THE CITY OF MANTECA
LABOR COMPLIANCE PROGRAM MANUAL
City of Manteca
Engineering Department
1001 W. Center Street
Manteca, CA 95337
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The City of Manteca
Labor Compliance Program Manual
The City of Manteca institutes this Labor Compliance Program (“LCP”) for the purpose of implementing its policy relative to the labor compliance provisions of public works contracts partially funded under the Safe Drinking Water, Water Quality and Supply, Flood Control, River, and Coastal Protection Bond Act of 2006 (“Prop 84”). This LCP is being developed and implemented to comply with Public Resources Code § 75075 et seq.
The City of Manteca LCP will adhere to the statutory requirements as enunciated in Section Cal. Lab.
Code § 1771.5(b). It is the intent of The City of Manteca to actively enforce this LCP by having DCM Group LLC Labor Compliance monitor The City of Manteca's Nile Garden Well 30 Project for the payment of prevailing wage rates, and by requiring contractors and sub-contractors having workers on projects to submit certified payroll and supporting documents to demonstrate their compliance with prevailing wage requirements. Should applicable sections of California Labor Code (“Labor Code”) or Title 8 of the California Code of Regulations (“CCR”) be amended, The City of Manteca LCP will modify the affected portions of this program accordingly.
Elba Mijango, City of Manteca Associate Engineer, will act as the LCP primary contact. Victoria Castaneda, President of DCM Group LLC, will serve as the Labor Compliance Officer (“LCO”) for enforcement of this LCP operating under contract with City of Manteca.
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TABLE OF CONTENTS
PAGE
I. LABOR COMPLIANCE PROGRAM OUTLINE, LABOR COMPLIANCE OFFICER DUTIES Components of Labor Compliance Program........................................................................................... 1 Labor Compliance Officer Duties ............................................................................................................ 2 Notice to Bidders ..................................................................................................................................... 2 Construction Contracts/General Requirements ...................................................................................... 2 PWC 100 Submittal and Awarding Body Responsibility ......................................................................... 2 Provide Information and Support to Worker Complaints ........................................................................ 2 Random Onsite Inspection ...................................................................................................................... 3 Summary of Activities to 8 CCR 16434 ................................................................................................... 3 Pursuant to 16430 submittal of annual report each year and Filing of Form 700 ................................... 3 II. LABOR COMPLIANCE MANUAL
Section 1 – Contractor Requirements ..................................................................................................... 4 Section 2 – Review of Certified Payroll Records .................................................................................... 6 Section 3 – Audit of Certified Payroll Records ........................................................................................ 9 Section 4 – Public Requests for Certified Payroll Records ................................................................... 10 Section 5 – Apprenticeship ................................................................................................................... 12 Section 6 – Prevailing Wage Determinations........................................................................................ 13 Section 7 – List of Prevailing Wage Rate Employer Payments and Exclusions ................................... 15 Section 8 – Duties of Labor Compliance Program and Enforcement ................................................... 16 Section 9 – Annual Report .................................................................................................................... 22 Ill. APPENDICES ................................................................................................................................ 23 APPENDIX "A" Suggested Checklist of Labor Law Requirements to Review at Pre-job Conference APPENDIX “B” Audit Record Worksheet
APPENDIX “C” Labor Compliance Review and Enforcement Report Form APPENDIX “D” Request for Approval of Forfeiture
APPENDIX “E” Notice of Temporary Withholding
APPENDIX “F” Notice of Right to Obtain Review
APPENDIX “G” Notice of Withholding of Contract Payments APPENDIX “H” Notice of Transmittal
APPENDIX “I” Notice of Opportunity to Review Evidence
APPENDIX “J” Request to Review Evidence
APPENDIX “K” Forms for Awarding Body, Contractor, and Subcontractors PWC 100 to be submitted electronically to the DIR/DAS
Forms to be submitted by the contractor and subcontractors
1. DAS 140 – Public Works Contract Award Form
2. Fringe Benefit Statement
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3. DAS 142 – Request for the Dispatch of Apprentices
4. Statement of Compliance
5. Form A-131 DLSE Wage Reporting Form
6. Non-Performance or Negative Payroll Form
7. CAC Training Fund Contribution Form
8. Subcontractor Affidavit on Receipt of Final Payment
9. Contractor Affidavit of Compliance
APPENDIX “L” Annual Report – Pursuant to CCR 16431 LCP AR-1 APPENDIX "M" Form 700
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I. LABOR COMPLIANCE PROGRAM OUTLINE, LABOR COMPLIANCE OFFICER DUTIES Components of the Labor Compliance Program
Pursuant to CCR 16421
In accordance with Labor Code Section 1771.5(b), a LCP shall include, but not be limited to, the following requirements:
(1) The Call for Bids, Design-Build Request, and the contract or purchase order shall contain appropriate language concerning the requirements of Chapter 1 of Part 7 of Division 2 of the Labor Code. Pursuant to Labor Code § 1725.5 all contractors bidding on a public works and working on a public works project must be currently registered with the Department of Industrial Relations (DIR) and be in good standing.
(2) A pre-job conference shall be conducted before commencement of the work with contractors and subcontractors listed in the bid or who are required to be identified or prequalified in a Design-Build Contract. At the pre-job conference applicable federal and state labor law requirements shall be discussed, and copies of suggested reporting forms furnished. A checklist, showing which federal and state labor law requirements were discussed, shall be kept for each conference. A checklist in the format of Appendix A presumptively meets this requirement.
(3) A requirement that certified-records be kept by the contractor in accordance with Labor Code §1776 and furnished to the LCP at times designated in the contract, which shall be at least monthly, or within 10 days of any request by the Awarding Body. In addition, the contractor and subcontractors may have to electronically submit certified payroll to the Labor Commissioner if requested. Use of the current version of DIR's "Public Works Payroll Reporting Form" (A-1-131) and Statement of Employer Payments (PW26) constitute presumptive compliance with the requirement for certified payroll records kept in accordance with Labor Code § 1776, provided the forms are filled out accurately and completely. These suggested forms are available from the Department of Industrial Relations (DIR).
(4) A program for orderly review of payroll records and, if necessary, for audits to verify compliance with the requirements of Chapter 1 of Part 7 of Division 2 of the Labor Code. (5} A prescribed routine for withholding penalties, forfeitures, and underpayment of wages for violations of the requirements of Chapter 1 of Part 7 of Division 2 of the Labor Code. (6) All contracts to which prevailing wage requirements apply shall include a provision that contract payments shall not be made when payroll records are delinquent or inadequate. (d) Nothing in this section or these regulations shall be construed as limiting the responsibility and authority of an Awarding Body to take cognizance of prevailing wage violations under Labor Code § 1726 and take any appropriate action pursuant to and in accordance with that responsibility and authority.
(e) It is the responsibility of a LCP to enforce prevailing wage requirements, consistent with the policy of the state as expressed in Labor Code § 90.5(a). A LCP shall take reasonable, vigorous, and prompt action to: (1) determine whether violations exist, and (2) enforce compliance, including through imposition of appropriate penalties and formal enforcement action, when violations are found. A LCP shall neither avoid use of its enforcement authority based on cost considerations nor shall it use that authority in an unreasonable manner to gain leverage over a contractor or subcontractor. Unreasonable use of enforcement authority includes, but is not necessarily limited to, prolonged or excessive withholdings of contract payments without making a determination that a violation has occurred.
(f) The failure of an Awarding Body or Labor Compliance Program to comply with any requirement imposed by this subchapter shall not of itself constitute a defense to the failure to pay prevailing wages or to comply with any other obligation imposed by Labor Code § 1720, et. seq.
To ensure the successful compliance and implementation of this labor compliance program, the following list of activities are conducted by the labor compliance officer:
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Notice to Bidders and Contractors
All advertisements or solicitations for bids for public works/prevailing wage projects must contain appropriate language concerning the requirements of Chapter Labor Code, 1720et. seq. Attention will be drawn to Labor Code § 1771.1(b) requiring all contractors to be registered and in good standing with the DIR. The Notice shall also contain the effective date of the Director's approval of the LCP a telephone number to call for inquiries, questions, or assistance about the LCP. The first advertisement that is printed or made public sets the prevailing wage rates for the life of the project.
Construction Contract/General Requirements
Contracts issued between the Awarding Body and Contractor(s) must contain all components and wording required by Labor Code and CCR. The Labor Compliance Officer also requires contracts to be signed between the prime and their subcontractors which contain prevailing wage requirements pursuant to Labor Code § 1775(B)(1) "The contract executed between the contractor and the subcontractor for the performance of work on the public works project shall include a copy of the provisions of Labor Code §§ 1771, 1775, 1776, 1777.5, 1813 and 1815. b) Preside over the labor compliance portion of all pre-bid and pre-construction meetings. For awarded contractors pursuant to Labor Code § 1771.5(b)(2). At this meeting, the Labor Compliance Officer, will discuss prevailing wage requirements and answer questions. State wage determinations and resource materials are discussed. c) Design and provide specific forms to ensure labor compliance. d) Provide training and support for all contractors and subcontractors performing labor on the project(s).
e) Monitor, log, and track all incoming forms, payrolls, and certifications. f) Interview workers on the jobsites to verify proper classifications and correct wage rates. g) Conduct audits (Appendix B)
PWC 100 Submittal and Awarding Body Responsibility
3. a) Pursuant to Labor Code §1773.3 the Awarding Agency will electronically submit the PWC 100 to the DIR/DAS for contract award, for any project over $1,000.00. b) Pursuant to Labor Code § 1771.1 (b) the Awarding Agency will include notice of contractor and subcontractor registration requirement in all bid and contract documents, and the duty not to accept a bid or enter a contract without proof of the contractor's current registration pursuant to Labor Code §1725.5.
c) The Awarding Agency will specify in the bid documents that the project is subject to compliance monitoring and enforcement by the Department of Industrial Relations, pursuant to Labor Code § 1771.4(a)(1).
d) The Awarding Agency will specify in the contract agreement the requirement for the prime contractor to post job site notices, a prescribed by regulation.
Provide Information and Support for Worker Complaints
4. a) Investigate worker complaints
b) Respond to complaints and requests for certified payroll from public entities. c) Gather supporting documents.
d) Review findings.
e) Complete summary of investigation and findings.
f) Settlement negotiations.
Random, Onsite Inspection
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conduct the interviews. These interviews will occur weekly in accordance with 8 CCR § 16432(d), or confirmation of payroll records pursuant to CCR §16432(c). All onsite interviews shall include visual inspection of (1) "the copy of the wage determination(s) of the DIR of the prevailing wage rate of per diem wages required to be posted at each job site in compliance with Labor Code § 1773.2 and (2) the Notice of Labor Compliance Approval required to be posted at the job site in accordance with 8 CCR § 16429, listing a telephone number to call for inquiries, questions, or assistance with regard to the Labor Compliance Program.” Cross reference onsite interview information with the Project Inspector of Record and Project Superintendent's daily reports. All workers performing labor on the project each day are listed on the Daily Report with classifications and head counts for each contractor indicated, and the type of work they are performing.
Summary of Activities Pursuant to 8 CCR 16434(d)
6. a) For each public work project subject to a LCP’s enforcement of prevailing wage requirements, a separate, written summary of labor compliance activities and relevant facts pertaining to that particular project shall be maintained. That summary shall demonstrate that reasonable and sufficient efforts have been made to enforce prevailing wage requirements consistent with the practice of the Labor Commissioner. Appendix C following this section provides a suggested format for tracking and monitoring enforcement activities. Compliance records for a project shall be retained until the later of: (1) at least one year after the acceptance of the public work or five years after the cessation of all labor on a public work that has not been accepted, or (2) one year after a final decision or judgment in any litigation under Labor Code § 1742. For purposes of this section, a written summary or report includes information maintained electronically, provided that the summary or report can be printed out in hard copy form or is in an electronic format that (1) can be transmitted by e-mail or compact disk and (2) would be acceptable for the filing of documents in a federal or state court of record within this state.
Annual Reports and Filing of Form 700 {FPPC)
7. a) The Labor Compliance Officer will keep a written summary of activities pursuant to 8 CCR §16434(d)
b) The Labor Compliance Officer will submit annual reports pursuant to 8 CCR § 16431 on the LCP AR1 form and submit the report by August 31 each year for the period of July 1- June 30 of the preceding year.
c) Pursuant to 8 CCR §16430 (a) an awarding body that operates either its own LCP or that contracts with a third party to operate all or part of its LCP shall determine and designate those employees and consultants of the program who participate in making governmental decisions for the Awarding Body within the meaning of 2 CCR §§18700-18702.4. Those designated employees and consultants shall be required to file the Fair Political Practices Commission Statements of Economic Interest (FPPC Form 700) and to comply with other applicable requirements of the Political Reform Act (commencing with Gov’t. Code § 87100 de) in connection with work performed on behalf of the Awarding Body. Pursuant to CCR § 16430 (b) Designated employees and consultants who operate or are employed by a third-party labor compliance program shall file their FPPC Form 700 with the filing office of each Awarding Body with which the third-party program contracts, unless the DIR or the FPPC specifies a different or alternative filing location.
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II. LABOR COMPLIANCE MANUAL
For every day a worker works on a job or project that is funded with funds that by statute require a LCP be enforced, and is paid for that work, the employer must pay each worker who performs labor the prevailing rate of per diem wages for holiday and overtime work and certify that the worker was paid correctly. In addition to keeping the payroll records available for the public to see, all contractors bidding public works projects must use the current prevailing wage determinations to bid the labor portion of the project.
Section 1
CONTRACTOR REQUIREMENTS
The contractor and each subcontractor shall maintain payrolls and basic records (timecards, cancelled checks, cash receipts, trust fund forms, accounting ledgers, tax forms, superintendent, and foreman daily logs, etc.) during the course of the work on City of Manteca Nile Garden 30 Project, which are subject to LCP requirements. Such records shall include the name, address, social security number of each worker, his or her classification, a general description of the work each employee performed each day, the rate of pay (including rates of contributions for, or costs assumed to provide fringe benefits), daily and weekly number of hours worked, and actual wages paid. Contractors shall submit certified payroll documents to the Labor Commissioner if the records are requested.
1. Public Works Contract Award Form DAS 140
Pursuant to CA Labor Code 1777.5 (e) the DAS 140 must be filled out with the appropriate apprenticeship box checked from all contractors and subcontractors to the appropriate apprenticeship committee(s), pertaining to each trade, within 10 days of contract signing with the General/Prime Contractor or at least prior to commencing work on the public works project. Two copies of the DAS 140 are provided to the Prime Contractor from each subcontractor so the Prime can forward a copy to the Labor Compliance Officer. Also, confirmation of submittal to the State approved training committee is requested, either email or fax confirmation or a copy of the certified mail receipt.
2. Appendix "A" checklist of labor law requirements
The Appendix "A" will be discussed in detail at the pre-bid and pre-construction meetings, a signed Appendix "A" will be required from the Prime and all subcontractors on the project.
3. Fringe Benefit Statement Form, Statement of Employer Payments Fringe Benefits can be paid by the Contractor in cash directly to the workers or directly to a fund or both. The Fringe Benefit Statement Form includes the names and addresses of funds to which fringes are paid or if cash is paid to the employee or both. Training fees are indicated by trade and to what program and how much per hour are contributed. A separate form is used for each trade. The figures on the form, added to the basic hourly rate or wages on the payroll, should add up to the total hourly prevailing wage amount for the applicable determination.
4. Request for Dispatch of Apprentices Form DAS 142
Pursuant to CA Labor Code § 1777.5(e) each contractor that employs workers in an apprenticeable craft must request the dispatch of apprentices from a state approved apprenticeship training committee within 72 hours of commencing work on a public works project. A copy of the DAS 142 and proof of submittal must be provided to the Prime Contractor in duplicate, so a copy can be forwarded to the Labor Compliance Officer. each contractor must also provide proof of submittal, either fax confirmation or certified mail receipt.
5. Payrolls
All payrolls submitted for review during the course of the contract are logged. The schedule for submitting payroll(s) is indicated in the General Requirements of the contract documents. The Prime Contractor must review their subcontractors' payrolls before they are submitted to check for errors, dates, signatures, or other information and to make sure all components required in the payrolls are included. Pursuant to Labor Code § 1776 all payrolls must include one complete copy with:
a. Employee full name, address, and social security number. b. Full work classification, DIR recognized.
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c. The hourly pay rate, the basic hourly rate added to the fringes and training on the Fringe Benefit Statement (FBS) must equal the Prevailing Wage Rate for that classification. A new FBS must be submitted for each craft if there are any predetermined increases for crafts pertaining to each contractor.
d. Total regular, overtime and holiday hours and hourly rate indicated:
e. The contractor's full name, address, project and name and location, license, and workers compensation number.
f. The dates of the payroll{s).
g. An attached certification including matching dates to the payroll(s) and the signature and title of the person responsible for the payroll. Payroll{s) may be copies but the certification must be original.
The Labor Compliance Program requires that Owners, Partners, Owner-Operators or Officers of Corporations performing labor on prevailing wage projects must be paid no less than prevailing wage rates. There are no exceptions unless they are in supervisory capacity.
The Labor Compliance Officer (LCO) checks that all payrolls are complete, accurate, and received each month before the Prime Contractor's pay application is processed and the check issued. Every payroll is randomly audited for correct classifications, pay rate, overtime, apprentice ratios and accurateness.
If there are any items missing, then the Prime Contractor is notified immediately, and a notice is sent requesting needed documents or outlining discrepancies and requesting corrections within 10 days pursuant to Labor Code 1776 (d). All components of the Labor Compliance Program are confidential.
Names and Social Security Numbers of individuals on payrolls are not made available to anyone except the Division of Labor Standards Enforcement, the DIR, or the Division of Apprenticeship Standards, when requested.
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Section 2
REVIEW OF CERTIFIED PAYROLL RECORDS
Submitting Payrolls
The contractor and each subcontractor shall maintain weekly certified payroll records pursuant to Labor Code § +1776, for submittal to the Labor Compliance Officer and the Department of Industrial Relations, if requested. The contractor shall be responsible for the submittal of payroll records of all its subcontractors. All certified payroll records shall be accompanied by a statement of compliance signed by the contractor or each subcontractor indicating that the payroll records are correct and complete, that the wage rates contained therein are not less than those determined by the Director of the Department of Industrial Relations, and that the classifications set forth for each employee conform with the work performed. Each week of payroll must be filled out completely and dated correctly.
Privacy Considerations Pursuant to 8 CCR § 16403
(a) Records received from the employing contractor shall be kept on file in the office or entity that processed the request for at least 6 months following completion and acceptance of the project.
Thereafter, they may be destroyed unless administrative, judicial, or other pending litigation, including arbitration, mediation, or other methods of dispute resolution, are in process. Copies on file shall not be obliterated in the manner prescribed in subdivision (b) below; (b) copies provided to the public upon written request shall be marked, obliterated, or provided in such a manner that the name, address and Social Security number, and other private information pertaining to each employee cannot be identified. All other information including identification of the contractor shall not be obliterated;
(c) the public entity may affirm or deny that a person(s) was or is employed on a public works contract (by a specific contractor) when asked, so long as the entity requires such information of an identifying nature which will reasonably preclude release of private or confidential information.
Pursuant to 8 CCR § 16404, Use of Electronic Reporting Forms The certified payroll records required by Labor Code § 1776 may be maintained and submitted electronically subject to all the following conditions:
(a) The reports must contain all the information required by Labor Code § 1776, with the information organized in a manner that is similar or identical to how the information is reported on the DIR's suggested "Public Works Payroll Reporting Form" (Form A-1-131); (b) The reports shall be in a format and use software that is readily accessible and available to contractors, awarding bodies, LCP, and the DIR;
(c) Reports submitted to an awarding body, a LCP, the Division of Labor Standards Enforcement, or other entity within the DIR must be either: (1) in the form of a non-modifiable image or record that bears an electronic signature or includes a copy of any original certification made on paper, or alternatively (2) printed out and submitted on paper with an original signature; (d) The requirements for redacting certain information shall be followed when certified payroll records are disclosed to the public pursuant to Labor Code § 1776(e), whether the records are provided electronically or as hard copies; and
(e) No contractor or subcontractor shall be mandated to submit or receive electronic reports when it otherwise lacks the resources or capacity to do so, nor shall any contractor or subcontractor be required to purchase or use proprietary software that is not generally available to the public.
Confirmation of Payroll Records Pursuant to 8 CCR § 16432 The LCO may request copies of timecards, front and back copies of cancelled checks, daily logs, employee sign-in sheets and/or any other record maintained for the purposes of reporting payroll may be requested by the LCO at any time and shall be provided within 10 days following the receipt of the request.
Full Accountability: individuals, laborer or craftsperson working on a public works contract must appear on the payroll. The basic concept is that the employer who pays the trade worker must report that individual on its payroll. This includes individuals working as apprentices in an apprenticeable trade.
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Owner-operators are to be reported by the contractor employing them, rental equipment operators are to be reported by the rental company paying the workers' wages.
Sole owners and partners who work on a contract must also submit a certified payroll record listing the days and hours worked, and the trade classification descriptive of the work done.
The contractor shall provide the records required under this section to the LCO within ten (10) days of each pay day, and available for inspection by the DIR.
When the payrolls are received the LCO will log it on a tracking log, check rates, hours, dates, classification, overtime, and original signatures. Pursuant to 8 CCR § 16432(b) the payroll submitted by a contractor "shall be reviewed by the LCP as promptly as practicable after receipt thereof, but in no event more than 30 days after such receipt." If there are items missing or incomplete or out of compliance, a written notice will be sent to the Prime Contractor who then in turn will forward to their subcontractor. Compliance will be linked to each pay application. The city will withhold an amount equal to the delinquencies or underpayment from the Prime Contractor. The amount will be released when compliance is achieved. If compliance is not achieved, then further Notices will be sent to the contractor and the LCO will follow the outlined enforcement procedures in Section 8 of this manual.
Responsibility for Subcontractors
The Prime/General contractor shall be responsible for ensuring adherence to labor standard provisions by its subcontractors. Moreover, the prime contractor is responsible for Labor Code violations of its subcontractors in accordance with Labor Code § 1775.
Payment to Employees
Employees must be paid unconditionally, and not less often than bi-weekly, the full amounts, that are due and payable for the period covered by the particular payday. Thus, an employer must establish a fixed work week (Sunday through Saturday, for example) and an established payday, (such as every Friday or the preceding day should such payday fall on a holiday). On each, and every payday, each worker must be paid all sums due as of the end of the preceding workweek and must be provided with an itemized wage statement.
Payroll Forms
Contractors and subcontractors must keep payroll records in accordance with Labor Code § 1776, et. seq., including, without limitation, the following:
a. Name of Company, Full Address, Prime Contractor, Contract Number, CA State Contractors License #, workers compensation policy #;
b. Payroll number, week beginning and ending dates, project location; c. Full name, address, SSN of each worker;
d. Complete work classification and description, if necessary; e. Hours of straight time, overtime, and holiday time worked; daily totals along with weekly totals; f. Actual per diem, holiday and overtime wages paid to each journeyman, apprentice, or any other worker that was on the site;
g. Total Hourly rate of pay;
h. Gross Amount;
i. Benefits;
j. Amount paid to the apprenticeship training program for the workers trade (if applicable). k. Deductions; and
l. Net amount and check #.
Certification Form Statement of Compliance
This form is usually found printed on the back of the single page payroll form. If not, the Contractor attaches a Statement of Compliance form to the payroll, with the certification signed and filled out. The box is checked indicating where the fringes are paid. The dates of the certification sheet must match the dates on the payroll. The person with authority to represent the company in a legal matter must sign the certification.
A certification is a legal document. The person having authority to verify its correctness and accuracy signs this document. (i.e., the owner, controller, or a person with authority to sign legal documents).
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To simplify referencing, all payrolls are numbered. This allows payrolls to be logged and aids in determining which payrolls have been received or are missing. If the LCO is missing one, this process enables them to request the payroll by number, to reduce the number of duplicated copies sent back and forth.
In addition to numbering the payrolls, the Contractor is instructed to write or stamp the word "FINAL" on the last payroll submitted for the project. This tells the LCO that the contractor will not be submitting additional payrolls for the project.
Non-Performance/Negative Payroll Reporting Form
This form shall be submitted in lieu of actual payrolls when the contractor or subcontractor is on and does not perform labor for the payroll week.
Fringe Benefit Statement
This form is required to be submitted at the time of the contract signing or at the latest with the first submitted payroll. Benefits to workers must be paid to them, either to acceptable funds or in in their paychecks, and added to the basic hourly wage paid. The total amount of the hourly wage including benefits and training fees must meet or exceed the prevailing wage for that classification of worker.
Employer and Employee Definitions
Owners, owner-operators, corporate officers, and partners, on prevailing wage projects, will be at no less than the prevailing wage rates for their classification, if they perform work on the job site.
Owners or employees who are on the job site in a supervisory capacity, not performing labor, are required to report their hours on the payroll sheet and shall be marked as "supervisory." Salaried Employees
A person on the job as a salaried employee, in a management capacity only (no physical labor with tools or a machine) is exempt from prevailing wage rates but must report his hours on the project.
Worker
A person, who performs labor on the site, pursuant to Labor Code § 1723, is classified as a worker and should be paid in accordance with the published wage rates.
Falsification and Failure to Comply
Falsification of Payroll records, Misclassification of work and or Failure to Accurately Report Hours of Work.
Falsification of payroll records and failure to accurately report hours of work is characterized as deliberate underreporting of hours of work; underreporting the headcount; stating that the proper prevailing wage rate was paid when, in fact it was not; clearly misclassifying the work performed by the worker; and any other deliberate and/or willful act which results in the falsification or inaccurate reporting of payroll records. Such violations are deemed to be willful violations committed with the intent to defraud.
Failure to Make Employer Payments
Employer payments are defined as the amounts stipulated for fringe benefits or trust fund contributions and are determined to be part of the required prevailing wage rate. Failure to make employer payments or provide fringe benefits and/or make trust' fund contributions in a timely manner is equivalent to payment of less than the stipulated wage rate and shall be reported to the Labor Commissioner, upon completion of an investigation and audit.
Kickbacks
The penalty for anyone who is found guilty of accepting fees, bribes, or any other form of Compensation or kick-backs, from a worker on a prevailing wage project, will be charged with a felony. Any person or company that attempts to charge a fee for registration or information about public works employment is guilty of a misdemeanor, pursuant to Labor Code §§ 1778-1779.
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Section 3
AUDIT OF CERTIFIED PAYROLL RECORDS
Audits shall be conducted by the LCO and shall be conducted at the request of the Labor Commissioner to determine whether all tradesworkers on project sites have been paid according to the prevailing wage rates.
An audit record is sufficiently detailed to "verify compliance with the requirements of Chapter 1", Public Works, of Part 7 of Division 2, when the audit record displays that the following procedures were accomplished;
Audits of the obligation to secure workers' compensation means demanding written evidence of a binder issued by the carrier, or telephone or written inquiry to the Workers' Compensation Insurance Rating Bureau;
Audits of the obligations to employ and train apprentices means inquiry to the program sponsor for the apprenticeable craft or trade in the area of the public works as to: Whether contract award information was received, including an estimate of journey-person hours to be performed and the number of apprentices to be employed; whether apprentices have to be requested, and whether the request has been met; whether the program sponsor know of any amounts sent by the contractor or subcontractor to it for the training trust, or the CA Apprenticeship Council; and whether persons listed on the certified payroll in the craft or trade as being less than the journeyperson rate are apprentices registered with that program and working under apprentice agreements approved by the Division of Apprenticeship Standards;
Audits of the obligation to pass through amounts made part of the bid for apprenticeship training contribution, to either the training trust or the CA Apprenticeship Council, means asking for copies of checks sent, or when the audit occurs more than 30 days after the month in which the payroll has been paid, copies of cancelled checks;
Audit of "illegal taking of wages" means inspection of written authorization for Deductions (listed in Labor Code § 224) in the contractor or subcontractor's Files and comparison to wage deduction statements furnished employees (Labor Code § 226), together with an interview of several employees as to any payments not shown on the wage deduction statement; Audits of the obligation to keep records of working hours, and pay not less than required by 8 CCR § 16200(a)(3)(F) for hours worked in excess of 8 hours are the steps for review and audit of Certified Payrolls under 8 CCR § 16432;
Audits of the obligation to pay the prevailing per diem wage, means such steps for Review and Audit of certified weekly payrolls which will produce a report covering compliance in the areas of; All elements defined as the "General Prevailing Rate of Per Diem Wages" in 8 CCR § 16000, which were determined to be prevailing in the Director's determination which was in effect on the date of the call for bids, available in its principal office and posted on the jobsite; All elements defined as "Employer Payments" set forth in 8 CCR § 16000, et. seq., of these regulations, which were determined to be prevailing in the Director's determination which was in effect on the date of the call for bids, and pursuant to Labor Code §1773.2 was to be specified in the call for bids, made available in its principal office and posted on the jobsite.
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Section 4
PUBLIC REQUESTS FOR CERTIFIED PAYROLL RECORDS
Pursuant to Section 16400 of the CA Code of Regulations, requests may be made from any person for Certified copies of payroll records to any of the following entities:
1. a) The Awarding Body
2. b) Any office of the Department of Labor Standards Enforcement, or of the Division of Apprenticeship Standards.
Requests for payroll must be made in writing and contain the following information:
1. The name of the Awarding Body
2. The contract number and or description
3. The job location
4. The name of the contractor
5. The regular business address of the contractor
Acknowledgement of Request
The public entity receiving a request for payroll records must respond to the request for payroll records and indicate an estimated cost of providing payroll(s).
Request to Contractor
The request for copies of payroll records by the awarding body can be in any form that will provide evidence of Receipt thereof, and shall include the following:
1. Specify the records to be provided and the form upon which the information is to be provided.
2. Conspicuous notice of the following:
a) That the person certifying the copies of the payroll records is, if not the contractor, considered as an agent acting on behalf of the contractor.
b) Failure to provide certified copies of the records to the requesting public entity within 10 working days of the receipt of the request will subject the contractor to a penalty of One Hundred Dollars ($100.00) per calendar day or portion thereof for each worker until strict compliance is achieved.
3. Cost of preparation per Section 16402 (see "cost" below). Notice of the right of the awarding body to inspect the original payroll records at the contractor's office upon reasonable written or oral notice.
The cost of preparation to each contractor, subcontractor, or awarding body, when the request was made shall be provided in advance to the person seeking the payroll record. These costs are as follows:
pursuant to 8 CCR § 16402.
One dollar ($1.00) for the first page of the payroll records; .25 cents for each page thereafter; Ten dollars ($10.00) for handling costs.
Payment shall be made in the form of cash, certified check or money order and shall be made payable prior to the release of the documents.
Privacy Considerations
Pursuant to 8 CCR § 16403, Privacy Considerations
(a) Records received from the employing contractor shall be kept on file in the office or entity that processed the request for at least 6 months following completion and acceptance of the project.
Thereafter, they may be destroyed unless administrative, judicial, or other pending litigation, including arbitration, mediation, or other methods of dispute resolution, are in process. Copies on file shall not be obliterated in the manner prescribed in subdivision (b) below; (b) copies provided to the public upon written request shall be marked, obliterated, or provided in such a manner that the name, address and Social Security number, and other private information ATTACHMENT 6
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pertaining to each employee cannot be identified. All other information including identification of the contractor shall not be obliterated;
(c) the public entity may affirm or deny that a person(s) was or is employed on a public works contract (by a specific contractor) when asked, so long as the entity requires such information of an identifying nature which will reasonably preclude release of private or confidential information.
