Activities determined to be within the exclusive jurisdiction of the SFMTA shall be subject to and governed by the requirements set forth in Division II of the Transportation Code.
(2) Where the Proposed Activities do not fall entirely within the jurisdiction of one City Department Partner, OET shall consult with all applicable City Department Partners and shall determine whether the Proposed Activities warrant approval of a Pilot Project. The OET Director’s evaluation of the Proposed Activities shall consider factors including but not limited to:
(A) the Guiding Principles expressed in Board of Supervisors Resolution No. 102-18 and reiterated in Section 2 of the ordinance in Board File No. 171123, establishing this Chapter 22G;
(B) the effects of the Emerging Technology on public health, safety, welfare, and convenience;
(C) whether the Emerging Technology and/or the Proposed Activities are likely to have a measurable economic and/or social impact in the three- to ten-year period following the use of the Emerging Technologies;
(D) effects of the Emerging Technology on the labor market; and
(E) whether the Emerging Technology is regulated to the extent required to protect public health, safety, welfare, and convenience, and public spaces.
(3) OET shall not Approve the Pilot Project with respect to the portion of the Proposed Activities on Special Jurisdiction Agency Property if the applicable Special Jurisdiction Agency has notified OET in writing of its denial of permission to proceed with the Proposed Activities on the applicable Special Jurisdiction Agency Property.
(l) Approval Decision.
(1) Application May Be Approved, Approved With Modifications, Denied, or Partially Denied. After the application has been reviewed, the OET Director shall Approve the application, Approve the application with modifications, deny the application, or deny the application in part if the Special Jurisdiction Agency has provided written denial of permission to proceed with the Proposed Activities on Special Jurisdiction Agency Property.
(2) Additional Agency Approvals May Be Required. If an Additional Agency Approval is required before the Pilot Project may proceed, the OET Director’s Approval of the Pilot Project shall require the applicant to obtain all required Additional Agency Approvals prior to the issuance of a Notice to Proceed. OET shall use reasonable efforts to facilitate and coordinate the review of Pilot Project applications by and among City Department Partners.
(3) Pilot Project Parameters Based on Coordination With City Department Partners. OET shall coordinate with the City Department Partners to develop the conditions and parameters of the Pilot Project, including the dates and times of the Pilot Project, the locations at which the use of the Emerging Technology will be authorized during the Pilot Project, and the criteria for evaluating the effects of the Emerging Technology on City infrastructure and resources and San Francisco residents.
(4) Evaluation Criteria. The OET Director may determine criteria for evaluation of Pilot Project applications. In evaluating an application, the OET Director may consider, among other factors, whether the Pilot Project is intended to yield information that could be used to safeguard and further public health, safety, and welfare; develop technical knowledge and expertise regarding the Emerging Technology; or develop best practices and regulatory requirements; or whether the Pilot Project poses unknown or unreasonable risks to public health, safety, and welfare. In addition, the OET Director may consider the extent to which an applicant has the capacity to meet the permit terms based on past experience operating permit programs, including, but not limited to, the applicant’s compliance with applicable laws.
(m) Notice to Proceed. After the Pilot Project Sponsor has obtained the OET Director’s Approval and all required Additional Agency Approvals, the Pilot Project Sponsor shall submit to OET a written request for a Notice to Proceed, and shall include as part of that request evidence of the issuance of all Additional Agency Approvals and satisfaction of all applicable Conditions of Approval. Upon confirming that the applicant has satisfied all Conditions of Approval, OET shall issue a Notice to Proceed that authorizes the applicant to commence performance of the Approved Pilot Project.
(n) Notice of Suspension Due To Failure To Comply With Conditions of Approval. OET and the City Department Partners, as applicable, shall supervise the performance of the Pilot Project and shall require the Permittee to comply with all Conditions of Approval. Failure to comply with the Conditions of Approval shall be grounds for complete or partial suspension of the Pilot Project and OET’s issuance of a Notice of Suspension as described below. If the Pilot Project results in conditions that negatively impact public peace, safety, health, or welfare, the OET Director may suspend, modify, or rescind the Approval decision as may be appropriate under the circumstances. The suspension, modification, rescission, revocation, or termination of any Additional Agency Approval shall result in the automatic suspension of the Pilot Project and may result in enforcement actions brought pursuant to this Chapter 22G and other provisions of the Municipal Code. Upon the suspension of a Pilot Project and upon the OET Director’s determination that the Pilot Project, as modified to exclude the activities that cease to be authorized by an Additional Agency Approval, would not pose dangers to public health, safety, welfare, and convenience that are greater than those posed by the Pilot Project, the OET Director shall have the authority to determine that the Pilot Project shall be allowed to proceed as modified to exclude the activities that cease to be authorized by an Additional Agency Approval. The OET Director’s determination shall not be appealable.