END OF SECTION
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Section 5
APPRENTICESHIP
As specified by the apprenticeship laws, Labor Code §§ 1777.5 and 1777.6, each contractor and subcontractor are required to:
1. Notify the local apprenticeship committee of the award of a contract by submitting a copy of the Public Works Contract Award Form (DAS 140), for each trade employed;
2. Request the Dispatch of Apprentices by submitting a DAS 142, 72 hours prior to starting work, for each craft the contractor will employ. A copy of the request needs to be sent to the Prime Contractor and a copy of proof of submittal, either fax confirmation or certified mail receipt. A union contractor will send this to their union, if the contractor is a non-union contractor this is sent to the training committee they are approved to train through, if the contractor is not approved to train then they must send the request for apprentices to the state approved committee for the jurisdiction of the project. If the first committee cannot provide an apprentice then they have to send the DAS 142 to a second state approved committee found on the DAS website, if they cannot dispatch an apprentice then they will have to request from another committee and so on. Each contractor must keep a copy of correspondence and proof of the requests.
3. Pay every apprentice the prevailing rate of per diem wages for apprentices in the trade to which the worker is registered.
4. Pay only apprentices who are in training under an apprentice program that has been approved by the Chief of the Division of Apprenticeship Standards (DAS) and are parties to written apprenticeship agreements.
5. Ensure the ratio of apprentices to Journeymen employed in a particular craft is no higher than the ratio stipulated in the standards under which the apprenticeship program operates, in no case shall the ratio be less than one {1) hour of apprenticeship work for every five (5) hours of Journeyman work. Where an hourly apprenticeship ratio is not feasible the Chief of the DAS may order a minimum ratio of not less than (1) apprentice for each five (5) Journeyman in a trade. Any work performed by a Journeyman in excess of 8 hours per day or 40 hours per week, shall not be used to calculate the hourly ratio required by this section.
6. It is unlawful for an employer or a labor union to refuse to accept otherwise qualified employees as registered apprentices on any public works, on the grounds of race, religious creed, color, or national origin, ancestry, sex, or age.
7. Pay non-registered apprentices Journeyman's rates for the particular trade or craft.
8. Pay to either an approved Apprenticeship Committee or the CA Apprenticeship Council the apprenticeship training fees listed on the wage rate determination for each hour of work for all Journeymen and apprentices of that craft on the project.
Pursuant to Labor Code § 1777.5, this section shall not apply to contracts of General Contractors or contracts of specialty contractors not bidding for the work through a General or Prime Contractor, where the contracts of the General Contractors or those specialty Contractors involve less than thirty thousand dollars ($30,000). Pursuant to Labor Code § 1777.7(a)(1) "A Contractor or Subcontractor that is determined by the Chief of the DAS to have knowingly violated section 1777.5 shall forfeit as a civil penalty an amount not exceeding one hundred ($100) for each full calendar day of non-compliance..." Pursuant to 8 CCR § 16434(0) Failure to pay the correct apprentice rate or classifying a worker as an apprentice when not properly registered is equivalent to payment of less than the stipulated wage rate and shall be reported to the Labor Commissioner, upon completion of an investigation and audit.
Every employer on a publicly funded project must pay the state training fee, according to their trade, or trades, (if there is more than one involved). It must be withheld from the worker's pay and paid to the state approved apprenticeship program. It can be paid to a fund, the CA Apprenticeship Council, or to another state approved apprenticeship program. Should the administrator(s) of each fund send a letter refusing the funds, then and only the money must be paid to the worker, included in his paycheck, with his other benefits. This must be stated on the fringe benefit statement and must be accompanied by the letter(s) of refusal. There are NO OTHER EXCEPTIONS. Labor Code §§ 1777.5 -1777.6 contain these rules.
END OF SECTION
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Section 6
PREVAILING WAGE DETERMINATIONS
The Department of Industrial Relations issues wage determinations twice a year, in February and August. At that time changes are made to wage rates, fringe benefit rates and/or training fees for the trades and classifications that contractor's use on public works projects. Effective dates of determination are outlined in 8 CCR § 16204.
Asterisked Classifications
a. Single asterisked (*) classifications: these are work pay rates that will not increase for the life of the project. The rate is set by the determination that is in effect for each trade at the time of the first bid advertisement.
b. Double asterisked (**) classifications: these work classifications have increases posted with the determination so the contractors can calculate the increases for the life of the project.
The State publishes the wages on the website of the Department of Labor Statistics and Research (DLSR) and can also be obtained in writing or calling the DLSR. The basis for Determining the Prevailing Wage Rate is outlined in 8 CCR § 16200, and the Director shall follow those procedures specified in Labor Code §§ 1773 and 1777.5.
Pursuant to Labor Code § 1773.4 "Any prospective bidder or his representative, any representative of any craft, classification or type of workman involved, or the awarding body may, within 20 days after commencement of advertising in the call for bids by the Awarding Body, file with the Director of Industrial Relations a verified petition to review the determination of any such rate upon the ground that they have not been determined in accordance with the provision of Section 1773 of this code." Projects subject to Prevailing Wage Law Pursuant to CCR 16001 (a) General Coverage. State prevailing wage rates apply to all public works contracts as set forth in Labor Code §§ 1720, 1720.2, 1720.3, 1720.4, and 1771.
(1) Any interested party enumerated in Section 16000 of these regulations may file with the Director of Industrial Relations or the Director's duly authorized representative, as set forth in Section 16301 of these regulations, a request to determine coverage under the prevailing wage laws regarding either a specific project or type of work to be performed which that interested party believes may be subject to or excluded from coverage as public works under the Labor Code. If such a request is filed by any party other than the awarding body, a copy of the request must be served upon the awarding body, in accordance with the filing procedures set forth in Section 16302{d) of these regulations, when it is filed with the Director.
(2) Within 15 days of receipt of a copy of the request for a coverage determination, the awarding body shall forward to the Director or his/her duly authorized representative as provided for in Section 16301 of these regulations, any documents, arguments, or authorities it wishes to have considered in the coverage determination process.
(3) All parties to the coverage determination request shall have a continuing duty to provide the Director or his/her duly authorized representative as provided for in Section 16301 of these regulations, with relevant documents in their possession or control, until a determination is made. Where any party or parties' agent has a document in their possession, but refuses to release a copy, the Department shall consider that the documents, if released, would contain information adverse to the withholding party's position and may close the record and render a decision on the basis of that inference and the information received.
(b) Federally Funded or Assisted Projects. The application of state prevailing wage rates when higher is required whenever federally funded or assisted projects are controlled or carried out by California awarding bodies.
(c) Field Surveying Projects. Field survey work traditionally covered by collective bargaining agreements is subject to prevailing wage rates when it is integral to the specific public works project in the design, preconstruction, or construction phase.
(d) Residential Projects. Residential projects consisting of single-family homes and apartments up to and including four stories are subject to payment of prevailing wages when paid for in whole or in ATTACHMENT 6
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part out of public funds, including federally-funded or assisted residential projects controlled or carried out by an awarding body.
Note: Such projects may require a special determination by the Director which should be requested by the awarding body at least 45 days before the commencement of advertising of the call for bids by the awarding body.
(f) Maintenance. Public works contracts for maintenance are subject to prevailing wage rate payment as set forth in Labor Code § 1771.
Appeal of Public Works Coverage Determination Pursuant to 8 CCR § 16002.5 (a) Those interested parties enumerated in Section 16000 of these regulations may appeal to the Director of Industrial Relations or the Director's duly authorized representative as set forth in Section 16301 of these regulations a determination of coverage under the public works laws (Labor Code Section 1720 et seq.) regarding either a specific project or type of work under Section 16001(a) of these regulations. Such notice of appeal must be served within 30 days of the issuance of the coverage determination. The party appealing the determination must, in accordance with the filing procedures set forth in Section 16302(d) of these regulations, give written notification to the awarding body and any other identifiable parties.
(b) The notice of appeal shall state the full factual and legal grounds upon which the determination is appealed, and whether a hearing is desired. The decision to hold a hearing is within the Director's sole discretion. The Director may appoint a hearing officer to conduct the hearing and propose a decision on the appeal. The Director shall make the final decision on the appeal. (c) The authority of the Director to determine coverage of projects under the prevailing wage laws is quasi-legislative, and a final determination on any appeal is subject to judicial review pursuant to the Code of Civil Procedure § 1085.
Special Determinations Pursuant to 8 CCR § 16202
(a) Awarding body request. The awarding body shall request the Director to make a determination for a particular craft, classification or type of worker not covered by a general determination. Any such request shall be submitted at least 45 days prior to the bid advertisement date. (b) Department of Industrial Relations initiated determination. Where an awarding body does not specify the prevailing wage rate as set forth in Labor Code § 1773.2, any interested party (as defined in Section 16000 of these regulations) may petition the Director as set forth in Labor Code § 1773.4 and Section 16302 of these regulations. The Labor Commissioner may, prior to the letting of the bid, request such a determination of the Director.
Procedures for Obtaining Prevailing Wage Determination are outlined in 8 CCR § 16205.
Petition to Review Prevailing Wage Determinations is outlined in 8 CCR § 16302.
Hearings Procedure, including a petition to review under Labor Code § 1773.4, shall be followed pursuant to 8 CCR § 16304.
END OF SECTION
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Section 7
LIST OF GENERAL PREVAILING RATE EMPLOYER PAYMENTS & EXCLUSIONS This section includes wording from CA Labor Code Laws pertaining to the following:
Title 8 CCR-Employer Payments
1. The rate of contribution irrevocably made by a contractor or subcontractor a trustee or a third person pursuant to a fund, plan, or program for the benefit of employees, their families and dependents or retirees.
2. The rate of costs to the contractor or subcontractor which may be reasonably anticipated in providing benefits to employees.
3. The rate of contribution irrevocably made by the contractor or subcontractor for apprenticeship or other training programs
4. General Prevailing Rate of Per Diem Wage Includes:
1. straight-time hourly rate of pay and
2. rate for holiday and overtime work; and
3. employer payments for any or all programs or benefits for employees a. medical and hospital care, prescription drugs, dental care, vision care, diagnostic services, and other health and welfare benefits.
b. retirement plan benefits
c. vacations and holidays with pay, or cash payments in lieu of thereof d. compensation for injuries or illnesses resulting from occupational activity e. life, accidental death and dismemberment and disability or sickness and accident insurance.
f. supplemental unemployment benefits
g. thrift, security savings, supplement trust, and beneficial trust funds otherwise designated
h. occupational health and safety research, safety training Exclusions
The term "general prevailing rate of per diem wage" does not include any employer payments for:
1. job related expenses other than travel time and subsistence pay
2. contract administration, operation of hiring halls, grievance processing, or similar purposes, except for those amounts specifically earmarked and used for administration of those type of employee or retiree benefit plans enumerated.
3. Union, organizational, professional, or other dues except as they may be included in and withheld from the basis taxable hourly rate.
4. Industry or trade promotion
5. Political contributions or activities
6. Any benefit to employees, their families and dependents, or retirees including any benefit enumerated above where the contractor or subcontractor is required by Federal, State, or local law to provide such benefit.
END OF SECTION
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Section 8
Duties of the Awarding Body and Labor Compliance Program and Enforcement The City of Manteca LCP shall have the duty to enforce Chapter 1, Part 7, Division 2 of the Labor Code, and the Title 8 CCR's, in a manner consistent with the practice of the Labor Commissioner.
It is the practice of the Labor Commissioner to refer to the Director’s ongoing advisory service of webposted public works coverage determinations as source of information and guidance in making governmental decisions.
It is also the practice of the Labor Commissioner to be represented by an attorney in prevailing wage hearings pursuant to Labor Code §1742(b) and 8 CCR §§17201-17270.
City of Manteca LCP will conduct these same practices above, as well as the following:
Upon receipt of a written complaint alleging that a contractor has failed to pay prevailing wages as required by the Labor Code, this LCP will do all the following:
(1) Within 15 days send written acknowledgment to the complaining party and identify the name, address, and telephone number of the investigator;
(2) Within 15 days provide contractor with the notice required under Labor Code § 1775(c) if complaint is against a contractor;
(3) Notify the complaining party in writing of resolution of the complaint within 10 days of resolution; (4) Notify the complaining party at least once every 30 days of the status if not resolved; and (5) Notify the complaining party at least once every 90 days of status if resolved but under review or in litigation.
City of Manteca Labor Compliance duties with respect to apprenticeship standards will be as follows:
(1) Inform contractors bidding public works contracts about apprenticeship requirements; (2) Send copies of awards (DAS 13, DAS 140's) and notices of discrepancies to the Division of Apprenticeship Standards (DAS);
(3) Refer complaints and promptly report suspected apprenticeship violations to DAS; and (4) City of Manteca shall be responsible for enforcing prevailing wage requirements for apprentices including:
a. That required contributions are paid;
b. Apprentices are paid no less than prevailing apprentice rates; c. That workers listed as apprentices are duly registered with DAS; and d. Any worker not duly registered receives the regular general prevailing wage rate.
City of Manteca LCP shall also maintain a written summary of the LCP activities and relevant facts for each public works project (Use of Appendix C – DIR Suggested Single Project Labor Compliance Review and Enforcement Report Form).
A. Withholding of Contract Payments When Payroll Records are Delinquent or Inadequate “Withhold” means to cease payments by the Awarding Body or others who pay on its behalf, or agents, to the general contractor. Where the violation is by a subcontractor, the general contractor shall be notified of the nature of the violation and reference made to its rights under Labor Code § 1729. “Contracts,” except as otherwise provided by agreement, means only contracts under a single-master contract, including Design-Build contract, or contracts entered as stages of a single project, may be subject of withholding.
“Delinquent payroll records” means those not submitted on the basis set forth in the Contract. “Inadequate payroll records” are any of the following:
1) A record lacking the information required by Labor Code § 1776; 2) A record that contains the required information but is not certified, or is certified by someone ATTACHMENT 6
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not an agent of the contractor or subcontractor; and
3) A record remaining uncorrected by one payroll period, after the awarding body has given the contractor notice of inaccuracies detect by record review and/or audit; provided however, that prompt action will stop any duty to withhold if such inaccuracies do not amount to one (1) percent of the entire weekly payroll in dollar value and do not affect more than half the persons listed as workers employed on that certified weekly payroll, as defined in Labor Code § 1776 and 8 CCR § 16401.
The withholding of contract payments when payroll records are delinquent or inadequate is required by Labor Code § 1771.5(b)(5), and it does not require prior approval of the Labor Commissioner. The Awarding Body shall only withhold those payments due or estimated to be due to the contractor or subcontractor whose payroll records are delinquent or inadequate plus any additional amount the LCP has reasonable cause to believe may be needed to cover a back wage and penalty assessment against the contractor or subcontractor whose payroll records are delinquent or inadequate; provided that a contractor shall be required in turn to cease all payments to a subcontractor who payroll records are delinquent or inadequate until the LCP provides notice that the subcontractor has cured the delinquency or deficiency.
When contract payments are withheld, City of Manteca shall provide contractor and subcontractor (if applicable) with immediate written notice including all relevant information and informs the contractor of the right to request an expedited hearing to review the withholding of contract payments under Labor Code § 1742, limited to the issue of whether the records are delinquent or inadequate or the Labor Compliance has exceeded its authority.
No contract payments shall be withheld solely on the basis of delinquent or inadequate records, after the required records have been produced.
In addition to withholding contract payments based on delinquent or inadequate payroll records, penalties shall be assessed under Labor Code § 1776(g) for failure to timely comply with a written request for certified payroll. The assessment of penalties under Labor Code § 1776(g) does require the approval of the Labor Commissioner.
B. Withholding Contract Payments, When, After Investigation, it is Established that Underpayment or Other Violation has Occurred
“Withhold” and “contracts” have the same meaning set forth in 8 CCR §§ 14635(a) and 16345(b).
Where the violation is by a subcontractor, the general contractor shall be notified of the nature of the violation and reference made to its rights under Labor Code §1729. “Amount equal to the underpayment” is the total of the following determined by payroll review, audit or admission of the contractor or subcontractor:
a. The difference between the amounts paid workers and the correct General Prevailing Wage Rate of Per Diem Wages payments, and determined to be the prevailing rate due workers in such craft, classification, or trade in which they were employed, and the amounts paid; b. The difference between amounts paid on behalf of workers and the correct amounts of Employer Payments and determined to be part of the prevailing wage rate costs of contractors due for employment of workers in such craft, classification, or trade in which they were employed, and the amounts paid;
c. Estimated amounts of “illegal taking of wages;”
d. Amounts of apprenticeship training contributions paid to neither the program sponsor's training trust nor the California Apprenticeship Council; e. Estimated penalties under Labor Code §§1775, 1776 and 1813.
The withholding of contract payments, when, after investigation, it is established that underpayment or other violations have occurred requires the prior approval of the Labor Commissioner under 8 CCR §§ 16436 and 16437.
C. Forfeitures Requiring Approval by the Labor Commissioner “Forfeitures” means the amount of wage, penalties, and forfeitures assessed by the Labor Compliance ATTACHMENT 6
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Program and proposed to be withheld pursuant to Labor Code § 1771.6(a) and include the following:
• Difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate by the contractor or subcontractor, and;
• Penalties assessed under Labor Code §§1775, 1776 and 1813.
If the aggregate number of forfeitures assessed to a contractor or subcontractor is less than $1,000, the forfeitures shall be deemed approved by the Labor Commissioner upon service and the Labor Commissioner's receipt of copies of the following:
• The Notice of Withholding of Contract Payments authorized by Labor Code §1771.6(a); • An Audit;
• A brief narrative identifying the Bid Advertisement Date of the contractor for public work and summarizing the nature of the violation, the basis of the underpayment, and the factors considered in determining the assessment of penalties, if any, under Labor Code § 1775.
For all other forfeitures, approval by the Labor Commissioner shall be requested.
D. Determination of Amount of Forfeiture by the Labor Commissioner Where the LCO requests a determination of the amount of forfeiture, the request shall include a file or report to the Labor Commissioner which contains at least the following information and in suggested format:
Whether the public work has been accepted by the awarding body and whether a valid notice of completion has been filed, the dates if any when those occurred, and the amount of the funds being held in retention by the Awarding Body.
Any other deadline which, if missed, would impede collection; 1) Evidence of violation in narrative form;
2) Evidence of violation obtained under Section 16432 of Title 8 CCR's, and a copy of the audit setting forth the amounts of unpaid wages and applicable penalties; 3) Evidence that before the forfeiture was sent to the Labor Commissioner, a) the contractor and subcontractor were given the opportunity to explain why there was no violation, or that any violation was caused by good faith mistake and promptly corrected when brought to the contractor’s attention, and b) the contractor and subcontractor either did not do so or failed to convince the Labor Compliance Program of its position.
4) Where the LCP seeks not only wages but also a penalty as part of the forfeiture, and the contractor or subcontractor has unsuccessfully contended that the cause of violation was a good faith mistake that was promptly corrected when brought to the contractor or subcontractors’ attention, a short statement should accompany the proposal for a forfeiture, with a recommended penalty amount.
5) Where the LCP seeks only wages or a penalty less than $200 per day as part of the forfeiture, the file should include the evidence as to the contractor or subcontractors’ knowledge of his or her obligation, including the program's communication to the contractor or subcontractor of the obligation in the bid invitations, at the pre-job conference agenda and records, and any other notice given as part of the contracting process.
6) The previous record of the contractor and subcontractor in meeting their prevailing wage obligations.
7) Whether the LCP has been granted approval on only an interim or temporary basis, or whether it has been granted extended authority approval.
The file or report shall be served on the Labor Commissioner as soon as practicable after the violation has been discovered, but not less than 30 days before the final payment, but in no event not less than 30 days before the expiration of the limitations set forth in Labor Code § 1741.
The Labor Commissioner shall affirm, reject, or modify the forfeiture in whole or in part as to the wages ATTACHMENT 6
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and penalties due. The Labor Commissioner's determination of the forfeiture is effective on one of the two following dates:
1) For programs other than having extended authority, the Labor Commissioner's approval, modification, or disapproval shall be served within 30 days of proposed forfeiture. Service on the contractor and subcontractor is effective if made on the last address supplied by the contractor and subcontractor in the record;
2) For programs with extended authority, the Labor Commissioner's approval is effective 20 days after the requested forfeiture are served. If the Labor Commissioner notifies the parties of a decision to undertake further review, the Labor Commission's final approval, modification or disapproval of the proposed forfeiture shall be served within 30 days of the date of notice of further review.
E. Deposits of Penalties and Forfeitures Withheld
Where the involvement of the Labor Commissioner has been limited to a determination of the actual amount of penalty, forfeiture, or underpayment of wages, and the matter has been resolved without litigation by, or against the Labor Commissioner, the Awarding Body shall deposit penalties and forfeitures into its General Fund.
Where collection of fines, penalties, or forfeitures result from court action to which the Labor Commissioner and the California Districts are both parties, the fines, penalties, or forfeitures shall be divided between the General Funds of the State and the California Districts, as the court may decide.
All amounts recovered by suit brought by the Labor Commissioner, and to which the Awarding Body was not a party, shall be deposited in the General Fund of the State of California.
All wages and benefits which belong to a worker and are withheld or collected from a contractor or subcontractor, either by withholding or as a result of court action pursuant to Labor Code § 1775, and which have not been paid to the worker or irrevocably committed on the worker's behalf to a benefits fund, shall be deposited with the Labor Commissioner, who will deal with such wages and benefits in accordance with Labor Code § 96.7.
F. Requests for Review of a Labor Compliance Program Enforcement Action, Settlement Authority
A contractor or subcontractor may request a settlement meeting pursuant to Labor Code =§ 1742 (b) and may request review of an LCP enforcement action in accordance with Labor Code §§ 1771.6(b) and l742 and the 8 CCR § 17201-17270.
The LCP shall have rights and responsibilities of the Enforcing Agency (17202(f)) in responding to such a request for review.
If a contractor or subcontractor seeks review of a Labor Compliance enforcement action, the Labor Commissioner may intervene to represent the Awarding Body, or to enforce relevant provisions of the Labor Code consistent with the practice of the Labor Commissioner, or both.
Except in cases where the Labor Commissioner has intervened pursuant to subpart (b) above, the Labor Compliance Program shall have authority to prosecute, settle or seek the dismissal of any Notice of Withholding of Contract Payments issued pursuant to Labor Code §1771.6 and any review proceeding under Labor Code § 1742, without any further need for approval by the Labor Commissioner. Whenever a Labor Compliance Program settles in whole or in part or seeks and obtains the dismissal of a Notice of Withholding of Contract Payments or a review proceeding under Labor Code § 1742, the Labor Compliance Program shall document the reason for the settlement or request for dismissal and shall make that documentation available to the Labor Commissioner upon request.
G. Notice of Withholding and Review Thereof
After determination of the amount of forfeiture by the Labor Commissioner, the Awarding Body shall provide notice of withholding of contract payments to the contractor and subcontractor, if applicable.
The notice shall be in writing and shall describe the nature of the violation and the amount of wages, penalties, and forfeitures withheld. Service of the notice shall be completed pursuant to Code of Civil Procedure § 1013 by first-class mail and certified mail to the contractor and subcontractor, if applicable.
The notice shall advise the contractor and subcontractor, if applicable, of the procedure for obtaining ATTACHMENT 6
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review of the withholding of contract payments. The awarding body shall also serve a copy of the notice by certified mail to any bonding company issuing a bond that secures the payment of wages covered by the notice and to any surety on the bond, if their identities are known to the awarding body. A copy of the Notice of Withholding of Contract Payments (NWCP) to be utilized by the Awarding Body is found under index of enforcement forms and letters of this manual.
Review of NWCP
An affected contractor or subcontractor may obtain review of the NWCP under this chapter by submitting a written request to the office of the LCP that appears on the NWCP within 60 days after service of the NWCP. If no hearing is requested within 60 days after service of the NWCP, the NWCP shall become final.
Within ten days following the receipt of the request for review, the LCP shall transmit to the Office of the Director – Legal Unit the request for review and copies of the Notice of Withholding of Contract Payments, any audit summary that accompanied the notice, and proof of service or other documents showing the name and address of any bonding company or surety that secures the payment of the wages covered by the notice. A copy of the required Notice of Transmittal to be utilized by the Awarding Body is found under index of forms and letters of this manual.
Upon receipt of a timely request, a hearing shall be commenced within 90 days before the director, who shall appoint an impartial hearing officer possessing the qualifications of an administrative law judge pursuant to Gov’t. Code § 11502(b). The appointed hearing officer shall be an employee of the department but shall not be an employee of the Division of Labor Standards Enforcement. The contractor or subcontractor shall be provided an opportunity to review evidence to be utilized by the LCP at the hearing within 20 days of the receipt of the written request for a hearing. Any evidence obtained by the LCP subsequent to the 20-day cutoff shall be promptly disclosed to the contractor or subcontractor. A copy of a Notice of Opportunity to Review Evidence pursuant to Labor Code § 1742(b) to be utilized is found under index of forms and letters of this manual.
The contractor or subcontractor shall have the burden of providing that the basis for the NWCP is incorrect. The NWCP shall be sufficiently detailed to provide fair notice to the contractor or subcontractor of the issues at the hearing.
Within 45 days of the conclusion of the hearing, the director shall issue a written decision affirming, modifying, or dismissing the assessment. The decision shall be served on all parties pursuant to Code of Civil Procedure § 1013, by first-class mail at the last known address of the party on file with the LCP.
Within 15 days of the issuance of the decision, the Director may reconsider or modify the decision to correct an error, except that of a clerical error, which may be corrected at any time. The Director has adopted regulations setting forth procedures for hearings under this subdivision.
An affected contractor or subcontractor may obtain review of the decision of the director by filing a petition for a writ of mandate the appropriate superior court pursuant to Code of Civil Procedure § 1094.5, within 45 days after service of the decision. If no petition for writ of mandate is filed within 45 days after service of the decision, the order shall become final. If it is claimed in a petition for writ of mandate that the findings are not supported by the evidence, abuse of discretion is established if the court determines that the findings are not supported by substantial evidence in the light of the whole record.
A certified copy of a final order may be filed by the Labor Commissioner in the office of the clerk of the superior court in any county in which the affected contractor or subcontractor has property or has or had a place of business. The clerk, immediately upon the filing, shall enter judgment for the state against the person assessed in the amount shown on the certified order.
A judgment entered pursuant to this procedure shall bear the same rate of interest and shall have the same effect as other judgments and shall be given the same preference allowed by law on other judgments rendered for claims for taxes. The clerk shall not charge for the service performed by him or her pursuant to this section.
This procedure shall provide the exclusive method for review of a NWCP by the Awarding Body to withhold contract payments pursuant to Section 1771.7 and 1771.8.
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Distribution of Forfeited Sums
Before making payments to the contractor of money due under the contract for public work, the Awarding Body shall withhold and retain there all amounts required to satisfy the NWCP. The amounts required to satisfy the NWCP shall not be disbursed by the Awarding Body until receipt of a final order that is no longer subject to judicial review.
Pending a final order, or the expiration of the time period for seeking review of the notice of withholding, the Awarding Body shall not disburse any contract payments withheld.
From the amount recovered, the wage claim shall be satisfied prior to the amount being applied to penalties. If insufficient money is recovered to pay each worker in full, the money shall be prorated among all workers employed on the public works project who are paid less than the prevailing wage rate shall have priority over all Stop Notices filed against the prime contractor.
Wages for workers who cannot be located shall be placed in the Industrial Relations Unpaid Fund and held in trust for the workers pursuant to Section 96.7. Penalties shall be paid into the General Fund of the Awarding Body that has enforced this chapter pursuant to Section 1771.7 and 1771.8.
Debarment Policy
It is policy that the public works prevailing wage requirements set forth in the Labor Code §§ 1720- 1861, be strictly enforced. In furtherance, thereof, construction contractors and subcontractors found to be repeat violators of the California Labor Code shall be referred to the Labor Commissioner for debarment from bidding on or otherwise being awarded any public work contract, within the State of California, for the performance of construction and/or maintenance services for the period not to exceed three (3) years in duration. The duration of the debarment period shall depend upon the nature and severity of the labor code violations and any mitigating and/or aggravating factors, which may be presented at the hearing conducted by the Labor Commissioner for such purpose.
Outreach Activities
To ensure the successful implementation of the Director's Labor Compliance Program, there shall be several outreach activities initiated and maintained.
A. Providing Information to the Public
The Labor Compliance Officer shall be responsible for communication and outreach activities relative to public information on the Awarding Body’s Labor Compliance Program:
1) Regular presentations to contractors at a Job Start Meetings (Pre-job conference); 2) Ongoing communication via correspondence and with workers at job sites when review of the certified payroll records reveals the possibility of prevailing wage violations; 3) Periodic meetings with contractor organizations, prime contractors and subcontractors interested in public works contracting with the Awarding Body B. In-Service Management Training on the Labor Compliance Program The Labor Compliance Program shall provide ongoing management in-servicing and workshops for Facilities Business, Accounting and Legal staff relative to the terms, requirements, and administration of the Labor Compliance Program. Attendance at industry-sponsored prevailing wage seminars and public works training any public works training seminar sponsored by DIR.
END OF SECTION
ATTACHMENT 6
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Section 9
Annual Report
Annual Report on Prevailing Wage Monitoring to the Awarding Body The LCO will submit to the Awarding Body an annual report on prevailing wage monitoring which will include the following information:
a. Monitoring and activities;
b. Record keeping activities;
c. Labor Code violations identified and reported to DLSE; d. Statistical analysis of the prevailing wage violations on Awarding Body public works projects; and
e. Summary of outreach activities
B. Annual Report on the LCP to the Director of the Department of Industrial Relations The Labor Compliance Program shall submit to the Director an annual report on its operation within 60 days after the close of its annual reporting period. The annual reporting period shall be deemed to commence on the first of the month in which a Labor Compliance Program is first granted approval and shall conclude on the last day of the month immediately preceding that date in the following year.
The annual report will be made on the appropriate form (LCP-AR1 for awarding body program enforcing on some, but not all projects). Information in the annual report shall be reported in sufficient detail to afford a basis for evaluating scope and level of enforcement activity of the LCP. Annual report shall also include such additional information as the Labor Compliance may be required to report as a condition of its approval.
The Annual Report for a person or entity operating a third-party LCP shall also include:
1) Certification of compliance with conflict-of-interest disclosure as defined under 2 CCR § 18701 and;
2) A current statement disclosing information required under 8 CCR §§ 16426(a)(2), (3) and (5).
Reports should also include:
1) Number of public works projects and contracts awarded using Bond Act Funds, and their total value;
2) A summary of all Wages and Penalties assessed and/or recovered; 3) A summary of approval of forfeitures not requested from the Labor Commissioner; 4) A summary of cases that are or were subject to Labor Code §1742 proceedings; 5) Any debarment referrals pursuant to Labor Code §1771.1; 6) Any referrals made to the Division of Apprenticeship standards for apprenticeship violations.
Copies of this report will be distributed to the Director of the Department of Industrial Relations and the Awarding Body.
END OF SECTION
ATTACHMENT 6
23 | P a g e
III. APPENDICES: ENFORCEMENT FORMS, LETTERS AND DOCUMENTS ATTACHMENT 6
Appendix A
Suggested Checklist of Labor Law Requirements to Review at Prejob Conference, Section 16421, with suggested Certification by subcontractor.
The federal and state labor law requirements applicable to the contract are composed of but not limited to the following items:
(1) The contractor's duty to pay prevailing wages under Labor Code Section 1770 et seq., should the project exceed the exemption amounts;
(2) The contractor's duty to employ registered apprentices on the public works project under Labor Code Section 1777.5;
(3) The penalties for failure to pay prevailing wages (for non-exempt projects) and employ apprentices including forfeitures and debarment under Labor Code Sections 1775 and 1777.7; (4) The requirement to keep and submit copies upon request of certified payroll records under Labor Code Section 1776, and penalties for failure to do so under Labor Code Section 1776(g); (5) The prohibition against employment discrimination under Labor Code Section 1777.6; the Government Code, and Title VII of the Civil Rights Act of 1964; (6) The prohibition against accepting or extracting kickback from employee wages under Labor Code Section 1778;
(7) The prohibition against accepting fees for registering any person for public work under Labor Code Section 1779; or for filling work orders on public works under Labor Code Section 1780; (8) The requirement to list all subcontractors under Public Contracts Code Section 4104; (9) The requirement to be properly licensed and to require all subcontractors to be properly licensed and the penalty for employing workers while unlicensed under Labor Code Section 1021 and under the California Contractors License Law, found at Business and Professions Code Section 7000 et seq;
(10) The prohibition against unfair competition under Business and Professions Code Sections 17200-17208;
(11) The requirement that the contractor be properly insured for Workers Compensation under Labor Code Section 1861;
(12) The requirement that the contractor abide by the Occupational, Safety and Health laws and regulations that apply to the particular construction project; (13) The federal prohibition against hiring undocumented workers, and the requirement to secure proof of eligibility/citizenship from all workers.
(14) The requirement to provide itemized wage statements to employees under Labor Code Section 226.
Certification:
I acknowledge that I have been informed and am aware of the foregoing requirements and that I am authorized to make this certification on behalf of .
Date Name of person signing and company
Labor Compliance Program Regulations - Appendix A
ATTACHMENT 6
Labor Compliance Program Regulations – Appendix B
Audit Record Worksheets [8 Cal. Code Reg. §16432]
• Public Works Investigation Worksheet
• Public Works Audit Worksheet
• Prevailing Wage Determination Summary
ATTACHMENT 6
DEPT. OF INDUSTRIAL RELATIONS - DIVISION OF LABOR STANDARDS ENFORCEMENT PUBLIC WORKS INVESTIGATION WORKSHEET EMPLOYEE'S NAME SOCIAL SECURITY NUMBER DEPUTY OFFICE DATE Employer Case Number Classification Code
LAST DAY OF
WEEKLY
PERIOD
HOURSOF WORK
TOTAL
DAYS
WORKED
TOTAL
HOURS
WORKED
ACTUAL
RATE
OTHER
COMPENSATION
PAID
TOTAL
WAGES PAID
REQUIRED
WAGE
RATES
OTHER REQUIRED
COMPENSATION
TOTAL
WAGES
REQUIRED
AMOUNT
DUE AND
OWING
No. of Violations
PENALTIES
1775
No. of Violations
PENALTIES 1813 TOTAL TRAINING
FUND
AMOUNT DUE
AND OWING Tue Wed Thurs Fri Sat Sun Mon
S.T.
O.T.
D.T.
S.T.
O.T.
D.T.
S.T.
O.T.
D.T.
S.T.
O.T.
D.T.
S.T.
O.T.
D.T.
S.T.
O.T.
D.T.
S.T.
O.T.
D.T.
S.T.
O.T.
D.T.
S.T.
O.T.
D.T.
ATTACHMENT 6
S.T. O.T. D.T. *OTHER TOTAL WAGES
TOTAL
1775 Per Day
1813 Per Day
TOTAL AMOUNT
DUE
The following entries represent the amounts relied upon for calculating Labor Code 1775 and 1813 penalties.
PENALTIES
NO. 1
PENALTIES NO.
2 PERIOD
WORKED END
DATE
PREVAILING WAGE REQUIREMENTS
CLASSIFICATION
PERIOD
WORKED START
DATE
HOURS WORKED TOTAL
WAGES PAID
AMOUNT
OWING AND
UNPAID
TRNG.
EMPLOYEE FUND
OTHER
WAGES PAID
PROJECT PRIME
PENALTIES DUE AND OWING
AUDIT #/CASE # TRAINING FUND DUE/OWING
TRANSCRIBER
AWARDING BODY
TOTAL AMOUNT DUE/OWING
EMPLOYER / FIRM DEPUTY OFFICE WAGES DUE AND OWING
ADDRESS CITY
PUBLIC WORKS AUDIT WORKSHEET
ATTACHMENT 6
1 2
3 4
5 6
7 8
9 10
11 12
4 5
PREVAILING WAGE DETERMINATION SUMMARY WAGE DETERMINATION INFORMATION CODE
NO. CLASSIFICATION Effective Date
HOURLY
RATE Contributions TRAINING TIME 1/2
HOLIDAY/S
UNDAY
TRAVEL &
SUBSISTENCE
Other hourly
requirements
11 12
CODE
NO. CLASSIFICATION WAGE DETERMINATION NO.
6 7
8 9
10 1
2 3
ATTACHMENT 6
Suggested Single Project Labor Compliance Review and Enforcement Report Form [Appendix C following 8 CCR §16434]
Awarding Body:
Project Name:
Name of Approved Labor Compliance Program:
Bid Advertisement Date:
Acceptance Date:
Notice of Completion Recordation Date:
Summary of Labor Compliance Activities
1. Contract Documents Containing Prevailing Wage Requirements (Identify)
2. Prejob Conference(s) -- Attach list(s) of attendees and dates
3. Notification to Project Workers of Labor Compliance Program’s Contact Person. (Explain Manner of Notification for each project work site.)
4. Certified Payroll Record Review
a. CPRs Received From:
Contractor/Subcontractor For weeks ending (“w/e”) through w/e Labor Compliance Program Regulations - Appendix C
ATTACHMENT 6
b. Classifications identified in CPRs and applicable Prevailing Wage Determinations Classification Determination No.
5. Further investigation or audit due to CPR review, information or complaint from worker or other interested person, or other reason:
a. Independent Confirmation of CPR Data
Contractor/Subcontractor
Worker Interviews Reconciled CPRs with Pay-
(Yes/No) checks or Stubs (Yes/No)
b. Employer Payments (Health & Welfare, Pension, Vacation/Holiday) Confirmation Contractor/Subcontractor
Recipients of Written confirmation
Employer Payments Obtained (Yes/No)
c. Contributions to California Apprenticeship Council or Other Approved Apprenticeship Program
Contractor/Subcontractor
Recipients of Written confirmation
Contributions Obtained (Yes/No)
ATTACHMENT 6
d. Additional Wage Payments or Training Fund Contributions Resulting from Review of CPRs
Additional amounts Additional ExplaContractor/Subcontractor Paid to Workers Training Fund nation *
*
*
*
* Use separate page(s) for explanation
6. Complaints Received Alleging Noncompliance with Prevailing Wage Requirements.
Name of Resolution or
Complainant Date Received Current Status
*
*
*
*
*Use separate page(s) to explain resolution or current status
7. Requests for Approval of Forfeiture to Labor Commissioner Contractor/Subcontractor Date of Request Approved/Modified/Denied
8. Litigation Pending Under Labor Code Section 1742
Contractor/Subcontractor
9. (Check one): Final report this project
DIR Case Number
Annual report this project
Authorized Representative for Labor Compliance Program
ATTACHMENT 6
Labor Compliance Program Regulations – APPENDIX D
REQUEST FOR APPROVAL OF FORFEITURE -- Suggested format
1. AWARDING BODY / THIRD PARTY LCP:
Name and Contact Information: Date of Request:
Name and Contact Information for Awarding Body if different from LCP:
LCP Approval Status (specify if either
interim or temporary or if LCP has
extended authority):
2. PROJECT INFORMATION:
Project Name: Contract Number:
Project Location:
Bid Advertisement Dates: Estimated Date Project is to be completed:
Acceptance Date of Project by the Awarding
Body:
Notice of Completion/Date Recorded with County
Recorder:
Other Relevant Deadline (specify): Amount being held in Retention:
3. CONTRACTOR INFORMATION:
Name and address of Affected Contractor: Name and address of Affected Subcontractor:
General Description of Scope of Work of the Entire Project:
General Description of Scope of Work covered in the proposed Forfeiture (describe and attach relevant portions of contract or subcontract):
1 ATTACHMENT 6
4. LABOR COMPLIANCE PROGRAM INVESTIGATION AND FINDINGS:
Total Amount of Request for Notice of Withholding of Contract Payments:
Wages Due: Training Funds
Due:
Total Penalties Due: Potential Liquidated Damages
[Wages + Training Funds]:
LC 1775 Penalties Due: LC 1813 Penalties
Due:
LC 1776 Penalties Due: Other:
[Provide narrative summaries covering the following]:
A. Statement of Issues.
B. Investigative Report (detailed narrative including but not limited to how the investigation was conducted including worker declarations, reviewing certified payroll records, verification of employer payment contributions, etc.).
C. Audit Report (detailed explanation of how audit was completed addressing each of the issues above).
D. Affected contractor and subcontractor information (how affected contractor and subcontractor were informed of potential violations; summary of their response with respect to violations and penalty issues; and any other information considered in determining recommended penalties).
E. Recommended penalties under Labor Code Section 1775(a) and basis for recommendation, including how factors in subsection (a)(2) of Section 1775 were applied to arrive at the recommended amount(s).
ATTACHMENTS
1. Audit Summary (Appendix B)
2. 1st Bid Advertisement Publication
3. Notice of Completion
4. Scope of Work
5. Complaint form(s) and Declarations, if any
Send the Request and all Attachments to:
Division of Labor Standards Enforcement
Bureau of Field Enforcement
Attn.: Regional Manager
300 Oceangate Blvd., No. 850
Long Beach, CA 90802
COPIES OF THIS REQUEST, INCLUDING ALL ATTACHMENTS, SHALL BE SERVED ON
THE AFFECTED CONTRACTOR AND AFFECTED SUBCONTRACTOR AT THE SAME TIME THAT IT IS SENT TO THE DIVISION OF LABOR STANDARDS ENFORCEMENT.
ATTACHMENT 6
[Name and Contact Information for person issuing Notice] Date: Case or Contract No.:
NOTICE OF TEMPORARY WITHHOLDING OF CONTRACT PAYMENTS DUE TO DELINQUENT OR INADEQUATE PAYROLL RECORDS (8 CCR §16435) Awarding Body: Work performed in County of:
Project Name and Number (if any):
Prime Contractor:
Subcontractor:
Pursuant to Labor Code §1771.5(b)(5) and 8 CCR §16435, contract payments are being withheld due to delinquent or inadequate payroll records.
Contractor or subcontractor whose payroll records are delinquent or inadequate:
The following payroll records are delinquent (specify weeks and due dates):
The following payroll records are inadequate (specify weeks and ways in which records are deemed inadequate under 8 CCR §16435(d)):
Estimated amount of contract payments due to contractor or subcontractor that are being withheld pursuant to this Notice:
See page 2 for additional information, including appeal rights.
Labor Compliance Officer
Labor Compliance Program Regulations - Appendix E
ATTACHMENT 6
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Prime Contractor Obligations: If contract payments are being withheld due to the delinquency or inadequacy of your subcontractor’s payroll records, you are required to cease all payments to that subcontractor until the Labor Compliance Program provides notice that the subcontractor has cured the delinquency or deficiency.
Notice of Right to Obtain Review – Expedited Hearing
An affected contractor or subcontractor may request review an expedited hearing to review this Notice of Withholding of Contract Payments under Labor Code §1742. The only issue in any such review proceeding is whether the specified payroll records are in fact delinquent or inadequate within the meaning of 8 CCR §16435 or whether the Labor Compliance Program has exceeded its authority under 8 CCR §16435. To obtain an expedited hearing, a written request must be transmitted to the both the Labor Compliance Program and to the Lead Hearing Officer for the Director of the Department of Industrial Relations, as follows:
[Name of Labor Compliance Officer,
address, and fax number]
Office of the Director – Legal Unit
Attention: Lead Hearing Officer
Expedited Hearing Request
Fax to: (415) 703-4277
The request for expedited hearing should specify the basis for challenging this Notice and include a copy of this Notice as an attachment. The request should also identify and provide contact information for the person who will represent the contractor or subcontractor at the hearing.
Important Additional Information: This is a Notice of Temporary Withholding of Contract Payments for Delinquent or Inadequate Payroll Records only. This is not a determination of liability for wages or penalties under Labor Code §§1775 and 1776 or any other statute. Contract payments cannot continue to be withheld pursuant to this notice, once the required records have been produced. However, the contractor and subcontractor may still be subject to the assessment of back wages and penalties and the withholding of contract payments if, upon investigation, a determination is made that the contractor or subcontractor violated the public works requirements of the Labor Code.
This Notice only addresses rights and responsibilities under state law. Awarding bodies, labor compliance programs, and contractors may have other rights or responsibilities under federal or local law, where applicable, and may also have additional rights or remedies under the public works contract.
ATTACHMENT 6
Enclosure – text of 8 CCR §16435
§16435. Withholding Contract Payments When Payroll Records are Delinquent or Inadequate. (a) "Withhold" means to cease payments by the Awarding Body, or others who pay on its behalf, or agents, to the general contractor. Where the violation is by a subcontractor, the general contractor shall be notified of the nature of the violation and reference made to its rights under Labor Code Section 1729. (b) "Contracts." Except as otherwise provided by agreement, only contracts under a single master contract, including a Design-Build contract, or contracts entered into as stages of a single project, may be the subject of withholding.
(c) "Delinquent payroll records" means those not submitted on the date set in the contract. (d) "Inadequate payroll records" are any one of the following:
(1) A record lacking any of the information required by Labor Code Section 1776; (2) A record which contains all of the required information but is not certified, or is certified by someone who is not an agent of the contractor or subcontractor;
(3) A record remaining uncorrected for one payroll period after the Labor Compliance Program has given the contractor or subcontractor notice of inaccuracies detected by audit or record review. However, prompt correction will stop any duty to withhold if such inaccuracies do not amount to one (1) percent of the entire Certified Weekly Payroll in dollar value and do not affect more than half the persons listed as workers employed on that Certified Weekly Payroll, as defined in Labor Code Section 1776 and section 16401 of Title 8 of the California Code of Regulations.
(e) The withholding of contract payments when payroll records are delinquent or inadequate is required by Labor Code Section 1771.5(b)(5), and it does not require the prior approval of the Labor Commissioner. The Awarding Body shall only withhold those payments due or estimated to be due to the contractor or subcontractor whose payroll records are delinquent or inadequate, plus any additional amount that the Labor Compliance Program has reasonable cause to believe may be needed to cover a back wage and penalty assessment against the contractor or subcontractor whose payroll records are delinquent or inadequate; provided that a contractor shall be required in turn to cease all payments to a subcontractor whose payroll records are delinquent or inadequate until the Labor Compliance Program provides notice that the subcontractor has cured the delinquency or deficiency. (f) When contract payments are withheld under this section, the Labor Compliance Program shall provide the contractor and subcontractor, if applicable, with immediate written notice that includes all of the following: (1) a statement that payments are being withheld due to delinquent or inadequate payroll records, and that identifies what records are missing or states why records that have been submitted are deemed inadequate; (2) specifies the amount being withheld; and (3) informs the contractor or subcontractor of the right to request an expedited hearing to review the withholding of contract payments under Labor Code Section 1742, limited to the issue of whether the records are delinquent or inadequate or the Labor Compliance Program has exceeded its authority under this section.
(g) No contract payments shall be withheld solely on the basis of delinquent or inadequate payroll records after the required records have been produced.
(h) In addition to withholding contract payments based on delinquent or inadequate payroll records, penalties shall be assessed under Labor Code Section 1776(g) for failure to timely comply with a written request for certified payroll records. The assessment of penalties under Labor Code Section 1776(g) does require the prior approval of the Labor Commissioner under section 16436 of these regulations.
ATTACHMENT 6
Notice of Right to Obtain Review - Formal Hearing
In accordance with Labor Code Sections 1742 and 1771.6, an affected contractor or subcontractor may obtain review of this Notice of Withholding of Contract Payments (NWCOP) by transmitting a written request to the office of the Labor Compliance Program that appears below within 60 days after service of the notice. To obtain a hearing, a written Request for Review must be transmitted to the following address:
Labor Compliance Program
_________________________________________
Review Office-Notice of Withholding of Contract Payments _________________________________________
_________________________________________
A Request for Review either shall clearly identify the Notice of Withholding of Contract Payments from which review is sought, including the date of the Notice, or it shall include a copy of the Notice as an attachment, and shall also set forth the basis upon which the Notice is being contested. In accordance with Labor Code section 1742, the contractor or subcontractor shall be provided an opportunity to review evidence to be utilized by the Labor Compliance Program at the hearing within twenty (20) days of the Labor Compliance Program's receipt of the written Request for Review.
Failure by a contractor or subcontractor to submit a timely Request for Review will result in a final order which shall be binding on the contractor and subcontractor, and which shall also be binding, with respect to the amount due, on a bonding company issuing a bond that secures the payment of wages and a surety on a bond. Labor Code Section 1743.
In accordance with Labor Code Section 1742(d), a certified copy of a final order may be filed by the Labor Commissioner in the Office of the Clerk of the Superior Court in any county in which the affected contractor or subcontractor has property or has or had a place of business. The clerk, immediately upon the filing, shall enter judgment for the State against the person assessed in the amount shown on the certified order.
(continued on next page)
Labor Compliance Program Regulations - Appendix F
ATTACHMENT 6
Opportunity for Settlement Meeting
In accordance with Labor Code Section 1742.1 (b), the Labor Compliance Program shall, upon receipt of a request from the affected contractor or subcontractor within thirty (30) days following the service of this Notice of Withholding of Contract Payments, afford the contractor or subcontractor the opportunity to meet with the Labor Compliance Program's designee to attempt to settle a dispute regarding the notice. The settlement meeting may be held in person or by telephone and shall take place before the expiration of the 60-day period for seeking a hearing as set forth above under the heading Notice of Right to Obtain Review. No evidence of anything said or any admission made for the purpose of, in the course of, or pursuant to, the settlement meeting is admissible or subject to discovery in any administrative or civil proceeding. No writing prepared for the purpose of, in the course of, or pursuant to, the settlement meeting, other than a final settlement agreement, is admissible or subject to discovery in any administrative or civil proceeding. This opportunity to timely request an informal settlement meeting is in addition to the right to obtain a formal hearing, and a settlement meeting may be requested even if a written Request for Review has already been made. Requesting a settlement meeting, however, does not extend the 60-day period during which a formal hearing may be requested.
A written request to meet with the Labor Compliance Program's designee to attempt to settle a dispute regarding this notice must be transmitted to ______________________ at the following address:
_________________________________________
_________________________________________
_________________________________________
Liquidated Damages
In accordance with Labor Code Section 1742.1, after sixty (60) days following the service of this Notice of Withholding of Contract Payments, the affected contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the Notice shall be liable for liquidated damages in an amount equal to the wages, or portion thereof, that still remain unpaid. If this Notice subsequently is overturned or modified after administrative or judicial review, liquidated damages shall be payable only on the wages found to be due and unpaid. If the contractor or subcontractor demonstrates to the satisfaction of the Director of the Department of Industrial Relations that he or she had substantial grounds for believing this Notice to be an error, the Director shall waive payment of the liquidated damages.
Notwithstanding the above, in accordance with Labor Code Section 1742.1 (b), there shall be no liability for liquidated damages if the full amount found due in this Notice, including penalties, has been deposited with the Department of Industrial relations, within sixty 60) days following service of the Notice, for the Department to hold in escrow pending administrative and judicial review. The Department shall release such funds, plus any interest earned, at the conclusion of all administrative and judicial review to the persons and entities that are found to be entitled to such funds.
In lieu of a cash deposit, the contractor may post an undertaking with the Department in full amount of the Notice of Withholding of Contract Payments. The undertaking shall be on the condition that, if any decision is issued by the Director upholding this Notice, in any respect, the contractor shall pay the amount owed pursuant to a decision that is final under Labor Code Section 1742, unless the parties have executed a settlement agreement for the payment of some other amount, in which case ATTACHMENT 6
the contractor shall pay the amount that the contractor is obligated to pay under the terms of the settlement agreement. The undertaking must provide that if the contractor fails to pay the amount owed within ten (10) days of the date the decision is final or the execution of the settlement agreement, a portion of the undertaking equal to the amount owed, or the entire undertaking if the amount exceeds the undertaking is forfeited to the Labor Commissioner for the State of California for the purpose of satisfying the amounts owed under this Notice. A payment bond obtained by a contractor for the public works project which is the subject to this Notice shall not be accepted as an undertaking unless the following two conditions are completely satisfied: (1) the payment bond provides the payment of the full amount of this Notice, including, but not limited to, all wages, training, trust contributions, and penalties, and (2) the conditions of the payment set forth above are expressly agreed to by the affected contractor(s) and the surety which issued the payment bond. The undertaking should be forwarded to the Department as directed below. The Department’s Accounting Office will hold the undertaking until the administrative and judicial review is completed.
The disbursement of the bond funds will follow the same process as described above for a cash deposit.
Deposits must be made by check or money order payable to the Department of Industrial Relations with a letter and a copy of the Notice of Withhold Contract Payments and mailed to:
Department of Industrial Relations
Attention: Cashiering Unit\
P. O. Box 420603
San Francisco, CA 94142
The Amount of Liquidated Damages Available Under this Notice is $_______________.
Distribution: Attach:
Prime Contractor Audit Summary
Subcontractor Proof of Service
Surety(s) on Bond
ATTACHMENT 6
_____________________________________
Labor Compliance Program
_________________________________
_________________________________
_________________________________
_________________________________
Phone:
Fax:
(SEAL )
Date: In Reply Refer to Case No.:
Notice of Withholding of Contract Payments
Awarding Body ³ Work Performed in County of
Project Name ³ Project No.
Prime Contractor
Subcontractor
After an investigation concerning the payment of wages to workers employed in the execution of the contract for the above-named public works project, the Labor Compliance Program for _______________ _______________________ (Awarding Body) has determined that violations of the California Labor Code have been committed by the contractor and/or subcontractor identified above. In accordance with Labor Code sections 1771.5 and 1771.6, the Labor Compliance Program hereby issues this Notice of Withholding of Contract Payments.
The nature of the violations of the Labor Code and the basis for the assessment are as follows:
The Labor Compliance Program has determined that the total amount of wages due is: $___________________
The Labor Compliance Program has determined that the total amount of penalties assessed under Labor Code sections 1775 and 1813 is: $__________________ The Labor Compliance Program has determined that the amount of penalties assessed under Labor Code section 1776 is: $__________________
LABOR COMPLIANCE PROGRAM
By:__________________________________
Labor Compliance Program Regulations - Appendix G
ATTACHMENT 6
_________________________________________
_________________________________________
_________________________________________
Notice of Right to Obtain Review - Formal Hearing
In accordance with Labor Code sections 1742 and 1771.6, an affected contractor or subcontractor may obtain review of this Notice of Withholding of Contract Payments (NWCP) by transmitting a written request to the office of the Labor Compliance Program that appears below within 60 days after service of the notice. To obtain a hearing, a written Request for Review must be transmitted to the following address:
Labor Compliance Program
Review Office-Notice of Withholding of Contract Payments A Request for Review either shall clearly identify the Notice of Withholding of Contract Payments from which review is sought, including the date of the notice, or it shall include a copy of the notice as an attachment, and shall also set forth the basis upon which the notice is being contested. In accordance with Labor Code section 1742, the contractor or subcontractor shall be provided an opportunity to review evidence to be utilized by the Labor Compliance Program at the hearing within 20 days of the Labor Compliance Program's receipt of the written Request for Review.
Failure by a contractor or subcontractor to submit a timely Request for Review will result in a final order which shall be binding on the contractor and subcontractor, and which shall also be binding, with respect to the amount due, on a bonding company issuing a bond that secures the payment of wages and a surety on a bond. Labor Code section 1743.
In accordance with Labor Code section 1742(d), a certified copy of a final order may be filed by the Labor Commissioner in the office of the clerk of the superior court in any county in which the affected contractor or subcontractor has property or has or had a place of business. The clerk, immediately upon the filing, shall enter judgment for the State against the person assessed in the amount shown on the certified order. (continued on next page)
ATTACHMENT 6
_________________________________________
_________________________________________
_________________________________________
Opportunity for Settlement Meeting
In accordance with Labor Code Section 1742.1 (c), the Labor Compliance Program shall, upon receipt of a request from the affected contractor or subcontractor within 30 days following the service of this Notice of Withholding of Contract Payments, afford the contractor or subcontractor the opportunity to meet with the Labor Compliance Program's designee to attempt to settle a dispute regarding this Notice. The settlement meeting may be held in person or by telephone and shall take place before the expiration of the 60-day period for seeking a hearing as set forth above under the heading Notice of Right to Obtain Review. No evidence of anything said or any admission made for the purpose of, in the course of, or pursuant to, the settlement meeting is admissible or subject to discovery in any administrative or civil proceeding. No writing prepared for the purpose of, in the course of, or pursuant to, the settlement meeting, other than a final settlement agreement, is admissible or subject to discovery in any administrative or civil proceeding. This opportunity to timely request an informal settlement meeting is in addition to the right to obtain a formal hearing, and a settlement meeting may be requested even if a written Request for Review has already been made. Requesting a settlement meeting, however, does not extend the 60-day period during which a formal hearing may be requested.
A written request to meet with the Labor Compliance Program's designee to attempt to settle a dispute regarding this notice must be transmitted to ______________________ at the following address:
Liquidated Damages
In accordance with Labor Code section 1742.1 (a), after 60 days following the service of this Notice of Withholding of Contract Payments, the affected contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the notice shall be liable for liquidated damages in an amount equal to the wages, or portion thereof that still remain unpaid. If this Notice subsequently is overturned or modified after administrative or judicial review, liquidated damages shall be payable only on the wages found to be due and unpaid. If the contractor or subcontractor demonstrates to the satisfaction of the Director of the Department of Industrial Relations that he or she had substantial grounds for believing this Notice to be an error, the Director shall waive payment of the liquidated damages.
Notwithstanding the above, in accordance with Labor Code 1742.1 (b), there shall be no liability for liquidated damages if the full amount found due in this Notice, including penalties, has been deposited with the Department of Industrial Relations, within 60 days following service of this Notice, for the Department to hold in escrow pending administrative and judicial review. The Department shall release such funds, plus any interest earned, at the conclusion of all administrative and judicial review to the persons and entities who are found to be entitled to such funds.
In lieu of a cash deposit, the contractor may post an undertaking with the Department in full amount of the Notice of Withholding of Contract Payments. The undertaking shall be on the condition that, if any decision is issued by the Director upholding this Notice in any respect, the contractor shall pay the amount owed pursuant to a decision that is final under Labor Code Section 1742, unless the parties have executed a settlement agreement for the payment of some other amount, in which case the contractor shall pay the ATTACHMENT 6
amount that the contractor is obligated to pay under the terms of the settlement agreement. The undertaking must provide that if the contractor fails to pay the amount owed within 10 days of the date the decision is final or the execution of the settlement agreement, a portion of the undertaking equal to the amount owed, or the entire undertaking if the amount exceeds the undertaking is forfeited to the Labor Commissioner for the State of California for the purpose of satisfying the amounts owed under this Notice. A payment bond obtained by a contractor for the public works project which is the subject to this Notice shall not be accepted as an undertaking unless the following two conditions are completely satisfied: (1) the payment bond provides the payment of the full amount of this Notice, including but not limited to, all wages, training, trust contributions, and penalties, and (2) the conditions of payment set forth above are expressly agreed to by the affected contractor(s) and the surety which issued the payment bond. The undertaking should be forwarded to the Department as directed below. The Department’s Accounting Office will hold the undertaking until the administrative and judicial review is completed. The disbursement of the bond funds will follow the same process as described above for a cash deposit.
Deposits must be made by check or money order payable to the Department of Industrial Relations with a letter and a copy of the Notice of Withhold Contract Payments and mailed to:
Department of Industrial Relations
Attention Cashiering Unit
P.O. Box 420603
San Francisco, CA 94142
The Amount of Liquidated Damages Available Under this Notice is $_______________.
Distribution: Attach:
Prime Contractor
Subcontractor
Surety(s) on Bond
Audit Summary
Proof of Service
ATTACHMENT 6
________________________________
LABOR COMPLIANCE PROGRAM
________________________________
Review Office - Notice of Withholding
of Contract Payments
_________________________________
_________________________________
_________________________________
Phone:
Fax:
(SEAL )
Date: In Reply Refer to Case No.:
Notice of Transmittal
To: Department of Industrial Relations
Office of the Director-Legal Unit
Attention: Lead Hearing Officer
P. O. Box 420603
San Francisco, CA 94142-0603
Enclosed herewith please find a Request for Review, dated __________________, postmarked ___________________, and received by this office on ____________________.
Also enclosed please find the following:
____ Copy of Notice of Withholding of Contract Payments ____ Copy of Audit Summary
LABOR COMPLIANCE PROGRAM
By:_____________________________
cc: Prime Contractor
Subcontractor
Bonding Company
Please be advised that the Request for Review identified above has been received and transmitted to the address indicated. Please be further advised that the governing procedures applicable to these hearings are set forth at Title 8, California Code of Regulations sections 17201-17270. These hearings are not governed by Chapter 5 of the Government Code, commencing with section 11500.
Labor Compliance Program Regulations - Appendix H
ATTACHMENT 6
__________________________
__________________________
__________________________
__________________________
__________________________
__________________________
LABOR COMPLIANCE PROGRAM
________________________________
Review Office - Notice of Withholding
of Contract Payments
_________________________________
_________________________________
_________________________________
Phone:
Fax:
(SEAL )
Date: In Reply Refer to Case No.:
Notice of Opportunity to Review Evidence Pursuant to Labor Code Section 1742(b) To: Prime Contractor
Subcontractor
Please be advised that this office has received your Request for Review, dated _____________, and pertaining to the Notice of Withholding of Contract Payments issued by the Labor Compliance Program in Case No. _____________.
In accordance with Labor Code section 1742(b), this notice provides you with an opportunity to review evidence to be utilized by the Labor Compliance Program at the hearing on the Request for Review, and the procedures for reviewing such evidence.
Rule 17224 of the Prevailing Wage Hearing Regulations provides as follows:
A(a) Within ten (10) days following its receipt of a Request for Review, the Enforcing Agency shall also notify the affected contractor or subcontractor of its opportunity and the procedures for reviewing evidence to be utilized by the Enforcing Agency at the hearing of the Request for Review. (b) An Enforcing Agency shall be deemed to have provided the opportunity to review evidence required by this Rule if it (1) gives the affected contractor or subcontractor the option at said party's own expense to either (i) obtain copies of all such evidence through a commercial copying service or (ii) inspect and copy such evidence at the office of the Enforcing Agency during normal business Labor Compliance Program Regulations - Appendix I
ATTACHMENT 6
________________________________
________________________________
________________________________
________________________________
________________________________
hours; or if (2) the Enforcing Agency at its own expense forwards copies of all such evidence to the affected contractor or subcontractor. (c) The evidence required to be provided under this Rule shall include the identity of witnesses whose testimony the Enforcing Agency intends to present, either in person at the hearing or by declaration or affidavit. This provision shall not be construed as requiring the Enforcing Agency to prepare or provide any separate listing of witnesses whose identities are disclosed within the written materials made available under subpart (a).