(1) A Notice of Suspension shall inform the Pilot Project Sponsor that the Pilot Project lacks authorization to proceed or operate, and that the Notice to Proceed shall be suspended and shall remain suspended, until there is a Final Decision or the expiration of the time period to appeal the decision of the City Department Partner to suspend, modify, rescind, revoke, or terminate the Additional Agency Approval. A Pilot Project Sponsor’s failure to comply with the Notice of Suspension shall be a violation of the Conditions of Approval and shall be subject to enforcement pursuant to subsection (o).
(2) If the OET Director receives a written notification from a City Department Partner requesting the suspension of the Notice to Proceed as to all or a portion of the Pilot Project, as specified in the City Department Partner’s written notification, due to the City Department Partner’s suspension, modification, rescission, revocation, or termination of such City Department Partner’s Additional Agency Approval, the OET Director shall issue a Notice of Suspension.
(3) If, independent of receiving any written notice from a City Department Partner requesting the suspension of the Notice to Proceed due to the City Department Partner’s suspension, modification, rescission, revocation, or termination of such City Department Partner’s Additional Agency Approval, the OET Director determines that the Pilot Project Sponsor has failed to comply with one or more Condition of Approval, the OET Director shall inform all City Department Partners that issued Additional Agency Approvals and shall issue a Notice of Suspension.
(o) Administrative Penalties or Fines. Failure to comply with any requirement in this Chapter 22G shall be deemed a public nuisance subject to enforcement and administrative citations for such violations. The administrative penalty or fine shall not exceed $1,000 per day for each violation. Administrative penalties shall be assessed, enforced, and collected in accordance with Section 39-1 of the Police Code and administrative fines shall be assessed, enforced, and collected in accordance with Administrative Code Chapter 100, which is incorporated by reference herein.
(1) The OET Director’s issuance of a Notice of Suspension pursuant to subsection (n)(3) may be appealed to the Public Works Director upon the Pilot Project Sponsor’s filing of a written appeal to the Public Works Director within 15 days of the date of the Notice of Suspension.
(2) The OET Director’s issuance of a Notice of Suspension pursuant to subsection (n)(2) shall not be appealable apart from the process, if any, for appealing the action or decision of the City Department Partner responsible for suspending the applicable Additional Agency Approval.
(q) Draft and Final Project Reports. Within 60 days of the expiration of the Term of the Pilot Project, the Pilot Project Sponsor shall submit a draft Pilot Project report including all data concerning the safety and performance of the Pilot Project, and other data as requested by the OET Director, to the OET Director. Within 60 days of receiving the draft Pilot Project report, the OET Director shall issue a final Pilot Project report (“Final Pilot Project Report”) prepared in consultation with the applicable City Department Partners. The Final Pilot Project Report shall summarize the scope of the Pilot Project and include the OET Director’s independent evaluation of the performance of the Pilot Project and recommendations regarding whether new legislation, regulations, or procedures should be adopted to regulate, deregulate, allow, prohibit, or otherwise address such Emerging Technologies on public property or the public right-of-way. Each Final Pilot Project Report shall be available to the public on the Department’s or OET’s website.
(r) Annual Report to the Board of Supervisors. No later than one year from the effective date of this Chapter 22G , and annually thereafter, OET shall submit to the Board of Supervisors and the Mayor an Emerging Technology report (“Annual Report”) that describes the work performed by OET during the prior calendar year including without limitation the Pilot Project Proposals received, the Pilot Projects approved and/or completed during the term covered in the Annual Report, the OET Director’s analysis and recommendations corresponding to each Pilot Project, OET’s analysis of Emerging Technology data, including the effects of Emerging Technologies on public spaces and the labor market, and the OET Director’s conclusions and recommendations regarding such data. As may be required to safeguard public health, safety, welfare, and convenience in light of the effects of particular categories of Emerging Technologies or businesses seeking to utilize, market, test, sell, or launch Emerging Technologies, the Annual Report shall include recommendations that the City, including Special Jurisdiction Agencies, take legislative and/or administrative actions to modify, streamline, consolidate, amend, or terminate, as applicable, existing permit programs and requirements; to create new permit programs; and to streamline or consolidate regulatory review and approval processes and requirements among City Department Partners. The Annual Report shall include recommendations that the Board adopt or refrain from adoption of new legislation to regulate, deregulate, allow, or prohibit such Emerging Technologies upon, above, or below public property or the public right-of-way.
(Added by Ord. 291-19, File No. 191033, App. 12/19/2019, Eff. 1/19/2020)