(d) The Enforcing Agency shall make evidence available for review as specified in subparts (a) through (c) within 20 days of its receipt of the Request for Review; provided that, this deadline may be extended by written request or agreement of the affected contractor or subcontractor. The Enforcing Agency's failure to make evidence available for review as required by Labor Code section 1742(b) and this Rule, shall preclude the enforcing agency from introducing such evidence in proceedings before the Hearing officer or the Director. (e) This Rule shall not preclude the Enforcing Agency from relying upon or presenting any evidence first obtained after the initial disclosure of evidence under subparts (a) through (d), provided that, such evidence is promptly disclosed to the affected contractor or subcontractor. This Rule also shall not preclude the Enforcing Agency from presenting previously undisclosed evidence to rebut new or collateral claims raised by another party in the proceeding.@ In accordance with the above Rule, please be advised that the Labor Compliance Program's procedure for you to exercise your opportunity to review evidence is as follows:
Within five calendar days of the date of this notice, please transmit the attached Request to Review Evidence to the following address:
Attention:________________________
ATTACHMENT 6
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
________________________________
Request to Review Evidence
To: ______________________________
From:______________________________
Regarding Notice of Withholding of Contract Payments Dated ____________ Our Case No.: _________________
The undersigned hereby requests an opportunity to review evidence to be utilized by the Labor Compliance Program at the hearing on the Request for Review.
Phone No.:_______________________
Fax No.:_________________________
ATTACHMENT 6
Request to Review Evidence
To: ______________________________
______________________________
______________________________
______________________________
From:______________________________
______________________________
______________________________
______________________________
Regarding Notice of Withholding of Contract Payments Dated ____________ Our Case No.: _________________
The undersigned hereby requests an opportunity to review evidence to be utilized by the Labor Compliance Program at the hearing on the Request for Review. ________________________________
Phone No.:_______________________
Fax No.:_________________________
Labor Compliance Program Regulations - Appendix J
ATTACHMENT 6
Labor Compliance Program Regulations - Appendix K
ATTACHMENT 6
ATTACHMENT 6
ATTACHMENT 6
ATTACHMENT 6
ATTACHMENT 6
ATTACHMENT 6
ATTACHMENT 6
ATTACHMENT 6
ATTACHMENT 6
ATTACHMENT 6
ATTACHMENT 6
___________________________________________ ________________________________________________________ ________________________________ LCP-AR1
LABOR COMPLIANCE PROGRAM ANNUAL REPORT
Format for Awarding Body that enforces its own Labor Compliance Program for some but not all projects Report for the reporting period ______________ to _____________ (mm/dd/yyyy) (mm/dd/yyyy)
1. Name of Labor Compliance Program (LCP) :
2. LCP I.D. Number (assigned by DIR): 3. Date of Initial Approval:
4. Contact person (include name, title, address, telephone, fax, and e-mail, if available):
5. Did LCP perform any LC § 1771.5 enforcement activities during the 12 months in the reporting period? Please check one: Yes If Yes, proceed to item 6 on the next page No If No, complete the information below, sign the form and submit to DIR, Office of the Director, Attn: LCP Special Assistant, 1515 Clay Street, 17th Floor, Oakland CA 94612
What suggestions do you have for the Department of Industrial Relations to better assist you with your program in the coming year? (attach additional sheets if necessary)
SUBMITTED BY:
Signature Name and Title Date
LCP ANNUAL REPORT 8 CCR § 16431 -- AB limited 2008 Labor Compliance Program Regulations - Appendix L ATTACHMENT 6
LCP-AR1
6. LC § 1771.5 enforcement activities (provide all information requested, attaching as many sheets as necessary).
A. List projects handled by LCP within the past 12 months.
Project Name Bid Advertisement Date Prime Contractor Contract Amount Total
B. Summary of all wages and penalties assessed and/or recovered.
Project Name
Affected Contractor
(who directly employed the
worker)
Amount
Assessed
Amount
Recovered
Approval of
Forfeiture
Requested from
Labor
Commissioner?
Description of Violation
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Total
LCP ANNUAL REPORT 8 CCR § 16431 -- AB limited 2008
ATTACHMENT 6
LCP-AR1
C. For any amount identified in item B for which approval of forfeiture not requested from the Labor Commissioner, please explain below.
Project Name Amount Assessed Amount
Recovered Explanation
Total
D. For any amount identified in item B for which approval of forfeiture was requested from the Labor Commissioner, please provide the following:
Project Amount Assessed Amount Recovered
Name LC §1776(g) LC § 1775 LC § 1813 Wages Total LC § 1776(g) LC § 1775 LC § 1813 Wages Total Total
E. Identify cases that are or were the subject of LC § 1742 proceedings.
Project Name Contractor Nature of Violation ODL Case # Current Status F. Did you refer any contractor to the Labor Commissioner for debarment per LC § 1777.1? No
If yes, identify affected contractor(s) or subcontractor(s) and date(s) of referral: __________________________________________________________________ Please check one: Yes
G. Did you refer any apprenticeship violation to the Division of Apprenticeship Standards (DAS)? No
If yes, identify affected contractor(s) or subcontractor(s) and date(s) of referral:
Please check one: Yes
LCP ANNUAL REPORT 8 CCR § 16431 -- AB limited 2008
ATTACHMENT 6
December 2012
2012/2013
Statement of
Economic Interests
Form 700
California Fair Political Practices Commission
428 J Street, Suite 620 • Sacramento, CA 95814
Email Advice: [email protected]
Toll-free advice line: 1 (866) ASK-FPPC • 1 (866) 275-3772 Telephone: (916) 322-5660 • Website: www.fppc.ca.gov
A Public Document
Also available on the FPPC website:
• Form 700 in Excel format
• Reference Pamphlet for Form 700
Labor Compliance Program Regulations - Appendix M
ATTACHMENT 6
What’s New
During 2011 and 2012, the gift limit was $420 from a single source per calendar year. For calendar years 2013-2014, the limit increased to $440 from a single source during a calendar year. This gift limit is effective until December 31, 2014.
Filing Deadlines for Filers Under Active Military Duty– If a person is under active military duty as defined in the Servicemember’s Civil Relief Act, the deadline for the annual Form 700 is 30 days following his or her return to office, provided the person or a representative notifies the filing officer in writing prior to the filing deadline that he or she is subject to that federal statute and is unable to meet the applicable deadline, and provides the filing officer verification of his or her military status.
Who must file:
• Elected and appointed officials and candidates listed in Government Code Section 87200
• Employees and appointed officials filing pursuant to a conflictof-interest code (“code filers”). Obtain your disclosure categories, which describe the interests you must report, from your agency; they are not part of the Form 700
• Candidates running for local elective offices that are designated in a conflict-of-interest code (e.g., county sheriffs, city clerks, school board trustees, and water board members) • Members of newly created boards and commissions not yet covered under a conflict-of-interest code
• Employees in newly created positions of existing agencies See Reference Pamphlet, page 3, at www.fppc.ca.gov or obtain from your filing officer.
Where to file:
87200 Filers
State offices Your agency
Judicial offices The clerk of your court
Retired Judges Directly with FPPC
County offices Your county filing official
City offices Your city clerk
Multi-County offices Your agency
Code Filers — State and Local Officials and Employees
Designated in a Conflict-of-Interest Code:
File with your agency, board, or commission unless otherwise specified in your agency’s conflict-of-interest code (e.g., Legislative staff files directly with FPPC). In most cases, the agency, board, or commission will retain the statements.
Members of Boards and Commissions of Newly Created
Agencies: File with your newly created agency or with your agency’s code reviewing body.
Employees in Newly Created Positions of Existing Agencies:
File with your agency or with your agency’s code reviewing body.
See Reference Pamphlet, page 3.
Candidates: File with your local elections office.
How to file:
The Form 700 is available at www.fppc.ca.gov. Form 700
schedules are also available in Excel format. All statements must have an original “wet” signature or be duly authorized by your filing officer to file electronically under Government Code Section 87500.2. Instructions, examples, FAQs, and a reference pamphlet are available to help answer your questions.
When to file:
Annual Statements
March 1, 2013
- Elected State Officers
- Judges and Court Commissioners
- State Board and Commission Members listed in
Government Code Section 87200
April 2, 2013
- Most other filers
Individuals filing under conflict-of-interest codes in city and county jurisdictions should verify the annual filing date with their local filing officers.
Statements postmarked by the filing deadline are considered filed on time.
Assuming Office and Leaving Office Statements
Most filers file within 30 days of assuming or leaving office or within 30 days of the effective date of a newly adopted or amended conflict-of-interest code.
Exception:
If you assumed office between October 1, 2012, and December 31, 2012, and filed an assuming office statement, you are not required to file an annual statement until March 3, 2014, or April 1, 2014, whichever is applicable. The annual statement will cover the day after you assumed office through December 31, 2013. See Reference Pamphlet, pages 6 and 7, for additional exceptions.
Candidate Statements
File no later than the final filing date for the declaration of candidacy or nomination documents.
Amendments
Statements may be amended at any time. You are only required to amend the schedule that needs to be revised. It is not necessary to amend the entire filed form. Obtain amendment schedules at www.fppc.ca.gov.
There is no provision for filing deadline extensions unless the filer is under active military duty. (Regulation 18723) Statements of 30 pages or less may be faxed by the deadline as long as the originally signed paper version is sent by first class mail to the filing official within 24 hours.
ATTACHMENT 6
The Political Reform Act (Gov. Code Sections 81000-
91014) requires most state and local government officials and employees to publicly disclose their personal assets and income. They also must disqualify themselves
from participating in decisions that may affect their
personal economic interests. The Fair Political Practices Commission (FPPC) is the state agency responsible for
issuing the attached Statement of Economic Interests,
Form 700, and for interpreting the law’s provisions.
Gift Prohibition
Gifts received by most state and local officials, employees, and candidates are subject to a limit. During 2011 and
2012, the gift limit was $420 from a single source per
calendar year. For calendar years 2013-2014, the limit
increased to $440 from a single source during a calendar year. This gift limit is effective until December 31, 2014.
In addition, state officials, state candidates, and certain state employees are subject to a $10 limit per calendar month on gifts from lobbyists and lobbying firms registered with the Secretary of State. See Reference Pamphlet,
page 10.
State and local officials and employees should check with their agency to determine if other restrictions apply.
Disqualification
Public officials are, under certain circumstances, required to disqualify themselves from making, participating in, or attempting to influence governmental decisions that will affect their economic interests. This may include interests they are not required to disclose (i.e., a personal residence is often not reportable, but may be disqualifying). Specific disqualification requirements apply to 87200 filers (e.g., city councilmembers, members of boards of supervisors,
planning commissioners, etc.). These officials must identify orally the economic interest that creates a conflict of interest and leave the room before a discussion or vote takes
place at a public meeting. For more information, consult Government Code Section 87105, Regulation 18702.5, and
the Overview of the Conflict of Interest Laws at
www.fppc.ca.gov.
Honorarium Ban
Most state and local officials, employees, and candidates are prohibited from accepting an honorarium for any speech given, article published, or attendance at a conference, convention, meeting, or like gathering. See Reference
Pamphlet, page 10.
Loan Restrictions
Certain state and local officials are subject to restrictions on loans. See Reference Pamphlet, page 14.
Post-Governmental Employment
There are restrictions on representing clients or employers before former agencies. The provisions apply to elected state officials, most state employees, local elected officials, county chief administrative officers, city managers,
including the chief administrator of a city, and general managers or chief administrators of local special districts and JPAs. The FPPC website has fact sheets explaining
the provisions.
Late Filing
The filing officer who retains originally-signed statements of economic interests may impose on an individual a fine for any statement that is filed late. The fine is $10 per day up to a maximum of $100. Late filing penalties may be reduced or waived under certain circumstances.
Persons who fail to timely file their Form 700 may be
referred to the FPPC’s Enforcement Division (and, in some cases, to the Attorney General or district attorney) for investigation and possible prosecution. In addition to the late filing penalties, a fine of up to $5,000 per violation may be imposed.
For assistance concerning reporting, prohibitions, and
restrictions under the Act:
• Email questions to [email protected].
• Call the FPPC toll-free at (866) 275-3772.
Form 700 Public Access
Statements of Economic Interests are public
documents. The filing officer must permit any
member of the public to inspect and receive a copy
of any statement.
• Statements must be available as soon as possible
during the agency's regular business hours, but
in any event not later than the second business
day after the statement is received. Access to the
Form 700 is not subject to the Public Records Act
procedures.
• No conditions may be placed on persons seeking
access to the forms.
• No information or identification may be required
from persons seeking access.
• Reproduction fees of no more than 10 cents per
page may be charged.
Introduction
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Introduction
ATTACHMENT 6
Assuming Office Statement:
If you are a newly appointed official or are newly employed in a position designated, or that will be designated, in a state or local agency’s conflict-of-interest code, your assuming office date is the date you were sworn in or
otherwise authorized to serve in the position. If you are a newly elected official, your assuming office date is the date you were sworn in.
• Investments, interests in real property, and business positions held on the date you assumed the office
or position must be reported. In addition, income
(including loans, gifts, and travel payments) received
during the 12 months prior to the date you assumed the
office or position is reportable.
For positions subject to confirmation by the State Senate or the Commission on Judicial Performance, your
assuming office date is the date you were appointed or
nominated to the position.
Example:
Maria Lopez was nominated by the Governor to serve
on a state agency board that is subject to state Senate confirmation. The assuming office date is the date Maria’s nomination is submitted to the Senate. Maria must report investments, interests in real property, and business
positions she holds on that date, and income (including loans, gifts, and travel payments) received during the 12 months prior to that date.
If your office or position has been added to a newly
adopted or newly amended conflict-of-interest code, use the effective date of the code or amendment, whichever is applicable.
• Investments, interests in real property, and business positions held on the effective date of the code or
amendment must be reported. In addition, income
(including loans, gifts, and travel payments) received
during the 12 months prior to the effective date of the code or amendment is reportable.
Annual Statement:
Generally, the period covered is January 1, 2012, through December 31, 2012. If the period covered by the statement is different than January 1, 2012, through December 31, 2012, (for example, you assumed office between October 1, 2011, and December 31, 2011, or you are combining statements), you must specify the period covered.
• Investments, interests in real property, business
positions held, and income (including loans, gifts, and travel payments) received during the period covered
by the statement must be reported. Do not change the
preprinted dates on Schedules A-1, A-2, and B unless
you are required to report the acquisition or disposition of an interest that did not occur in 2012.
• If your disclosure category changes during a
reporting period, disclose under the old category
until the effective date of the conflict-of-interest code amendment and disclose under the new disclosure
category through the end of the reporting period.
Leaving Office Statement:
Generally, the period covered is January 1, 2012, through the date you stopped performing the duties of your position.
If the period covered differs from January 1, 2012, through the date you stopped performing the duties of your position (for example, you assumed office between October 1, 2011, and December 31, 2011, or you are combining statements), the period covered must be specified.
• Investments, interests in real property, business
positions held, and income (including loans, gifts, and travel payments) received during the period covered
by the statement must be reported. Do not change the
preprinted dates on Schedules A-1, A-2, and B unless
you are required to report the acquisition or disposition of an interest that did not occur in 2012.
Candidate Statement:
If you are filing a statement in connection with your
candidacy for state or local office, investments, interests in real property, and business positions held on the date of filing your declaration of candidacy must be reported.
In addition, income (including loans, gifts, and travel payments) received during the 12 months prior to the date of filing your declaration of candidacy is reportable. Do not change the preprinted dates on Schedules A-1, A-2, and B.
Candidates running for local elective offices (e.g., county sheriffs, city clerks, school board trustees, and water district board members) must file candidate statements, as required by the conflict-of-interest code for the elected position. The code may be obtained from the agency of
the elected position.
Amendments:
If you discover errors or omissions on any statement, file an amendment as soon as possible. You are only required to amend the schedule that needs to be revised; it is not necessary to refile the entire form. To obtain amendment schedules, contact the FPPC, your filing official, or go to the FPPC website at www.fppc.ca.gov.
Types of Statements
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Types of Statements
ATTACHMENT 6
Instructions — Cover Page
Enter your name, mailing address, and daytime telephone number in the spaces provided. Because the Form 700 is a public document, you may list your business/office address instead of your home address.
Part 1. Office, Agency, or Court
• Enter the name of the office sought or held, or the agency or court. Consultants must enter the public agency name rather than their private firm’s name. (Examples: State Assembly; Board of Supervisors; Office of the Mayor;
Department of Finance; Hope County Superior Court)
• Indicate the name of your division, board, or district, if applicable. (Examples: Division of Waste Management;
Board of Accountancy; District 45)
• Enter your position title. (Examples: Director; Chief Counsel; City Council Member; Staff Services Analyst)
• If you hold multiple positions (i.e., a city council member who also is a member of a county board or commission),
you may be required to file statements with each agency.
To simplify your filing obligations, you may complete an expanded statement.
To do this, enter the name of the other agency(ies) with which you are required to file and your position title(s) in the space provided. Attach an additional sheet if
necessary. Complete one statement covering the
disclosure requirements for all positions. Each copy must contain an original signature. Therefore, before signing the statement, make a copy for each agency. Sign each
copy with an original signature and file with each agency.
Example:
Scott Baker is a city council member for the City of Lincoln and a board member for the Camp Far West Irrigation
District – a multi-county agency that covers Placer and Yuba counties. Scott will complete one Form 700 using full disclosure (as required for the city position) and covering interests in both Placer and Yuba counties (as required for the multi-county position) and list both positions on the Cover Page. Before signing the statement, Scott will make a copy and sign both statements. One statement will be filed with City of Lincoln and the other will be filed with Camp Far West Irrigation District. Both will contain an original signature.
Remember that if you assume or leave a position after a filing deadline, you must complete a separate statement.
For example, a city council member who assumes a
position with a county special district after the April 2 annual filing deadline must file a separate assuming office statement. In subsequent years, the city council member may expand his or her annual filing to include both
positions.
Part 2. Jurisdiction of Office
• Check the box indicating the jurisdiction of your agency and, if applicable, identify the jurisdiction. Judges, judicial candidates, and court commissioners have statewide
jurisdiction. All other filers should review the Reference Pamphlet, page 13, to determine their jurisdiction.
• If your agency is a multi-county office, list each county in which your agency has jurisdiction.
• If your agency is not a state office, court, county office, city office, or multi-county office (e.g., school districts, special districts and JPAs), check the “other” box and enter the county or city in which the agency has jurisdiction.
Example:
This filer is a member of a water district board with jurisdiction in portions of Yuba and Sutter Counties.
Part 3. Type of Statement
Check at least one box. The period covered by a statement is determined by the type of statement you are filing. If you are completing a 2012 annual statement, do not change the pre-printed dates to reflect 2013. Your annual statement is used for reporting the previous year’s economic interests.
Economic interests for your annual filing covering January 1, 2013, through December 31, 2013, will be disclosed on your statement filed in 2014. See Reference Pamphlet, page 4.
Combining Statements: Certain types of statements may be combined. For example, if you leave office after January 1, but before the deadline for filing your annual statement, you may combine your annual and leaving office statements. File by the earliest deadline. Consult your filing officer or the FPPC.
Part 4. Schedule Summary
• Enter the total number of completed pages including the cover page and either:
Check the box for each schedule you use to disclose
interests;
- or -
if you have nothing to disclose on any schedule, check the “No reportable interests” box. Please do not attach any blank schedules.
Part 5. Verification
Complete the verification by signing the statement and
entering the date signed. All statements must have an original “wet” signature or be duly authorized by your filing officer to file electronically under Government Code Section 87500.2.
Instructions, examples, FAQs, and a reference pamphlet are available to help answer your questions. When you sign your statement, you are stating, under penalty of perjury, that it is true and correct. Only the filer has authority to sign the statement. An unsigned statement is not considered filed and you may be subject to late filing penalties.
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 1
ATTACHMENT 6
Leaving Office: Date Left / /
(Check one)
The period covered is January 1, 2012, through the date of leaving office.
The period covered is / / , through
the date of leaving office.
Annual: The period covered is January 1, 2012, through
December 31, 2012.
The period covered is / / , through
December 31, 2012.
Statement of Economic Interests
Cover Page
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
I have used all reasonable diligence in preparing this statement. I have reviewed this statement and to the best of my knowledge the information contained herein and in any attached schedules is true and complete. I acknowledge this is a public document.
I certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Date Signed
(month, day, year)
3. Type of Statement (Check at least one box)
State Judge or Court Commissioner (Statewide Jurisdiction) Multi-County County of
City of Other
2. Jurisdiction of Office (Check at least one box)
Candidate: Election year and office sought, if different than Part 1:
Assuming Office: Date assumed / /
Date Received
Official Use Only
Please type or print in ink.
700 Fair Political Practices Commission
CALIFORNIA FORM
Agency Name
Division, board, Department, District, if applicable Your Position
1. Office, Agency, or Court
4. Schedule Summary
Name of Filer (Last) (First) (Middle)
Check applicable schedules or “None.”
Schedule A-1 - Investments – schedule attached
Schedule A-2 - Investments – schedule attached
Schedule B - Real Property – schedule attached
► Total number of pages including this cover page:
Mailing Address street city State Zip Code
( )
Daytime telephone number E-mail address (Optional)
(Business or Agency Address Recommended - Public Document) Signature
(File the originally signed statement with your filing official.)
5. Verification
Schedule C - Income, Loans, & Business Positions – schedule attached Schedule D - Income – Gifts – schedule attached
Schedule E - Income – Gifts – Travel Payments – schedule attached -or-
None - No reportable interests on any schedule
A Public Document
► If filing for multiple positions, list below or on an attachment.
Agency: Position:
-orATTACHMENT 6
Common Reportable Interests
Schedule A-1: Stocks, including those held in an IRA or a 401K Schedule A-2: Business entities (including certain independent contracting), sole proprietorships, partnerships, LLCs, corporations, and trusts
Schedule B: Rental property in the jurisdiction
Schedule C: Non-governmental salaries of public official and spouse/registered domestic partner Schedule D: Gifts from non-family members (such as tickets to sporting or entertainment events) Schedule E: Travel payments from third parties (not your employer) Common Non-Reportable Interests
Schedule A-1/A-2: Insurance policies, government bonds, diversified mutual funds, certain funds similar to diversified mutual funds (such as exchange traded funds) and investments held in certain retirement accounts. See Reference Pamphlet, page 12, for detailed information. (Regulation 18237)
Schedule A-1/A-2: Savings and checking accounts and annuities Schedule B: A residence used exclusively as a personal residence (such as a home or vacation cabin)
Schedule C: Governmental salary (such as a school district) Schedule D: Gifts from family members
Schedule E: Travel paid by your government agency
Remember:
Mark the “No reportable interests” box on Part 4 of the Schedule Summary on the Cover Page if you determine you have nothing to disclose and file the Cover Page only. Make sure you carefully read all instructions to ensure proper reporting. The Form 700 is a public document.
Most individuals must consult their agency’s conflict-of-interest code for reportable interests. Most individuals file the Form 700 with their agencies.
Which Schedule Do I Use?
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions - 3
ATTACHMENT 6
General
Q. What is the reporting period for disclosing interests on an assuming office statement or a candidate
statement?
A. On an assuming office statement, disclose all
reportable investments, interests in real property, and business positions held on the date you assumed
office. In addition, you must disclose income (including loans, gifts and travel payments) received during the
12 months prior to the date you assumed office.
On a candidate statement, disclose all reportable
investments, interests in real property, and business
positions held on the date you file your declaration of candidacy. You must also disclose income (including
loans, gifts and travel payments) received during the
12 months prior to the date you file your declaration of candidacy.
Q. I hold two other board positions in addition to my
position with the county. Must I file three statements of economic interests?
A. Yes, three are required. However, you may complete
one statement listing the county and the two boards
on the Cover Page or an attachment as the agencies
for which you will be filing. Report your economic
interests using the largest jurisdiction and highest
disclosure requirements assigned to you by the three
agencies. Make two copies of the entire statement
before signing it, sign each copy with an original
signature, and distribute one original to the county
and to each of the two boards. Remember to
complete separate statements for positions that
you leave or assume during the year.
Q. I am a department head who recently began acting as
city manager. Should I file as the city manager?
A. Yes. File an assuming office statement as city
manager. Persons serving as “acting,” “interim,”
or “alternate” must file as if they hold the position
because they are or may be performing the duties of
the position.
Q. As a designated employee, I left one state agency to work for another state agency. Must I file a leaving
office statement?
A. Yes. You may also need to file an assuming office
statement for the new agency.
Investment Disclosure
Q. I have an investment interest in shares of stock
in a company that does not have an office in my
jurisdiction. Must I still disclose my investment interest in this company?
A. Probably. The definition of “doing business in the
jurisdiction” is not limited to whether the business has an office or physical location in your jurisdiction. See Reference Pamphlet, page 13.
Q. My spouse and I have a living trust. The trust
holds rental property in my jurisdiction, our primary
residence, and investments in diversified mutual funds.
I have full disclosure. How is this trust disclosed?
A. Disclose the name of the trust, the rental property and its income on Schedule A-2. Your primary residence
and investments in diversified mutual funds registered
with the SEC are not reportable.
Q. I am required to report all investments. I have an IRA that contains stocks through an account managed by
a brokerage firm. Must I disclose these stocks even
though they are held in an IRA and I did not decide
which stocks to purchase?
A. Yes. Disclose on Schedule A-1 or A-2 any stock worth $2,000 or more in a business entity located in or doing business in your jurisdiction.
Q. I own stock in IBM and must report this investment
on Schedule A-1. I initially purchased this stock in
the early 1990s; however, I am constantly buying
and selling shares. Must I note these dates in the
“Acquired” and “Disposed” fields?
A. No. You must only report dates in the “Acquired” or
“Disposed” fields when, during the reporting period,
you initially purchase a reportable investment worth
$2,000 or more or when you dispose of the entire
investment. You are not required to track the partial
trading of an investment.
Q. On last year’s filing I reported stock in Encoe valued at $2,000 - $10,000. Late last year the value of this
stock fell below and remains at less than $2,000. How
should this be reported on this year’s statement?
A. You are not required to report an investment if the
value was less than $2,000 during the entire reporting
Questions and Answers
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 4
ATTACHMENT 6
period. However, because a disposed date is not
required for stocks that fall below $2,000, you may
want to report the stock and note in the “comments”
section that the value fell below $2,000. This would be for informational purposes only; it is not a requirement.
Income Disclosure
Q. I reported a business entity on Schedule A-2. Clients of my business are located in several states. Must
I report all clients from whom my pro rata share of
income is $10,000 or more on Schedule A-2, Part 3?
A. No, only the clients doing business on a regular basis in your jurisdiction must be disclosed.
Q. I believe I am not required to disclose the names of clients from whom my pro rata share of income is
$10,000 or more on Schedule A-2 because of their
right to privacy. Is there an exception for reporting
clients’ names?
A. Regulation 18740 provides a procedure for requesting an exemption to allow a client’s name not to be
disclosed if disclosure of the name would violate a
legally recognized privilege under California law. This regulation may be obtained from our website at
www.fppc.ca.gov. See Reference Pamphlet, page 14.
Q. I am sole owner of a private law practice that is not reportable based on my limited disclosure category.
However, some of the sources of income to my law
practice are from reportable sources. Do I have to
disclose this income?
A. Yes, even though the law practice is not reportable, reportable sources of income to the law practice of
$10,000 or more must be disclosed. This information
would be disclosed on Schedule C with a note in the
“comments” section indicating that the business entity
is not a reportable investment. The note would be for
informational purposes only; it is not a requirement.
Q. I am the sole owner of my business. Where do I
disclose my income - on Schedule A-2 or Schedule C?
A. Sources of income to a business in which you have an ownership interest of 10% or greater are disclosed on
Schedule A-2. See Reference Pamphlet, page 8, for
the definition of “business entity.”
Q. How do I disclose my spouse’s or registered domestic partner’s salary?
A. Report the name of the employer as a source of
income on Schedule C.
Q. I am a doctor. For purposes of reporting $10,000
sources of income on Schedule A-2, Part 3, are the
patients or their insurance carriers considered sources of income?
A. If your patients exercise sufficient control by selecting you instead of other doctors, then your patients, rather than their insurance carriers, are sources of income to you. See Reference Pamphlet, page 14, for additional
information.
Q. I received a loan from my grandfather to purchase my home. Is this loan reportable?
A. No. Loans received from family members are not
reportable.
Q. I am running for re-election to city council and made a personal loan to my campaign committee. Is this
reportable on my Form 700?
A. No, the loan is not reportable on Form 700; however, repayments are. Loan repayments from a campaign
committee are reported on Schedule C as income.
Real Property Disclosure
Q. During this reporting period we switched our principal place of residence into a rental. I have full disclosure and the property is located in my agency’s jurisdiction, so it is now reportable. Because I have not reported
this property before, do I need to show an “acquired”
date?
A. No, you are not required to show an “acquired” date
because you previously owned the property. However,
you may want to note in the “comments” section that
the property was not previously reported because
it was used exclusively as your residence. This
would be for informational purposes only; it is not a
requirement.
Q. My daughter is buying her first home and I am the cosigner on the loan. I won’t occupy the home, but my daughter will. The home is located in my agency’s
jurisdiction. Must I report this property?
Questions and Answers
Continued
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 5
ATTACHMENT 6
A. No. Property occupied by a family member is not
reportable as long as you are not receiving rental
income or using the property for business purposes.
Gift Disclosure
Q. If I received a gift of two tickets to a concert valued at $100 each, but gave the tickets to a friend because I
could not attend the concert, do I have any reporting
obligations?
A. Yes. Since you accepted the gift and exercised
discretion and control of the use of the tickets, you
must disclose the gift on Schedule D.
Q. Mary and Joe Benson, a married couple, want to give
a piece of artwork to a close friend who is a county
supervisor. Is each spouse considered a separate
source for purposes of the gift limit and disclosure?
A. Yes, each spouse may make a gift valued at the gift
limit during a calendar year. For example, during 2012
when the gift limit was $420, the Bensons may have
given the supervisor artwork valued at no more than
$840. The supervisor must identify Joe and Mary
Benson as the sources of the gift.
Q. I am a Form 700 filer with full disclosure. Our agency holds a holiday raffle to raise funds for a local charity. I bought $10 worth of raffle tickets and won a gift basket valued at $120. The gift basket was donated by
Doug Brewer, a citizen in our city. At the same event,
I bought raffle tickets for, and won a quilt valued at
$70. The quilt was donated by a coworker. Are these
reportable gifts?
A. Because the gift basket was donated by an outside
source (not an agency employee), you have received a
reportable gift valued at $110 (the value of the basket less the consideration paid). The source of the gift
is Doug Brewer and the agency is disclosed as the
intermediary. Because the quilt was donated by an
employee of your agency, it is not a reportable gift.
Q. My agency is responsible for disbursing grants. An
applicant (501(c)(3) organization) met with agency
employees to present its application. At this meeting,
the applicant provided food and beverages. Would
the food and beverages be considered gifts to the
employees? These employees are designated in our
agency’s conflict-of-interest code and the applicant is a reportable source of income under the code.
A. Yes. If the value of the food and beverages consumed by any one filer, plus any other gifts received from the same source during the reporting period total $50 or
more, the food and beverages would be reported using
the fair market value and would be subject to the gift
limit.
Questions and Answers
Continued
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 6
ATTACHMENT 6
“Investment” means a financial interest in any business entity that is located in, doing business in, planning to do business in, or that has done business during the previous two years in your agency’s jurisdiction in which you, your spouse or registered domestic partner, or your dependent children had a direct, indirect, or beneficial interest totaling $2,000 or more at any time during the reporting period. See Reference Pamphlet, page 13.
Reportable investments include:
• Stocks, bonds, warrants, and options, including those held in margin or brokerage accounts and managed
investment funds (See Reference Pamphlet, page 13.)
• Sole proprietorships
• Your own business or your spouse’s or registered
domestic partner’s business (See Reference Pamphlet,
page 8, for the definition of “business entity.”)
• Your spouse’s or registered domestic partner’s
investments that are legally separate property
• Partnerships (e.g., a law firm or family farm)
• Investments in reportable business entities held in a retirement account (See Reference Pamphlet, page 15.)
• If you, your spouse or registered domestic partner,
and dependent children together had a 10% or
greater ownership interest in a business entity or trust (including a living trust), you must disclose investments held by the business entity or trust. See Reference
Pamphlet, page 15, for more information on disclosing
trusts.
• Business trusts
You are not required to disclose:
• Insurance policies, government bonds, diversified
mutual funds, certain funds similar to diversified
mutual funds (such as exchange traded funds) and
investments held in certain retirement accounts. See
Reference Pamphlet, page 12, for detailed information.
(Regulation 18237)
• Bank accounts, savings accounts, money market
accounts and certificates of deposits
• Insurance policies
• Annuities
• Commodities
• Shares in a credit union
• Government bonds (including municipal bonds)
• Retirement accounts invested in non-reportable interests (e.g., insurance policies, diversified mutual funds, or government bonds) (See Reference Pamphlet, page 15.)
● Government defined-benefit pension plans (such as
CalPERS and CalSTRS plans)
• Interests held in a blind trust (See Reference Pamphlet, page 16.)
Use Schedule A-1 to report ownership of less than 10%
(e.g., stock). Schedule C (Income) may also be required if the investment is not a stock or corporate bond. See second example below.
Use Schedule A-2 to report ownership of 10% or greater
(e.g., a sole proprietorship).
To Complete Schedule A-1:
Do not attach brokerage or financial statements.
• Disclose the name of the business entity.
• Provide a general description of the business activity of the entity (e.g., pharmaceuticals, computers,
automobile manufacturing, or communications).
• Check the box indicating the highest fair market value of your investment during the reporting period. If you
are filing a candidate or an assuming office statement, indicate the fair market value on the filing date or the date you took office, respectively.
• Identify the nature of your investment (e.g., stocks, warrants, options, or bonds).
• An acquired or disposed of date is only required if you initially acquired or entirely disposed of the investment interest during the reporting period. The date of a stock dividend reinvestment or partial disposal is not required.
Generally, these dates will not apply if you are filing a candidate or an assuming office statement.
Examples:
John Smith holds a state agency position. His conflict-ofinterest code requires full disclosure of investments. John must disclose his stock holdings of $2,000 or more in any company that does business in California, as well as those stocks held by his spouse or registered domestic partner and dependent children.
Susan Jones is a city council member. She has a 4%
interest, worth $5,000, in a limited partnership located in the city. Susan must disclose the partnership on Schedule A-1 and income of $500 or more received from the
partnership on Schedule C.
Instructions – Schedules A-1 and A-2
Investments
Reminders
• Do you know your agency’s jurisdiction?
• Did you hold investments at any time during the period covered by this statement?
• Code filers – your disclosure categories may only
require disclosure of specific investments.
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 7
ATTACHMENT 6
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
12 12 12 12
12 12
12 12 12
12 12
Name
► Name of business entity
General description of business activity
► Name of business entity
General description of business activity
► Name of business entity
General description of business activity
► Name of business entity
General description of business activity
► Name of business entity
General description of business activity
► Name of business entity
General description of business activity
Comments:
Schedule A-1
Investments
Stocks, Bonds, and Other Interests
(Ownership Interest is Less Than 10%)
Do not attach brokerage or financial statements.
700 Fair Political Practices Commission
CALIFORNIA FORM
FPPC Form 700 (2012/2013) Sch. A-1
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
fair market value
$2,000 - $10,000 $10,001 - $100,000
$100,001 - $1,000,000 Over $1,000,000
fair market value
$2,000 - $10,000 $10,001 - $100,000
$100,001 - $1,000,000 Over $1,000,000
fair market value
$2,000 - $10,000 $10,001 - $100,000
$100,001 - $1,000,000 Over $1,000,000
fair market value
$2,000 - $10,000 $10,001 - $100,000
$100,001 - $1,000,000 Over $1,000,000
fair market value
$2,000 - $10,000 $10,001 - $100,000
$100,001 - $1,000,000 Over $1,000,000
fair market value
$2,000 - $10,000 $10,001 - $100,000
$100,001 - $1,000,000 Over $1,000,000
12 Nature of investment
Stock Other
(Describe)
Partnership Income Received of $0 - $499
Income Received of $500 or More (Report on Schedule C)
Nature of investment
Stock Other
(Describe)
Partnership Income Received of $0 - $499
Income Received of $500 or More (Report on Schedule C)
Nature of investment
Stock Other
(Describe)
Partnership Income Received of $0 - $499
Income Received of $500 or More (Report on Schedule C)
Nature of investment
Stock Other
(Describe)
Partnership Income Received of $0 - $499
Income Received of $500 or More (Report on Schedule C)
Nature of investment
Stock Other
(Describe)
Partnership Income Received of $0 - $499
Income Received of $500 or More (Report on Schedule C)
Nature of investment
Stock Other
(Describe)
Partnership Income Received of $0 - $499
Income Received of $500 or More (Report on Schedule C)
ATTACHMENT 6
Use Schedule A-2 to report investments in a business entity or trust (including a living trust) in which you, your spouse or registered domestic partner, and your dependent children together had a 10% or greater interest, totaling $2,000 or more, during the reporting period and which is located in, doing business in, planning to do business in, or which has done business during the previous two years in your agency’s jurisdiction. See Reference Pamphlet, page 13. A trust located outside your agency’s jurisdiction is reportable if it holds assets that are located in or doing business in the jurisdiction. Do not report a trust that contains non-reportable interests. For example, a trust containing only your personal residence not used in whole or in part as a business, your savings account, and some municipal bonds, is not reportable.
Also report on Schedule A-2 investments and real property held by that entity or trust if your pro rata share of the investment or real property interest was $2,000 or more during the reporting period.
To Complete Schedule A-2:
Part 1. Disclose the name and address of the business entity or trust. If you are reporting an interest in a business entity, check “Business Entity” and complete the box as follows:
• Provide a general description of the business activity of the entity.
• Check the box indicating the highest fair market value of your investment during the reporting period.
• If you initially acquired or entirely disposed of this interest during the reporting period, enter the date acquired or disposed.
• Identify the nature of your investment.
• Disclose the job title or business position you held with the entity, if any (i.e., if you were a director, officer, partner, trustee, employee, or held any position of management).
A business position held by your spouse is not reportable.
Part 2. Check the box indicating your pro rata share of the gross income received by the business entity or trust. This amount includes your pro rata share of the gross income from the business entity or trust, as well as your community property interest in your spouse’s or registered domestic partner’s share.
Gross income is the total amount of income before deducting expenses, losses, or taxes.
Part 3. Disclose the name of each source of income that is located in, doing business in, planning to do business in, or that has done business during the previous two years in your agency’s jurisdiction, as follows:
• Disclose each source of income and outstanding loan
to the business entity or trust identified in Part 1 if your pro rata share of the gross income (including your community property interest in your spouse’s or registered domestic partner’s share) to the business entity or trust from that source was $10,000 or more during the reporting period. See Reference Pamphlet, page 11, for examples.
Income from governmental sources may be reportable
if not considered salary. See Regulation 18232. Loans
from commercial lending institutions made in the lender’s regular course of business on terms available to members of the public without regard to your official status are not reportable.
• Disclose each individual or entity that was a source of commission income of $10,000 or more during the
reporting period through the business entity identified in Part 1. See Reference Pamphlet, page 8, for an
explanation of commission income.
You may be required to disclose sources of income located outside your jurisdiction. For example, you may have
a client who resides outside your jurisdiction who does business on a regular basis with you. Such a client, if a reportable source of $10,000 or more, must be disclosed.
Mark “None” if you do not have any reportable $10,000
sources of income to disclose. Adding phrases such
as “various clients” or “not disclosing sources pursuant to attorney-client privilege” may trigger a request for an amendment to your statement. See Reference Pamphlet,
page 14, for details about requesting an exemption from disclosing privileged information.
Part 4. Report any investments or interests in real property held or leased by the entity or trust identified in Part 1 if your pro rata share of the interest held was $2,000 or more during the reporting period. Attach additional schedules or use FPPC’s Form 700 Excel spreadsheet if needed.
• Check the applicable box identifying the interest held as real property or an investment.
• If investment, provide the name and description of the business entity.
• If real property, report the precise location (e.g., an assessor’s parcel number or address).
• Check the box indicating the highest fair market value of your interest in the real property or investment during the reporting period. (Report the fair market value of the portion of your residence claimed as a tax deduction if you are utilizing your residence for business purposes.)
• Identify the nature of your interest.
• Enter the date acquired or disposed only if you initially acquired or entirely disposed of your interest in the
property or investment during the reporting period.
Instructions – Schedule A-2
Investments, Income, and Assets of Business Entities/Trusts FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 9
ATTACHMENT 6
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
12 12
12 12 12 12
Schedule A-2
Investments, Income, and Assets
of Business Entities/Trusts
(Ownership Interest is 10% or Greater)
Comments:
Name
Address (Business Address Acceptable)
Name
Address (Business Address Acceptable)
fair market value
$0 - $1,999
$2,000 - $10,000
$10,001 - $100,000
$100,001 - $1,000,000
Over $1,000,000
fair market value
$0 - $1,999
$2,000 - $10,000
$10,001 - $100,000
$100,001 - $1,000,000
Over $1,000,000
General description of business activity General description of business activity Investment Real Property
Name of Business Entity, if Investment, or
Assessor’s Parcel Number or Street Address of Real Property Description of Business Activity or
City or Other Precise Location of Real Property
Investment Real Property
Name of Business Entity, if Investment, or
Assessor’s Parcel Number or Street Address of Real Property Description of Business Activity or
City or Other Precise Location of Real Property
► 4. investments and interests in real property held or leased by the business entity or trust
► 4. investments and interests in real property held or leased by the business entity or trust
Check one
Trust, go to 2 Business Entity, complete the box, then go to 2 Check one
Trust, go to 2 Business Entity, complete the box, then go to 2 ► 3. List the name of each reportable single source of
income of $10,000 or more (Attach a separate sheet if necessary.) ► 3. List the name of each reportable single source of
income of $10,000 or more (Attach a separate sheet if necessary.) ► 2. identify the gross income received (include your pro rata share of the gross income to the entity/trust)
► 2. identify the gross income received (include your pro rata share of the gross income to the entity/trust)
Name
700
Check one box: Check one box:
Your Business position Your Business position
FPPC Form 700 (2012/2013) Sch. A-2
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
fair market value
$2,000 - $10,000
$10,001 - $100,000
$100,001 - $1,000,000
Over $1,000,000
fair market value
$2,000 - $10,000
$10,001 - $100,000
$100,001 - $1,000,000
Over $1,000,000
$0 - $499
$500 - $1,000
$1,001 - $10,000
$0 - $499
$500 - $1,000
$1,001 - $10,000
$10,001 - $100,000
Over $100,000
$10,001 - $100,000
Over $100,000
Fair Political Practices Commission
CALIFORNIA FORM
► 1. business entity or trust ► 1. business entity or trust Nature of interest
Property Ownership/Deed of Trust Stock Partnership
Leasehold Other
Check box if additional schedules reporting investments or real property are attached
Yrs. remaining
Nature of interest
Property Ownership/Deed of Trust Stock Partnership
Leasehold Other
Check box if additional schedules reporting investments or real property are attached
Yrs. remaining
12 12
Other
Nature of investment
Partnership Sole Proprietorship Other
Nature of investment
Partnership Sole Proprietorship
None None
ATTACHMENT 6
Report interests in real property located in your agency’s jurisdiction in which you, your spouse or registered
domestic partner, or your dependent children had a direct, indirect, or beneficial interest totaling $2,000 or more any time during the reporting period. See Reference Pamphlet, page 13.
Interests in real property include:
• An ownership interest (including a beneficial ownership interest)
• A deed of trust, easement, or option to acquire property • A leasehold interest (See Reference Pamphlet, page 14.) • A mining lease
• An interest in real property held in a retirement account (See Reference Pamphlet, page 15.)
• An interest in real property held by a business entity or trust in which you, your spouse or registered domestic
partner, and your dependent children together had a
10% or greater ownership interest (Report on Schedule
A-2.)
• Your spouse’s or registered domestic partner’s interests in real property that are legally held separately by him or her
You are not required to report:
• A residence, such as a home or vacation cabin, used
exclusively as a personal residence (However, a
residence in which you rent out a room or for which
you claim a business deduction may be reportable. If
reportable, report the fair market value of the portion claimed as a tax deduction.)
Please note: A non-reportable residence can still
be grounds for a conflict of interest and may be
disqualifying.
• Interests in real property held through a blind trust (See Reference Pamphlet, page 16, for exceptions.)
To Complete Schedule B:
• Report the precise location (e.g., an assessor’s parcel number or address) of the real property.
• Check the box indicating the fair market value of your interest in the property (regardless of what you owe on the property).
• Enter the date acquired or disposed only if you initially acquired or entirely disposed of your interest in the
property during the reporting period.
• Identify the nature of your interest. If it is a leasehold, disclose the number of years remaining on the lease.
• If you received rental income, check the box indicating the gross amount you received.
• If you had a 10% or greater interest in real property and received rental income, list the name of the source(s) if your pro rata share of the gross income from any single tenant was $10,000 or more during the reporting period.
If you received a total of $10,000 or more from two or
more tenants acting in concert (in most cases, this will apply to married couples), disclose the name of each
tenant. Otherwise, mark “None.”
• Loans from a private lender that total $500 or more
and are secured by real property may be reportable.
Loans from commercial lending institutions made
in the lender’s regular course of business on terms
available to members of the public without regard to
your official status are not reportable.
When reporting a loan:
-- Provide the name and address of the lender.
-- Describe the lender’s business activity.
-- Disclose the interest rate and term of the loan. For variable interest rate loans, disclose the conditions
of the loan (e.g., Prime + 2) or the average interest
rate paid during the reporting period. The term of
a loan is the total number of months or years given
for repayment of the loan at the time the loan was
established.
-- Check the box indicating the highest balance of the
loan during the reporting period.
-- Identify a guarantor, if applicable.
If you have more than one
reportable loan on a single
piece of real property, report
the additional loan(s) on
Schedule C.
Example:
Joe Nelson is a city planning
commissioner. Joe received
rental income of $12,000
during the reporting period from
a single tenant who rented
property Joe owned in the city’s
jurisdiction. If Joe had received
the $12,000 from two or more
tenants, the tenants’ names
would not be required as
long as no single tenant paid
$10,000 or more. A married
couple would be considered a
single tenant.
Instructions – Schedule B
Interests in Real Property
Reminders
• Income and loans already reported on Schedule B are
not also required to be reported on Schedule C.
• Real property already reported on Schedule A-2, Part 4 are not also required to be reported on Schedule B.
• Code filers – do your disclosure categories require
disclosure of real property?
12 12
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 11
ATTACHMENT 6
name of lender*
address (Business Address Acceptable)
business activity, if any, of lender
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
12 12 12 12
Schedule B
Interests in Real Property
(Including Rental Income)
Name
► ASSESSOR’S PARCEL NUMBER OR street address ► ASSESSOR’S PARCEL NUMBER OR street address city city
interest rate Term (Months/Years)
% None
sources of rental income: If you own a 10% or greater
interest, list the name of each tenant that is a single source of income of $10,000 or more.
sources of rental income: If you own a 10% or greater
interest, list the name of each tenant that is a single source of income of $10,000 or more.
Nature of interest
Ownership/Deed of Trust Easement
Leasehold
Yrs. remaining Other
Nature of interest
Ownership/Deed of Trust Easement
Leasehold
Yrs. remaining Other
Comments:
fair market value
$2,000 - $10,000
$10,001 - $100,000
$100,001 - $1,000,000
Over $1,000,000
fair market value
$2,000 - $10,000
$10,001 - $100,000
$100,001 - $1,000,000
Over $1,000,000
if rental property, gross income received
Over $100,000
$0 - $499 $500 - $1,000 $1,001 - $10,000
$10,001 - $100,000
if rental property, gross income received
Over $100,000
$0 - $499 $500 - $1,000 $1,001 - $10,000
$10,001 - $100,000
highest balance during reporting period
Guarantor, if applicable
Over $100,000
$500 - $1,000 $1,001 - $10,000
$10,001 - $100,000
FPPC Form 700 (2012/2013) Sch. B
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
700 Fair Political Practices Commission
CALIFORNIA FORM
name of lender*
address (Business Address Acceptable)
business activity, if any, of lender
interest rate Term (Months/Years)
% None
Guarantor, if applicable
highest balance during reporting period
Over $100,000
$500 - $1,000 $1,001 - $10,000
$10,001 - $100,000
* You are not required to report loans from commercial lending institutions made in the lender’s regular course of business on terms available to members of the public without regard to your official status. Personal loans and loans received not in a lender’s regular course of business must be disclosed as follows:
None None
ATTACHMENT 6
Report the source and amount of gross income of $500
or more you received during the reporting period. Gross income is the total amount of income before deducting
expenses, losses, or taxes and includes loans other than loans from a commercial lending institution. See Reference Pamphlet, page 11. Also report your job title with each reportable business entity, even if you received no income during the reporting period. You must also report the source of income to your spouse or registered domestic partner if your community property share was $500 or more during the reporting period.
A source of income must be reported only if the source is located in, doing business in, planning to do business in, or has done business during the previous two years in your agency’s jurisdiction. See Reference Pamphlet, page 13, for more information about doing business in the jurisdiction.
Reportable sources of income may be further limited by
your disclosure category located in your agency’s conflict-ofinterest code.
Commonly reportable income and loans include:
• Salary/wages, per diem, and reimbursement for expenses including travel payments provided by your employer
• Community property interest (50%) in your spouse’s
or registered domestic partner’s income - report the
employer’s name and all other required information
• Income from investment interests, such as partnerships, reported on Schedule A-1
• Commission income not required to be reported on
Schedule A-2 (See Reference Pamphlet, page 8.)
• Gross income from any sale, including the sale of a house or car (Report your pro rata share of the total sale price.) • Rental income not required to be reported on Schedule B • Prizes or awards not disclosed as gifts
• Payments received on loans you made to others, including loan repayments from a campaign committee (including a
candidate’s own campaign committee)
• An honorarium received prior to becoming a public official (See Reference Pamphlet, page 10, concerning your ability to receive future honoraria.)
• Incentive compensation (See Reference Pamphlet, page 12.) You are not required to report:
• Salary, reimbursement for expenses or per diem, or social security, disability, or other similar benefit payments received by you or your spouse or registered domestic
partner from a federal, state, or local government agency.
See Reference Pamphlet, page 11, for more exceptions to income reporting.
To Complete Schedule C:
Part 1. Income Received/Business Position Disclosure
• Disclose the name and address of each source of income or each business entity with which you held a business
position.
• Provide a general description of the business activity if the source is a business entity.
• Check the box indicating the amount of gross income
received.
• Identify the consideration for which the income was
received.
• For income from commission sales, check the box
indicating the gross income received and list the name of each source of commission income of $10,000 or more.
See Reference Pamphlet, page 8. Note: If you receive
commission income on a regular basis or have an
ownership interest of 10% or more, you must disclose
the business entity and the income on Schedule A-2.
• Disclose the job title or business position, if any, that you held with the business entity, even if you did not receive income during the reporting period.
Part 2. Loans Received or Outstanding During the
Reporting Period
• Provide the name and address of the lender.
• Provide a general description of the business activity if the lender is a business entity.
• Check the box indicating the highest balance of the loan during the reporting period.
• Disclose the interest rate and the term of the loan. -- For variable interest rate loans, disclose the conditions of the loan (e.g., Prime + 2) or the average interest rate paid during the reporting period.
-- The term of the loan is the total number of months or years given for repayment of the loan at the time the
loan was entered into.
• Identify the security, if any, for the loan.
Instructions – Schedule C
Income, Loans, & Business Positions
(Income Other Than Gifts and Travel Payments)
Reminders
• Code filers – your disclosure categories may not
require disclosure of all sources of income.
• If you or your spouse or registered domestic partner are self-employed, report the business entity on
Schedule A-2.
• Do not disclose on Schedule C income, loans, or
business positions already reported on Schedules A-2
or B. FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 13
ATTACHMENT 6
(Real property, car, boat, etc.)
Schedule C
Income, Loans, & Business
Positions
(Other than Gifts and Travel Payments)
gross income received
Name
FPPC Form 700 (2012/2013) Sch. C
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Over $100,000
$500 - $1,000 $1,001 - $10,000
$10,001 - $100,000
700 Fair Political Practices Commission
CALIFORNIA FORM
► 1. Income Received
Name of source of income
address (Business Address Acceptable)
business activity, if any, of source
Your Business position
► 1. Income Received
Name of source of income
address (Business Address Acceptable)
business activity, if any, of source
Your Business position
Name of Lender*
address (Business Address Acceptable)
business activity, if any, of Lender
interest rate Term (Months/Years)
% None
Highest Balance During Reporting Period
$500 - $1,000
$1,001 - $10,000
$10,001 - $100,000
Over $100,000
gross income received
Over $100,000
$500 - $1,000 $1,001 - $10,000
$10,001 - $100,000
Comments:
► 2. loans Received or outstanding during the reporting period * You are not required to report loans from commercial lending institutions, or any indebtedness created as part of a retail installment or credit card transaction, made in the lender’s regular course of business on terms available to members of the public without regard to your official status. Personal loans and loans received not in a lender’s regular course of business must be disclosed as follows:
Security for Loan
None Personal residence
Real Property
Guarantor
Other
Street address
City
(Describe)
consideration for which income was received
Salary Spouse’s or registered domestic partner’s income Loan repayment Partnership
Sale of
Commission or Rental Income, list each source of $10,000 or more Other
(Real property, car, boat, etc.)
(Describe)
consideration for which income was received
Salary Spouse’s or registered domestic partner’s income Loan repayment Partnership
Sale of
Commission or Rental Income, list each source of $10,000 or more Other
(Describe)
ATTACHMENT 6
A gift is anything of value for which you have not provided equal or greater consideration to the donor. A gift is
reportable if its fair market value is $50 or more. In
addition, multiple gifts totaling $50 or more received during the reporting period from a single source must be reported.
It is the acceptance of a gift, not the ultimate use to which it is put, that imposes your reporting obligation. Except as noted below, you must report a gift even if you never used it or if you gave it away to another person.
If the exact amount of a gift is unknown, you must make a good faith estimate of the item’s fair market value. Listing the value of a gift as “over $50” or “value unknown” is not adequate disclosure. In addition, if you received a gift through an intermediary, you must disclose the name,
address, and business activity of both the donor and the intermediary.
Commonly reportable gifts include:
• Tickets/passes to sporting or entertainment events
• Tickets/passes to amusement parks
• Parking passes
• Food, beverages, and accommodations, including those provided in direct connection with your attendance at a convention, conference, meeting, social event, meal, or like gathering
• Rebates/discounts not made in the regular course of
business to members of the public without regard to
official status
• Wedding gifts (See Reference Pamphlet, page 16)
• An honorarium received prior to assuming office (You may report an honorarium as income on Schedule C,
rather than as a gift on Schedule D, if you provided
services of equal or greater value than the payment
received. See Reference Pamphlet, page 10, regarding
your ability to receive future honoraria.)
• Transportation and lodging (See Schedule E.)
• Forgiveness of a loan received by you
You are not required to disclose:
• Gifts that were not used and that, within 30 days after receipt, were returned to the donor or delivered to a
charitable organization without being claimed by you as a charitable contribution for tax purposes
• Gifts from your spouse or registered domestic partner, child, parent, grandparent, grandchild, brother, sister, and certain other famly members (See Regulation 18942
for a complete list.). The exception does not apply if
the donor was acting as an agent or intermediary for a
reportable source who was the true donor.
• Gifts of similar value exchanged between you and an
individual, other than a lobbyist, on holidays, birthdays, or similar occasions
• Gifts of informational material provided to assist
you in the performance of your official duties (e.g.,
books, pamphlets, reports, calendars, periodicals, or
educational seminars)
• A monetary bequest or inheritance (However, inherited investments or real property may be reportable on other schedules.)
• Personalized plaques or trophies with an individual value of less than $250
• Campaign contributions
• Gifts given to members of your immediate family if the source has an established relationship with the family
member and there is no evidence to suggest the donor
had a purpose to influence you. (See Regulation
18943.)
• The cost of food, beverages, and necessary
accommodations provided directly in connection with
an event at which you gave a speech, participated in
a panel or seminar, or provided a similar service but
only if the cost is paid for by a federal, state, or local government agency. This exception does not apply to
a state or local elected officer, as defined in Section 82020, or an official specified in Section 87200.
• Any other payment not identified above, that would
otherwise meet the definition of gift, where the payment is made by an individual who is not a lobbyist registered to lobby the official’s agency, where it is clear that the gift was made because of an existing personal or business
relationship unrelated to the official’s position and there is no evidence whatsoever at the time the gift is made to suggest the donor had a purpose to influence you.
To Complete Schedule D:
• Disclose the full name (not an acronym), address, and, if a business entity, the business activity of the source. • Provide the date (month, day, and year) of receipt, and disclose the fair market value and description of the gift.
Instructions – Schedule D
Income – Gifts
Reminders
• Gifts from a single source are subject to a $420 limit during 2012. See Reference Pamphlet, page 10.
• Code filers – you only need to report gifts from
reportable sources.
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 15
ATTACHMENT 6
Schedule D
Income – Gifts
Comments:
Name
FPPC Form 700 (2012/2013) Sch. D
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
700 Fair Political Practices Commission
CALIFORNIA FORM
► Name of source (Not an Acronym)
address (Business Address Acceptable)
business activity, if any, of source
date (mm/dd/yy) Va lue description of gift(s)
/ / $
/ / $
/ / $
► Name of source (Not an Acronym)
address (Business Address Acceptable)
business activity, if any, of source
date (mm/dd/yy) Va lue description of gift(s)
/ / $
/ / $
/ / $
► Name of source (Not an Acronym)
address (Business Address Acceptable)
business activity, if any, of source
date (mm/dd/yy) Va lue description of gift(s)
/ / $
/ / $
/ / $
► Name of source (Not an Acronym)
address (Business Address Acceptable)
business activity, if any, of source
date (mm/dd/yy) Va lue description of gift(s)
/ / $
/ / $
/ / $
► Name of source (Not an Acronym)
address (Business Address Acceptable)
business activity, if any, of source
date (mm/dd/yy) Va lue description of gift(s)
/ / $
/ / $
/ / $
► Name of source (Not an Acronym)
address (Business Address Acceptable)
business activity, if any, of source
date (mm/dd/yy) Va lue description of gift(s)
/ / $
/ / $
/ / $
ATTACHMENT 6
Travel payments reportable on Schedule E include
advances and reimbursements for travel and related
expenses, including lodging and meals.
Gifts of travel may be subject to the gift limit. In addition, certain travel payments are reportable gifts, but are not subject to the gift limit. To avoid possible misinterpretation or the perception that you have received a gift in excess of the gift limit, you may wish to provide a specific description of the purpose of your travel. See the FPPC fact sheet
entitled “Limitations and Restrictions on Gifts, Honoraria, Travel, and Loans” at www.fppc.ca.gov.
You are not required to disclose:
• Travel payments received from any state, local, or
federal government agency for which you provided
services equal or greater in value than the payments
received
• Travel payments received from your employer in the
normal course of your employment that are included in
the income reported on Schedule C
• Payments for admission to an event at which you make a speech, participate on a panel, or make a substantive formal presentation, transportation, and necessary
lodging, food, or beverages, and nominal non-cash
benefits provided to you in connection with the event so long as both the following apply:
-- The speech is for official agency business and you
are representing your government agency in the
course and scope of your official duties.
-- The payment is a lawful expenditure made only by
a federal, state, or local government agency for
purposes related to conducting that agency’s official
business.
Note: This exception does not apply to a state or
local elected officer, as defined in Section 82020, or
an official specified in Section 87200.
• A travel payment that was received from a non-profit entity exempt from taxation under Internal Revenue
Code Section 501(c)(3) for which you provided equal or
greater consideration
To Complete Schedule E:
• Disclose the full name (not an acronym) and address of the source of the travel payment.
• Identify the business activity if the source is a business entity.
• Check the box to identify the payment as a gift or
income, report the amount, and disclose the date(s).
-- Travel payments are gifts if you did not provide
services that were equal to or greater in value than
the payments received. You must disclose gifts
totaling $50 or more from a single source during the
period covered by the statement.
When reporting travel payments that are gifts, you
must provide a description of the gift and the date(s)
received.
-- Travel payments are income if you provided
services that were equal to or greater in value than
the payments received. You must disclose income
totaling $500 or more from a single source during
the period covered by the statement. You have the
burden of proving the payments are income rather
than gifts.
When reporting travel payments as income, you
must describe the services you provided in exchange
for the payment. You are not required to disclose the
date(s) for travel payments that are income.
Example:
City council member Rick Chandler is the chairman of
a trade association and the association pays for Rick’s travel to attend its meetings. Because Rick is deemed to be providing equal or greater consideration for the travel payment by virtue of serving on the board, this payment may be reported as
income. Payments
for Rick to attend
other events for which
Rick is not providing
services are likely
considered gifts.
Instructions – Schedule E
Travel Payments, Advances,
and Reimbursements
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions - 17
ATTACHMENT 6
Type of Payment: (must check one) Gift Income
Schedule E
Income – Gifts
Travel Payments, Advances,
and Reimbursements
Name
Comments:
FPPC Form 700 (2012/2013) Sch. E
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Type of Payment: (must check one) Gift Income
700 Fair Political Practices Commission
CALIFORNIA FORM
• You must mark either the gift or income box.
• Mark the “501(c)(3)” box for a travel payment received from a nonprofit 501(c)(3) organization or the “Speech” box if you made a speech or participated in a panel. These payments are not subject to the $440 gift limit, but may result in a disqualifying conflict of interest. date(s): / / - / / Amt: $
(If gift)
date(s): / / - / / Amt: $
(If gift)
Type of Payment: (must check one) Gift Income Type of Payment: (must check one) Gift Income date(s): / / - / / Amt: $
(If gift)
date(s): / / - / / Amt: $
(If gift)
► Name of source (Not an Acronym)
address (Business Address Acceptable)
City and state
business activity, if any, of source 501 (c)(3)
► Name of source (Not an Acronym)
address (Business Address Acceptable)
City and state
business activity, if any, of source 501 (c)(3)
► Name of source (Not an Acronym)
address (Business Address Acceptable)
City and state
business activity, if any, of source 501 (c)(3)
► Name of source (Not an Acronym)
address (Business Address Acceptable)
City and state
business activity, if any, of source 501 (c)(3)
Made a Speech/Participated in a Panel
Other - Provide Description
Made a Speech/Participated in a Panel
Other - Provide Description
Made a Speech/Participated in a Panel
Other - Provide Description
Made a Speech/Participated in a Panel
Other - Provide Description
ATTACHMENT 6
Appendix A
Suggested Checklist of Labor Law Requirements to Review at Prejob Conference, Section 16421, with suggested Certification by subcontractor.
The federal and state labor law requirements applicable to the contract are composed of but not limited to the following items:
(1) The contractor's duty to pay prevailing wages under Labor Code Section 1770 et seq., should the project exceed the exemption amounts;
(2) The contractor's duty to employ registered apprentices on the public works project under Labor Code Section 1777.5;
(3) The penalties for failure to pay prevailing wages (for non-exempt projects) and employ apprentices including forfeitures and debarment under Labor Code Sections 1775 and 1777.7; (4) The requirement to keep and submit copies upon request of certified payroll records under Labor Code Section 1776, and penalties for failure to do so under Labor Code Section 1776(g); (5) The prohibition against employment discrimination under Labor Code Section 1777.6; the Government Code, and Title VII of the Civil Rights Act of 1964; (6) The prohibition against accepting or extracting kickback from employee wages under Labor Code Section 1778;
(7) The prohibition against accepting fees for registering any person for public work under Labor Code Section 1779; or for filling work orders on public works under Labor Code Section 1780; (8) The requirement to list all subcontractors under Public Contracts Code Section 4104; (9) The requirement to be properly licensed and to require all subcontractors to be properly licensed and the penalty for employing workers while unlicensed under Labor Code Section 1021 and under the California Contractors License Law, found at Business and Professions Code Section 7000 et seq;
(10) The prohibition against unfair competition under Business and Professions Code Sections 17200-17208;
(11) The requirement that the contractor be properly insured for Workers Compensation under Labor Code Section 1861;
(12) The requirement that the contractor abide by the Occupational, Safety and Health laws and regulations that apply to the particular construction project; (13) The federal prohibition against hiring undocumented workers, and the requirement to secure proof of eligibility/citizenship from all workers.
(14) The requirement to provide itemized wage statements to employees under Labor Code Section 226.
Certification:
I acknowledge that I have been informed and am aware of the foregoing requirements and that I am authorized to make this certification on behalf of .
Date Name of person signing and company
ATTACHMENT 6
Labor Compliance Program Regulations – Appendix B
Audit Record Worksheets [8 Cal. Code Reg. §16432]
• Public Works Investigation Worksheet
• Public Works Audit Worksheet
• Prevailing Wage Determination Summary
ATTACHMENT 6
DEPT. OF INDUSTRIAL RELATIONS - DIVISION OF LABOR STANDARDS ENFORCEMENT PUBLIC WORKS INVESTIGATION WORKSHEET EMPLOYEE'S NAME SOCIAL SECURITY NUMBER DEPUTY OFFICE DATE Employer Case Number Classification Code
LAST DAY OF
WEEKLY
PERIOD
HOURSOF WORK
TOTAL
DAYS
WORKED
TOTAL
HOURS
WORKED
ACTUAL
RATE
OTHER
COMPENSATION
PAID
TOTAL
WAGES PAID
REQUIRED
WAGE
RATES
OTHER REQUIRED
COMPENSATION
TOTAL
WAGES
REQUIRED
AMOUNT
DUE AND
OWING
No. of Violations
PENALTIES
1775
No. of Violations
PENALTIES 1813 TOTAL TRAINING
FUND
AMOUNT DUE
AND OWING Tue Wed Thurs Fri Sat Sun Mon
S.T.
O.T.
D.T.
S.T.
O.T.
D.T.
S.T.
O.T.
D.T.
S.T.
O.T.
D.T.
S.T.
O.T.
D.T.
S.T.
O.T.
D.T.
S.T.
O.T.
D.T.
S.T.
O.T.
D.T.
S.T.
O.T.
D.T.
ATTACHMENT 6
S.T. O.T. D.T. *OTHER TOTAL WAGES
TOTAL
1775 Per Day
1813 Per Day
TOTAL AMOUNT
DUE
The following entries represent the amounts relied upon for calculating Labor Code 1775 and 1813 penalties.
PENALTIES
NO. 1
PENALTIES NO.
2 PERIOD
WORKED END
DATE
PREVAILING WAGE REQUIREMENTS
CLASSIFICATION
PERIOD
WORKED START
DATE
HOURS WORKED TOTAL
WAGES PAID
AMOUNT
OWING AND
UNPAID
TRNG.
EMPLOYEE FUND
OTHER
WAGES PAID
PROJECT PRIME
PENALTIES DUE AND OWING
AUDIT #/CASE # TRAINING FUND DUE/OWING
TRANSCRIBER
AWARDING BODY
TOTAL AMOUNT DUE/OWING
EMPLOYER / FIRM DEPUTY OFFICE WAGES DUE AND OWING
ADDRESS CITY
PUBLIC WORKS AUDIT WORKSHEET
ATTACHMENT 6
1 2
3 4
5 6
7 8
9 10
11 12
4 5
PREVAILING WAGE DETERMINATION SUMMARY WAGE DETERMINATION INFORMATION CODE
NO. CLASSIFICATION Effective Date
HOURLY
RATE Contributions TRAINING TIME 1/2
HOLIDAY/S
UNDAY
TRAVEL &
SUBSISTENCE
Other hourly
requirements
11 12
CODE
NO. CLASSIFICATION WAGE DETERMINATION NO.
6 7
8 9
10 1
2 3
ATTACHMENT 6
Suggested Single Project Labor Compliance Review and Enforcement Report Form [Appendix C following 8 CCR §16434]
Awarding Body:
Project Name:
Name of Approved Labor Compliance Program:
Bid Advertisement Date:
Acceptance Date:
Notice of Completion Recordation Date:
Summary of Labor Compliance Activities
1. Contract Documents Containing Prevailing Wage Requirements (Identify)
2. Prejob Conference(s) -- Attach list(s) of attendees and dates
3. Notification to Project Workers of Labor Compliance Program’s Contact Person. (Explain Manner of Notification for each project work site.)
4. Certified Payroll Record Review
a. CPRs Received From:
Contractor/Subcontractor For weeks ending (“w/e”) through w/e ATTACHMENT 6
b. Classifications identified in CPRs and applicable Prevailing Wage Determinations Classification Determination No.
5. Further investigation or audit due to CPR review, information or complaint from worker or other interested person, or other reason:
a. Independent Confirmation of CPR Data
Contractor/Subcontractor
Worker Interviews Reconciled CPRs with Pay-
(Yes/No) checks or Stubs (Yes/No)
b. Employer Payments (Health & Welfare, Pension, Vacation/Holiday) Confirmation Contractor/Subcontractor
Recipients of Written confirmation
Employer Payments Obtained (Yes/No)
c. Contributions to California Apprenticeship Council or Other Approved Apprenticeship Program
Contractor/Subcontractor
Recipients of Written confirmation
Contributions Obtained (Yes/No)
ATTACHMENT 6
d. Additional Wage Payments or Training Fund Contributions Resulting from Review of CPRs
Additional amounts Additional ExplaContractor/Subcontractor Paid to Workers Training Fund nation *
*
*
*
* Use separate page(s) for explanation
6. Complaints Received Alleging Noncompliance with Prevailing Wage Requirements.
Name of Resolution or
Complainant Date Received Current Status
*
*
*
*
*Use separate page(s) to explain resolution or current status
7. Requests for Approval of Forfeiture to Labor Commissioner Contractor/Subcontractor Date of Request Approved/Modified/Denied
8. Litigation Pending Under Labor Code Section 1742
Contractor/Subcontractor
9. (Check one): Final report this project
DIR Case Number
Annual report this project
Authorized Representative for Labor Compliance Program
ATTACHMENT 6
Labor Compliance Program Regulations – APPENDIX D
REQUEST FOR APPROVAL OF FORFEITURE -- Suggested format
1. AWARDING BODY / THIRD PARTY LCP:
Name and Contact Information: Date of Request:
Name and Contact Information for Awarding Body if different from LCP:
LCP Approval Status (specify if either
interim or temporary or if LCP has
extended authority):
2. PROJECT INFORMATION:
Project Name: Contract Number:
Project Location:
Bid Advertisement Dates: Estimated Date Project is to be completed:
Acceptance Date of Project by the Awarding
Body:
Notice of Completion/Date Recorded with County
Recorder:
Other Relevant Deadline (specify): Amount being held in Retention:
3. CONTRACTOR INFORMATION:
Name and address of Affected Contractor: Name and address of Affected Subcontractor:
General Description of Scope of Work of the Entire Project:
General Description of Scope of Work covered in the proposed Forfeiture (describe and attach relevant portions of contract or subcontract):
1 ATTACHMENT 6
4. LABOR COMPLIANCE PROGRAM INVESTIGATION AND FINDINGS:
Total Amount of Request for Notice of Withholding of Contract Payments:
Wages Due: Training Funds
Due:
Total Penalties Due: Potential Liquidated Damages
[Wages + Training Funds]:
LC 1775 Penalties Due: LC 1813 Penalties
Due:
LC 1776 Penalties Due: Other:
[Provide narrative summaries covering the following]:
A. Statement of Issues.
B. Investigative Report (detailed narrative including but not limited to how the investigation was conducted including worker declarations, reviewing certified payroll records, verification of employer payment contributions, etc.).
C. Audit Report (detailed explanation of how audit was completed addressing each of the issues above).
D. Affected contractor and subcontractor information (how affected contractor and subcontractor were informed of potential violations; summary of their response with respect to violations and penalty issues; and any other information considered in determining recommended penalties).
E. Recommended penalties under Labor Code Section 1775(a) and basis for recommendation, including how factors in subsection (a)(2) of Section 1775 were applied to arrive at the recommended amount(s).
ATTACHMENTS
1. Audit Summary (Appendix B)
2. 1st Bid Advertisement Publication
3. Notice of Completion
4. Scope of Work
5. Complaint form(s) and Declarations, if any
Send the Request and all Attachments to:
Division of Labor Standards Enforcement
Bureau of Field Enforcement
Attn.: Regional Manager
300 Oceangate Blvd., No. 850
Long Beach, CA 90802
COPIES OF THIS REQUEST, INCLUDING ALL ATTACHMENTS, SHALL BE SERVED ON
THE AFFECTED CONTRACTOR AND AFFECTED SUBCONTRACTOR AT THE SAME TIME THAT IT IS SENT TO THE DIVISION OF LABOR STANDARDS ENFORCEMENT.
ATTACHMENT 6
[Name and Contact Information for person issuing Notice] Date: Case or Contract No.:
NOTICE OF TEMPORARY WITHHOLDING OF CONTRACT PAYMENTS DUE TO DELINQUENT OR INADEQUATE PAYROLL RECORDS (8 CCR §16435) Awarding Body: Work performed in County of:
Project Name and Number (if any):
Prime Contractor:
Subcontractor:
Pursuant to Labor Code §1771.5(b)(5) and 8 CCR §16435, contract payments are being withheld due to delinquent or inadequate payroll records.
Contractor or subcontractor whose payroll records are delinquent or inadequate:
The following payroll records are delinquent (specify weeks and due dates):
The following payroll records are inadequate (specify weeks and ways in which records are deemed inadequate under 8 CCR §16435(d)):
Estimated amount of contract payments due to contractor or subcontractor that are being withheld pursuant to this Notice:
See page 2 for additional information, including appeal rights.
Labor Compliance Officer
ATTACHMENT 6
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Prime Contractor Obligations: If contract payments are being withheld due to the delinquency or inadequacy of your subcontractor’s payroll records, you are required to cease all payments to that subcontractor until the Labor Compliance Program provides notice that the subcontractor has cured the delinquency or deficiency.
Notice of Right to Obtain Review – Expedited Hearing
An affected contractor or subcontractor may request review an expedited hearing to review this Notice of Withholding of Contract Payments under Labor Code §1742. The only issue in any such review proceeding is whether the specified payroll records are in fact delinquent or inadequate within the meaning of 8 CCR §16435 or whether the Labor Compliance Program has exceeded its authority under 8 CCR §16435. To obtain an expedited hearing, a written request must be transmitted to the both the Labor Compliance Program and to the Lead Hearing Officer for the Director of the Department of Industrial Relations, as follows:
[Name of Labor Compliance Officer,
address, and fax number]
Office of the Director – Legal Unit
Attention: Lead Hearing Officer
Expedited Hearing Request
Fax to: (415) 703-4277
The request for expedited hearing should specify the basis for challenging this Notice and include a copy of this Notice as an attachment. The request should also identify and provide contact information for the person who will represent the contractor or subcontractor at the hearing.
Important Additional Information: This is a Notice of Temporary Withholding of Contract Payments for Delinquent or Inadequate Payroll Records only. This is not a determination of liability for wages or penalties under Labor Code §§1775 and 1776 or any other statute. Contract payments cannot continue to be withheld pursuant to this notice, once the required records have been produced. However, the contractor and subcontractor may still be subject to the assessment of back wages and penalties and the withholding of contract payments if, upon investigation, a determination is made that the contractor or subcontractor violated the public works requirements of the Labor Code.
This Notice only addresses rights and responsibilities under state law. Awarding bodies, labor compliance programs, and contractors may have other rights or responsibilities under federal or local law, where applicable, and may also have additional rights or remedies under the public works contract.
ATTACHMENT 6
Enclosure – text of 8 CCR §16435
§16435. Withholding Contract Payments When Payroll Records are Delinquent or Inadequate. (a) "Withhold" means to cease payments by the Awarding Body, or others who pay on its behalf, or agents, to the general contractor. Where the violation is by a subcontractor, the general contractor shall be notified of the nature of the violation and reference made to its rights under Labor Code Section 1729. (b) "Contracts." Except as otherwise provided by agreement, only contracts under a single master contract, including a Design-Build contract, or contracts entered into as stages of a single project, may be the subject of withholding.
(c) "Delinquent payroll records" means those not submitted on the date set in the contract. (d) "Inadequate payroll records" are any one of the following:
(1) A record lacking any of the information required by Labor Code Section 1776; (2) A record which contains all of the required information but is not certified, or is certified by someone who is not an agent of the contractor or subcontractor;
(3) A record remaining uncorrected for one payroll period after the Labor Compliance Program has given the contractor or subcontractor notice of inaccuracies detected by audit or record review. However, prompt correction will stop any duty to withhold if such inaccuracies do not amount to one (1) percent of the entire Certified Weekly Payroll in dollar value and do not affect more than half the persons listed as workers employed on that Certified Weekly Payroll, as defined in Labor Code Section 1776 and section 16401 of Title 8 of the California Code of Regulations.
(e) The withholding of contract payments when payroll records are delinquent or inadequate is required by Labor Code Section 1771.5(b)(5), and it does not require the prior approval of the Labor Commissioner. The Awarding Body shall only withhold those payments due or estimated to be due to the contractor or subcontractor whose payroll records are delinquent or inadequate, plus any additional amount that the Labor Compliance Program has reasonable cause to believe may be needed to cover a back wage and penalty assessment against the contractor or subcontractor whose payroll records are delinquent or inadequate; provided that a contractor shall be required in turn to cease all payments to a subcontractor whose payroll records are delinquent or inadequate until the Labor Compliance Program provides notice that the subcontractor has cured the delinquency or deficiency. (f) When contract payments are withheld under this section, the Labor Compliance Program shall provide the contractor and subcontractor, if applicable, with immediate written notice that includes all of the following: (1) a statement that payments are being withheld due to delinquent or inadequate payroll records, and that identifies what records are missing or states why records that have been submitted are deemed inadequate; (2) specifies the amount being withheld; and (3) informs the contractor or subcontractor of the right to request an expedited hearing to review the withholding of contract payments under Labor Code Section 1742, limited to the issue of whether the records are delinquent or inadequate or the Labor Compliance Program has exceeded its authority under this section.
(g) No contract payments shall be withheld solely on the basis of delinquent or inadequate payroll records after the required records have been produced.
(h) In addition to withholding contract payments based on delinquent or inadequate payroll records, penalties shall be assessed under Labor Code Section 1776(g) for failure to timely comply with a written request for certified payroll records. The assessment of penalties under Labor Code Section 1776(g) does require the prior approval of the Labor Commissioner under section 16436 of these regulations.
ATTACHMENT 6
Notice of Right to Obtain Review - Formal Hearing
In accordance with Labor Code Sections 1742 and 1771.6, an affected contractor or subcontractor may obtain review of this Notice of Withholding of Contract Payments (NWCOP) by transmitting a written request to the office of the Labor Compliance Program that appears below within 60 days after service of the notice. To obtain a hearing, a written Request for Review must be transmitted to the following address:
Labor Compliance Program
_________________________________________
Review Office-Notice of Withholding of Contract Payments _________________________________________
_________________________________________
A Request for Review either shall clearly identify the Notice of Withholding of Contract Payments from which review is sought, including the date of the Notice, or it shall include a copy of the Notice as an attachment, and shall also set forth the basis upon which the Notice is being contested. In accordance with Labor Code section 1742, the contractor or subcontractor shall be provided an opportunity to review evidence to be utilized by the Labor Compliance Program at the hearing within twenty (20) days of the Labor Compliance Program's receipt of the written Request for Review.
Failure by a contractor or subcontractor to submit a timely Request for Review will result in a final order which shall be binding on the contractor and subcontractor, and which shall also be binding, with respect to the amount due, on a bonding company issuing a bond that secures the payment of wages and a surety on a bond. Labor Code Section 1743.
In accordance with Labor Code Section 1742(d), a certified copy of a final order may be filed by the Labor Commissioner in the Office of the Clerk of the Superior Court in any county in which the affected contractor or subcontractor has property or has or had a place of business. The clerk, immediately upon the filing, shall enter judgment for the State against the person assessed in the amount shown on the certified order.
(continued on next page)
ATTACHMENT 6
Opportunity for Settlement Meeting
In accordance with Labor Code Section 1742.1 (b), the Labor Compliance Program shall, upon receipt of a request from the affected contractor or subcontractor within thirty (30) days following the service of this Notice of Withholding of Contract Payments, afford the contractor or subcontractor the opportunity to meet with the Labor Compliance Program's designee to attempt to settle a dispute regarding the notice. The settlement meeting may be held in person or by telephone and shall take place before the expiration of the 60-day period for seeking a hearing as set forth above under the heading Notice of Right to Obtain Review. No evidence of anything said or any admission made for the purpose of, in the course of, or pursuant to, the settlement meeting is admissible or subject to discovery in any administrative or civil proceeding. No writing prepared for the purpose of, in the course of, or pursuant to, the settlement meeting, other than a final settlement agreement, is admissible or subject to discovery in any administrative or civil proceeding. This opportunity to timely request an informal settlement meeting is in addition to the right to obtain a formal hearing, and a settlement meeting may be requested even if a written Request for Review has already been made. Requesting a settlement meeting, however, does not extend the 60-day period during which a formal hearing may be requested.
A written request to meet with the Labor Compliance Program's designee to attempt to settle a dispute regarding this notice must be transmitted to ______________________ at the following address:
_________________________________________
_________________________________________
_________________________________________
Liquidated Damages
In accordance with Labor Code Section 1742.1, after sixty (60) days following the service of this Notice of Withholding of Contract Payments, the affected contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the Notice shall be liable for liquidated damages in an amount equal to the wages, or portion thereof, that still remain unpaid. If this Notice subsequently is overturned or modified after administrative or judicial review, liquidated damages shall be payable only on the wages found to be due and unpaid. If the contractor or subcontractor demonstrates to the satisfaction of the Director of the Department of Industrial Relations that he or she had substantial grounds for believing this Notice to be an error, the Director shall waive payment of the liquidated damages.
Notwithstanding the above, in accordance with Labor Code Section 1742.1 (b), there shall be no liability for liquidated damages if the full amount found due in this Notice, including penalties, has been deposited with the Department of Industrial relations, within sixty 60) days following service of the Notice, for the Department to hold in escrow pending administrative and judicial review. The Department shall release such funds, plus any interest earned, at the conclusion of all administrative and judicial review to the persons and entities that are found to be entitled to such funds.
In lieu of a cash deposit, the contractor may post an undertaking with the Department in full amount of the Notice of Withholding of Contract Payments. The undertaking shall be on the condition that, if any decision is issued by the Director upholding this Notice, in any respect, the contractor shall pay the amount owed pursuant to a decision that is final under Labor Code Section 1742, unless the parties have executed a settlement agreement for the payment of some other amount, in which case ATTACHMENT 6
the contractor shall pay the amount that the contractor is obligated to pay under the terms of the settlement agreement. The undertaking must provide that if the contractor fails to pay the amount owed within ten (10) days of the date the decision is final or the execution of the settlement agreement, a portion of the undertaking equal to the amount owed, or the entire undertaking if the amount exceeds the undertaking is forfeited to the Labor Commissioner for the State of California for the purpose of satisfying the amounts owed under this Notice. A payment bond obtained by a contractor for the public works project which is the subject to this Notice shall not be accepted as an undertaking unless the following two conditions are completely satisfied: (1) the payment bond provides the payment of the full amount of this Notice, including, but not limited to, all wages, training, trust contributions, and penalties, and (2) the conditions of the payment set forth above are expressly agreed to by the affected contractor(s) and the surety which issued the payment bond. The undertaking should be forwarded to the Department as directed below. The Department’s Accounting Office will hold the undertaking until the administrative and judicial review is completed.
The disbursement of the bond funds will follow the same process as described above for a cash deposit.
Deposits must be made by check or money order payable to the Department of Industrial Relations with a letter and a copy of the Notice of Withhold Contract Payments and mailed to:
Department of Industrial Relations
Attention: Cashiering Unit\
P. O. Box 420603
San Francisco, CA 94142
The Amount of Liquidated Damages Available Under this Notice is $_______________.
Distribution: Attach:
Prime Contractor Audit Summary
Subcontractor Proof of Service
Surety(s) on Bond
ATTACHMENT 6
_____________________________________
Labor Compliance Program
_________________________________
_________________________________
_________________________________
_________________________________
Phone:
Fax:
(SEAL )
Date: In Reply Refer to Case No.:
Notice of Withholding of Contract Payments
Awarding Body ³ Work Performed in County of
Project Name ³ Project No.
Prime Contractor
Subcontractor
After an investigation concerning the payment of wages to workers employed in the execution of the contract for the above-named public works project, the Labor Compliance Program for _______________ _______________________ (Awarding Body) has determined that violations of the California Labor Code have been committed by the contractor and/or subcontractor identified above. In accordance with Labor Code sections 1771.5 and 1771.6, the Labor Compliance Program hereby issues this Notice of Withholding of Contract Payments.
The nature of the violations of the Labor Code and the basis for the assessment are as follows:
The Labor Compliance Program has determined that the total amount of wages due is: $___________________
The Labor Compliance Program has determined that the total amount of penalties assessed under Labor Code sections 1775 and 1813 is: $__________________ The Labor Compliance Program has determined that the amount of penalties assessed under Labor Code section 1776 is: $__________________
LABOR COMPLIANCE PROGRAM
By:__________________________________
ATTACHMENT 6
_________________________________________
_________________________________________
_________________________________________
Notice of Right to Obtain Review - Formal Hearing
In accordance with Labor Code sections 1742 and 1771.6, an affected contractor or subcontractor may obtain review of this Notice of Withholding of Contract Payments (NWCP) by transmitting a written request to the office of the Labor Compliance Program that appears below within 60 days after service of the notice. To obtain a hearing, a written Request for Review must be transmitted to the following address:
Labor Compliance Program
Review Office-Notice of Withholding of Contract Payments A Request for Review either shall clearly identify the Notice of Withholding of Contract Payments from which review is sought, including the date of the notice, or it shall include a copy of the notice as an attachment, and shall also set forth the basis upon which the notice is being contested. In accordance with Labor Code section 1742, the contractor or subcontractor shall be provided an opportunity to review evidence to be utilized by the Labor Compliance Program at the hearing within 20 days of the Labor Compliance Program's receipt of the written Request for Review.
Failure by a contractor or subcontractor to submit a timely Request for Review will result in a final order which shall be binding on the contractor and subcontractor, and which shall also be binding, with respect to the amount due, on a bonding company issuing a bond that secures the payment of wages and a surety on a bond. Labor Code section 1743.
In accordance with Labor Code section 1742(d), a certified copy of a final order may be filed by the Labor Commissioner in the office of the clerk of the superior court in any county in which the affected contractor or subcontractor has property or has or had a place of business. The clerk, immediately upon the filing, shall enter judgment for the State against the person assessed in the amount shown on the certified order. (continued on next page)
ATTACHMENT 6
_________________________________________
_________________________________________
_________________________________________
Opportunity for Settlement Meeting
In accordance with Labor Code Section 1742.1 (c), the Labor Compliance Program shall, upon receipt of a request from the affected contractor or subcontractor within 30 days following the service of this Notice of Withholding of Contract Payments, afford the contractor or subcontractor the opportunity to meet with the Labor Compliance Program's designee to attempt to settle a dispute regarding this Notice. The settlement meeting may be held in person or by telephone and shall take place before the expiration of the 60-day period for seeking a hearing as set forth above under the heading Notice of Right to Obtain Review. No evidence of anything said or any admission made for the purpose of, in the course of, or pursuant to, the settlement meeting is admissible or subject to discovery in any administrative or civil proceeding. No writing prepared for the purpose of, in the course of, or pursuant to, the settlement meeting, other than a final settlement agreement, is admissible or subject to discovery in any administrative or civil proceeding. This opportunity to timely request an informal settlement meeting is in addition to the right to obtain a formal hearing, and a settlement meeting may be requested even if a written Request for Review has already been made. Requesting a settlement meeting, however, does not extend the 60-day period during which a formal hearing may be requested.
A written request to meet with the Labor Compliance Program's designee to attempt to settle a dispute regarding this notice must be transmitted to ______________________ at the following address:
Liquidated Damages
In accordance with Labor Code section 1742.1 (a), after 60 days following the service of this Notice of Withholding of Contract Payments, the affected contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the notice shall be liable for liquidated damages in an amount equal to the wages, or portion thereof that still remain unpaid. If this Notice subsequently is overturned or modified after administrative or judicial review, liquidated damages shall be payable only on the wages found to be due and unpaid. If the contractor or subcontractor demonstrates to the satisfaction of the Director of the Department of Industrial Relations that he or she had substantial grounds for believing this Notice to be an error, the Director shall waive payment of the liquidated damages.
Notwithstanding the above, in accordance with Labor Code 1742.1 (b), there shall be no liability for liquidated damages if the full amount found due in this Notice, including penalties, has been deposited with the Department of Industrial Relations, within 60 days following service of this Notice, for the Department to hold in escrow pending administrative and judicial review. The Department shall release such funds, plus any interest earned, at the conclusion of all administrative and judicial review to the persons and entities who are found to be entitled to such funds.
In lieu of a cash deposit, the contractor may post an undertaking with the Department in full amount of the Notice of Withholding of Contract Payments. The undertaking shall be on the condition that, if any decision is issued by the Director upholding this Notice in any respect, the contractor shall pay the amount owed pursuant to a decision that is final under Labor Code Section 1742, unless the parties have executed a settlement agreement for the payment of some other amount, in which case the contractor shall pay the ATTACHMENT 6
amount that the contractor is obligated to pay under the terms of the settlement agreement. The undertaking must provide that if the contractor fails to pay the amount owed within 10 days of the date the decision is final or the execution of the settlement agreement, a portion of the undertaking equal to the amount owed, or the entire undertaking if the amount exceeds the undertaking is forfeited to the Labor Commissioner for the State of California for the purpose of satisfying the amounts owed under this Notice. A payment bond obtained by a contractor for the public works project which is the subject to this Notice shall not be accepted as an undertaking unless the following two conditions are completely satisfied: (1) the payment bond provides the payment of the full amount of this Notice, including but not limited to, all wages, training, trust contributions, and penalties, and (2) the conditions of payment set forth above are expressly agreed to by the affected contractor(s) and the surety which issued the payment bond. The undertaking should be forwarded to the Department as directed below. The Department’s Accounting Office will hold the undertaking until the administrative and judicial review is completed. The disbursement of the bond funds will follow the same process as described above for a cash deposit.
Deposits must be made by check or money order payable to the Department of Industrial Relations with a letter and a copy of the Notice of Withhold Contract Payments and mailed to:
Department of Industrial Relations
Attention Cashiering Unit
P.O. Box 420603
San Francisco, CA 94142
The Amount of Liquidated Damages Available Under this Notice is $_______________.
Distribution: Attach:
Prime Contractor
Subcontractor
Surety(s) on Bond
Audit Summary
Proof of Service
ATTACHMENT 6
________________________________
LABOR COMPLIANCE PROGRAM
________________________________
Review Office - Notice of Withholding
of Contract Payments
_________________________________
_________________________________
_________________________________
Phone:
Fax:
(SEAL )
Date: In Reply Refer to Case No.:
Notice of Transmittal
To: Department of Industrial Relations
Office of the Director-Legal Unit
Attention: Lead Hearing Officer
P. O. Box 420603
San Francisco, CA 94142-0603
Enclosed herewith please find a Request for Review, dated __________________, postmarked ___________________, and received by this office on ____________________.
Also enclosed please find the following:
____ Copy of Notice of Withholding of Contract Payments ____ Copy of Audit Summary
LABOR COMPLIANCE PROGRAM
By:_____________________________
cc: Prime Contractor
Subcontractor
Bonding Company
Please be advised that the Request for Review identified above has been received and transmitted to the address indicated. Please be further advised that the governing procedures applicable to these hearings are set forth at Title 8, California Code of Regulations sections 17201-17270. These hearings are not governed by Chapter 5 of the Government Code, commencing with section 11500.
ATTACHMENT 6
__________________________
__________________________
__________________________
__________________________
__________________________
__________________________
LABOR COMPLIANCE PROGRAM
________________________________
Review Office - Notice of Withholding
of Contract Payments
_________________________________
_________________________________
_________________________________
Phone:
Fax:
(SEAL )
Date: In Reply Refer to Case No.:
Notice of Opportunity to Review Evidence Pursuant to Labor Code Section 1742(b) To: Prime Contractor
Subcontractor
Please be advised that this office has received your Request for Review, dated _____________, and pertaining to the Notice of Withholding of Contract Payments issued by the Labor Compliance Program in Case No. _____________.
In accordance with Labor Code section 1742(b), this notice provides you with an opportunity to review evidence to be utilized by the Labor Compliance Program at the hearing on the Request for Review, and the procedures for reviewing such evidence.
Rule 17224 of the Prevailing Wage Hearing Regulations provides as follows:
A(a) Within ten (10) days following its receipt of a Request for Review, the Enforcing Agency shall also notify the affected contractor or subcontractor of its opportunity and the procedures for reviewing evidence to be utilized by the Enforcing Agency at the hearing of the Request for Review. (b) An Enforcing Agency shall be deemed to have provided the opportunity to review evidence required by this Rule if it (1) gives the affected contractor or subcontractor the option at said party's own expense to either (i) obtain copies of all such evidence through a commercial copying service or (ii) inspect and copy such evidence at the office of the Enforcing Agency during normal business ATTACHMENT 6
________________________________
________________________________
________________________________
________________________________
________________________________
hours; or if (2) the Enforcing Agency at its own expense forwards copies of all such evidence to the affected contractor or subcontractor. (c) The evidence required to be provided under this Rule shall include the identity of witnesses whose testimony the Enforcing Agency intends to present, either in person at the hearing or by declaration or affidavit. This provision shall not be construed as requiring the Enforcing Agency to prepare or provide any separate listing of witnesses whose identities are disclosed within the written materials made available under subpart (a).
(d) The Enforcing Agency shall make evidence available for review as specified in subparts (a) through (c) within 20 days of its receipt of the Request for Review; provided that, this deadline may be extended by written request or agreement of the affected contractor or subcontractor. The Enforcing Agency's failure to make evidence available for review as required by Labor Code section 1742(b) and this Rule, shall preclude the enforcing agency from introducing such evidence in proceedings before the Hearing officer or the Director. (e) This Rule shall not preclude the Enforcing Agency from relying upon or presenting any evidence first obtained after the initial disclosure of evidence under subparts (a) through (d), provided that, such evidence is promptly disclosed to the affected contractor or subcontractor. This Rule also shall not preclude the Enforcing Agency from presenting previously undisclosed evidence to rebut new or collateral claims raised by another party in the proceeding.@ In accordance with the above Rule, please be advised that the Labor Compliance Program's procedure for you to exercise your opportunity to review evidence is as follows:
Within five calendar days of the date of this notice, please transmit the attached Request to Review Evidence to the following address:
Attention:________________________
ATTACHMENT 6
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
________________________________
Request to Review Evidence
To: ______________________________
From:______________________________
Regarding Notice of Withholding of Contract Payments Dated ____________ Our Case No.: _________________
The undersigned hereby requests an opportunity to review evidence to be utilized by the Labor Compliance Program at the hearing on the Request for Review.
Phone No.:_______________________
Fax No.:_________________________
ATTACHMENT 6
Request to Review Evidence
To: ______________________________
______________________________
______________________________
______________________________
From:______________________________
______________________________
______________________________
______________________________
Regarding Notice of Withholding of Contract Payments Dated ____________ Our Case No.: _________________
The undersigned hereby requests an opportunity to review evidence to be utilized by the Labor Compliance Program at the hearing on the Request for Review. ________________________________
Phone No.:_______________________
Fax No.:_________________________
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___________________________________________ ________________________________________________________ ________________________________ LCP-AR1
LABOR COMPLIANCE PROGRAM ANNUAL REPORT
Format for Awarding Body that enforces its own Labor Compliance Program for some but not all projects Report for the reporting period ______________ to _____________ (mm/dd/yyyy) (mm/dd/yyyy)
1. Name of Labor Compliance Program (LCP) :
2. LCP I.D. Number (assigned by DIR): 3. Date of Initial Approval:
4. Contact person (include name, title, address, telephone, fax, and e-mail, if available):
5. Did LCP perform any LC § 1771.5 enforcement activities during the 12 months in the reporting period? Please check one: Yes If Yes, proceed to item 6 on the next page No If No, complete the information below, sign the form and submit to DIR, Office of the Director, Attn: LCP Special Assistant, 1515 Clay Street, 17th Floor, Oakland CA 94612
What suggestions do you have for the Department of Industrial Relations to better assist you with your program in the coming year? (attach additional sheets if necessary)
SUBMITTED BY:
Signature Name and Title Date
LCP ANNUAL REPORT 8 CCR § 16431 -- AB limited 2008
ATTACHMENT 6
LCP-AR1
6. LC § 1771.5 enforcement activities (provide all information requested, attaching as many sheets as necessary).
A. List projects handled by LCP within the past 12 months.
Project Name Bid Advertisement Date Prime Contractor Contract Amount Total
B. Summary of all wages and penalties assessed and/or recovered.
Project Name
Affected Contractor
(who directly employed the
worker)
Amount
Assessed
Amount
Recovered
Approval of
Forfeiture
Requested from
Labor
Commissioner?
Description of Violation
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Total
LCP ANNUAL REPORT 8 CCR § 16431 -- AB limited 2008
ATTACHMENT 6
LCP-AR1
C. For any amount identified in item B for which approval of forfeiture not requested from the Labor Commissioner, please explain below.
Project Name Amount Assessed Amount
Recovered Explanation
Total
D. For any amount identified in item B for which approval of forfeiture was requested from the Labor Commissioner, please provide the following:
Project Amount Assessed Amount Recovered
Name LC §1776(g) LC § 1775 LC § 1813 Wages Total LC § 1776(g) LC § 1775 LC § 1813 Wages Total Total
E. Identify cases that are or were the subject of LC § 1742 proceedings.
Project Name Contractor Nature of Violation ODL Case # Current Status F. Did you refer any contractor to the Labor Commissioner for debarment per LC § 1777.1? No
If yes, identify affected contractor(s) or subcontractor(s) and date(s) of referral: __________________________________________________________________ Please check one: Yes
G. Did you refer any apprenticeship violation to the Division of Apprenticeship Standards (DAS)? No
If yes, identify affected contractor(s) or subcontractor(s) and date(s) of referral:
Please check one: Yes
LCP ANNUAL REPORT 8 CCR § 16431 -- AB limited 2008
ATTACHMENT 6
December 2012
2012/2013
Statement of
Economic Interests
Form 700
California Fair Political Practices Commission
428 J Street, Suite 620 • Sacramento, CA 95814
Email Advice: [email protected]
Toll-free advice line: 1 (866) ASK-FPPC • 1 (866) 275-3772 Telephone: (916) 322-5660 • Website: www.fppc.ca.gov
A Public Document
Also available on the FPPC website:
• Form 700 in Excel format
• Reference Pamphlet for Form 700
ATTACHMENT 6
What’s New
During 2011 and 2012, the gift limit was $420 from a single source per calendar year. For calendar years 2013-2014, the limit increased to $440 from a single source during a calendar year. This gift limit is effective until December 31, 2014.
Filing Deadlines for Filers Under Active Military Duty– If a person is under active military duty as defined in the Servicemember’s Civil Relief Act, the deadline for the annual Form 700 is 30 days following his or her return to office, provided the person or a representative notifies the filing officer in writing prior to the filing deadline that he or she is subject to that federal statute and is unable to meet the applicable deadline, and provides the filing officer verification of his or her military status.
Who must file:
• Elected and appointed officials and candidates listed in Government Code Section 87200
• Employees and appointed officials filing pursuant to a conflictof-interest code (“code filers”). Obtain your disclosure categories, which describe the interests you must report, from your agency; they are not part of the Form 700
• Candidates running for local elective offices that are designated in a conflict-of-interest code (e.g., county sheriffs, city clerks, school board trustees, and water board members) • Members of newly created boards and commissions not yet covered under a conflict-of-interest code
• Employees in newly created positions of existing agencies See Reference Pamphlet, page 3, at www.fppc.ca.gov or obtain from your filing officer.
Where to file:
87200 Filers
State offices Your agency
Judicial offices The clerk of your court
Retired Judges Directly with FPPC
County offices Your county filing official
City offices Your city clerk
Multi-County offices Your agency
Code Filers — State and Local Officials and Employees
Designated in a Conflict-of-Interest Code:
File with your agency, board, or commission unless otherwise specified in your agency’s conflict-of-interest code (e.g., Legislative staff files directly with FPPC). In most cases, the agency, board, or commission will retain the statements.
Members of Boards and Commissions of Newly Created
Agencies: File with your newly created agency or with your agency’s code reviewing body.
Employees in Newly Created Positions of Existing Agencies:
File with your agency or with your agency’s code reviewing body.
See Reference Pamphlet, page 3.
Candidates: File with your local elections office.
How to file:
The Form 700 is available at www.fppc.ca.gov. Form 700
schedules are also available in Excel format. All statements must have an original “wet” signature or be duly authorized by your filing officer to file electronically under Government Code Section 87500.2. Instructions, examples, FAQs, and a reference pamphlet are available to help answer your questions.
When to file:
Annual Statements
March 1, 2013
- Elected State Officers
- Judges and Court Commissioners
- State Board and Commission Members listed in
Government Code Section 87200
April 2, 2013
- Most other filers
Individuals filing under conflict-of-interest codes in city and county jurisdictions should verify the annual filing date with their local filing officers.
Statements postmarked by the filing deadline are considered filed on time.
Assuming Office and Leaving Office Statements
Most filers file within 30 days of assuming or leaving office or within 30 days of the effective date of a newly adopted or amended conflict-of-interest code.
Exception:
If you assumed office between October 1, 2012, and December 31, 2012, and filed an assuming office statement, you are not required to file an annual statement until March 3, 2014, or April 1, 2014, whichever is applicable. The annual statement will cover the day after you assumed office through December 31, 2013. See Reference Pamphlet, pages 6 and 7, for additional exceptions.
Candidate Statements
File no later than the final filing date for the declaration of candidacy or nomination documents.
Amendments
Statements may be amended at any time. You are only required to amend the schedule that needs to be revised. It is not necessary to amend the entire filed form. Obtain amendment schedules at www.fppc.ca.gov.
There is no provision for filing deadline extensions unless the filer is under active military duty. (Regulation 18723) Statements of 30 pages or less may be faxed by the deadline as long as the originally signed paper version is sent by first class mail to the filing official within 24 hours.
ATTACHMENT 6
The Political Reform Act (Gov. Code Sections 81000-
91014) requires most state and local government officials and employees to publicly disclose their personal assets and income. They also must disqualify themselves
from participating in decisions that may affect their
personal economic interests. The Fair Political Practices Commission (FPPC) is the state agency responsible for
issuing the attached Statement of Economic Interests,
Form 700, and for interpreting the law’s provisions.
Gift Prohibition
Gifts received by most state and local officials, employees, and candidates are subject to a limit. During 2011 and
2012, the gift limit was $420 from a single source per
calendar year. For calendar years 2013-2014, the limit
increased to $440 from a single source during a calendar year. This gift limit is effective until December 31, 2014.
In addition, state officials, state candidates, and certain state employees are subject to a $10 limit per calendar month on gifts from lobbyists and lobbying firms registered with the Secretary of State. See Reference Pamphlet,
page 10.
State and local officials and employees should check with their agency to determine if other restrictions apply.
Disqualification
Public officials are, under certain circumstances, required to disqualify themselves from making, participating in, or attempting to influence governmental decisions that will affect their economic interests. This may include interests they are not required to disclose (i.e., a personal residence is often not reportable, but may be disqualifying). Specific disqualification requirements apply to 87200 filers (e.g., city councilmembers, members of boards of supervisors,
planning commissioners, etc.). These officials must identify orally the economic interest that creates a conflict of interest and leave the room before a discussion or vote takes
place at a public meeting. For more information, consult Government Code Section 87105, Regulation 18702.5, and
the Overview of the Conflict of Interest Laws at
www.fppc.ca.gov.
Honorarium Ban
Most state and local officials, employees, and candidates are prohibited from accepting an honorarium for any speech given, article published, or attendance at a conference, convention, meeting, or like gathering. See Reference
Pamphlet, page 10.
Loan Restrictions
Certain state and local officials are subject to restrictions on loans. See Reference Pamphlet, page 14.
Post-Governmental Employment
There are restrictions on representing clients or employers before former agencies. The provisions apply to elected state officials, most state employees, local elected officials, county chief administrative officers, city managers,
including the chief administrator of a city, and general managers or chief administrators of local special districts and JPAs. The FPPC website has fact sheets explaining
the provisions.
Late Filing
The filing officer who retains originally-signed statements of economic interests may impose on an individual a fine for any statement that is filed late. The fine is $10 per day up to a maximum of $100. Late filing penalties may be reduced or waived under certain circumstances.
Persons who fail to timely file their Form 700 may be
referred to the FPPC’s Enforcement Division (and, in some cases, to the Attorney General or district attorney) for investigation and possible prosecution. In addition to the late filing penalties, a fine of up to $5,000 per violation may be imposed.
For assistance concerning reporting, prohibitions, and
restrictions under the Act:
• Email questions to [email protected].
• Call the FPPC toll-free at (866) 275-3772.
Form 700 Public Access
Statements of Economic Interests are public
documents. The filing officer must permit any
member of the public to inspect and receive a copy
of any statement.
• Statements must be available as soon as possible
during the agency's regular business hours, but
in any event not later than the second business
day after the statement is received. Access to the
Form 700 is not subject to the Public Records Act
procedures.
• No conditions may be placed on persons seeking
access to the forms.
• No information or identification may be required
from persons seeking access.
• Reproduction fees of no more than 10 cents per
page may be charged.
Introduction
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Introduction
ATTACHMENT 6
Assuming Office Statement:
If you are a newly appointed official or are newly employed in a position designated, or that will be designated, in a state or local agency’s conflict-of-interest code, your assuming office date is the date you were sworn in or
otherwise authorized to serve in the position. If you are a newly elected official, your assuming office date is the date you were sworn in.
• Investments, interests in real property, and business positions held on the date you assumed the office
or position must be reported. In addition, income
(including loans, gifts, and travel payments) received
during the 12 months prior to the date you assumed the
office or position is reportable.
For positions subject to confirmation by the State Senate or the Commission on Judicial Performance, your
assuming office date is the date you were appointed or
nominated to the position.
Example:
Maria Lopez was nominated by the Governor to serve
on a state agency board that is subject to state Senate confirmation. The assuming office date is the date Maria’s nomination is submitted to the Senate. Maria must report investments, interests in real property, and business
positions she holds on that date, and income (including loans, gifts, and travel payments) received during the 12 months prior to that date.
If your office or position has been added to a newly
adopted or newly amended conflict-of-interest code, use the effective date of the code or amendment, whichever is applicable.
• Investments, interests in real property, and business positions held on the effective date of the code or
amendment must be reported. In addition, income
(including loans, gifts, and travel payments) received
during the 12 months prior to the effective date of the code or amendment is reportable.
Annual Statement:
Generally, the period covered is January 1, 2012, through December 31, 2012. If the period covered by the statement is different than January 1, 2012, through December 31, 2012, (for example, you assumed office between October 1, 2011, and December 31, 2011, or you are combining statements), you must specify the period covered.
• Investments, interests in real property, business
positions held, and income (including loans, gifts, and travel payments) received during the period covered
by the statement must be reported. Do not change the
preprinted dates on Schedules A-1, A-2, and B unless
you are required to report the acquisition or disposition of an interest that did not occur in 2012.
• If your disclosure category changes during a
reporting period, disclose under the old category
until the effective date of the conflict-of-interest code amendment and disclose under the new disclosure
category through the end of the reporting period.
Leaving Office Statement:
Generally, the period covered is January 1, 2012, through the date you stopped performing the duties of your position.
If the period covered differs from January 1, 2012, through the date you stopped performing the duties of your position (for example, you assumed office between October 1, 2011, and December 31, 2011, or you are combining statements), the period covered must be specified.
• Investments, interests in real property, business
positions held, and income (including loans, gifts, and travel payments) received during the period covered
by the statement must be reported. Do not change the
preprinted dates on Schedules A-1, A-2, and B unless
you are required to report the acquisition or disposition of an interest that did not occur in 2012.
Candidate Statement:
If you are filing a statement in connection with your
candidacy for state or local office, investments, interests in real property, and business positions held on the date of filing your declaration of candidacy must be reported.
In addition, income (including loans, gifts, and travel payments) received during the 12 months prior to the date of filing your declaration of candidacy is reportable. Do not change the preprinted dates on Schedules A-1, A-2, and B.
Candidates running for local elective offices (e.g., county sheriffs, city clerks, school board trustees, and water district board members) must file candidate statements, as required by the conflict-of-interest code for the elected position. The code may be obtained from the agency of
the elected position.
Amendments:
If you discover errors or omissions on any statement, file an amendment as soon as possible. You are only required to amend the schedule that needs to be revised; it is not necessary to refile the entire form. To obtain amendment schedules, contact the FPPC, your filing official, or go to the FPPC website at www.fppc.ca.gov.
Types of Statements
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Types of Statements
ATTACHMENT 6
Instructions — Cover Page
Enter your name, mailing address, and daytime telephone number in the spaces provided. Because the Form 700 is a public document, you may list your business/office address instead of your home address.
Part 1. Office, Agency, or Court
• Enter the name of the office sought or held, or the agency or court. Consultants must enter the public agency name rather than their private firm’s name. (Examples: State Assembly; Board of Supervisors; Office of the Mayor;
Department of Finance; Hope County Superior Court)
• Indicate the name of your division, board, or district, if applicable. (Examples: Division of Waste Management;
Board of Accountancy; District 45)
• Enter your position title. (Examples: Director; Chief Counsel; City Council Member; Staff Services Analyst)
• If you hold multiple positions (i.e., a city council member who also is a member of a county board or commission),
you may be required to file statements with each agency.
To simplify your filing obligations, you may complete an expanded statement.
To do this, enter the name of the other agency(ies) with which you are required to file and your position title(s) in the space provided. Attach an additional sheet if
necessary. Complete one statement covering the
disclosure requirements for all positions. Each copy must contain an original signature. Therefore, before signing the statement, make a copy for each agency. Sign each
copy with an original signature and file with each agency.
Example:
Scott Baker is a city council member for the City of Lincoln and a board member for the Camp Far West Irrigation
District – a multi-county agency that covers Placer and Yuba counties. Scott will complete one Form 700 using full disclosure (as required for the city position) and covering interests in both Placer and Yuba counties (as required for the multi-county position) and list both positions on the Cover Page. Before signing the statement, Scott will make a copy and sign both statements. One statement will be filed with City of Lincoln and the other will be filed with Camp Far West Irrigation District. Both will contain an original signature.
Remember that if you assume or leave a position after a filing deadline, you must complete a separate statement.
For example, a city council member who assumes a
position with a county special district after the April 2 annual filing deadline must file a separate assuming office statement. In subsequent years, the city council member may expand his or her annual filing to include both
positions.
Part 2. Jurisdiction of Office
• Check the box indicating the jurisdiction of your agency and, if applicable, identify the jurisdiction. Judges, judicial candidates, and court commissioners have statewide
jurisdiction. All other filers should review the Reference Pamphlet, page 13, to determine their jurisdiction.
• If your agency is a multi-county office, list each county in which your agency has jurisdiction.
• If your agency is not a state office, court, county office, city office, or multi-county office (e.g., school districts, special districts and JPAs), check the “other” box and enter the county or city in which the agency has jurisdiction.
Example:
This filer is a member of a water district board with jurisdiction in portions of Yuba and Sutter Counties.
Part 3. Type of Statement
Check at least one box. The period covered by a statement is determined by the type of statement you are filing. If you are completing a 2012 annual statement, do not change the pre-printed dates to reflect 2013. Your annual statement is used for reporting the previous year’s economic interests.
Economic interests for your annual filing covering January 1, 2013, through December 31, 2013, will be disclosed on your statement filed in 2014. See Reference Pamphlet, page 4.
Combining Statements: Certain types of statements may be combined. For example, if you leave office after January 1, but before the deadline for filing your annual statement, you may combine your annual and leaving office statements. File by the earliest deadline. Consult your filing officer or the FPPC.
Part 4. Schedule Summary
• Enter the total number of completed pages including the cover page and either:
Check the box for each schedule you use to disclose
interests;
- or -
if you have nothing to disclose on any schedule, check the “No reportable interests” box. Please do not attach any blank schedules.
Part 5. Verification
Complete the verification by signing the statement and
entering the date signed. All statements must have an original “wet” signature or be duly authorized by your filing officer to file electronically under Government Code Section 87500.2.
Instructions, examples, FAQs, and a reference pamphlet are available to help answer your questions. When you sign your statement, you are stating, under penalty of perjury, that it is true and correct. Only the filer has authority to sign the statement. An unsigned statement is not considered filed and you may be subject to late filing penalties.
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 1
ATTACHMENT 6
Leaving Office: Date Left / /
(Check one)
The period covered is January 1, 2012, through the date of leaving office.
The period covered is / / , through
the date of leaving office.
Annual: The period covered is January 1, 2012, through
December 31, 2012.
The period covered is / / , through
December 31, 2012.
Statement of Economic Interests
Cover Page
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
I have used all reasonable diligence in preparing this statement. I have reviewed this statement and to the best of my knowledge the information contained herein and in any attached schedules is true and complete. I acknowledge this is a public document.
I certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Date Signed
(month, day, year)
3. Type of Statement (Check at least one box)
State Judge or Court Commissioner (Statewide Jurisdiction) Multi-County County of
City of Other
2. Jurisdiction of Office (Check at least one box)
Candidate: Election year and office sought, if different than Part 1:
Assuming Office: Date assumed / /
Date Received
Official Use Only
Please type or print in ink.
700 Fair Political Practices Commission
CALIFORNIA FORM
Agency Name
Division, board, Department, District, if applicable Your Position
1. Office, Agency, or Court
4. Schedule Summary
Name of Filer (Last) (First) (Middle)
Check applicable schedules or “None.”
Schedule A-1 - Investments – schedule attached
Schedule A-2 - Investments – schedule attached
Schedule B - Real Property – schedule attached
► Total number of pages including this cover page:
Mailing Address street city State Zip Code
( )
Daytime telephone number E-mail address (Optional)
(Business or Agency Address Recommended - Public Document) Signature
(File the originally signed statement with your filing official.)
5. Verification
Schedule C - Income, Loans, & Business Positions – schedule attached Schedule D - Income – Gifts – schedule attached
Schedule E - Income – Gifts – Travel Payments – schedule attached -or-
None - No reportable interests on any schedule
A Public Document
► If filing for multiple positions, list below or on an attachment.
Agency: Position:
-orATTACHMENT 6
Common Reportable Interests
Schedule A-1: Stocks, including those held in an IRA or a 401K Schedule A-2: Business entities (including certain independent contracting), sole proprietorships, partnerships, LLCs, corporations, and trusts
Schedule B: Rental property in the jurisdiction
Schedule C: Non-governmental salaries of public official and spouse/registered domestic partner Schedule D: Gifts from non-family members (such as tickets to sporting or entertainment events) Schedule E: Travel payments from third parties (not your employer) Common Non-Reportable Interests
Schedule A-1/A-2: Insurance policies, government bonds, diversified mutual funds, certain funds similar to diversified mutual funds (such as exchange traded funds) and investments held in certain retirement accounts. See Reference Pamphlet, page 12, for detailed information. (Regulation 18237)
Schedule A-1/A-2: Savings and checking accounts and annuities Schedule B: A residence used exclusively as a personal residence (such as a home or vacation cabin)
Schedule C: Governmental salary (such as a school district) Schedule D: Gifts from family members
Schedule E: Travel paid by your government agency
Remember:
Mark the “No reportable interests” box on Part 4 of the Schedule Summary on the Cover Page if you determine you have nothing to disclose and file the Cover Page only. Make sure you carefully read all instructions to ensure proper reporting. The Form 700 is a public document.
Most individuals must consult their agency’s conflict-of-interest code for reportable interests. Most individuals file the Form 700 with their agencies.
Which Schedule Do I Use?
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions - 3
ATTACHMENT 6
General
Q. What is the reporting period for disclosing interests on an assuming office statement or a candidate
statement?
A. On an assuming office statement, disclose all
reportable investments, interests in real property, and business positions held on the date you assumed
office. In addition, you must disclose income (including loans, gifts and travel payments) received during the
12 months prior to the date you assumed office.
On a candidate statement, disclose all reportable
investments, interests in real property, and business
positions held on the date you file your declaration of candidacy. You must also disclose income (including
loans, gifts and travel payments) received during the
12 months prior to the date you file your declaration of candidacy.
Q. I hold two other board positions in addition to my
position with the county. Must I file three statements of economic interests?
A. Yes, three are required. However, you may complete
one statement listing the county and the two boards
on the Cover Page or an attachment as the agencies
for which you will be filing. Report your economic
interests using the largest jurisdiction and highest
disclosure requirements assigned to you by the three
agencies. Make two copies of the entire statement
before signing it, sign each copy with an original
signature, and distribute one original to the county
and to each of the two boards. Remember to
complete separate statements for positions that
you leave or assume during the year.
Q. I am a department head who recently began acting as
city manager. Should I file as the city manager?
A. Yes. File an assuming office statement as city
manager. Persons serving as “acting,” “interim,”
or “alternate” must file as if they hold the position
because they are or may be performing the duties of
the position.
Q. As a designated employee, I left one state agency to work for another state agency. Must I file a leaving
office statement?
A. Yes. You may also need to file an assuming office
statement for the new agency.
Investment Disclosure
Q. I have an investment interest in shares of stock
in a company that does not have an office in my
jurisdiction. Must I still disclose my investment interest in this company?
A. Probably. The definition of “doing business in the
jurisdiction” is not limited to whether the business has an office or physical location in your jurisdiction. See Reference Pamphlet, page 13.
Q. My spouse and I have a living trust. The trust
holds rental property in my jurisdiction, our primary
residence, and investments in diversified mutual funds.
I have full disclosure. How is this trust disclosed?
A. Disclose the name of the trust, the rental property and its income on Schedule A-2. Your primary residence
and investments in diversified mutual funds registered
with the SEC are not reportable.
Q. I am required to report all investments. I have an IRA that contains stocks through an account managed by
a brokerage firm. Must I disclose these stocks even
though they are held in an IRA and I did not decide
which stocks to purchase?
A. Yes. Disclose on Schedule A-1 or A-2 any stock worth $2,000 or more in a business entity located in or doing business in your jurisdiction.
Q. I own stock in IBM and must report this investment
on Schedule A-1. I initially purchased this stock in
the early 1990s; however, I am constantly buying
and selling shares. Must I note these dates in the
“Acquired” and “Disposed” fields?
A. No. You must only report dates in the “Acquired” or
“Disposed” fields when, during the reporting period,
you initially purchase a reportable investment worth
$2,000 or more or when you dispose of the entire
investment. You are not required to track the partial
trading of an investment.
Q. On last year’s filing I reported stock in Encoe valued at $2,000 - $10,000. Late last year the value of this
stock fell below and remains at less than $2,000. How
should this be reported on this year’s statement?
A. You are not required to report an investment if the
value was less than $2,000 during the entire reporting
Questions and Answers
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 4
ATTACHMENT 6
period. However, because a disposed date is not
required for stocks that fall below $2,000, you may
want to report the stock and note in the “comments”
section that the value fell below $2,000. This would be for informational purposes only; it is not a requirement.
Income Disclosure
Q. I reported a business entity on Schedule A-2. Clients of my business are located in several states. Must
I report all clients from whom my pro rata share of
income is $10,000 or more on Schedule A-2, Part 3?
A. No, only the clients doing business on a regular basis in your jurisdiction must be disclosed.
Q. I believe I am not required to disclose the names of clients from whom my pro rata share of income is
$10,000 or more on Schedule A-2 because of their
right to privacy. Is there an exception for reporting
clients’ names?
A. Regulation 18740 provides a procedure for requesting an exemption to allow a client’s name not to be
disclosed if disclosure of the name would violate a
legally recognized privilege under California law. This regulation may be obtained from our website at
www.fppc.ca.gov. See Reference Pamphlet, page 14.
Q. I am sole owner of a private law practice that is not reportable based on my limited disclosure category.
However, some of the sources of income to my law
practice are from reportable sources. Do I have to
disclose this income?
A. Yes, even though the law practice is not reportable, reportable sources of income to the law practice of
$10,000 or more must be disclosed. This information
would be disclosed on Schedule C with a note in the
“comments” section indicating that the business entity
is not a reportable investment. The note would be for
informational purposes only; it is not a requirement.
Q. I am the sole owner of my business. Where do I
disclose my income - on Schedule A-2 or Schedule C?
A. Sources of income to a business in which you have an ownership interest of 10% or greater are disclosed on
Schedule A-2. See Reference Pamphlet, page 8, for
the definition of “business entity.”
Q. How do I disclose my spouse’s or registered domestic partner’s salary?
A. Report the name of the employer as a source of
income on Schedule C.
Q. I am a doctor. For purposes of reporting $10,000
sources of income on Schedule A-2, Part 3, are the
patients or their insurance carriers considered sources of income?
A. If your patients exercise sufficient control by selecting you instead of other doctors, then your patients, rather than their insurance carriers, are sources of income to you. See Reference Pamphlet, page 14, for additional
information.
Q. I received a loan from my grandfather to purchase my home. Is this loan reportable?
A. No. Loans received from family members are not
reportable.
Q. I am running for re-election to city council and made a personal loan to my campaign committee. Is this
reportable on my Form 700?
A. No, the loan is not reportable on Form 700; however, repayments are. Loan repayments from a campaign
committee are reported on Schedule C as income.
Real Property Disclosure
Q. During this reporting period we switched our principal place of residence into a rental. I have full disclosure and the property is located in my agency’s jurisdiction, so it is now reportable. Because I have not reported
this property before, do I need to show an “acquired”
date?
A. No, you are not required to show an “acquired” date
because you previously owned the property. However,
you may want to note in the “comments” section that
the property was not previously reported because
it was used exclusively as your residence. This
would be for informational purposes only; it is not a
requirement.
Q. My daughter is buying her first home and I am the cosigner on the loan. I won’t occupy the home, but my daughter will. The home is located in my agency’s
jurisdiction. Must I report this property?
Questions and Answers
Continued
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 5
ATTACHMENT 6
A. No. Property occupied by a family member is not
reportable as long as you are not receiving rental
income or using the property for business purposes.
Gift Disclosure
Q. If I received a gift of two tickets to a concert valued at $100 each, but gave the tickets to a friend because I
could not attend the concert, do I have any reporting
obligations?
A. Yes. Since you accepted the gift and exercised
discretion and control of the use of the tickets, you
must disclose the gift on Schedule D.
Q. Mary and Joe Benson, a married couple, want to give
a piece of artwork to a close friend who is a county
supervisor. Is each spouse considered a separate
source for purposes of the gift limit and disclosure?
A. Yes, each spouse may make a gift valued at the gift
limit during a calendar year. For example, during 2012
when the gift limit was $420, the Bensons may have
given the supervisor artwork valued at no more than
$840. The supervisor must identify Joe and Mary
Benson as the sources of the gift.
Q. I am a Form 700 filer with full disclosure. Our agency holds a holiday raffle to raise funds for a local charity. I bought $10 worth of raffle tickets and won a gift basket valued at $120. The gift basket was donated by
Doug Brewer, a citizen in our city. At the same event,
I bought raffle tickets for, and won a quilt valued at
$70. The quilt was donated by a coworker. Are these
reportable gifts?
A. Because the gift basket was donated by an outside
source (not an agency employee), you have received a
reportable gift valued at $110 (the value of the basket less the consideration paid). The source of the gift
is Doug Brewer and the agency is disclosed as the
intermediary. Because the quilt was donated by an
employee of your agency, it is not a reportable gift.
Q. My agency is responsible for disbursing grants. An
applicant (501(c)(3) organization) met with agency
employees to present its application. At this meeting,
the applicant provided food and beverages. Would
the food and beverages be considered gifts to the
employees? These employees are designated in our
agency’s conflict-of-interest code and the applicant is a reportable source of income under the code.
A. Yes. If the value of the food and beverages consumed by any one filer, plus any other gifts received from the same source during the reporting period total $50 or
more, the food and beverages would be reported using
the fair market value and would be subject to the gift
limit.
Questions and Answers
Continued
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 6
ATTACHMENT 6
“Investment” means a financial interest in any business entity that is located in, doing business in, planning to do business in, or that has done business during the previous two years in your agency’s jurisdiction in which you, your spouse or registered domestic partner, or your dependent children had a direct, indirect, or beneficial interest totaling $2,000 or more at any time during the reporting period. See Reference Pamphlet, page 13.
Reportable investments include:
• Stocks, bonds, warrants, and options, including those held in margin or brokerage accounts and managed
investment funds (See Reference Pamphlet, page 13.)
• Sole proprietorships
• Your own business or your spouse’s or registered
domestic partner’s business (See Reference Pamphlet,
page 8, for the definition of “business entity.”)
• Your spouse’s or registered domestic partner’s
investments that are legally separate property
• Partnerships (e.g., a law firm or family farm)
• Investments in reportable business entities held in a retirement account (See Reference Pamphlet, page 15.)
• If you, your spouse or registered domestic partner,
and dependent children together had a 10% or
greater ownership interest in a business entity or trust (including a living trust), you must disclose investments held by the business entity or trust. See Reference
Pamphlet, page 15, for more information on disclosing
trusts.
• Business trusts
You are not required to disclose:
• Insurance policies, government bonds, diversified
mutual funds, certain funds similar to diversified
mutual funds (such as exchange traded funds) and
investments held in certain retirement accounts. See
Reference Pamphlet, page 12, for detailed information.
(Regulation 18237)
• Bank accounts, savings accounts, money market
accounts and certificates of deposits
• Insurance policies
• Annuities
• Commodities
• Shares in a credit union
• Government bonds (including municipal bonds)
• Retirement accounts invested in non-reportable interests (e.g., insurance policies, diversified mutual funds, or government bonds) (See Reference Pamphlet, page 15.)
● Government defined-benefit pension plans (such as
CalPERS and CalSTRS plans)
• Interests held in a blind trust (See Reference Pamphlet, page 16.)
Use Schedule A-1 to report ownership of less than 10%
(e.g., stock). Schedule C (Income) may also be required if the investment is not a stock or corporate bond. See second example below.
Use Schedule A-2 to report ownership of 10% or greater
(e.g., a sole proprietorship).
To Complete Schedule A-1:
Do not attach brokerage or financial statements.
• Disclose the name of the business entity.
• Provide a general description of the business activity of the entity (e.g., pharmaceuticals, computers,
automobile manufacturing, or communications).
• Check the box indicating the highest fair market value of your investment during the reporting period. If you
are filing a candidate or an assuming office statement, indicate the fair market value on the filing date or the date you took office, respectively.
• Identify the nature of your investment (e.g., stocks, warrants, options, or bonds).
• An acquired or disposed of date is only required if you initially acquired or entirely disposed of the investment interest during the reporting period. The date of a stock dividend reinvestment or partial disposal is not required.
Generally, these dates will not apply if you are filing a candidate or an assuming office statement.
Examples:
John Smith holds a state agency position. His conflict-ofinterest code requires full disclosure of investments. John must disclose his stock holdings of $2,000 or more in any company that does business in California, as well as those stocks held by his spouse or registered domestic partner and dependent children.
Susan Jones is a city council member. She has a 4%
interest, worth $5,000, in a limited partnership located in the city. Susan must disclose the partnership on Schedule A-1 and income of $500 or more received from the
partnership on Schedule C.
Instructions – Schedules A-1 and A-2
Investments
Reminders
• Do you know your agency’s jurisdiction?
• Did you hold investments at any time during the period covered by this statement?
• Code filers – your disclosure categories may only
require disclosure of specific investments.
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 7
ATTACHMENT 6
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
12 12 12 12
12 12
12 12 12
12 12
Name
► Name of business entity
General description of business activity
► Name of business entity
General description of business activity
► Name of business entity
General description of business activity
► Name of business entity
General description of business activity
► Name of business entity
General description of business activity
► Name of business entity
General description of business activity
Comments:
Schedule A-1
Investments
Stocks, Bonds, and Other Interests
(Ownership Interest is Less Than 10%)
Do not attach brokerage or financial statements.
700 Fair Political Practices Commission
CALIFORNIA FORM
FPPC Form 700 (2012/2013) Sch. A-1
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
fair market value
$2,000 - $10,000 $10,001 - $100,000
$100,001 - $1,000,000 Over $1,000,000
fair market value
$2,000 - $10,000 $10,001 - $100,000
$100,001 - $1,000,000 Over $1,000,000
fair market value
$2,000 - $10,000 $10,001 - $100,000
$100,001 - $1,000,000 Over $1,000,000
fair market value
$2,000 - $10,000 $10,001 - $100,000
$100,001 - $1,000,000 Over $1,000,000
fair market value
$2,000 - $10,000 $10,001 - $100,000
$100,001 - $1,000,000 Over $1,000,000
fair market value
$2,000 - $10,000 $10,001 - $100,000
$100,001 - $1,000,000 Over $1,000,000
12 Nature of investment
Stock Other
(Describe)
Partnership Income Received of $0 - $499
Income Received of $500 or More (Report on Schedule C)
Nature of investment
Stock Other
(Describe)
Partnership Income Received of $0 - $499
Income Received of $500 or More (Report on Schedule C)
Nature of investment
Stock Other
(Describe)
Partnership Income Received of $0 - $499
Income Received of $500 or More (Report on Schedule C)
Nature of investment
Stock Other
(Describe)
Partnership Income Received of $0 - $499
Income Received of $500 or More (Report on Schedule C)
Nature of investment
Stock Other
(Describe)
Partnership Income Received of $0 - $499
Income Received of $500 or More (Report on Schedule C)
Nature of investment
Stock Other
(Describe)
Partnership Income Received of $0 - $499
Income Received of $500 or More (Report on Schedule C)
ATTACHMENT 6
Use Schedule A-2 to report investments in a business entity or trust (including a living trust) in which you, your spouse or registered domestic partner, and your dependent children together had a 10% or greater interest, totaling $2,000 or more, during the reporting period and which is located in, doing business in, planning to do business in, or which has done business during the previous two years in your agency’s jurisdiction. See Reference Pamphlet, page 13. A trust located outside your agency’s jurisdiction is reportable if it holds assets that are located in or doing business in the jurisdiction. Do not report a trust that contains non-reportable interests. For example, a trust containing only your personal residence not used in whole or in part as a business, your savings account, and some municipal bonds, is not reportable.
Also report on Schedule A-2 investments and real property held by that entity or trust if your pro rata share of the investment or real property interest was $2,000 or more during the reporting period.
To Complete Schedule A-2:
Part 1. Disclose the name and address of the business entity or trust. If you are reporting an interest in a business entity, check “Business Entity” and complete the box as follows:
• Provide a general description of the business activity of the entity.
• Check the box indicating the highest fair market value of your investment during the reporting period.
• If you initially acquired or entirely disposed of this interest during the reporting period, enter the date acquired or disposed.
• Identify the nature of your investment.
• Disclose the job title or business position you held with the entity, if any (i.e., if you were a director, officer, partner, trustee, employee, or held any position of management).
A business position held by your spouse is not reportable.
Part 2. Check the box indicating your pro rata share of the gross income received by the business entity or trust. This amount includes your pro rata share of the gross income from the business entity or trust, as well as your community property interest in your spouse’s or registered domestic partner’s share.
Gross income is the total amount of income before deducting expenses, losses, or taxes.
Part 3. Disclose the name of each source of income that is located in, doing business in, planning to do business in, or that has done business during the previous two years in your agency’s jurisdiction, as follows:
• Disclose each source of income and outstanding loan
to the business entity or trust identified in Part 1 if your pro rata share of the gross income (including your community property interest in your spouse’s or registered domestic partner’s share) to the business entity or trust from that source was $10,000 or more during the reporting period. See Reference Pamphlet, page 11, for examples.
Income from governmental sources may be reportable
if not considered salary. See Regulation 18232. Loans
from commercial lending institutions made in the lender’s regular course of business on terms available to members of the public without regard to your official status are not reportable.
• Disclose each individual or entity that was a source of commission income of $10,000 or more during the
reporting period through the business entity identified in Part 1. See Reference Pamphlet, page 8, for an
explanation of commission income.
You may be required to disclose sources of income located outside your jurisdiction. For example, you may have
a client who resides outside your jurisdiction who does business on a regular basis with you. Such a client, if a reportable source of $10,000 or more, must be disclosed.
Mark “None” if you do not have any reportable $10,000
sources of income to disclose. Adding phrases such
as “various clients” or “not disclosing sources pursuant to attorney-client privilege” may trigger a request for an amendment to your statement. See Reference Pamphlet,
page 14, for details about requesting an exemption from disclosing privileged information.
Part 4. Report any investments or interests in real property held or leased by the entity or trust identified in Part 1 if your pro rata share of the interest held was $2,000 or more during the reporting period. Attach additional schedules or use FPPC’s Form 700 Excel spreadsheet if needed.
• Check the applicable box identifying the interest held as real property or an investment.
• If investment, provide the name and description of the business entity.
• If real property, report the precise location (e.g., an assessor’s parcel number or address).
• Check the box indicating the highest fair market value of your interest in the real property or investment during the reporting period. (Report the fair market value of the portion of your residence claimed as a tax deduction if you are utilizing your residence for business purposes.)
• Identify the nature of your interest.
• Enter the date acquired or disposed only if you initially acquired or entirely disposed of your interest in the
property or investment during the reporting period.
Instructions – Schedule A-2
Investments, Income, and Assets of Business Entities/Trusts FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 9
ATTACHMENT 6
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
12 12
12 12 12 12
Schedule A-2
Investments, Income, and Assets
of Business Entities/Trusts
(Ownership Interest is 10% or Greater)
Comments:
Name
Address (Business Address Acceptable)
Name
Address (Business Address Acceptable)
fair market value
$0 - $1,999
$2,000 - $10,000
$10,001 - $100,000
$100,001 - $1,000,000
Over $1,000,000
fair market value
$0 - $1,999
$2,000 - $10,000
$10,001 - $100,000
$100,001 - $1,000,000
Over $1,000,000
General description of business activity General description of business activity Investment Real Property
Name of Business Entity, if Investment, or
Assessor’s Parcel Number or Street Address of Real Property Description of Business Activity or
City or Other Precise Location of Real Property
Investment Real Property
Name of Business Entity, if Investment, or
Assessor’s Parcel Number or Street Address of Real Property Description of Business Activity or
City or Other Precise Location of Real Property
► 4. investments and interests in real property held or leased by the business entity or trust
► 4. investments and interests in real property held or leased by the business entity or trust
Check one
Trust, go to 2 Business Entity, complete the box, then go to 2 Check one
Trust, go to 2 Business Entity, complete the box, then go to 2 ► 3. List the name of each reportable single source of
income of $10,000 or more (Attach a separate sheet if necessary.) ► 3. List the name of each reportable single source of
income of $10,000 or more (Attach a separate sheet if necessary.) ► 2. identify the gross income received (include your pro rata share of the gross income to the entity/trust)
► 2. identify the gross income received (include your pro rata share of the gross income to the entity/trust)
Name
700
Check one box: Check one box:
Your Business position Your Business position
FPPC Form 700 (2012/2013) Sch. A-2
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
fair market value
$2,000 - $10,000
$10,001 - $100,000
$100,001 - $1,000,000
Over $1,000,000
fair market value
$2,000 - $10,000
$10,001 - $100,000
$100,001 - $1,000,000
Over $1,000,000
$0 - $499
$500 - $1,000
$1,001 - $10,000
$0 - $499
$500 - $1,000
$1,001 - $10,000
$10,001 - $100,000
Over $100,000
$10,001 - $100,000
Over $100,000
Fair Political Practices Commission
CALIFORNIA FORM
► 1. business entity or trust ► 1. business entity or trust Nature of interest
Property Ownership/Deed of Trust Stock Partnership
Leasehold Other
Check box if additional schedules reporting investments or real property are attached
Yrs. remaining
Nature of interest
Property Ownership/Deed of Trust Stock Partnership
Leasehold Other
Check box if additional schedules reporting investments or real property are attached
Yrs. remaining
12 12
Other
Nature of investment
Partnership Sole Proprietorship Other
Nature of investment
Partnership Sole Proprietorship
None None
ATTACHMENT 6
Report interests in real property located in your agency’s jurisdiction in which you, your spouse or registered
domestic partner, or your dependent children had a direct, indirect, or beneficial interest totaling $2,000 or more any time during the reporting period. See Reference Pamphlet, page 13.
Interests in real property include:
• An ownership interest (including a beneficial ownership interest)
• A deed of trust, easement, or option to acquire property • A leasehold interest (See Reference Pamphlet, page 14.) • A mining lease
• An interest in real property held in a retirement account (See Reference Pamphlet, page 15.)
• An interest in real property held by a business entity or trust in which you, your spouse or registered domestic
partner, and your dependent children together had a
10% or greater ownership interest (Report on Schedule
A-2.)
• Your spouse’s or registered domestic partner’s interests in real property that are legally held separately by him or her
You are not required to report:
• A residence, such as a home or vacation cabin, used
exclusively as a personal residence (However, a
residence in which you rent out a room or for which
you claim a business deduction may be reportable. If
reportable, report the fair market value of the portion claimed as a tax deduction.)
Please note: A non-reportable residence can still
be grounds for a conflict of interest and may be
disqualifying.
• Interests in real property held through a blind trust (See Reference Pamphlet, page 16, for exceptions.)
To Complete Schedule B:
• Report the precise location (e.g., an assessor’s parcel number or address) of the real property.
• Check the box indicating the fair market value of your interest in the property (regardless of what you owe on the property).
• Enter the date acquired or disposed only if you initially acquired or entirely disposed of your interest in the
property during the reporting period.
• Identify the nature of your interest. If it is a leasehold, disclose the number of years remaining on the lease.
• If you received rental income, check the box indicating the gross amount you received.
• If you had a 10% or greater interest in real property and received rental income, list the name of the source(s) if your pro rata share of the gross income from any single tenant was $10,000 or more during the reporting period.
If you received a total of $10,000 or more from two or
more tenants acting in concert (in most cases, this will apply to married couples), disclose the name of each
tenant. Otherwise, mark “None.”
• Loans from a private lender that total $500 or more
and are secured by real property may be reportable.
Loans from commercial lending institutions made
in the lender’s regular course of business on terms
available to members of the public without regard to
your official status are not reportable.
When reporting a loan:
-- Provide the name and address of the lender.
-- Describe the lender’s business activity.
-- Disclose the interest rate and term of the loan. For variable interest rate loans, disclose the conditions
of the loan (e.g., Prime + 2) or the average interest
rate paid during the reporting period. The term of
a loan is the total number of months or years given
for repayment of the loan at the time the loan was
established.
-- Check the box indicating the highest balance of the
loan during the reporting period.
-- Identify a guarantor, if applicable.
If you have more than one
reportable loan on a single
piece of real property, report
the additional loan(s) on
Schedule C.
Example:
Joe Nelson is a city planning
commissioner. Joe received
rental income of $12,000
during the reporting period from
a single tenant who rented
property Joe owned in the city’s
jurisdiction. If Joe had received
the $12,000 from two or more
tenants, the tenants’ names
would not be required as
long as no single tenant paid
$10,000 or more. A married
couple would be considered a
single tenant.
Instructions – Schedule B
Interests in Real Property
Reminders
• Income and loans already reported on Schedule B are
not also required to be reported on Schedule C.
• Real property already reported on Schedule A-2, Part 4 are not also required to be reported on Schedule B.
• Code filers – do your disclosure categories require
disclosure of real property?
12 12
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 11
ATTACHMENT 6
name of lender*
address (Business Address Acceptable)
business activity, if any, of lender
if applicable, list date:
/ / / /
acquired Disposed
if applicable, list date:
/ / / /
acquired Disposed
12 12 12 12
Schedule B
Interests in Real Property
(Including Rental Income)
Name
► ASSESSOR’S PARCEL NUMBER OR street address ► ASSESSOR’S PARCEL NUMBER OR street address city city
interest rate Term (Months/Years)
% None
sources of rental income: If you own a 10% or greater
interest, list the name of each tenant that is a single source of income of $10,000 or more.
sources of rental income: If you own a 10% or greater
interest, list the name of each tenant that is a single source of income of $10,000 or more.
Nature of interest
Ownership/Deed of Trust Easement
Leasehold
Yrs. remaining Other
Nature of interest
Ownership/Deed of Trust Easement
Leasehold
Yrs. remaining Other
Comments:
fair market value
$2,000 - $10,000
$10,001 - $100,000
$100,001 - $1,000,000
Over $1,000,000
fair market value
$2,000 - $10,000
$10,001 - $100,000
$100,001 - $1,000,000
Over $1,000,000
if rental property, gross income received
Over $100,000
$0 - $499 $500 - $1,000 $1,001 - $10,000
$10,001 - $100,000
if rental property, gross income received
Over $100,000
$0 - $499 $500 - $1,000 $1,001 - $10,000
$10,001 - $100,000
highest balance during reporting period
Guarantor, if applicable
Over $100,000
$500 - $1,000 $1,001 - $10,000
$10,001 - $100,000
FPPC Form 700 (2012/2013) Sch. B
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
700 Fair Political Practices Commission
CALIFORNIA FORM
name of lender*
address (Business Address Acceptable)
business activity, if any, of lender
interest rate Term (Months/Years)
% None
Guarantor, if applicable
highest balance during reporting period
Over $100,000
$500 - $1,000 $1,001 - $10,000
$10,001 - $100,000
* You are not required to report loans from commercial lending institutions made in the lender’s regular course of business on terms available to members of the public without regard to your official status. Personal loans and loans received not in a lender’s regular course of business must be disclosed as follows:
None None
ATTACHMENT 6
Report the source and amount of gross income of $500
or more you received during the reporting period. Gross income is the total amount of income before deducting
expenses, losses, or taxes and includes loans other than loans from a commercial lending institution. See Reference Pamphlet, page 11. Also report your job title with each reportable business entity, even if you received no income during the reporting period. You must also report the source of income to your spouse or registered domestic partner if your community property share was $500 or more during the reporting period.
A source of income must be reported only if the source is located in, doing business in, planning to do business in, or has done business during the previous two years in your agency’s jurisdiction. See Reference Pamphlet, page 13, for more information about doing business in the jurisdiction.
Reportable sources of income may be further limited by
your disclosure category located in your agency’s conflict-ofinterest code.
Commonly reportable income and loans include:
• Salary/wages, per diem, and reimbursement for expenses including travel payments provided by your employer
• Community property interest (50%) in your spouse’s
or registered domestic partner’s income - report the
employer’s name and all other required information
• Income from investment interests, such as partnerships, reported on Schedule A-1
• Commission income not required to be reported on
Schedule A-2 (See Reference Pamphlet, page 8.)
• Gross income from any sale, including the sale of a house or car (Report your pro rata share of the total sale price.) • Rental income not required to be reported on Schedule B • Prizes or awards not disclosed as gifts
• Payments received on loans you made to others, including loan repayments from a campaign committee (including a
candidate’s own campaign committee)
• An honorarium received prior to becoming a public official (See Reference Pamphlet, page 10, concerning your ability to receive future honoraria.)
• Incentive compensation (See Reference Pamphlet, page 12.) You are not required to report:
• Salary, reimbursement for expenses or per diem, or social security, disability, or other similar benefit payments received by you or your spouse or registered domestic
partner from a federal, state, or local government agency.
See Reference Pamphlet, page 11, for more exceptions to income reporting.
To Complete Schedule C:
Part 1. Income Received/Business Position Disclosure
• Disclose the name and address of each source of income or each business entity with which you held a business
position.
• Provide a general description of the business activity if the source is a business entity.
• Check the box indicating the amount of gross income
received.
• Identify the consideration for which the income was
received.
• For income from commission sales, check the box
indicating the gross income received and list the name of each source of commission income of $10,000 or more.
See Reference Pamphlet, page 8. Note: If you receive
commission income on a regular basis or have an
ownership interest of 10% or more, you must disclose
the business entity and the income on Schedule A-2.
• Disclose the job title or business position, if any, that you held with the business entity, even if you did not receive income during the reporting period.
Part 2. Loans Received or Outstanding During the
Reporting Period
• Provide the name and address of the lender.
• Provide a general description of the business activity if the lender is a business entity.
• Check the box indicating the highest balance of the loan during the reporting period.
• Disclose the interest rate and the term of the loan. -- For variable interest rate loans, disclose the conditions of the loan (e.g., Prime + 2) or the average interest rate paid during the reporting period.
-- The term of the loan is the total number of months or years given for repayment of the loan at the time the
loan was entered into.
• Identify the security, if any, for the loan.
Instructions – Schedule C
Income, Loans, & Business Positions
(Income Other Than Gifts and Travel Payments)
Reminders
• Code filers – your disclosure categories may not
require disclosure of all sources of income.
• If you or your spouse or registered domestic partner are self-employed, report the business entity on
Schedule A-2.
• Do not disclose on Schedule C income, loans, or
business positions already reported on Schedules A-2
or B. FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 13
ATTACHMENT 6
(Real property, car, boat, etc.)
Schedule C
Income, Loans, & Business
Positions
(Other than Gifts and Travel Payments)
gross income received
Name
FPPC Form 700 (2012/2013) Sch. C
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Over $100,000
$500 - $1,000 $1,001 - $10,000
$10,001 - $100,000
700 Fair Political Practices Commission
CALIFORNIA FORM
► 1. Income Received
Name of source of income
address (Business Address Acceptable)
business activity, if any, of source
Your Business position
► 1. Income Received
Name of source of income
address (Business Address Acceptable)
business activity, if any, of source
Your Business position
Name of Lender*
address (Business Address Acceptable)
business activity, if any, of Lender
interest rate Term (Months/Years)
% None
Highest Balance During Reporting Period
$500 - $1,000
$1,001 - $10,000
$10,001 - $100,000
Over $100,000
gross income received
Over $100,000
$500 - $1,000 $1,001 - $10,000
$10,001 - $100,000
Comments:
► 2. loans Received or outstanding during the reporting period * You are not required to report loans from commercial lending institutions, or any indebtedness created as part of a retail installment or credit card transaction, made in the lender’s regular course of business on terms available to members of the public without regard to your official status. Personal loans and loans received not in a lender’s regular course of business must be disclosed as follows:
Security for Loan
None Personal residence
Real Property
Guarantor
Other
Street address
City
(Describe)
consideration for which income was received
Salary Spouse’s or registered domestic partner’s income Loan repayment Partnership
Sale of
Commission or Rental Income, list each source of $10,000 or more Other
(Real property, car, boat, etc.)
(Describe)
consideration for which income was received
Salary Spouse’s or registered domestic partner’s income Loan repayment Partnership
Sale of
Commission or Rental Income, list each source of $10,000 or more Other
(Describe)
ATTACHMENT 6
A gift is anything of value for which you have not provided equal or greater consideration to the donor. A gift is
reportable if its fair market value is $50 or more. In
addition, multiple gifts totaling $50 or more received during the reporting period from a single source must be reported.
It is the acceptance of a gift, not the ultimate use to which it is put, that imposes your reporting obligation. Except as noted below, you must report a gift even if you never used it or if you gave it away to another person.
If the exact amount of a gift is unknown, you must make a good faith estimate of the item’s fair market value. Listing the value of a gift as “over $50” or “value unknown” is not adequate disclosure. In addition, if you received a gift through an intermediary, you must disclose the name,
address, and business activity of both the donor and the intermediary.
Commonly reportable gifts include:
• Tickets/passes to sporting or entertainment events
• Tickets/passes to amusement parks
• Parking passes
• Food, beverages, and accommodations, including those provided in direct connection with your attendance at a convention, conference, meeting, social event, meal, or like gathering
• Rebates/discounts not made in the regular course of
business to members of the public without regard to
official status
• Wedding gifts (See Reference Pamphlet, page 16)
• An honorarium received prior to assuming office (You may report an honorarium as income on Schedule C,
rather than as a gift on Schedule D, if you provided
services of equal or greater value than the payment
received. See Reference Pamphlet, page 10, regarding
your ability to receive future honoraria.)
• Transportation and lodging (See Schedule E.)
• Forgiveness of a loan received by you
You are not required to disclose:
• Gifts that were not used and that, within 30 days after receipt, were returned to the donor or delivered to a
charitable organization without being claimed by you as a charitable contribution for tax purposes
• Gifts from your spouse or registered domestic partner, child, parent, grandparent, grandchild, brother, sister, and certain other famly members (See Regulation 18942
for a complete list.). The exception does not apply if
the donor was acting as an agent or intermediary for a
reportable source who was the true donor.
• Gifts of similar value exchanged between you and an
individual, other than a lobbyist, on holidays, birthdays, or similar occasions
• Gifts of informational material provided to assist
you in the performance of your official duties (e.g.,
books, pamphlets, reports, calendars, periodicals, or
educational seminars)
• A monetary bequest or inheritance (However, inherited investments or real property may be reportable on other schedules.)
• Personalized plaques or trophies with an individual value of less than $250
• Campaign contributions
• Gifts given to members of your immediate family if the source has an established relationship with the family
member and there is no evidence to suggest the donor
had a purpose to influence you. (See Regulation
18943.)
• The cost of food, beverages, and necessary
accommodations provided directly in connection with
an event at which you gave a speech, participated in
a panel or seminar, or provided a similar service but
only if the cost is paid for by a federal, state, or local government agency. This exception does not apply to
a state or local elected officer, as defined in Section 82020, or an official specified in Section 87200.
• Any other payment not identified above, that would
otherwise meet the definition of gift, where the payment is made by an individual who is not a lobbyist registered to lobby the official’s agency, where it is clear that the gift was made because of an existing personal or business
relationship unrelated to the official’s position and there is no evidence whatsoever at the time the gift is made to suggest the donor had a purpose to influence you.
To Complete Schedule D:
• Disclose the full name (not an acronym), address, and, if a business entity, the business activity of the source. • Provide the date (month, day, and year) of receipt, and disclose the fair market value and description of the gift.
Instructions – Schedule D
Income – Gifts
Reminders
• Gifts from a single source are subject to a $420 limit during 2012. See Reference Pamphlet, page 10.
• Code filers – you only need to report gifts from
reportable sources.
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions – 15
ATTACHMENT 6
Schedule D
Income – Gifts
Comments:
Name
FPPC Form 700 (2012/2013) Sch. D
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
700 Fair Political Practices Commission
CALIFORNIA FORM
► Name of source (Not an Acronym)
address (Business Address Acceptable)
business activity, if any, of source
date (mm/dd/yy) Va lue description of gift(s)
/ / $
/ / $
/ / $
► Name of source (Not an Acronym)
address (Business Address Acceptable)
business activity, if any, of source
date (mm/dd/yy) Va lue description of gift(s)
/ / $
/ / $
/ / $
► Name of source (Not an Acronym)
address (Business Address Acceptable)
business activity, if any, of source
date (mm/dd/yy) Va lue description of gift(s)
/ / $
/ / $
/ / $
► Name of source (Not an Acronym)
address (Business Address Acceptable)
business activity, if any, of source
date (mm/dd/yy) Va lue description of gift(s)
/ / $
/ / $
/ / $
► Name of source (Not an Acronym)
address (Business Address Acceptable)
business activity, if any, of source
date (mm/dd/yy) Va lue description of gift(s)
/ / $
/ / $
/ / $
► Name of source (Not an Acronym)
address (Business Address Acceptable)
business activity, if any, of source
date (mm/dd/yy) Va lue description of gift(s)
/ / $
/ / $
/ / $
ATTACHMENT 6
Travel payments reportable on Schedule E include
advances and reimbursements for travel and related
expenses, including lodging and meals.
Gifts of travel may be subject to the gift limit. In addition, certain travel payments are reportable gifts, but are not subject to the gift limit. To avoid possible misinterpretation or the perception that you have received a gift in excess of the gift limit, you may wish to provide a specific description of the purpose of your travel. See the FPPC fact sheet
entitled “Limitations and Restrictions on Gifts, Honoraria, Travel, and Loans” at www.fppc.ca.gov.
You are not required to disclose:
• Travel payments received from any state, local, or
federal government agency for which you provided
services equal or greater in value than the payments
received
• Travel payments received from your employer in the
normal course of your employment that are included in
the income reported on Schedule C
• Payments for admission to an event at which you make a speech, participate on a panel, or make a substantive formal presentation, transportation, and necessary
lodging, food, or beverages, and nominal non-cash
benefits provided to you in connection with the event so long as both the following apply:
-- The speech is for official agency business and you
are representing your government agency in the
course and scope of your official duties.
-- The payment is a lawful expenditure made only by
a federal, state, or local government agency for
purposes related to conducting that agency’s official
business.
Note: This exception does not apply to a state or
local elected officer, as defined in Section 82020, or
an official specified in Section 87200.
• A travel payment that was received from a non-profit entity exempt from taxation under Internal Revenue
Code Section 501(c)(3) for which you provided equal or
greater consideration
To Complete Schedule E:
• Disclose the full name (not an acronym) and address of the source of the travel payment.
• Identify the business activity if the source is a business entity.
• Check the box to identify the payment as a gift or
income, report the amount, and disclose the date(s).
-- Travel payments are gifts if you did not provide
services that were equal to or greater in value than
the payments received. You must disclose gifts
totaling $50 or more from a single source during the
period covered by the statement.
When reporting travel payments that are gifts, you
must provide a description of the gift and the date(s)
received.
-- Travel payments are income if you provided
services that were equal to or greater in value than
the payments received. You must disclose income
totaling $500 or more from a single source during
the period covered by the statement. You have the
burden of proving the payments are income rather
than gifts.
When reporting travel payments as income, you
must describe the services you provided in exchange
for the payment. You are not required to disclose the
date(s) for travel payments that are income.
Example:
City council member Rick Chandler is the chairman of
a trade association and the association pays for Rick’s travel to attend its meetings. Because Rick is deemed to be providing equal or greater consideration for the travel payment by virtue of serving on the board, this payment may be reported as
income. Payments
for Rick to attend
other events for which
Rick is not providing
services are likely
considered gifts.
Instructions – Schedule E
Travel Payments, Advances,
and Reimbursements
FPPC Form 700 (2012/2013)
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Instructions - 17
ATTACHMENT 6
Type of Payment: (must check one) Gift Income
Schedule E
Income – Gifts
Travel Payments, Advances,
and Reimbursements
Name
Comments:
FPPC Form 700 (2012/2013) Sch. E
FPPC Advice Email: [email protected]
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Type of Payment: (must check one) Gift Income
700 Fair Political Practices Commission
CALIFORNIA FORM
• You must mark either the gift or income box.
• Mark the “501(c)(3)” box for a travel payment received from a nonprofit 501(c)(3) organization or the “Speech” box if you made a speech or participated in a panel. These payments are not subject to the $440 gift limit, but may result in a disqualifying conflict of interest. date(s): / / - / / Amt: $
(If gift)
date(s): / / - / / Amt: $
(If gift)
Type of Payment: (must check one) Gift Income Type of Payment: (must check one) Gift Income date(s): / / - / / Amt: $
(If gift)
date(s): / / - / / Amt: $
(If gift)
► Name of source (Not an Acronym)
address (Business Address Acceptable)
City and state
business activity, if any, of source 501 (c)(3)
► Name of source (Not an Acronym)
address (Business Address Acceptable)
City and state
business activity, if any, of source 501 (c)(3)
► Name of source (Not an Acronym)
address (Business Address Acceptable)
City and state
business activity, if any, of source 501 (c)(3)
► Name of source (Not an Acronym)
address (Business Address Acceptable)
City and state
business activity, if any, of source 501 (c)(3)
Made a Speech/Participated in a Panel
Other - Provide Description
Made a Speech/Participated in a Panel
Other - Provide Description
Made a Speech/Participated in a Panel
Other - Provide Description
Made a Speech/Participated in a Panel
Other - Provide Description
ATTACHMENT 6